Climate Change Data

Environmental Metrics

Social Achievements

• Runs a primary school benefitting all the children in the neighbourhood.
• Promoted and continues to support the establishment of 3 Lift Irrigation Schemes to bring about 950 acres of dry lands under irrigation and crop cultivation, using the treated trade effluents of neighbouring paper mill, thus turning a waste into wealth.

Governance Achievements

• Adopted various policies like Related Party Transactions Policy and Whistle Blower Policy and put in place budgetary control and monitoring measures for ensuring the orderly and efficient conduct of the business of the company, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
• Formulated a Code of Conduct for Directors and Senior Management Personnel of the Company

Environmental Challenges

• Diminutive operations due to recurrent drought
• Persistent sugar glut defying trade cycles
• Plummeting sugar prices to 6 year low
• Formidable financial losses
• Depressive near term industry outlook
• High cost of raw material
• Undue delay and erratic time schedule in realizing the dues from TANGEDCO for the committed power supply under the long term PPA
• Levy sugar price differential of ` 2.2 crores pertaining to 2009-10 season still remains unrealized from FCI
• Unlawful withholding of subsidy amount of ` 6.9 crores by SDF
• Imposition of VAT on sugar from 1st November 2014 in the absence of VAT impost in the neighbouring competing States

Mitigation Strategies

• Unleashed a slew of internal cost cutting measures to combat current adversities
• Proactively pegged cane price for the year at 2013-14 season level in line with other private sector sugar mills, by collectively challenging the enforcement of State Advised Price that is only recommendatory in nature in Tamil Nadu
• Optimized on the chemical consumption and achieved improved efficiencies in its Cogen plant
• Capex and Repairs budgets have been considerably pruned compatible with our constricted cash flow
• Pre-paid term loan installments due till end of March 2016 to Canara Bank

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• drought

Environmental Metrics

Environmental Achievements

• Reduced coal use to around 5%, despite regulatory norm permitting fossil fuel use up to 15% to qualify as renewable energy producer
• Continuous improvements and fine tuning of our cogen system led to the lowest ever specific steam consumption for the current year

Social Achievements

• Runs a primary school benefitting all the children in the neighbourhood
• Promoted and continues to support the establishment of three Lift Irrigation Schemes

Governance Achievements

• The company maintains all its records in ERP system developed in-house and the work flow and approvals are routed through this system
• The Board of Directors have adopted various policies like Related Party Transactions Policy and Whistle Blower Policy and put in place budgetary control and monitoring measures for ensuring the orderly and efficient conduct of the business of the company, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

Climate Goals & Targets

Environmental Challenges

• Heightened harvest labour challenge. Frequent absenteeism and formidable rise in harvest charges harrowingly lead to despicable disruption in daily crushing schedule besides denuding farmers’ margin
• Draconian delay in realization of power dues from TANGEDCO
• Sky rocketing fuel prices for both fossil and bio-fuel
• Average sugar realization during FY 2021-22 was about 10% lower while cane cost catapulted 20% higher as compared to corresponding figures five years ago
• Cumbersome and time consuming process for environmental clearance for ethanol plant
• Stressed finances of Discoms, more significantly in Tamil Nadu, would continue to pose realization challenge for power dues

Mitigation Strategies

• Drawn up a clear roadmap for phased implementation of mechanized harvest in its area of operation
• Consciously curtail coal use
• Continuous improvements and fine tuning of our cogen system
• Approached the State and sought amendment / clarification to this G.O. so as to broad-base the available exemption to cover allied products as well such as ENA and RS
• Would make appropriate representation towards protecting our entitlement for this subsidy (interest subvention support)
• Persist with its drive for mechanization to mitigate the crisis (harvest labour shortage)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Repeated monsoon failure, frail flow in river Cauvery and dead storage level in Mettur reservoir

Reporting Standards

Frameworks Used: Ind AS

Third-party Assurance: M/s. S Viswanathan LLP

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Reduced energy consumption by 330 units per day; further reduction of 1400 units per day proposed.
• Steam consumption reduction by about 2%.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Escalating harvest labor challenges (availability and affordability),
• Crash in sugar prices after November 2021,
• Egregious cost pressures in cogeneration operations due to rising fuel prices and monsoon disruption,
• Elusive power tariff revision,
• Changes in REC entitlement and trading rules,
• Obstacles in obtaining environmental clearance for ethanol project,
• Muted growth in fresh cane planting due to high cultivation costs and competing crops.

Mitigation Strategies

• Focus on fresh planting and cane variety/quality improvement,
• Cost optimization measures,
• Energy Efficiency Project (Phase 1 completed, Phase 2 planned),
• Seeking clarification from GoTN on ethanol project location and product mix under the new Ethanol Blending Policy 2023,
• State-of-the-art technology for ethanol plant to ensure zero liquid discharge.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Monsoon failure, water stress

Transition Risks

• Regulatory changes (power sector, ethanol), market shifts (sugar, power, molasses)

Opportunities

• Ethanol production

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed