MIRA
INFORM REPORT
|
Report Date : |
12.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BANNARI AMMAN SUGARS
LIMITED |
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Registered Office : |
252, Mettupalayam
Road, Coimbatore – 641 043, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01-12-1983 |
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Com. Reg. No.: |
18-1358 |
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CIN No.: [Company
Identification No.] |
L15421TZ1983PLC001358 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBB03043F |
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PAN No.: [Permanent
Account No.] |
AAACB8933G |
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Legal Form : |
Public limited liability
company. The company’s shares are
listed on the stock exchange |
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Line of Business : |
Manufacturer of
Sugar, Molasses, Granite Blocks,
Polished Granite Slabs, Polished Granite Tiles, Monuments, Rectified Spirit,
Denatured Spirit, Denatured Spirit, Netural Spirit, Fusel Oil and Bio
Compost. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 17000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track. It is faring well. Financial position
is good. Payments are usually correct and as per commitments. Trade relations
are fair. The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long run |
LOCATIONS
|
Registered
Office : |
252, Mettupalayam
Road, Coimbatore – 641 043, Tamilnadu, India |
|
Tel. No.: |
91-422-2450045/2451515/2302277 |
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Fax No.: |
91-422-2431199/2305599 |
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E-Mail : |
bascbe@giasmd01.vsnl.net.in / bascbe@vsnl.com / shares@bannari.com |
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Website : |
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Factory 1 : |
Ř
Sugar Unit, Co-Generation & Granite Processing Alathukombai,
Erode District, Tamilnadu Ř
Distillery Sinnapuliyur,
Erode District, Tamilnadu Ř
Bio-Compost Modur, Erode
District, Tamilnadu Ř
Wind Mills Radhapuram,
Irukkandurai And Karunkulam
Villages Radhapuram Taluk Tirunelveli
District Ř
Sugar Unit, Co-Generation, Distillery & Bio-Compost Alaganchi, Mysore
District, Karnataka |
DIRECTORS
|
Name : |
Mr. V Venkata Reddy |
|
Designation : |
Vice Chairman |
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|
Name : |
Mr. B Saravanan |
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Designation : |
Joint Managing
Director |
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Age : |
32 years |
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Qualification
: |
Commerce
Graduate |
|
Experience : |
5th
July 2000 |
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|
Name : |
Mr. N Solairajan |
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Designation : |
Executive
President |
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|
Name : |
Mr. P Dharmalingam |
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Designation : |
Executive
President (Unit I) |
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Name : |
Mr. R Murugesan |
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Designation : |
Vice President |
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Name : |
Mr. V L Rajagopal |
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Designation : |
Vice President
(Unit I) |
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Name : |
Mr. A Ramaswamy |
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Designation : |
Vice President
(Distillery Division) |
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Name : |
Mr. K Sundaramoorthi |
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Designation : |
Vice President
(Distillery Unit) |
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Name : |
Mr. R Ramgopal |
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Designation : |
Assistant Vice
President (Unit II) |
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Name : |
Mr. C Palaniswamy |
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Designation : |
Company Secretary |
SHAREHOLDING
PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding of Promoter and Promoter Group |
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Indian |
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|
|
Individuals/ Hindu Undivided Family |
1525070 |
15.99 |
|
Central Government/ State Government(s) |
|
|
|
Bodies Corporate |
2931887 |
30.73 |
|
Public shareholding |
|
|
|
Institutions |
|
|
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Mutual Funds/ UTI |
137242 |
1.44 |
|
Financial Institutions / Banks |
515 |
0.01 |
|
Foreign Institutional Investors |
20369 |
0.21 |
|
Non-institutions |
|
|
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Bodies Corporate |
1106758 |
11.60 |
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Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Millions |
1640243 |
17.19 |
|
ii. Individual shareholders holding nominal share capital
in excess of Rs. 0.100 Millions |
2173240 |
22.78 |
|
Clearing Member |
4376 |
-- |
|
Total |
9539700 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Sugar, Molasses, Granite Blocks,
Polished Granite Slabs, Polished Granite Tiles, Monuments, Rectified Spirit, Denatured
Spirit, Denatured Spirit, Netural Spirit, Fusel Oil and Bio Compost. |
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Products : |
Item Code
No. Product Description 17019902
White Crestal Sugar 22072000
Industrial Alcohol 68022301
Granite Block and Slabs |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Tamilnadu – Sugar
|
Tones Per day |
NA |
4000 |
|
Karnataka– Sugar |
Tones Per day |
NA |
5000 |
|
Granite Slabs |
Sq. Mtr Per annum |
50000 |
50000 |
|
Granite Tiles |
Sq. Mtr Per annum |
95000 |
10000 |
|
Monuments |
Sq. Mtr Per annum |
2500 |
2500 |
|
Tamilnadu
–Industrial Alcohol |
Millions Ltrs. Per annum |
24 |
16.33 |
|
Karnataka - Industrial
Alcohol |
Kilo Ltrs. Per day |
60 |
60 |
|
Tamilnadu - Power
|
MW Per Hour |
NA |
20 |
|
Karnataka- Power |
MW Per Hour |
NA |
16 and 20 |
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Tamilnadu - Power
|
|
NA |
8750 KWH |
GENERAL
INFORMATION
|
No. of Employees : |
2200 |
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Bankers : |
Ř Punjab National
Bank Ř Bank of Baroda Ř Canara Bank Ř The Federal Bank
Limited Ř The Karur Vysya
Bank Limited Ř Union Bank of
India Ř Indian Overseas
Bank Ř State Bank of
Travancore Ř State Bank of
India Ř
The Lakshmi Vilas Bank Limited |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Ř M/s P N
Raghavendra Rao and Company Chartered Accountants Ř
Internal Auditors Srivatsan and Gita Chartered Accountants Ř
Cost Auditor M Nagarajan Cost Accountant |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,000,000 |
Equity Shares
|
Rs. 10/- Each
|
Rs. 500.000 Millions
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29,900,000 |
Equity shares |
Rs. 10/- each |
Rs. 299.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
299.000 |
95.397 |
95.397 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
4057.300 |
2715.861 |
2007.014 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
4356.300 |
2811.258 |
2102.411 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1106.400 |
1624.906 |
2620.869 |
|
|
2] Unsecured
Loans |
560.800 |
466.252 |
472.409 |
|
TOTAL
BORROWING
|
1667.200 |
2091.158 |
3093.278 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
518.922 |
501.030 |
|
|
|
|
|
|
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TOTAL
|
6023.500 |
5421.338 |
5696.719 |
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APPLICATION OF FUNDS
|
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|
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|
|
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|
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FIXED ASSETS [Net Block]
|
3821.100 |
3133.198 |
3311.549 |
|
Capital work-in-progress
|
71.900 |
143.177 |
100.949 |
|
|
|
|
|
|
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INVESTMENT
|
34.300 |
34.311 |
34.043 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
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Inventories
|
2350.000
|
1991.112
|
2315.092
|
|
|
Sundry Debtors
|
716.000
|
651.515
|
535.728
|
