Your Directors have pleasure in presenting their Eighty First annual report and the
audited statement of accounts for the financial year ended September 30, 2012.
Amalgamation of Bajaj Eco-Tec Products Limited
The Scheme of Amalgamation of wholly-owned subsidiary Bajaj Eco-Tec Products Limited
(BEPL) with the Company in terms of the provisions of Sections 391 and 394 of the
Companies Act, 1956 ("the scheme") with the Appointed Date as April 01, 2012 was
unanimously approved by the Equity Shareholders of the Company, and also by the Secured
Creditors and Unsecured Creditors of the Company and BEPL at their respective court
convened meetings held on June 16, 2012.
Subsequently, upon sanction of the Scheme vide Orders passed by the Hon`ble High Court
of Judicature at Bombay on September 14, 2012 and completion of other formalities in this
regard on October 01, 2012 by both the Companies, the Scheme has become effective from
October 01, 2012.
The summarised financial results of the Company for the year ended September 30, 2012
are presented below:
( Rs Crore)
( Rs Crore)
|Sales and other income
|Profit before depreciation, interest and taxation
|Depreciation & amortisation
|Profit after depreciation but before interest and taxation
|Finance costs (Net)
|Profit / (Loss) before taxation
|Provision for taxation (Net)
|Provision for deferred tax
|Profit / (Loss) after tax
|Disposable surplus after adjustments
|Transfer to reserve for molasses storage tank
|Transfer to general reserve
|Transfer from general reserve
|Corporate dividend tax on proposed dividend
|Amount pursuant to scheme of amalgamation
|Balance carried to balance sheet
On a stand-alone basis, the Company achieved a turnover of Rs 4,368.78 crore as
compared to Rs 4,919.15 crore in the previous year mainly due to lower volume of sugar
sales in 2011-12 and sale of raw sugar in 2010-11 inspite of higher production and higher
sales realisation as compared to the previous year. The loss after tax stood at Rs 234.57
crore as compared to the profit of Rs 12.00 crore in the previous year. On a consolidated
basis, the turnover including other income was Rs 4,451.30 crore compared to Rs 5,081.90
crore in the previous year. The loss after tax and minority interest is
Rs 320.1 1 crore as against profit of Rs 21.45 crore in the previous year.
The financial and operating results for current financial year are not strictly
comparable with those of previous financial year 2010-11 to the extent that current
financial year includes figures pertaining to the erstwhile subsidiary Bajaj Eco-Tec
Products Limited for half year viz. from Appointed Date as April 01, 2012 to September 30,
2012 consequent upon the merger of BEPL with the Company whereas in the previous year
these were for the Company only.
The Board of Directors of the Company recommend, for consideration of shareholders at
the 81st Annual General Meeting, payment of dividend of 10% C 0.10 per share) on equity
shares of the face value of Rs 1/- each for the year ended September 30, 2012. The
dividend paid during the previous year was 40%. Despite absence of profits during the
year, the proposed dividend of 10% being the maximum amount payable out of the Reserves as
per provisions of "The Companies (Declaration of Dividend out of Reserves) Rules
1975" is recommended to maintain the continuity in payment of dividend of the
The Company continues to be the number one sugar and ethanol manufacturing company in
India with its fourteen sugar plants having an aggregate sugarcane crushing capacity of
1,36,000 TCD, six distilleries having aggregate capacity to produce Industrial Alcohol of
800 kilolitres per day and fourteen co-generation plants having a total power generation
capacity of 443 MW, two MDF manufacturing plants having capacity of 1,20,000 MT per annum
and one PB manufacturing plant having capacity of 35,000 MT per annum.
The operations during the financial year ended September 30, 2012 at all the fourteen
sugar plants were satisfactory.
During the financial year 2011-12, the Company crushed 12.756 MMT of sugarcane and
processed 671.2 MT of raw sugar. The recovery of sugar from sugarcane was at 9.14% as
against 9.31% in the previous year. The Company produced 11,65,761 MT sugar from sugarcane
and 611 MT sugar from raw sugar and 6,47,585 MT molasses during the financial year
The Company sold 11,38,494 MT of sugar as against 13,74,407 MT during the previous
year, registering a decline of 17%. The Company also sold 95,407 MT of molasses as against
96,497 MT in the previous year.
During the year, Industrial Alcohol / Ethanol production was higher at 1,45,156 KL as
compared to 89,059 KL in the previous year. Alcohol / Ethanol sale during the year was
higher at 1,48,835 KL as against 1,24,366 KL during the previous year, reporting an
increase of 20%.
The operations of power generation were smooth at all of our fourteen sugar plants.
While most of the power generated by us continued to be used captively to run our plants,
the surplus power was sold to the Uttar Pradesh State grid.
Power generation was substantially higher at 8,21,215 MW as compared to 5,56,578 MW in
the previous year recording a growth of 48%. This was achieved primarily out of higher
quantum of bagasse available from the crushing of sugarcane and optimum utilisation of
co-gen capacities resulting from efficient planning. The Company exported 3,46,180 MW of
power during the year as against 1,75,842 MW during the previous year, an increase of 97%.
During the period from April 01, 2012 (Appointed Date of Amalgamation) to September 30,
2012, the Company manufactured 4,905 MT of Particle Board (PB) and 10,118 MT of Medium
Density Fibre Board (MDF) at its two plants at Kinauni and Palia Kalan, respectively.
Operations at the Kundarkhi plant remained suspended due to non-availability of adequate
quantity of sugarcane bagasse in and around that area.
The Company sold 5,513 MT of PB and 14,415 MT of MDF during the period.
Change in Capital Structure
An aggregate of 41,10,42,800 equity shares were allotted to the eligible shareholders
on October 31, 2011 against the valid applications for the Rights Issue of equity shares
in the ratio of two equity shares at a price of Rs 36 per share for every one equity share
held announced by the Company in the last year. Consequent to allotment of the aforesaid
shares, the paid-up equity share capital of the Company increased from Rs 22,83,57,1 1 1
to 63,93,99,91 1.
Out of the aggregate proceeds of Rs 1,479.75 crore from this Rights Issue, as on
September 30, 2012, the Company has utilised Rs 1,374.98 crore towards the repayment of
loan, Rs 40.88 crore towards general corporate purposes and Rs 37.87 crore towards issue
expenses aggregating to Rs 1,453.73 crore. The balance Rs 26.02 crore has been utilised
for temporary reduction of working capital loan which would be redrawn, when necessary as
stated in the letter of offer.
Listing of Securities
The Company`s equity shares are listed on the BSE Limited and The National Stock
Exchange of India Limited. The Annual Listing fees to each of these Stock Exchanges have
been paid by the Company. The Global Depository Receipts (GDRs) are listed on the
Luxembourg Stock Exchange and London Stock Exchange.
Employees Stock Option
The information required to be disclosed in terms of the provisions of the SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 is
enclosed as per Annexure II to this report.
Management Discussion and Analysis
Management Discussion and Analysis Report is presented in a separate section forming
part of this Annual Report.
As on September 30, 2012, the Company had the following Subsidiaries, all of them are
1. Bajaj Aviation Private Limited
2. Lalitpur Power Generation Company Limited
3. Bajaj Power Generation Private Limited
4. Bajaj Hindusthan (Singapore) Pte. Ltd.
In terms of General Circular No. 2/2011 dated February 08, 2011 issued by the
Government of India, Ministry of Corporate Affairs granting general exemption under
Section 212 of the Companies Act, 1956, and consent of the Board of Directors vide their
resolution passed at the Board Meeting, the Company has not attached with its Balance
Sheet as at September 30, 2012, copies of the balance sheet, statement of profit and loss
and reports of the Board of Directors and Auditors of the Company`s subsidiaries and has
disclosed the requisite information in the Consolidated Balance Sheet as at September 30,
Pursuant to the General Circular No. 2/2011 dated February 08, 2011 the Company hereby
I. Annual accounts of the subsidiary companies and the related detailed information
shall be made available to shareholders of the Company and subsidiary companies seeking
such information at any point of time.
II. The annual accounts of the subsidiary companies shall also be kept for inspection
by any shareholder in the registered office of the Company and of the subsidiary companies
III. The Company shall furnish a hard copy of details of accounts of subsidiaries to
any shareholder on demand.
