Dhampur Sugar Mills Limited

241, Okhla Industrial Estate, Phase – III,

New Delhi – 110 020, India
Tel: +91-11-3065 9400. Fax: +91-11-26935697
Email: investordesk@dhampur.com
Capitalising!
The story of how Dhampur Sugar Mills expects
www.dhampur.com to capitalise on the imminent industry rebound

15
Dhampur Sugar Mills Limited | Annual Report 2015-16
 After a prolonged downturn, the
Indian sugar industry posted its
most vigorous Corporate
revival in 2015-16. Information
Marked by enhanced sugarAuditors
Board of Directors
Statutory Auditors
Shri V. K. Goel, Chairman
recoveries, robust offtake and
Forward-looking statement
Statements in this report that describe the Shri A. K. Goel, Vice Chairman Mittal Gupta & Company

improved realisations (in theBranch lastAuditors

Company’s objectives, projections, estimates, Chartered Accountants, Kanpur
expectations or predictions of the future may be Shri Gaurav Goel, Managing Director
‘forward-looking statements’ within the meaning of Shri Gautam Goel, Managing Director
the applicable securities laws and regulations. The
Company cautions that such statements involve
risks and uncertainty and that actual results could
quarter), paired with healthy
Shri Sandeep Kumar Sharma, Whole time Director M/s S. S. Kothari Mehta & Company,
Chartered Accountants, New Delhi
differ materially from those expressed or implied.
Readers are requested caution while placing undue ethanol sales volume and Internal Auditors
Shri A. K. Gupta, Independent Director
Shri M. P. Mehrotra, Independent Director

realisations.
reliance on these statements as many factors could M/s D. C. Chhajed & Associates,
cause differences in the assumptions and the actual Shri Priya Brat, Independent Director
results. Accordingly, this document is subject to Chartered Accountants, New Delhi
Shri Harish Saluja, Independent Director
the disclaimer and qualified in its entirety by the
assumptions, qualifications and risk factors referred
to in the management discussion and analysis Dhampur Sugar Mills Limited Cost Auditors
Shri Rahul Bedi, Independent Director
Smt. Nandita Chaturvedi,
Shri S. R. Kapur, Cost Auditors,

reported one of the sharpestSecretarial Auditors Khatauli (Muzaffarnagar)

section part of the Dhampur Sugar Mills Limited
Annual Report, 2015-16. Independent Director

financial turnarounds.
Shri D. L. Mittal, Nominee Director,
– Punjab National Bank GSK & Associates, Company Secretaries, Kanpur

Bankers
Contents From a net lossCompany
Executive of B54.16
President Finance crore
&
Secretary
Punjab National Bank

02 Corporate identity
in 2014-15 to a net profit (before Shri Arhant Jain
Bank of Baroda
Central Bank of India

04 Dhampur’s progress report

tax) of B31.39
Registrar andcrore in 2015-16.
Share Transfer Agent
ICICI Bank Limited
IFCI Limited
M/s Alankit Assignments Limited
06 Manufacturing facilities
From being the last man
Alankit House, 4E/2 Jhandewalan Extension,
Prathma Bank
UP Co-operative & District Co-operative Banks
14 Milestones

16 Managing directors review

standing during the downtrend New Delhi – 110055

20 Performance highlights to among the first to rebound

22 Divisional review following the office
Registered revival. Corporate office Branch Office
25 Management discussion and analysis Dhampur Sugar Mills Limited 241, Okhla Industrial Estate, 1/125, Vijay Khand
Dhampur (N.R.) Phase – III Gomti Nagar,
27 Finance review District Bijnor – 246761 (UP) New Delhi – 110020 Lucknow – 226010
29 Corporate social responsibility at Dhampur

30 Risk management Works

Dhampur, District Bijnor (UP) • Asmoli, District Sambhal (UP) • Mansurpur, District Muzaffarnagar (UP)
32 Board’s report
Rajpura, District Sambhal (UP) • Meerganj, District Bareilly (UP)
54 Report on corporate governance

66 Auditor’s report

70 Consolidated balance sheet

71 Consolidated profit and loss statement

72 Consolidated cash flow statement A PRODUCT

73 Notes to consolidated financial statements info@trisyscom.com

After a prolonged downturn, the
Indian sugar industry posted its
most vigorous revival in 2015-16.
Marked by enhanced sugar
recoveries, robust offtake and
improved realisations (in the last
quarter), paired with healthy
ethanol sales volume and
realisations.
Dhampur Sugar Mills Limited
reported one of the sharpest
financial turnarounds.
From a net loss of B54.16 crore
in 2014-15 to a net profit (before
tax) of B31.39 crore in 2015-16.
From being the last man
standing during the downtrend
to among the first to rebound
following the revival.
This is Dhampur Sugar Mills Limited.

Cumulative sugar manufacturing capacity

TCD
Cumulative ethanol production capacity per day

litres
Installed power generation capacity

megawatts

2 Dhampur Sugar Mills Limited

Dhampur Sugar is...
Ÿ One of India’s most reputed sugarcane processing firms.
Ÿ The first in India to manufacture sulphur-less refined sugar
Ÿ Operating in three segments – sugar, power generation and distillery
Ÿ Five manufacturing facilities in Uttar Pradesh (Dhampur, Asmoli, Mansurpur, Rajpura and Meerganj)
Ÿ A formidable presence in ancillary sectors like renewable energy, ethanol, alcohol, extra neutral alcohol, alcohol-
based chemicals and biofertilisers

FINANCIAL STATEMENTS
Portfolio

Sugar Power Chemicals Biofertilisers

Ÿ Refined sugar Ÿ Power Generation Ÿ Ethanol Ÿ Bio-compost
Ÿ White sugar Ÿ Extra neutral alcohol Ÿ Liquid biofertilisers
Ÿ Retail sugar Ÿ Ethyl acetate

MANAGEMENT REPORTS
Mission
Vision To be a leading agro-based
To be a responsible corporate company and to manufacture
and promote agro and other
citizen wherein we make green products and also
maximise the renewable
a positive contribution to

CORPORATE OVERVIEW
energy potential of agricultural
commodities.
our environment and work
for the benefit of all our Background
Founded by Lala Ram Narain in
stakeholders – farmers, 1933 with a crushing capacity
of 300 tonnes of cane per day,
employees, shareholders and the Dhampur mill has emerged
everybody else involved with as one of India’s leading
integrated sugarcane processing
the organisation. complexes comprising large
sugar manufacturing operations
as well as one of India’s largest
power generation and ethanol
manufacturing capacities.

Annual
Report 201516 3
 4
2011-12 46.95
2012-13 57.49
2013-14 53.75

(crore units)

Dhampur Sugar Mills Limited

2014-15 57.06

Power generated
2015-16 66.02

2011-12 297.44 2011-12 37.54

2012-13 381.87 2012-13 45.11

(lac litres)
2013-14 612.89 2013-14
(lac tonnes)

40.62
2014-15 371.94 2014-15 45.83
2015-16 756.04 2015-16 48.31
Sugarcane crushed

Ethanol/RS/ENA produced
2011-12 1,599.60 2011-12 3.47
2012-13 1,540.26 2012-13 4.17

(B crore)
2013-14 1,903.75 2013-14
(lac tonnes)

3.75
2014-15 1,863.52 2014-15 4.36
Sugar produced

2015-16 2,349.73 2015-16 5.09

Income from operations
Dhampur’s progress report
 2011-12 45.13 2011-12 207.66
2012-13 39.25 2012-13 228.68

(B crore)
2013-14 -83.94 2013-14 134.15
2014-15 -54.16 2014-15 150.73
EBITDA (B crore)
2015-16 31.39 2015-16 245.18

Profit (Loss) before tax

2011-12 88.36 2011-12 112.79
2012-13 84.89 2012-13 115.99
2013-14 73.07 2013-14 -8.06
2014-15 69.02 2014-15 -0.53
86.53
Cash profit (B crore)

2015-16 115.53 2015-16

Book value per share (B)

2011-12 399.72
2012-13 467.90
2013-14 393.11
2014-15 397.03
2015-16 521.71
Gross profit (B crore)

Report
Annual
201516
5
CORPORATE OVERVIEW MANAGEMENT REPORTS FINANCIAL STATEMENTS
Manufacturing
facilities
DHAMPUR, BIJNOR DISTRICT, UTTAR PRADESH

CANE CRUSHING

MT per day

POWER GENERATION

megawatts
ASMOLI, SAMBHAL DISTRICT, UTTAR PRADESH
DISTILLERY CANE CRUSHING

MT per day
litres per day
POWER GENERATION
BIOFERTILISER

megawatts
tonnes per annum

DISTILLERY

Quick facts
Ÿ Dhampur was the first company in India to install a 105
kilogram per square centimetre boiler and turbine in 2006- litres per day
07, making it among the most efficient power cogeneration
companies in the world BIOFERTILISER
Ÿ Dhampur’s 65-megawatt cogeneration capacity is the
largest across any single unit in India

tonnes per annum

Quick facts
Ÿ Asmoli employs the DRP (Defco Remelt Phosphotation)
process with ion exchange to produce refined sugar
Ÿ The other distillery products comprise ethanol, extra neutral
alcohol and rectified spirit. Biogas produced is consumed
in-house

6 Dhampur Sugar Mills Limited

 RAJPURA, SAMBHAL DISTRICT, UTTAR PRADESH

CANE CRUSHING

MT per day

POWER GENERATION

MANSURPUR, MUZAFFARNAGAR DISTRICT,

UTTAR PRADESH
megawatts
CANE CRUSHING

FINANCIAL STATEMENTS
LIQUID BIOFERTILISER

MT per day
litres per day
POWER GENERATION

Quick facts
megawatts
Ÿ The unit is fully-automated and has one of the lowest

MANAGEMENT REPORTS
steam consumption ratios in India
Ÿ The intensive cane development programme provides
Quick facts farmers with the latest seeds, high sucrose sugarcane
Ÿ Employs the DRP (Defco Remelt Phosphotation) process varieties and subsidised pesticides
with ion exchange to produce refined sugar, which is sold in
50 kilogram bulk packs as well as 1 kilogram and 5 kilogram
small packs (brand DHAMpure)
Ÿ The unit’s bagasse-based cogeneration plant generates MEERGANJ, BAREILLY DISTRICT, UTTAR PRADESH
power for captive consumption and merchant sale

CORPORATE OVERVIEW
CANE CRUSHING

MT per day

POWER GENERATION

megawatts

Quick facts
Ÿ The unit was acquired from JK Sugar Limited and merged
with Dhampur Sugar Mills in 2013
Ÿ The unit generates green power which has enhanced self-
sufficiency

Annual
Report 201516 7
The long-
awaited
resurgence in the
sugar industry
has begun.
After a
protracted
downturn, things
have finally
started to look
up.
8 Dhampur Sugar Mills Limited
Gamechanger 1 Gamechanger 3 Gamechanger 5
The Central and State The Central Government is The Indian Government is
Governments are aware of the providing industry players providing soft loans to millers
challenges faced by the Indian with excise duty exemptions at attractive interest rate
sugarcane growers, mills and and incentives on products subvention schemes (like
consumers. They are more (especially ethanol). The TUFS in the textiles sector).

FINANCIAL STATEMENTS
transparent about discussing Commission for Agricultural Addressing working capital
issues that have plagued the Costs and Prices is also needs, enabling millers to clear
sector for long and tackling providing farmers with cane arrears and encouraging farmers
them head-on. subsidies (credited directly to to plant more cane – a win-win
their bank accounts), helping scenario.
mills bridge the difference
between costs and prices.
Gamechanger 2 Gamechanger 6
Gamechanger 4

MANAGEMENT REPORTS
The Ministry-level debates and Lower production in key sugar
discussions have kickstarted growing regions (Brazil, Thailand
decisive initiatives that will The Central Government and Europe and back home in
structurally alter industry supported the ethanol blending Maharashtra and Karnataka)
prospects. The wheels of programme by fixing a price have strengthened sugar prices.
change have already begun to that is competitive for sugar Indian sugar production is
turn following the government’s mills and oil companies. For the projected to decline from 28.30
decision to keep the state first time in three years, India is million tonnes in SS 2014-15 to
advised price at B280 per set to achieve its targeted 5% 25.10 million tonnes in SS 2015-
quintal for the third consecutive ethanol blending in 2015‑16 16 (ISMA estimates) with stocks

CORPORATE OVERVIEW
year. The C. Rangarajan Report and has set sights on the helping bridge the average
has emerged as a bluebook ambitious 10% mark. Indian sugar consumption of
of sorts and its recommended about 25 million tonnes per
formulae are being studied for annum (growing at 3-4% per
progressive implementation. annum). Indian sugar exports of
1.94 million tonnes in FY2015‑16
(ISMA estimate) could also
reduce carry forward stocks and
sustain modest realisations.

Annual
Report 201516 9
 The writing is
on the wall.

The
Cane arrears are on the decline Sugar prices are upward bound
(as on 15th March) (as on 31st March)
Arrears
20000 (B crore) Sugar M Price (B qtl)

numbers
18,435 18,250
3,400

15000
14,339

speak
12,306

10000
8,918

louder than 5000

4,528 2,713

words. 0
Oct 1, 2015 Apr 18, 2016
2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

Source: Directorate of Sugar, ISMA Source: Bloomberg

10 Dhampur Sugar Mills Limited

Sugar prices are moving upward.
Cane arrears are on the decline.

FINANCIAL STATEMENTS
Ethanol prices are rising.
Power export realisations have increased.

MANAGEMENT REPORTS
CORPORATE OVERVIEW
Sugar output is declining Sugar stocks are declining Ethanol prices are rising

Sugar production (million tonnes) Sugar stocks (million tonnes) Ethanol prices (B per litre)

41.64
28.30

(estimated)

37.98
26.34

36.27
25.10
24.80

9.1
24.35

24.30

8.9
7.2
7.0 27.00 27.00 27.00
6.7 (Estimated)
5.8 8,918
2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

Source: Directorate of Sugar, ISMA, Company Source: Directorate of Sugar, ISMA, Company

Annual
Report 201516 11
 A sectoral revival
is on the cards.
And Dhampur
Sugar Mills
is poised to
capitalise.

12 Dhampur Sugar Mills Limited

Reason for optimism#1 Reason for optimism#2 Reason for optimism#3
The average sugar prices of B3,300 The Minister of State for Petroleum Dhampur possesses the highest ethanol-to-
– 3,400 per quintal (March – April & Natural Gas announced that sugar capacity ratio in India on account of
2016) will help wipe out our losses the requirement of ethanol for the integrated nature of our asset base. With
and reduce its profitability drag 5% blending with petrol was 133 ethanol realisations growing by 7% over
on our allied businesses. This crore litres and for 10% blending the past two years to B42 per litre (2015-16
was evident in the last quarter of 266 crore litre for the sugar year average) along with enhanced offtake by
2015-16, when the Company’s loss 2015-16. Against the tender floated, OMCs (as per a directive of the Ministry of
reduced to 2.82 crore, against a offers amounting to 135 crore litres Petroleum & Natural Gas), we expect our
loss of B46.35 crore during the of ethanol were received by oil ethanol business to report strong revenue

FINANCIAL STATEMENTS
corresponding quarter in 2014-15. marketing companies. Dhampur was growth and double-digit EBITDA margins.
provided a supply order of 9.53 crore This will be further bolstered by a higher net
litres, which is the highest among B45 per litre on account of Cenvat credit on
sugar companies in India. Dhampur SS 2015-16 molasses to be consumed for
will account for 19% of the entire production of ethanol. Net impact on per
Uttar Pradesh consignment. Going litre will be around B3.50.
forward, we expect our distillery unit
to make a sizeable contribution to
our profits.

MANAGEMENT REPORTS
Reason for optimism#4 Reason for optimism#5 Reason for optimism#6
Despite the amount of cane We operationalised a slop boiler in We installed a bagasse dryer in the
crushed declining by 13% in Uttar the Dhampur unit that concentrates Asmoli unit during the year under
Pradesh in 2015-16 season, the distillery waste and is fired with review. This has brought us even
concurrent drop at Dhampur bagasse. This will extend distillery closer to a 100%-coverage across our
was only 7%. This was due to the operations by 60 days to 330 days a units (except Meergunj) and reduced

CORPORATE OVERVIEW
extensive cane development year (starting FY2015-16), enhancing the moisture content by 8-10 bps
activities that were undertaken ethanol output, strengthening our (about 40-42% of the dry bagasse
during the year under review. We environmental compliance, boosting weight) and in turn fuel consumption
expect our cane development boiler efficiency by reducing fuel (bagasse). Moreover, high-temperature
activities to enhance cane acreage consumption (steam and bagasse) flue gases from the boilers are used
in our command area substantially and reducing dependence on to dry the bagasse, which ensures a
during the current fiscal. external bagasse. We expect to install more effective utilisation of the steam
our second slop boiler in Asmoli generated while lowering costs.
during 2016.

Reason for optimism#7

We will sustain our focus on operating power assets at a high capacity utilisation (209 megawatts). This will not only help us
feed our growing internal energy requirements but also trade a larger share (PPAs allow a tariff increase for FY2016-17). This
will strengthen the EBIT generated from our power business and account for a larger slice of the revenue pie.

Annual
Report 201516 13
 This is how we have
1933
Laid the foundation of Dhampur Sugar
Mills Limited with an initial capacity of
300 tonnes of cane crushed per day

1987 Leased a sick unit at Established a chemical unit at

1991
Mansurpur (1,800 tonnes Dhampur to process molasses
of cane crushed per day) into alcohol and other chemicals
(7,600 tonnes per annum)

1993 Increased crushing capacity Installed a new sugar unit at

1994
of the Dhampur unit to 5,000 Asmoli with a crushing capacity of
tonnes of cane crushed per day 2,500 tonnes of cane per day

1995 Increased capacity of the Increased crushing capacity at

1996
Dhampur unit to 9,000 tonnes the Dhampur unit to 10,000
of cane crushed per day tonnes of cane per day

1997 Improved capacity of the Enhanced crushing capacity

1999
chemical plant at Dhampur of the Asmoli unit to 5,000
to 16,500 tonnes per annum tonnes of cane per day

14
grown over the years
Ÿ Improved capacity of the Dhampur unit to 12,000
tonnes of cane crushed per day and the Asmoli unit
to 6,000 tonnes of cane crushed per day 2006
Ÿ Merged Mansurpur Sugar Mills Limited with
Dhampur Sugar Mills Limited

2007 Ÿ Established the greenfield Rajpura unit with a

Expanded sugar capacity at the Dhampur
2008
crushing capacity of 7,500 tonnes of cane per day
Ÿ Enhanced power generation capacity at the unit to 15,000 tonnes of cane per day , at
Asmoli to 9,000 tonnes of cane per day and at

FINANCIAL STATEMENTS
Dhampur unit, the Asmoli unit and Mansurpur unit
to 65 megawatts, 40 megawatts and 28 megawatts, Mansurpur to 8,000 tonnes of cane per day
respectively
Ÿ Commissioned a distillery at the Asmoli unit with
a capacity of 100,000 litres per day through a joint
venture with Falck Renewables SpA

Enhanced power generation

2011
2010 Converted the Asmoli capacity at the Mansurpur
distillery into a wholly- unit to 33 megawatts

MANAGEMENT REPORTS
owned subsidiary

2012 Merged the Asmoli distillery with Ÿ JK Sugar Mills Limited was merged with
2013
Dhampur Sugar Mills Limited Dhampur Sugar Mills following an order of
following an order from the the Hon’ble Allahabad High Court

CORPORATE OVERVIEW
Hon’ble Allahabad High Court Ÿ Entered the IMFL segment

2014 Ÿ Enhanced distillery capacity to Ÿ Increased ethanol capacity at

2015
300,000 litres per day Dhampur unit from 100,000 litres
Ÿ Commissioned a 35.5-megawatt per day to 200,000 litres per day
power plant in the Rajpura unit Ÿ Established a slop boiler for
Ÿ Started manufacturing and enabling distillery operations
marketing liquors like whiskey, rum, during the rainy season
vodka and gin under the brand
names of State House and PM to AM
Ÿ Installed a 4-megawatt bio genset
at Asmoli

Annual
Report 201516 15
An overview of the rebounded to a year-end price of B34
per kilo in Uttar Pradesh, brightening
prospects for most sugar manufacturers.

sectoral revival and Dhampur was no exception. The

Company showed stable cash flows in
2015-16, heralding the arrival of better

Dhampur’s performance days. Case in point: we had 33 lac quintals

of closing stock on our books as on 31st

in 2015-16
March 2016, which will be marketed
in 2016-17 at considerably higher
realisations.
We believe that this sharp increase will
raise the level of water across the sector,
Dear stakeholders, enabling some of the weaker mills to
break even and the stronger mills to
It would be reasonable to expect that a sector as post handsome profits. We can safely
critical to the country’s agricultural prosperity as surmise that Dhampur figures in the latter
group. The increase in sugar production
the sugar industry would be supported by the from 46.63 lac quintals in SS 2014-15 to
Central and State Governments. 48.13 lac quintals in SS 2015-16 came
about despite a statewide 4% drop in
The reality is that over the last number turned around because persistently high production. We could also turn the higher
of years the Indian sugar industry has cane prices and enhanced cane planting production to our advantage with the
been battling a protracted downturn. resulted in such extensive cane arrears enhanced recovery that we generated as
This was the result of unrealistically high that farmers were compelled to plant result of a superior varietal mix, enhanced
cane prices on the one hand, which less cane during 2015-16. Farmers also corporate productivity and favourable
induced additional cane planting, encountered challenging meteorological weather conditions.
triggered a sugar surplus, weakened conditions in Uttar Pradesh, Maharashtra
And this is where things get interesting.
sugar realisations and eroded industry and Karnataka (78% of India’s sugar
Our aggregate recovery of 10.66% during
profitability. production cumulatively) leading to a
SS 2015-16 was 1.07 bps higher than
3.20 million ton decline in sugar output
The fact that the downturn was among in the previous season, which alone
during SS 2015-16, 11% lower than in the
the longest that we have ever seen was contributed an incremental output of 0.48
previous sugar season.
not just a result of the demand-supply lac tonnes. This highlights the point that
dynamics; it was a reflection of an inability Given the fact that India’s sugar one wishes to make – that perhaps the
to moderate cane prices to a point consumption is expected to increase gains accrued from superior cane varieties
where they would still be remunerative by 3-4 % during SY2016-17, this could and farsighted operating practices will
for farmers and also affordable for be the first time in five years when the sustain across the foreseeable future.
consumers. country would consume the entire sugar
produced during season 2015-16. That Operational performance
We are relieved to state that this extended
the industry expects yet another year
downtrend is finally over. Our optimism stems from the fact that
of decline in output during 2016-17 on
during FY2015-16 our loss-making sugar
There are a number of reasons for this, account of below par precipitation in
business turned around, our ethanol
some for which we need to thank the Maharashtra and Karnataka could lead to
business increased profits and our
climate for, some for which we need to the second successive year of inventory
power generation business continued
thank the Central and State Governments decline.
to represent the bedrock of long-term
and some for which we sugar
Things have already started to take a revenue visibility. Best of all, we expect
manufacturers need to take the credit,
turn for the better. India’s domestic sugar this scenario to sustain across all three
albeit modestly.
prices reported their strongest recovery businesses across the foreseeable future.
Primarily, the country’s sugar industry in four years; ex-factory realisations

16 Dhampur Sugar Mills Limited

Sugar: Dhampur produced 50.88 lac We leveraged our 300,000 litres per day prevailing levels based on last year’s
qntl of sugar, which was 17% higher distillery capacity (Dhampur and Asmoli), production. The only glitch in an
than the previous year. We are absolutely to capitalise on the robust demand otherwise perfect picture is cane pricing
delighted to state that our average sugar emanating from the market place. for the 2016-17 sugar season.
recovery increased from 9.51% in 2014-15 Revenues from the chemicals business
to 9.53% in 2015-16 on a financial year reached a high of B413.02 crore; a 30% Our blueprint for growth
basis following a rare convergence – cane EBITDA from this segment increased
Our focus at Dhampur will be to generate
varietal improvement, better weather and to B73.40 crore during the current year
more cane than ever, crush record
corporate productivity. Total revenues against B54.89 crore during the previous
volumes and maintain the highest levels
from operations stood at B1,814.65 crore, year, a 34% increase.
of efficiency.
which is a growth of 13% from 2014‑15.

FINANCIAL STATEMENTS
We closed the financial year under Sectoral outlook We expect our distillery to emerge as a
review with a carry-forward stock of 33 money spinner. We would continue to
We are optimistic of our sectoral and
lac quintals, which should translate into use molasses that provides a higher yield,
individual prospects for some valid
a sizeable surplus in 2016-17. Besides, substantially increasing our generating
reasons.
renewable energy credits fetched B17.90 capacity.
crore during the year under review. We expect cane output to decline for
We would be substantially benefited by
the second successive year in 2016‑17.
Power: We leveraged our 209-megawatt the excise duty exemption on ethanol,
Much of this decline will come from
power plant (125 megawatts of saleable gaining B5 for every litre of ethanol we
Maharashtra and Karnataka and
capacity) to generate 66.02 crore units of sell to OMCs.

MANAGEMENT REPORTS
marginally from Uttar Pradesh. The
power in 2015-16, which was 16% higher We expect to reinforce power generation
national decline could go a long way in
than in the previous year. Nearly 35% of operations and reap the benefits of
correcting the longstanding skew in the
the power generated was consumed increased tariffs.
national sugar scenario.
within, moderating production costs. We
registered a 26% increase in revenues to Even according to the most conservative
Gaurav Goel and Gautam Goel,
earn B478.88 crore compared to B380.41 estimates, sugar realisations will remain
Managing Directors,
crore in the previous year. Average steady. Subsequently, we expect to
Dhampur Sugar Mills Limited
tariff stood at B5.05 per unit in 2015-16 generate a reasonable surplus around
compared with B4.37 per unit in the

CORPORATE OVERVIEW
previous year. The result was that the
EBITDA of power generation business
increased to B202.95 crore during the
year against B173.88 crore during the
previous year, an increase of 17%.
Distillery: Following an excise duty
exemption on ethanol produced from
molasses of SS 2015-16 and the volume
and price improvements for rectified
spirit, ENA and ethanol allowed Dhampur
to cement its reputation as one of the key
producers of ethanol.
We registered a Average tariff stood at
During the year 2015-16, we majorly used
molasses produced during SS 2014-15
for manufacturing ethanol and could not
avail the benefit of Cenvat credit, which
will be available to the Company in
2016‑17. The net benefit from this will be
increase in revenues to earn in B per unit
B3.5 per litre on ethanol production. B2349.73 crore in 2015-16

Annual
Report 201516 17
This is how Dhampur
has selected to
manage its business
At Dhampur, our business model ensures that we remain
resilient in the face of sectoral cyclicality.
This means that in the most challenging market
conditions, we ensure adequate liquidity through our
non-sugar businesses.
This means that when sugar markets revive, we are
among the first companies to post a robust surplus.
This means that when the industry is robust, we
generate profit margins higher than most of our peers.

Multi-business Company
Dhampur is essentially three businesses (sugar, power
generation and distillery) in one, which makes it
possible for the Company to offset the weakness in
one business and report a consolidated surplus. Over
the years, we believe that this diversified identity
has been the principal factor responsible for our
endurance and growth.

Diversified identity has been the

principal factor responsible for
our endurance and growth.

