Piccadily Agro Industries Ltd
Directors Reports
Dear Share Holders,
Your Directors have the pleasure in presenting their 29th Annual Report
together with Audited Accounts of the Company for the year ended 31st March 2023.
FINANCIAL RESULTS:
(Rs. In lacs)
|
Consolidated |
Standalone |
| Particulars |
2022-23 |
2021-22 |
2022-23 |
2021-22 |
| Revenue from operations ' |
63,582.51 |
57532.58 |
63582.51 |
57532.58 |
| Other income |
52.24 |
77.75 |
52.24 |
77.75 |
| Total Income |
63,634.75 |
57610.33 |
63634.75 |
57610.33 |
| (Increase)/decrease of Stock in trade |
(1,110.02) |
436.45 |
(1110.02) |
436.45 |
| Profit before Interest , Depreciation, Tax & Exceptional
items |
6214.70 |
6997.93 |
6352.74 |
7010.30 |
| Less : Interest |
1330.52 |
1411.35 |
1329.45 |
1411.35 |
| Depreciation |
1558.62 |
1452.07 |
1558.62 |
1452.07 |
| Profit before Tax |
3325.56 |
4134.51 |
3464.67 |
4146.88 |
| Provision for Tax |
941.21 |
1134.38 |
941.21 |
1134.38 |
| Deferred Tax |
(54.34) |
(111.30) |
(54.34) |
(111.30) |
| Earlier years |
109.12 |
188.12 |
109.12 |
188.12 |
| Net Profit |
2329.57 |
2923.69 |
2468.68 |
2935.68 |
| Transfer to Profit & Loss A/c |
2329.57 |
2923.69 |
2468.68 |
2935.68 |
1) REVIEW OF THE OPERATIONS OF SUGAR MILL a) Sugar Mill
Sugar Mill commenced crushing operations for the season 2022-23 on
20-11-2022 and closed on 22-04-2023. The comparative operational results over the last two
seasons are as follows:
| Particulars |
Season 2022-2023 |
Season 2021-2022 |
| Duration (Days) |
154 |
152 |
| Sugarcane Crushed (Quintals) |
6621750 |
6960668 |
| Recovery (%) |
10.05 |
10.01 |
| Sugar produced in quintals |
667800 |
696490 |
During the season, the mill operated for 154 days and crushed 66.21 lac
quintals of sugar cane. The Sugar Mill has produced 667800 quintals of Sugar at an average
recovery of 10.05%. The mill also produced 318982 quintals of molasses at an average
recovery of 4.82.The Sugar unit of the company has achieved turnover & other income of
Rs 27462.50 lacs.
b) Distillery
The Distillery unit has achieved a turnover & other income of Rs.
36172.25 lacs and production details are as under: Country Liqour
The Distillery has produced 58,40,450 cases of Malta, 9121 cases
Marshal Rum under Country liquor category during the year 2022-23.
The brands of the distillery i.e. Malta 50 Degree proof & other
brands continue to be well accepted by the people and have become popular brand in the
State of Haryana.
Indian made foreign liqour (IMFL)
The Company has produced 8315 cases of Golden Wings whisky,49371 cases
of Whistler Whisky , 3912 cases of Kamet (Single Malt Whisky ) ,15145 cases of Indri Trini
(Single Malt Whisky), 253 cases of Camikara Rum and 432 cases of Royal Highland Whisky
under the Indian Made Foreign Liquor (IMFL) category. The company is under process of
making more Indian made foreign liquor (IMFL) products /brands.
The company has received overwhelming response for Kamet (Single Malt
Whisky) & Indri Trini (Single Malt Whisky) from domestic & international markets.
The company has also produced 27.85 quintals of CO2 Gas.
c) Malt Plant
The 10 Kilo Liters per Day Malt Plant to produce Malt Spirit made from
Barley is running perfectly. The qualit of Malt Spirit produced thereat is of very high
standards. The unit has produced 24,85,331.18 bulk liters o Malt Spirit during the year
2022-23.
d) Ethanol
During the year the company has produced 3663949.37 bulk liters of
Ethanol from Grain/ENA which ha been supplied to various oil manufacturing companies.
2. STANDALONE RESULTS:
Your Directors are pleased to state that the year under review ended
with the total income of the Company o standalone basis at Rs.63634.75 lacs with a Profit
before Tax (PBT) of Rs.3464.67 lacs against the income of Rs 57610.33 lacs and Profit
before Tax of Rs. 4146.88 lacs in the previous year. Your Company continuously putting
efforts to increase margins by increasing sales on high margin products and produi mix
optimization. This has resulted in better margins in the sale of products in the
distillery division.
