04:44 May 22, 2013  

Sanwaria Agro Oils Ltd

HSL Code: SANAGO   |   BSE Code: 519260  |   NSE Symbol: SANWARIA  |   ISIN: INE890C01046
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SANWARIA AGRO OILS LIMITED

ANNUAL REPORT 2011-2012

DIRECTOR`S REPORT

To The Members of Sanwaria,

Your  Directors  have pleasure in presenting their report  along  with  the 
accounts of the Company for the year ended 31st March 2012.

FINANCIAL RESULTS                                            (Rs. in Lacs) 
                                                      FY2012        FY2011

Net Turnover & Other Income                           143315        159203

Profit before depreciation, Interest and Tax            8278          7088

Depreciation & Amortization expenses                     590           578

Finance charges                                         5767          2678

Profit before Tax                                       1921          3832

Provision for Tax                                        300           708

Profit after Tax (Before Deferred Tax)                  1620          3124

Less/Add: Tax (Deferred)                                (84)            25

Profit After Deferred Tax                               1704          3099

Dividend

Reserves                                               20016         20052

Shareholders` Fund                                     23396         21598

PERFORMANCE REVIEW- OPERATIONAL

Company is making out all effort to ensure that the products developed  are 
in tune with the needs of the consumers and initiated several steps to mark 
its presence in the premium markets, reducing the marketing lag and improve 
of  the  Company`s  product are some of the  current  initiative  that  are 
expected  to help the Company to be a cost effective to enable its to  meet 
the challenges of competitive markets in the future.

Oil Division

During  the  year  Soya Seeds processed stood at 238852  MT.  Your  Company 
sustained  to  be  one  of leading player in the  Edible  Oil  sector.  The 
Capacity  Utilization of the solvent extraction plant has  been  constantly 
higher than Industry average.

Refinery Division

Production of Refined oil stood at26573 MT during the year under review.

APPROPRIATIONS

Dividend

With a view to conserve resources for funding the business expansion  plans 
of  the Company, no dividend on the Equity Shares for the year ended 31  st 
March, 2012 was recommended.

Transfer to Reserves

The  Board has recommended to transfer of Rs. 200 Lacs, being 11.7% to  the 
profit earned during the year to the General reserve and an amount of   Rs. 
1505  lacs  out of Current year`s profit is retained in the profit  &  loss 
account.

MANAGEMENT DISCUSSION AND ANALYSIS

A  detailed  report on the management discussion and analysis  provided  in 
separate section elsewhere in this Annual report.

BRANDING, AWARD AND RECOGNITION

Your Company won many accolades and Crowned with "fastest wealth  creators" 
award  and  top  with  1st rank by "Motilal  Oswal  creation  study  during 
(Financial Year 2006-2011)".

Ranked 379th in terms of Net Sales, Ranked 512th in terms in terms of  Cash 
Profit  and  459th in terms of PAT by "Fe 500India`s Finest  Companies  out 
of500 companies ".

Ranked  194th  in term of Market Capitalization by "Fe 500  India`s  Finest 
Companies "out of500 companies.

Ranked  347th  in terms of Net Sales, 747th in terms  of  Operating  Profit 
,657th  in  term of Net Profit, 663rd in terms of Total  Assets  ,755th  in 
terms  Net  Worth and 577th in terms of Market Cap  by  "Business  Standard 
1000".

Ranked  at 263rd being "the fastest-Growing mid size Company by Inc.  india 
magazine"  and  awarded  with 1st position in terms of  Top  Public  Wealth 
Creator  during tenure of 2007-2010 and Stood in Top 25 Companies in  terms 
of top line CAGR with 35.6% among the turnover (Topline) range of  Rs. 1000 
crore to  Rs. 1500 crore.

Ranked  by  "Plimsoll  Global Analysis, United Kingdom"  at  290th  largest 
Company  in the Global Food Manufacturing industry amongst the World`s  top 
500  Food  Manufacturers and also listed as a top performer at  230th  most 
profitable food manufacturing of the World.

STEPPED DOWN AREA

Your  Company continues to rein enviably in its product  portfolio-both  in 
number and performance. The Company has launched:

WHOLE WHEAT CHAKKI FRESH ATTA under the brand "SANWARIA SETH" in a consumer 
pack of 1, 2,5 & 10 Kg. Currently it has been launched in M. P., CG.  Going 
forward  it shall be launched in some other parts of central region and  in 
North  & South (Andhra Pradesh, Tamil Nadu) region also. We are  going  for 
fortification of this Chakki fresh Atta which is enriched with more protein 
and nutrient that meet the WHO standards.

SOYA  NUGGETS/CHUNKS - "SANWARIA PRODIET", Leveraging new  capabilities  to 
open  up new growth vectors new products like " Sanwaria Prodief`  launched 
which  is  currently  being  outsourced.  Consumption  opportunities   were 
successfully  tapped  and  widened through Introduction  of  (Soya  Nuggets 
/Chunks), In the upcoming year the Soya Nuggets production plant is also on 
the radar.

BASMATI RICE , Additionally your Company focused attention on building  new 
capabilities  and  a robust pipeline of innovation,  While  building  brand 
differentiation  and  relevance the Company has entered into  Basmati  rice 
segment  which is expected to be launched in a couple of months  under  the 
brand strategy.

"SANWARIA"  brand, promoted during the year in addition to  "NARMADA"  hold 
promise and hope for the Company business. Import of commodities like  Soya 
Crude  Degummed Oil, Crude Palm Oil, Coal, RBD Palmolien and sunflower  Oil 
etc. are already placed to strengthen the business.

The  Company  is  gaining momentum for Supply  of  "SULABH"  RBD  Palmolien 
domestically  with  a  view  of growing demand  in  the  upcoming  years  . 
Fortified Soya refined Oil, Blended edible oil, Refined Bleached Deodorized 
Palm olien, High protein soya meal, Full fated and Defatted Soya flour  are 
the new avenues to capture market.

FUTURE PROSPECTS

Your Company will invest more in marketing initiatives with an aim to  grow 
the non-credit based segment. Some new retails like Wall Mart, Metro, Carry 
Four are likely to be inducted, On the other hand we are expanding our  own 
marketing  network  into various regions. The core business and  will  work 
with strategic partnerships or alliances in the various divisions to create 
more  value for the shareholders with a vision to emerge as an FMCG  player 
and  focusing  to promote its "SANWARIA" brand by entering  into  long-term 
marketing  and  branding strategy in place and through  this  Company  will 
increase its branded sale to 35-40% from 10% of current level. Further  the 
step of government to ban the loose oil sale will also support branded sale 
contribution significantly.

Operation  have  also  been streamlined for  differentiated  products  Like 
"SALT"  in addition to existing portfolio of Whole Wheat Chakki Fresh  Atta 
(SANWARIA SETH), Soya Nuggets ("SANWARIA PRODIET"),Basmati Rice. "Sanwaria" 
,"Narmada",  and  "Sulabh", are placing prominent position of  the  Company 
into the market.

Some value added Soya based products Like Soya Flour, Soya Tofu and  Potato 
based  -Like  Chips, Flakes, and Vanaspati, Vegetable oil refinery  are  in 
pipeline.

WIND POWER DIVISION-HIVED OFF

Board  considered and approved hive off Wind power division of the  Company 
to  purely  concentrate  on  FMCG sector and  its  branded  sales.  Thereby 
disposed  off its Wind power division with effect from 1 st April  2012  to 
its subsidiary Company Sanwaria Energy Limited incorporated solely for  the 
purpose of wind power generation.

SUBSIDIARY Company

There  has been no business activity during the year by Sanwaria  Singapore 
Pte. Limited (Singapore), a wholly owned subsidiary of Sanwaria.

DIRECTORS

Mr.  Santosh Kumar Tiwari, Mr. Surendra Kumar Jain and Mr. H.  K.  Agrawal, 
are  Directors retire by rotation in accordance with the provisions of  the 
articles of Association of the Company and being eligible offers themselves 
for reappointment.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant  to section 217(2 AA) of the Companies (Amendment) Act  2000,  the 
Directors confirm that:

In preparation of the Annual Accounts, the applicable Accounting  Standards 
have been followed and that there are no material departures.

They  have consulted the Statutory Auditor in the selection  of  Accounting 
Policies. The Policies have been applied consistently and the judgments and 
estimates  made  are reasonable and prudent so as to give a true  and  fair 
view  of  the state of affairs of the Company at the end of  the  financial 
year  ended  March 31st, 2012 and the profit and loss for  the  year  ended 
March 31st, 2012.

Proper  and sufficient care has been taken 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.

The Annual Accounts have been prepared on a going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY & FOREIGN EXCHANGE EARNINGS/OUTGO

Details  of  energy conservation and Research  and  Development  activities 
undertaken  by  the Company along with information in accordance  with  the 
provisions of Section 217(e) of the Companies Act, 1956 read with Companies 
(Disclosure  of  Particulars in the Report of Board  of  Directors)  Rules, 
1988, are given inAnnexure to the Directors` Report.

PUBLIC DEPOSITS

Your  Company  has  not  accepted any deposits under  section  58A  of  the 
Companies  Act,  1956  and hence no amount of principal  and  interest  was 
outstanding as on the date of this Annual report.

FINANCE & INSURANCE

The Company`s relationship with its consortium and other bankers  continued 
to be cordial during the year. Company would like to thanks its Bankers for 
their support. The assets of the Company are adequately insured against all 
types  of risks. "CARE" assigned to Company "A2+" rating revised for  short 
term  debts and "BBB+" for long term debt, whereas annual  surveillance  is 
due.

LISTING

The  Company is also viewing to step into Overseas Listing. At present  the 
shares of the Company are listed on Bombay Stock Exchange of India  limited 
and National Stock Exchange of India Limited.

PARTICULARS OF EMPLOYEES

None of the employees of the Company were paid such remuneration during the 
year  under review, which attract the provisions of Section 217(2A) of  the 
Companies act, 1956 as amended.

AUDITORS AND AUDITORS` REPORT

M/s  Sunil Saraf & Associates, Chartered Accountants, Indore,  auditors  of 
the Company retire at the ensuing Annual General meeting and have confirmed 
their  eligibility and willingness to accept office, if  re-appointed.  The 
Board  of Director recommends reappointment of Auditors of the Company  for 
the Financial year 2012-2013 for shareholders approval.

CORPORATE GOVERNANCE

The report of the Board of Directors of the Company on Corporate Governance 
is given as a separate section titled Report on Corporate Governance, which 
forms  part  of  the  Annual  Report.  The  Auditors  Report  on  Corporate 
Governance  compliance  is  also annexed therewith  and  compliance  report 
signed  by the Chairman of the Company in connection with  compliance  with 
the  Code  of  Conduct  and  also  CEO/CFO  certification  in  addition  to 
Certificate from Statutory Auditors of your Company regarding compliance of 
Conditions of Corporate Governance as required by the amended clause 49  of 
the listing agreement

ACKNOWLEDGEMENTS

The  Directors place on record their sincere gratitude for  the  assistance 
received  from  the  Banks  during the year and would  like  to  thank  all 
stakeholders,   namely,   customers,  shareholders,   dealers,   suppliers, 
employees  and  all other business associates for  the  continuous  support 
given by them to the Company and its management.

                                             For and on behalf of the Board

Date : 25/08/2012                            Ram Narayan Agrawal
Place: Bhopal                                (Chairman)

Information required under the Companies (Disclosure of Particulars in  the 
Report of Directors) Rules, 1988 and forming part of director`s report  for 
the year ended 31st March, 2012

A. CONSERVATION OF ENERGY:

The  Company has taken the following measures towards the  conservation  of 
energy.

i) Using light only whenever required.

ii) Minimise the use of air conditioner.

iii)  Various energy conservation techniques were initiated at large  scale 
and successfully implemented.

iv)  Maintained/controlled  the mixing of Fuel & Air ratio  resulting  into 
maximization of boiler efficiency.

v)  Online  monitoring of Boiler Efficiency resulting into  improvement  of 
Efficiency by 2%.

