MIRA
INFORM REPORT
|
Report Date : |
12.04.2007 |
IDENTIFICATION
DETAILS
|
Name |
SIEL LIMITED |
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Formerly Known As : |
SHRIRAM INDUSTRIAL ENTERPRISES LIMITED |
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Registered Office : |
5th Floor, Kirti Mahal, 19, Rajendra Place, New Delhi-110 008 |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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Date of Incorporation : |
27.03.1961 |
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Com. Reg. No.: |
3413 |
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TAN No.: (Tax Deduction & Collection Account No.) |
DELS22826G |
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PAN No.: (Permanent Account No.) |
AAACS4902Q |
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Legal Form : |
Subject is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of sugar, caustic
soda and vanaspati. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 7500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
5th Floor, Kirti Mahal, 19, Rajendra Place, New Delhi-110 008 |
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Factory 1 : |
Chemical factory
Siel Chemical Complex, Charatrampur,
Village Khadauli/Sardargarh, P. O. Box No. 52, Rajpura, Distt. Patiala -
140401, Punjab Tel. No. 91-1762-228540-49 Fax. No. 91-1762-225403 Sugar factories
v
Mawana Sugar Works, Mawana,
Distt. Meerut –250402, Uttar Pradesh v
Titawi Sugar Complex,
Village and P. O. Titawi, Distt. Muzaffarnagar – 251301, Uttar Pradesh |
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DIRECTORS
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Name : |
Mr. Ahooja R.K. |
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Designation : |
UTI Nominee |
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Name : |
Mr. Bhalla P.K. |
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Designation : |
Whole
Time Director |
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Qualification : |
B.
Sc., L. L. B., FCS |
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Date of Appointment : |
18.08.1990 |
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Previous Employment: |
J. K.
Synthetics Limited – General Manager – Legal |
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Name : |
Mr. Lahiri
Subrata |
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Designation : |
IFCI Nominee |
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Name : |
Mr. Mehra A.K. |
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Designation : |
Director |
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Qualification : |
M.
Sc. (Chem. Engg) |
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Date of Appointment : |
11.06.1973 |
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Name : |
Prof. Mohan
Dinesh |
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Designation : |
Director |
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Age : |
61 years |
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Qualification : |
Ph. D. and M.S. in
Bioengineering, M. S. in Mechanical and Aerospace Engineering, B. Tech.
(Hons.) in Mechanical Engineering. |
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|
Prof. Dinesh
Mohan is Henry Ford Professor for Biomechanics and Transportation
Safety and Co-ordinator of the Transportation Research and Injury Prevention
Programme at the Indian Institute of Technology (NT), Delhi. He is member of
the WHO Advisory panel on Accident Prevention. He serves on the editorial
boards of the international journal. Professor Mohan has been a consultant on
safety related matters to government departments in India, Nepal, Indonesia,
Thailand, Bangladesh, Iraq and Libya and many automotive industrial houses. Recipient of many
prestigious awards. |
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Chairmanship/Membership of the Board Committee : |
Siel Limited - Audit
Sub-Committee - Chairman Shareholders/Investors
- Chairman Grievance/Share
Transfers Remuneration
Committee - Member |
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Name : |
Mr. Shriram
Siddharth |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Singh K. P. |
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Designation : |
Whole-time
Director |
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Age : |
70 years |
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Qualification : |
M. A. in History
and Political Science |
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Expertise : |
Vast experience
of working at senior position in various Companies like Zuari Agro Chemicals Limited.