Bajaj Eco-Tec Products Limited (Amalgamated with BHL)
During the year ended March 31, 2012, Bajaj Eco-Tec Products Limited (BEPL) recorded a
turnover of Rs 122.25 crore as compared Rs 160.37 crore in the previous year. The Net Loss
after Tax was Rs 55.36 crore as against Rs 49.53 crore recorded during the previous year.
The reduction in turnover was primarily on account of lower availability of main raw
material - sugarcane bagasse - in and around the areas near all the three factories of
BEPL. Scarce availability of raw material, higher raw material prices, high finance cost,
general inflationary conditions and lower realisation continued to put margins under
In order to improve the Medium Density Fibre Board and Particle Board operations by
minimising the impact of tax outgoings on the prices of these bagasse boards and to
improve the efficiencies by reducing cost of supervision and management, the Board of
Directors of both BEPL and BHL approved a Scheme of Amalgamation of BEPL with BHL. The
Orders sanctioning the Scheme was passed by the Hon`ble High Court of Bombay on September
14, 2012. Upon accomplishment of the applicable formalities under the law, the Scheme has
come into effect from October 01, 2012 and BEPL stood dissolved without winding up. The
appointed date fixed for the Scheme was April 01, 2012.
Bajaj Aviation Private Limited
Bajaj Aviation Private Limited (BAPL), was a wholly-owned subsidiary of Bajaj Eco-Tec
Products Limited (BEPL) and accordingly after amalgamation of BEPL with BHL, BAPL became a
wholly-owned subsidiary of BHL. During the year ended September 30, 2012, BAPL generated
an income of Rs 0.96 crore and posted net loss of Rs 1.54 crore.
Bajaj Energy Private Limited (ceased to be subsidiary w.e.f. March 19, 2012)
Bajaj Energy Private Limited (BEnPL) was implementing projects for thermal power having
generation capacity of 450 MW and projects at all five locations in the State of Uttar
Pradesh were successfully commissioned during March and April, 2012.
As on March 31, 2012, BEnPL has earned revenue of Rs 20.14 crore from sale of power and
Rs 0.01 crore from Interest on Fixed Deposits for the year ended March 31, 2012. Total
expenses incurred during the year was at Rs 32.58 crore. The loss after tax was at Rs
12.43 crore for the year ended on that date. Earning per share was Rs (7.78). BEnPL sells
power generated from its projects to Uttar Pradesh Power Corporation Limited in terms of
Power Purchase Agreement at a provisional price of Rs 4/- per unit which is subject to
upward revision on finalisation of tariff.
BEnPL had allotted 1,96,05,882 equity shares of the face value of Rs 10/- each on March
19, 2012. Consequent to said allotment, BEnPL ceased to be a subsidiary of Bajaj
Lalitpur Power Generation Company Limited
The Company was awarded 1,980 MW (3x660 MW) mega thermal power project at Lalitpur,
Uttar Pradesh which is being implemented through Lalitpur Power Generation Company Limited
(LPGCL), SPV created for this purpose. The estimated cost of project is Rs 12,000 crore.
LPGCL has entered into a facility agreement dated August 24, 2011 with Consortium of
lenders for term loan financing of Rs 8,886 crore.
LPGCL has acquired 1288.76 acres land till date out of the total estimated land
requirement of 1320 acres. LPGCL has also obtained all clearances including major ones
from Irrigation Department, Ministry of Environment and Forest (MoEF) and Uttar Pradesh
Pollution Control Board (UPPCB) etc. The Boiler Turbine Generators (BTG) and Balance of
Plant (BoP) orders through International Competitive Bidding route have also been placed.
LPGCL`s application for domestic coal duly recommended by Central Electricity Authority
and Ministry of Power is submitted to Ministry of Coal and shall be taken up in the next
Standing Linkage Committee meeting. The Company has also made arrangements for procuring
imported coal from Indonesia to meet 100% fuel requirements of the project until domestic
coal is awarded to the project.
Till date, LPGCL had issued and allotted 92,48,700 equity shares of Rs 10/- each to the
Company and to other promoter group companies.