18 Dhampur Sugar Mills Limited

 Progressive integration with farmers to enhance cane planting across
Dhampur was among the first sugar command areas. Over the years, we have
companies in India to recognise the limitations of enhanced cane supply through a singular focus
focusing entirely on sugar. So, even though sugar on enhancing farmer liquidity. This focus has been
continued to remain the Company’s mainstay, reinforced by any-quantity cane procurement
we invested in the downstream processing of assurances and steadily escalating crushing
sugar byproducts well before this became the capacities, making it possible to evacuate cane
norm. This warranted a prudent use of byproducts quicker. Moreover, we have advised farmers in
generated by one business as raw materials for using better seeds and nutrients, and inculcated
another. Allowing us to moderate resource costs, scientific farm practices and calendar-based
strengthen inventory management and minimise management pertaining to cane crushing,
management.

FINANCIAL STATEMENTS
logistic costs.

Balanced approach Revenue security

Dhampur invested in its non-sugar business At Dhampur, we have built two robust
in a scientific manner, in the sense that the non-sugar businesses. While one (ethanol) is
majority of our requirements would be met from market-dependent, the other (power generation)
within as opposed to an excessive investment is market-protected. A long-term power purchase
in one business. That could have necessitated a agreement with Uttar Pradesh Power Corporation
quantum of resource procurement, nullifying the Limited means that we will continue to be
advantage of an integrated framework. We chose incentivised by periodic tariff escalations and

MANAGEMENT REPORTS
to right-size the business thereby moderating remain protected by a natural tax hedge. The result
investments and enhancing profitability. is that we did not just increase the proportion
of our non-sugar revenues; we increased the
proportion of power generation revenues as well.
Multi-cycle investments
We have invested in capacity addition
Ethanol preference
across market cycles, leveraging the strength
of our Balance Sheet to borrow when markets At Dhampur, even as we possess a distillery
have been down and prudently utilising accruals that empowers us to manufacture a range
of downstream chemicals, we have largely focused

CORPORATE OVERVIEW
during periods of sectoral rebound. The benefits
of this approach have been extensive: we have on ethanol manufacture. This product enjoys
negotiated better with third parties, enjoyed governmental patronage, growing demand,
quicker delivery schedules and been more agile quick offtake and attractive remunerations. We
than our sectoral peers. believe that with the mandated ethanol blending
proportion all set to increase from 5% to 10%,
there would be yet another demand spike,
Inorganic growth benefiting us immensely.
We recognised the attractiveness of
inorganic opportunities to circumvent the
Branded sugar
time-consuming cycle related to greenfield
investments. This made it possible to build on We believe that with rising incomes and a
existing cane availability and capitalise on the growing preference for premium products,
terrain knowledge of the acquired Company. consumers who buy loose unpackaged sugar
Acquisitions made in the last two decades will gravitate towards branded and packaged
accounted for 28.57% of the Company’s aggregate alternatives. As the modern retail format becomes
cane crushing capacity. ubiquitous, consumers shall begin to make larger
online purchases. In line with this, we launched
Dhampure in 2000 and stand to make the most of
Cane competence this first-mover advantage.
Dhampur is not a sugar Company per
se; it is fundamentally a cane Company working

Annual
Report 201516 19
 This is how our
business model
has enriched our
competitiveness
and sustainability

20 Dhampur Sugar Mills Limited

Dhampur is not just a sugar Company – a claim vindicated by the steady increase in
revenues derived from the non-sugar businesses.

Non-sugar revenues (B crore)

2011-12 2012-13 2013-14 2014-15 2015-16

319.57 502.57 584.53 505.21 851.71

At Dhampur, an increasing proportion of the bottomline has been derived from

FINANCIAL STATEMENTS
non-sugar businesses, especially in the last few years of the downturn.

Corporate EBITDA derived from non-sugar revenues (B crore)

2011-12 2012-13 2013-14 2014-15 2015-16

152.80 185.55 191.26 223.66 266.89

MANAGEMENT REPORTS
The efficiency of Dhampur’s operations can be gauged from the fact that for every
tonne of cane crushed, the Company has been able to generate among the highest
throughputs in India’s sugar industry.
Throughput for every tonne of cane crushed, 2015-16

Sugar Power Alcohol Chemicals

105 kilograms 125 kilowatts 11.74 litres 2.87 kilograms

CORPORATE OVERVIEW
Dhampur has been a faithful friend to the farmer, enhancing incomes on the one
hand and securing core and downstream capacities on the other.

Cane purchases (lac quintal)

2011-12 2012-13 2013-14 2014-15 2015-16

376.75 452.20 407.26 458.58 483.96

Cane purchases (B crore)

2011-12 2012-13 2013-14 2014-15 2015-16

944.01 1,311.13 1,162.62 1,268.87 1,346.52

Annual
Report 201516 21
 DIVISIONAL REVIEW

Sugar
Revenues in 2015-16 (in B crore)
Dhampur is among the largest sugar manufacturing
companies in India by volume (crushing capacity
45,500 tonnes of cane per day), respected for qualitative
excellence. Its extension into branded packaging and use of
pioneering practices has allowed it to carve a niche for itself. Revenue growth in 2015-16
The Company draws cane from within a radius of around 30
kilometres in its command areas, possesses a white sugar
capacity of 2,850 tonnes per day and refined sugar capacity
of 1,700 tonnes per day.
EBITDA increase

Competencies Talking points, 2015-16

Ÿ High-quality cane development Ÿ The Company’s production increased by
activities that have not only resulted in 17% following an increase in the amount
a higher acreage but also a 1.02% y-o-y of cane crushed from 45.83 lac tonnes in
increase in yields 2014-15 to 48.31 lac tonnes in 2015-16. Overall EBITDA
Ÿ Strong relationships with a Ÿ Average sugar recovery increased from
190,000-strong farmer community 9.51% in 2014-15 to 10.53% on the back
of amenable weather and the use of
Ÿ Equipment integrated to maximise
sucrose-rich cane varieties.
production – reported a higher capacity
utilisation during the year under review Ÿ A 7.4% growth in the sales of The Company’s
Dhampure brand of value-added sugar production increased by
Ÿ An ample proportion of value-added
that commanded a 5% premium over
products in the overall mix
competing varieties on account of its
Ÿ Five strategically located factories purity
(30-kilometre radius) augmenting
Ÿ Earned B18 crore from REC sales
logistical efficiencies

Outlook
Ÿ Continue planting of high-yield varieties should result in average increase in cane
acreage in the command area during FY2016-17

22 Dhampur Sugar Mills Limited

DIVISIONAL REVIEW

Power

FINANCIAL STATEMENTS
Revenues in 2015-16 (in B crore)
Dhampur ventured into the power generation business in
2006-07 to ensure efficient use of its captively-generated
bagasse. Over the years, the Company has enhanced its
capacity to 209 megawatt in tranches, emerging as the one
of the largest in India and Uttar Pradesh. The Company’s Revenue growth in 2015-16
power generation capacity accounted for 40% of its captive
consumption while the rest was channelled for merchant

MANAGEMENT REPORTS
sale to the State Electricity Grid.

EBITDA increase

Competencies Ÿ Cogeneration revenues accounted for

Ÿ State-of-the-art power generating 15.50 % of the total revenues (15.44% in
assets that result in high PLFs 2014-15)

CORPORATE OVERVIEW
Ÿ Best-in-class boilers that can consume a Ÿ Average power tariffs increased by
wide mix of fuels around 12% from 20th January 2015 Overall EBITDA
the full impact of which became visible
during the fiscal under review
Talking points, 2015-16
Ÿ Increased revenues from B380.41 crore Ÿ The Company’s power segment
in 2014-15 to B478.88 crore provided an attractive earnings cushion
during the sectoral downtrend
Ÿ Higher bagasse availability sustained Average power tariffs
power sales during the off-season increased by around

Outlook
Ÿ Ensure 100% asset utilisation at the power plant

Annual
Report 201516 23
 DIVISIONAL REVIEW

Distillery
Revenues in 2015-16 (in B crore)
Dhampur possesses a distillery capacity of 300,000 litres
per day. The distillery operations have been progressively
automated to enhance operational efficiency on the one
hand and flexibility in the manufacture of different products
(ethanol, rectified spirit, extra neutral alcohol, among Revenue growth in 2015-16

others), on the other.

Over the last few years, there has been a significant change in the prospects of ethanol
manufacturers, incentivised by the Central Government’s decision to mandate the
blending of 5% ethanol with automotive fuel and empowering oil marketing companies
to buy directly from molasses-based ethanol producers. The result is that ethanol attracts EBITDA increase
ready buyers, garners lucrative realisations and guarantees timely receivables.

Competencies Ÿ The excise duty on ethanol derived

Ÿ High flexibility when it comes to from molasses was exempted in 2015-16,
Overall EBITDA
manufacturing rectified spirit, ENA and strengthening margins by B5 per litre
chemicals in line with market demand Ÿ Ethanol production increased by 313%
Ÿ One of the highest sugarcane crushed- and accounted for 93% of the distillery
to-distillery capacities on account of its product mix
integrated nature Ÿ Average realisations for the distillery
Ÿ Possesses India’s largest ethanol order business rose by 7.42%
book of 9.53 crore litres that provides Dhampur’s distillery
medium-term revenue visibility Outlook products portfolio
Ÿ Meet ethanol demand as per stipulated Ÿ Ethanol: 300,000 litres per day
Talking points, 2015-16 timelines
Ÿ Rectified spirit: 300,000 litres
Ÿ Established a new ethanol plant that Ÿ Focus on maximising production of per day
offered better conversion ratios as far as ethanol , thereby enhancing per unit Ÿ ENA: 150,000 litres per day
value-added products were concerned margins
Ÿ Special denatured spirit:
300,000 litres per day
Ÿ Ethyl acetate: 140 metric
tonnes per day

24 Dhampur Sugar Mills Limited

Management discussion
and analysis

FINANCIAL STATEMENTS
Indian economic overview and oil prices have emerged in recent largest consumer and second-largest
years, driven in part by the relationships producer of sugar.
India’s positive GDP growth indicates that between sugar as the primary ethanol
the economy is expanding as against China’s production is projected at 10.6
feedstock in Brazil, the dominant
the subdued economic growth in the million tonnes, down by 400,000 tonnes
producer and exporter of both sugar and
developed countries and other parts of on account of a decline in planted area
ethanol in the world.
Asia. One more reason for India doing due to high production costs. (Source:
well is that oil and commodity prices have Global sugar production for 2015-16 is usda.gov)
plummeted. Besides this, the country is forecast to go down by 2 million metric
The primary reason for the global sugar
largely a consumption-driven economy tonnes (raw value) to settle at 173 million
industry’s bullish outlook stems from

MANAGEMENT REPORTS
that is not too dependent on foreign tonnes with reductions in Brazil, India, the
a prospective increase in demand.
trade. Initiatives like ‘Make in India’, plans European Union, and Ukraine more than
Moreover, small changes in the import
to set up a dedicated freight corridor and offsetting the increase in productions
needs of multiple countries will also lead
developing a low-carbon economy by in Australia, Russia, and Turkey. Global
to a significant spike in demand for sugar.
laying a keen emphasis on generating consumption is projected to reach a
However, this high demand might be
renewable energy have brightened record 173 million tonnes in FY2015-16.
met with a shortage of 5.5 million metric
long-term prospects for the country’s tonnes in SY2016-17 as years of low prices
economy. Growth prospects have led sugar output to stagnate. This
The Indian economy has been riding high Brazil’s production is forecast to reduce shortfall is estimated to widen further to

CORPORATE OVERVIEW
since last year and in purchasing power by 950,000 tonnes to settle at 35 million 6.2 million tonnes in 2016-17. Tightness
parity terms has made its way among the tonnes as a higher percentage of in sugar supplies is already being felt in
top five countries in the world. All the sugarcane (forecast at 59%) is converted the market for refined sweeteners, where
gains that India earned have been utilised to ethanol. The higher demand in the its premium over the raw variety rose
in restoring macroeconomic stability. domestic market was a result of the to a five-month high of $117 a tonne in
The country’s GDP growth in 2015-16 increase in the mandated percentage of January 2016. (Source: Olam International)
is expected to be 7.6% as per the data ethanol blending in gasoline from 25 to This bullish trend in the global sugar
released by the Central Statistics Office 27% and the increase in federal and state markets will lead to a rise in the price of
increasing from 5.6% in FY13 to 6.6% in taxes for gasoline. sugar in India as well. This means that the
FY14 to 7.2% in FY15. world’s second-largest supplier will sell
United States production is forecast to go
up by nearly 150,000 tonnes from last year more in the domestic market and less
Sugar industry – global abroad. So, while expectations for Indian
to settle at 8 million tonnes. Consumption
overview is down slightly as imports declined by exports were bearish for the market six
Sugar is one of the most used 5% to 3.1 million tonnes and stocks grew months ago, the estimates are being
commodities in the world. Sugarcane, by 5% to 1.7 million tonnes. lowered. Indian sugar prices rallied more
besides the main source of sugar, is than 30% in the past five months on
India’s production is forecast to drop by expectations that the FY2016-17 output
generally regarded as one of the most
25.1 due to lower yields. Consumption will turn out be lower than what was
significant and efficient sources of
rose to 26.0 million tonnes while export initially forecast.
biomass for bio-fuel (ethanol) production.
volumes decreased by 0.49 million ton to
Strong linkages between world sugar 1.94 million tonnes. India is the world’s

Annual
Report 201516 25
 Industry analysis and trends levels significantly without requiring India will have a low output of sugar
corresponding increase in manpower. but the sufficient stock will ensure that
During the five years leading to 2015, the
demands are met.
global sugar manufacturing industry had
to contend with unstable production
Indian sugar industry at a On the consumption side, strong
and price levels. Adverse weather
glance domestic demand from soft drink
conditions and increasing diversion of manufacturers, confectionaries, hotels,
The Indian sugar industry has contributed bakeries and ice cream manufacturers will
stocks to ethanol production reduced
a lot to the rural economy of India. The support higher levels of offtake. India’s
sugar production, therefore inflating the
sector has by commercialising rural relatively strong economic growth, stable
price of the commodity. This benefited
resources for meeting the large domestic political situation, rising incomes, a young
the industry until 2012, when prices
demand of sugar and generating surplus population and changing consumer
crashed due to high global production
energy to meet the ever-increasing consumption patterns are envisaged to
and healthy stock-to-use ratio. Prices
energy needs of India. With an annual be the key drivers, encouraging higher
continued to decline throughout the
production capacity of over 30 million sugar consumption. The prices of sugar
period, thereby pushing revenues down,
metric tonnes, the Indian sugar industry is are likely to see some correction on
which resulted in minimal industry
the second largest producer in the world. expectations of a forecast of above-
growth. Till 2020, the industry is expected
It is also the second-largest agro-based normal monsoons in the country in
to prosper due to rising demand for
industry in the country (after cotton). The FY2016-17. However, strong domestic
renewable energy, growing global
sugar industry supports 50 million farmers demand will limit the extent of price
sugar consumption and favourable
and their families. The annual turnover of correction.
governmental policies.
the industry is estimated at B41,000 crore
and it pays about B2,500 crore per annum Thus the Indian sugar industry has
Industry investments turned around and has recovered the
to the exchequer.
The global sugar industry is labor long pending dues that were owed to
and capital-intensive. However, the
Outlook farmers. The mills have been able to pay
introduction of new technologies and According to ISMA, from the beginning of the farmers back due to the strong policy
the adoption of greater automation the current sugar season till 30th of April initiatives undertaken, which includes an
have reduced manual intervention. 2016, sugar mills have produced 11% increase in blending ethanol with petrol
This is particularly true in sugar refining, lower sugar. And even though most of that has saved the country from nearly
where, in the past decade, high-speed the mills have stopped crushing cane, 48 $300 million worth of oil imports.
production lines have dramatically are still continuing their crushing activity (Source: Care Ratings, KPMG, Economic
increased throughputs. This has allowed as compared to 97 that were operating Times, ISMA)
manufacturers to raise production last year. Due to this drop in production,
Internal control systems and
their adequacy

Sweet dose The Company has a robust internal

control system in place to review
performance, track operations and
gauge liquidity. The system also ensures
Policy initiatives like soft loans with Sector has gained from use of
that all transactions are duly reported
1-yr moratorium on interest have ethanol for blending in petrol
and all assets are properly safeguarded.
helped sugar cos Timely review of operations and the
recommendations of the auditors allow
the Company to make corrections
whenever and wherever necessary.
Sugar produced in mt Worth of cane industry
by domestic industry No of persons buys in B crore from
in a year employed in mn farmers every year

26 Dhampur Sugar Mills Limited

 FINANCIAL STATEMENTS
MANAGEMENT REPORTS
CORPORATE OVERVIEW
Financial review
Accounting policy
Dhampur Sugar Mills follows the accrual basis of accounting. Its accounts were prepared on the basis of accounting standards as per
Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2015.

Financial performance review, 2015-16

Particulars 2015-16 (H crore) 2014-15 (H crore) % Growth (rounded)

Income from Operations 2,349.73 1,863.52 26%
PBT 31.39 (54.16) 158%
PAT 25.88 (12.83) 302%
EPS (in H) 4.13 (2.54) 263%

Annual
Report 201516 27
 Profit & Loss statement EBITDA crore against B1,697.22 crore as on 31st
March 2015, a decrease of 4.8%. Current
l The Company’s operating revenue EBITDA rose from B150.73 crore in 2014- Ratio was 0.84 as on 31st March 2016
increased from B1843.21 crore in 15 to B245.18 crore in 2015-16. This was against 0.85 as on 31st March 2015
2014‑15 to B2325.04 crore in 2015- due to better realisations from the sugar owing to a decrease in current assets
16. This was mainly due to a marked segment. over current liabilities.
increase in production and profits of
l Inventories: Inventories (finished and
all the business segments. This also led Balance sheet
to an increase in the cash profit from semi-finished goods along with raw
l Net worth: The Company’s net worth materials) for 2015-16 increased. 70%
B‑0.53 crore in 2014-15 to B86.53 crore
was B710.69 crore as on 31st March from B1252.26 crore as on 31st March
in 2015-16.
2016, which is an increase of 67.7% 2015 to B1261.30 crore as on 31st March
l Total revenues from the sugar division compared to the previous year’s 2016.
stood at B1814.65 crore, power B423.71 crore as on 31st March 2015.
generation segment revenues were l Short-term loans and advances:
The increase was due to a rise in the
B478.88crore and distillery generated reserves and surplus. The short-term loans and advances
B413.02crore. decreased for 2015-16 and stood at
l Share capital: The share capital B36.92 crore compared to B39.51 crore
l Operating expenses for 2015-16 stood decreased marginally to B75.30 crore in 2014-15.
at B2022.75 crore as against B1644.51 as on 31st March 2016 as compared to
crore in 2014-15, the 23% increase l Current liabilities: Current liabilities
B75.96 crore as on 31st March 2015 due
mainly due to an increase in the to a redemption of preference shares in decreased 4.58% from B2008.01 crore as
amount of raw materials consumed the year under review. Equity capital of on 31st March 2015 to B1916.66 crore
and purchases of stock in trade. Raw the Company increased by B1.5 crore in as on 31st March 2016, mainly due to
material expenses went up by almost year under review. a decrease in trade payables. Trade
19% in 2015-16 compared to last year. payables decreased from B675.01 crore
l Reserves and surplus: The reserves and in 2014-15 to B471.43 crore in 2015-16,
l The cost of the Company’s employee surplus increased to B635.39 crore as on a decline of 30.1%, whereas the other
benefits increased from B76.19 crore 31st March 2016 from B346.51 crore as current liabilities increased by 17.80 %.
in 2014-15 to B84.38 crore in 2015-16, on 31st March 2015. Short-term borrowings increased from
leading to an increase in operating B893.98 crore in 2014‑15 to B928.47
l Borrowings: The Company’s
expenses. crore in 2015-16, a rise of 3.8%.
borrowings comprise long-term
l The Company’s depreciation stood at borrowings (current and non-current)
B55.14 crore in 2015-16 against B55.23 and short-term borrowings . As on 31st Cash and bank balances
crore 2014-15. March 2016, they stood at B1656.51 Cash and bank balances increased by
crore against B1609.25 crore as on 31st 54.2% from B16.73 crore as on 31st March
Capital employed March 2015. 2015 to B25.80 crore as on 31st March
The total employed capital increased by 2016.
25.41% in 2015-16. The return on capital Working capital management
employed increased by about 5.50% in l Current assets: Current assets as on
2015-16. 31st March 2016 stood at B1615.49

28 Dhampur Sugar Mills Limited

 FINANCIAL STATEMENTS
Corporate social responsibility
At Dhampur, we believe that Within the vicinity of some of our The Mansurpur unit sponsors a cultural
a company is truly successful facilities, we have developed schools for programme called Lok Rang at the district

MANAGEMENT REPORTS
imparting education to rural children. A level every year and organises a host of
when it earns profits and 1:30 teacher-student ratio guarantees that cultural and educational programmes.
shares it with the society within each child receives attention and care.
At our Meerganj unit, we educate farmers
which it exists. We have tried
We also partnered Academy of Modern and provide them with the necessary
to integrate social welfare Learning and opened one of its branches resources like liquid biofertilisers,
within our normal day-to-day at Asmoli. The school is equipped with pesticides and organic manure at pocket-
operations. modern learning and recreational friendly rates. Besides this, meetings and
facilities, encouraging extracurricular seminars are held where techniques like
activities to facilitate the all-round inter-cropping, mixed cropping, trench

CORPORATE OVERVIEW
development of rural children. One more planting, among others, are taught to
branch was established in Gunnaur near farmers to maximise earnings.
our Rajpura unit.

Our Human Resource Policies

Dhampur has a proper Human Resource Department that oversees all the human resource issues and strives to create a satisfactory
workplace for its employees. This department works closely with the senior management and is involved in the recruitment of
employees, their retention, remuneration, rewards and recognition.
In the year under review, there were no material changes in our HR policies. And the Company’s employee strength is 2956 as on 31st
March 2016.

Annual
Report 201516 29
 Mitigating risks
at Dhampur
Dhampur’s integrated risk management approach comprises a compliance with prudential
norms, structured reporting and effective controls. A combination of centrally-issued policies and
divisionally-evolved procedures has helped enhance process robustness, ensuring that business risks
are effectively addressed.

Locational risk
In the sugar business, the distance between Risk mitigation
mills from sugarcane fields could lead to delay We have established excellent connectivity via roads to ensure quick
in cane crushing thereby lowering recovery. cane delivery.
Our command areas extend around a 30-kilometre radius of our mills.

Working capital risk

The ratio of capital required to the amount Risk mitigation
of labor is high in the sugar industry. Our effort to liquidate inventory levels at the end of each season
Liquidity concerns can impact operations. ensures that we are able to repay our dues in a timely manner.
We also manufacture and sell other additional products such as
power, ethanol and chemicals. This ensures steady cash flows and
allows us to counter the cyclical impact of the industry.

Raw material risk

A potential decline in cane production can Risk mitigation
diminish profitability. All of our facilities are located in the cane-rich belt of Uttar Pradesh.
We procure sugarcane from more than 190,000 farmers.
We take active steps in training farmers and also provide them with
high-yielding variety seeds and other basic amenities.
We also have dedicated teams in our command areas that specifically
look after the growth and development of sugarcane.

30 Dhampur Sugar Mills Limited

Industry risk
An economic slowdown could Risk mitigation
adversely affect our revenues. The Company has an established presence not only in the sugar but also in

FINANCIAL STATEMENTS
cogeneration, alcohol and biofertiliser segments.
We also offer packaged sugar, thereby strengthening margins.
Non-sugar revenues stood at 41 % of the total revenues in FY2015-16 (35 % in
FY2014-15), indicating only a moderating dependability on sugar.
The low per capita sugar consumption in India provides ample room for us to
grow.

Competition risk

MANAGEMENT REPORTS
An inability to sell enough cane Risk mitigation
could eat into our profits. We procure sugarcane from more than 190,000 farmers.
We enjoy enduring relationships with the farmers that ensures adequate cane
supply
Our dedicated teams help farmers free their land faster post the sugar season
and move on to their next crops. Besides, we have also implemented farmer
support programmes and supplied seeds and other agricultural implements.

CORPORATE OVERVIEW
Regulatory risk
Unfavorable governmental Risk mitigation
policies could negatively impact The Government has been introducing a lot of initiatives to ensure a favorable
prospects. progress of the Indian sugar industry. Few are as follows:
The policy interventions by the Government such as a soft loan was notified
with a one year moratorium on interest payments. The focus was on
providing direct payment to farmers even though mills undertook the loans,
providing relief to farmers and generating liquidity in the sugar industry.
Government also introduced a modified Ethanol Blending Program(EBP) to
achieve up to 10% blending levels with Motor Spirit.
Lastly a comprehensive performance based production subsidy was notified
at a rate of B4.50 per quintal of cane crushed, payable to farmers against cane
dues contingent on mills undertaking exports and supplying ethanol.

Annual
Report 201516 31
Board Report
To,
The Members,
Dhampur Sugar Mills Limited

The directors have pleasure in presenting their Annual Report of the company together with the Audited accounts for the period ended on
31st March, 2016.

Financial Results: (H in Cr.)

Particulars Current Year for the Previous Year for the
Period 2015-16 Period 2014-15*
Total Income 2275.41 1841.92
Less-Expenditure during the year 2024.46 1688.80
Profit/(Loss) before Depreciation, Interest & tax 250.95 153.12
Less- Depreciation 54.86 55.15
Less- Interest 158.63 149.66
Less- Provision For Tax & Adjustments 5.51 (41.33)
Net Profit/(Loss) 31.95 (10.36)

*Figures have been re-grouped, wherever considered necessary.

Operational performance:
Sugar units:
The key operational data of sugar/co-generation/chemical units are as follows :

Sugar operations at a glance

31st March, 2016 31st March, 2015
Cane crushed (lac-qtls.) 483.05 458.22
Recovery (per cent) 10.53 9.51
Sugar Produced From Cane (lac-qtls.) 50.88 43.57

Co-generation operations at a glance

31st March, 2016 31st March, 2015
Power generated (M.W.) 660233 570576
Sale to UPPCL (M.W.) 430691 373076

Chemical operations at a glance

31st March, 2016 31st March, 2015
RS/ENA/Ethanol ( in lacs BL) 710.25 371.94
Chemicals (net) (in lacs KG) 138.53 245.35

32 Dhampur Sugar Mills Limited

Subsidiaries, Joint Ventures or Associate Kumar Sharma, has been given in the Corporate Governance,
Companies forming part of the Annual Report.
The financial statement of Dhampur International Pte Limited,
subsidiary of the Company is annexed as Annexure 1 and forms an
Key Managerial Personnel
Shri Gaurav Goel and Shri Gautam Goel are the Managing Directors
integral part of this report.
of the Company and Shri Arhant Jain is Chief Financial Officer and

FINANCIAL STATEMENTS
Material Changes and Commitments during the Company Secretary of the Company.
Year
There are no material changes and commitments affecting the
Deposits
1. Accepted during the financial year 2015-16: H13.67 crores
financial position of the company which have occurred between
31.03.2016 and the date of the report, as required under Section 2. Remained unpaid or unclaimed as at the end of the year H0.16
134(3)(l) of the Companies Act, 2013. Crores
3. If there has been any default in repayment of deposits or
Change in the Nature of Business payment of interest thereon during the year and if so, number

MANAGEMENT REPORTS
During the year, there was no material change in nature of business of such cases and the total amount involved:
of the company. a. At the beginning of the year; NIL
b. Maximum during the year; NIL
Dividend
c. At the end of the year. NIL
Your directors do not recommend any dividend for the year ending
31st March 2016 due to accumulated losses. Deposits not in compliance with Chapter V of the
Act
Reserves & Surplus
The Company has not accepted any deposit, which is not in
The Company has earned a Net Profit after tax of H31.95 Crore

CORPORATE OVERVIEW
compliance with chapter V of the Act.
which has been adjusted in Profit and Loss Account under the
head Reserves & Surplus. The Reserves & Surplus now amounted to Particulars of Loans, Guarantees or Investment
H647.05 Crores as at 31st March, 2016. Details of Loans, Guarantees and Investments covered under the
provisions of section 186 of the Companies Act, 2013 are given in
Equity Share Capital
the notes to Financial statements.
During the financial year, 1500000 Equity shares of H10/- each at a
premium of H23/- per share have been allotted on conversion of Related Party Transactions
1500000 equity share warrants. All the transactions carried out with Related parties for the year
under review were on arm’s length basis and are in compliance with
Directors
the applicable provisions of the Act and Listing Agreement.
Shri Gaurav Goel, Shri Gautam Goel and Shri Sandeep Kumar Sharma
will retire at the ensuing Annual General Meeting and being eligible There are no material significant related party transactions made
have offered themselves for their respective re-appointment. by the Company with Promoters , Directors or Key Managerial
Personnel etc. which may have potential conflict with the interest
During the year Shri D.L Mittal was appointed as Nominee Director
of the Company at large.
of Punjab National Bank in place of Shri S.K Wadhwa.
The Related Party Transactions Policy as approved by the Board is
Brief profile of Shri Gaurav Goel, Shri Gautam Goel and Shri Sandeep
uploaded on the Company’s website at http://www.dhampur.com

Annual
Report 201516 33
Your directors draw attention of the members to Note No. 34 of the (c) the Directors have taken proper and sufficient care for the
Financial Statement which sets out related party disclosures. maintenance of adequate accounting records in accordance
with the provisions of this Act for safeguarding the assets of
Auditors and Auditors’ Report the company and for preventing and detecting fraud and other
M/s Mittal Gupta & Co., Chartered Accountants, Kanpur, the auditors irregularities;
of your Company will retire at the ensuing Annual General Meeting
(d) the Directors have prepared the annual accounts on a going
and being eligible are proposed to be re-appointed.
concern basis;
The observations of the Auditors in their report read with the
(e) the Company has an effective internal control and risk mitigation
accounts are self-explanatory.
system, which are constantly assessed and strengthened with
Secretarial Auditors and Secretarial Audit Report the new/revised standard operating procedures.
Pursuant to the provisions of Section 204 of Companies Act, 2013 (f ) the Directors, have devised proper systems to ensure
and rules made there under, the Company has appointed GSK & compliance with the provisions of all applicable laws and that
Associates, a firm of Company Secretaries in Practice, to undertake such systems are adequate and operating effectively.
the secretarial Audit of the Company. The Secretarial Audit Report
is annexed as Annexure 2 and forms an integral part of this report. Declaration by Independent Directors
The Company has received declaration from all independent
There is no secretarial audit qualification for the year under review.
directors in accordance with the provisions of Section 149(6) of the
Corporate Governance: Act, whose names are as under:
In compliance with Regulation 17 to 27 of SEBI (Listing Obligations 1. Shri M.P Mehrotra
and Disclosure Requirements) Regulations, 2015, a detailed 2. Shri Priya Brat
Corporate Governance Report has been given elsewhere in this 3. Shri Ashwani K Gupta
report, along with the Management discussion and analysis report, 4. Shri Harish Saluja
which form an integral part of the Annual Report. 5. Shri Rahul Bedi
A certificate from GSK & Associates, a firm of Company Secretaries in 6. Smt. Nandita Chaturvedi
Practice confirming compliance by the Company with the conditions
of Corporate Governance as stipulated under part E of Schedule V of
Audit Committee
Details of the composition of the Audit Committee and the
SEBI (Listing Obligations and Disclosure Requirements) Regulation
attendance at the meetings held during the financial year 2015-16
2015 is attached to this report.
forms part of the Corporate Governance Report.
Directors Responsibility Statement:
In accordance with the provisions of Section 134(5) of the
Nomination and Remuneration Policy:
The Board of Directors have framed a policy which lays down a
Companies Act, 2013 your directors state that:
framework in relation to remuneration of directors, Key Managerial
(a) in the preparation of the annual accounts, the applicable Personnel and Senior Management of the Company. The details of
accounting standards have been followed along with proper this policy are explained in the Corporate Governance which forms
explanation relating to material departures; a part of this Report. The remuneration policy is in consonance with
(b) the Directors have selected such accounting policies and the existing policy of the Company.
applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair
Risk Management Policy
The Company has Risk Management committee of Directors to have
view of the state of affairs of the company at the end of the
a system of Risk Management, inter alia, to review it periodically.
financial year and of the profit and loss of the company for that
period;

34 Dhampur Sugar Mills Limited

Vigil Mechanism/Whistle Blower Policy Conservation of energy, technology absorption,
The Company has formulated a Vigil Mechanism /Whistle Blower foreign exchange earnings and outgo
Policy for employees and Directors to ensure high standards of The details of conservation of energy, techonology abosorption,
ethical behavior and to provide safeguards to whistle blower. foreign exchange earnings and outgo are given in the Annexure-4
attached to this report.
Disclosure under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition Extract of Annual Return
and Redressal) Act, 2013. According to the provisions of section 92(3) the prescribed Forms
The Company has in place an Anti Sexual Harassment Policy in line MGT-9 (Extract of Annual Return) is attached as per Annexure-5.
with the requirements of The Sexual Harassment of Women at the
Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Details of Board Meetings held during the year

FINANCIAL STATEMENTS
Complaints Committee (ICC) has been set up to redress complaints Details of the Compositions of the Board Meeting and the
received regarding sexual harassment. All employees (permanent, attendance at the meetings held during the financial year 2015-16
contractual, temporary, trainees, etc.) are covered under this policy. forms the part of the Corporate Governance Report.

The following is a summary of sexual harassment complaints Significant And Material Orders Passed By The
received and disposed off during the year 2015-16 Regulators Or Courts Or Tribunals Impacting
No. of complaints received Nil The Going Concern Status And Company’s
No. of complaints disposed of Nil Operations In Future

MANAGEMENT REPORTS
There was no such order passed by the regulators or courts or
Corporate Social Responsibility tribunals impacting the going concern status and Company’s
The composition of CSR committee is as under : operations in future.

1. Shri V.K Goel, Chairman

2. Shri Gaurav Goel, Member
3. Shri Ashwani K Gupta, Member

The Annual Report on CSR intiatives is attached as per Annexure - 3

CORPORATE OVERVIEW
Managerial Remuneration
1. The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year 2015-
16 is given below:

Name of the director Designation DIN Ratio

Shri Vijay Kumar Goel Promoter, Chairman and Whole-time director 00075317 39.73:1
Shri Ashok Kumar Goel Promoter, Vice Chairman and Whole-time director 00076553 39.73:1
Shri Gaurav Goel Promoter and Managing Director 00076111 40.03:1
Shri Gautam Goel Promoter and Managing Director 00076326 40.03:1
Shri Mahesh Prasad Mehrotra Independent Director 00016768 NA
Shri Priya Brat Independent Director 00041859 NA
Shri Ashwani Kumar Gupta Independent Director 00108678 NA
Shri Sudarshan Kumar Wadhwa* Nominee Director 05327641 NA
Shri Harish Saluja Independent Director 01233800 NA
Shri Rahul Bedi Independent Director 02573535 NA
Shri Sandeep kumar Sharma Whole Time Director 06906510 7.94:1
Ms. Nandita Chaturvedi Independent Director 07015079 NA
Shri D. L. Mittal (appointed w.e.f Nominee Director 06469972 NA
07.11.2015)

*(ceased w.e.f 07.11.2015)

Annual
Report 201516 35
2. Percentage increase in remuneration of each director and CEO/CFO/CS in the financial year

Name of the director/CEO/CFO/CS Designation DIN/PAN Percentage increase

Shri Vijay Kumar Goel Promoter , Chairman and Whole-time director 00075317 64.98%
Shri Ashok Kumar Goel Promoter , Vice Chairman and Whole-time director 00076553 64.98%
Shri Gaurav Goel Promoter and Managing Director 00076111 63.23%
Shri Gautam Goel Promoter and Managing Director 00076326 63.23%
Shri Mahesh Prasad Mehrotra Independent Director 00016768 NA
Shri Priya Brat Independent Director 00041859 NA
Shri Ashwani Kumar Gupta Independent Director 00108678 NA
Shri Sudarshan Kumar Wadhwa* Nominee Director 05327641 NA
Shri Harish Saluja Independent Director 01233800 NA
Shri Rahul Bedi Independent Director 02573535 NA
Shri Sandeep kumar Sharma Whole Time Director 06906510 3.50%
Ms. Nandita Chaturvedi Independent Director 07015079 NA
Shri D. L. Mittal (appointed w.e.f Nominee Director 06469972 NA
07.11.2015)
Shri Arhant Jain CFO and CS ADNPJ0729P 4.96%

*(ceased w.e.f 07.11.2015)

3. Percentage increase in the median remuneration of employees 6. The key parameters for any variable component of remuneration
in the financial year : 5.07% availed by the directors :
Commission on Net Profits of the Company to be paid to them:
4. Number of permanent employees on the rolls of company
H42 Lacs
Permanent Employees : 2596
7. The ratio of the remuneration of the highest paid director
5. Explanation on the relationship between average increase in
to that of the employees who are not directors but receive
remuneration and company performance:
remuneration in excess of the highest paid director during the
The Company is giving statutory increment to its employees
year : NA
and workers, whenever applicable and as per HR practice of the
Company irrespective of the performance of the Company. 8. There was no employee of the company who was in receipt of
remuneration in excess of H60 Lakhs and holding 2% or more
The whole Time Directors Shri. Vijay Kumar Goel, Shri Ashok
of equity share capital of the company except Shri Gaurav Goel
Kumar Goel, Shri Gaurav Goel are also being paid commission
and Shri Gautam Goel, Managing Directors of the Company.
linked to Company’s profit computed in terms of Section 198
of the Companies Act, 2013 and rules made there under.
Acknowledgements:
Comparison of the remuneration of the Key Managerial Your Directors place on record their acknowledgement and
Personnel against the performance of the company: sincere appreciation to the shareholders for their confidence in the
The Remuneration being paid to Managing Directors is management of the Company, the Central Government, the State
within the limits of Schedule V to the Companies Act, 2013. Government, banks and financial institutions for their continued
Remuneration of Shri Gaurav Goel also comprises commission support, the cane growers for their efforts in ensuring timely cane
which is linked to profits of the Company in terms of Section supply, the Company’s officers and staff for their relentless and
198 of the Companies Act, 2013. dedicated efforts, resulting in the Company’s growth and look
forward to a bright future.
The Remuneration of Mr. Arhant Jain is revised as per normal
HR policy of the Company

For and on behalf of the Board

Place: New Delhi V. K. Goel

Dated:10.05.2016 Chairman

36 Dhampur Sugar Mills Limited

Annexure - 1

FORM NO. AOC.1

Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014

Part “A”: Subsidiaries

(Information in respect of each subsidiary to be presented with amounts in H in Crores)

1. Name of the subsidiary: Dhampur International PTE Limited.

FINANCIAL STATEMENTS
2. Reporting period for the subsidiary concerned, if different from the holding company’s reporting period: - 1st April, 2015 to 31st March,
2016.

3. Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries:- USD (1 USD
= H66.33)

4. Other Information:-

Particulars Dhampur International PTE Limited (J in Crores)

Share capital 10.80

MANAGEMENT REPORTS
Reserves & surplus (11.17)
Total assets 26.99
Total Liabilities 27.36
Investments NIL
Turnover 194.37
Profit/(Loss) before taxation (5.58)
Provision for taxation NIL
Profit after taxation (5.58)

CORPORATE OVERVIEW
Proposed Dividend NIL
% of shareholding 100%

i) Name of subsidiaries which are yet to commence operations : N.A

ii) Name of Subsidiaries which have been liquidated or sold during the year : Dhampur Global Pte Ltd.

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures:
The Company has no associate or joint venture.

Annual
Report 201516 37
Annexure - 2
SECRETARIAL AUDIT REPORT
FOR THE YEAR ENDED 31ST MARCH, 2016
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule no. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,
The Members,
Dhampur Sugar Mills Limited
Distt. Bijnor, Dhampur – 246761
Uttar Pradesh

We have conducted the secretarial audit of the compliance The following Regulations and Guidelines prescribed under the
of applicable statutory provisions and the adherence to good Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
corporate practice by DHAMPUR SUGAR MILLS LIMITED (CIN: a. The Securities and Exchange Board of India (Substantial
L15249UP1933PLC000511) (hereinafter called the company). Acquisition of Shares and Takeovers) Regulations, 2011, as
Secretarial Audit was conducted in a manner that provided us a amended from time to time;
reasonable basis for evaluating the corporate conducts/statutory
b. The Securities and Exchange Board of India (Prohibition of
compliances and expressing our opinion thereon.
Insider Trading) Regulations, 2015;
Based on our verification of the Company’s books, papers, minute c. The Securities and Exchange Board of India (Issue of
books, forms and returns filed and other records maintained by the Capital and Disclosure Requirements) Regulations, 2009;
Company and also the information provided by the Company, its
d. The Securities and Exchange Board of India (Employee
officers, agents and authorized representatives during the conduct
Stock Option Scheme and Employee Stock Purchase
of secretarial audit, we hereby report that in our opinion, the
Scheme) Guidelines, 1999 and The Securities and
Company has, during the year ended on 31st March, 2016, complied
Exchange Board of India (Share Based Employee Benefits)
with the statutory provisions listed hereunder and also that the
Regulations, 2014 notified on 28th October, 2014 (Not
Company has proper Board-processes and compliance-mechanism
applicable to the company during the audit period);
in place to the extent, in the manner and subject to the reporting
e. The Securities and Exchange Board of India (Issue
made hereinafter:
and Listing of Debt Securities) Regulations, 2008 (Not
We have examined the books, papers, minute books, forms and applicable to the company during the audit period);
returns filed and other records maintained by the Company for the
f. The Securities and Exchange Board of India (Registrar to
year ended on 31stMarch, 2016 according to the provisions of:
an Issue and Share Transfer Agents) Regulations, 1993,
I. regarding the Companies Act and dealing with client.
The Companies Act, 2013 (the Act) and the rules made g. The Securities and Exchange Board of India (Delisting of
thereunder. Equity Shares) Regulations, 2009 (Not applicable to the
The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the company during the audit period); and
rules made thereunder. h. The Securities and Exchange Board of India (Buyback
The Depositories Act, 1996 and the Regulations and bye-laws of Securities) Regulations, 1998 (Not applicable to the
framed thereunder. company during the audit period).
Foreign Exchange Management Act, 1999 and the rules i. The Securities and Exchange Board of India (Listing
and regulations made thereunder to the extent of Foreign Obligation and Disclosure Requirements) Regulations,
Direct Investment, Overseas Direct Investment and External 2015; as amended from time to time
Commercial Borrowings.

38 Dhampur Sugar Mills Limited

II. compliance under other Act, Laws and Regulations to the Company.
Sugar Cess Act, 1982
We have also examined compliance with the applicable clauses of
Levy Sugar Price Equalisation Fund Act, 1976
the following:-
Food Safety and Standards Act, 2006
a. Secretarial Standards issued by The Institute of Company
Essential Commodities Act, 1955
Secretaries of India and notified by Central Government.
Sugar Development Fund Act, 1982
Export (Quality Control and Inspection) Act, 1963 b. The Listing Agreements entered into by the Company with
Agricultural and Processed Food Products Export Act, 1986 Stock Exchanges.
(Not applicable to the Company) During the year under review the Company has complied with the
During the year under review, the Company has made all provisions of the Act, Rules, Regulations, etc. mentioned above.
compliances under Sector specific laws mentioned above. We further report that:

FINANCIAL STATEMENTS
III. The Board of Directors of the Company is duly constituted with
proper balance of Executive Directors, Non-Executive Directors
The Air (Prevention & Control of Pollution) Act, 1981 [Read with
and Independent Directors. The changes in the composition of the
the Air (Prevention & Control of Pollution) Rules, 1982]
Board of Directors that took place during the year under review
The Environment (Protection) Act, 1986 [Read with the
were carried out in compliance with the provisions of the Act.
Environment (Protection) Rules, 1986]
The Water (Prevention & Control of Pollution) Act, 1974 [Read Adequate notice is given to all directors to schedule the Board
with the Water (Prevention & Control of Pollution) Rules, 1975 Meetings, agenda and detailed notes on agenda were sent at least
seven days in advance, and a system exists for seeking and obtaining
The Hazardous Waste (Management, Handling And

MANAGEMENT REPORTS
further information and clarifications on the agenda items before
Transboundry Movement) Rules, 2008
the meeting and for meaningful participation at the meeting.
The Factories Act, 1948
The Industrial Disputes Act, 1947 Majority decision is carried through while there has been no
member dissenting from the decisions arrived.
The Payment of Wages Act, 1936
The Minimum Wages Act, 1948 There are adequate systems and processes in the company
commensurate with the size and operations of the company
The Employees’ Provident Fund and Miscellaneous Provisions
to monitor and ensure compliance with applicable laws, rules,
Act, 1952
regulations and guidelines.
The Payment of Bonus Act, 1965

CORPORATE OVERVIEW
The Payment of Gratuity Act, 1972 We further report that the company has passed special resolution
at its Annual General Meeting held on 11th September, 2015, under
The Contract Labour (Regulation and Abolition) Act, 1970
Section 180(1)(c) authorizing the Board of Directors to borrow
The Maternity Benefit Act, 1961
money.
The Child Labour(Prohibition and Regulation) Act, 1986
We further report that the company had issued 3000000 equity
The Industrial Employment (Standing Orders) Act, 1946
warrants each having an option to convert such warrants into equity
The Employees’ Compensation Act, 1923 (earlier known as
shares of H10 each at a premium of H23 each, during the financial
Workmen’s Compensation Act, 1923
year 2013-14. Holders of 1500000 equity warrants have exercised
The Apprentices Act, 1961 the conversion option during the year and consequently, the equity
The Employment Exchange (Compulsory Notification of shares were allotted.
Vacancies) Act, 1956
For GSK & Associates
During the year under review the Company has filed periodical (Company Secretaries)
return and has not received any show cause notice and has
generally complied with the provisions of the Act, Rules, Regulations,
Saket Sharma
Guidelines, Standards, etc. mentioned above.
Partner
We have relied on the representation made by the Company and Date: 10.05.2016 (Membership No.: F4229)
its officers on systems and mechanism formed by the Company for Place: New Delhi (CP No.: 2565)

Annual
Report 201516 39
Annexure - 3

FORMAT FOR THE ANNUAL REPORT ON CSR INITIATIVES TO BE INCLUDED IN THE BOARD REPORT BY QUALIFYING COMPANIES

1. Provide a brief outline of the company’s CSR policy, including socio-economic development and relief and welfare
overview of projects or programs proposed to be undertaken of the Scheduled Castes, the Scheduled Tribes, other
and a reference to the web-link to the CSR policy and projects backwad classes, minorities and women
or programs.
12. Contributions or funds provided to technology incubators
The CSR policy was approved by the Board of Directors at its located within academic institutions which are approved
meeting held on 21st May, 2014 and has been uploaded on by the Central Government
the Company’s website under the link http://dhampur.com/
13. Rural development projects
Policies.aspx
2. The composition of CSR Committee is as under:
The Company had proposed to undertake activities relating to
promoting education, sports, good agricultural practices, skill Shri V.K Goel, Chairman
development, women empowerment etc during the financial Shri Gaurav Goel, Member
year 2015-16.
Shri Ashwani K Gupta, Member
The Company through its various programmes will be investing
3. Average Net Profit of the company for last 3 financial years. –
the resources for undertaking the following activities:
H(31.12) Cr.
1. Eradication of hunger, poverty and malnutrition
4. Prescribed CSR Expenditure (2% of the amount as in item 3
2. Promotion of preventive health care and sanitation above) H NIL.
3. Promotion of education 5. Details of CSR spent during the financial year 2015-16:
4. Promotion of gender equality (a) Total amount to be spent for the financial year; - H0.39 cr.
5. Reducing social and economic inequality (b) Amount unspent, if any;Nil
6. Ensuring environmental sustainability (c) Manner in which the amount spent during the financial
7. Protection of Flora and Fauna year as detailed below:

8. Protection of National Heritage, art and culture In accordance with the Company’s CSR Policy and in
compliance with the Companies (Corporate Social
9. Measures for the benefit of armed forces veterans, war
Responsibility Policy) Rules , 2014, The Company through
widows and their dependents
the trust established by it at its unit has undertaken the
10. Promoting sports CSR project of promoting education.

11. Contribution to the Prime Minister’s National Relief Fund

or any other fund set up by the Central Government for

40 Dhampur Sugar Mills Limited

 (1) (2) (3) (4) (5) (6) (7) (8)
S. No. CSR Project or Sector in Projects or programs: Amount outlay Amount spent on Cumulative Amount
activity identified which the (budget) the projects or expenditure spent: Direct
(1) Local area or others
Project is programs up to the or through
Project or
covered (2) Specify the state and reporting implement-
program wise Sub-heads:
district where projects period ing agency

FINANCIAL STATEMENTS
or programs were (1) Direct
undertaken Expenditure
on projects or
programs

(2) Overheads
1 Promoting Education Sambhal, Bijnor, Delhi H0.36Cr. H0.36 Cr. H0.36 Cr. NA
education, including
special education

MANAGEMENT REPORTS
and employement
enhancing
vocational training
and livelihood
enhancement
projects.
2 Promoting rural Sports Sambhal, Bijnor, Delhi H0.03Cr. H0.03 Cr. H0.03 Cr. NA
sports nationally,

CORPORATE OVERVIEW
recognised sports,
paralympic sports
and olympic sports.

6. In case the Company has failed to spend the two per cent of the average net profit of the last three financial years or any part thereof,
the company shall provide the reasons for not spending the amount in its Board report. N.A

7. Pursuant to the Companies (Corporate Social Responsibility Policy) Rules, 2014, we hereby confirm that the CSR Committe has
implemented and monitored the CSR initiatives of Dhampur Sugar Mills Limited in line with CSR objectives and policy of the Company.

On behalf of the CSR Committee

Chairman of CSR Committee Managing Director

Annual
Report 201516 41
Annexure - 4

The details of conservation of energy, technology absorption, foreign exchange earnings and outgo are as follows:

A) Conservation of energy:
(i) the steps taken or impact on conservation of energy;

The company has installed spentwash fired boiler at its Dhampur Unit. The boiler will use spent wash as fuel ( apart from bagasse) which
will result in less bagasse consumption in the boiler leading to additional bagasse saving for the same steam generation.

(ii) the steps taken by the company for utilising alternate sources of energy;

The Company is producing renewable energy not only for its captive consumption, but is also exporting power to state.

(iii) the capital investment on energy conservation equipment’s;

Power and fuel consumption 31st March, 2016 31st March, 2015
1 Electricity
A Purchased:
Units (kwh) 4606385 6030003
Total Value (H) 34808185 44147955
Rate (H/Unit) 7.56 7.32
B Own generation :
i. Through diesel generator:
Units (Kwh) 175365 214728
Unit per liter of diesel 2.76 2.96
Cost/ unit 19.52 20.13
ii. Through steam turbine:
Units (Kwh) 166951800 151529728
Unit per liter of fuel /oil/gas : Steam produced mainly by use of own and purchased bagasse paddy husk and coal
2 Coal
Quantity (tonnes) 891.33 805.00
Total cost (H in lac) 60.26 54.43
Average rate (H/ tonnes) 6761 6761
3 Furnace oil
Quantity (lts.) - -
Total cost (H) - -
Average rate - -
4 Other/ Internal generation:
Quantity (tonnes) - -
Total cost (H) - -
Average rate - -

42 Dhampur Sugar Mills Limited

Power and fuel consumption 31st March, 2016 31st March, 2015
II Consumption per unit of production
A Sugar (qtls.) 5190606 4401135
- Electricity (Kwh/ qtls.) 33.09 35.84
- Furnace oil - -
- Coal (tonnes) - -
B Chemical (qtls.)
- Electricity (Kwh/ qtls.) 27.17 25.98
- Furnace oil -
- Coal (tonnes) -

FINANCIAL STATEMENTS
(B) Technology absorption:
(i) the efforts made towards technology absorption; N.A

(ii) the benefits derived like product improvement, cost reduction, product development or import substitution; N.A

(iii) i n case of imported technology (imported during the last three years reckoned from the beginning of the financial year)-

(a) the details of technology imported; N.A

MANAGEMENT REPORTS
(b) the year of import; N.A

(c) whether the technology been fully absorbed; N.A

(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; N.A and

(iv) the expenditure incurred on Research and Development: H7.12 crore compared with previous year’s H7.27 crore.

(C) Foreign exchange earnings and Outgo:

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual

CORPORATE OVERVIEW
outflows.

b) Total foreign exchange used and earned:

Sugar operations at a glance (H in Cr.)

