MIRA
INFORM REPORT
|
Report Date : |
23.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
KEDIA VANASPATI LIMITED |
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Registered Office : |
Plot No.48, Sri Krupa Market, Mababooh Mansion, Malakpet, Hyderabad –
500036, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.07.1971 |
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Com. Reg. No.: |
01-1423 |
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CIN No.: [Company
Identification No.] |
L15140AP1971PLC001423 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDK00022B |
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Legal Form : |
A Public Limited
Liability Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Refined Oil, Crude Oil and Vanaspati |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under server pressure. It has some accumulated
losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions with slight caution initially. |
LOCATIONS
|
Registered Office : |
Plot No.48, Sri Krupa Market, Mababooh Mansion, Malakpet, Hyderabad –
500036, Andhra Pradesh |
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Tel. No.: |
91-40-25444262/56305033 |
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Fax No.: |
91-40-24546353 |
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Factory 1 : |
Timmapur Village, Kothur (M) District - Mahaboobnagar. PIN: 509 325. |
DIRECTORS
|
Name : |
Dr. Mahesh Kumar Kedia |
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Designation : |
Director |
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Name : |
Mr. Umesh Kedia |
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Designation : |
Managing Director |
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Name : |
Mr. Ravi Agarwal |
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Designation : |
Executive Director |
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Name : |
Mr. Pankaj Kedia |
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Designation : |
Director |
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Name : |
Mr. Khemchand Bajaj |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Refined Oil, Crude Oil and Vanaspati |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Refined Oils |
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|
106 M.TONNES/DAY |
-- |
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Vanaspati |
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56 M.TONNES/DAY |
-- |
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Crushing |
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30 M.TONNES/DAY |
-- |
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Vanaspati |
Kgs. |
|
-- |
23,94,000 |
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Refined Oils |
Kgs. |
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-- |
87,77,206 |
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Acid Oil |
Kgs. |
|
-- |
6,21,180 |
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Soap Stock |
Kgs. |
|
-- |
14,93,579 |
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Fatty Acid |
Kgs. |
|
-- |
3,63,962 |
GENERAL
INFORMATION
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Bankers : |
State Bank of Hyderabad, Mahaboobgunj Branch, Hyderabad – 500012,
Andhra Pradesh |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
M/s. V S Rao & Company Chartered Accountant |
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Address : |
6-3-609/136, Anandnagar Colony, Hyderabad – 500036 |
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Memberships : |
Nil |
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Collaborators : |
Nil |
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Associates/Subsidiaries : |
Kedia Overseas Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 60.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29,48,500 |
Equity Shares |
Rs. 10/- Each |
Rs. 29.485 Millions |
|
Less |
Others |
|
Rs. 0.063 Millions |
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Total |
|
Rs. 29.421 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
29.421 |
29.421 |
29.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2.014 |
2.014 |
19.900 |
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4] (Accumulated Losses) |
(44.952) |
(5.635) |
0.000 |
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NETWORTH |
(13.517) |
25.800 |
49.300 |
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LOAN FUNDS |
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1] Secured Loans |
27.935 |
44.882 |
53.400 |
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2] Unsecured Loans |
34.425 |
35.888 |
0.000 |
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TOTAL BORROWING |
62.360 |
80.770 |
53.400 |
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DEFERRED TAX LIABILITIES |
22.763 |
7.566 |
0.000 |
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TOTAL |
71.606 |
114.136 |
102.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
97.258 |
107.582 |
112.800 |
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Capital work-in-progress |
0.000 |
0.000 |
2.100 |
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INVESTMENT |
2.000 |
2.000 |
2.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
79.999
|
145.780 |
366.600 |
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Sundry Debtors |
48.723
|
49.529 |
75.500 |
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Cash & Bank Balances |
14.563
|
21.014 |
14.800 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
46.540
|
49.048 |
50.700 |
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Total
Current Assets |
189.825
|
265.371 |
507.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
209.640
|
252.970 |
514.100 |
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Provisions |
7.837
|
7.847 |
7.700 |
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Total
Current Liabilities |
217.477
|
260.817 |
521.800 |
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Net Current Assets |
(27.652)
|
4.554 |
(14.200) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
71.606 |
114.136 |
102.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
653.178 |
856.924 |
904.800 |
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Other Income |
16.544 |
5.663 |
10.000 |
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Total Income |
669.722 |
862.587 |
914.800 |
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Profit/(Loss) Before Tax |
(15.095) |
(29.124) |
(6.300) |
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Provision for Taxation |
24.124 |
5.686 |
2.700 |
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Profit/(Loss) After Tax |
(39.219) |
(23.438) |
(3.600) |
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Imports : |
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Raw Materials |
0.000 |
NA |
NA |
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Stores & Spares |
0.000 |
NA |
NA |
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Capital Goods |
0.000 |
NA |
NA |
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Others |
73.589 |
NA |
NA |
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Total Imports |
73.589 |
NA |
NA |
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Expenditures : |
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Administrative Expenses |
58.047 |
228.084 |
30.400 |
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Raw Material Consumed |
572.460 |
594.616 |
874.200 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
3.200 |
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Insurance Expenses |
0.000 |
0.000 |
15.200 |
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Power & Fuel |
0.000 |
0.000 |
15.000 |
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Other Expenditure |
54.309 |
69.010 |
7.100 |
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Total Expenditure |
684.816 |
891.710 |
951.300 |
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QUARTERLY
|
PARTICULARS |
30.06.2006 (1ST
Quarter) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd
Quarter) |
|
Sales Turnover |
138.000 |
160.000 |
124.800 |
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Other Income |
0.200 |
0.100 |
0.300 |
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Total Income |
138.200 |
160.100 |
125.100 |
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Total Expenditure |
137.700 |
168.700 |
116.600 |
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Operating Profit |
0.500 |
(8.600) |
8.500 |
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Interest |
1.000 |
0.900 |
1.000 |
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Gross Profit |
(0.500) |
(9.500) |
7.500 |
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Depreciation |
2.200 |
2.200 |
2.100 |
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Tax |
0.000 |
0.000 |
0.000 |
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Reported PAT |
(2.700) |
(11.700) |
5.400 |
200606
Quarter 1 - Net Sales
Includes Income from Operations Rs 130.170 million Consignment Dispatches Rs 7.791
million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 0.236
million Consumption of Raw Materials & Trade Purchase Rs 127.221 million
Staff Cost Rs 9.685 million Other Expenditure Rs 0.672 million EPS is Basic
& Diluted 1. The above Un-audited results were taken on record by the Board
of Directors at its meeting held on July 28, 2006. 2. Consignment Dispatches
will be treated as sales on receipt of Sale Patties. 3. Provision for taxation
(Including deferred tax liability) if any will be made at the end of the year.
200609
Quarter 2 - Net Sales
Includes Income from Operations Rs 153.084 million Consignment Dispatches Rs
6.871 million Expenditure Includes (Increase)/Decrease in stock in Trade Rs
8.486 million Consumption of Raw Materials, Trade & Purchases Rs 150.785
million Other expenditure Rs 8.693 million Staff Cost Rs 0.705 million Tax
indicate Provision for Fringe Benefit Tax EPS is Basic & Diluted 1. The
above Un-audited results were taken on record by the Board of Directors at its
meeting held on October 30, 2006. 2. Consignment Dispatches will be treated as
sales on receipt of Sale Patties. 3. Provision for taxation (Including deferred
tax liability) if any will be made at the end of the year.
200612
Quarter 3 - Net Sales Includes
Income from Operations Rs 116.802 million Consignment Dispatches Rs 7.992
million Expenditure Includes (Increase)/Decrease in stock in Trade Rs
(1.177)million Consumption of Raw Materials, Trade & Purchases Rs 108.725
million Other expenditure Rs 8.321 million Staff Cost Rs 0.817 million Tax
indicate Provision for Fringe Benefit Tax EPS is Basic & Diluted 1. The
above Un-audited results were taken on record by the Board of Directors at its
meeting held on January 29, 2007. 2. Consignment Dispatches will be treated as
sales on receipt of Sale Patties. 3. Provision for taxation (Including deferred
tax liability) if any will be made at the end of the year.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
11.63 |
1.79 |
1.18 |
|
Long Term Debt-Equity Ratio |
2.46 |
0.57 |
0.64 |
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Current Ratio |
0.74 |
0.88 |
0.93 |
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TURNOVER RATIOS |
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Fixed Assets |
3.75 |
4.88 |
5.20 |
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Inventory |
5.79 |
3.34 |
2.43 |
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Debtors |
13.30 |
13.71 |
16.72 |
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Interest Cover Ratio |
(1.95) |
(3.91) |
(0.29) |
|
Operating Profit Margin(%) |
(1.06) |
(2.49) |
0.81 |
|
Profit Before Interest And Tax Margin(%) |
(2.42) |
(3.51) |
(0.15) |
|
Cash Profit Margin(%) |
(4.64) |
(1.70) |
0.56 |
|
Adjusted Net Profit Margin(%) |
(6.00) |
(2.73) |
(0.40) |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
(1.26) |
|
Return On Net Worth(%) |
0.00 |
0.00 |
(7.05) |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.3.15/- |
|
Low |
Rs.3.15/- |
LOCAL AGENCY FURTHER
INFORMATION
OPERATIONS
The turnover for the year decreased from Rs. 856.925 Millions to
Rs.653.178 Millions as compared from the previous year. The operations for the
year resulted in a loss of Rs. 39.220 Millions (previous year loss of Rs. 23.438
Millions). The reduction in the turnover and increase in the losses is mainly
due to the adverse market conditions prevailing.
Due to the reduced turnover and increase in losses the directors of the
company have decided not to delcare any dividend for the financial year under
review.
Fixed Assets
v Land
v Building
v Plant & Machinery
v Furniture & Fixture
v Vehicle
v Office Equipment
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.44.28 |
|
UK Pound |
1 |
Rs.86.64 |
|
Euro |
1 |
Rs.58.10 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--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 |
|
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|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
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 |
|
PRIVATE
& CONFIDENTIAL : This information is provided to you at
your request, you having employed MIPL for such purpose. You will use the
information as aid only in determining the propriety of giving credit and
generally as an aid to your business and for no other purpose. You will hold
the information in strict confidence, and shall not reveal it or make it known
to the subject persons, firms or corporations or to any other. MIPL does not
warrant the correctness of the information as you hold it free of any liability
whatsoever. You will be liable to and indemnify MIPL for any loss, damage or
expense, occasioned by your breach or non observance of any one, or more of
these conditions