(a Birla Group Company), ITC Limited and DCM Limited. Instrumental in
implementation of growth and diversification of these Companies. Director of
the Company since 1990 and presently holding the position of Whole Time
Director of the Company. |
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Other Directorships : |
Sowar Private
Limited |
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Chairmanship/Membership of the Board Committee : |
Siel Limited -
Shareholders/Investors Grievance/ Share Transfers . . - Member Legal
Sub-Committee - Member |
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Name : |
Mr. Khaitan O P |
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Designation : |
Director |
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Age : |
63 years |
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Qualification : |
B. Com., LL.B,
Attorney-at-Law (Solicitor), Received Bell Chambers Gold Medal from Calcutta
High Court |
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Experience : |
Practising as
Solicitor & Advocate since 1967- doing commercial law, corporate law,
industrial disputes and labour law, maritime laws, insurance laws, commission
of inquiry, arbitration, conveyancing, foreign collaborations etc. He is sole
proprietor of M/s O.P. Khaitan & Co., Solicitors & Advocates. |
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Other Directorships : |
ECE Industries
Limited J.K. Industries
Limited Honda Siel Power
Products Limited Shriram Pistons
& Rings Limited WGF Financial
Services Limited Curls &
Curves (I) Limited J.K. Employees
Welfare Association Limited. llpea Paramount
Limited Sharda Motor
Industries Limited Nipshell Builders
Private. Limited. |
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Chairmanship/Membership of the Board Committee : |
J.K. Industries
Limited- Shareholders/Investors Grievance Committee – Member, Audit Committee . - Chairman Honda Siel Power
Products Limited - Remuneration Committee – Member, Audit Committee - Member ECE Industries
Limited- Audit Committee - Member Shriram Pistons
& Rings Limited.- Remuneration Committee - Member llpea Paramount Limited.-
Remuneration Committee – Chairman, Audit Committee - Chairman Siel Limited-
Audit Committee ' - Member |
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Name : |
Mr. Golia N. K. |
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Designation : |
Whole-time
Director |
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Age : |
59 years |
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Qualification : |
B.Tech (Mechanical
Engg) from I IT Delhi (with Distinction). MBA from Faculty
of Management Studies, University of Delhi |
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Experience : |
Mr. N.K. Goila is
associated with the Group for more than 38 years. He has worked in various
areas of Management and has made significant contributions to
the Japanese Joint Ventures of the Company. Presently he is the Vice
President & Di'rector of Honda Siel Cars India Limited. |
|
Other Directorships : |
Mawana Sugars
Limited Honda Siel Cars
India Limited Usha International
Limited The Jay
Engineering Works Limited Siel Holdings
Limited Shriram Fuel
Injection Industries Limited |
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Chairmanship/Membership of the Board Committee : |
Honda Siel Cars
India Limited.- Audit Committee
Member Borrowing &
Investment Committee- Member Usha
International Limited.- Share Transfer
& Shareholders/ Investors
Grievances Committee- Chairman Audit Committee-
Chairman Remuneration
Committee- Member The Jay
Engineering Works Limited – Audit
Sub-Committee- Member Shriram Fuel Injection
Industries Limited.- Remuneration
Committee Chairman Audit
Sub-Committee Member Mawana Sugars
Limited Member Remuneration
Committee Member Audit
Sub-Committee Member Shareholders/Investors
Grievance/ Share Transfers
Committee Chairman Banking &
Investment Committee Member |
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Name : |
Mr. Mittal D C |
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Designation : |
Whole-time
Director |
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Age : |
79 years |
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Qualification : |
Post Graduate and
Gold Medalist |
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Experience : |
Mr. D.C. Mittal has
rich managerial experience for almost 50 years. He has held many
very senior important positions covering all management functions including
financial, commercial, administration, human relation etc. Considerable
experience in management/execution of many big industrial projects like
fertilizer, plastic, chemicals etc. He is presently
holding a very important position in a large industrial house. He is also
associated with various business associations and academic organizations. |
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Chairmanship/Membership of the Board Committee : |
Siel Limited -
Audit Sub-Committee - Member Remuneration
Committee - Chairman |
KEY EXECUTIVES
|
Name : |
Mr. Jain Sushil |
|
Designation : |
Company secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter's Holding |
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|
Indian Promoters |
3873611 |
21.15 |
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Persons acting in
concert |
159179 |
0.87 |
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Non Promoter's Holding |
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Institutional Investors |
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Mutual Funds and UTI |
13514 |
0.07 |
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Banks, Financial Institution,
Insurance companies |
881259 |
4.81 |
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Others Investors |
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Private Corporate Bodies |
9827987 |
53.66 |
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Indian Public |
2483327 |
13.56 |
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NRIs/OCBs |
849200 |
4.64 |
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Others GDRs Shares Foreign Banks |
225538 1687 |
1.23 0.01 |
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Grand Total
|
18315302 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of sugar, caustic soda
and vanaspati. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Vanaspati/ Refined Oil |
M.T. per day |
-- |
-- |
-- |
|
Caustic soda |
M.T.per annum |
132,000 |
82,500 |
69362 |
|
Caustic flakes |
M.T.per annum |
33,000 |
33,000 |
11085 |
|
Chlorine (dry and
liquid) |
M.T.per annum |
116,600 |
73,095 |
66544 |
|
Hydrogen |
M.T.per annum |
2,100 |
2,063 |
1878 |
|
Hydrochloric acid |
M.T.per annum |
-- |
66,000 |
28896 |
|
Stable bleaching
powder |
M.T.per annum |
-- |
18,000 |
14386 |
|
Sodium hypo
chlorite |
M.T.per annum |
-- |
23100 |
16474 |
GENERAL
INFORMATION
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No. of Employees : |
About 800 |
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Bankers : |
Ř Punjab National
Bank Ř State Bank of Hyderabad |
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Facilities : |
SECURED 1. WORKING CAPITAL – BANKS i) Rs. 25.060
Millions (previous year Rs. 65.433 Millions) working capital demand loans are
secured by hypothecation of stocks/stores, book debts/receivables and second charge
on fixed assets. (Due within a year Rs. 25.060 Millions; previous year Rs.
65.433 Millions). ii) Funded
interest term loans amounting to Rs. Nil (previous year Rs. 12.920 Millions)
are secured by first pari-passu charge on the current assets i.e. book debts
and inventories. (Due within a year Rs. Nil; previous year Rs. Nil). The working
capital facilities will be further secured by personal guarantee of Chairman
and Managing Director. All existing
charges on the assets of Mawana Sugars Limited held by the working capital
providers of the Company shall be vacated. 2. TERM LOANS - FINANCIAL INSTITUTIONS /
BANKS i) Term loan
amounting to Rs. Nil from a Bank (previous year Rs. 30.513 Millions) apportioned
to the Company pursuant to the Scheme were secured / to be secured by way of
first parf-passu charge on the fixed assets and second charge on current
assets of the Company (Due within a year Rs. Nil ; previous year Rs. 2.774
Millions). ii) Funded
interest term loan amounting to Rs. Nil (previous year Rs. 28.935 Millions)
from a bank which were secured/to be secured by first pari-passu charge on
fixed assets and second charge on the current assets of the Company. (Due
within a year Rs. Nil; previous year Rs. Nil). jii) Term loans
amounting to Rs. Nil from financial institutions (previous year Rs. 115.956
Millions) apportioned to the Company pursuant to the Scheme are secured/to be
secured by way of first pari-passu charge on the fixed assets and second
charge on current assets of the Company (Due within a year Rs. Nil; previous
year Rs. 10.542 Millions). iv) Funded
interest term loans amounting to Rs. Nil (previous year Rs. 108.217 Millions)
from financial institutions are secured/ to be secured by first pari-passu
charge on fixed assets and second charge on the current assetsr of the
Company. (Due within a year Rs. Nil; previous year Rs Nil). On repayment of
loans at (i) to (iv) above the personal guarantee of Chairman and Managing
Director has been released by all lenders except one. The Company's
registered trade marks are yet to be released. All existing
charges on assets of Mawana Sugars Limited held by lenders of the Company
shall be vacated. The existing
charges on the assets of the Company created in favour of lenders on the
loans / debentures outstanding prior to the Scheme shall be vacated. |
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Banking Relations
: |
Satisfactory |
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Auditors : |
A.F. Ferguson
and Company Chartered
Accountants Scindla House, New Delhi - 110001 |
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Associates: |
v
Daikin Shriram
Airconditioning Private Limited v
Siel Tizit Limited v
Hongo India Limited v
Honda Siel Cars India
Limited v
Honda Siel Power Products
Limited v Sietal Limited |
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|
|
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Subsidiaries: |
v
SFSL Investments Limited v
Siel Financial Services
Limited v
Transiel India Limited v
The Jay Engineering Works
Limited v
Siel Industrial Estate
Limited v
Siel Sugar Limited v
Shivajimarg Properties
Limited v
Covrad Heat Transfer
Limited, U.K. v
Siel Aircorn Limited v
Siel South Africa (Pty)
Limited, South Africa v Usha International Limited v Siel Edible Oils Limited |
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|
|
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Joint Venture |
v
Ceratizit India Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7,00,00,000 |
Equity shares |
Rs.10 each |
Rs. 700.000 Millions |
|
5,00,000 |
13.5% Redeemable
cumulative preference Shares |
Rs. 100 each |
Rs. 50.000 Millions |
|
25,00,000 |
0.01% Redeemable
cumulative preference Shares |
Rs. 100 each |
Rs. 250.000 Millions |
|
|
TOTAL |
|
Rs. 1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,03,15,302 |
Equity shares |
Rs.10 each |
Rs. 103.153 Millions |
|
80,00,000 |
Equity shares fully paid- up |
Rs. 10 each |
Rs. 80.000 Millions |
|
|
TOTAL |
|
Rs. 183.153
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 (12 months) |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
183.153 |
242.870 |
191.780 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
1697.133 |
1656.107 |
1671.678 |
|
|
4] (Accumulated
Losses) |
0.000 |
(342.806) |
(353.231) |
|
NETWORTH
|
1880.286 |
1556.171 |
1510.227 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
25.060 |
361.974 |
380.305 |
|
|
2] Unsecured
Loans |
14.083 |
147.345 |
191.664 |
|
TOTAL BORROWING
|
39.143 |
509.319 |
571.969 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
1919.429 |
2065.490 |
2082.196 |
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
1448.288 |
1548.918 |
1655.460 |
|
Capital work-in-progress
|
12.568 |
9.504 |
5.692 |
|
|
|
|
|
|
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INVESTMENT
|
202.969 |
172.514 |
172.514 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
71.560
|
48.356
|
40.444 |
|
|
Sundry Debtors
|
95.464
|
71.946
|
72.195 |
|
|
Cash & Bank Balances
|
107.482
|
138.051
|
94.447 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
354.904
|
439.553
|
484.479 |
Total Current Assets
|
629.410
|
697.906
|
691.565 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
313.788
|
334.005
|
420.648 |
|
|
Provisions
|
60.018
|
31.514
|
30.846 |
Total Current Liabilities
|
373.806
|
365.519
|
451.494 |
|
Net Current Assets
|
255.604
|
332.387
|
240.071 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
2.167 |
8.459 |
|
|
|
|
|
|
|
TOTAL
|
1919.429 |
2065.490 |
2082.196 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
2140.970 |
|
1643.837 |
|
|
Other Income |
58.170 |
23.927 |
|
|
|
Total Income |
2199.140 |
1985.762 |
1643.837 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
434.747 |
10.425 |
(375.187) |
|
|
Provision for Taxation |
29.716 |
0.000 |
-- |
|
|
Profit/(Loss) After Tax |
405.031 |
10.425 |
(375.187) |
|
|
|
|
|
|
|
|
Total Earnings |
93.233 |
66.675 |
126.399 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
0.000 |
|
42.049 |
|
|
Stores & Spares |
79.427 |
65.545 |
|
|
Total Imports |
79.427 |
65.545 |
42.049 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
2037.664 |
|
|
|
|
Interest |
11.828 |
31.909 |
|
|
|
Depreciation & Amortization |
114.549 |
114.908 |
2019.024 |
|
|
Other Expenditure |
2.167 |
6.292 |
|
|
Total
Expenditure |
2166.208 |
1975.337 |
2019.024 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 (1st
Qtr.) |
30.09.2006 (2nd
Qtr.) |
31.12.2006 (3rd
Qtr.) |
|
Sales Turnover |
416.900 |
402.200 |
413.600 |
|
Other Income |
5.900 |
2.500 |
3.700 |
|
Total Income |
422.800 |
404.700 |
417.300 |
|
Total Expenditure |
390.300 |
379.400 |
391.700 |
|
Operating Profit |