Current Year Previous Year
Export and foreign exchange earnings 166,69 179.24
Imports and expenditure in foreign currency 137.85 82.52

Annual
Report 201516 43
Annexure - 5

FORM NO. MGT.9

EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31.03.2016
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i. CIN: L15249UP1933PLC000511
ii. Registration Date: 22.05.1933
iii. Name of the Company: Dhampur Sugar Mills Limited
iv. Category / Sub-Category of the Company: Public Company/Limited by shares
v. Address of the Registered office and contact details: Dhampur, Distt. Bijnor- 246761, U.P
vi. Whether listed company: Yes , with NSE and BSE Limited
vii. Name, Address and Contact details of Registrar and Transfer Agent, if any:
Alankit Assignments Limited
Alankit House, 4E/2, Jhandewalan Extension, New Delhi-110065

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

Sl. No. Name and Description of main NIC Code of % to total turnover
products/ services the Product/ service of the company
1 Sugar 2060 62.58
2 Power 4390 16.54
3 Chemical:
Rectified Spirit 2200 14.27
Ethyl Acetate 3007

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. No. Name And Address of the Company CIN/ GLN/Foreign Holding/ Subsidiary/ % of Shares Applicable
Registration Associate Held Section
Number
1 Dhampur International Pte Limited, 200912388N Foreign Subsidiary 100% 2(87)
Singapore

44 Dhampur Sugar Mills Limited

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i. Category-wise Share Holding
Category of No. of Shares held No. of Shares held % Change
Shareholders at the beginning of the year at the end of the year during
Demat Physical Total % of Total Demat Physical Total % of Total the year
Shares Shares
A.  Promoters
(1) Indian
a. Individual/ HUF 7712604 -- 7712604 13.14 9212604 0 9212604 15.30 2.16
b. Central Govt. 0 0 0 0 0 0 0 0.00 0

FINANCIAL STATEMENTS
c. State Govt. (s) 0 0 0 0 0 0 0 0.00 0.00
d. Bodies Corp. 14797273 14797273 25.20 14797273 0 14797273 24.57 0
e. Banks/FI 0 0 0 0 0 0 0 0.00 0
f. Any Other.
(i) Directors & Relatives 85364 85364 0.15 85364 0 85364 0.14 0.00
(ii) Person Acting in 9490396 9490396 16.16 9490396 0 9490396 15.76 -0.40
Concert
Sub-total (A) (1) 32085637 32085637 54.65 33585637 0 33585637 55.78 1.13

MANAGEMENT REPORTS
(2) Foreign 0.00
a. NRIs – Individuals 0 0 0 0 0 0 0 0.00 0
b. Other – Individuals 0 0 0 0 0 0 0 0.00 0
c. Bodies Corp. 0 0 0 0 0 0 0 0.00 0
d. Banks / FI 0 0 0 0 0 0 0 0.00 0
e. Any Other.... 0 0 0 0 0 0 0 0.00 0
Sub-total (A)(2) -- --- -- 0.00
Total shareholding 32085637 32085637 54.65 33585637 0 33585637 55.78 1.13

CORPORATE OVERVIEW
of Promoter (A) = (A)
(1)+(A)( 2)
B. Public Shareholding
(1) Institutions
a. Mutual Funds 141 3374 3515 0.01 39141 3374 42515 0.07 0.06
b. Banks/FI 2053062 331 2053393 3.50 2101658 331 2101989 3.49 -0.01
c. Central Govt 0 0 0 0 0 0 0.00 0
d. State Govt(s) 0 0 0 0 0 0 0.00 0
e. Venture Capital Funds 0 0 0 0 0 0 0.00 0
f.  Insurance Companies 0 0 0 0 0 0 0.00 0
g.  FIIs 797 650 1447 0.00 797 650 1447 0.00 0.00
h.  Foreign 0 0 0 0 0 0 0.00
Venture Capital Funds 0 0 0 0 0 0 0.00 0
i.  Others (specify) 0 0 0 0 0 0 0.00
Sub-total (B)(1) 2054000 4355 2058355 3.51 2141596 4355 2145951 3.56 0.06

Annual
Report 201516 45
Category of No. of Shares held No. of Shares held % Change
Shareholders at the beginning of the year at the end of the year during
Demat Physical Total % of Total Demat Physical Total % of Total the year
Shares Shares
(2) Non-Institutions
a. Bodies Corp. 0.00
i) Indian 8466747 13096 8479843 14.44 7129472 13092 7142564 11.86 -2.58
ii) Overseas 191812 0 191812 0.33 191812 191812 0.32 -0.01
b. Individuals
i) Individual shareholders 8516205 450747 8966952 15.27 9122841 456565 9579406 15.91 0.64
holding nominal share
capital upto H2 lakh
ii) Individual shareholders 6033879 17238 6051117 10.31 6732397 0 6732397 11.18 0.87
holding nominal share
capital in excess of H5
lakh
c. NBFC registered with 0 0 0 0.00 1250 0 1250 0.00
RBI
d. Others (specify) 0 0.00
(i) Non Resident Indian 881065 89 881154 1.50 0 0 0 0.00 -1.50
(ii) Trust 65 65 65 0.00 0 0 0 0.00 0.00
(iii) NRI 0 0 0 0 835818 88 835906 1.39
(iv) Trust 0 0 0 0 12 0 12 0.00
Sub-total (B)(2) 24089773 481170 24570943 41.85 24013602 469745 24483347 40.66 -1.19
Total Public 26143773 485525 26629298 45.35 26155198 474100 26629298 44.22 -1.13
Shareholding (B) = (B)(1)
+ (B)(2)
C. Shares held by 0 0 0 0.00 0 0 0 0.00 0.00
Custodian for GDRs &
ADRs
Grand Total (A+B+C) 58229410 32571162 58714935 100.00 59740835 34059737 60214935 100.00 0.00

46 Dhampur Sugar Mills Limited

ii. Shareholding of Promoters
Sl. Shareholder’s Name Shareholding at the beginning of the Share holding at the end of the year % change
No. year in share
No. of % of total % of Total No. of % of total % of shares holding
Shares Shares Shares Shares Shares pledged/ during the
of the pledged/ of the encumbered year
company encumbered company to total
to total shares
shares
1 Ashok Kumar Goel 298000 0.51 0.00 298000 0.49 0 -0.01

FINANCIAL STATEMENTS
2 Deepa Goel 10370 0.02 0.00 10370 0.02 0 0.00
3 Gaurav Goel 3461379 5.90 0.00 4211379 6.99 0 1.10
4 Gautam Goel 3492339 5.95 0.00 4242339 7.05 0 1.10
5 Vijay Kumar Goel 425466 0.72 0.00 425466 0.71 0 -0.02
6 Vinita Goel 25050 0.04 0.00 25050 0.04 0 0.00
7 Aparna Jalan 46100 0.08 0.00 46100 0.08 0 0.00
8 Asha Kumari Swaroop 4 0.00 0.00 4 0.00 0 0.00
9 Ritu Sanghi jointly with Ajay Sanghi 7500 0.01 0.00 7500 0.01 0 0.00

MANAGEMENT REPORTS
10 Shefali Poddar 31760 0.05 0.00 31760 0.05 0 0.00
11 Shudh Edible Products Limited 4549680 7.75 5.79 4549680 7.56 3.16 -0.19
12 Sonitron Limited 4940716 8.41 3.19 4940716 8.21 3.11 -0.21
13 Ujjwal Rural Services Limited 125000 0.21 0.00 125000 0.21 0.00 -0.01
( Formerly Associated Metals
Company Limited)
14 Goel Investments Limited 11255515 19.17 0.43 11255515 18.69 0.42 -0.48
15 Saraswati Properties Limited 3416758 5.82 0.00 3416758 5.67 0 -0.14
Total 32085637 54.65 9.41 33585637 55.78 6.68 1.13

CORPORATE OVERVIEW
iii. Change in Promoters’ Shareholding ( please specify, if there is no change)
Sl. Shareholding at the Cumulative Shareholding
No. beginning of the year during the year
No. of Shares % of total shares of No. of Shares % of total shares of
the company the company
1 At the beginning of the year 32085637 54.65 32085637 54.65
2 Allotment on Preferential basis 1500000 1.13 1500000 1.13
3 At the End of the year 33585637 55.78 33585637 55.78

Annual
Report 201516 47
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and holders of GDRs and ADRs):
Sl. For Each of the Top 10 Shareholders Shareholding at % of total shares Cumulative Shareholding
No. the beginning of of the company during the year
the year No. of Shares % of total shares
of the company
1 ICICI Bank Limited 1455249 2.48 1435462 2.38
2 BMF Investments Limited 1588627 2.71 799627 1.33
3 Ojas Consulting Pvt. Ltd. - - 700858 1.16
4 Koushik Sekhar - - 600000 1.00
5 Mitesh N Mehta - - 500000 0.83
6 S. Shyam 107827 0.18 436000 0.72
7 Shri Parasram Holdings Pvt. Ltd. 39014 0.07 406440 0.67
8 Punjab National Bank 400000 0.68 400000 0.66
9 Securities Holdings India Private Limited - - 400000 0.66
10 BMA Wealth Creators Ltd - - 348678 0.58

v. Shareholding of Directors and Key Managerial Personnel:

Sl. For Each of the Directors and KMP Shareholding at the Cumulative Shareholding
No. beginning of the year during the year
No. of Shares % of total shares No. of Shares % of total shares
of the company of the company
1 Shri Vijay Kumar Goel
At the beginning of the year 425466 0.72 425466 0.71
Date wise Increase / Decrease in Shareholding 0 0 0 0
during the year specifying the reasons for increase
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 425466 0.72 425466 0.71
2 Shri Ashok Kumar Goel
At the beginning of the year 298000 0.51 298000 0.49
Date wise Increase / Decrease in Shareholding 0 0 0 0
during the year specifying the reasons for increase
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 298000 0.51 298000 0.49
3 Shri Gaurav Goel
At the beginning of the year 3461379 5.90 4211379 6.99
Date wise Increase / Decrease in Shareholding 0 0 0 0
during the year specifying the reasons for increase
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 3461379 5.90 4211379 6.99

48 Dhampur Sugar Mills Limited

Sl. For Each of the Directors and KMP Shareholding at the Cumulative Shareholding
No. beginning of the year during the year
No. of Shares % of total shares No. of Shares % of total shares
of the company of the company
4 Shri Gautam Goel
At the beginning of the year 3492339 5.95 4242339 7.05
Date wise Increase / Decrease in Shareholding 0 0 0 0
during the year specifying the reasons for increase
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 3492339 5.95 4242339 7.05

FINANCIAL STATEMENTS
5 Shri Ashwani K Gupta
At the beginning of the year 13237 0.02 13237 0.02
Date wise Increase / Decrease in Shareholding 0 0 0 0
during the year specifying the reasons for increase
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 13237 0.02 13237 0.02
6 Shri Mahesh Prasad Mehrotra

MANAGEMENT REPORTS
At the beginning of the year 0 0 0 0
Date wise Increase / Decrease in Shareholding 0 0 115000 0
during the year specifying the reasons for increase /
decrease (Acquisition of Shares):
At the End of the year 0 0 115000 0.19
7 Shri Harish Saluja
At the beginning of the year 3000 0.01 3000 0.01
Date wise Increase / Decrease in Shareholding 0 0 0 0
during the year specifying the reasons for increase

CORPORATE OVERVIEW
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 3000 0.01 3000 0.01
8 Shri Sandeep Kumar Sharma
At the beginning of the year 755 0.00 755 0.00
Date wise Increase / Decrease in Shareholding 0 0 0 0
during the year specifying the reasons for increase
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 755 0.00 755 0.00
9 Shri Arhant Jain
At the beginning of the year 5031 0.01 5031 0.01
Date wise Increase / Decrease in Share holding 0 0 0 0
during the year specifying the reasons for increase
/ decrease (e.g. allotment / transfer / bonus/ sweat
equity etc):
At the End of the year 5031 0.01 5031 0.01

Annual
Report 201516 49
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(H in Crores)
Secured Loans Unsecured Loans Deposits Total
excluding deposits Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 668.14 31.16 19.96 719.25
ii) Interest due but not paid 3.79 - - 3.79
iii) Interest accrued but not due 5.64 0.24 1.90 7.78
Total (i+ii+iii) 677.57 31.40 21.86 730.82
Change in Indebtedness during the financial year
• Addition Principal 175.00 1.88 13.67 190.55
• Addition Interest 9.28
• Reduction Principal (162.51) - (11.24) (173.75)
• Reduction Interest (11.57)
Net Change 14.50
Indebtedness at the end of the financial year
i) Principal Amount 680.63 33.04 22.38 736.05
ii) Interest due but not paid 4.08 - 1.27 5.35
iii) Interest accrued but not due 3.62 0.31 3.93
Total (i+ii+iii) 688.33 33.35 23.65 745.33

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(Amount in H)
Sl. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
No. Shri Vijay Shri Ashok Shri Gaurav Shri Gautam
Kumar Goel Kumar Goel Goel Goel
1. Gross salary
(a) Salary as per provisions contained in 7500000 7500000 7500000 7500000 30000000
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax 1327500 1238843 1238843 1327500 5132686
Act, 1961
(c) Profits in lieu of salary under section 17(3)
Income- tax Act, 1961
2. Stock Option
3. Sweat Equity
4. Commission 1400000 1400000 1400000 - 4200000
- as % of profit
- others, specify...
5. Others, please specify
Total (A) 10227500 10138843 10138843 8827500 39332686
Ceiling as per the Act*

*The Company is paying remuneration to the Executive Directors as per Schedule V of Companies Act, 2013 (erstwhile Schedule XIII of
Companies Act, 1956).

50 Dhampur Sugar Mills Limited

B. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(Amount in H)
Sl. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
No. Shri Sandeep Kumar Sharma
1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 1470850 1470850
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 111514 111514
2. Stock Option
3. Sweat Equity

FINANCIAL STATEMENTS
4. Commission
- as % of profit
- others, specify...
5. Others, please specify
Total (A) 1582364 1582364
Ceiling as per the Act*

C. Remuneration to other directors:

MANAGEMENT REPORTS
(Amount in H)
Sl. Particulars of Remuneration Name of Directors Total Amount
No. Shri A.K. Gupta Shri Rahul Bedi Shri Harish
Saluja
1. Independent Directors
• Fee for attending board committee meetings 182650 68500 183950 435100
• Commission - - - -
• Others, please specify

CORPORATE OVERVIEW
Total (1) 182650 68500 183950 435100
2. Other Non-Executive Directors
• Fee for attending board committee meetings - - - -
• Commission
• Others, please specify
Total (1)
Total (B) = (1 + 2) 182650 68500 183950 435100
Total Managerial Remuneration 182650 68500 183950 435100

Overall Ceiling as per the Act – The Company is paying only sitting fees to its Non- Executive and Independent Directors.

Annual
Report 201516 51
 (Amount in H)
Sl. Particulars of Remuneration Name of Directors Total Amount
No. Shri M. P. Shri Priya Brat Smt. Nandita
Mehrotra Chaturvedi
1. Independent Directors
• Fee for attending board committee meetings 228200 273850 125500 627550
• Commission - - - -
• Others, please specify
Total (1) 228200 273850 125500 627550
2. Other Non-Executive Directors
• Fee for attending board committee meetings - - - -
• Commission
• Others, please specify
Total (1)
Total (B) = (1 + 2) 228200 273850 125500 627550
Total Managerial Remuneration 228200 273850 125500 627550

Overall Ceiling as per the Act – The Company is paying only sitting fees to its Non- Executive and Independent Directors.

B. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

(Amount in H)
Sl. Particulars of Remuneration Name of MD/WTD/ Manager
No. CEO Company CFO Total
Secretary
1. Gross salary
(a) Salary as per provisions contained in section 17(1) of the 1035416 1035416
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income- tax
Act, 1961
2. Stock Option
3. Sweat Equity
4. Commission
- as % of profit
- others, specify...
5. Others, please specify
- Provident Fund
Total (A) 1035416 1035416

52 Dhampur Sugar Mills Limited

VII. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:
(H in Crores)
Type Section of the Brief Descrip- Details of Authority [RD/ Appeal made,
Companies tion Penalty/ NCLT/COURT] if any (give
Act Punishment Details)
Compounding
fees imposed
A. COMPANY
Penalty -- -- -- -- --
Punishment -- -- -- -- --
Compounding -- -- -- -- --

FINANCIAL STATEMENTS
B. DIRECTORS
Penalty -- -- -- -- --
Punishment -- -- -- -- --
Compounding -- -- -- -- --
C. OTHER OFFICERS IN DEFAULT
Penalty -- -- -- -- --
Punishment -- -- -- -- --
Compounding -- -- -- -- --

MANAGEMENT REPORTS
CORPORATE OVERVIEW

Annual
Report 201516 53
Report on Corporate Governance
COMPANY’S PHILOSOPHY ON CORPORATE BOARD OF DIRECTORS:
GOVERNANCE: The Company’s Board of Directors comprises promoters, executives,
The Company possesses an ethical mindset about the values of non-executives, nominee(s) and Independent Directors. There are
good Corporate Governance, that involves support from diversified 12 Directors on the Board as on 31st March, 2016, of whom five are
categories of people and agencies. The following attributes are whole-time Directors, including Chairman and Vice Chairman.
significant for good Corporate Governance:
During the period from 1st April, 2015 to 31st March, 2016, five
a) Transparency in policies and action. Board meetings were held on:
b) Independence to develop and maintain a healthy work culture. 1) 27th May, 2015
c) Accountability for performance. 2) 8th August, 2015
d) Responsibility towards the society and for its core values. 3) 21st September, 2015
e) Growth for stakeholders. 4) 07th November, 2015
The Company makes an honest endeavour to uphold these 5) 09th February, 2016
attributes in all its operational aspects.

The attendance of each Director at Board meetings, the last Annual General Meeting and number of other directorships and chairmanships/
memberships of committees of each Director in various companies:
Name of Director(s) Category No. of Board Last AGM No. of other directorships and committee
meeting attended memberships/chairmanships
attended Other Committee Committee
directorships memberships chairmanships
Shri V. K. Goel P,C & ED 3 Yes 4 None None
Shri A. K. Goel P & VC 4 No 1 0 None
Shri Gaurav Goel P & MD 5 Yes 13 5 2
Shri Gautam Goel P & MD 5 No 6 None None
Shri A. K. Gupta ID & NED 3 Yes 10 2 1
Shri Priya Brat ID & NED 5 Yes 4 5 3
Shri M. P. Mehrotra ID & NED 5 Yes 14 5 7
Shri Harish Saluja ID & NED 5 No 7 1 None
Shri Rahul Bedi ID & NED 3 No None None None
Shri Sandeep Kumar Sharma WTD 5 Yes None None None
Ms. Nandita Chaturvedi ID & NED 5 No None None None
Mr. Darshan Lal Mittal** Nominee Director 1 - None None None
Shri S.K Wadhwa* Nominee Director 0 No None None None
*Ceased to be director w.e.f 07.11.2015 , since nomination by PNB withdrawn.
** Appointed as Nominee Director w.e.f 07.11.2015

P, C & ED : Promoter, Chairman and Executive Director; WTD : Whole-time Director;

VC : Vice Chairman; NED : Non-Executive Director;
MD : Managing Director; ND : Nominee Director.
ID : Independent Director;

54 Dhampur Sugar Mills Limited

Information placed before the Board: b) Mr. Gautam Goel, Managing Director of the Company, aged
The Company provides the information to the Board and Board 42, He has been affiliated with our Company and has been
Committees as set out in Regulation 17 read with Part A of Schedule serving on our Board since 1994. Mr. Goel has over a decade
II of Listing Regulations, 2015 to the extent it is applicable and of experience in the sugar industry and has been the president
relevant. Such information is submitted either as part of the agenda of the Indian Sugar Mills Association during the year 2011-
papers of the respective meetings or by way of presentations and 2012.
discussions during the meeting.
Directorship in other companies: 1) Goel Investments Limited
Post Meeting Mechanism 2) Shudh Edible Products Ltd. 3) Saraswati Properties Ltd 4)
The important decisions taken at the Board/Board Committee Sonitron Ltd. 5) Dhampur International Pte. Ltd. ( Singapore), 6)
meetings are communicated to the concerned departments/ Dhampur Global Pte Ltd. (Singapore)

FINANCIAL STATEMENTS
divisions.
Committee/Executive position held in other Companies: - Nil
Board Support
c) Mr. Sandeep Kumar Sharma, aged 58, is a whole time director
The Company Secretary attends the Board and Committee meetings
of our Company. He has been associated with our Company
and advises the Board on compliances with applicable laws and
since 1980 and has over three decades of experience in
governance.
administration and operations of sugar mills, power generation
Brief resume of the Directors being reappointed, nature of their plants and chemical plants.
expertise in specific functional areas and names of companies in
which they hold directorship and the membership of committees AUDIT COMMITTEE:

MANAGEMENT REPORTS
of the Board are furnished here under: The powers, role and terms of reference of the Audit Committee
cover the areas as contemplated under Regulation 18 of SEBI (Listing
a) Mr. Gaurav Goel, Managing Director of the Company, aged
Obligations and Disclosure Requirements) Regulation 2015 and
43 years. He has been affiliated with our Company and has
Section 177 of the Companies Act, 2013 and such other functions
been serving on our Board since 1994. Mr. Goel is a Business
as may be specifically delegated by the Board from time to time. The
Management Graduate from American College of London,
powers include investigating any activity within its terms of reference;
United Kingdom. With over two decades of experience in the
seeking information from any employee; obtaining outside legal or
sugar industry, Mr. Goel is currently the Director of Indian Sugar
other professional advice; and securing attendance of outsiders

CORPORATE OVERVIEW
Exim Corporation Limited and the member of a committee
with relevant expertise, if considered necessary. The role includes
of Indian Sugar Mills Association and was the member of The
oversight of Company’s financial reporting process and disclosure
Associated Chambers of Commerce and Industry of India.
of financial information to ensure that the financial statement is
During the year 2006-2007, Mr. Goel was also the president of
correct, sufficient and credible; recommending the appointment,
the Entrepreneurs Organization, Delhi Chapter.
re-appointment, if required, replacement or removal of statutory
Directorship in other companies: 1) Goel Investments Limited auditors, fixation of audit fees and approval of payment for any
2) Shudh Edible Products Ltd. 3) Mangalam Cement Limited 4) other services, as permitted; reviewing the adequacy of internal
Decon Mercantile Pvt. Ltd. 5) Francis Kleon & Co. ( Bombay ) audit function; discussing with internal auditors any significant
Pvt Ltd. 6) Star Metal Refinery Pvt. Ltd. 7) YPO ( Delhi Chapter) findings and follow-up thereon; reviewing with the management
U/s 25 8) Dhampur International Pte. Ltd. ( Singapore), 9) YPO annual and quarterly financial statements before submission to
( Delhi Chapter) U/S 25 , 10) Venus India Asset- Finance Private the Board for approval; approval or any subsequent modification
Limited, 11) Dhampur Global Pte Ltd. (Singapore), 12) Venus of any transactions of the Company with related parties; review
India Structured Finance (Offshore) Fund Limited , Tortola 13) and monitor the auditors independence and performance and
Venus India Structured Finance Master Fund Limited, Tortola effectiveness of audit process; scrutiny of inter corporate loans and
14) Indian Sugar Exim Corporation Limited investments, if any; evaluation of internal financial controls and risk
management system; and reviewing the functioning of the Whistle
Committee/Executive position held in other Companies: - 3
blower mechanism.

Annual
Report 201516 55
The constitution of the Audit Committee also meets with the senior management in accordance with the criteria laid down, and
requirements under Section 177 of the Companies Act, 2013. The recommend to the Board their appointment and removal.
members of the Audit Committee comprise three Independent
Non-Executive Directors and the Vice Chairman. Remuneration Policy
The objective and broad framework of the Remuneration Policy
Details of the composition of the Audit Committee and the
is to consider and determine the remuneration, based on the
attendance at the meetings held are as follows:
fundamental principles of payment for performance, for potential,
Sl. Name of Directors Meetings and for growth. The Remuneration Policy reflects on certain guiding
No. attended principles of the Company such as aligning remuneration with
1 Shri M. P. Mehrotra, Chairman 4 the longer term interests of the Company and its shareholders,
2 Shri Gaurav Goel 4 promoting a culture of meritocracy and creating a linkage to
3 Shri A. K. Gupta 3 corporate and individual performance, and emphasising on line
4 Shri Priya Brat 4 expertise and market competitiveness so as to attract the best

Shri Arhant Jain, Executive President (Finance)-cum Company talent. It also ensures the effective recognition of performance

Secretary acts as the Secretary to the Committee. and encourages a focus on achieving superior operational results.
The Nomination and Remuneration Committee recommends the
During the period from 1st April, 2015 to 31st March, 2016, four remuneration of Directors and Key Managerial Personnel, which
committee meetings were held on: is approved by the Board of Directors, subject to the approval of
1) 27th May, 2015 shareholders, where necessary. The level and composition of
remuneration shall be reasonable and sufficient to attract, retain
2) 8th August, 2015
and motivate the directors, key managerial personnel and other
3) 07th November, 2015
employees of the quality required to run the Company successfully.
4) 09th February, 2016 The relationship of remuneration to performance is clearly framed
The Committee, inter-alia, reviewed the financial statements in order to meet appropriate performance benchmarks. The
including Auditors’ Reports for the year ended 31st March, 2016 and remuneration to directors, key managerial personnel and senior
recommended its adoption, records of related party transactions, management personnel should also involve a balance between
reports related to compliance of laws and risk management. fixed and incentive pay reflecting short and long term performance
objectives appropriate to the working of the Company.
NOMINATION AND REMUNERATION COMMITTEE
Details of the composition of the Nomination and Remuneration
The powers, role and terms of reference of the Nomination and
Committee and the attendance at the meetings held is as follows:
Remuneration Committee covers the areas as contemplated
under Regulation 19 of the Securities and Exchange Board of India Sl. Name of Directors Meetings
(Listing obligation and Disclosure requirements) Regulation 2015 No. attended
and Section 178 of the Companies Act, 2013, besides other terms 1 Shri M. P. Mehrotra, Chairman 1
as may be referred by the Board of Directors. The role includes 2 Shri Harish Saluja 1
formulation of criteria for determining qualifications, positive 3 Shri A. K. Gupta 0
attributes and independence of a director and recommending to 4 Shri Priya Brat 1
the Board a policy, relating to the remuneration of the directors, key Shri Arhant Jain, Executive President (Finance)-cum Company
managerial personnel and other employees; formulation of criteria Secretary also acts as the Secretary to the Committee.
for evaluation of Independent Directors and the Board; devising
During the period from 1st April, 2015 to 31st March, 2016, one
a policy on Board diversity; and identification of persons who
committee meeting was held on:
are qualified to become directors and who may be appointed in
27th May, 2015

56 Dhampur Sugar Mills Limited

Details of remuneration to the Directors for the year ended 31st March, 2016

Name of the Salary Benefits Bonus Commission Sitting Fees Service Contract/Notice Period/Severance Fees
Directors (J) (J) (J) (J) (J)
Shri V. K Goel 7500000 1327500 - 1400000 - Term valid till 31.01.2016 and Re-appointed up to
31.03.2018 , subject to approval of members in the
ensuing Annual General Meeting. No Notice period
and no severance fees.
Shri A.K Goel 7500000 1238843 - 1400000 - Term valid till 31.03.2015 and Re-appointed up to
31.03.2018 , subject to approval of members in the
ensuing Annual General Meeting. No Notice period
and no severance fees.

FINANCIAL STATEMENTS
Shri Gaurav Goel 7500000 1238843 - 1400000 - Term valid till 31.03.2015 and Re-appointed up to
31.03.2018 , subject to approval of members in the
ensuing Annual General Meeting. No Notice period
and no severance fees.
Shri Gautam Goel 7500000 1327500 - - - Term valid till 31.01.2016 and Re-appointed up to
31.03.2018 , subject to approval of members in
the ensuing Annual General Meeting and Central
Government. No Notice period and no severance
fees.
Shri Sandeep Kumar 1470850 111514 - - - Term of office valid till 22.06.2017. No Notice period

MANAGEMENT REPORTS
Sharma and no severance fees.
Shri A.K. Gupta - - - - 182650 Appointed as Independent Director up 25.09.2019.
Shri M.P. Mehrotra - - - - 228200 Appointed as Independent Director up 25.09.2019.
Shri Harish Saluja - - - - 183950 Appointed as Independent Director up 25.09.2019.
Shri Rahul Bedi - - - - 68500 Appointed as Independent Director up 25.09.2019.
Shri Priya Brat - - - - 273850 Appointed as Independent Director up 25.09.2019.
Ms. Nandita - - - - 125500 Appointed as additional Independent Director up to
Chaturvedi the conclusion of ensuing Annual General Meeting.

