MIRA INFORM REPORT
|
Report
Date : |
22nd May 2006 |
IDENTIFICATION
DETAILS
|
Name : |
CEPHAM MILK SPECIALITIES LIMITED |
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Registered
Office : |
Village Bhagwas, 6 K M Derabassi, Barnala Road, Derabasi,
Dist Patiala – 140 507, Punjab, INDIA |
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Country: |
India |
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Financials
as on: |
31.03.2006 (Summarised) |
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Date
of Incorporation : |
13.12.1996 |
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CIN
No.: |
L15203PB1996PLC019162 |
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TAN
No.: |
PTLC11037F |
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PAN
No.: |
AAACCC8569M |
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Com.
Reg. No.: |
19162 |
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Legal
Form : |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
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Line
of Business : |
Manufacturer, Importer, Exporters and Traders of Casein,
Cheese, Lactose, Ghee, Dairy Whitner, etc. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ca |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
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Maximum
Credit Limit : |
-- |
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Status
: |
Sick Unit |
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Payment
Behaviour : |
Unknown |
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Litigation
: |
Unknown |
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Comments
: |
Though
subject is an old company, it is passing through difficult times and has been
declared as sick unit. The company has huge accumulated losses. Payments are
reported as slow and delayed. The
company can be considered for any business dealings on fully safe and secured
trade terms and conditions, only. |
LOCATIONS
|
Registered
Office : |
Village Bhagwas, 6 K M Derabassi, Barnala Road, Derabasi,
Dist Patiala – 140 507, Punjab, INDIA |
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Tel.
No.: |
91-1762-2432512 |
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Fax
No.: |
91-1762-2430797/
2432514 |
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E-Mail
: |
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Website
: |
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Head
Office : |
Located
at :- Ř
SCO
11A, First Floor, Sector 7C, Madhya Marg, Chandigarh – 160 019, India |
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Factory
1 : |
Located
at :- Village
Bhagwas, 6 K M Derabasi, Barwala Road, Derabasi, Patiala – 140 507, Punjab,
India |
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Tel.
No.: |
91-1762-2432512
|
|
Fax
No.: |
91-1762-2430797 |
DIRECTORS
|
Name : |
Mrs.
Kalpana Mittal Baruah |
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Designation
: |
Chairperson |
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Name : |
Mr. Dewan C. Pruthi |
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Designation
: |
Managing Director |
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Name : |
Mr. B. S. Rao |
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Designation
: |
Nominee Director (IDBI) |
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Name : |
Mr. A. K. Mahajan |
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Designation
: |
Nominee Director (PSIDC) |
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Name : |
Mr. Sameer Pruthi |
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Designation
: |
Director |
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Name : |
Mr. H. Youshiumi |
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Designation
: |
Director |
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Name : |
Mr. Sunil Diwakar |
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Designation
: |
Director |
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Name : |
Mr. Puneet Pruthi |
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Designation
: |
Director |
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Name : |
Mr. S. K. Sharma |
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Designation
: |
Director |
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Name : |
Mr. J. S. Mann |
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Designation
: |
Director |
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Name : |
Mr. H. S. Goswami |
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Designation
: |
Director |
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OTHER
PERSONNEL: |
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Name : |
Mr. Ravinder Kumar |
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Designation
: |
Company Secretary |
BUSINESS
DETAILS
|
Line
of Business : |
Manufacturer, Importer, Exporters and Traders of Casein,
Cheese, Lactose, Ghee, Dairy Whitner, etc. |
PRODUCTION STATUS
The
company’s production status for year ended 31st March, 2002 was as
under :-
|
Product Description |
Installed Capacity |
Actual Production |
|
Cheese - M.T. |
4017 |
2201.63 |
|
Lactose - M.T. |
4800 |
1763.45 |
|
Ghee – M.
T. |
9750 |
2403.68 |
|
W.P.C. –
M. T. |
1530 |
939.57 |
|
Whey
Mineral – M. T. |
360 |
000 |
|
Dairy
whitner – M. T. |
-- |
54.32 |
|
Cal.
Sennaside – M. T. |
-- |
8.79 |
GENERAL INFORMATION
|
No. of
Employees : |
213 |
|
|
|
|
Bankers
: |
Ř
Bank
of Baroda Ř
Bank
of India, Chandigarh Ř
Punjab
& Sind Bank Ř
Punjab
National Bank, SAS Nagar, Mohali Ř
State
Bank of Patiala, Chandigarh |
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Facilities : |
-- |
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Banking Relations : |
Unknown |
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Auditors
: |
Ř
J P
Chawla & Company Chartered Accountants |
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Associates/Subsidiaries
: |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs.10/-
Each |
Rs.
2500.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
12,496,600 |
Equity Shares |
Rs.10/-
Each |
Rs.