32.500 |
25.300 |
25.600 |
|
Interest |
0.400 |
0.300 |
0.200 |
|
Gross Profit |
32.100 |
25.000 |
25.400 |
|
Depreciation |
28.400 |
28.300 |
28.600 |
|
Tax |
0.600 |
0.300 |
(0.200) |
|
Reported PAT |
3.100 |
(3.600) |
(3.000) |
200606 Quarter 1
Notes:
EPS is Basic and Diluted 1. The above results have been taken on record
by the Board of Directors in its meeting held on 28.07.2006. 2. The above
results should be read together with the observations of the Auditors in their
Report to the accounts for the year ended March 31, 2006. No provision has been
considered in respect of matters covered in Notes 8, 9 and 10 to the accounts
for the year ended March 31, 2006 for the reasons stated , therein. 3.(a) The
provision for current tax represents Minimum Alternate Tax under section 115 JB
of the Income -Tax Act, 1961. (b) As the Company has substantial unabsorbed
depreciation under the Income-Tax Act, 1961 and is unlikely to have taxable
income in the foreseable future, no deferred tax accounting has been done under
Accounting Standard (AS)-22 issued by the Institute of Chartered Accountants of
India. 4. The current quarter figures are not comparable with corresponding
previous quarter, as it does not include edible oils business of Siel Foods
& Fertiliser Industries (SFFI) unit of the Company, which has been
transferred, to Siel Edible Oils Limited. (SEOL), a wholly owned subsidiary, at
the close of business hours as of March 31, 2006. 5. In view of Accounting
Standard (AS) 15 (revised 2005) 'Employee benefits', issued by the institute of
Chartered Accountants of India which is applicable with effect from April 1,
2006, staff cost for the quarter ended June 30, 2006 includes provision for
employee benefit of Rs. 1.600 millions. The corresponding figure for the quarter ended June 30, 2005 has not
been re-casted as the accumulated liability of employee benefits (including
liability for compensated expenses, presently determined on an arithmetical basis) amounting to Rs. 5.500 millions upto March 31, 2006 will be adjusted from revenue reserves' in accordance with the Accounting Standard. 6. During the quarter ended June 30, 2006, the
Company has incurred Rs.138lacs towards final settlement of account with
certain parties. 7. Aggregate of Public shareholding' for the quarter ended
June 30, 2006 has been determined on the basis of revised Clause 40A of the
listing agreement. The corresponding information on 'Aggregate of Public
shareholding' for the quarter ended June 30, 2005 and year ended March 31, 2006
has not been recasted. 8. During the quarter, two investors complaints were
received, which have been attended to. No complaints were pending at the
beginning or at the end of the quarter. 9. Figures for the previous
corresponding period have been regrouped wherever necessary.
200609 Quarter 2
Notes:
1 The above results have been taken on record by the Board of Directors in its meeting held
on October 31, 2006. 2 The above results should be read together with the observations
of the Auditors in their Report to the accounts for the year ended March 31,
2006. No provision has been considered in respect of matters covered in
Notes8,9and10 to the accounts for the year ended March31,2006 for the reasons
stated there in. 3 The provision for deferred tax assets/liabilities (net)
shall be determined/ and adjusted at the year end. 4 The current quarter and
six months figures are not comparable with the corresponding previous quarter
and six months, as it does not include edible oils business of Siel Foods &
Fertilizer Industries (SFFI) unit of the Company, which has been transferred to
Siel Edible Oils Limited. (SEOL), a wholly owned subsidiary, at the close of
business hours as of March 31, 2006. 5 Other income for the quarter and six
months ended 30.09.2005 includes the surplus arising on the sale of shares of
Shivajimarg Properties Limited (SPL) after settlement of dues of various
lenders as per the terms of the
Scheme of Arrangement. 6 During the six months ended September 30, 2006, the
Company has incurred Rs.1381acs towards final settlement of account with
certain parties. 7 Aggregate of Public Shareholding for the quarter ended September
30, 2006 has been determined on the basis of revised clause40Aof tthe listing
agreement. The corresponding information on Aggregate of Public
Shareholding'
for the quarter and half year ended September 30, 2005 and year ended March 31,
2006 has not been re casted. 8 During
the quarter, two investors complaints were received, which have been attended
to. No complaints were pending at the beginning or at the end of the quarter. 9
Figures for the previous corresponding period have been regrouped wherever
necessary.
