MIRA
INFORM REPORT
|
Report Date : |
07.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
SAI RAYALASEEMA PAPER MILLS LIMITED |
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Formerly Known As : |
SREE RAYALASEEMA PAPER MILLS LIMITED |
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Registered Office : |
8-3-960/11, |
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Country : |
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Financials (as on) : |
31.03.2008 (Projected) |
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Date of Incorporation : |
21.08.1974 |
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Com. Reg. No.: |
01-1772 |
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CIN No.: [Company
Identification No.] |
U99999AP1974PLC001772 |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Paper including Printing and Writing Paper. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 21000000 |
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Status : |
Poor |
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Payment Behaviour : |
Slow |
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Litigation : |
-- |
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Comments : |
Subject is an old and established company having poor track. Company’s
profitability is under severe pressure. It has huge accumulated losses.
Payments are reported as slow and delayed. The company can be considered for any business dealings against fully
safe and secured trade terms and conditions. |
LOCATIONS
|
Registered/ Corporate Office : |
8-3-960/11, |
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Tel. No.: |
91-40 – 23757516 |
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Mobile No.: |
91-40 – 23756942 & 23758012 |
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Fax No.: |
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Factory 1 : |
Gondiparla, |
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Tel. No.: |
91 - 8518 - 280311 to 13 |
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Fax No.: |
91 - 8518 - 280130 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. B V Satya Sai Prasad |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. R Varadrajan |
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Designation : |
Director |
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Name : |
Mr. T Shanmugam |
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Designation : |
Director |
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Name : |
Mr. Gangasani Kumaraswamy Reddy |
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Designation : |
Independent & Non-Executive Director |
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Address : |
Flat No.5A, Nugget Apartments, |
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Date of Appointment : |
10.11.2005 |
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Name : |
Mr. Abhay Sah |
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Designation : |
Director |
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Date of Birth/Age : |
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Qualification : |
Mr. K S R Murthy |
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Experience : |
Independent & Non-Executive Director |
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Date of Appointment : |
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Name : |
Mr. Kalidindi Raju Ramachandra |
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Designation : |
Independent & Non-Executive Director |
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Address : |
Flat No.103, Zeenath Residency, |
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Date of Appointment : |
10.11.2005 |
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Name : |
Mr. S Yalmandha Reddy |
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Designation : |
Nominee Director APIDCL |
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Address : |
Plot No.15, Narvodaya Colony, Yallareddiguda, Hyderabad-500073 |
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Date of Appointment : |
10.11.2005 |
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Name : |
Mr. P. Vaikunta Rao |
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Designation : |
Whole time Director |
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Name : |
Mrs. B. Vijaya Pavani |
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Designation : |
Non- Executive Director |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Paper including Printing and Writing Paper. |
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Actual
Production |
|
Corrugating Media |
TPA |
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|
21450 |
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Core Board |
TPA |
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|
14300 |
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S |
TPA |
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|
14625 |
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Copier |
TPA |
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|
14625 |
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Cream Wove |