124.966 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2002 |
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SHAREHOLDERS
FUNDS |
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|
|
|
1] Share
Capital |
|
|
124.967 |
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2] Share
Application Money |
|
|
0.000 |
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|
3]
Reserves & Surplus |
|
|
115.296 |
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4]
(Accumulated Losses) |
|
|
(574.627) |
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NETWORTH
|
|
|
(334.364) |
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|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
|
|
681.084 |
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2]
Unsecured Loans |
|
|
5.589 |
|
TOTAL
BORROWING
|
|
|
686.673 |
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|
DEFERRED
TAX LIABILITIES |
|
|
0.000 |
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|
|
|
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TOTAL
|
|
|
352.309 |
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APPLICATION OF FUNDS
|
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|
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|
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FIXED ASSETS [Net Block]
|
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|
310.901 |
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Capital work-in-progress
|
|
|
0.000 |
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|
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INVESTMENT
|
|
|
0.000 |
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DEFERREX TAX ASSETS
|
|
|
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
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Inventories
|
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|
61.482 |
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Sundry Debtors
|
|
|
38.926 |
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Cash & Bank Balances
|
|
|
0.826 |
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Other Current Assets
|
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|
45.339 |
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Loans & Advances
|
|
|
0.000 |
Total Current Assets
|
|
|
146.573 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
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Current Liabilities & Provisions
|
|
|
108.057 |
Total Current Liabilities
|
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|
108.057 |
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Net
Current Assets
|
|
|
38.516 |
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MISCELLANEOUS EXPENSES
|
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|
2.892 |
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TOTAL
|
|
|
352.309 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
|
31.03.2002 |
Sales Turnover [including other income]
|
|
|
706.107 |
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|
Profit/(Loss) Before Tax
|
|
|
(185.031) |
Provision for Taxation
|
|
|
-- |
Profit/(Loss) After Tax
|
|
|
(185.031) |
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Export Value
|
|
|
17.017 |
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|
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Import Value
|
|
|
625.903 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
31.03.2006 [Full Year] |
31.03.2005 [Full Year] |
|
|
|
|
|
|
Sales Turnover |
|
774.700 |
1170.200 |
|
Other Income |
|
1.200 |
0.00 |
|
Total Income |
|
775.900 |
1170.200 |
|
Total Expenditure |
|
800.700 |
1117.000 |
|
Operating Profit |
|
(24.800) |
53.200 |
|
Interest |
|
171.800 |
149.600 |
|
Gross Profit |
|
(196.600) |
(96.400) |
|
Depreciation |
|
22.600 |
22.600 |
|
Tax |
|
0.00 |
0.00 |
|
Reported PAT |
|
(219.200) |
(119.000) |
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200603 The company is registered with BIFR as case no 202/2002 and has been declared as a sick industrial unit by hon'able BIFR in the hearing held on 19/07/2005. IDBI has been appointed as operating agency and draft rehablitation scheme is under preparation. 2. Turnover during the quarter ended 31/03/2006 has decreased to 18.794 millions from 475.626 millions as compared to the previous year in the same quarter, and losses has increased to Rs.92.997 millions from loss of Rs. 49.004 millions. The milk derivatives segmen was closed on 20-2-2006 due to non availabiliy to quality milk. 3. The company is engaged maily in the manufacture of milk products and Milk derivatives. However, the company has diversified into herbal products. The Segments wise results are not given as the turnover and investment in herbal division is less that 10% of Total Turnover & investment. 4. The status of Shareholders complaints Opening Balance - 233, Received During the the Quarter - 85, Complaints Settled - 314, Closing Balance - 4. 5. The above results were approved and taken on record by the board on 28-4-2006.
KEY
RATIOS
|
PARTICULARS |
|
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|
31.03.2002 |
PAT / Total Income
|
(%)
|
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(26.20) |
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Net Profit Margin
(PBT/Sales) |
(%) |
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(26.20) |
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
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(40.44) |
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Return on Investment (ROI)
(PBT/Networth) |
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(0.55) |
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Debt Equity Ratio
(Total
Liability/Networth) |
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(2.37) |
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Current Ratio
(Current
Asset/Current Liability) |
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1.35 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was
incorporated on 10th April, 1991 at Patiala in Punjab having Company
Registration Number 19162.
Subject was
promoted by Punjab State Industrial Development Corporation (PSIDC) and Dewan
Pruthi along with Cepham Organics (belonging to the Cepham group). Other
companies promoted by the group include Rajasthan Antibiotics, Cebon India,
etc. The company is managed by Chairman Mr. P S Bajwai and Managing Director
Mr. Dewan Pruthi.
The company
came out with a public issue at a premium of Rs. 10, aggregating Rs. 75.3
millions, in January, 1995 to part-finance the manufacture of casein and
lactose. Total project cost was estimated at Rs. 460 millions.
The company
has a technical collaboration with West Falia Separator, Germany, to
manufacture casein and lactose, its major products. The company has also
entered into a buyback agreement with Sophia Burson, Japan, which will buy its
entire production of casein for a period of ten years. The company also has an
obligation to export production worth four times the CIF value of the capital
goods imported under the EPCG scheme with a period of five years. The company
has received Export Certificate Award from APEDA, ministry of commerce for
excellent performance in export.