200612 Quarter 3
NOTES:
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (7.20)
million Consumption of Raw Materials Rs 59.60 million Staff Cost Rs 23.20
million Power & Fuel Rs 238.80 million Stores, Spares and Components Rs
56.60 million Other Expenditure Rs 20.70 million Tax Includes Current Tax Rs
(0.40) million Fringe Benefit Tax Rs 0.20 million EPS is Basic and Diluted
Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 39 Complaints disposed off during the quarter 39 Complaints
unresolved at the end of the quarter Nil 1. The above results have been taken
on record by the Board of Directors in its meeting held on January 25, 2007. 2.
The above results should be read together with the observations of the Auditors
in their Report to the accounts for the year ended March 31, 2006. No provision
has been considered in respect of matters covered in Notes 8, 9 and 10 to the
accounts for the year ended March 31, 2006 for the reasons stated therein. 3.
The provision for deferred tax assets/liabilities (net) shall determined and
adjusted at the year end. 4. The current quarter and nine months figures ended
December 31, 2006 are not comparable with the corresponding previous quarter
and nine months figures ended December 31, 2005, as they do not include Edible
Oils business of Siel Foods & Fertilizer industries (SFFI) unit of the
Company, which has been transferred to Siel Edible Oils Limited (SEOL),a wholly
owned subsidiary, at the close of the business hours as of March 31, 2006. 5.
During the quarter ended December 31, 2006 the Company has made an investment
of Rs 25.00 million in the equity shares of Siel Industrial Eastate Limited, a
100% subsidiary of the Company. 6. In the meeting held on January 11,2007 the
Board of Directors have approved the amalgamation of Mawana Sugars Limited with
the Company. 7. Aggregate of Public Shareholding' for the quarter ended
December 31, 2006 has been determined on the basis of revised clause 40 A of
the listing agreement. The corresponding information on Aggregate of Public
Shareholding for the quarter and half year ended December 31, 2005 and year
ended March 31, 2006 has not been recasted. 8. Figures for the previous
corresponding period have been regrouped wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.16 |
0.35 |
1.65 |
|
Long Term Debt-Equity Ratio |
0.10 |
0.21 |
1.19 |
|
Current Ratio |
1.38 |
1.12 |
1.24 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.06 |
0.96 |
0.56 |
|
Inventory |
40.34 |
49.64 |
1.95 |
|
Debtors |
28.89 |
30.59 |
11.32 |
|
Interest Cover Ratio |
(1.66) |
1.33 |
-9.01 |
|
Operating Profit Margin(%) |
3.93 |
7.13 |
(12.33) |
|
Profit Before Interest And Tax Margin(%) |
(0.81) |
1.92 |
(18.64) |
|
Cash Profit Margin(%) |
3.37 |
5.69 |
(14.40) |
|
Adjusted Net Profit Margin(%) |
(1.37) |
0.47 |
(20.71) |
|
Return On Capital Employed(%) |
(0.90) |
1.89 |
0.00 |
|
Return On Net Worth(%) |
(1.78) |
0.64 |
0.00 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 28.50 |
|
Low |
Rs. 27.60 |
LOCAL AGENCY
FURTHER INFORMATION
EFFECTUATION OF
THE SCHEME OF ARRANGEMENT
The Scheme of Arrangement (SOA) of the Company as approved by Hon'ble High
Court of Delhi has been fully implemented. The shares of Shivajimarg Properties Limited, a wholly owned subsidiary, which held 24.88 acres of
freehold land at Najafgarh Road were sold
during the year and proceed thereof applied as per the SOA. As a result thereof, the Company is debt free as on 31.3.2006.
EDIBLE OIL
BUSINESS
The undertaking of Siel Foods & Fertilizer Industries (SFFI), a unit of the Company engaged in the business of Edible Oils has been sold to Siel Edible Oils Limited
(SEOL), a wholly owned subsidiary w.e.f.
closure of the business hours on 31.3.2006 for a consideration of Rs.30.800 millions paid by SEOL by issue of its 30,80,000 fully paid equity shares of
Rs.10/- each at par.