Bajaj Power Generation Private Limited
Bajaj Power Generation Private Limited (BPGPL), a wholly owned subsidiary of the
Company is mandated with implementation of 1,980 MW (3x660 MW) thermal power project at
Bargarh, district Chitrakoot, Uttar Pradesh at an estimated cost of around Rs 12,000
crore. BPGPL had initiated steps to acquire land in Bargarh and nearby villages and has
also applied for various licenses, approvals and clearances, including application for
coal linkages, required for setting up its project. BPGPL has received permission from
Joint Secretary, Uttar Pradesh Government and clearance from Central Water Commission,
Irrigation Planning (North) Dte., Government of India for withdrawal of water from Yamuna
river for its power plant and permission from Central Ground Water Authority, Ministry of
Water Resources, Government of India to withdraw ground water to facilitate construction
activities at the plant site. The Irrigation Department has also accorded in-principle
consent for making water available to the project from Yamuna river subject to
construction of barrage on the river. BPGPL can avail water from Yamuna only on receipt of
approval from the concerned legal entities of Government of India for construction of
barrage across the river.
Citing delay in implementation of its project as a result of this development,
application had been made to Uttar Pradesh Power Corporation Limited (UPPCL) for shifting
the project site from Bargarh, district Chitrakoot to Mirchwara, district Lalitpur. UPPCL
has granted permission to the Company to change the project location from Bargarh to
Lalitpur subject to receipt of approval from Uttar Pradesh Electricity Regulatory
BPGPL is exploring options to develop logistical and infrastructural support for its
upcoming power project.
Bajaj Internacional Participates Limitada (Subsidiary in Brazil) (ceased to be
subsidiary w.e.f. January 26, 2012)
Since no operation in this Wholly Owned Subsidiary (WOS) was started, the Company had
initiated steps of winding up of its operations in 2011 and the resolution for termination
of Bajaj Internacional Participacpes Limitada (BIPL) was duly registered at the Board of
Trade, Brazil on January 26, 2012 and accordingly BIPL ceased to be subsidiary of the
Company with effect from January 26, 2012.
Bajaj Hindusthan (Singapore) Private Limited
Bajaj Hindusthan (Singapore) Pte. Ltd. (BHSPL), a Wholly Owned Subsidiary of the
Company in Singapore engaged in trading in commodities and also exploring opportunities
for coal mine acquisition in Indonesia. The Company achieved a turnover including other
income of US$ 12.79 million and posted a net loss after taxation of US$ 0.13 million for
the year ended March 31, 2012. Company is exploring a possibility for acquisition of coal
mines in Indonesia.
Consolidated Financial Statements
In compliance with Accounting Standards 21, 23 and 27 of Companies (Accounting
Standards) Rules, 2006 and pursuant to the Listing Agreement with the Stock Exchanges, the
Consolidated Financial Statements form part of this Annual Report.
As directed by the Central Government and pursuant to the Accounting Standard - 21 (AS
- 21) prescribed under the Companies (Accounting Standards) Rules, 2006, Consolidated
Financial Statements presented by your Company include financial information about its
aforesaid subsidiaries. The financial statements of BHL as well as its aforesaid
subsidiaries will be available on the website of the Company (www.bajajhindusthan.com).
Mr. Manoj Maheshwari joined the Company in September 2007 as Chief Finance Officer
(CFO) of the Company. He was inducted on the Board on whole time basis and designated as
Director & Group CFO for a period of five years with effect from October 01, 2012. In
terms of the provisions of the Companies Act, 1956 and the Articles of Association of the
Company, Mr. Manoj Maheshwari would hold office as Additional
Director (appointed with effect from October 01, 2012 at the Board Meeting held on
August 14, 2012) only up to the date of the 81st Annual General Meeting of the
Company. The Company has received notice from a member pursuant to Section 257 of the
Companies Act, 1956, proposing the appointment of Mr. Manoj Maheshwari as Director of the
Company. The Board of Directors recommends the appointment of Mr. Manoj Maheshwari as
Director of the Company.