|
|
Cash & Bank Balances
|
485.100
|
158.832
|
29.524
|
|
|
Other Current Assets
|
0.000
|
23.119
|
87.820
|
|
|
Loans & Advances
|
775.100
|
443.179
|
221.091
|
Total Current Assets
|
4326.200
|
3267.757
|
3189.255
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
1800.000
|
1157.105
|
939.077
|
|
|
Provisions
|
430.000
|
--
|
--
|
Total Current Liabilities
|
2230.000
|
1157.105
|
939.077
|
|
Net Current Assets
|
2096.200
|
2110.652
|
2250.178
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
6023.500 |
5421.338 |
5696.719 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
8170.200 |
6140.142 |
4695.926 |
|
|
Other Income |
53.800 |
28.381 |
62.123 |
|
|
Total Income |
8224.000 |
6168.523 |
4758.049 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1083.600 |
957.166 |
562.621 |
|
|
Provision for Taxation |
180.700 |
187.417 |
126.557 |
|
|
Profit/(Loss) After Tax |
902.900 |
769.749 |
436.064 |
|
|
|
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
1052.183 |
250.967 |
319.723 |
|
|
|
|
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Imports : |
|
|
|
|
|
|
Stores & Spares |
NA |
30.331 |
67.553 |
|
|
Capital Goods |
NA |
18.232 |
-- |
|
Total Imports |
NA |
48.563 |
67.553 |
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Materials
Purchased |
4059.300 |
2396.008 |
1865.402 |
|
|
Manufacturing
and Other Expenses |
2384.400 |
2131.684 |
1753.288 |
|
|
Excise Duty |
238.000 |
143.405 |
145.192 |
|
|
Interest and
Financial Charges |
85.200 |
109.560 |
111.536 |
|
|
Depreciation |
373.500 |
430.700 |
320.010 |
|
Total Expenditure |
7140.400 |
5211.357 |
4195.428 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
1377.600
|
1392.200
|
1756.600
|
|
Other
Income |
2.200
|
27.300
|
15.400
|
|
Total
Income |
1379.800
|
1419.500
|
1772.000
|
|
Total
Expenditure |
1218.500
|
1292.800
|
1647.300
|
|
Operating
Profit |
161.300
|
126.700
|
124.700
|
|
Interest |
11.500
|
15.100
|
18.000
|
|
Gross
Profit |
149.800
|
111.600
|
106.700
|
|
Depreciation |
76.000
|
78.000
|
88.000
|
|
Tax |
8.800
|
4.500
|
3.500
|
|
Reported
PAT |
76.400
|
41.500
|
26.400
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.52 |
1.06 |
1.61 |
|
Long Term Debt-Equity Ratio |
0.48 |
0.73 |
0.81 |
|
Current Ratio |
1.78 |
1.37 |
1.11 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.46 |
1.31 |
1.14 |
|
Inventory |
3.76 |
3.00 |
2.04 |
|
Debtors |
11.95 |
10.90 |
7.83 |
|
Interest Cover Ratio |
13.72 |
9.16 |
5.59 |
|
Operating Profit Margin(%) |
18.88 |
23.26 |
19.98 |
|
Profit Before Interest And Tax Margin(%) |
14.31 |
16.61 |
13.62 |
|
Cash Profit Margin(%) |
15.62 |
18.55 |
15.03 |
|
Adjusted Net Profit Margin(%) |
11.05 |
11.90 |
8.67 |
|
Return On Capital Employed(%) |
21.40 |
21.28 |
13.78 |
|
Return On Net Worth(%) |
25.77 |
31.33 |
22.85 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets :
Ř Land-Free hold
Ř Land-Lease hold
Ř Buildings
Ř Plant and Machinery
Ř Furniture,
Fixtures,
Ř Office and Canteen
Ř Equipments
Ř Live Stock
Ř
Motor Vehicles
History
Bannari Amman Sugars Limited (BASL) was incorporated in
December 1983. The company was promoted by S V Balasubramanian and K S
Thirumalaiswamy to manufacture sugar in Southern India. Now, it has scattered
its activities in Distillery, Granites, Co-generation of Power, Wind Mills
operations.
BASL came out with a public issue in Sep' 1985, to set up a sugar plant in
Alathukombai in Tamil Nadu. This plant was commissioned with initial capacity
of 1250 tonnes of cane crush per day. It manufactures sugar using the
conventional double sulphitation process. The company's success in its first
venture, led the company to make a next step towards its way. In 1992 the
company had set up a sugar mill with a daily cane crushing capacity of 2500 TCD
in Alaganchi village, Mysore district in the state of Karnataka. This project
was financed by rights issue of zero interest fully convertible debentures of
Rs. 196.875 Millions, secured redeemable non-convertible debentures for Rs. 140
Millions issued to Citibank N.A. and term loan of Rs. 80 Millions received from
ICICI Limited Total capacity of sugar mills in Tamil Nadu and Karnataka
increased to 4000 TCD & 5000 TCD over the period.