vi)  Installation  of  higher efficiency DG sets  for  uninterrupted  power 
supply.

vii) Power generation through Wind Turbine Generator.

viii) Utilization of UPS and high voltage control stabilizers.

b)  The  required date with regard to conservation of energy  is  furnished 
below: Power and Fuel Consumption

Electricity                                      Year Ended      Year Ended 
                                           31st March, 2012 31st March,2011

a) Purchased Unit             KWH                  10428063        12457602

Total amount in               Rs.                  61828441        61696332

Rate/Unit(KWH)                Rs. per unit             5.93            4.95

b) Own Generation             KWH                    167656          194914

Total amount in               Rs.                   1938995         2638611

Rate/Unit(KWH)                Rs.                     11.56           13.54

COAL `C & `D` Grade for Steam generation 

Quantity                      MT                   25881.68        31778.22

Total Cost                    in Rs.              128653161        10643838

Average Cost per              MT Rs.                4970.82         3481.75

FURNACE OIL                                               -               -

OTHERS/INTERNAL GENERATORS

Consumption per unit of production                Cost per MT of Production

Electricity                                          253.79          219.25

Furnance Oil Litre            KWH/MT                      -               - 

Coal (Specify)                MT                     528.09          393.20

Others (Specify)              MT                          -               -

Benefits of above measures

i) Reduction in consumption of electrical power.

ii) Reduction in recourse consumption.

iii) Increase in equipment utilization.

iv) Optimal load management.

v) Reduction of Green House Gases through wind power generation.

Also  Company  has been able to achieve the least possible  consumption  of 
energy in comparison to the industry average.

Contents                                Company`s      Industry`s 
                                       Consumption    Consumption

Electricity Consumption                 42 units        50 units*

Coal Consumption                         106 kg        150 units*

* Source: Observed from the cases of most of the plants in the area.

B. TECHNOLOGY ABSORPTION, RESEARCH AND DEVELOPMENT:

1. Specific areas in which Technology absorption and R&D carried out by the 
Company:

1. Developing new products and product improvements.

2.  Standardization of raw material, production methods and finished  goods 
quality.

3. Up gradation of plants for the improvement in quality of oil.

4.  Promotion  of its Brands through Radio channels, Advertisement  in  TV. 
channels, Cineplex etc. to expand market share and to increase  consumption 
of the products.

5. Reduction of emission of pollutants from Chimney by installing pollution 
control equipments.

6. Process of getting certification of ISO-14001,22000 and GMP.

7. Manufacturing of Jar for packaging of Soy Refined Oil and RBD Palm oilen 
as captive consumption.

2. Benefits Derived as a result of above:

* Product Improvement

* Cost Reduction

* Product development

* Enhanced capacity utilization.

* Significantly reduce the emission of pollutants into environment.

*  The  quality  of Company`s products has improved  and  thereby  enjoying 
significant position in the industry.

3. Future plan of action:

To Continue R & D in the existing area. Explore new ingredients,  processes 
and technologies to create new preposition and taste experiences.

FOREIGN EXCHANGE EARNINGS AND OUT GO:

The   Company  has  continued  to  maintain  focus  and  avail  of   export 
opportunities based on economics considerations.

Foreign Exchange earned and used: (In US $)

Contents                                        2012                  2011

Foreign exchange earned            US$ 15.35 Million     US$ 17.01 Million

Foreign exchange used              US$ 19.85 Million     US$ 43.42 Million

Net Foreign exchange earned        US$ -4.50 Million     US$ -26.41 Million

Date : 25/08/2012                            For and on behalf of the Board
Place: Bhopal 
                                             Ram Narayan Agrawal
                                             (Chairman)

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Soybean has been a staple for thousands of years, touted as a miracle crop, 
low  in fat and cholesterol, and an ideal protein for vegetarians or  those 
wishing  to  cut  back on animal protein. Conventional  wisdom  among  many 
dietary  experts  is that eating soy is good for you. Fibrous  soy  can  be 
processed into fake meat, rendering a versatile, plant-based protein.