Mr. Ashok Kumar Gupta joined the Company in May 1982. During his long tenure with BHL,
he had gained experience in different departments and immediately prior to his induction
on the Board, he was Senior President (Group Operations), Sugar & Distillery
Divisions. He was inducted on the Board on whole time basis and designated as Director
(Group Operations) for a period of five years with effect from October 01, 2012. In terms
of the provisions of the Companies Act, 1956 and the Articles of Association of the
Company, Mr. Ashok Kumar Gupta would hold office as Additional Director (appointed with
effect from October 01, 2012 at the Board Meeting held on August 14, 2012) only up to the
date of the 81st Annual General Meeting of the Company. The Company has
received notice from a member pursuant to Section 257 of the Companies Act, 1956,
proposing the appointment of Mr. Ashok Kumar Gupta as Director of the Company. The Board
of Directors recommends the appointment of Mr. Ashok Kumar Gupta as Director of the
Dr. Sanjeev Kumar (DIN 00364416) and Mr. Alok Krishna Agarwal (DIN 00127273), Directors
of the Company, will retire by rotation and being eligible, offer themselves for
re-appointment. All the appointments of the Directors of the Company are in compliance
with the provisions of Section 274 (1)(g) of the Companies Act, 1956.
Directors` Responsibility Statement
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, as amended,
with respect to the directors` responsibility statement, it is hereby confirmed:
(i) that in preparation of accounts for the financial year ended September 30, 2012,
the applicable accounting standards have been followed along with proper explanation
relating to the material departures;
(ii) that the directors of the Company have selected such accounting policies and
applied them consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the Company as at
September 30, 2012 and of the loss of the Company for the year ended September 30, 2012;
(iii) that the directors of the Company have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
(iv) that the directors of the Company have prepared the accounts of the Company for
the financial year ended September 30, 2012 on a going concern basis.
Auditors and Auditors` Report
M/s. Chaturvedi & Shah, Chartered Accountants, existing Statutory Auditors will
retire at the conclusion of the ensuing (81st) Annual General Meeting and seek
re-appointment as Statutory Auditors of the Company at the ensuing Annual General Meeting.
The Company has received certificate from M/s. Chaturvedi & Shah to the effect that
their appointment, if made, would be within the limits prescribed under Section 224(1B) of
the Companies Act, 1956.
The Board of Directors recommends to the shareholders the appointment of M/s.
Chaturvedi & Shah as Auditors of the Company.
The observations and comments given in the report of the Auditors read together with
notes to accounts are self explanatory and hence do not call for any further information
and explanation under Section 217(3) of the Companies Act, 1956.
M/s. B S R & Company, Chartered Accountants, appointed as International Accountants
of the Company have submitted the report on the Company`s Consolidated Financial Statement
to the Board of Directors for the year under review and the same forms a part of this
report for the information of members.
Pursuant to the directives of the Central Government under the provisions of Section
233B of the Companies Act, 1956, M/s. B.J.D. Nanabhoy & Co., Cost Accountants, Mumbai
(Firm Regn. No. 000011) were appointed as the Cost Auditors of the Company. The cost
auditors have submitted the Cost Audit Reports to the Central Government within the time
limit of 180 days from the close of the financial year for the following products:
||Financial year ended
||Date of filing
Particulars of employees
As required under the provision of Section 217 (2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975 as amended, particulars of
employees are set out in Annexure-III and forms part of this report.
However, having regard to the provisions of Section 219(1)(b)(iv) of the said Act, the
Annual Report excluding the aforesaid information is being sent to all the members of the
Company and others entitled thereto. Any member interested in obtaining such particulars
may write to the Company Secretary at the registered office of the Company.
Transfer of amounts to Investor Education and Protection Fund
The amounts of dividend, sum of matured fixed deposits, sum of interest on matured
deposit, etc. which has remained unpaid or unclaimed for 7 years have been transferred to
the Investor Education and Protection Fund within the time stipulated by law on respective
due dates in accordance with the provisions of Section 205C of the Companies Act, 1956.
Conservation of energy, technology absorption and foreign exchange earnings and outgo
The relevant particulars regarding the above is given in Annexure-I hereto and forms
part of this report.