CORPORATE OVERVIEW
Performance Evaluation: such as level of engagement and contribution, independence of
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 judgement, meeting risk management and competition challenges,
of the Listing Agreement, the Board has carried out the performance compliance and due diligence, financial control, safeguarding the
evaluation of its own performance and of the Board Committees, interest of the Company and its minority shareholders etc.
viz. Audit Committee, Nomination and Remuneration Committee,
The performance evaluation of the Independent Directors was
CSR Committee and Stakeholders’ Relationship Committee as well
carried out by the entire Board. The performance evaluation of the
as evaluation of performance of Directors individually. A structured
Chairman and the Non-Independent Directors was carried out by
questionnaire was prepared after taking into consideration inputs
the Independent Directors. The Nomination and Remuneration
received from the Directors, covering various aspects of the Board’s
Committee also carried out evaluation of every director’s
functioning such as adequacy of the composition of the Board
performance. The Directors expressed satisfaction with the
and its Committees, Board culture, execution and performance
evaluation process.
of specific duties, obligations, corporate governance practices
and stakeholders’ interests, etc. A separate exercise was carried Policy on Board diversity
out to evaluate the performance of individual Directors including The Board of Directors shall have the optimum combination of
the Chairman of the Board, who were evaluated on parameters Directors from different areas / fields like production, Management,

Annual
Report 201516 57
Quality Assurance, Finance, Sales and Marketing, Supply chain, FAMILIARISATION PROGRAMME FOR DIRECTORS:
Research and Development, Human Resources etc or as may be The Company has put in place a system to familarise the
considered appropriate. Independent Directors about the Company , its products, business
and the on-going events relating to the Company.
STAKEHOLDER’S RELATIONSHIP COMMITTEE
The “Stakeholder’s Relationship Committee comprises Shri A. K. The newly appointed director is explained his/her role, duties,
Gupta, Chairman; Shri Priya Brat; and Shri Harish Saluja. function and responsibilities expected of him/her while acting as
Director of the Company.
The Committee, inter-alia, reviews issue of duplicate certificates and
oversees and reviews all matters connected with the Company’s The directors have been explained the compliance required
transfers of securities. It looks into redressal of shareholder’s/ from them under Companies Act, 2013 and as per SEBI (Listing
investors’ complaints related to transfer of shares, non-receipt of Obligations and Disclosure Requirements) Regulations, 2015 .
balance sheet, non-receipt of declared dividends, among others. The details of Familiarisation programme for Directors are available
It oversees the performance of the Company’s Registrar and Transfer on the Company’s website www.dhampur.com.
Agent, and recommends measures for overall improvement in the
SUBSIDIARY:
quality of investor services. Besides, it monitors implementation and
The Company does not have any material subsidiary as defined
compliance of the Company’s Code of Conduct for Prohibition of
under regulation 24 of SEBI (Listing Obligations and Disclosure
Insider Trading in pursuance of SEBI (Prohibition of Insider Trading)
Requirements) Regulations, 2015. However Policy for Determining
Regulations, 2015. The Board has delegated the power of approving
Material subsidiaries has been formulated and uploaded on the
transfer of securities to Shri Gaurav Goel, the Company’s Managing
website of the Company i.e www.dhampur.com.
Director.

Besides the committee shall have such terms of reference, role, Insider Trading Code:
responsibility and powers as specified in Section 178 of the The SEBI (Prohibition of Insider Trading ) Regulations, 2015 which
Companies Act, 2013 and as specified in the Securities and Exchange is effective from 15th May, 2015 is applicable to Promoters and
Board of India (Listing Obligation and Disclosure requirements) Promoter’s Group , all Directors and such Designated Employees
Regulation, 2015, as amended from time to time.” who are expected to have access to unpublished price sensitive
information relating to the Company. The Company Secretary is the
During the period from 1st April, 2015 to 31st March, 2016, four
Compliance officer for monitoring adherence to the said regulations.
Committee meetings were held on:
The Company has also formulated ‘The Code of Practices and
1) 27th May, 2015
Procedures for Fair Disclosure of Unpublished Price Sensitive
2) 8th August, 2015
Information (UPSI) in compliance with SEBI (Prohibition of Insider
3) 07th November, 2015 Trading) Regulations, 2015. This code is displayed on the Company’s
4) 09th February, 2016 website i.e www.dhampur.com.

The attendance at the meetings are as follows:

STATUS OF INVESTORS’ GRIEVANCES:
Sl. Name of Directors Meetings The total number of correspondence/complaints received during
No. attended 2015-16 is 152 and all of them have been dealt with to the
1 Shri A. K. Gupta, Chairman 3 satisfaction of shareholders during the period ended 31st March,
2 Shri Priya Brat 4 2016 and no demat request/transfer was pending as on that date.
3 Shri Harish Saluja 4
COMPLIANCE OFFICER
Shri Arhant Jain, Executive President (Finance)-cum Company
Mr. Arhant Jain, Executive President (Finance) & Company Secretary,
Secretary acts as the Secretary to the Committee.
is the Compliance Officer of the Company.

58 Dhampur Sugar Mills Limited

The Company has made a separate e- mail id i.e. investordesk@ 188 of the Companies Act, 2013. There were no materially
dhampur.com for the benefit of investors which hs also been significant related party transactions during the year.
uploaded on the website of the Company.
Related Party transactions have been disclosed in the notes
to accounts forming part of financial statements. A statement
CORPORATE SOCIAL RESPONSIBILITY
in summary form of transactions with related parties in the
As per the requirement of Companies Act, 2013, The Committee
ordinary course of business and on arm’s length basis is placed
named as Corporate Social Responsibility Committee (CSR
before the Audit Committee periodically for its review.
Committee) was constituted on 21st May, 2014 which comprises of
three directors Mr. VK Goel, Chairman, Mr. Gaurav Goel, Managing Pursuant to the requirement of Regulation 23 of SEBI ( Listing
Director and Mr. Ashwani K Gupta, Independent Director. Obligations and Disclosure Requirements)Regulations, 2015.
The Related Party Transactions Policy as approved by the

FINANCIAL STATEMENTS
The committee’s responsibility is to assist the Board in discharging
Board is uploaded on the Company’s website at http://www.
its social responsibilities by way of formulating and monitoring
dhampur.com
implementation of the framework of Corporate Social Responsibility
policy as specified in Schedule VI of the Companies Act, 2013. None of the transactions of the Company with related parties
was in conflict with the interest of the Company .
The Company formulated CSR policy, which is uploaded on the
website of the Company (weblink http://dhampur.com/Policies. III. Details of non-compliance by the Company, penalties, strictures
aspx ) imposed on the Company by Stock Exchange or SEBI, or any
statutory authority, on any matter related to capital markets,
The CSR committee met once during the year on 8th August, 2015.

MANAGEMENT REPORTS
during the last three years: Nil
INDEPENDENT DIRECTORS MEETING IV. Whistle Blower policy
During the year under review, The Independent Directors met on The Company promotes ethical behaviour in all its business
09th February, 2016, interalia, to: activities and has put in place a mechanism for reporting illegal
1. Review the performance of non-independent directors and the or unethical behaviour. The Company has a Vigil mechanism
Board as a whole; and Whistle blower policy under which the employees are free
to report violations of applicable laws and regulations and the
2. Review the performance of the Chairman of the Company,
Code of Conduct. The reportable matters are to be disclosed

CORPORATE OVERVIEW
taking into account the views of executive directors and non-
to the whistle Blower Committee made for the purpose.
executive directors;
Employees can also report to the Chairman of the Audit
3. Assess the quality, quantity and timeliness of flow of information Committee. During the year under review, no employee was
between the Company management and the Board that is denied access to the Audit Committee.
necessary for the Board to effectively and reasonably perform
V. The Company has followed the Accounting standards referred
its duties.
to in section 133 of Companies Act, 2013 and other applicable
laws and regulations for the preparation of financial Statements.
DISCLOSURES AND AFFIRMATION
The Significant accounting policies applied have been set out
I. Compliance with Mandatory Requirements:
in the notes to the financial statements.
The Company is in compliance with all requirements under SEBI
( Listing Obligations and Disclosure Requirements) Regulations, VI. The Company has laid down procedures for Risk Assessment
2015 and Minimization, and the same are periodically reviewed by
the Board. The Company has adequate internal control systems
II. Related Party Transactions
to identify risk and ensuring their effective control.
All transactions entered into with related parties during the
financial year were in the ordinary course of business and on VII. The outstanding 1500000 warrants, each having conversion
arm’s length basis and do not attract the provisions of Section option to one Equity Share has been exercised by the warrants

Annual
Report 201516 59
 holders and as a result 1500000 Equity Shares were allotted III. The Company’s financial results and official press releases are
during the year. displayed on Company’s website (www.dhampur.com) within
the time prescribed in this regard.
MEANS OF COMMUNICATION
IV. The Company’s website also displays Presentations, if any made
I. The Company’s Quarterly Financial results in the proforma
to the media, analysts, institutional investors, fund managers,
prescribed by the Stock Exchanges pursuant to Regulation
etc. from time to time.
33 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 are approved and taken on record by the V. The quarterly results, shareholding patterns, periodical
Board of Directors and submitted to the stock exchanges. compliances and all other corporate communications to the
Stock Exchanges viz. National stock Exchange of India Limited
II. The results are normally published in Business Standard/
and BSE Limited are filed electronically to them through NEAPS
Financial Express/Economic Times (in English) and Jan Satta/
portal on NSE and BSE listing Centre with BSE.
Amar Ujala/Veer Arjun (in Hindi).

GENERAL MEETINGS:
Details of Annual General Meetings are as follows:
i. Location and time, where last three AGMs were held.
Year Location Date Time
2014-15 Registered office 11th September, 2015 2.00 p.m
P.O. Dhampur (Bijnor)
2013-14 Registered office 26th September, 2014 2.00 p.m
P.O. Dhampur (Bijnor)
2012-13 Registered office 20th September, 2013 2.00 p.m
P.O. Dhampur (Bijnor)

ii. Whether special resolutions were passed in the previous b. To create securities in favour of Lenders u/s 180(1)(a) of the
3 AGMs? : Yes Companies Act, 2013.
Financial Year 2014-15 as under:
c. Borrowing limits of the Company u/s 180(1)(c) of the Companies
a. Invitation and Acceptance of Fixed Deposits from the members
Act, 2013.
and public
Financial Year 2012-13 as under :
b. Reappointment of Shri V. K. Goel , Chairman and Executive
Reappointment of Shri V. K. Goel , Chairman of the Company.
Director of the Company and to fix the remuneration.
iii. Whether special resolutions were put through postal
c. Reappointment of Shri A. K. Goel Vice Chairman and Excutive ballot last year? : No
Director of the Company and to fix the remuneration.
iv. Are votes proposed to be conducted through postal
d. Reappointment of Shri Gaurav Goel as Managing Director of ballot this year? : No
the Company and to fix the remuneration.
GENERAL SHAREHOLDER INFORMATION
e. Reappointment of Shri Gautam Goel as Managing Director of 81st Annual General Meeting:
the Company and to fix the remuneration.
Date: 30th August, 2016
f. Borrowing powers of the Company. Time: 2 p.m
Financial Year 2013-14 as under : Venue: Registered office at Dhampur, Dist.Bijnor (U.P.)
a. Invitation and Acceptance of Fixed Deposits from the Members
Tentative financial calendar
and Public

60 Dhampur Sugar Mills Limited

Board meeting to approve quarterly financial results : - The Bombay Stock Exchange Limited (BSE)

Period quarter ending Proposed Board meeting dates - The National Stock Exchange of India Limited (NSE)
30th June, 2016 End July, 2016 The annual listing fees for the year 2016-17 have been duly paid to
30th September, 2016 End October, 2016 all the above stock exchanges.
31st December, 2016 End January, 2017
Stock exchanges Stock code
31st March, 2017 End May, 2017
- The Bombay Stock Exchange Limited (BSE) 500119
Date of Book Closure - The National Stock Exchange Dhampursug
From Tuesday, 23rd August, 2016 to Tuesday, 30th August, 2016 of India Limited (NSE)
(both days inclusive)
The equity shares available for dematerialization are as follows

FINANCIAL STATEMENTS
Listing on stock exchanges ISIN No.INE041A01016 with NSDL and CDSL.

Stock market data from 1st April, 2015 to 31st March, 2016
Months National Stock Exchange Bombay Stock Exchange
High (J) Low (J) High (J) Low (J)
March, 2016 97.20 55.00 97.40 53.60
February, 2016 70.50 46.80 70.50 48.00
January, 2016 79.75 57.50 79.70 79.70
December, 2015 67.00 56.50 66.90 56.40

MANAGEMENT REPORTS
November, 2015 74.10 53.10 74.00 53.30
October, 2015 64.30 31.10 64.10 31.45
September, 2015 32.30 27.30 31.60 27.40
August, 2015 36.20 28.65 36.00 28.55
July, 2015 33.45 29.00 34.00 29.00
June, 2015 32.90 28.35 33.45 28.30
May, 2015 36.85 31.05 36.50 33.05
April, 2015 41.00 32.35 40.90 33.00

CORPORATE OVERVIEW
Share price performance in comparison to broad based indices-BSE Sensex and NSE as on 31st March, 2015 and 31st
March 2016
FY 15-16 BSE NSE
DSML Sensex DSML Sensex
01.04.2015 36.50 27011.31 36.80 8586.25
31.03.2016 93.05 25341.86 93.05 7738.40

REGISTRARS & SHARE TRANSFER AGENTS SHARE TRANSFER SYSTEM

M/s Alankit Assignments Limited, At present, share transfers which are received in physical form are
Alankit House, processed and the share certificates returned within the stipulated
4E/2 Jhandewalan Extension, period from the date of receipt, subject to the documents being
New Delhi 110 055 valid and complete in all respects.
Ph: 011 – 42541953,
As per the SEBI circular, it has become mandatory for transferee(s) to
Fax : 011- 42541201
furnish a copy of his/her/their PANCARD for registration of transfer
E- mail : rta@alankit.com
of shares in Physical form.

Annual
Report 201516 61
Distribution of shareholding as on 31st March, 2016
Sl. Shareholding of normal value of H10 No. of share- Per cent of total Share amount (J) Per cent of total
No each holders shareholders equity
1 1 to 5000 36372 90.996 35113500 5.831
2 5001 to 10000 1721 4.306 13993590 2.324
3 10001 to 20000 761 1.904 11844530 1.967
4 20001 to 30000 311 0.778 8024270 1.333
5 30001 to 40000 150 0.375 5458140 0.906
6 40001 to 50000 148 0.37 7072790 1.175
7 50001 to 100000 221 0.553 17317140 2.876
8 100001 to ABOVE 287 0.718 503325390 83.588
TOTAL 39971 100 602149350 100

CATEGORY HOLDING %
1 Promoter 9212604 15.30
2 Associate Company 14797273 24.57
3 Director and Relatives 85364 0.14
4 Person Acting in Concert 9490396 15.76
5 Banks/FI 2101989 3.49
6 FII 1447 0.00
7 Corporate Bodies 7142564 11.86
8 Resident Indian Public 16309698 27.08
9 NRI/OCB/Foreign Nationals 1027718 1.71
10 Mutual Funds 3515 0.01
11 Trust 12 0.00
Grand Total 60214935 100

DEMATERIALISATION OF SHARES Directors and Senior Management personnel and the same has
Over 99.21 per cent of the outstanding shares have been been posted on the Company’s website.
dematerialized up to 31st March, 2016. Trading in equity shares
of the Company is permitted only in dematerialised form w.e.f
DISCRETIONARY REQUIREMENTS
The Board: The Company has an Executive Chairman.
October/November, 2000 as per notification issued by the Securities
and Exchange Board of India (SEBI). Shareholders Rights: The quarterly/half-yearly results are published
in the newspapers and hosted on the Company’s website www.
Outstanding GDRs/ADRs/Warrants or any convertible
dhampur.com and are filed to the Stock Exchanges electronically
instruments , conversion date and likely impact on equity :
through NEAPS portal on NSE and BSE listing Centre with BSE
The outstanding 1500000 warrants, each having conversion option
Limited . The same are not sent to shareholders individually.
to one Equity Share has been exercised by the warrants holders and
as a result 1500000 Equity Shares were allotted during the year. Audit Qualifications: The Company strives towards ensuring
unqualified financial statements. There are no qualifications to the
CODE OF CONDUCT Auditor’s Report for the year under review.
The Company has adopted a code of conduct for its Board of

62 Dhampur Sugar Mills Limited

Separate posts of Chairman and Managing Director /CEO: The ADDRESS FOR CORRESPONDENCE:
Company has different persons for the post of Chairman and Dhampur Sugar Mills Limited,
Managing Director. CIN: L15249UP1933PLC000511
241 Okhla Industrial Estate,
PLANT LOCATIONS: Phase – III, New Delhi 110 020
Sugar units: Ph: 011-30659400, Fax: 011-26935697
Dhampur, Dist. Bijnor (U.P.)
E-mail: investordesk@dhampur.com
Asmoli, Dist. Moradabad (U.P.)
Mansurpur, Dist. Muzaffarnagar (U.P.) Declaration on the Code of Conduct
Rajpura, Dist. Budaun (U.P.) Pursuant to Part D of Schedule V of SEBI (Listing obligations and
Meerganj, Dist. Bareilly (U.P) Disclosure Requirement) Regulations, 2015 of the Listing Agreement

FINANCIAL STATEMENTS
with stock exchanges, I, Arhant Jain, Executive President (Finance) &
Chemical units: Company Secretary of Dhampur Sugar Mills Limited, declare that
Dhampur, Dist. Bijnor (U.P.)
all the Board Members and Senior Executives of the Company have
Asmoli , Dist. Sambhal (U.P)
affirmed their compliance with the Code of Conduct during the
Co-generation units: year ended 31st March, 2016.
Dhampur, Dist. Bijnor (U.P.)
Asmoli, Dist. Moradabad (U.P.)
Mansurpur, Dist. Muzaffarnagar (U.P.)

MANAGEMENT REPORTS
Rajpura, Dist. Budaun (U.P.)
Meerganj, Dist. Bareilly (U.P)

CORPORATE OVERVIEW

Annual
Report 201516 63
Certificate by CEO/CFO
for the period from 1st April, 2015 to 31st March, 2016

The Board of Directors

Dhampur Sugar Mills Limited

We Gaurav Goel, Managing Director and Arhant Jain, Executive President (Finance) & Company Secretary of Dhampur Sugar Mills Limited, to
the best of our knowledge and belief, certify that;

a) We have reviewed the Balance Sheet, Profit and Loss Account, Cash Flow Statement and the Director’s report for the period from 1st
April, 2016 to 31st March, 2016 and based upon our knowledge and information certify that :-

i. These statements do not contain any materially untrue statement or omit any material fact or contain the statement that might be
misleading,

ii. These statements together present a true and fair view of the Company’s affairs and are in compliance with existing Accounting
Standards and other applicable laws and regulations.

b) There are, to best of our knowledge and belief no transactions entered into by the company during the period, which are fraudulent,
illegal or violative of the Companies Code of Conduct.

c) We accept the responsibility for establishing and maintaining internal control for financial reporting for the company and we have:

i) Evaluated the effectiveness of the internal control system of the company.

ii) Disclosed to the auditors and Audit Committee of the Board, deficiencies in the design or operation of internal controls, if any of
which we are aware, and

iii) Necessary steps taken /proposed to be taken to ratify these deficiencies.

d) We have indicated to auditors and the Audit Committee of the Board that there have been:

i) no significant changes in internal control over the financial reporting during the period,

ii) no significant changes in accounting policies during the period

iii) no instances of significant fraud of which we have become aware and the involvement therein, if any,of the management or an
employee having a significant role in the company’s internal control system.

Place: New Delhi Gaurav Goel Arhant Jain

Date:10.05.2016 Managing Director Chief Financial Officer and Company Secretary

64 Dhampur Sugar Mills Limited

Certificate on Corporate Governance
To
The Members of
Dhampur Sugar Mills Limited

We have examined the compliance of conditions of Corporate Governance by Dhampur Sugar Mills Limited for the period ended 31st March,

FINANCIAL STATEMENTS
2016 as stipulated in Regulation 34(3) read with Schedule V part E of SEBI ( Listing Obligations and Disclosure Requirements ) Regulation 2015.

The compliance of conditions of Corporate Governance is the responsibility of the management, our examination was limited to procedures
and in implementations there of, adopted by the Company, for ensuring the compliance of the conditions of the Corporate Governance. It is
neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the company has complied
with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Agreements.

We state that in respect of Investor Grievance(s) received during the period ended 31st March, 2016, no such grievances are pending for

MANAGEMENT REPORTS
a period exceeding one month against the company as per the records maintained by company and presented to the Investor Grievance
Committee.

We further state that such compliance is neither an assurance as to the future viability of the company nor the efficiency or effectiveness with
which the management has conducted the affairs of the company.

For GSK & Associates

CORPORATE OVERVIEW
Saket Sharma
Place: New Delhi Company Secretary
Dated:10.05.2016 C.P. No. 2565

Annual
Report 201516 65
Independent Auditors’ Report
To
The Members of
Dhampur Sugar Mills Ltd.

Report on the Consolidated Financial Statements provisions of the Act, the accounting and auditing standards and
We have audited the accompanying consolidated financial matters which are required to be included in the audit report under
statements of Dhampur Sugar Mills Limited (hereinafter referred to the provisions of the Act and the Rules made there under.
as ‘the Holding Company’), its subsidiary (the Holding Company and
We conducted our audit in accordance with the Standards on
its subsidiary together referred to as “the Group”), comprising the
Auditing specified under sub section 10 of Section 143 of the Act.
consolidated Balance Sheet as at March 31, 2016, the consolidated
Those Standards require that we comply with ethical requirements
Statement of Profit and Loss and consolidated Cash Flow Statement
and plan and perform the audit to obtain reasonable assurance
for the year then ended, and a summary of significant accounting
about whether the consolidated financial statements are free from
policies and other explanatory information (hereinafter referred to
material misstatement.
as “the consolidated financial statements”).
An audit involves performing procedures to obtain audit evidence
Management’s Responsibility for the Consolidated Financial about the amounts and the disclosures in the consolidated
Statements financial statements. The procedures selected depend on the
The Holding Company’s Board of Directors is responsible for the auditors’ judgment, including the assessment of the risks of
preparation of these consolidated financial statements in terms of material misstatement of the consolidated financial statements,
the requirements of the Companies Act, 2013 (hereinafter referred whether due to fraud or error. In making those risk assessments, the
to as “the Act”) that give a true and fair view of the consolidated auditor considers internal financial control relevant to the Holding
financial position, consolidated financial performance and Company’s preparation of the consolidated financial statements
consolidated cash flows of the Group in accordance with the that give a true and fair view in order to design audit procedures
accounting principles generally accepted in India, including that are appropriate in the circumstances, but not for the purpose
the Accounting Standards specified under Section 133 of the of expressing an opinion on whether the Holding Company has an
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 adequate internal financial controls system over financial reporting
(particularly Accounting Standard 21 - Consolidated Financial and the operating effectiveness of such controls. An audit also
Statements). The respective Board of Directors of the companies includes evaluating the appropriateness of the accounting policies
included in the Group are responsible for maintenance of adequate used and the reasonableness of the accounting estimates made by
accounting records in accordance with the provisions of the Act for the Holding Company’s Board of Directors, as well as evaluating the
safeguarding the assets of the Group for preventing and detecting overall presentation of the consolidated financial statements.
frauds and other irregularities; the selection and application of
We believe that the audit evidence obtained by us and the audit
appropriate accounting policies; making judgments and estimates
evidence obtained by the other auditors in terms of their reports
that are reasonable and prudent; and the design, implementation
referred to in the Other Matter paragraph below, is sufficient
and maintenance of adequate internal financial controls, that were
and appropriate to provide a basis for our audit opinion on the
operating effectively for ensuring the accuracy and completeness of
consolidated financial statements.
the accounting records, relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free Opinion
from material misstatement, whether due to fraud or error which In our opinion and to the best of our information and according
have been used for the purpose of preparation of the consolidated to the explanations given to us and based on the consideration
financial statements by the Directors of the Holding Company, as of reports of other auditors on separate financial statements and
aforesaid. on the other financial information of a subsidiary, the aforesaid
consolidated financial statements give the information required by
Auditors’ Responsibility
the Act in the manner so required and give a true and fair view in
Our responsibility is to express an opinion on these consolidated
conformity with the accounting principles generally accepted in
financial statements based on our audit.
India, of the state of affairs of the Group as at 31st March, 2016 and
While conducting the audit, we have taken into account the its Profit and its Cash flows for the year ended on that date.

66 Dhampur Sugar Mills Limited

Other Matter specified under Section 133 of the Act, read with Rule 7 of
We did not audit the financial statements / financial information of the Companies (Accounts) Rules, 2014.
a subsidiary, whose financial statements reflect total assets of H26.99
(e) On the basis of the relevant assertion contained in the
crores as at March 31, 2016, total revenues of H194.37 crores, total audit reports on standalone financial statements of each
loss after tax of H5.58 crores and net cash inflows amount to H4.80 subsidiary company which are incorporated in India none
crores for the year then ended, as considered in the consolidated of the Directors of any such company is disqualified as on
financial statements. These financial statements / financial

FINANCIAL STATEMENTS
31st March, 2016 from being appointed as a director in
information have been audited by other auditors whose reports terms of Section 164 (2) of the Act.
have been furnished to us by the Management and our opinion on
the consolidated financial statements, in so far as it relates to the (f ) With respect to the adequacy of the internal financial
amounts and disclosures included in respect of the subsidiary and controls over financial reporting of the Group and the
our report in terms of sub-sections (3) and (11) of Section 143 of the operating effectiveness of such Controls, refer to our
Act, in so far as it relates to the aforesaid subsidiary, is based solely separate report in Annexure – ‘A’
on the reports of the other auditors. (g) With respect to the other matters to be included in
Our opinion on the consolidated financial statements, and our the Auditors’ Report in accordance with Rule 11 of the

MANAGEMENT REPORTS
report on Other Legal and Regulatory Requirements below, is not Companies (Audit and Auditors) Rules, 2014, in our opinion
modified in respect of this matter with respect to our reliance on the and to the best of our information and according to the
work done and the reports of the other auditors explanations given to us and based on the consideration
of the report of the other auditors on separate financial
Report on Other Legal and Regulatory Requirements statements as also the other financial information of a
1. As required by Section143(3) of the Act, based on our audit and subsidiary, as noted in the ‘Other Matter’ paragraph:
on the consideration of report of the other auditors on separate i. The consolidated financial statements disclosed the
financial statements and the other financial information of a impact of pending litigations on its financial position
subsidiary, as noted in the ‘Other Matter’ paragraph, we report in its financial statements.

CORPORATE OVERVIEW
that
ii. The Holding Company and subsidiary company do
(a) We have sought and obtained all the information and not have any long-term contracts including derivative
explanations which to the best of our knowledge and contracts for which there are any material foreseeable
belief were necessary for the purposes of our audit of the losses.
aforesaid consolidated financial statements.
iii. As explained, there has been no amount required
(b) In our opinion, proper books of account as required by to be transferred to the Investor Education and
law relating to preparation of the aforesaid consolidated Protection Fund by the Holding Company and its
financial statements have been kept so far as it appears subsidiary company.
from our examination of those books and the reports of
the other auditors.

(c) The Consolidated Balance Sheet, the Consolidated For MITTAL GUPTA & CO.,
Statement of Profit and Loss, and the Consolidated Cash Chartered Accountants
Flow Statement dealt with by this Report are in with the FRN 01874C
relevant books of account maintained for the purpose of
preparation of the consolidated financial statements. (B. L. GUPTA)
(d) In our opinion, the aforesaid consolidated financial Place: New Delhi Partner
statements comply with the Accounting Standards Date: 10th May, 2016 Membership No. 073794

Annual
Report 201516 67
Annexure - ‘A’ to the Independent Auditor’s Report
(The Annexure – ‘A’ referred to in our Independent Auditors’ Report to the members of the Company on the consolidated financial statements
for the year ended 31st March, 2016)

Report on the Internal Financial Control under clause (i) of sub- to obtain reasonable assurance about whether adequate internal
section 3 of section 143 of the Companies Act, 2013 (“the Act”) financial controls over financial reporting was established and
We have audited the internal financial control over financial reporting maintained and if such controls operated effectively in all material
of Dhampur Sugar Mills Limited (“the Holding Company”) as of 31 respects.
March, 2016 in conjunction with our audit of the consolidated
Our audit involves performing procedures to obtain audit evidence
financial statements of the company for the year ended on that
about the adequacy of the internal financial controls system over
date.
financial reporting and their operating effectiveness. Our audit
We have not audited the internal financial control over financial of internal financial controls over financial reporting included
reporting of Subsidiary Company, which is a company not obtaining an understanding of internal financial controls over
incorporated in India, as of 31 March, 2016. financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of
Management’s Responsibility for internal Financial Controls internal control based on the assessed risk. The procedures selected
The Holding Company’s management is responsible for establishing depend on the auditor’s judgment, including the assessment of the
and maintaining internal financial controls based on the internal risks of material misstatement of the financial statements, whether
controls over financial reporting criteria established by the due to fraud or error.
Company considering the essential components of internal controls
We believe that the audit evidence, we have obtained, is sufficient
stated in the Guidance Note on Audit of Internal Financial Controls
and appropriate to provide a basis for our audit opinion on the
over Financial Reporting issued by the Institute of Chartered
Company’s internal financial control system over financial reporting.
Accountants of India (“ICAI”). These responsibilities include the
design, implementation and maintenance of adequate internal
Meaning of Internal Financial Controls over Financial Reporting
financial controls that were operating effectively for ensuring the
A company’s internal financial controls over financial reporting is a
orderly and efficient conduct of its business, including adherence
process designed to provide reasonable assurance regarding the
to company’s polices, the safeguarding of its assets, the prevention
reliability of financial reporting and the preparation of financial
and detection of frauds and errors, the accuracy and completeness
statement for external purposes in accordance with generally
of the accounting records and the timely preparation of reliable
accepted accounting principles. A company’s internal financial
financial information , as required under the Companies Act, 2013
controls over financial reporting includes those policies and
(“the Act”).
procedures that (1) pertain to the maintenance of records that , in
reasonable detail, accurately and fairly reflect the transactions and
Auditor‘s Responsibility
disposition of the assets of the company; (2) provide reasonable
Our responsibility is to express an opinion on the Company’s
assurance that transaction are recorded as necessary to permit
internal financial control over financial reporting based on our
preparation of financial statement in accordance with generally
audit. We conducted our audit in accordance with the Guidance
accepted accounting principles, and that receipt and expenditures
Note on Audit of Internal Financial Control Over Financial Reporting
of the company are being made only in accordance with
(the “Guidance Note”) and the Standards on Auditing, issued by ICAI
authorizations of management and directors of the company; and
and deemed to be prescribed under section 143(10) of the Act to
(3) provide reasonable assurance regarding prevention or timely
the extent applicable to an audit of internal financial controls, both
detection of unauthorized acquisition , use ,or disposition of the
applicable to an audit of Internal Financial Controls and, both issued
company’s assets that could have a material effect on the financial
by the ICAI. Those Standards and the Guidance Note require that we
statement.
comply with ethical requirements and plan and perform the audit

68 Dhampur Sugar Mills Limited

Inherent Limitations of Internal Financial Controls over Financial controls over financial reporting criteria established by the Company
Reporting considering the essential components of internal controls stated
Because of the inherent limitations of internal financial controls over in the Guidance Note on Audit of Internal Financial Controls Over
financial reporting, including the possibility of collusion or improper Financial Reporting issued by ICAI.
management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections
of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal

FINANCIAL STATEMENTS
financial controls over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate. For MITTAL GUPTA & CO.,
Chartered Accountants
Opinion FRN 01874C
In our opinion, the Holding Company has, in all material respects, an
adequate internal financial control system over financial reporting (B. L. GUPTA)
and such internal financial control over financial reporting were Place: New Delhi Partner
operating effectively as at 31 March 2016, based on the internal Date: 10th May, 2016 Membership No. 073794

MANAGEMENT REPORTS
CORPORATE OVERVIEW

Annual
Report 201516 69
Consolidated Balance Sheet as at 31st March, 2016 (H in crores)
Particulars Note No. As at 31.03.2016 As at 31.03.2015
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 3 75.30 75.96
Reserves and surplus 4 635.39 346.51
Money received against Equity share warrants 3B 0.00 710.69 1.24 423.71
Non-current liabilities
Long-term borrowings 5 546.34 571.89
Other long-term liabilities 8 0.99 3.49
Long-term provisions 6 20.82 568.15 20.65 596.03
Current liabilities
Short-term borrowings 7 928.47 893.98
Trade payables 8 471.43 675.30
Other current liabilities 8 504.12 428.46
Short-term provisions 9 12.64 1916.66 10.27 2008.01
Total 3195.50 3027.75
ASSETS
Non-current assets
Fixed assets
Tangible assets 10 1495.71 1253.93
Capital work-in-progress 28.17 17.74
Non-current investments 11 0.80 0.78
Deferred tax Assets (Net) 12 35.21 45.10
Long-term loans and advances 13 19.93 12.77
Other non-current assets 14 0.19 1580.01 0.21 1330.53
Current assets
Inventories 15 1261.30 1252.26
Trade receivables 16 251.22 222.96
Cash and cash equivalents 17 25.80 16.73
Short-term loans and advances 13 36.92 39.51
Other current assets 14 40.25 1615.49 165.76 1697.22
Total 3195.50 3027.75
Significant Accounting Policies
Notes on Financial Statements 1 to 39

This is the Balance Sheet referred to in our report of even date

For Mittal Gupta & Co. For and on behalf of the Board of Directors

B. L. Gupta Arhant Jain V. K. Goel A. K. Goel

Partner Executive President (Finance) Chairman Vice Chairman
Chartered Accountants & Secretary

Place : New Delhi Gaurav Goel A. K. Gupta M.P. Mehrotra

Dated : 10-05-2016 Managing Director Director Director

70 Dhampur Sugar Mills Limited

Consolidated Profit and Loss Statement for the year ended 31st March, 2016 (H in crores)
Particulars Note No. Year ended 31.03.2016 Year ended 31.03.2015
INCOME
Revenue from operations 18 2325.04 1843.21
Less : Excise duty and other taxes 92.02 2233.02 65.82 1777.39
Other income 19 24.69 17.85
Total revenue 2257.71 1795.24
EXPENSES
Cost of Raw materials consumed 20 1515.82 1274.06
Purchases of Stock-in-Trade 18 237.08 104.22
(Increase)/Decrease in inventories of 21 (16.90) 19.93
finished goods,work-in-progress and traded goods

FINANCIAL STATEMENTS
Employee benefits expense 22 84.38 76.19
Finance costs 24 158.65 149.66
Depreciation and amortization expense 55.14 55.23
Other expenses 23 202.37 170.11
Total Expenses 2236.54 1849.40
Profit before exceptional and extraordinary items and tax 21.17 (54.16)
Exceptional items -
- Remission of Cane Commission liability relating to earlier 10.22 0.00

MANAGEMENT REPORTS
years (Net of taxes)
Profit before extraordinary items and tax 31.39 (54.16)
Extraordinary items 0.00 0.00
Profit/(loss) before tax 31.39 (54.16)
Tax expense:
Current tax/Income tax adjustments 4.11 1.60
Less: MAT credit entitlement (4.11) 0.00
Deferred tax assets/(liability) (Net) (5.51) 42.93

CORPORATE OVERVIEW
Profit/(loss) 25.88 (12.83)
Earning per equity share
(nominal value of share H10/- each)
Basic ( H per share) 4.13 (2.54 )
Diluted (H per share) 4.13 (2.48 )
Significant Accounting Policies
Notes on Financial Statements 1 to 39

This is the Profit and Loss statement referred to in our report of even date

For Mittal Gupta & Co. For and on behalf of the Board of Directors

B. L. Gupta Arhant Jain V. K. Goel A. K. Goel

Partner Executive President (Finance) Chairman Vice Chairman
Chartered Accountants & Secretary

Place : New Delhi Gaurav Goel A. K. Gupta M.P. Mehrotra

Dated : 10-05-2016 Managing Director Director Director

Annual
Report 201516 71
Consolidated Cash Flow Statement for the year ended 31st March, 2016 (H in crores)
Particulars Year ended 31.03.2016 Year ended 31.03.2015
A. Cash flow from operating activities:
Net Profit/(Loss) before tax and exceptional items 21.17 (54.16)
Adjustment for:
Depreciation 55.14 55.23
Loss/(Profit) on sale of fixed assets (Net) (1.26) 0.50
Finance Cost 158.65 149.66
Provision for impairment of investment reversed (3.24) 0.00
Interest and other investment income (3.03) (1.55)
Molasses storage fund 0.16 0.10
Provision for doubtful debts & balance written off/(back) (2.37) 204.05 0.19 204.13
Operating profit before working capital changes 225.22 149.97
Adjustments for:
Trade and other receivables 105.58 (246.94)
Inventories (9.02) (27.92)
Trade and other payables (153.63) (57.07) 44.44 (230.42)
Cash generated from operation 168.15 (80.45)
Taxes refund/(paid) 0.06 (0.26)
Net cash from operating activities (A) 168.21 (80.71)
B. Cash flow from investing activities :
Purchases of fixed assets (Net) (48.50) (48.96)
Purchases/Sale of investments (Net) 3.54 1.22
Interest and other investment income 3.25 1.55
Net cash used in investing activities (B) (41.71) (46.19)
C. Cash flow from financing activities :
Redemption of preference shares (2.16) (5.95)
Money Received against Share Warrant/Equity share capital 3.71 3.71
Proceeds from borrowings (Net) 47.11 273.34
Change in deposit pledged against margin money/guarantee with bank (0.32) 0.91
Dividend including dividend distribution tax 0.00 (0.38)
Finance Cost Paid (165.74) (147.01)
Net cash used in financing activities (C) (117.40) 124.62
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) 9.10 (2.28)
Opening Balance of Cash and Cash Equivalents* 9.40 11.73
Closing balance of Cash and Cash Equivalents 18.50 9.45
*Excluding Cash and Cash Equivalents relating to a company ceased to a subsidiary during the year.

Reconciliation of Cash & Cash Equivalents : (H in crores)

Particulars As at 31.03.2016 As at 31.03.2015
Closing Balance of Cash & Cash Equivalents as per Cash Flow Statement 18.50 9.45
Add: Balance in Unpaid Dividend account 0.26 0.26
Add: Deposit pledged against margin money/guarantee 2.59 2.27
Add: Deposits earmarked for Fixed Deposit 3.66 3.57
Add: Deposits earmarked for Molasses Storage Fund 0.79 1.18
Closing Balance of Cash & Cash Equivalents as per Note No - 17 25.80 16.73
This is the Cash Flow Statement referred to in our report of even date

For Mittal Gupta & Co. For and on behalf of the Board of Directors

B. L. Gupta Arhant Jain V. K. Goel A. K. Goel

Partner Executive President (Finance) Chairman Vice Chairman
Chartered Accountants & Secretary

Place : New Delhi Gaurav Goel A. K. Gupta M.P. Mehrotra

Dated : 10-05-2016 Managing Director Director Director

72 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
1) Corporate Information:
Dhampur Sugar Mills Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1913.
Its shares are listed on two stock exchanges in India namely, National Stock Exchange Ltd. and BSE Ltd.
The company is engaged mainly in the manufacturing and selling of sugar, chemicals, ethanol and co-generation of power.

2) Significant Accounting Policies:

i. Basis of Preparation of Financial statement
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Policies
in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (“The 2013 Act”). The
Financial Statements have been prepared on Accrual Basis on the Historical cost convention except for certain tangible fixed assets

FINANCIAL STATEMENTS
which are carried on revalued amounts.
All assets and liabilities have been classified as current and non-current as per Company’s normal Operating Cycle and other criteria
set out in Schedule III to the Companies Act, 2013. The company has ascertained its operating cycle as 12 months for the purpose
of current and non-current classification of assets and liabilities.

ii. Principles of Consolidation

The consolidated financial statements relate to Dhampur Sugar Mills Limited (“The Company”) and of the Financial Statements of
its wholly owned subsidiary Dhampur International Pte. Limited (Collectively referred to as the “Group”). The consolidated financial
statements have been prepared on the following basis:

MANAGEMENT REPORTS
a) The financial statements of the subsidiary companies used in the consolidation are drawn up to the same reporting date as
that of the Company i.e. 31st March, 2016.
b) The financial statement of the Company and its subsidiary companies have been consolidated on a line-by-line basis by
adding together the book values of like items of assets, liabilities, income and expenses, after eliminating the intra-group
balances and intra-group transactions resulting in unrealized profits or losses.
c) The operating activities of Dhampur International Pte. Ltd. is being treated as integral foreign operations and accordingly the
financial statements are translated as if the transactions of the foreign operation have been those of the Company itself.
d) As far as possible, the consolidated financial statements have been prepared using uniform accounting policies, like transaction

CORPORATE OVERVIEW
and events in similar circumstances and are presented to the extent possible, in the same manner as the Company’s separate
financial statements.
e) The excess of cost to the Company of its investments in the subsidiary company is recognized in the financial statement as
goodwill and the excess of company’s portion of equity of the subsidiary over the cost of the investments therein is treated as
capital reserve.
f ) Minority interest in the net assets of consolidated subsidiary consists of the amount of equity attributable to the minority
shareholders at the dates on which investments are made by the Company in the subsidiary company and further movements
in their share in the equity, subsequent to the dates of investments as stated above If, the amount of losses applicable to the
minority on consolidation exceeds the minority interest in the equity of the subsidiary, the excess, and any further losses
applicable to the minority, are adjusted against the majority interest except to the extent that minority has a binding obligation
to, and is able to, make good the losses. if the subsidiary subsequently reports profits, all such profits are allocated to the
majority interest until the minority’s share of losses previously absorbed by the majority has been recovered.
g) The list of subsidiary company which is included in the consolidation and the groups’ holding therein are as under:
Sl. Name of Country of Ownership in % either directly or through subsidiaries
No. the Company Incorporation 2015-2016 2014-2015
1. Dhampur International Pte. Ltd. Singapore 100 100

Annual
Report 201516 73
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
iii. Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires management of the company to make estimates
and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities)and the reported
income and expenses during the year.
The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future
results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the
periods in which the results are known / materialize.

iv. Fixed Assets and work-in-progress

Fixed assets are stated at cost, net of recoverable taxes and includes amount added on revaluation, less accumulated depreciation,
and impairment loss, if any. All costs, including financing costs attributable to construction or acquisition of fixed assets till
commencement of commercial production, and adjustments arising from exchange rate variations attributable to the fixed assets
are capitalized.
Expenditure during construction period: Directly attributable expenditure (Including finance cost related to borrowed funds for
construction or acquisition of fixed assets) incurred on projects under implementation and capital assets under installation are
treated as pre-operative expenses pending allocation to assets and are shown under “Capital work-in-progress”. Capital Work-in-
progress is stated at the amount expended up to the date of Balance Sheet for the cost of fixed assets that are not ready for their
intended use.
Assets identified and technically evaluated as obsolete are retired from active use and held for disposal are stated at the lower of
their net book value and estimated realizable value.

v. Depreciation and Amortization

Depreciation on fixed assets is provided for over the useful life of assets specified in the Schedule –II of Companies Act, 2013 as
under:
Depreciation on plants and buildings acquired up to 31st March 1989 and other assets acquired up to 31st March, 2014 is provided
on written down value method.
Depreciation on plants and buildings acquired after 31st March 1989 and other fixed assets acquired after 31st March, 2014 is
provided on straight line method.

vi. Foreign Exchange Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that
approximates the actual rate on the date of the transaction.
Monetary items denominated in foreign currencies at the year-end are restated at year -end rates. In case of items which are covered
by forward exchange contracts, the premium or discount arising out at the inception of such contracts is amortized as income or
expense over the life of the contract. Further exchange difference on such contracts i.e. difference between the exchange rate
at the exchange reporting/settlement date and the exchange rate on the date of inception of contract/the last reporting date,
is recognized as income/ expense for the year except that the exchange differences, including premium or discount on forward
exchange contracts, arising in respect of long term borrowings or liabilities relating to the acquisition of the depreciable capital
assets which are adjusted to the cost of fixed assets.
Non-monetary foreign currency items are carried at cost.
Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and
Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted
to the carrying cost of such assets.

vii. Inventories
Raw material, process chemicals, stores, spares and packing material are carried at weighted average cost.
Finished goods, Goods in Process and Traded goods except by-products are carried at lower of cost and net realizable value. Cost of

74 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
trading goods is determined using FIFO basis. Cost of finished goods and Goods in Process comprises of raw material cost (net of
realizable value of By-products), variable and fixed production overhead, which are allocated to work in progress and finished goods
on full absorption cost basis.
Stock of finished farm products, molasses and bagasse are carried at estimated Net Realizable Value.
Standing cane and other crops are carried at cost.
Loose tools and instruments are carried at depreciated value.
By-products are carried at net realizable value.

viii. Excise duty

Excise duty in respect of finished goods held in stock at the end of the period except in respect of those products which are being
used for captive consumption, is provided for and is included in the value of closing stock.

FINANCIAL STATEMENTS
ix. Employees Benefits
Defined contribution plan:
Company’s contributions paid/payable during the year to provident fund and pension fund are recognized in the profit and loss
account.
Defined benefit plan:
Company’s liabilities toward defined benefit plans are determined using the projected unit credit method which considers each
period of service as giving rise to additional unit of benefit entitlement and measure each unit separately to build up the final
obligation. Actuarial gain and losses are recognized immediately in the profit and loss account as income or expenses. Obligation

MANAGEMENT REPORTS
measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market
yields at the balance sheet date or government bonds where the currency and terms of the Government are consistent with the
currency and estimated of the defined benefit obligation.
Short term benefits are recognized as expense at the undiscounted amount in the Statement of the profit and loss account for the
year in which the related service is rendered.
Compensation to employees who have opted for retirement under the “Voluntary Retirement scheme” is charged to the profit and
loss account in the year of retirement.

x. Leases

CORPORATE OVERVIEW
a) Leases rentals in respect of operating leases, if any, are expensed with reference to lease term, except for pertaining to the
period up to the date of commissioning of the assets which are capitalized.
b) Income in respect of assets given on operating lease, if any, is recognized on accrual basis with reference to lease terms.

xi. Investments
Investments are either classified current or long-term based on Management’s intention at the time of acquisition:-
Current investments are carried at lower of cost and net realizable value.
Long term investment is stated at cost. Provision for diminution in the value of long term investment is made only if such a decline
is other than temporary.
Cost includes acquisition price and directly attributable acquisition charges such as brokerage, fee and duties.

xii. Revenue Recognition

Revenue is recognized only when it can be reliably measured and is reasonable to expect ultimate collection. Revenue from sale
of goods is recognized on transfer of significant risk and reward of ownership to the customer. Revenue includes excise duty and
excludes sales tax/VAT, trade discount and rebates. Interest income is recognized when no significant uncertainty as to measurability
or collectability exists.
Insurance claim are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no
uncertainty in receiving the claims. .

Annual
Report 201516 75
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
Export benefits are accounted for in the year of exports based on eligibility and when there is no significant uncertainty in receiving
the same.

xiii. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such
assets till commencement of commercial production and or put to use. All other borrowing costs are expensed in the period they
occur.

xiv. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits under the provision of Income Tax Act, 1961. Deferred tax
resulting from timing differences between taxable income and accounting income is accounted for using the tax rates and Laws
that are enacted or substantively enacted on the balance sheet date. The deferred tax assets is recognized and carried forward only
if there is virtual certainty that the assets will be realized in future.
MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal
income tax during the specified period. In the year in which Minimum Alternate Tax (MAT) credit becomes eligible to be recognized
as an asset in accordance with the recommendations contained in the Guidance Notes issued by the Institute of Chartered
Accountants of India, the said asset is created by the way of a credit to the Statement of Profit and Loss and shown as MAT credit
entitlement. The company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the effect that the company will pay normal Income Tax during
the specified period.

xv. Impairment of Assets

The Carrying amount of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/
external factor. An asset is impaired when the carrying amount of the assets exceeds the recoverable amount. Impairment is
charged to the profit and loss account in the year in which an asset is identified as impaired. Impairment losses recognized in prior
accounting period are reversed if there is any change in the estimate of the recoverable amount.

xvi. Government Grants

Government grants are recognized where there is reasonable assurance that the condition attach to them will be complied and the
grants will be received. Government grants are accounted for as under:
Government grants of the nature of promoters’ contribution are credited to the capital reserve and treated as a part of the
Shareholder Fund.
Government grants related to specific depreciable fixed assets are adjusted with the value of assets. Government grants related to
the specific non-depreciable fixed assets are credited to capital reserve.
Government grants that are receivable as compensation for expenses or losses incurred or for the purpose of giving immediate
financial support are either deducted from the expenditure in case these relate to specific expenditure and in other cases, are
treated as other income. These grants, if available, to the industry in general are treated as ordinary items and if available only to the
company are treated as an extraordinary item and disclosed accordingly.

xvii. Provisions, Contingent Liabilities and Assets

Provisions are recognized in respect of obligation where, based on the evidence available, their existence at the balance sheet date
is considered probable.
Contingent liabilities are shown by way of notes to the account in respect of obligations where, based on the evidence available
their existence at the balance sheet date is considered not probable.
Contingent assets are not recognized in the financial statements.

76 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
xviii. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, cheques on hand, balance with banks on current accounts and short term, highly
liquid investments with an original maturity of three months or less and which carry insignificant risk of changes in value.

xix. Cash Flow Statement

Cash flows are stated using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-
cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of incomes and expenses
associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are
segregated.

xx. Earning Per Share

Basic earnings per share are computed by dividing the net profit/(loss) after tax (Including the post-tax effect of extra ordinary items,
if any), attributable to the equity shareholders, by the weighted average number of equity shares outstanding during the year.

FINANCIAL STATEMENTS
Diluted earnings per share are computed by dividing the net profit/(loss) after tax (Including the post-tax effect of extra ordinary
items, if any), attributable to the equity shareholder, by the weighted average number of equity shares considered for deriving basic
earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive
potential equity shares. Dilutive potential equity shares are determined as at the end of each period presented.

xxi. Segment Reporting

Segments are identified based on dominant source and nature of risks and returns and the internal organizational and management
structure. The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparing
and presenting the Financial Statements of the Company as a whole. In addition, the following specific accounting policies have

MANAGEMENT REPORTS
been followed for segment reporting:
Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter segment
transfers. Inter segment transfers are accounted for, based on the estimated market price in case of marketable product and cost
plus markup basis in case of non-marketable product.

CORPORATE OVERVIEW

Annual
Report 201516 77
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
3 - Share capital (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
Authorized shares
11,38,26,000 equity shares of H10/- each 113.83 113.83
69,17,400 preference shares of H100/- each 69.17 69.17
Issued , subscribed and paid-up shares
Equity shares
6,02,14,935 (5,87,14,935) equity shares of H10/- each fully paid-up 60.21 58.71
3,25,496 equity shares forfeited 0.07 0.07
Less : Calls in arrears # 60.28 # 58.78
Preference shares
0 (4,13,940), 6% Cumulative Redeemable preference shares of H100/- each 0.00 1.38
fully paid-up {Amount pending for redemption - H Nil (H33.33) per share}
0 (4,69,013), 1% Cumulative Redeemable preference shares of H100/- each 0.00 0.78
fully paid-up {Amount pending for redemption - H Nil (H16.67) per share}
18,01,817, 8% Cumulative Redeemable preference shares of H100/- each 15.02 15.02
fully paid-up {Amount pending for redemption - H83.35 (H83.35) per share}
TOTAL 75.30 75.96

3. a - Reconciliation of shares outstanding at the beginning and at the end of the reporting period is set out below :
Particulars 31.03.2016 31.03.2015
No. (H in crores) No. (H in crores)
Authorized shares
Equity shares
At the beginning of the period 113826000 113.83 113826000 113.83
Outstanding at the end of the period 113826000 113.83 113826000 113.83
Preference shares
At the beginning of the period 6917400 69.17 6917400 69.17
Outstanding at the end of the period 6917400 69.17 6917400 69.17
Issued , subscribed and paid-up shares
Equity shares
At the beginning of the period 58714935 58.71 57214935 57.21
Issued during the period 1500000 1.50 1500000 1.50
Outstanding at the end of the period 60214935 60.21 58714935 58.71
Preference shares
At the beginning of the period 2684770 17.18 2684770 23.13
Issued during the period 0 0.00 0 0.00
Redeemed during the period 882953 2.16 0 5.95
Outstanding at the end of the period 1801817 15.02 2684770 17.18

78 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
3 - Share capital (contd.)
3.b - Details of shareholders holding more than 5% shares :
Particulars 31.03.2016 31.03.2015
No. % holding No. % holding
Equity shares of H10 each fully paid-up
Goel Investments Ltd. 11255515 18.69 11255515 19.17
Sonitron Ltd. 4940716 8.21 4940716 8.41
Shudh Edible Products Ltd. 4549680 7.56 4549680 7.75
Mr. Gautam Goel 4242339 7.05 3492339 5.95
Mr. Gaurav Goel 4211379 6.99 3461379 5.90

FINANCIAL STATEMENTS
Saraswati Properties Limited 3416758 5.67 3416758 5.82
6% Cumulative Redeemable Preference shares of H100 each fully paid-up
IFCI Ltd. 0 0.00 413940 100.00
1% Cumulative Redeemable Preference shares of H100 each fully paid-up
IFCI Ltd. 0 0.00 469013 100.00
8% Cumulative Redeemable Preference shares of H100 each fully paid-up
JK Tyre & Industries Limited 1801817 100.00 1801817 100.00

MANAGEMENT REPORTS
3.c - Calls unpaid of equity shares
Particulars 31.03.2016 31.03.2015
No. Amt. (in H) No. Amt. (in H)
i) Calls unpaid by directors and officers Nil Nil Nil Nil
i) Calls unpaid by others 2185 10705 2185 10705

3. d Terms/right attached to equity shares

The company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividend in Indian rupees. The dividend if proposed by the Board of Directors, is subject to the

CORPORATE OVERVIEW
approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the shareholders of equity shares are
eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

3.e 33,08,960 Equity shares of H10 each and 18,01,817 8% Cumulative Redeemable Preference shares of H100 each were allotted during the
year 2013-14 to the shareholders of J K Sugar Ltd pursuant to the scheme of amalgamation without payment being received in cash.

3.f Right attached to Preference shares

(i) The Preference shares will constitute direct, unconditional, un-subordinated and unsecured obligations of the company and will at
all times rank pari passu and without any preference among them.
(ii) No premature redemption option to the company, nor to the shareholders of Cumulative Redeemable Preference shares and no
option to the shareholders to seek redemption in case of non-payment of dividend.

3.g Terms of redemption of Preference shares

(i) 18,01,817 - 8% Cumulative Redeemable Preference Shares of H100 each are redeemable in 3 equal yearly installments commencing
from April 01, 2014. The amount due for redemption as at 31st March, 2016 is H9 Crores, ( H3 Crores).