A  one cup serving of soybeans has more than 55 percent of the  daily  need 
for  protein. Soyabean has attained a vital status in agriculture  and  oil 
economy  of India. India is the fifth largest producer of Soyabean  in  the 
world  producing  11  Million  Metric tonnes having  4.37%  of  total  soya 
production in 2011.

Whole  Soyabean  products are primarily edible products such as  the  seed, 
bean sprouts, baked soyabean, full fat soya flour used in various  products 
of  baking, roasted soyabean used as confectioneries, soya nut butter,  soy 
coffee, and other soya derivatives of oriental foods.

India  is primarily a closed economy in the soyabean arena. Every  year  it 
exports  around  5  Million Metric Tonnes de-oiled  cake  (DOC)  and  earns 
valuable foreign exchange. Sanwaria is one of the leading solvent extractor 
and  manufacturer of soy refined oil & de oiled cake. It exports about  65% 
of  its  production of soy meal. In addition to normal Soya meal,  it  also 
produces  specialized high protein soybean meal. It is an  integrated  agro 
food  processor  and an emerging FMCG Company engaged in  the  business  of 
manufacturing of soy oil ,soy cake and other FMCG products and has presence 
in the sector since 1991.

Industry Structure and Development

Consuming  fats  is  an essential nutritional need, most of  which  is  met 
through  visible fat sources - vegetable Oils. The per  capita  consumption 
has already reached 14.2 kg, which means the average consumption has  risen 
to  38.9  gm,  Edible  oil  consumption  is  closely  linked  to   economic 
development,  in which soyabean has been placed at the 2nd rank  with  42.6 
Mn. Metric Tonnes, placing palm at the first with 49.6 Mn. Mt.

World vegetable Oil Consumption, 2011

Palm                49.6 
Soybean             42.6  
Rapeseed            23.2 
Sunflowerseed       12.9 
Cottonseed           5.2 
Peanut               5.2 
Palm Kernel          5.1 
Coconut              3.9  
Olive                3.0 

Total              150.8

Vegetable oil consumption is income and price elastic. Both higher  incomes 
and lower prices have contributed to the rising consumption. The increasing 
oil demand is an economic challenge, too. The import bill is bound to go up 
with rising consumption.

The  vegetable oil deficit in FY 2011 -2012 was expected to be around  10.8 
million  tons of which 87 is likely to be met through imports.  The  edible 
oil import for current marketing year is estimated at 9 million tons, which 
include  7 million tons of palm oil, 1.4 million ton of soy  oil,  6,00,000 
tons  of  Sunflower  oil and 15000 tons of other  edible  oils.  The  total 
vegetable oil needs of the projected Indian population of 1,685 million  by 
2050 works out to 17.84 MT to meet the nutrition requirement. The needs  of 
vegetable  oils  to meet the nutritional fat requirement even by  2050  can 
easily  be  met if we increase the production of supplementary  sources  of 
vegetable oils, besides increasing productivity.

Export of edible oils was permitted only in branded consumer packs of up to 
5 Kgs, but now such export of edible oils is prohibited, as per Directorate 
General of Foreign Trade (DGFT)

Soybean has only 17-18% oil content. In trading, major price guiding factor 
is  soybean  meal. Most of meal is exported to big nations.  Moreover,  Doc 
demand also finds its way from Asian countries regularly.

According  to the production estimate, while internal supply of edible  oil 
seed  is  around  38.5 Mn MT, demand is roughly 59 Mn MT. The  gap  is  met 
increasingly  through imports, a drag on the exchequer. Demand  and  supply 
gaps  in edible oil are to be addressed by emphasizing minor oil  seeds  as 
well, such as rice bran, cotton or safflower and nigerseed. Technology will 
need to be imported from edible oil exporting countries, to reduce the lead 
time for sowing and production.

Health and Benefits of Soya

Soybeans have been used for centuries as food, medicine, filler and  animal 
feed, Some of the point satisfies the statement.

