5 YEARS PERFORMANCE TRENDS : 2011-2016 C Crore BALANCE SHEET 31.03.2016 31.03.2015 31.03.2014 30.09.2012* 30.09.2011 EQUITY AND LIABILITIES Shareholders’ funds Share capital 111.68 81.02 63.94 63.94 22.84 Reserves and surplus 2,247.56 1,725.75 2,495.30 4,030.34 3,117.07 Sub total 2,359.24 1,806.77 2,559.24 4,094.28 3,139.91 Non-current liabilities Long-term borrowings 6,345.98 7,111.34 2,509.57 1,500.69 2,239.74 Other long-term liabilities - - 179.40 - - Deferred tax liabilities (net) - - - - 87.74 Long-term provisions 29.02 26.58 41.36 31.84 26.86 Sub total 6,375.00 7,137.92 2,730.33 1,532.53 2,354.34 Current liabilities Short-term borrowings 36.45 146.21 3,076.14 3,286.30 1,424.33 Trade payables - micro and 0.77 - - - - small enterprises Trade payables - others 2,194.95 2,789.84 2,815.92 236.40 284.82 Other current liabilities 766.17 102.04 1,245.84 1,018.66 2,554.99 Short-term provisions 120.64 93.79 100.94 29.13 34.74 Sub total 3,118.98 3,131.88 7,238.84 4,570.49 4,298.88 Total 11,853.22 12,076.57 12,528.41 10,197.30 9,793.13 ASSETS Non-current assets Fixed assets Tangible assets 4,669.26 4,889.82 4,986.71 5,419.50 5,389.12 Intangible assets - - 0.13 0.35 0.52 Capital work-in-progress 18.74 8.26 8.14 7.40 24.29 Non-current investments 2,281.71 2,281.71 2,431.05 1,600.36 1,343.79 Long-term loans and advances 40.64 48.08 60.57 92.11 74.87 Other non-current assets 3.83 3.66 1.40 1.68 1.32 Sub total 7,014.18 7,231.53 7,488.00 7,121.40 6,833.91 Current assets Current investments - - - - 0.05 Inventories 1,924.12 2,179.29 2,673.50 558.24 467.82 Trade receivables 308.72 168.99 225.48 192.02 248.20 Cash and bank balances 117.09 88.07 128.24 180.30 583.77 Short-term loans and advances 1,913.61 1,773.83 1,491.11 1,735.82 1,227.26 Other current assets 575.50 634.86 522.08 409.52 432.12 Sub total 4,839.04 4,845.04 5,040.41 3,075.90 2,959.22 Total 11,853.22 12,076.57 12,528.41 10,197.30 9,793.13 * The fi gures of Financial Year 2011-12 include the effect of amalgamation of Bajaj Eco-Tec Products Ltd. (as per scheme) w.e.f. 01.04.2012. C Crore NET INCOME STATEMENT 31.03.2016 31.03.2015 31.03.2014 * 30.09.2012** 30.09.2011 year/period ended INCOME Revenue from operations 4,683.23 4,531.46 6,644.25 4,262.63 4,903.80 Other income 5.97 38.66 49.81 106.15 15.35 Total 4,689.20 4,570.12 6,694.06 4,368.78 4,919.15 EXPENSES Purchases and materials consumed 3,127.29 3,704.54 7,815.33 3,366.01 2,739.38 Manufacturing & other expenses 510.43 552.39 982.38 496.83 425.50 Changes in inventories of fi nished 250.91 432.75 (2,075.88) (57.97) 888.47 goods and work-in-progress Total 3,888.63 4,689.68 6,721.83 3,804.87 4,053.35 Profi t / (Loss) before Depreciation, 800.57 (119.56) (27.77) 563.91 865.80 Interest & Tax (PBDIT) Finance cost (net) 690.87 741.55 948.57 536.41 515.95 Depreciation and amortisation expense 223.98 239.94 531.72 348.82 330.91 914.85 981.49 1,480.29 885.23 846.86 Profi t / (Loss) before exceptional (114.28) (1,101.05) (1,508.06) (321.32) 18.94 items and tax Exceptional items - (3.83) - - - Profi t / (Loss) before tax (PBT) (114.28) (1,097.22) (1,508.06) (321.32) 18.94 Tax expenses - - 25.06 (86.75) 6.94 Profi t / (Loss) after tax (PAT) (114.28) (1,097.22) (1,533.12) (234.57) 12.00 Dividend (%) - - - 10% 40% * Financial Year 2012-14 comprises a period of 18 months from October 01, 2012 to March 31, 2014. ** The fi gures of Financial Year 2011-12 include the effect of amalgamation of Bajaj Eco-Tec Products Ltd. (as per scheme) w.e.f. 01.04.2012. Board of Directors Kushagra Bajaj Statutory Auditors Chairman & Managing Director (Promoter) Chaturvedi & Shah Chartered Accountants M. L. Apte Non-Executive Director (Independent) Cost Auditors B.J.D. Nanabhoy & Co. R. V. Ruia Cost Accountants Non-Executive Director (Independent) Secretarial Auditor D. K. Shukla Anant B Khamankar & Co. Non-Executive Director (Independent) Company Secretaries Alok Krishna Agarwal Non-Executive Director (Independent) Bankers Allahabad Bank Vipulkumar S. Modi Bank of Baroda Bank of India