Annual
Report 201516 79
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
3 - Share capital (contd.)
3.h - The Board of directors recommended the following dividend :
Particulars 31.03.2016 31.03.2015
Proposed dividend per equity share of H10/- each HNIL HNIL
Proposed dividend per 6% Cumulative Redeemable Preference Share of H100/- each HNIL HNIL
Proposed dividend per 1% Cumulative Redeemable Preference Share of H100/- each HNIL HNIL
Proposed dividend per 8% Cumulative Redeemable Preference Share of H100/- each HNIL HNIL

3B - Money received against Equity share warrants (H in crores)

Deferred tax liabilities As at 31.03.2016 As at 31.03.2015
Money received against Equity share warrants
0 (15,00,000) Equity share warrants of H8.25 per warrant 0.00 1.24
TOTAL 0.00 1.24

3B.a During the financial year, 15,00,000 Equity shares of H10/- each at a premium of H23/- per share has been allotted on conversion of
15,00,000 equity share warrants.

4 - Reserves and surplus (H in crores)

Particulars As at 31.03.2016 As at 31.03.2015
Capital reserve
Balance as per last account 10.64 10.64
Add: Net gain on sale of RECs' transfer from surplus 14.59 25.23 0.00 10.64
Securities Premium Reserve
Balance as per last account 323.41 319.96
Add: received during the year 3.45 326.86 3.45 323.41
Reserve for construction of Molasses Storage Tank
Balance as per last account 1.06 1.57
Add: Provided during the period 0.16 0.10
Less: Transferred to General Reserve 0.00 1.22 (0.61) 1.06
Capital redemption reserve
Balance as per last account 3.72 0.00
Add: transferred from general reserve 0.00 3.72 3.72 3.72
Revaluation Reserve
Balance as per last account 35.69 35.69
Add: During the year (Refer Note No. “10”) 259.39 295.08 0.00 35.69
General reserve
Balance as per last account 46.24 54.43
Add : Transferred from Resrve for Construction of Molasses Storage Tank 0.00 0.61
Less: adjustment relating to fixed assets 0.00 5.08
Less:Transferred to Capital Redemption Reserve 0.00 46.24 3.72 46.24
Surplus/(Deficit)
Balance as per last account (74.25) (61.42 )
Profit/(loss) for the year 25.88 (12.83)
Less: Net gain on sale of RECs' transfer to Capital Reserve 14.59 0.00
Net deficit (62.96) (74.25)
TOTAL 635.39 346.51

80 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
5 - Long-term borrowings (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
Non-current Current Non-current Current
Term loans
Secured
Rupee term loans from banks 349.81 85.39 341.53 77.08
Rupee term loans from banks SEFASU 66.94 36.51 103.45 6.08
Rupee term loans from banks Soft loan 99.09 0.00 0.00 0.00
Foreign currency term loan from bank 0.00 0.00 44.80 24.05
Zero coupon rupee term loans from banks 0.00 0.00 0.00 2.06

FINANCIAL STATEMENTS
Rupee term loans from sugar development fund 18.24 25.37 44.07 25.83
534.08 147.27 533.85 135.10
Unsecured
Deposits - from related parties 4.13 2.68 2.68 5.80
- from public 4.76 2.08 4.20 2.52
Buyers' credit from banks 3.37 29.67 31.16 0.00
12.26 34.43 38.04 8.32
Total 546.34 181.70 571.89 143.42

MANAGEMENT REPORTS
5.a - Nature of security
(i) Rupee term loan from bank under the Government sponsored subvention Scheme for Extending Financial Assistance to Sugar
Undertakings (SEFASU), 2014 of H103.45 crores are secured by third parri passu charge on block of fixed assets of the company and
personal guarantee of four directors.

(ii) Rupee term loan from bank under the Government sponsored Scheme for Extending soft loan to sugar mills of H99.09 crores are secured
by third parri passu charge on block of fixed assets of the company and personal guarantee of four directors.

(iii) Rupee term loans from Sugar Development Fund are secured by exclusive second charge on all movable and immovable assets

CORPORATE OVERVIEW
excluding current assets of the company.

(iv) All other term loans from financial institutions and banks are secured by first parri passu charge on all movable and immovable assets
except book debts, stock-in-trade, raw materials, spare parts and other current assets.

(v) All the term loans are guaranted by four directors.

Annual
Report 201516 81
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
5 - Long-term borrowings (contd.)
5.b - Maturity profile and Rate of interest of long term borrowings are as set out below : (H in crores)
Particulars ROI (%) as on F.Y. - 17-18 F.Y. - 18-19 F.Y. - 19-20 Beyond Total
31.03.2016 F. Y. 19-20
Secured
Term Loans from banks 12.70% 4.86 0.00 0.00 0.00 4.86
12.50% 2.50 0.00 0.00 0.00 2.50
12.45% 10.83 10.83 10.83 18.96 51.45
12.35% 52.83 36.63 25.00 0.00 114.46
12.25% 11.39 15.18 15.18 34.16 75.91
12.20% 8.00 6.00 0.00 0.00 14.00
12.00% 9.00 8.50 3.75 0.00 21.25
11.35% 23.20 23.20 17.40 0.00 63.80
10.00% 0.84 0.19 0.00 0.00 1.03
2.85% 0.18 0.18 0.19 0.00 0.55
Term Loans from banks Soft loan *2.25% 14.86 19.82 19.82 39.87 94.37
Term Loans from banks Soft loan *1.75% 0.59 1.18 1.18 1.77 4.72
Term Loans from banks SEFASU Nil 36.51 30.43 0.00 0.00 66.94
Sub-total 175.59 152.14 93.35 94.76 515.84
Rupee term loans from sugar 7.00% 3.60 2.23 0.67 0.00 6.50
development fund
4.00% 11.74 0.00 0.00 0.00 11.74
Sub-total 15.34 2.23 0.67 0.00 18.24
Total secured 190.93 154.37 94.02 94.76 534.08
Unsecured Deposits 11% to 12% 8.89 0.00 0.00 0.00 8.89
Buyers Credit from Bank 1.78% 2.97 0.40 0.00 0.00 3.37
Grand-total 202.79 154.77 94.02 94.76 546.34
* Net of interest subvbention of 10% from Ministry for Consumer Affairs, Food and Public Distribution for one year from the date of
disbursement. After one year interest would be payable as per rate applicable to the company, which is 12.25% & 11.75% respectively as on
31st March 2016.

6 - Long-term provisions (H in crores)

Particulars As at 31.03.2016 As at 31.03.2015
Provision for employee benefits :
Provision for gratuity 20.82 20.65
Total 20.82 20.65

7 - Short-term borrowings (H in crores)

Particulars As at 31.03.2016 As at 31.03.2015
Secured
Cash credit from banks 919.32 858.58
Rupee loans from banks 0.00 30.00
919.32 888.58
Unsecured
Deposits - from related parties 3.30 0.80
- from public 5.26 3.64
Short term loans and advances - from related parties 0.59 0.94
- from others 0.00 0.02
9.15 5.40
Total 928.47 893.98

82 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
7 - Short-term borrowings (contd.)
7.a - Nature of security
Cash Credit limits from District Co-operative Banks/UPCBs’ having outstanding of H355.46 Crores as at 31st March, 2016 are secured by pledge
of stocks of sugar and by parri passu third charge over the fixed assets of the company and personal guarantee of four directors.
All other Cash credit limits from banks having outstanding of H563.86 Crores as at 31st March, 2016 are secured by pledge of stocks of sugar
and hypothecation of consumable stores and spare parts, chemicals, molasses etc. and by parri passu third charge over the fixed assets of the
company and personal guarantee of four directors.

8 - Trade payables and Other Current Liabilities (H in crores)

Particulars As at 31.03.2016 As at 31.03.2015
Non-current Current Non-current Current

FINANCIAL STATEMENTS
Trade payables (Refer Note No. - '35' of dues to micro and small enterprises) 0.00 471.43 0.00 675.30
Other Non-Current and Current liabilities
Current maturities of long term borrowings (Refer Note No. - '5') 0.00 181.70 0.00 143.42
Interest accrued but not due on borrowings 0.99 2.94 3.49 4.29
Interest accrued and due on borrowings* 0.00 5.31 0.00 3.79
Unpaid dividend 0.00 0.26 0.00 0.26
Unpaid matured deposits and interest accured thereon 0.00 0.20 0.00 0.31
Advance from customers 0.00 1.52 0.00 1.17

MANAGEMENT REPORTS
Security deposits 0.00 4.42 0.00 4.11
Statutory dues payable 0.00 68.59 0.00 41.56
Other Liabilities 0.00 239.18 0.00 229.55
sub-total 0.99 504.12 3.49 428.46
Total 0.99 975.55 3.49 1103.76

* Represents interest debited by banks on loans at the close of business hours as at 31st March 2016 which has been repaid by the company
on next working day.

CORPORATE OVERVIEW
“8.a” Other liabilities represent amounts payable to the commercial banks in respect of agri loans facilitated by the company. The company
has provided corporate guarantee in respect of such loans, including interest due thereon.

9 - Short-term provisions (H in crores)

Particulars As at 31.03.2016 As at 31.03.2015
Provision for employee benefits:
Provision for employees 8.53 10.27
Other provisions:
Provision for tax 4.11 0.00
Total 12.64 10.27

Annual
Report 201516 83
 Notes on Consolidated Financial Statements for the year ended 31st March, 2016

84
10 - Tangible assets (H in crores)
Particulars Land Building Plant & Furniture & Railway Weighbridge Computers Office Electrical Vehicles Live Stock Farm Asset Total Total
Equipments Fixtures sidings Equipments Appliances & (2015-2016) (2014-2015)
Equipment
Cost
As on 01-04-2015 87.22 171.53 1635.15 11.83 0.00 7.55 10.23 2.53 8.51 19.26 0.01 0.55 1954.37 1726.29
Addition on account of 259.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 259.39 0.00
revaluation

Dhampur Sugar Mills Limited

Additions (Refer Note - 0.12 1.13 31.89 0.40 0.00 0.24 0.69 0.08 0.37 3.46 0.00 0.34 38.72 225.80
"10.a")
Disposals 0.09 0.76 1.59 0.45 0.00 0.00 1.01 0.00 0.00 1.11 0.00 0.00 5.01 2.67
Other adjustments
- Exchange differences 0.00 0.00 0.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.29 (0.01)
- Borrowing costs 0.00 0.00 0.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.54 4.96
As at 31-03-2016 346.64 171.90 1666.28 11.78 0.00 7.79 9.91 2.61 8.88 21.61 0.01 0.89 2248.30 1954.36
Depreciation
As on 01-04-2015 0.00 46.45 610.34 8.23 0.00 6.27 8.84 2.23 5.34 12.35 0.00 0.39 700.44 640.27
Charges for the year 0.00 6.30 44.19 1.08 0.00 0.25 0.48 0.08 0.86 1.82 0.00 0.04 55.10 55.20
Disposals 0.00 0.63 0.66 0.07 0.00 0.00 0.68 0.00 0.00 0.91 0.00 0.00 2.95 2.29
Adjusted from retained 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.25
earnings
As at 31-03-2016 0.00 52.12 653.87 9.24 0.00 6.52 8.64 2.31 6.20 13.26 0.00 0.43 752.59 700.44
Net Block
As at 31-03-2015 87.22 125.08 1024.81 3.60 0.00 1.28 1.39 0.30 3.17 6.91 0.01 0.16 1253.93 1086.02
As at 31-03-2016 346.64 119.78 1012.41 2.54 0.00 1.27 1.27 0.30 2.68 8.35 0.01 0.46 1495.71 1253.93

“10.a” The Company has revalued its land of as on 25.03.2016 at fair market value as valued by an independent certified valuer. The land at meerganj unit has also been revalued as on
07.10.2013 at replacement value, valued by independent certified valuer Consequent to revaluation as at 25.03.16, the value of land is further increased by H259.39 Crores during
the year and by H295.08 Crores as at 31st March, 2016.
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
11 - Non-current Investments (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
Trade Investments :-
Ramganga Sanyukta Sahkari Kheti Samiti Limited (Unquoted)
01 Equity share of H100/- each fully paid-up # #
Other Investments :-
In Other Companies :
Investment in Equity shares (fully paid-up unless otherwise stated)
VLS Finance Limited (Quoted)
263142 Equity shares of H10/- each 0.44 0.44

FINANCIAL STATEMENTS
South Asian Enterprises Limited (Quoted) (**)
250000 Equity shares of H10/- each
(At cost less provision for diminution in value H0.25 crores (P.Y. H0.25 crores)) # 0.44 # 0.44
Investment in Mutual fund
Baroda Pioneer Income Fund - Dividend Reinvestment Plan (Quoted)
(Merged out from Baroda Pioneer PSU Bond Fund - Monthly Dividend Plan)
160174 (334356) Units of H10/- (H10/-) each 0.36 0.34
Total 0.80 0.78

MANAGEMENT REPORTS
(H in crores)
Disclosure of non-current investments As at 31.03.2016 As at 31.03.2015
Aggregate amount of quoted investments 0.80 0.78
Aggregate amount of unquoted investments 0.00 0.00
Total investments net of provision for diminution 0.80 0.78
Aggregate provision for diminution in value of investments (**) 0.25 0.25
Aggregate market value of quoted investments 1.17 1.25

CORPORATE OVERVIEW
12 - Deferred Tax Asset/(Liability) (Net) (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
Deferred Tax Asset :
i) On account of timing difference of expenses which are allowable 10.83 12.77
under Income Tax Laws in subsequent years
ii) On account of carried forward losses and unabsorbed depreciation 169.95 148.82
180.78 161.59
Deferred Tax Liability :
i) On account of differences in written down value of fixed assets 145.57 116.49
Net Deferred Tax Asset/ (Liability) 35.21 45.10

Annual
Report 201516 85
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
13 - Long and short term loans and advances (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
Non-current Current Non-current Current
(Unsecured considered good unless otherwise stated)
Capital advances 5.64 0.00 2.12 0.00
Security deposits:-
- to related parties (Refer Note No. - '34' for details) 2.19 0.00 2.19 0.00
- to others 0.82 0.26 1.29 0.31
Other loans and advances :
Advances to employees 0.00 0.46 0.00 0.53
Advances to suppliers/contractors/service providers 0.00 18.56 0.00 13.33
Loans 0.00 1.69 0.00 0.56
Balances with revenue authorities 0.00 9.92 0.00 18.61
Income tax and wealth tax payments 0.00 1.21 0.00 1.27
MAT credit entitlement 11.28 0.00 7.17 0.00
Payments of taxes under protest/appeal 0.00 1.57 0.00 1.83
Prepaid expenses 0.00 3.25 0.00 3.07
Total 19.93 36.92 12.77 39.51

Details of Loan:
Ujjwal Microfinance Finance Private Ltd. 0.00 0.00 0.00 0.56

14 - Other non-current and current assets (H in crores)

Particulars As at 31.03.2016 As at 31.03.2015
Non-current Current Non-current Current
(Unsecured considered good unless otherwise stated)
Inventory - Loose tools and equipments 0.19 0.00 0.21 0.00
Insurance claim receivable 0.00 6.79 0.00 11.14
Subsidy receivable from government/government authority 0.00 32.88 0.00 150.87
Interest receivable 0.00 0.29 0.00 0.54
Others 0.00 0.29 0.00 3.21
Total 0.19 40.25 0.21 165.76

15 - Inventories (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
(Refer Note No. - '2' for Mode of Valuation)
Raw materials 17.92 53.87
Goods-in-process 35.91 30.73
Standing cane and other crops 0.35 0.28
Finished goods 1148.09 1126.15
Traded goods 22.39 5.02
Stores, Spare parts, P.P. bags, Chemicals etc. 36.64 36.21
Total 1261.30 1252.26

86 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
16 - Trade receivables (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
(Unsecured considered good unless otherwise stated)
Outstanding for a period exceeding six months from the date they are due
for payment :
- Considered good 1.87 0.67
- Considered doubtful 0.00 0.02
- Provision for doubtful 0.00 1.87 (0.02) 0.67
Other receivables 249.35 222.29
Total 251.22 222.96

FINANCIAL STATEMENTS
17 - Cash and cash equivalents (H in crores)
Particulars As at 31.03.2016 As at 31.03.2015
Cash and cash equivalents
Balances with banks :
On Current accounts 16.82 7.40
On unpaid dividend account 0.26 17.08 0.26 7.66
Cash on hand 1.68 2.05

MANAGEMENT REPORTS
Other bank balances :
Deposits pledged against margiin money/guarantee 2.59 2.27
Deposits earmarked for Fixed Deposit 3.66 3.57
Deposits earmarked for Molasses Storage Fund 0.79 7.04 1.18 7.02
Total 25.80 16.73

18 - Revenue from operations/Purchases of stock-in-trade/Inventories (H in crores)

Particulars Opening Purchases Sales Closing

CORPORATE OVERVIEW
stock stock
Revenue from operations
Sale of Products
Finsihed goods
Sugar 971.73 0.00 1468.52 1036.74
Previous year (1020.88) 0.00 (1224.81) (971.73)
Molasses 91.37 0.00 0.00 67.58
Previous year (64.61) 0.00 (9.83) (91.37)
Chemicals 26.14 0.00 402.85 14.99
Previous year (26.20) 0.00 (305.38) (26.14)
Farm produce 0.06 0.00 0.77 0.31
Previous year (0.10) 0.00 (1.04) (0.06)
Power 0.00 0.00 218.42 0.00
Previous year 0.00 0.00 (163.14) 0.00
Others 36.85 0.00 0.19 28.47
Previous year (28.56) 0.00 (0.97) (36.85)
Sub-total finished goods 1126.15 0.00 2090.75 1148.09
Previous year (1140.35) 0.00 (1705.17) (1126.15)

Annual
Report 201516 87
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
18 - Revenue from operations/Purchases of stock-in-trade/Inventories (contd.) (H in crores)
Particulars Opening Purchases Sales Closing
stock stock
Traded goods
Coal 0.00 42.85 43.71 0.00
Previous year 0.00 (36.93) (37.70) 0.00
Soyabean Oil 0.00 38.20 37.91 0.00
Previous year 0.00 (36.24) (36.84) 0.00
Sugar 0.00 60.96 61.32 0.00
Previous year 0.00 0.00 0.00 0.00
Other purchases 5.02 95.07 81.44 4.42
Previous year (0.79) (31.05) (29.31) (5.02)
Sub-total traded goods 5.02 237.08 224.38 4.42
Previous year (0.79) (104.22) (103.85) (5.02)
Stock-in-process :
Sugar 16.46 16.92
Previous year (26.82) (16.46)
Molasses 1.93 1.51
Previous year (2.01) (1.93)
Chemicals 12.34 17.48
Previous year (6.81) (12.34)
Standing crops 0.28 0.35
Previous year (0.33) (0.28)
Sub-total Stock-in-process 31.01 36.26
Previous year (35.97) (31.01)
Total (Gross) (A) 1162.18 237.08 2315.13 1188.77
Previous year (1177.11) (104.22) (1809.02) (1162.18)

Other operating revenue (H in crores)

Particulars Year ended 31.03.2016 Year ended 31.03.2015
Miscellaneous income 2.27 3.52
Refund of administrative charges on Molasses 0.00 5.78
Scrap sale 1.43 1.85
Balances written back 1.23 2.40
Insurance claim received 0.00 10.22
Provision no longer required written back 1.14 4.38
Duty Draw Back 3.84 6.04
Other operating revenue (B) 9.91 34.19
Total Revenue from operations (Gross) (A+B) 2325.04 1843.21

88 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
19 - Other income (H in crores)
Particulars Year ended 31.03.2016 Year ended 31.03.2015
Rent 1.28 1.13
Profit on sale of assets 1.44 0.16
Income from Consultancy services 0.09 0.00
Services charges received 1.02 0.00
Interest income 3.00 1.39
Foreign exchange differences (net) 0.00 4.67
Provision for impairment of investment reversed 3.24 0.00
Profit/(Loss) on sale of investments 0.00 0.08

FINANCIAL STATEMENTS
Income from REC (Net of expenses) 14.59 10.39
Dividend income 0.03 0.03
Total 24.69 17.85

20 - Cost of Raw materials consumed (H in crores)

Particulars Year ended 31.03.2016 Year ended 31.03.2015
Sugar cane 1372.06 1161.45
Molasses consumed 58.41 32.44

MANAGEMENT REPORTS
Bagasse & other fuel consumed 37.59 2.48
Chemicals and others 47.76 77.69
Total 1515.82 1274.06

21 - (Increase)/Decrease in inventories (H in crores)

Particulars Year ended 31.03.2016 Year ended 31.03.2015
Inventories at the end of the year

CORPORATE OVERVIEW
Finished goods 1148.09 1126.15
Stock-in-process 36.26 31.01
Traded goods 22.39 5.02
1206.74 1162.18
Inventories at the beginning of the year
Finished goods 1126.15 1140.35
Stock-in-process 31.01 35.97
Traded goods 5.02 0.79
1162.18 1177.11
Net excise duty on account of (Increase)/decrease in inventories 27.66 5.00
(Increase)/Decrease in inventories (16.90) 19.93

Annual
Report 201516 89
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
22 - Employees benefits expense (H in crores)
Particulars Year ended 31.03.2016 Year ended 31.03.2015
Salary, wages and bonus 73.62 64.83
Contribution to provident and other funds 6.21 5.67
Workmen and staff welfare expenses 1.79 2.30
Gratuity 2.08 2.63
Voluntary retirement compensation 0.68 0.76
Total 84.38 76.19

23 - Other expense (H in crores)

Particulars Year ended 31.03.2016 Year ended 31.03.2015
Consumption of stores, spares and other manufacturing expense 43.68 30.42
Packing material expense 26.68 26.75
Expenditure on crops 0.56 0.48
Power and fuel 7.03 3.75
Repairs and maintenance :
Plant and machinery 40.16 32.42
Buildings 4.62 3.50
Others 2.64 47.42 2.70 38.62
Rent 6.20 6.03
Rates and taxes 2.36 2.16
Charity and donation 0.23 0.23
Insurance 2.01 1.83
Molasses fund 0.16 0.10
Selling expenses :
Commission to selling agents 11.72 8.86
Other selling expense 10.75 22.47 16.69 25.55
Payment to auditors :
Audit fee 0.26 0.25
Tax audit fee 0.06 0.05
Income Tax Matters & Other Certification Fees 0.08 0.06
Reimbursement of expenses 0.02 0.42 0.01 0.37
Miscellaneous expenses 27.52 25.23
CSR Expenses 0.39 0.05
Cane development expense 7.12 7.27
Expenses relating to earlier year 0.02 0.31
Foreign exchange difference (Net) 2.23 0.00
Balances written-off 0.00 0.17
Provision for doubtful debts 0.00 0.02
Directors sitting fee 0.11 0.11
Loss on sale of fixed assets 0.18 0.66
Loss on sale of export quota obligation 5.58 0.00
Total 202.37 170.11

90 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
24 - Finance costs (H in crores)
Particulars Year ended 31.03.2016 Year ended 31.03.2015
Interest 156.42 152.92
Documentaion and other bank charges 4.55 4.18
Foreign exchange difference (Net) 4.94 4.55
165.91 161.65
Less : Interest & Documentation charges capitalized during the period (1.68) (6.98)
Less : Interest subsidy claimed under UPSIPP 2013 (5.58) (5.01)
Total 158.65 149.66

25 - Details of pre-operative and trial run expenses included in Capital Work in Progress:

FINANCIAL STATEMENTS
(H in crores)
Particulars 2015-2016 2014-2015
Opening Balance 1.12 17.77
(a) Raw Material Consumed 4.99 3.58
(b) Consumption of Stores & other Manufacturing Expenses 0.01 0.06
(c) Power & Fuel 0.16 0.16
(d) Payments to and Provision for Employees 0.11 0.09
(e) Administrative and Other Expenses 0.00 0.18
(f ) Interest Finance and Loan Raising Expenses 1.68 6.98

MANAGEMENT REPORTS
Total 8.07 28.82
Less:
(g) Borrowing Cost Capitalised during the year 0.54 4.96
(h) Pre-operative expenses capitalised during the year 0.42 18.34
(i) Sale of Power 0.00 4.40
Balance Pre-Operative Expenses Pending for Allocation 7.11 1.12

26 The accounts have been prepared without accounting for any incentive entitlements under U.P. Sugar Incentive Promotion Policy,

CORPORATE OVERVIEW
2004 as the scheme has been subsequently withdrawn by the State Government. The Company has filed writ petition before Hon’ble
Allahabad High Court (Lucknow Bench) for enforcement of the scheme and settlement of incentive claims. As per the erstwhile incentive
policy, the company is eligible for capital subsidy of H89.89 crores i.e. @10% of the investments made (already vetted H50.80 crores) and
revenue subsidy for reimbursement of taxes and other charges aggregating to H60.50 crores upto 31st March, 2016 (including H2.70
crores for the current year).

27 During the year, the company earned net gain of H14.59 crores (net of expenses of H3.31 crores) on sale of 119348 numbers of Renewal
Energy Certificates (RECs). These RECs were generated due to environmental concerns and allotted to the company as per Regulation on
REC, notified by Central Electricity Regulatory Commission. The earning of these RECs are not an off shoot of business but an off shoot
of environmental concerns and hence, the net gain from such sale has been held to be a capital receipt and not an income forming
part of the operations of the company by the courts. The courts have further held that the net earning on the sale of these RECs does
not fall within the definition of income under the Income Tax Act, 1961 and hence could not be taxed under the normal provisions of
taxation as well as under the provisions of section 115JB of the Act. In view of these legal pronouncements, the net earnings on such
sale amounting to H14.59 crores, credited to the profit and loss statement as other Income, has been concurrently added to the “Capital
Reserve” by reduction from “Net Profit carried to the Surplus/Deficit” treating it as a capital receipt.

28 During the year, U.P. Government has remitted part of cane commission payable for the sugar season 2012-13 amounting to H14.60
Crores. The same has been shown as exceptional items (net of taxes) in the profit and loss account.

29 In the opinion of the Board, current assets and loans and advances have realisable value in the ordinary course of business at least equal
to the value at which they are stated in the balance sheet.

Annual
Report 201516 91
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
30 - Expenditure on Corporate Social Responibilities (CSR) Activities:
The various heads under which the CSR expenditure was incurred during the year is detailed as follows: (H in crores)
S. Relevant clause of Description of CSR Activities 2015-2016 2014-2015
No. Schedule VII to the
Companies Act, 2013
a) Clause (ii) Promoting education, including special education and 0.36 0.05
employment enhancing vocational training and livlihood
enhancement projects
b) Clause (vii) Promoting rural sports, nationally recognised sports, 0.03 0.00
paralympic sports and Olympic sports
Total 0.39 0.05

31 Employees Benefits :
The required disclosures of employees benefits as per Accounting Standard -15 are given hereunder :-
(i) In respect of Short Term Employee Benefits :
The Company has at present only the scheme of cumulative benefit of leave encashment payable at the end of each calender year
and the same have been provided for on accrual basis.
(ii) In respect of defined Benefit Scheme (Based on actuarial valuation) of Gratuity :
(H in crores)
Particulars 2015-2016 2014-2015
A) Change in Obligation over the year ended 31.03.2016
Present value of defined obligation as on 01.04.2015 22.45 21.58
Current Service Cost 1.22 1.23
Interest Cost 1.78 1.81
Actuarial Gains/Losses (1.27) (1.30)
Benefits Paid (1.48) (0.87)
Present value of defined obligation as on 31.03.2016 22.70 22.45
B) Expenses recognised during the year ended 31.03.2016
Current Service Cost 1.22 1.23
Interest Cost 1.78 1.81
Actuarial Gains/Losses (1.27) (1.30)
Current Service Cost & Actuarial losses in respect of seprated employees 0.35 0.89
Total 2.08 2.63
C) Principal Actuarial Assumptions :
Mortality Table IALM (2006-08) IALM (2006-08)
Discount Rate (per Annum) 8.00% (8.00%)
Rate of Escalation in Salary (per Annum) 5.50% (5.50%)

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors
(iii) Defined Contribution Plan :
Provision for contribution to defined contribution plan recognised as expense during the period are as under : (H in crores)
Particulars 2015-2016 2014-2015
Employer's Contribution to Provident Fund : 1.80 2.94
Employer's Contribution to Pension Fund : 3.02 2.73

92 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
31 Employees Benefits : (contd.)
(iv) In respect of Defined Benefit Scheme (Based on Actuarial Valuation) of Provident Fund:
Actuarial valuation carried out in respect of interest shortfall in the Provident Fund Trust of the Company, as per Deterministic
Approach shows “Nil” liability, hence no provision is made in F.Y. 2015-16.
The following table sets out the status of Provident Fund as per the actuarial valuation by the independent Actuary appointed by the
Company:
(H in crores)
Particulars 2015-2016 2014-2015
A) Change in the present value of the defined benefit obligation:
Opening defined benefit obligation at beginning of the year 51.82 47.59
Current Service Cost 1.39 1.51

FINANCIAL STATEMENTS
Interest Cost 4.15 3.81
Employee Contribution 3.29 2.99
Actuarial (Gain)/loss 0.70 0.80
Benefits paid 6.44 4.87
Closing defined benefit obligation at end of the year 54.91 51.83
B) Change in Plan Assets:
Opening fair value of Plan Assets as at beginning of the year 52.98 49.07
Expected Return on Plan Assets 4.66 4.29
Contributions 4.68 4.50
Benefits Paid 6.44 4.87

MANAGEMENT REPORTS
Actuarial Gain/(Loss) on plan Assets (0.24) (0.01)
Closing fair value of plan assets as at end of the year 55.64 52.98
C) Reconciliation of present value of the obligation and fair value of the plan
assets:
Present Value of Funded obligation at end of the year 54.91 51.83
Fair Value of Plan assets atend of the year 55.64 52.98
Deficit/(Surplus) (0.73) (1.15)
Net Asset not recognised in Balance Sheet (0.73) (1.15)
D) Net Cost recognised in the profit and loss account:

CORPORATE OVERVIEW
Current Service Cost 1.39 1.51
Interest Cost 4.15 3.81
Expected return on plan assets 4.66 4.29
Interest shortfall reversed 0.51 0.48
Total costs of defined benefit plans included in Note No 22 "Payments to and 1.39 1.51
provisions for employees"
E) Principal Actuarial Assumptions:
(i) Economic Assumptions
(a) Expected statutory interest rate 8.80% 8.75%
(b) Expected short fall in interest earnings on the fund 0.05% 0.05%

(ii) Demographic Assumptions

(a) Mortality IALM (2006-08) IALM (2006-08)
(b) Disability None None
(c) Withdrawal Rate (Age related)
Up to 30 Years 3.00% 3.00%
Between 31 - 44 Years 2.00% 2.00%
Above 44 Years 1.00% 1.00%
(d) Normal Retirement Age (in Years) 60 60

Annual
Report 201516 93
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
32 Segment Reporting:
The Company has identified three primary business segments viz.Sugar, Distillery and Co-generation. Segments have been identified and
reported taking into account the nature of the products, the differing risks and returns, the organisational structure and internal business
reporting system.
a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue
and expenses which relate to enterprises as a whole and are not allocate to segment on reasonable basis have been disclosed as
“Unallocable”.
b) Segment assets and segment liabilities represent assets and liabilities of respective segment. Investments, tax related assets/ liabilities
and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.
c) Since the company’s activities/operations are primarily within country and considering the nature of products. Its risk and returs are
same as such there is only on geographial segment.
(H in crores)
Particulars Sugar Chemicals Co-gen Others Total
1. Segment Revenue (Including Excise Duty)
a) External Sales 1473.33 407.54 218.67 225.50 2325.04
Previous year (1338.00) (321.84) (163.27) (20.10) (1843.21)
b) Inter Segment Sales 341.32 5.48 260.21 157.28 764.29
Previous year (273.94) (4.84) (217.14) (125.46) (621.38)
c) Total Revenue 1814.65 413.02 478.88 382.78 3089.33
Previous year (1611.94) (326.68) (380.41) (145.56) (2464.59)
2. Segment Results
(Profit(+)/Loss(-) before tax and interest from each (40.15) 64.66 188.77 (8.06) 205.22
segment)
Previous year (-90.91) (47.02) (160.34) (-5.79) (110.66)
Less : Finance costs 158.65
Previous year (149.66)
Less/ Add :Other Unallocable Expense/Income
Net off Unallocable Income/Expenses 15.18
Previous year (15.16)
Net Profit(+)/Loss(-) Before Tax 31.39
Previous year (-54.16)
Less: Tax expense (Net) (5.51)
Previous year (41.33)
Net Profit after Tax (Before Adjustment of Mnority 25.88
Interest)
Previous year (-12.83)
Share of Profit/Loss to Minority 0.00
Previous year 0.00
Net Profit after Tax (after adjustment of Minority 25.88
Interest)
Previous year (-12.83)

94 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
32 Segment Reporting:: (contd.)
(H in crores)
Particulars Sugar Chemicals Co-gen Others Total
3. Other Information
a) Segment Assets 2106.47 339.85 674.15 24.34 3144.81
Previous year (2016.81) (305.57) (679.77) (16.41) (3018.56)
Unallocable Corporate Assets 50.69
Previous year (9.19)
Total Assets 3195.50
Previous year (3027.75)

FINANCIAL STATEMENTS
b) Segment Liabilities 782.93 11.63 3.83 16.55 814.94
Previous year (952.48) (21.03) (4.57) (4.97) (983.05)
Unallocable Corporate Liabilities 1669.87
Previous year (1620.99)
Total Liabilities 2484.81
Previous year (2604.04)
c) Capital Expenditure 21.96 22.13 5.20 0.68 49.97
Previous year (15.72) (2.75) (19.24) (3.74) (41.45)

MANAGEMENT REPORTS
d) Depreciation 31.61 8.74 14.18 0.61 55.14
Previous year (39.11) (8.79) (13.76) (0.82) (62.48)

e) Non Cash Expenditure other than Depreciation 0.34 # 0.00 # 0.34

Previous year (0.84) (0.02) (0.09) 0.00 (0.95)

33 - Earnings per Share (EPS) :

CORPORATE OVERVIEW
Particulars Year ended 31.03.2016 Year ended 31.03.2015
i) Net Profit/ Loss(-) after Extra Ordinary Items & Provision for Taxes
(Attributable to Equity Sharesholders)
(Used as numerator for calculating EPS) H in crores 24.44 H in crores (14.54)
ii) Weighted average No.of Equity Shares outstanding during the period:
(Used as denominator for calculating E.P.S.)
- for Basic EPS No. 59151734 No. 57223154
- for Diluted EPS No. 59151734 No. 58723154
iii) Earning per Share before and after Extra Ordinary Items
- Basic H 4.13 H (2.54)
- Diluted H 4.13 H (2.48)
(Equity Share of Face value of H10 each)

Annual
Report 201516 95
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
34 Related Party Disclosures:
A. List of Related Parties with whom transactions have taken place and relationships:
i) Enterprises which have significant influence and also owned or significantly influenced by Key Management Personnel
1 Goel investments Limited
2 Ujjwal Rural Services Limited
3 Saraswati Properties Limited
4 Dhampur Global Pte. Limited

ii) Enterprises owned or significantly influenced by Key Management Personnel or their relatives
1 Shudh Edible Products Limited
2 India Green Fuel Private Limited

iii) Key Management Personnel and their relatives

1 Mr.Vijay Kumar Goel, Executive Director
Mrs Deepa Goel (Wife)
2 Mr. Ashok Kumar Goel, Vice Chairman
Mrs Vinita Goel (Wife)
3 Mr. Gaurav Goel, Managing Director
Mrs Priyanjali Goel (Wife)
4 Mr. Gautam Goel, Managing Director
Mrs Bindu Vashist Goel (Wife)
5 Mr. Arhant Jain, Executive President (Finance) & Company secretary
Mrs. Brij Bala Jain (Mother), Mr. Arvind Jain (Brother), Mrs. Anita Jain (Wife), Mr. Anubhav Jain (Son), Mr. Ashish Jain (Son),
Mrs. Ankita Jain (Daughter in law), Mrs. Shruti Jain (Daughter in law),
Arhant Jain (HUF), Anubhav Jain (HUF), Ashish Jain (HUF), Arvind Jain (HUF).
6 Mr. Sandeep Kumar Sharma, Executive President
Mrs. Poonam Sharma (Wife), Mr. Rahul Sharma (Son), Ms. Sona Sharma (Daughter)
Sandeep Kumar Sharma (HUF)
7 Mr. Priya Brat, Director
Mrs. Shakuntala Brat (Wife), Ms. Anu Mahendru (Daughter)
8 V. K. Goel, H.U.F
9 A.K. Goel, H.U.F.
10 Gaurav Goel, H.U.F
11 Gautam Goel, H.U.F

B. Disclosure of transactions between the Company and Related Parties and the status of outstanding balances as on 31st March, 2016
(H in crores)
Sl.No. Particulars 2015-2016 2014-2015
Transactions during year ended 31.03.2016
1 Loans/advances given 0.08 2.02
Dhampur Global Pte Ltd. 0.08 0.00
Goel Investment Limited 0.00 0.39
India Greenfuel Private Limited 0.00 0.07
Saraswati Properties Limited 0.00 0.86
Shudh Edible Products Limited 0.00 0.71

96 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
34 Related Party Disclosures: (contd.)
B. Disclosure of transactions between the Company and Related Parties and the status of outstanding balances as on 31st March, 2016

(H in crores)
Sl.No. Particulars 2015-2016 2014-2015
2 Reciepts towards Loan /Advances given 0.00 2.02
Goel Investment Limited 0.00 0.39
India Greenfuel Private Limited 0.00 0.07
Saraswati Properties Limited 0.00 0.86
Shudh Edible Products Limited 0.00 0.71
3 Loans taken 1.51 5.04
Goel Investment Limited 0.50 0.84

FINANCIAL STATEMENTS
India Greenfuel Private Limited 0.00 0.06
Saraswati Properties Limited 0.00 2.87
Shudh Edible Products Limited 0.00 1.23
Ujjwal Rural Services Limited 0.00 0.04
Mr. Gautam Goel 0.26 0.00
Mr. Gaurav Goel 0.75 0.00
4 Loans repaid 1.84 4.32
Dhampur Global Pte Ltd. 0.08 0.00

MANAGEMENT REPORTS
Goel Investment Limited 0.31 0.47
India Greenfuel Private Limited 0.01 0.03
Saraswati Properties Limited 0.27 2.63
Shudh Edible Products Limited 0.04 1.19
Ujjwal Rural Services Limited 0.12 0.00
Mr. Gautam Goel 0.26 0.00
Mr. Gaurav Goel 0.75 0.00
5 Unsecured Deposits Taken (Fixed Deposit) 7.60 3.42

CORPORATE OVERVIEW
Mrs. Deepa Goel 0.13 0.22
Mr. Ashok Kumar Goel 0.31 0.88
Mrs Vinita Goel 1.27 1.11
Mrs Priyanjali Goel 0.12 0.54
Mrs Bindu Vashist Goel 0.33 0.07
Mr. Arhant Jain 0.17 0.00
Mrs. Brij Bala Jain 0.74 0.00
Mrs. Anita Jain 0.40 0.00
Mr. Anubhav Jain 0.16 0.00
Mr. Ashish Jain 0.62 0.00
Mrs. Ankita Jain 0.28 0.00
Mrs. Shruti Jain 0.69 0.00
Arhant Jain (HUF) 0.41 0.00
Ashish Jain (HUF) 0.12 0.00
Anubhav Jain (HUF) 0.11 0.00
Arvind Jain (HUF) 0.23 0.00
Mrs. Poonam Sharma 0.12 0.00
Ms. Sona Sharma 0.06 0.03

Annual
Report 201516 97
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
34 Related Party Disclosures: (contd.)
B. Disclosure of transactions between the Company and Related Parties and the status of outstanding balances as on 31st March, 2016
(H in crores)
Sl.No. Particulars 2015-2016 2014-2015
Sandeep Kumar Sharma (HUF) 0.05 0.04
Mrs. Shakuntala Brat 0.12 0.00
V.K. Goel (HUF) 0.26 0.12
A.K. Goel (HUF) 0.30 0.14
Gaurav Goel (HUF) 0.30 0.14
Gautam Goel (HUF) 0.30 0.14
6 Unsecured Deposits Matured (Fixed Deposit) 6.77 2.58
Mrs. Deepa Goel 0.11 0.21
Mr. Ashok Kumar Goel 0.22 0.66
Mrs Vinita Goel 1.06 0.42
Mrs Priyanjali Goel 0.09 0.54
Mrs Bindu Vashist Goel 0.26 0.06
Mr. Arhant Jain 0.11 0.00
Mrs. Brij Bala Jain 0.68 0.00
Mrs. Anita Jain 0.24 0.00
Mr. Anubhav Jain 0.35 0.00
Mr. Ashish Jain 0.87 0.00
Mrs. Ankita Jain 0.23 0.00
Mrs. Shruti Jain 0.75 0.00
Arhant Jain (HUF) 0.33 0.00
Ashish Jain (HUF) 0.08 0.00
Anubhav Jain (HUF) 0.07 0.00
Arvind Jain (HUF) 0.18 0.00
Mrs. Poonam Sharma 0.06 0.11
Mr. Rahul Sharma 0.01 0.01
Ms. Sona Sharma 0.06 0.02
Sandeep Kumar Sharma (HUF) 0.04 0.04
Mrs. Shakuntala Brat 0.03 0.00
V.K. Goel (HUF) 0.21 0.12
A.K. Goel (HUF) 0.24 0.14
Gaurav Goel (HUF) 0.25 0.13
Gautam Goel (HUF) 0.24 0.13
7 Subscription of Equity Shares on conversion of Warrants 3.71 3.71
M/s Saraswati Properties Ltd. 0.00 3.71
Mr. Gaurav Goel 1.86 0.00
Mr. Gautam Goel 1.85 0.00
8 Rent paid 3.60 3.58
Goel Investment Limited 0.12 0.12
Saraswati Properties Limited 1.48 1.48
Shudh Edible Products Limited 1.98 1.98
Ujjwal Rural Services Limited 0.02 0.00

98 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
34 Related Party Disclosures: (contd.)
B. Disclosure of transactions between the Company and Related Parties and the status of outstanding balances as on 31st March, 2016
(H in crores)
Sl.No. Particulars 2015-2016 2014-2015
9 Remuneration paid 3.75 2.23
Mr. Vijay Goel 0.89 0.48
Mr. Ashok Kumar Goel 0.89 0.48
Mr. Gaurav Goel 0.89 0.48
Mr. Gautam Goel 0.75 0.48
Mr. Arhant Jain 0.10 0.10
Mr. Sandeep Kumar Sharma 0.15 0.14

FINANCIAL STATEMENTS
Mr. Arvind Jain 0.08 0.07
10 Directors Perquisits (As per Income Tax Act) 0.51 0.00
Mr. Vijay Goel 0.13 0.00
Mr. Ashok Kumar Goel 0.12 0.00
Mr. Gaurav Goel 0.12 0.00
Mr. Gautam Goel 0.13 0.00
Mr. Sandeep Kumar Sharma 0.01 0.00
11 Interest expense 1.08 0.81

MANAGEMENT REPORTS
Mrs. Deepa Goel 0.04 0.02
Mr. Ashok Kumar Goel 0.13 0.05
Mrs Vinita Goel 0.18 0.08
Mrs Priyanjali Goel 0.08 0.05
Mrs. Bindu Goel 0.05 0.04
Mr. Arhant Jain 0.01 0.01
Mrs. Brij Bala Jain 0.05 0.05
Mrs. Anita Jain 0.04 0.03

CORPORATE OVERVIEW
Mr. Anubhav Jain 0.04 0.02
Mr. Ashish Jain 0.07 0.12
Mrs. Ankita Jain 0.03 0.03
Mrs. Shruti Jain 0.07 0.10
Arhant Jain (HUF) 0.04 0.00
Ashish Jain (HUF) 0.01 0.01
Anubhav Jain (HUF) 0.01 0.01
Arvind Jain (HUF) 0.02 0.02
Mr. Sandeep Kumar Sharma # #
Mrs. Poonam Sharma 0.01 0.01
Mr. Rahul Sharma # #
Ms. Sona Sharma 0.00 #
Sandeep Kumar Sharma (HUF) # #
Mrs. Shakuntala Brat # #
V.K. Goel (HUF) 0.05 0.03
A.K. Goel (HUF) 0.05 0.04
Gaurav Goel (HUF) 0.05 0.04
Gautam Goel (HUF) 0.05 0.04

Annual
Report 201516 99
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
34 Related Party Disclosures: (contd.)
B. Disclosure of transactions between the Company and Related Parties and the status of outstanding balances as on 31st March, 2016

(H in crores)
Sl.No. Particulars 2015-2016 2014-2015
Amount due to/ from Related Parties:
1 Deposits from Related Parties 10.11 9.28
Mrs. Deepa Goel 0.35 0.32
Mr. Ashok Kumar Goel 1.18 1.10
Mrs Vinita Goel 1.71 1.49
Mrs Priyanjali Goel 0.66 0.64
Mrs Bindu Vashist Goel 0.39 0.33
Mr. Arhant Jain 0.13 0.07
Mrs. Brij Bala Jain 0.71 0.65
Mrs. Anita Jain 0.40 0.24
Mr. Anubhav Jain 0.17 0.36
Mr. Ashish Jain 0.62 0.87
Mrs. Ankita Jain 0.28 0.23
Mrs. Shruti Jain 0.69 0.75
Arhant Jain (HUF) 0.41 0.33
Ashish Jain (HUF) 0.10 0.07
Anubhav Jain (HUF) 0.09 0.05
Arvind Jain (HUF) 0.23 0.18
Mr. Sandeep Kumar Sharma 0.01 0.00
Mrs. Poonam Sharma 0.08 0.03
Mr. Rahul Sharma # 0.00
Ms. Sona Sharma 0.03 0.03
Sandeep Kumar Sharma (HUF) 0.05 0.04
Mrs. Shakuntala Brat 0.12 0.03
V.K. Goel (HUF) 0.38 0.33
A.K. Goel (HUF) 0.44 0.38
Gaurav Goel (HUF) 0.44 0.38
Gautam Goel (HUF) 0.44 0.38
2 Unsecured Loans and Advances from related parties 0.58 0.84
Goel Investment Limited 0.56 0.38
India Green Fuel Private Limited 0.02 0.03
Saraswati Properties Limited 0.00 0.27
Shudh Edible Products Limited 0.00 0.04
Ujjwal Rural Services Limited 0.00 0.12
3 Payables 1.03 0.29
Saraswati Properties Limited 0.31 0.00
Shudh Edible Products Limited 0.01 0.00
Ujjwal Rural Services Limited 0.01 0.00
Mr. Ashok Kumar Goel 0.09 0.01

100 Dhampur Sugar Mills Limited

Notes on Consolidated Financial Statements for the year ended 31st March, 2016
34 Related Party Disclosures: (contd.)
B. Disclosure of transactions between the Company and Related Parties and the status of outstanding balances as on 31st March, 2016

(H in crores)
Sl.No. Particulars 2015-2016 2014-2015
Mr. Gaurav Goel 0.18 0.13
Mr. Gautam Goel 0.33 0.14
Mr. Vijay Kumar Goel 0.10 0.01
4 Security Deposits 2.19 2.19
Goel Investment Limited 0.50 0.50
Saraswati Properties Limited 0.65 0.65

FINANCIAL STATEMENTS
Shudh Edible Products Limited 0.99 0.99
Ujjwal Rural Services Limited 0.05 0.05

35 Following are the relevant disclosures as required under the Micro, Small and Medium Enterprises Development
Act, 2006:
(a) Sundry creditors include a sum aggregating H5.22 Crores (H2.83 Crores) due to micro and small enterprises is on account of principal only.
(b) The amount of interest paid by the company in terms of Section 16, alongwith the amount of payments made to the micro and small
enterprise beyond the appointed date during the period - H Nil.

MANAGEMENT REPORTS
(c) The amount of interest due and payable for the period of delay in making payment which have been paid but beyond the appointed
day during the period but without adding the interest specified under this Act. - H Nil.
(d) The amount of interest accrued and remaining unpaid - H Nil.
(e) The amount of further interest remaining due and payable even in succeeding years - H Nil.
The above mentioned outstandings are in normal course of business and the information regarding micro and small enterprises have been
determined to the extent such parties have been identified on the basis of information available with the Company.

36 Details of loans and advances given; investment made; guarantee given and security provided as required to be disclosed as per

CORPORATE OVERVIEW
provision of section 186(4) of Companies Act, 2013 have been disclosed under the respective heads.

37 Additional information on net assets and share of profits of the Company and its subsidiaries as considered in
Consolidated Financial Statements:

Particulars Net assets Share in profit or (loss)

As a % of H in crores As a % of H in crores
Consolidated Consolidated
net assets profit or (loss)
Parent Company 100.12% 711.55 123.45% 31.95
Foreign Subsidiaries
Dhampur Internationl Pte. Ltd. (wholly owned subsidiary) (-0.12)% (0.86) (-23.45)% (6.07)

Annual
Report 201516 101
Notes on Consolidated Financial Statements for the year ended 31st March, 2016
38 CONTINGENT LIABILITIES AND COMMITMENTS : NOT PROVIDED FOR IN RESPECT OF :

I Contingent Liabilities (H in crores)

Particulars As at As at
31st March, 2016 31st March, 2015
i) Demands being disputed by the Company:
a) Excise duty and Service Tax demands 44.51 35.26
b) Trade Tax and Entry Tax demands 49.34 31.99
c) Other demands 8.08 1.09
d) Estimated amount of interest on above 112.87 92.35
ii) Claims against the company not acknowledged as debts :
a) Statutory liability being disputed by authorities 0.36 2.84
b) Income Tax demand on processing of TDS Returns 0.25 0.32
c) Other Liabilities 26.17 5.71
d) In respect of some pending cases of employees under labour laws Amount not Amount not
ascertainable ascertainable
The Company has initiated steps for revising the TDS forms to remove various defects due to which demands were raised by authorities and
is confident that the demand will be substantially reduced after these rectification.
The Government of Uttar Pradesh had always waived liabilities of interest on account of delayed payment of sugar cane price in past for the
industry and also considering the fact that the various initiatives taken by the Government to support the Sugar Industry, the Company as
well as the industry believe that the interest on delayed payment of Cane Price for sugar season 2014-15 onwards will also be waived by
the U.P. Government. Therefore, the same has not been recognised as liability.
The amount shown above represents the best possible estimates arrived on the basis of available information. The uncertainties and timing
of the cash flows are dependent on the outcome of the different legal process which have been invoked by the company or the claimants
as the case may be, therefore it cannot be estimated accurately. The Company does not expect any reimbursement in respect of above
contingent liabilities.
In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair
chances of sucessfull outcome.
II Commitments
A Estimated amount of contracts remaining to be executed on capital account and not provided for H12.78 Crores (P.Y. - H6.45 crores).

B Corporate Guarantee given by the Company H325 Crores.

III Arrears of Cumulative Preference share dividend including Corporate dividend tax is amounting to H4.62 Crores (Including H1.44 Crore
for the year).

39 Previous year figures in bracket have been regrouped/restated wherever considered necessary.

For Mittal Gupta & Co. For and on behalf of the Board of Directors

B. L. Gupta Arhant Jain V. K. Goel A. K. Goel

Partner Executive President (Finance) Chairman Vice Chairman
Chartered Accountants & Secretary

Place : New Delhi Gaurav Goel A. K. Gupta M.P. Mehrotra

Dated : 10-05-2016 Managing Director Director Director

102 Dhampur Sugar Mills Limited

 Notes

Corporate Information
Board of Directors Auditors
Forward-looking statement Shri V. K. Goel, Chairman Statutory Auditors
Statements in this report that describe the Shri A. K. Goel, Vice Chairman Mittal Gupta & Company
Company’s objectives, projections, estimates, Chartered Accountants, Kanpur
expectations or predictions of the future may be Shri Gaurav Goel, Managing Director
‘forward-looking statements’ within the meaning of Shri Gautam Goel, Managing Director
the applicable securities laws and regulations. The
Branch Auditors
Company cautions that such statements involve Shri Sandeep Kumar Sharma, Whole time Director M/s S. S. Kothari Mehta & Company,
risks and uncertainty and that actual results could Chartered Accountants, New Delhi
differ materially from those expressed or implied.
Shri A. K. Gupta, Independent Director
Readers are requested caution while placing undue Shri M. P. Mehrotra, Independent Director Internal Auditors
reliance on these statements as many factors could M/s D. C. Chhajed & Associates,
cause differences in the assumptions and the actual Shri Priya Brat, Independent Director
results. Accordingly, this document is subject to Chartered Accountants, New Delhi
Shri Harish Saluja, Independent Director
the disclaimer and qualified in its entirety by the
assumptions, qualifications and risk factors referred Shri Rahul Bedi, Independent Director
Cost Auditors
to in the management discussion and analysis Shri S. R. Kapur, Cost Auditors,
section part of the Dhampur Sugar Mills Limited Smt. Nandita Chaturvedi, Khatauli (Muzaffarnagar)
Annual Report, 2015-16. Independent Director
Secretarial Auditors
Shri D. L. Mittal, Nominee Director,
– Punjab National Bank GSK & Associates, Company Secretaries, Kanpur

Bankers
Contents Executive President Finance &
Company Secretary
Punjab National Bank
Bank of Baroda
Shri Arhant Jain Central Bank of India
02 Corporate identity
ICICI Bank Limited
04 Dhampur’s progress report
Registrar and Share Transfer Agent
IFCI Limited
M/s Alankit Assignments Limited
06 Manufacturing facilities Prathma Bank
Alankit House, 4E/2 Jhandewalan Extension,
14 Milestones New Delhi – 110055 UP Co-operative & District Co-operative Banks

16 Managing directors review

20 Performance highlights

22 Divisional review Registered office Corporate office Branch Office

25 Management discussion and analysis Dhampur Sugar Mills Limited 241, Okhla Industrial Estate, 1/125, Vijay Khand
Dhampur (N.R.) Phase – III Gomti Nagar,
27 Finance review District Bijnor – 246761 (UP) New Delhi – 110020 Lucknow – 226010
29 Corporate social responsibility at Dhampur

30 Risk management Works

Dhampur, District Bijnor (UP) • Asmoli, District Sambhal (UP) • Mansurpur, District Muzaffarnagar (UP)
32 Board’s report
Rajpura, District Sambhal (UP) • Meerganj, District Bareilly (UP)
54 Report on corporate governance

66 Auditor’s report

70 Consolidated balance sheet

71 Consolidated profit and loss statement

72 Consolidated cash flow statement A PRODUCT

73 Notes to consolidated financial statements info@trisyscom.com

Dhampur Sugar Mills Limited
241, Okhla Industrial Estate, Phase – III,
New Delhi – 110 020, India
Tel: +91-11-3065 9400. Fax: +91-11-26935697
Email: investordesk@dhampur.com
Capitalising!
The story of how Dhampur Sugar Mills expects
www.dhampur.com to capitalise on the imminent industry rebound

15
Dhampur Sugar Mills Limited | Annual Report 2015-16