The company diversified its activity in several segments. As a first step, it
started to manufacture Citric Acid in 1987 with annual capacity of 5,400
tonnes. Subsequently it diversified into the lucrative field of granite exports
by setting up a 100% EOU in Nov' 1990, at Alathukombai to produce 50,000 sq mtr
of polished granite slabs and 60,000 sq mtr of granite tiles per annum. It has
acquired and taken on lease several quarries in Tamil Nadu, Karnataka, Andhra
Pradesh and Rajasthan.
In 1995, M/s Coimbatore Alcohol and Chemicals Limited (CACL) amalgamated with
BASL. The company allotted 20,00,000 equity shares of Rs. 10/- each at a
premium of Rs. 80/- per share to the shareholders of CACL as per the scheme of
amalgamation.
The company made its next diversification for Co-generation of power in the
year 2000. It has set up a co-generation power plant with an installed capacity
of 16 MW in the sugar factory in Karnataka. The company has also set up a 20 MW
co-generation plant at Alathukombai in Aug' 2002 and an additional 20 MW
co-generation plant at Alaganchi in Mar' 2004. Total capacity of co-generation
power plant stands at 56 MW.
During 2004-05, the company has diversified into windmill operation and
commissioned 7 wind turbine generator at Radhapuram in the state of Tamil Nadu.
The windmill has started its operation.
During 2005-06, the company proposes to increase the installed capacity of the
sugar unit in Karnataka from 5000 TCD to 7500 TCD.
Amalgamation
of Maheswara Sugars Limited with the Company:
The Hon'ble High Court of Judicature at Madras has approved the scheme of
amalgamation of Maheswara Sugars Limited with the company on 6th November 2007.
As per the scheme of amalgamation, the company has allotted 19,00,000 equity
shares of Rs. 10/- each and 18,46,000 9% redeemable non-cumulative preference
shares of Rs. 100/- each to the shareholders of Maheswara Sugars Limited.
Review
of Operations:
The comparative operational performances for the last two years are as
under:
Sugar Division:
During the year under review in sugar unit I, 1.075 Millions tonnes of
sugarcane was crushed as against the estimated cane crush of 1.000 Million
tonnes. In sugar unit II, 1.727 Millions tonnes of sugarcane was crushed as
against estimated cane crush of 1.800 Millions tonnes. In sugar unit III, 0.136
Million tonnes of sugarcane was crushed from 1.1.2007 to 31.3.2007.
Co-generation of Power:
The co-generation plant in sugar unit I had generated 162.00 million units of
power and exported 116.58 million units to the Tamilnadu Government Grid. In
sugar unit II, the 16 MW co-generation plant had generated 108.98 million units
of power and 20 MW co-generation plant had generated 109.69 million units of
power and exported 93.65 million units and 58.42 million units respectively to
Karnataka Government Grid.
Distillery Division:
The distillery in Tamilnadu had worked for 338 days and produced 2.001 Millions
B. Ltrs of Rectified Spirit, 16.442 Millions B. Ltrs of Neutral Spirit and
0.011 Million B. Ltrs of Fusel oil.
The distillery in Karnataka had worked for 169 days and produced 0.158 Millions
B.Ltrs of Rectified Spirit, 5.570 Millions B. Ltrs of Neutral Spirit and 0.393
Millions B. Ltrs of Medium Grade Alcohol.
Granite Division:
In the Granite Division at Tamilnadu, 1,12,030 square metres of Granite slabs,
12,742 square metres of tiles and 1,127 square metres of monuments were
produced, compared to production of 88,574 square metres of Granite Slabs,
8,655 square metres of tiles and 2,651 square metres of monuments in the last
year.
Wind Mill:
Wind mills had generated 17.25 million units of power and exported 15.25
million units to TNEB grid as against 15.03 million units generated and
exported in the last year.
Prospects for the Current year
2007-2008:
It is estimated to crush 0.900 Million tonnes of sugarcane in sugar unit I,
2.000 Millions tonnes of sugarcane in sugar unit II and 0.600 Million tonnes of
sugarcane in sugar unit III. It is estimated to produce 18.500 Millions B.
Ltrs. of spirit in the distillery unit at Tamil Nadu and 5.000 Millions B.
Ltrs. of spirit in distillery unit at Karnataka.
An incineration plant with 2 MW power generation is being established in
Distillery Unit in Karnataka which may be in operation from July 2008. This
will help to operate with full capacity and also for further expansion.
The company proposes to expand the sugarcane crushing capacity of the sugar
factory in Kollegal from 2500 TCD to 6000 TCD besides establishing 28.8 MW
co-generation power plant, In spite of depressed sugar prices, favourable
working results are envisaged.
Research
and Development (R&D):
Specific areas in which R&D is
carried out by the Company:
In Sugar Unit I:
a) In the R&D Farm as well as in farmers' fields, trials are being taken up
with recently released new varieties and clones in pre release stage viz.
Co94012, Co99006 etc., to study the suitability of these varieties in their
operational area.
b) They are organising community insecticides spray in the areas nearer to
forest, to control adults of white grub which normally spurts immediately after
first summer rains.
c) The farmers are being advocated to take up integrated soil and water management
practices for getting better sustainable cane yield besides saving precious
scarce irrigation water. Check dams are being constructed at suitable locations
to raise the ground water level.
d) In the areas of their R&D Farm as well as in Farmers' fields, trial on
drip fertigation with wider row, paired row and pit method of planting are
being taken up to study labour and water savings besides yield and quality
impact.
In the Distillery unit in Tamilnadu:
New enzyme products are evaluated to use in the fermentation process to improve
performance.
In Sugar Unit II:
a) An agreement has been entered into with Sugarcane Breeding Institute,
Coimbatore under the scheme "Institute Industry Interface Programme-Phase
III" to identify the alternate varieties suitable for Southern Karnataka.
b) The seed materials of Wholly Aphid resistant variety COVC.2003.165, received
from University of Agricultural Sciences, planted in about 25 acres of farmers'
fields for further multiplication and planting purpose.
c) The results of pit and paired row planting methods were explained to farmers
in order to popularise the same.
Benefits derived as a result of the
above R&D:
In Sugar Unit I:
a) In the Bio Laboratory, they are manufacturing bio fertilisers viz.
Azospirillum, phosphobacterium, Bio-pesticides viz. Trichoderma Viridi,
Pseudomonas, Beauveria, Metarhizium and VAM which are environmental friendly
and a part of sustainable best agricultural practices.
b) The integrated soil and water management practices enables sustainable cane
yield besides saving precious scarce irrigation water.
c) The check dams increase the groundwater level allaying the fear of water
scarcity.
d) Drip fertigation in Sugarcane crop paves way for agriculture labour savings
to a considerable extent besides savings in irrigation water upto 40%. It also
enhances Sugarcane yield and quality.
In the Distillery unit in Tamilnadu:
New enzyme product improves production rate and reduction of fuel and power
consumption per unit of product.
In Sugar Unit II:
a) 13 numbers of new sugarcane varieties were received from Sugarcane Breeding
Institute and planted to identify the alternate varieties suitable for Southern
Karnataka.
b) The wholly aphid resistant variety has been planted for further
multiplication and planting.
Future Plan of action:
(a) In sugar unit I necessary steps are being taken up to identify technologies
viz. Power tiller drawn implements for small farmers, mini tractor drawn
implements for medium to large holdings and popularising the same with farming
community for the benefit of farmers. Efforts are being taken up to machanise
cane harvesting operations by identifying suitable tractor drawn machines as
well as medium size international machines suitable for Indian conditions.
(b) In the Distillery Division in Tamilnadu, in depth study is in progress to
adopt new technologies for Spentwash utilization with energy
conservation.
Opportunities
and Outlook:
The company has acquired a sugar factory with a cane crushing capacity of 2500
TCD byway of amalgamation. It is proposed to increase the cane crushing
capacity to 6000 TCD besides setting up of 28.8 MW co-generation plant.
Crude oil prices are expected to firm up at higher levels resulting in sharp
increase in the outflow of foreign exchange. To mitigate the volatile nature of
price fluctuations in crude oil, the Government of India have announced 5%
blending of ethanol with petrol. The Government has increased the blending to
10%, optional from October this year and mandatory from October 2008. The
Government has also permitted sugar factories to manufacture ethanol directly
from sugarcane juice.
These positive steps taken by the Government of India would enable the industry
to produce sugar at levels matching the consumption pattern. The production of
sugar without over stocking coupled with ethanol production would benefit sugar
industry as well as agriculturists to get fair prices within the stipulated
time.
The carbon credit available to the sugar industry for co-generation of power
out of bagasse and for ethanol production would also benefit the
industry.
The Central and State Governments should take immediate initiatives for
establishment of new distillery units and co-generation plants in the interest
of conserving foreign exchange and improving the viability of sugar
industry.
AS PER
WEBSITE
Sugar Division
WHITE
CRYSTAL PLANTATION CANE SUGAR production in the three units of Bannari Amman Sugars
Limited, is now almost Eleven Times at 14,000 tonnes of cane crush / day from
the initial capacity of 1250 TCD of its first Sugar Unit..
Sugar
Unit-1: The first Sugar unit near Sathyamangalam of Erode District, Tamil Nadu
State, started its commercial production in the year 1986 with an initial
capacity of 1250 tonnes of Cane crush per day and expanded to 2500 tonnes in
1998. The crushing capacity is now expanded to 4000 TCD. The unit has many
credits and firsts in the sugar industry of the country.
An
EN/ISO 9002 unit accredited by RWTUV of Germany in 1997 for its good system of
quality management ensuring a better product. This has been upgraded to ISO
9001:2000 valid upto 20.7.2010. The unit's sugar is also marketed in consumer
packs of 1 kg in select cities of Tamil Nadu.
The
Sugar Unit -I has an imported facility to produce 300MT of Refined Sugar per
Day and the same is mainly marketed to Pharmaceutical and Food Industries. For manufacture
and supply of refined sugar TUV of GERMANY in 2007 accredited HACCP certificate
for its management system as per Codex Aliemtarius commission (Recommended
international codex of practice - General principles of Food Hygiene CAC/ RCP
1- 1969, rev.4 (2003)). Bannari's ONE-UP Refined Sugar in 1 Kg
consumer packs are available in the market.
Bannari
Amman Sugars Limited produces Bio Products for Soil fertility, high yield and
toxic free farming. High quality Fertilisers and Pesticides for healthy crop
and for better pest management are offered at low prices
Sugar
Unit-2: The Second unit of Bannari Amman Sugars Limited, near Nanjangud in
Mysore District of Karnataka State, started the commercial production in the
year 1992 with an initial cane crushing capacity of 2500 tonnes per day and
expansion to a capacity of 5000 tonnes in Year 2000. 'Another expansion to 7500
Tonnes Cane crush per Day is complete in July 2006.
The
Distillery at their Sugar Unit-2, to produce 60,000 litres of Industrial
Alcohol per day, has commenced its production from March 2005.
Sugar
Unit III: The Company has acquired a sugar mill having a cane crushing capacity
of 2500 TCD in Kunthur Village near Kollegal in Karnataka by way of
amalgamation of M/s. Maheswara Sugars Limited, with the company. The expansion
of cane crushing capacity of this sugar unit to 6000 Tonnes Cane per Day and
setting up of a new Co- Generation Plant for production of 28.8 MW power are
under active planning for execution.
A 100% Export Oriented Unit, established in the year 1991 for
manufacture of Polished Granite Slabs, Tiles and Monuments. One of the most
modern and well planned granite plants in India, having a reputed clientele
base all over the world including USA, Germany, Belgium, Italy, Australia,
Middle East and the Far East. Granite Division Has own captive granite quarries
in some of the well-known Indian materials, which ensure timely delivery of the
finished goods. Also exports rough Granite Blocks.
DISTILLERY DIVISION The Distillery Division produces over 60,000 litres
of Industrial Alcohol per day. The distillery has set up a bio-gas plant with
the help of technical know-how from France, to provide an alternate source of
energy. This reflects the company's growing concern for the environment and the
need to find suitable alternatives.
Distillery being a down stream industry of Sugar, Bannari Amman Sugars Limited,
produces over 60,000 litres of industrial alcohol and extra neutral spirit per
day from sugarcane molasses. The technical know-how from France meets the
strict pollution control measures to protect environment and also need to find
sustainable alternative source of energy with a bio-methanisation plant.
Biocompost plays a key role in maintaining soil fertility. It possesses
many desirable properties and exerts beneficial efforts on the physical,
chemical and biological characteristics of the soil. In addition, it improves
the efficient usage of chemical fertilizers. Biocompost being used in Kenya,
Philippines and America has consistently increased crop yield, while reducing
the usage of chemical fertilizers.
Nutrient rich Bannari Amman Biocompost
BIO COMPOST is prepared in Bannari Amman Sugars Limited, by mixing the
nutrient rich pressmud from sugar mills with Nitrogen; Phosphorous and
Potassium rich Spent wash obtained from Distillery unit. In this process,
decomposing beneficial bacteria and aero booster are engaged for proper and
better decomposition of the above mixture.
The Co-generation Plant at the Sugar Unit II with two Turbo Alternators
of capacities 16 and 20 MW, exports the surplus power to the Karnataka State
Electricity Board's Grid. The total Power Generation capacity at Unit II is now
36 MW. Another Co-Generation Plant for generating 20 MW electricity at the
sugar Unit-1 has been installed; The Surplus power is exported to the TamilNadu
State Electricity Board.
The Alternate non-conventional renewable source of energy, ultimate
answer for the future.
Seven nos. of 1250 KW WTG from Suzlon have been installed in Karunkulam,
Radhapuram, Irukkandurai villages in Tirunelveli Districts of Tamilnadu.
The power generated from the wind energy generators is fed to the Tamilnadu
State Electricity Board's Grid and adjusted in the power consumption of various
industries, established by the group.
The Company's Bio Diesel Plant at Sathyamangalam, Tamilnadu, has
commenced production of 3000 litres of Bio Diesel per Day, from multi feed
stock viz Jatropha, Pungan seeds etc.
For promotion and popularization of Jatropha as a Bio Fuel Crop for
afforestation of Non Forest Wastelands, the Company is providing training and
all technical assistances to the farmers of Coimbatore, Erode, Karur and
Dindigul districts of Tamilnadu, and has plans to plant Jatropha in more than
10,000 Acres by 2009-10.
The Company has also arranged financial assistance to the farmers under tie-up
arrangements with banks.
Farmers having uncultivable/degraded land, wasteland with minimum water source,
having large extent of lands in drought prone area, willing to take up long
term plantation in wastelands with minimum risk, are now having opportunity to
harvest money.
Aforestation of the existing wastelands in the rural India by using Jetropha
Curcus may increase the rural employment opportunities and the income for the
well being of the rural India as a whole and contribute to the energy security
of the country.
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.39.57 |
|
UK Pound |
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.56.35 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|