* Enhance immune function

* Strengthen human tissues and organs

* Improve energy

* Whiten and care skin

* Prevent cancer

* Prevent oxidation

* Reduce blood fat

* Prevent deafness

* Bring high blood pressure down

Versatile For Many Applications

Composed  of both protein and oil, soybeans open the door for a variety  of 
uses.  Soybean  processors  can divide soy`s components  into  soy  protein 
(soybean  meal) and soy oil. Soy protein, which makes up 80 percent of  the 
soybean, primarily serves as animal feed and is incorporated in many  human 
foods. For oil, food industry consumes more than 83 percent of U.S. soybean 
oil for purposes such as cooking, baking and frying. The remaining  soybean 
oil  is applied in industrial applications such as adhesives, coatings  and 
printing  inks,  lubricants,  plastics and  specialty  products,  but  also 
biodiesel, a fuel using soybean oil as a feedstock.

Now candles are made from soy wax, which is hydrogenated soybean oil.  They 
are  cheap, natural, long lasting upto 50% and it produces about  90%  less 
soot compared to paraffin wax candles.

Threats, Risks and Concerns

India`s  edible  oil imports in the year beginning November  could  top  10 
million  tonnes  with consumption set to grow and poor rains  clipping  the 
domestic  oilseeds crop, Even if we presume oilseed production at  existing 
levels,  800,000 tonnes more of oil has to come in the next oil year,  with 
annual demand increasing by an average 3-4 percent and an additional annual 
population of 20 million.

The  country could buy up to 9.4 million tonnes of oil in the current  year 
ending Oct. 31, up from 8.4 million tonnes last year with insufficient  and 
erratic rains in some of the oilseed growing regions paring the summer crop 
by  eight to ten percent. India, the world`s top edible oil importer,  buys 
palm  oil mainly from Indonesia and Malaysia and soyoil from Argentina  and 
Brazil.

Key   oilseeds  growing  states  including  Madhya  Pradesh,   Maharashtra, 
Rajasthan,  Gujarat  and Karnataka have so far received  less  than  normal 
rainfall in the monsoon season that began on June,l .Much would also depend 
on how the monsoon shapes up in the last phase of the monsoon in  September 
and  later on in October. Area under key oilseeds has been more or less  at 
the  same levels as in the previous year, erratic rains during  the  sowing 
season  in July and earlier weeks have either caused damage to the crop  or 
have led to withering in some regions.

This would ultimately hit production and productivity.

Soybean  output will be at same levels as last year with rains  comfortable 
in  the  growing  belt in Madhya Pradesh and Maharashtra. But  there  is  a 
problem  with  the  groundnut crop in Karnataka and  Saurashtra  region  in 
Gujarat  even  though the acreage is lower. Soybean has lower  oil  content 
than  groundnut and rapeseed, but its prices have been ruling high  due  to 
global and domestic factors.

Overall  summer  oilseeds output will be lower than last  year.  Groundnut, 
sunflower,  sesame  production will be hit. Cotton area is also  lower  and 
cotton oil will suffer and all this will lead to higher edible oil imports.

Government Policies:

There  is no increase in custom duty on import of RBD Palmolein, which  was 
requested for by the Association to counter the inverted duty structure  of 
Indonesian  Government for CPO (16.5%) RBD Palmolein (8%). This is  evident 
from  the  fact that import RBD Palmolein already jumped  up  from  monthly 
average  of  1,00,000 tonnes to 3,00,000 tonnes in the month of  Feb.  This 
will  surely call a death knell for Indian domestic vegetable oil  refining 
industry.  This  will also cause unemployment of more than 1  lakh  persons 
directly and affect more than 5 lakh people of ancillary industries.

There is arrangement for Vegetarian and Non Vegetarian in our country  just 
like  that  the arrangement should be for GM food labeling in  interest  of 
Indian  farmers. GM food is injurious to health and Indian  agriculture  as 
well. European countries do not allow even single export which contains  GM 
food.

Borrowing Cost: The year under review interest rate was very high, expected 
to  be lower in 2012-13 which will reduce finance cost of  the  Corporate`s 
significantly.

Higher  Electricity Charges- The rates of electricity charges are  continue 
to be very high. Government should take some measures to reduce the  burden 
of Industries.