3. CONSOLIDATED RESULTS
The Consolidated financial statements of the company for the year ended
on 31st March 2023 comprises the Standalone Financial Statements of company and its
associates (together referred to as "the group")
The Consolidated revenue of the company during the year under review
was Rs. 63634.75 lacs with a Prol before Tax of Rs. 3325.56 lacs against Rs. 57610.33 lacs
and profit before tax of Rs. 4134.51 lacs in the previous year.
4. DIVIDEND
Your Directors are pleased to recommend a dividend@ 2% i.e. Rs. 0.20
pasie per Equity Share of face valu of Rs.10/- each for the Financial Year ended
31.03.2023.
5. EXPANSION PLANS
Your company has purchased 937000 ordinary Shares of GBP 1 i.e. entire
Share capital in M/s Portavadi Distillers & Blenders Limited at United Kingdom to
establish a distillery in Scotland to make an entry i distillery segment of foreign
markets.
Your company is also planning to establish a distillery of 210 KLPD in
the state of Chhattisgarh and is i process of making necessary applications to the
concerned authorities. The company has also purchase land at village Beltukari and Village
Bhoring, Tehshil- Mahasamund, Dist- Mahasamund, Chhattisgarh for it green field distillery
project.
The Trial runs for the commercial production of Distillery unit on the
enhanced capacity i.e from 90 KLPD t 150 KLPD have already started.
6. SHARE CAPITAL
The paid up Equity Share Capital as at March 31,2023 stood at Rs 94.33
Crore consisting of 9433928 equity Shares of Rs.10/- each. During the year under review,
the company has not issued Shares o convertible securities or Shares with differential
voting rights nor has granted any stock options or swea equity or warrants.
7. SUBSIDIARY/ASSOCIATE COMPANY
The Company has two subsidiary as per following details:
| S.No Name of Company |
Date of Incorporation |
| 1 Portavadie Distillers & Blenders Limited |
30/04/2021 |
| 2 Six Trees Drinks Private Limited |
25/03/2023 |
Associate Company
The Company has one associate at the end of the financial year i.e.
M/s. Piccadily Sugar and Allied Industries Limited, Pursuant to provisions of Section 129
and other applicable provisions of the Act read with Rules made there under, the
performance and financial position of the subsidiaries/associate company are annexed in
Form AOC-1 and marked as "Annexure-C" to the Annual Financial Statements.
8. DIRECTORS & KEY MANAGERIAL PERSONNEL
(a) Independent Directors
As on 31st March, 2023 the company has two Independent Directors on its
board. The Independent Directors have submitted their declartion to the Board that they
fulfill all the requirements as to qualify as an independent director under section 149
(6) of the Companies Act 2013 & 16 (1) (b) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015.
(b) Retirement by Rotation
In accordance with the provisions of Section 152 of the Companies Act,
2013 and Articles of Association of the Company, Ms. Heena Gera (Din no. 08644677)
Director of the Company retires by rotation at the ensuing Annual General Meeting and
being eligible for re-appointment.
(c) Appointment/Re-appointment/ Cessation of Directors
Mr. Harvinder Singh Chopra (Din no. 00129891) re-appointed as Managing
Director of the Company w.e.f 2nd August, 2023 for a period of one year till 1st August
2024 subject to the approval of shareholders in the forthcoming Annual General Meeting.
Mr. Dharmendra Kumar Batra (Din no. 07947018) re-appointed as Whole
time Director of the Company w.e.f 29th June, 2023 for a period of one year till 28th June
2024.subject to the approval of shareholders in the forthcoming Annual General Meeting.
Ms. Heena Gera (DIN No. 08644677) who retires by rotation and being
eligible offers herself for re- appointment.
Mr. Sunder Lal (Din no.00003704) Director has resigned as Independent
Director on 18th April, 2022 due to his personal assignment and there is no other reasons.
Mr Rajeev Kumar Sanger (Din No 08178395) has been appointed as an
Independent Director on 29th June 2022 till 28th June 2027 for a period five years.
(d) Number of meetings of Board of Directors
During the year under review 13 (Thirteen) meetings of the Board of
Directors were held to transact the business of the company. The time gap between the two
consecutive meetings was not exceeding 120 days. Details of the Board meetings including
attendance of Directors at these meetings are provided in the Corporate Governance Report
annexed to this report.
(e) Board Evaluation
The Board has carried out an annual evaluation of its own performance,
performance of its committees, and individual Directors as required under the provisions
of the Act and the Corporate Governance requirements as prescribed by SEBI (LODR)
Regulations 2015
(f) Details of Familiarization Programme
The details of the programme for familiarization of independent
directors with the company, their roles, rights, responsibilities in the company, nature
of industry in which the company operates and related matters are posted on the website of
the company at www.picagro.com.