The Company has vigorously striven to follow the best corporate governance practices
aimed at building trust among the key stakeholders, shareholders, employees, customers,
suppliers (including farmers) and other stakeholders on four key elements of corporate
governance - transparency, fairness, disclosure and accountability.
Industrial relations have been cordial at all the plants of the Company.
The Directors express their appreciation for the sincere co-operation and assistance of
Central and State Government authorities, bankers, customers and suppliers and business
associates. Your Directors also wish to place on record their deep sense of appreciation
for the committed services by your Company`s employees. Your Directors acknowledge with
gratitude the encouragement and support extended by our valued shareholders.
For and on behalf of the Board of Directors
|November 26, 2012
||Chairman & Managing Director
ANNEXURE-I to Directors` Report for the year ended September 30, 2012
Disclosure of particulars with respect to conservation of energy, technology absorption
and foreign exchange earnings and outgo as required under the Companies Act (Disclosure of
Particulars in the report of Board of Directors) Rules, 1988.
A. Conservation of Energy :
a) Energy conservation measures taken:
1. Clear juice heating by vapour in place of exhaust steam.
2. Drains of exhaust and live steam collected in a vessel and sent to boiler as feed
3. Use of Direct Contact Heater (DCH) for un-sulphured syrup heating with Vapor Cell 1
4. Recovery of heat from semi Kestner by providing flash connection from condensate
flash bottle to first vapour.
5. Installed spray engineering device make auto system to reduce power consumption by
reduction of injection water.
6. Installation of bearing protection system for mill roller bearings to reduce oil
consumption and wastage.
7. Synchronisation of 10 MW & 15 MW Turbo Generator Sets to increase power export
with existing power generating equipments.
8. Installation of variable frequency drives instead of conventional drives to reduce
9. Installation of auto shut off system for underground water reservoir pumps.
10. Lime air drier for de-moisturising the air required for sulphur furnace.
11. Automation of auxiliary cane carrier drive with Variable Frequency Drive &
Programmable Logic Controller.
12. Power capacitors were installed in the Power House & all Motor Control Centres
in all sections & maintain power factor between 0.93 to 0.95 to reduce the power
13. Installation of 400 KW bio gas engine and sulphur removal plant in Rudhauli
14. Installation of small DG Set of 82 Kilo Volt Ampere instead of 320 Kilo Volt Ampere
and other use of Compact Fluorescent Lamps in plant & offices instead of Mercury High
Power Light and incandescent lamps.
15. Introduced Tig Welding System in Mill Rollers to reduce electric power as well as
16. Company has started using capacitors banks to regulate the power factor loss from
0.98 to 0.99, which will reduce loss of energy in Eco-Tec Board units.
b) Total energy consumption and energy consumption per unit of production are given in
Form A attached.
B. Technology Absorption :
Efforts made in technology absorption are given in prescribed Form B attached.
C. Foreign Exchange Earnings and Outgo :
a) Activities relating to exports; initiative taken to increase exports; development of
new export markets for products and services and export plans:
b) Total foreign exchange used and earned:
|For the year ended September 30
Disclosure of particulars with respect to conservation of energy (to the extent
||Not applicable, as steam is generated by use of own bagasse
||Not applicable, as steam is generated by use of own bagasse
|A. Power and Fuel Consumption :
|b) Own generation through diesel generator
|Unit per litre of Diesel Oil
|c) Own generation through steam turbine
|Total amount Rate/Unit
||Rs Crore "/KWH
||Not applicable, as steam is generated by use of own bagasse
||Not applicable, as steam is generated by use of own bagasse
|B. Consumption per unit of production :
|Electricity (KWH/quintal of sugar)
||No standard has been fixed
|Electricity (KWH/ MT of Bagasse Board)
||No standard has been fixed
Disclosure of particulars with respect to technology absorption (to the extent
A. Research and Development (R&D)
Under Sugarcane Research & Development, the activities of 201 1-2012 were
accelerated as under:
1. Specific areas in which R&D is carried out by the Company
1. Introduction of new method of Trench Sowing.
2. Propagated Drip Irrigation System in Sugarcane field.
3. Extensive use of bio-fertiliser and promoted more use of organic manure (Bajaj
4. GPRS survey of Cane Area. The data was directly sent to main server through GPRS
5. SIS (Smart Information System) was introduced where information regarding any of the
transactions, cane survey, bonding, supply tickets, weighment and cane price payment is
being provided through SMS, QSMS (Query SMS), IVRS (Interactive Voice Response System) and
6. Design and development of PLC controlled lubricating oil system for continuous
7. Procured nucleus cane seed of newly involved varieties from Sugarcane Research
Station of U.P. to establish seed nursery plots under 3 Tier seed multiplication programme
through cane development unions.