Company Scenario

Emerging  as  a FMCG player the Company has already added  few  products  , 
Planning  to  leverage  by adding some more in to the  product  basket  viz 
Fortified  Soya  oil, Soya refined Oil, Blended edible  oil,  Refined  Palm 
olien oil, High protein soya meal, Full fated and Defatted Soya flour,  and 
Salt  etc.  Sanwaria is doing good in all its three oil  brand  "SANWARIA", 
"SULABH" and "NARMADA".

In view of increasing demand and expected revenue, the Company is promoting 
its "Sulabh" Brand by trading in RBDPalmolien.

During the year the Company launched Whole Wheat Chakki Fresh Atta  (Flour) 
under  brand  strategy  named "SANWARIA SETH",  Soya  nuggets/Chunks  under 
"SANWARIA PRODIET" these value added products will lead by 15-20%  increase 
in branded sales this marketing year.

Going forward some new retail chains like Wall Mart, Metro, Carry Four  are 
likely to be inducted, On the other hand we are expanding our own marketing 
network into various states .We have targeted 35% contribution from branded 
sales in next 2 years.

Presently we have two supply chains -Direct & Indirect for our product

Through  Direct chain -We have marketing arrangements with  Hariyali  Kisan 
Bazar  (DCM),  Reliance fresh, Pantaloon (Big Bazaar),  ITC  Choupals,  and 
Vishal Retails etc.

Indirect Chain- We have various C&FA in M.P., CG, U.P., Delhi(NCR) Himachal 
Pradesh,  Haryana,  Orissa, Maharashtra and 10-15  Distributor  under  each 
C&FA, Our branded sale have contributed 10% in total oil revenue which  was 
only 2% till the year 2007,

Surely  the  Company  is strengthening as an  FMCG  Company.  Basmati  rice 
segment  which was on the trail is going to deliver its consumer  packs  in 
next 3 -4 months.

Segment Wise Performance - Wind Power

Till  31st  March 2012 the Company has Wind Turbine Generators  of  8.4  MW 

capacity out of which 1.8 MW at Tenkasi in Tamilnadu and 6.6 MW at Dewas in 
Madya Pradesh. This Segment of your Company registered a revenue of Rs. 350 
lakhs and Profit after Tax (PAT) of Rs. 151.86 lakhs, for the year.

W.e.f.  1st  April,2012 WindPower division has been hived off  to  Sanwaria 
Energy Limited, Subsidiary Company of Sanwaria Agro Oils Limited

Financial performance

Financial performance of the Company is covered in the Directors` Report. 

Internal Controls system

The Company has an internal audit system with the objective of safeguarding 
the  Company`s  assets, protection against loss from  unauthorized  use  or 
disposition,  ensuring  that  all  transactions  are  properly  authorized, 
recorded  &  reported  correctly, and providing  significant  assurance  at 
reasonable  cost,  of integrity, objectivity and reliability  of  financial 
information.  The  management  of  the Company  duly  considers  and  takes 
appropriate action on recommendations made by the internal auditors,  audit 
committee of the Board periodically.

Human Resources

A  knowledge  driven  Company built on the strength  of  technical  talent, 
progresses  fast  and sustain long, In tune with philosophy,  Sanwaria  has 
consciously added skilled and experienced professional on a regular  basis. 
And  in view of this conscious need of the formal human  resources,  system 
oriented planning and business strategies, the Company has initiated  steps 
to  create  systems  and  procedures that will  enhance  further  the  work 
environment,  productivity  and performance. The Company will  continue  to 
focus on talent search and retention and working towards this objective.

Cautionary Statement

Statements in this Directors` Report and Management Discussion and Analysis 
describing   the   Company`s   objectives,   projections,   estimates   and 
expectations may constitute "forward looking statements" within the meaning 
of  applicable laws and regulations. Actual results may  differ  materially 
from those either expressed or implied.

Corporate Social Responsibility

Committed  to  be  socially responsible, the Company is going  to  start  a 
hospital  through  a charitable trust at Itarsi by the end of  this  fiscal 
year which will be helping hand towards social and economic development  of 
the  villages and the communities located close to its operations and  also 
providing assistance to improving their quality of life.
 
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