(g) Committees of Board
Pursuant to requirement under Companies Act, 2013 & Listing
Regulations the Board has constituted the following committees :
a) Audit Committee
b) Stakeholder Relationship Committee.
c) Nomination & Remuneration Committee
d) Corporate Social Responsibility committee.
The details of committees viz composition , number of meeting held
& attendance of committee members in the meeting are given in Corporate Governance
Report forming part of Annual Report.
(h) Key Managerial Personnel
During the financial year ended March 31,2023 the following persons are
the Whole Time Key Managerial Personnel (KMP) of the Company in term of provision of
section 203 of the Companies Act, 2013.
| Sr. No. Name |
Designation |
| 1. Mr. Harvinder Singh Chopra |
Managing Director |
| 2. Mr. Balinder Kumar |
Chief Financial Officer |
| 3. Mr. Dharmendra Kumar Batra |
Wholetime Director |
| 4. Mr Niraj Kumar Sehgal |
Company Secretary |
9. REPORTING OF FRAUD
There was no instance of fraud during the year under review, which
requires the Statutory Auditors to report to the Audit Committee and/or board under
section 143(12) of act and rules framed there under.
10. STATE OF AFFAIRS OF THE COMPANY
The state of affairs of the company is presented as part of Management
Discussion and Analysis Report in a separate section forming part of this report, as
required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015.
11. MATERIAL CHANGES & COMMITMENT AFFECTING THE FINANCIAL POSITION
OF THE COMPANY
There are no material changes affecting the financial position of the
company subsequent to the close of the financial year 2022-23 till the date of report.
12. SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS
There are no significant material orders passed by the regulators or
Courts or Tribunal which would impact the going concern status of the company and its
future operation. However, Members attention is drawn to the statement on Contingent
Liabilities and commitments in the notes forming part of the financial statement.
13. DEPOSITS
Your company has not accepted any deposits from the public during the
year. Further there is not any non- compliance of Chapter 5 of Companies Act 2013 and
rules framed there under.
14. RISK MANAGEMENT
The Company has a Risk Management Committee to identify, assess,
monitor and mitigate various risks to key business objectives. Major risks identified are
systematically addressed through mitigating actions on a continuing basis. These are
discussed at the meetings of the Audit Committee and the Board of Directors of the
Company.
15. LISTING WITH STOCK EXCHANGE
The Company's share continues to be listed at the BSE Limited
(BSE). The Annual Listing fee for the financial year 2023-24 has already been paid.
16. POLICY ON DIRECTORS APPOINTMENT & REMUNERATION
The Company has adopted a Remuneration Policy for executive and
non-executive directors and persons who are appointed in Senior Management and Key
Managerial positions and to determine their remuneration. The remuneration policy is
placed on the Company's website at www.picagro.com
17. AUDITORS & AUDIT REPORT
a. Statutory Auditors
M/s Jain & Associates, the Statutory Auditors of the company were
appointed by the members at the 28th Annual General meeting of the company for an initial
term of 5 years i.e. from the conclusion of 28th Annual General Meeting till the
conclusion of 33rd Annual General meeting of the company pursuant to section 139 of the
Companies Act 2013.They have confirmed that they are not disqualified from continuing as
Auditors of the company.
The Auditors Report does not contain any qualification, reservation or
adverse remark. The Notes on Financial statements referred to in the Auditors report are
self-explanatory and do not call any further comments.
b. Secretarial Auditors
Pursuant to the provisions of section 204 of the Companies Act, 2013
read with the Companies (Appointment and remuneration of Managerial Personnel) Rules 2014
the Board has appointed Mr. Prince Chadha, Practicing Company Secretary as Secretarial
Auditors of your company for the financial year 2023-2024.
The Secretarial Audit report for the financial year 2022-23 is annexed
to this report as "Annexure-A".
The Auditors Report does not contain any qualification, reservation or
adverse remark. c. Cost Auditors
The Board of Directors upon recommendation of the Audit committee
appointed Mr. Sanjeev .K. Bansal, Cost Accountant as the Cost Auditor of the company to
conduct cost audit for its Sugar & Distillery unit the financial year 2023-2024.M/s
Sanjeev K Bansal & Associates, Cost Accountants, firm Registration no 103128 has
submitted a certificate of eligibility for appointment
In accordance with the provisions of section 148 of the Act read with
the Companies (Audit & Auditors) Rules, 2014, the remuneration payable to the Cost
Auditors has to be ratified by the shareholders of the company. Accordingly consent of
members is sought in the ensuing Annual General Meeting.