8. Kinauni Plant is upgraded and awarded with FSSC 22000 certification (A GFSI approved
9. Ratoon management practices were promoted in the area while laying emphasis on multi
ratooning of sugarcane.
10. A1 massecuite production and curing arrangement.
11. Modification in B&C massecuite feed in the vertical crystallisers.
12. Installation of Bio-gas Plant.
13. Mechanical Circulators for low grade pans and planetary Gear Box for old
14. Space row planting in place of traditional method of sowing.
15. Use of Hand Held Terminals (HHT) at centres for online weighment data transfer.
16. Installation of efficient lime classifier.
17. Modification in last mill discharge chute to open the discharge point.
18. Mill bearing & compressor cooling water re-circulate by cooling tower.
19. Installation of carbondioxide plant.
20. Utilisation of Filtrate/Melt/Syrup clarification system.
21. Modification in Dust Sugar Collecting system to control wastage of sugar.
22. Use of Palia designed molasses cooler.
2. Benefits derived as a result of above R&D
1. Trench sowing increased the average yield in the area.
2. Drip Irrigation method for conservation of water and reduced cost of irrigation.
3. To maintain soil fertility & increase productivity.
4. The GPRS Survey helped in saving manpower and ensured data accuracy.
5. By introduction of SIS, the farmers can get the required information anywhere and
anytime without wasting their time and money to come to the inquiry counter set up in the
6. Optimal lubricant consumption and safe operation of machines.
7. The seed which was available to the farmers from the research station was in very
small quantities. This was sown by the farmers & is now available 10 to 12 times in
8. Sale to institutional buyers is increased in comparison to last year and also helped
in improving total realisation.
9. Improve the cane intensity and productivity.
10. Production of A1 massecuite enhanced the sugar colour and controlled the
intermediate molasses purity.
11. Breakdown in gears of vertical crystalliser stopped & operation became smooth.
12. Increased Bio gas production has resulted in lowering fuel costs.
13. Better circulation in Pans.
14. Reduction in the cost of cultivation resulting in more profit to the farmers.
15. By the use of HHT, the manual writing work was avoided, chances of error were
reduced and saved a lot of manpower involved in data feeding.
16. Reduction of lime consumption.
17. Avoidance of the bagasse jamming in chute bottom.
18. Control of oil temperature.
19. Installation of carbondioxide plant has resulted in pollution control.
20. Reduction of sulphur consumption and improvement of quality and recovery of sugar.
21. Sugar dust collection increased from 70-80 bags per season to 320 bags in 2011-12.
22. Palia designed molasses cooler resulted in bringing down the temperature of final
3. Future Plan of Action
1. Use of surplus condensate for make-up water for process cooling tower.
2. Separate cooling water circuit for power house to reduce pumping power requirement
and better control.
3. Mechanisation of sugarcane planting, Inter-culture operations and fertiliser
4. Development of link road through cane development councils.
5. More emphasis on water conservation by drip irrigation system.
6. Inter cropping and cane plantation by Trench opener method to increase.
7. Waste heat recovery from Sulfur furnace.
8. Filtration of filter juice coming out from O C filter to reduce the quantity of non
soluble material negligible.
9. Molasses conditioner brix & temperature controlled automation.
10. Strengthening of Sugarcane Information System (S.I.S.).
11. Cane area survey of 100% cane area to be conducted by GPRS enabled HHC & also
planning to install HHCs in all our centres in forthcoming season.
12. Emphasis integrated nutrients & pest management in order to increase yield,
quality of sugarcane, maintain soil health and protect environment.