CHLOR ALKALI
BUSINESS
The Board of Directors have appointed M/s J.M. Morgan Stanley for conducting a study on restructuring of
business of the Company including sale of
Chlor Alkali business by the Company. The report of M/s J.M. Morgan Stanley is awaited and any further action would be considered after receipt of their
report.
INVESTMENT IN JEW
During the year under review, the Company has decided to explore the option to convert the outstanding loan of Rs.77.700 millions advanced to M/s Jay Engineering Works Limited pursuant to BIFR approved Rehabilitation Scheme into
77,70,000 fully paid equity shares of Rs. 10/- each at par.
OPERATIONS
A review of operations of the major businesses of the Company, for the year ended March 31, 2006 is as
under (some discussion is also presented
in the Management Discussion and Analysis report):
Chlor-Alkali During the year
under review, cell liquor production was 75107 MT compared to 64854 MT in the previous year.
PSERC had increased the power tariff for the financial year 2005- 06 by about 10% effective from 1.4.2005. A
further increase of about 8% in the
effective power rate is proposed for the financial year 2006-07.
During the year Chlor-Alkali industry witnessed a production growth of 7.7% on account of improved demand in the
user industries.
The industry added 0.18 million MT capacity, which resulted in surplus availability of material leading to
volatility in the Caustic Soda and Chlorine
prices and weak market sentiments during the year. The international prices of Caustic Soda and Chlorine were stable, except in USA, which witnessed spurt
in Caustic Soda prices for a short
period during 2nd quarter of 2005-06.
Edible Oils
The Edible Oils operations were continuing on a third party manufacturing basis till 31.3.2006, the date
of sale of undertaking of
SFFI to SEOL. During the year, company restarted marketing of Vanaspati in small packs after 5 years which found good acceptance from consumers.
JOINT VENTURES
CERATIZIT INDIA PRIVATE LIMITED
(Formerly Siel TIZIT LIMITED (STL).
During the financial year ended February 2006, the Company has earned a net profit of Rs. 53.875 Millions, as against Rs. 15.819 Millions during the previous year. The sales
turnover of the Company increased by about
35% over the previous year to Rs. 318.936 Millions.
SUBSIDIARY
COMPANIES
During the year under review, Siel Edible Oils. Limited. Was incorporated as a wholly owned subsidiary of the Company. On completion of sale of shares of Shivajimarg Properties Limited. (SPL), SPL ceased to be subsidiary of the Company.
Segment
Performance
The global production of Caustic Soda is around 45 million MT per annum, out of which India contributes
about 4%. In India,
presently, there are a total of 33 Caustic Soda plants in operation. Seeing an improvement in demand and profitability, the Indian Chlor-Alkali
industry added 0.18 million MT per
annum additional capacities in the year 2005-06. During the year, the domestic production of caustic soda was 1.95 million MT
representing 86% utilization of the
installed capacity of 2.26 million MT.
The industry recorded a production growth of 7.7%, while capacity growth was 8.7% during the same
year.
Despite increase in capacity, the improved demand has led to a reasonable level of capacity
utilization.
Outlook
The end-user segments of Caustic Soda viz. Aluminum, Paper, Textile and Soaps are poised for
positive growths with major
expansions coming up in the Aluminum and paper segments.
With general upswing in the economy and GDP growth of 7.5 - 8% projected in the next year, the
Chlor-Alkali industry is expected to
perform reasonably well. The Caustic Soda prices during the next year are expected to remain firm, while Chlorine may come under pressure, due
to surplus availability and
volatility in the demand in the end-user segments. Additional capacity of 0.30 Million MT is further getting added during the next year which
will increase the installed capacity
to 2.55 Million MT.
Power Scenario
Power is a major cost input accounting for almost 65% of the total product cost. The Company is
dependent on power supply from Punjab
State Electricity Board (PSEB). The frequent hikes in power tariff have always remained a cause of concern. Punjab State Electricity
Regulatory Commission (PSERC), vide its
order dated 25th January 2006, has fixed the transmission and wheeling charges. Total wheeling charges for power sourced from supplier
other than PSEB comes to around Rs
0.90 per unit. Further, the power trading companies, e.g. Power Trading Corporation, are now willing to supply power at the boundary of the
Punjab at Rs. 3.50 per unit. Thus the
landed cost of power will be around Rs. 4.40 per unit which is costlier than PSEB power.