18. AMOUNTS PROPOSED TO BE CARRIED TO RESERVES
Particulars of the amounts proposed to be carried to reserves have been
covered as part of the financial performance of the company.
19. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
As required under Section 134 (3)(m) of the Companies Act 2013 read
with rule 8 of the Companies (Accounts) Rules 2014, the information relating to the
conservation of the energy, technology absorption and foreign exchange earnings and outgo,
is annexed and forms part of the report as per "Annexure-B".
20. CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
The Board has framed a Policy on related party transactions and placed
the same on the Company's website. The related party transactions between the Company
and the Directors, Key Management Personnel, the subsidiaries, or the relatives have been
disclosed in the financial statements in Notes to Financial Statements and compliance of
Section 188(1) of the Act have been duly made wherever applicable.
21. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and investments covered under the
provisions of Section 186 of the Companies Act,2013 are given in the notes to the
Financial Statements, and however there is no transaction during the year.
22. INTERNAL CONTROLS
The Audit Committee actively reviews the adequacy and effectiveness of
the internal control systems and suggests improvements to strengthen the same. The
Management Information System of the Company is an integral part of the control mechanism.
The Audit Committee, Board of Directors, Statutory Auditors and the
Business Heads are periodically apprised of the internal audit findings and the corrective
actions taken.
Audit plays a key role in providing assurance to the Board of
Directors. Significant audit observations and corrective actions taken by the management
are presented to the Audit Committee of the Board. To maintain its objectivity and
independence, the Internal Auditor has an access to the Chairman of the Audit Committee.
23. CHANGE IN THE NATURE OF BUSINESS
During the year under review, there has been no change in the nature of
business of the company.
24. EXTRACT OF ANNUAL RETURN
As per the requirements of Section 92(3) of the Act and Rules framed
thereunder, the extract of the Annual Return for FY 2022-23 is uploaded on the website of
the Company and the same is available at www.picagro.com.
25. CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE-CSR REPORT
(CSR) Policy has been posted on the website at www.picagro.com. In
compliance with the disclosure about CSR Policy Rules, 2014. During the year under review,
the Company was required to spend Rs. 39,98,717/- on CSR activities. The Company has spent
Rs. 43,15,918/-. The amounts have been spent on distribution of Tiranga distribution,
Blood donation camp & medicine, donation of sewing machine & cycles, donation of
ambulance and charitable donation. The detailed report as per Section 135 of the Companies
Act, 2013 read with the Companies (CSR Policy) Rules, 2014 has been attached as Annexure
E.
26. ENVIRONMENT / POLLUTION CONTROL, HEALTH AND SAFETY:
A clean environment and safe operations has always been top priority of
the management. Safety of all employees, compliances of environmental regulations and
preservation of natural resources are regularly monitored. The effluent and emissions from
the plants are regularly monitored and treated. The company has also installed Zero Liquid
Discharge (ZLD) facilities.
27. CEO/CFO CERTIFICATION:
In terms of the SEBI (Listing obligation and disclosures requirement)
2015, the Certificate duly signed by Mr. Harvinder Singh Chopra, Managing Director &
Mr Balinder Kumar, Chief Financial Officer (CFO) of the Company was placed before the
Board of Directors along with the annual financial statements for the year ended on March
31,2023, at its meeting held on 26th May 2023. The said Certificate is also annexed to the
Corporate Governance Report.
28. MANAGEMENT DISCUSSION AND ANALYSIS & CORPORATE GOVERNANCE&
POLICIES
Pursuant to regulation 34 (3) of SEBI (Listing obligation and
disclosure requirements) 2015.Management discussion and Analysis, Corporate Governance
Report and Auditors certificate regarding compliance of conditions of corporate governance
are made part of the Annual Report as per "Annexure-G".
Your board has in accordance with the requirements of Companies Act
2013 & SEBI (Listing obligation and disclosures requirement) 2015 has adopted policies
such as Related Party Transaction, Corporate Social Responsibility Policy, Whistle Blower
, Vigil Mechanism policy etc. These policies are available on the website of the company
and can be viewed on www.picagro.com.
Your board has in accordance with the requirements of Companies Act
2013 & SEBI (Listing obligation and disclosure requirements) 2015, has formed
Nomination & Remuneration Committee, Corporate Social Responsibility Committee, Audit
Committee & Stakeholders relationship Committee is given in "Annexure- G".
