MIRA
INFORM REPORT
|
Report Date : |
24.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
CEPHAM MILK
SPECIALITIES LIMITED |
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Registered Office : |
Village Bhagwas, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.12.1996 |
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Com. Reg. No.: |
19162 |
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CIN No.: [Company
Identification No.] |
L15203PB1996PLC019162 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLC11037F |
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PAN No.: [Permanent
Account No.] |
AAACCC8569M |
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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
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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 : |
USD 960000 |
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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, |
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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 : |
SCO 11A, First Floor, Sector 7C, Madhya Marg, |
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Branches : |
M-134, Connought Circus, |
DIRECTORS
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Name : |
Mr. J.S. Mann, (PSIDC Nominee) |
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Designation : |
Chairman |
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Address : |
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Date of Birth/Age : |
Mr. Dewan C. Pruthi |
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Qualification : |
Vice Chairman |
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Experience : |
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Date of Appointment : |
Mr. S. L. Bansal (PSIDC Nominee) |
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Director |
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Name : |
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Designation : |
Mr. S. K. Ahuja (PSIDC Nominee) |
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Address : |
Director |
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Date of Birth/Age : |
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Qualification : |
Mr. Puneet Pruthi |
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Experience : |
Director |
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Date of Appointment : |
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Mr. Samir Pruthi |
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Name : |
Director |
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Designation : |
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Address : |
Mr. B. M. Mahajan |
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Date of Birth/Age : |
Director |
KEY EXECUTIVES
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Name : |
Mr. O. K. Aggarwal |
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Designation : |
Vice President (Finance) / C.F.O. |
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Name : |
Mr. Ravinder Kumar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2006
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding
of Promoter and Promoter Group |
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Individuals/ Hindu Undivided
Family |
2 |
- |
|
Bodies Corporate |
2640047 |
21.11
% |
|
Financial Institutions/ Bank |
3525000 |
28.18
% |
|
Any Other Persons acting in
concert (specify) |
134021 |
1.07
% |
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Foreign |
|
|
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Bodies Corporate |
245000 |
1.96
% |
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Public
Shareholding |
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|
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Institutions |
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Mutual Funds/ UTI |
500000 |
4.00
% |
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Financial Institutions/ Banks |
8100 |
0.07
% |
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Non-Institutions |
|
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Bodies Corporate |
873400 |
6.98
% |
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Individuals- |
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Individual Shareholders
holding normal share capital up to Rs. 0.100 Millions |
1027334 |
8.21 % |
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Individual Shareholders holding nominal share capital in
express of Rs. 0.100 Millions |
2695250 |
21.55 % |
|
Any Other (NRI/ OCB) |
858900 |
6.87
% |
|
Total |
12507054 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer,
Importer, Exporters and Traders of Casein, Cheese, Lactose, Ghee, Dairy
Whitner, etc. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Casein |
M.T. |
4017 |
1787.01 |
|
Lactose/DG |
M.T. |
4800 |
1767.75 |
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Ghee |
M.T. |
9750 |
1119.14 |
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W.P.C |
M.T. |
1530 |
611.29 |
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S.M.P. |
M.T. |
0 |
58.33 |
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Butter milk |
M.T. |
- |
20.62 |
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Herbal |
M.T. |
10 |
3.71 |
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Whey Mineral |
M.T. |
360 |
24.60 |
GENERAL INFORMATION
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No. of Employees : |
213 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
J P Chawla & Company Chartered
Accountants |
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Address : |
43, Darya Ganj |
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Group Companies : |
Ř
Rajasthan
Antibiotics Limited Ř
Cabon
India Limited |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs.10/- Each |
Rs. 250.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12507054 |
Equity Shares |
Rs.10/- Each |
Rs. 125.071
Millions |
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|
Less : Allotment Money in arrears |
|
Rs. 0.104
Millions |
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Total |
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Rs. 124.967 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
|
124.967 |
124.967 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
115.296 |
115.296 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
240.263 |
240.263 |
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LOAN FUNDS |
|
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1] Secured Loans |
|
1267.662 |
1095.610 |
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2] Unsecured Loans |
|
5.028 |
5.028 |
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TOTAL BORROWING |
|
1272.690 |
1100.638 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
|
1512.953 |
1340.901 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
251.311 |
257.113 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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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 |
|
54.731 |
53.828 |
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Sundry Debtors |
|
71.004 |
64.213 |
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Cash & Bank Balances |
|
4.759 |
2.712 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
77.258 |
64.557 |
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Total
Current Assets |
|
207.752 |
185.310 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
|
151.885 |
129.506 |
|
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Provisions |
|
2.591 |
0.000 |
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Total
Current Liabilities |
|
154.476 |
129.506 |
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Net Current Assets |
|
53.276 |
55.804 |
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MISCELLANEOUS EXPENSES |
|
1208.366 |
1027.984 |
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TOTAL |
|
1512.953 |
1340.901 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
|
769.021 |
1157.353 |
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Other Income |
|
1.562 |
0.335 |
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Total Income |
|
770.583 |
1157.688 |
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Profit/(Loss) Before Tax |
|
[179.457] |
[118.970] |
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Provision for Taxation |
|
-- |
-– |
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|
Profit/(Loss) After Tax |
|
[179.457] |
[118.970] |
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Earnings in Foreign Currency : |
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Export Earnings |
|
36.130 |
3.719 |
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Total Earnings |
|
36.130 |
3.719 |
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Imports : |
|
|
|
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|
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Raw Materials |
|
522.579 |
813.949 |
|
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Stores & Spares |
|
11.626 |
24.786 |
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Total Imports |
|
534.205 |
838.735 |
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Expenditures : |
|
|
|
|
|
|
Purchase Of
Trading Goods |
|
1.980 |
0.000 |
|
|
Raw Material
Consumed |
|
522.579 |
813.948 |
|
|
Packing Material
Consumed |
|
16.301 |
23.633 |
|
|
Chemicals
Comsumed |
|
17.713 |
27.654 |
|
|
Stores &
Spares Consumed |
|
11.625 |
32.183 |
|
|
(Increase)/
Decrease In Stocks |
|
0.541 |
[7.063] |
|
|
Manufacturing
Expenses |
|
81.454 |
107.655 |
|
|
Administrative
Expenses |
|
50.367 |
36.703 |
|
|
Financial
Expenses |
|
176.975 |
176.650 |
|
|
Selling Expenses |
|
47.297 |
68.438 |
|
|
Depreciation On
Fixed Assets |
|
23.064 |
22.580 |
|
Total Expenditure |
|
949.896 |
1302.381 |
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SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
Full
Year |
|
Sales
Turnover |
|
|
395.700 |
|
Other
Income |
|
|
01.900 |
|
Total
Income |
|
|
397.600 |
|
Total
Expenditure |
|
|
469.200 |
|
Operating
Profit |
|
|
[71.600] |
|
Interest |
|
|
179.500 |
|
Gross
Profit |
|
|
[251.100] |
|
Depreciation |
|
|
23.300 |
|
Reported
PAT |
|
|
[274.400] |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Current
Ratio |
|
0.71 |
0.72 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
|
1.69 |
2.61 |
|
Inventory |
|
14.27 |
21.75 |
|
Debtors |
|
11.45 |
18.23 |
|
Interest
Cover Ratio |
|
[0.03] |
0.33 |
|
Operating
Profit Margin(%) |
|
2.71 |
6.85 |
|
Profit
Before Interest And Tax Margin(%) |
|
[0.66] |
4.92 |
|
Cash
Profit Margin(%) |
|
[19.99] |
[8.24] |
|
Adjusted
Net Profit Margin(%) |
|
[23.36] |
[10.17] |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.2.30/- |
|
Low |
Rs.2.15/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Cepham Milk Specialities (CMSL) was incorporated on 10
Apr.'91. It 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 Anbitiotics, Cebon
The company came out with a public issue at a premium of Rs 10, aggregating Rs
75.300 Millions, in Jan.'95, 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,
FIXED ASSETS
- Land and Site Development
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipments
- Vehicles
- Air Conditioners
- Computers
Contingent
Liabilities not provided are as under.
- Guarantees given by the Bank for the business
of the Company Rs. 0.250 Millions (Previous years Rs. 0.250 Millions)
against which Counter Guarantee has been given by the Company.
- Westfalia Separators AG,
- Milk Cess 9.315 Millions (Previous
years 9.315 Millions)
- Sale Tax Demand 0.845 Millions
(Previous years 0.845 Millions)
- Local
- Milk purchase tax liabilities for the
period from 15-12-02 to 31-03-06 to the tune of Rs 12.135 Millions
The company has
become Sick Industrial Company as per the provisions of Sick Industrial
Companies (Special Provisions) Act 1985, on the basis of Annual Accounts for
the year 1999-2000 and reference filed has been registered as case no 202/2002
dated-17-05-02 and declared as sick unit in the hearing held on 19 July 2005 by
Honorable BIFR.
MANAGEMENT DISCUSSIONS AND ANALYSIS
Industry structure & Development:
a) Dairy:
The conventional dairy industry is engaged in the manufacture of Skimmed Milk
Powder, Dairy Whiteners, Ghee and supply of Milk. The advanced dairy industry
is manufacturing export-oriented products like Acid Casein, Whey Protein
Concentrate, Lactose, and Milk Calcium etc. These products have ready
International market viz.
b) Herbal:
Our Company is engaged in extraction of various high value herbal products.
Herbal products manufactured by the Company are being exported to various
quality conscious countries.
The company is contributing in the growth of country by earning Foreign
exchange by export of milk derivatives and herbal products.
Opportunities and Threats:
There are ample chances for growth of Company as most of the products of the
Company are being exported and which has ready international market. Secondly,
the
Being export oriented products; the exchange rate fluctuations may affect the
profitability of the Company.
Segment - wise performance and Outlook:
The company is mainly engaged in the business of Milk derivatives. The company
diversified in the business of Herbal Products, which are extracts of Natural
Herbs.
The milk industry needs support from government and a development fund is
required for the growth of milk industry.
Risk and concerns:
Dairy industry is a seasonal industry and is also subject to whether conditions
and availability of milk., Fluctuations in the milk prices also affect the
performance of the Company.
Internal control System and their adequacy:
The Company maintains internal control system, which is adequate keeping in view
the size and structure of the Company.
Financial Performance and Analysis:
The turnover of the company during the year is Rs.769.021 Millions as compared to previous year's turnover of Rs.1157.353
Millions. The losses of the company are Rs.180.795
Millions as compared to previous year's losses of Rs.
118.969 Millions. The company had suffered
losses, since its inception for reasons beyond the control of management and
changing international market scenario for casein followed by reduction in import
duty on lactose, (import substitute) rising milk prices and low availability of
milk resulting in unsustainable operations. The reason for the losses during
the year is acute scarcity of Milk in the state of
Human Resources Development/Industrial Relations:
The Company gives top priority for training; safety and welfare of its
employees at all level and industrial relations were in good harmony.
WEBSITE DETAILS ATTACHED:
Profile
Subject has set up an ultra modern Dairy Unit in
Joint Venture with CEPHAM GROUP and Punjab State Industrial Development Corpn.
Limited, 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,
At CEPHAM GROUP, we have other manufacturing Units namely, Cebon
India Limited and Rajasthan Antibiotics Limited 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
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 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.40.60 |
|
|
1 |
Rs.80.65 |
|
Euro |
1 |
Rs.54.55 |
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 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 |
|