13. More effective implementation of Integrated Nutrient Management (I.N.M.).
14. Better ratoon management practices to be made popular in the area in order to
increase yield of ratoon and promote multi ratooning.
15. Promoting more use of organic manure (Bajaj Javik) for improving the fertility
status of soil.
16. Establishing soil testing laboratory.
17. To develop an alternate and a better source of Phosphate for which PSB (Phosphate
Solubilising Bacteria) culture.
18. Introduction of new agricultural implements like Mould Board plough (for Deep
cultivation), Rotavator (for Trash Mulching), etc
19. To install computerised weighbridge at centres.
20. Wide row cane planting for water conservation.
21. Stress on increasing co-gen with existing machinery.
22. Installation of Mechanical Circulators for Low Grade Pans.
23. Installation of Planetary Gear Box for old Crystalliser Drive.
24. Installation of SEDL system to reduce the consumption of injection water.
25. Installation of DCH for Molasses heating through ammonia gases.
26. Installation of I.C. make Sugar Grader in place of old 4 Deck Graders.
27. Installation of CIGAR system for use of flash vapour.
28. Replacement of old Batch Type 750 Kg Centrifugal Machine by new NG-1750 Kg.
4. Expenditure on R&D
|For the year ended September 30
( Rs Crore)
( Rs Crore)
|d) Total R&D expenditure as a percentage of total turnover
Note: The capital and revenue expenditure on R&D incurred during the year have
been included in the respective heads of capital and revenue expenditure.
B. Technology absorption, adaptation and innovation
||Efforts in brief, made towards technology absorption, adaptation and innovation
||Benefit derived as a result of the efforts
||Information regarding technology imported during the last 5 years:
||a) Technology imported
||b) Year of import
||c) Has technology been fully absorbed
||d) If not fully absorbed, areas where this has not taken place, reason therefore, and
future plans of action
ANNEXURE-II to Directors` Report for the year ended September 30, 2012
Disclosures in compliance with clause 12 of the Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are set
|a) Options granted till date
|b) Pricing formula
||Fixed price of Rs 100/- per share of the face value of Rs 10/-each. Post sub-division
of equity shares by erstwhile Bajaj Hindusthan Sugar and Industries Limited (BHSIL) in
August 2006, the Fixed Price was adjusted at Rs 100/- per 10 shares of the Face Value of
Rs 1/- each. Post Amalgamation of BHSIL with the Company, the exercise price is adjusted
to Rs 50/- per equity share of the Face Value of Rs 1/- each. Entitlement per option is 2
(two) equity shares of face value of each.
|c) Options vested
|d) Options exercised as at September 30, 2012
|e) The total number of shares arising as a result of exercise of option during the
|f) Options lapsed as at September 30, 2012
|g) Variation of terms of options
|h) Money realised by exercise of options
||Nil during the year
|i) Total number of options in force as at September 30, 2012
|j) Employee-wise details of options granted during the year to:
|i) senior managerial personnel
|ii) any other employee who received a grant in any one year of options amounting to 5%
or more of option granted during that year
|iii) identified employees who were granted option during any one year equal to or
exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the
Company at the time of grant.
|k) Diluted Earnings per Share (EPS) pursuant to issue of shares on exercise of option
calculated in accordance with Accounting Standard (AS) 20 `Earning per Share`
||( Rs 3.87)
|l) i) Method of calculation of the employee compensation cost
||i) Intrinsic Value Method
|ii) Difference between the employee compensation cost as computed at (i) above and the
employee compensation cost that shall have been recognised if it had used the fair value
of the options
||ii) Not Applicable (since all the options have already been vested in the year 2007)
|iii) The impact of this difference on profits and EPS of the Company
||iii) Not Applicable
|m) Weighted average exercise price and weighted average fair value of options
||Rs 100/- and Rs 322.18 (Post subdivision and Amalgamation Rs 50/- and Rs 161.09
|n) Description of the method and significant assumption used during the year to
estimate the fair value of options:
||Rs 322.18 is the fair value of the option calculated using Black Scholes option
pricing formula. The variable used for the aforesaid calculation are as follows:
||Risk free interest rate
||Expected life of options
||The price of the underlying shares in the market at the time of option grant