TPA |
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|
-- |
GENERAL INFORMATION
|
Bankers : |
v
Indian Overseas Bank, Post No.4, Chandralok
Complex, M v
Oriental Bank of Commerce, 6-3-865, My Home Jupally,
Greenlands, Ameerpet, Hyderabad-500016, v
IDBI v
ICICI v
UTI v
State Bank of v
Indian Bank v
Corporation Bank v
Syndicate Bank v
Andhra Bank v
The Vysya Bank Limited v
Canara Bank, v
Union Bank of v
Syndicate Bank, v
Bank of Baorda v
UCO Bank v
Dena Bank v
Allahabad Bank v
Bank of |
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|
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Financial Institutions : |
v
GIC v
National Insurance v
New v
United v
Oriental Insurance |
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Banking
Relations : |
-- |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
196000000 |
Equity Shares |
Rs.10/- each |
Rs.1960.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
101023648 |
Equity Shares |
Rs.10/- each |
Rs.1010.236
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2001 |
31.03.2000 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
315.900 |
315.900 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
4953.700 |
4953.600 |
|
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
5269.600 |
5269.500 |
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LOAN FUNDS |
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|
|
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|
1] Secured Loans |
|
541.800 |
541.800 |
|
|
2] Unsecured Loans |
|
237.900 |
235.000 |
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|
TOTAL BORROWING |
|
779.700 |
776.800 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
|
6049.300 |
6046.300 |
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|
|
|
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
6417.800 |
6410.900 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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|
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|
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
72.800 |
73.000 |
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Sundry Debtors |
|
38.000 |
38.000 |
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Cash & Bank Balances |
|
3.300 |
3.300 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
211.300 |
211.300 |
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Total
Current Assets |
|
325.400 |
325.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
1432.200 |
1364.600 |
|
|
Provisions |
|
4.300 |
4.300 |
|
Total
Current Liabilities |
|
1436.500 |
1368.900 |
|
|
Net Current Assets |
|
(1111.100) |
(1043.300) |
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MISCELLANEOUS EXPENSES |
|
742.600 |
678.700 |
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TOTAL |
|
6049.300 |
6046.300 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2001 |
31.03.2000 |
|
Sales Turnover |
|
0.100 |
0.100 |
|
Other Income |
|
0.000 |
0.000 |
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Total Income |
|
0.100 |
0.100 |
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|
|
|
|
|
Profit/(Loss) Before Tax |
|
0.100 |
0.100 |
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Provision for Taxation |
|
0.000 |
0.000 |
|
Profit/(Loss) After Tax |
|
0.100 |
0.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2001 |
31.03.2000 |
|
Debt-Equity Ratio |
|
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
|
0.00 |
0.00 |
|
Current Ratio |
|
0.23 |
0.24 |
|
TURNOVER RATIOS |
|
|
|
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Fixed Assets |
|
0.00 |
0.00 |
|
Inventory |
|
0.00 |
0.00 |
|
Debtors |
|
0.00 |
0.00 |
|
Interest Cover Ratio |
|
0.00 |
0.00 |
|
Operating Profit Margin(%) |
|
100.00 |
100.00 |
|
Profit Before Interest And Tax Margin(%) |
|
100.00 |
100.00 |
|
Cash Profit Margin(%) |
|
100.00 |
100.00 |
|
Adjusted Net Profit Margin(%) |
|
100.00 |
100.00 |
|
Return On Capital Employed(%) |
|
(0.36) |
3.33 |
|
Return On Net Worth(%) |
|
(0.10) |
(0.10) |
PROJECTED BALANCE
SHEET
|
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Liabilities |
|
|
|
|
Equity Share Capital |
1486.500 |
1486.500 |
1486.500 |
|
Preference Share Capital (Old) |
0.000 |
9.000 |
9.000 |
|
Reserves and Surplus |
5368.100 |
5368.100 |
5386.100 |
|
Profit and Loss Account |
825.200 |
174.300 |
(198.600) |
|
Sundry Creditors |
0.000 |
40.000 |
60.000 |
|
|
|
|
|
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Term Loan |
180.000 |
240.000 |
300.000 |
|
Bank Finance for Working Capital |
437.500 |
430.300 |
301.300 |
|
|
|
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Statutory dues : |
|
|
|
|
Electricity |
0.000 |
1.300 |
3.300 |
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Sales Tax |
9.200 |
9.200 |
9.200 |
|
Royalty |
64.300 |
64.300 |
64.300 |
|
Excise Duty – Old |
62.200 |
62.200 |
62.200 |
|
Dues to Workmen |
0.000 |
0.000 |
2.000 |
|
|
|
|
|
|
Dealer’s Deposits |
15.600 |
13.700 |
15.600 |
|
Total
Liabilities |
8448.600 |
7898.900 |
7480.900 |
|
|
|
|
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Assets : |
|
|
|
|
Gross Fixed Assets |
7065.700 |
6865.700 |
6715.700 |
|
Depreciation |
371.300 |
298.200 |