Therefore, under the present scenario the Company is not considering wheeling of power from other
states.
|
Zone |
Actual 2005-06 |
Projections (2006-07) |
Projections (2007-08) |
||||||
|
|
Installed |
Production |
Capacity |
Installed |
Production |
Capacity |
Installed |
Production |
Capacity |
|
|
Capacity |
(MT/million) |
Utilization |
Capacity |
(MT/million) |
Utilization |
Capacity |
(MT/million) |
Utilization |
|
|
(MT/million) |
|
|
(MT/million) |
|
|
(MT/million) |
|
|
|
North |
0.339 |
0.266 |
79% |
0.339 |
0.280 |
82% |
0.339 |
0.294 |
87% |
|
West |
1.095 |
0.973 |
89% |
1.021 |
1.021 |
77% |
1.324 |
1.072 |
81% |
|
East |
0.240 |
0.201 |
84% |
0.211 |
0.211 |
69% |
0.357 |
0.221 |
62% |
|
South |
0.583 |
0.512 |
88% |
0.537 |
0.537 |
92% |
0.631 |
0.564 |
89% |
|
Total |
2.257 |
1.951 |
86% |
2.049 |
2.049 |
|
2.651 |
2.152 |
81% |
EDIBLE OILS
DIVISION
Re-organization of Business
To bring greater focus to this business, the Company had decided to vest the Edible Oil business into
a wholly owned subsidiary.
Accordingly, the Edible Oil business was vested into Siel Edible Oils Limited w.e.f. the closure of the business hours on 31.3.2006.
Industry Structure and Development
Indigenous production of edible oils has not been able to keep pace with the increase in demand.
Hence, India continues to
depend heavily on imported oils. Accordingly, Indian Vanaspati and Edible oil business remains exposed to international market trends and
Government policies regarding
import.
Opportunities and Threats
At company level re-introduction of Vanaspati in small packs presents a good opportunity to extend
distribution and increased volumes
of entire basket of products.
In Vanaspati industry price competition has intensified due to import of Vanaspati from some neighboring
countries at zero rate of
custom duty.
Consumption pattern in urban markets has significantly shifted to refined oils.
Product Performance
During the year, company restarted marketing of Vanaspati in small packs, after a gap of 5 years. The
new product launched under the
brand name PANGHAT SPECIAL, has
been
launched in 8 states during the year and is finding acceptance among the consumers.
Outlook
Vanaspati and Refined Oils, being items of essential consumption, will always be in demand from
household as well as
institutional segments. Robust economic growth in the country augurs well for the demand of edible oil products.
While consumption pattern in urban markets has shifted to refined oils, semi-urban and rural markets
consume a mix of Vanaspati,
raw/filtered oils and less expensive refined oils.
The demand for Vanaspati and Refined Oils will continue to grow with increase in population and income
levels.
Panghat Special Vanaspati will become a prime mover for the growth of business in the coming years.
BRANDED CONSUMER PACK SUGAR SALES
Siel Edible Oils Limited, has also been selling consumer packs" of 'MAWANA' branded sugar. The volume of
this business is expected to grow
significantly on account of enhanced distribution, new product offerings and with the introduction of the highest grade refined sugar from the
next years.
FIXED
ASSESTS
v Land
v Buildings
v Plant and machinery
v Furniture and
fixtures
v Vehicles
v Trademark
STOCK
AND SALES
v Vanaspati/Refined
oil
v Sugar
v Caustic soda
v Caustic flakes
v Chlorine (dry and
liquid)
v Hydrochloric acid
v Hydrogen
v Stable bleaching
powder
v Soap
v Sodium hypochlorite
v Services
v Others
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 records 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.42.74 |
|
UK Pound |
1 |
Rs.84.90 |
|
Euro |
1 |
Rs.57.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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
EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|