29. WHISTLE BLOWER / VIGIL MECHANISM POLICY
Whistle Blower / Vigil Mechanism policy regulation 22 of the Listing
regulations and subsection (9 & 10) of section 177 read with rule 7 of the companies
(Meetings of Board & its powers) Rules, 2014, inter-alia, provides, for all listed
companies to establish a Whistle Mechanism called ''whistle blower policy'' for Directors
& employees to report genuine concerns about unethical behavior, actual or suspected
fraud or violation of the company's code of conduct or ethics policy.
As a conscious & vigilant organization, the company believes in the
conduct of the affairs of it constituents in a fair & transparent manner, by adopting
the highest standards of professionalism, honesty, integrity & ethical behavior. In
its endeavor to provide its employee a secure & fearless working environment, the
company has established the 'Whistle Blower Policy'.
The Whistle Blower Policy and establishment of Vigil Mechanism have
been appropriately communicated with in the company.. The purpose of the policy is to
create a fearless environment for the Directors & employees to report any instance of
unethical behavior, actual or suspected fraud or violation of the company's code of
conduct or ethics policy. It protects Directors & employees can raise a concern about
serious irregularities within the company.
During the year, the company has not received any complaint under Vigil
mechanism / whistle blower policy.
30. INSURANCE
The Company has taken adequate Insurance policies for its assets
against the possible risks like fire, flood, public liability, marine etc.
31. POLICY ON SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSED ACT 2013)
Your company is committed in creating & maintaining a secured work
environment where is its employees, agents vendors & partners can work and pursue
business together in an atmosphere free of harassment, exploitation & intimidation. To
empower women & protect woman against sexual harassment a policy for prevention of
sexual harassment had been rolled out & internal complaints committee as per legal
guidelines had been setup. This policy allows employees to report sexual harassment at the
work place. The internal committee is empowered to look into all complaints of sexual
harassment& facilitate free & fair enquiry process with cleat timelines .The
policy on prevention of sexual harassment is also posted on the website of the company.
During the year ended 31st March 2023, No complaints pertaining to
sexual harassment was received by the company.
32. EMPLOYEES AND INDUSTRIAL RELATIONS
The Board of Directors and the Management are extremely thankful to all
the employees for their commitment, competence and dedication in the affairs of the
Company. The relation between the management and employees are transparent, healthy and
cordial.
The Board of Directors are pleased and place on record its appreciation
for all categories of employees for their sincere efforts and the sense of belongingness
and commitment towards the Company.
Further, particulars of employees pursuant to Rule 5(2) & (3) of
the above Rules, form part of this Report. However, in terms of provisions of Section 136
of the Act, the Report and Accounts are being sent to all the Members of the Company and
others entitled thereto, excluding the said particulars of employees. The said information
is available for inspection at the Registered Office of the Company during business hours
on working days up to the ensuing AGM. Any Member interested in obtaining such particulars
may write to the Company Secretary.
33. DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 134 (3) (c) and section
134(5) of the Companies Act 2013, your Directors hereby report that:
a) In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to material
departures.
b) The Directors had selected such accounting policies and applied them
consistently and made judgment and estimates that are reasonable & prudent so as to
give true and fair view of the state of affairs of the Company at the end of the financial
year and of the Profit & Loss of the Company for the said period.
c) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of this Act
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities
d) The Directors have prepared the Annual Account ongoing concern
basis.
e) The Directors in the case of a listed company had laid down internal
financial controls to be followed by the company and that such internal financial controls
are adequate and were operating effectively.
f) The Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were adequate and operating
effectively.
34. SECRETARIAL STANDARDS:
The Company has complied with the applicable Secretarial Standards
issued by the Institute of Company Secretaries of India.
35. INSOLVENCY AND BANKRUPTCY CODE UPDATE
No application has been made / No proceeding is pending under the
Insolvency and Bankruptcy Code, 2016 during the year under review.
36. VALUATION FOR ONE TIME SETTLEMENT WITH BANK AND FINANCIAL
INSTITUTION:
The Company has not made any valuation for one-time settlement with
banks and financial Institution. Hence, there is no reason for elaboration on the said
aspect.
37. DEMAT SUSPENSE ACCOUNT
The company has not transfer any equity share(s) to Demat Suspense
Account during the year.
38. APPRECIATION
Your Directors wish to place on record their appreciation towards the
contribution of all the employees of the company and their gratitude to the company's
valued customers, farmers, bankers, vendors, for their continued support and confidence in
the company.
|
For Piccadily Agro
Industries Limited |
|
Sd/- |
Sd/- |
| Date: 17/08/2023 |
(Akhil Dada) |
(Harvinder Singh Chopra) |
| Place: Chandigarh |
Chairman |
Managing Director |
|
DIN No. 02321706 |
DIN No. 00129891 |