232.200 |
|
Net Fixed Assets |
8694.400 |
6567.5 |
6483.500 |
|
|
|
|
|
|
Investments |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Net Current Assets – New |
563.300 |
573.800 |
401.700 |
|
|
|
|
|
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Net Current Assets – Old |
243.200 |
203.200 |
183.200 |
|
|
|
|
|
|
Receivables |
0.000 |
0.000 |
44.500 |
|
|
|
|
|
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Cash and Bank Balance |
742.000 |
330.600 |
124.200 |
|
|
|
|
|
|
Preliminary Expenses |
183.700 |
223.800 |
243.900 |
|
|
|
|
|
|
Total Assets |
8448.600 |
7898.900 |
7480.900 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for creation or modification of charges
|
Corporation identity number or foreign company registrations number of the company |
U99999AP1974PLC001772 |
|
Name of the company |
SAI RAYALASEEMA PAPER MILLS LIMITED |
|
Address |
8-3-960/11, |
|
This Form is for |
Modification of charge |
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Type of Charges |
Immovable property |
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Particular of the charge holder |
Indian Overseas Bank Chandralok Complex, M |
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Nature or description of the instrument creating charge |
Mortgage memorandum Letter of confirmation |
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Date of the instrument creating charge |
14.12.2006 |
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Amount Secure by the charge |
Rs.606.300 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest : No change in the existing rate of interest Terms of repayment : No change in existing terms of repayment Margin : No change in existing margins Extent and operation of the charge : The charge will operate as first pari passu charge on immovable properties of the company with an intention to secure the repayment to the consortium Bankers (i.e. IOB and OBC) |
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Description of the property charge whether it is a charge on |
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Modification charge Charge identification number of the charge to be modified |
10028129 |
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Date of instrument modifying the charge |
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Particulars of the Property charged |
All that part and parcel of land, buildings, sheds, godowns etc. constructed/ to be constructed in the total extent of land of 123.445 acres situate in various survey numbers, all situated at Gondiparla, Kurnool District, Andhra Pradesh standing in the name of the company. |
|
Particulars of the present modification |
In addition to the existing securities the company has created an equitable mortgage on the immovable properties of the company situated at Gondiparla, Kurnool District Andhra Pradesh, by deposit of title deeds – To secre the credit facilities of Rs.606.300 millions sanctioned by IOB and OBC on pari passu basis. |
Website Details :
Subject is one of the modern integrated paper mills in
Mr. B. V. Sathya Sai Prasad S/o. Shri.B.Lakshminarayana, Chief Managing
Director, Is an astute entrepreneur with a very good track record.
He is a born leader and believes in leading from the front. He has taken over
this company through BIFR and Master-minded a major overhaul and refurbishment.
His teaching background as given him the insight to understand; and
empathize with people. He is a motivator par excellence and derives the optimum
from his team of dedicated professionals.
His administrative skill is an off shoot of his profound knowledge of
corporate laws and legalities. With him in the helm of affairs the company has
progressed leaps and bounds and is now a force to reckon-with in the Paper
Industry.
Products
Subject has Two kinds of paper machines owned from the leading manufacture of
paper machines in the world.
Machines with a capacity of 60,000 tpa of writing and printing paper in
grammage range of 40 to 150. The machines has a drying capacity of 250 tonnes
per day and can easily make 70,000 tpa of Kraft and Liner board in grammage
range of 100-300.
v Cream Wove – Surface size and Non surface size
v Maplitho – Surface sized
v Computer Stationery
v Colour printing paper
v Copier
v News print
v Kraft paper
v Board
Some suitable grades: Copier 70 to 100 gsm, SS Maplitho 60 to 100
gsm CPO and Stationery Paper and Corrugating medium 80 to 150 gsm.
Current Products:
v
The machines are highly flexible and
can produce 44 gsm and 150 gsm on Paper Machine No.1 and 80 gsm to 500 gsm on
Paper Machine NO.2.
v
Creamwove - Writing and Printing paper
ranging from 48 gsm to 120 gsm
v
SS Maplitho - 58
gsm to 120 gsm
v
Eco-Copier - 70
& 80 gsm
v
Near Future Products:
v
120 gsm to 400 gsm high strength
Industrial Kraft
v
180 to 550 gsm Core Board
MANAGEMENT
B.V. Satya Sai Prasad & Associates
(BVSSPA) are major shareholders of the company.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.57 |
|
|
1 |
Rs.80.97 |
|
Euro |
1 |
Rs.55.19 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
-- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
|
18 |
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 |
|