Non-Executive Director (Independent) Bank of Maharashtra (w.e.f. 07-01-2016) Central Bank of India Corporation Bank Ashok Mukand Canara Bank Nominee Director (SBI) IDBI Bank Limited (w.e.f. 14-09-2015) Indian Overseas Bank Oriental Bank of Commerce Binod Kumar Punjab National Bank Nominee Director (PNB) State Bank of India (w.e.f. 07-01-2016) State Bank of Patiala State Bank of Hyderabad Ashok Kumar Gupta UCO Bank Director (Group Operations) Kiran Anuj Registered Office Golagokarannath, Lakhimpur-Kheri, Director (Administration) (up to 19-06-2016) District Kheri, Uttar Pradesh - 262 802 Tel.: +91-5876-233754/5/7/8, 233403 Fax: +91-5876-233401 Website: www.bajajhindusthan.com Company Secretary CIN: L15420UP1931PLC065243 Pradeep Parakh Group President (GRC) & Company Secretary Registrar & Transfer Agent Link Intime India Private Limited C-13 Pannalal Silk Mills Compound L.B.S. Marg, Bhandup West Chief Financial Offi cer Mumbai - 400 078 Ved Prakash Agrawal Tel.: +91-22-2596 3838 Fax: +91-22-2594 6969 Chief Financial Officer E-mail: [email protected] Contents Directors’ Report 14 Corporate Governance Report 40 Shareholder Information 52 Auditors’ Certifi cate on Corporate Governance 59 Management Discussion and Analysis Report 60 CEO/CFO Certifi cation 74 Independent Auditors’ Report 75 Balance Sheet and Statement of Profi t and Loss 80 Cash Flow Statement 82 Notes forming part of Financial Statements 83 Auditors’ Report on Consolidated Financial Statements 104 Consolidated Balance Sheet and Statement of Profi t and Loss 108 Consolidated Cash Flow Statement 110 Notes forming part of the Consolidated Financial Statements 111 14 Directors’ Report Your Directors have pleasure in presenting their Eighty Fourth annual report and the audited fi nancial statements for the year ended March 31, 2016. Financial highlights The summarised fi nancial results of the Company for the year ended March 31, 2016 are presented below: (C Crore) Year ended Year ended March 31, 2016 March 31, 2015 Sales and other income 4,689.20 4,570.12 Profi t/(Loss) before depreciation, interest and tax 800.57 (115.73) Depreciation and amortisation 223.98 239.94 Profi t/(Loss) after depreciation but before interest and tax 576.59 (355.67) Finance costs (Net) 690.87 741.55 Profi t/(Loss) before tax (114.28) (1,097.22) Provision for taxation (Net) - - Profi t/(Loss) after tax (114.28) (1,097.22) Opening balance b/f (2,645.97) (1,533.31) Disposable surplus after adjustments (2,760.25) (2,630.53) Transfer to reserve for molasses storage tank 0.31 0.28 Carrying value of fi xed assets adjusted - 15.16 Balance carried to balance sheet (2,760.56) (2,645.97) On a standalone basis, the Company achieved a turnover (including other income) of C 4,689.20 crore for the year ended March 31, 2016 as compared to C 4,570.12 crore in the previous year. The loss after tax is C 114.28 crore as compared to the loss of C 1,097.22 crore in the previous year. On a consolidated basis, the turnover including other income is C 4,696.57 crore as compared to C 4,574.05 crore in the previous year. The loss after tax and minority interest is C 206.59 crore as against loss of C 1,192.45 crore in the previous year. Dividend In view of loss incurred during the year under review, your Directors do not recommend any dividend for the current Financial Year. (Previous year - Nil) Operations The Company continues to be the leading 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 449 MW. During the year, the operations at all the sugar, distillery and co-generation plants were satisfactory. Sugar During the year ended March 31, 2016, the Company crushed 10.922 MMT of sugarcane. The average recovery of sugar from sugarcane was at 10.32% as against 9.38% in the previous year. During the year, the Company produced 11,36,070 MT sugar and 5,33,219 MT molasses. During the year, the Company sold 12,96,466 MT of sugar and 1,17,968 MT of molasses as against 12,39,186 MT of sugar and 33,684 MT of molasses during the previous year.