BUSINESS :
Subject is
engaged in the business as manufacturer, importer, exporters and traders of
casein, cheese, lactose, ghee, dairy whitner, etc.
Subject is
also engaged in manufacturing of milk products, ghee, cheese and others.
During the
period under report, the company achieved a turnover of Rs. 706.107 millions
which includes exports turnover of Rs. 361.990 millions.
The company
suffered heavy losses during 1996-97 because of high milk costs, irregular milk
supply and inadequate working capital facilities resulting in non-optimum
utilisation of plant capacities. Besides, the loss was also incurred due to
non-achievement of standard yield of Casein and Lactose caused by severe
difficulties faced in absorption of technology supplied for the first time in
India by Westfalia Separator, AG, Germany. The profit margins were also
squeezed due to competitive market conditions both in international and
domestic markets for the sale of Casein and Lactose. In addition to this, high
interest burden of term liabilities and closure of plant for about three months
during May 1997 – August 1997, being lean period, also contributed to the loss.
EXPORT REWARD
Despite all
the odd faced by the company, the company continued their stress on exports.
The company has received Export Certificate Award from Agricultural and
Processed Foods Export Development Authority (APEDA), Ministry of Commerce for
excellent performance in export of Casein to the tune of Rs. 290 millions
during the period 1st April, 1996 to 31st March, 1997,
which was very first year of operations after start of commercial production in
December, 1995.
PROGRAMME TO IMPROVE THE VIABILITY OF THE COMPANY
The company
has taken the following steps to improve the viability of the company.
Plant for Whey Protein Concentrate
The company
was losing on account of Whey Protein Concentrate (WPC) present in the mother
liquor as it was being drained after the production of Casein and Lactose.
After making a cost benefit analysis, the company put up the Whey Protein
Concentrate plant in collaboration with Landau Group, United States of America
who supplied Ultra Filtration Plant on deferred payment basis. The plant has
been commissioned in February, 1998. The most important feature of this project
is that it would not have any raw material cost as the mother liquor presently
being drained out shall be the raw material for this project. Annually, this
project would enhance turnover by about Rs. 75 millions including export
turnover of Rs. 45 millions. The Whey Protein Concentrate project would
contribute approximately Rs. 40 millions towards the bottom line of the
company.
Reduction of Interest Burden
The company
has submitted a detailed proposal to IDBI for funding of interest, waiver of
compound and panel interest, rephasement of principal and conversion of entire
Rupee Term Loans in Foreign Currency as the company’s export for the period
under review was Rs. 319.2 millions and the projected export turnover for the
next year is around Rs. 400 millions.
Industrial
Development Bank of India (IDBI) has advised the company to approach IDBI with
a specific proposal for reschedulement/funding etc. and clear part of the dues.
The company will be submitting the revised proposal to IDBI shortly.
It is in
trade terms with :
Ř
Bakeman
Milk Products Limited, Patiala, Punjab
Subject
operates from caption owned factory-cum-office premises of area admeasuring 5
acres.
GROUP COMPANIES
Ř
Rajasthan
Antibiotics Limited
Ř
Cabon
India Limited
WEBSITE DETAILS ATTACHED:
About Us
Cepham Milk
Specialities Ltd. has set up an ultra modern Dairy Unit in Joint Venture with
CEPHAM GROUP and Punjab State Industrial Development Corpn. Ltd., at a total
initial capital outlay of $11 Million to manufacture Acid Casein (Edible
grade), Lactose (Pharmaceutical Grade) by handing 500,000 Ltr milk per day. The
company started commercial production in December 1995. With further,
investment, Cepham has created facilities to manufacture Ghee (Butter Oil),Whey
Protein Concentrate – 40 and Di-Calcium Phospahte ( Milk Minerals, Milk
Phosphate). The total capital out lay is $14 Millions. The technology for manufacture
of Casein and Lactose has been supplied by M/s Westfalia Separators AG,Germany
and plant and machinery has been imported from best manufacturers from all over
the world. This is the biggest plant of its kind in India. The project has been
financed by leading Financial Institutions of India and has equity
participation from Sophia Bussan Inc. , Japan.
At CEPHAM
GROUP, we have other manufacturing Units namely, Cebon India Ltd.
and Rajasthan Antibiotics Ltd. Cepham has started production of new products
i.e. Calcium Senosides 20%, 40%, 60%, Reserpine and Butyl Bromite in sister
concern Cebon Inda. The group has the turnover of $50 million. The product has
been accepted in quality conscious markets of Germany, Switzerland, Holland,
Singapore, Taiwan, Hongkong, Korea, Japan and U.S.A.
At Cepham, we
are driven by our motive GROWTH THROUGH GLOBAL VISION.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited transactions
or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders, director,
officer or employee of the company is a government official or a family member
or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 45.16 |
|
UK Pound |
1 |
Rs. 78.52 |
|
Euro |
1 |
Rs. 53.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING
SCALE |
1~10 |
2 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
-- |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT
LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
17 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |