MIRA
INFORM REPORT
|
Report Date : |
13.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RUCHI SOYA INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
408 Tulsiani Chambers, 2nd Floor, Backbay Reclamation,
Nariman Point, Mumbai - 400 021, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
06.01.1986 |
|
|
|
|
Com. Reg. No.: |
11-38536 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L15140MH1986PLC038536 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR14074E BPLR03207B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACR2892I |
|
|
|
|
|
|
|
Legal Form : |
A public limited liability company. The company's shares
are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing of Soyabean Oil Edible Grade, Meal of Soya
Bean and Other Vegetable Oils and Fats. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
|
||
|
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 |
||
|
|
|
|
|
|
|
|
Maximum Credit Limit : |
USD 55300000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established company having fine track.
Directors are well know and respectable industrialists. Their trade relations
are fair. Financial position is good. Payments are usually correct and as per
commitments. The company can be considered good for any normal business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
408 Tulsiani Chambers, 2nd Floor, Backbay
Reclamation, Nariman Point, Mumbai - 400 021, Maharashtra, India. |
|
Tel. No.: |
91-22-2832130/2832132/ 22824851-53-57 / 66560600 |
|
Mobile No.: |
91-22-56560622 (Amrita Shahra) |
|
Fax No.: |
91-22-2042865/ 22837525 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head/Administrative Office : |
301 Mahakosh House, 7/5 South Tukoganj, Indore - 452 001, Madhya
Pradesh, India. |
|
Tel. No.: |
91-731-2513281-82-83 |
|
Fax No.: |
91-731-4065019 / 2527250 |
|
|
|
|
Factory : |
Ø Mangliagaon,
A. B. Road, Indore - 452 001, Madhya Pradesh Ø
C-10, Phase II, Noida - 201 301, Uttar Pradesh |
|
|
|
|
Branches : |
Located at Delhi, Ghaziabad and Calcutta |
DIRECTORS
|
Name : |
Mr. Kailashchandra Shahra |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Dinesh Shahra |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
53 Years |
|
Qualification : |
B. E. (Chemical Engineer) |
|
Experience : |
33 Years |
|
Date of Appointment : |
07th January, 1986 |
|
|
|
|
Name : |
Mr. P. S. Santhanakrishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Purushottamdas D. Nagar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gopal Datt Bhatt |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. P. Joshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. B. Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P.D. Dwivedi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sajeve Deora |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R.L. Gupta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2008
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group2 |
|
|
|
Indian |
|
|
|
Individuals/ Hindu Undivided Family |
39507037 |
20.93 |
|
Bodies Corporate |
31414646 |
16.64 |
|
|
|
|
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
11302987 |
5.99 |
|
Financial Institutions / Banks |
184071 |
0.10 |
|
Foreign Institutional Investors |
51521238 |
27.29 |
|
|
|
|
|
Non-institutions |
|
|
|
Bodies Corporate |
38520639 |
20.40 |
|
Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
14059454 |
7.45 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
1894000 |
1.00 |
|
Any Other (specify) |
|
|
|
Clearing member |
385238 |
0.20 |
|
Trusts |
|
|
|
|
750 |
0.00 |
|
GRAND TOTAL |
188790060 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Soyabean Oil Edible Grade, Meal of Soya
Bean and Other Vegetable Oils and Fats. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS
|
|
|
|
|
31.03.2008 Quantity (M.T.) |
|
INSTALLED CAPACITY (On three shift basis) |
|
|
|
|
|
Textured Soya Proteins |
|
|
|
152000 |
|
Edible Soya Flour (Soya Protein) |
|
|
|
60000 |
|
Soyabean Extraction |
|
|
|
2312424 |
|
Oils (including lecithin) |
|
|
|
2121000 |
|
Vanaspati |
|
|
|
469500 |
|
Power Generation (in MW) |
|
|
|
30.30 |
|
|
|
|
|
|
|
PRODUCTION |
|
|
|
|
|
Textured Soya Proteins |
|
|
|
40004.781 |
|
Realisable by-products |
|
|
|
75692.952 |
|
Seed Extractions (DOC) |
|
|
|
1457408.785 |
|
Oils |
|
|
|
1524770.710 |
|
Vanaspati |
|
|
|
152754.861 |
|
Power Generation (Number of Units) |
|
|
|
20810157 |
|
Seedling (Number of Units) |
|
|
|
57596 |
GENERAL
INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
No. of Employees : |
2000 |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
Ø
State Bank of Indore Ø
State Bank of Saurashtra Ø
State Bank of Bikaner and
Jaipur Ø
State Bank of Hyderabad Ø
State Bank of Travancore Ø
State Bank of Patiala Ø
State Bank of Mysore Ø
Dena Bank Ø
Oriental Bank of Commerce Ø
The Bank of Rajasthan Limited Ø
Punjab National Bank Ø
Bank of India Ø
Axis Bank Limited Ø
United Bank of India Ø
Bank of Maharashtra Ø
Syndicate Bank Ø
Corporation Bank Ø
Canara Bank Ø
UCO Bank Ø
The South Indian Bank Limited Ø
The Karur Vysya Bank Limited Ø
Vijaya Bank Ø Andhra Bank Ø Central Bank of
India |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
Notes : 1 9.75% Secured
Redeemable Non-Convertible Debentures of Rs.100/- each privately placed with Financial
Institution are redeemable in three equal installments at the end of 4th, 5th
and 6th year from the date of allotment, i.e. 19th September, 2003. The above
debentures are secured by (a) first charge by way of an equitable mortgage of
all immovable properties of the Company including plant and machinery and
stores and spares of the Company, wherever situated and (b) a first charge by
way of hypothecation of all movable properties, both present and future (save
and except book debts) of the Company. The first charge
by way of equitable mortgage in favour of debenture holders and some lenders
rank pari passu each other and is subject to charge on specified properties. Amount repayable
within 12 months Rs.11.667 Millions (Previous year Rs. 11.667 Millions). 2 (i) Loans from
financial institutions, banks and others (other than those vested on
amalgamation) are secured by (a) a first charge by way of an equitable
mortgage over all the immovable properties of the Company at specific
locations, (b) a first charge by way of hypothecation of movable properties
situated at the respective locations and (c) Personal Guarantee of the
Managing Director. (ii) Loans from
financial institutions and banks vested on amalgamation are secured by (a) a
first charge by way of an equitable mortgage over all the immovable
properties of the transferor companies at specific locations [including a
charge over the assets of a company from whom the Company acquired SVF
business by way of slump sale (b) a second charge by way of equitable
mortgage of all the immovable properties at specific locations, (c) a first
charge by way of hypothecation of the movable properties at the respective
locations and (d) Personal Guarantee of shareholder(s)/promoter(s) in certain
cases. iii) The above
charge of various lenders at specified locations above rank pari passu inter
se the lenders at each location. Amount repayable
within 12 months Rs.1191.639 Millions (Previous year Rs.2802.838 Millions). 3 (i) The
borrowings availed from consortium banks (other than those vested on
amalgamation) are secured/to be secured by (a) a first charge by way of
hypothecation of stocks and other current assets ranking pari passu, (b) a
charge by way of hypothecation / equitable mortgage of movable/immovable
properties in favour of consortium banks ranking second and subservient to
the charges specified in Note nos.1 and 2 (i) ranking pari passu and (c)
personal guarantee of two directors of the Company. (ii) The
borrowings availed from banks outside consortium are secured /to be secured
by (a) exclusive stocks, book debts and other current assets pertaining to
the facilities granted by them and (b) personal guarantee of the Managing
Director of the Company. (iii) The
borrowings availed from consortium banks (vested on amalgamation) are
secured/to be secured by (a) a first charge by way of hypothecation of stocks
and other current assets, (b) a charge by way of hypothecation / equitable
mortgage of movable/immovable properties on first charge basis ranking pari
passu in certain cases and second charge in certain cases [including a charge
over the assets of a company from whom the Company acquired SVF business by
way of slump sale and (c) Personal Guarantee of shareholder(s)/promoter(s) of
the Company. The second charge is subservient to the charge specified in Note
no.2 (ii). Amount repayable within 12 months Rs.1771.597 Millions (Previous
year Rs.1949.879 Millions). 4 In terms of the Schemes, the loans vested on
amalgamation are subject to existing charges/hypothecation/mortgage
subsisting thereon and shall neither extend to the assets of the Company nor
operate to enlarge the securities for the said liabilities of the transferor
companies. 5 These loans
are secured by hypothecation of vehicles purchased out of the said loans. Amount repayable within 12 months Rs.4.301 Millions (Previous year
Rs.8.144 Millions).
|
|
|
|
|
Banking Relations
: |
Good |
|
|
|
|
Auditors : |
P. D. Kunte and Company Chartered Accountants Cost Auditors : K. G. Goyal and Company Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
Ø Ruchi
International Limited, Ø Ruchi Private Limited Subsidiaries : Ø
Ruchi Health Foods Limited Ø
Ruchi Worldwide Limited Ø Aneja Solvex
Limited Ø Mahadeo Shahra and Sons Ø Mahadeo Shahra Sukrut Trust Ø Nutrela Marketing Private Limited Ø Ruchi Realty Private Limited Ø Ruchi Infrastructure Limited Ø Shahra Brothers Private Limited Ø Sunshine Oleochem Limited (Private Limited upto 25.03.2008) Ø RSIL Beneficiary Trust Ø Soyumm Marketing Private Limited Ø Ruchi Bio Fuels Private Limited Ø Ruchi Marktrade Private Limited Ø Shiva
Foundation (Trust) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
275000000 |
Equity Shares |
Rs.2/- Each |
Rs.550.000 Millions |
|
6500000 |
Cumulative Redeemable Preference Shares |
Rs.100/-each |
Rs.650.000 Millions |
|
|
Total |
|
Rs.1200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
188790060 |
Equity Shares |
Rs.2/- Each |
Rs.377.580 Millions |
|
4524285 |
4% Cumulative Preference Shares |
Rs.100/-each |
Rs.452.429 Millions |
|
|
Warrant Application Money |
|
Rs.224.169 Millions |
|
|
Total |
|
Rs.1054.178 Millions |
Notes:
1. During the year,
the Company has sub-divided each equity share of Rs.10/- into 5 equity shares
of Rs.2/- each.
2. Out of
45,24,285 preference shares, 30,19,186 preference shares were allotted on 31st
March, 2004 and are redeemable at par in three annual installments at the end
of 8th, 9th and 10th year from the date of allotment with a put and call option
at the end of each year i.e. 1st and 2nd installment of Rs.33/- each per
preference share on completion of 96 months and 108 months respectively and 3rd
installment of Rs.34/- per preference share on completion of 120 months from
date of allotment. The balance 15,05,099 preference shares were allotted on
30th March, 2005 and are redeemable at par in three annual installments with a
put and call option at the end of 8th, 9th and 10th year from the date of
allotment i.e. 1st and 2nd installments of Rs.33/- each per preference share on
completion of 96 months and 108 months respectively and 3rd installment of
Rs.34/- per preference share on completion of 120 months from date of
allotment.
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1054.178 |
817.147 |
817.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10012.067 |
8066.761 |
7183.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
11066.245 |
8883.908 |
8000.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6985.107 |
6424.432 |
4860.500 |
|
|
2] Unsecured Loans |
8610.684 |
8273.244 |
5903.200 |
|
TOTAL BORROWING
|
15595.791 |
14697.676 |
10763.700 |
|
|
DEFERRED TAX LIABILITIES |
1017.815 |
718.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
27679.851 |
24299.584 |
18764.200 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
11782.363 |
10578.370 |
10040.900 |
|
Capital work-in-progress
|
233.787 |
201.318 |
175.800 |
|
|
|
|
|
|
|
INVESTMENT
|
819.169 |
424.532 |
232.800 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
21382.280
|
9578.703 |
8699.100 |
|
|
Sundry Debtors
|
10377.058
|
8269.216 |
6608.100 |
|
|
Cash & Bank Balances
|
5789.031
|
6711.651 |
5885.100 |
|
|
Other Current Assets
|
107.239
|
111.797 |
0.000 |
|
|
Loans & Advances
|
7258.196
|
4704.536 |
2988.200 |
Total Current Assets
|
44913.804
|
29375.903 |
24180.500 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
28907.198
|
15137.620 |
15126.100 |
|
|
Provisions
|
1164.282
|
1145.367 |
744.600 |
Total Current Liabilities
|
30071.480
|
16282.987 |
15870.700 |
|
Net Current Assets
|
14842.324
|
13092.916 |
8309.800 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
2.208 |
2.448 |
4.900 |
|
|
|
|
|
|
|
TOTAL
|
27679.851 |
24299.584 |
18764.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover & Other Income |
110750.100 |
86482.860 |
76101.700 |
|
|
Total Income |
110750.100 |
86482.860 |
76101.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2537.415 |
1564.425 |
1196.400 |
|
|
Provision for Taxation |
945.140 |
557.474 |
368.200 |
|
|
Profit/(Loss) After Tax |
1592.275 |
1006.951 |
828.200 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
3083.500 |
|
|
Administrative Expenses |
0.000 |
0.000 |
2194.700 |
|
|
Raw Material Consumed |
77704.463 |
53471.131 |
0.000 |
|
|
Purchases made for re-sale |
23251.592 |
24588.176 |
72454.6 |
|
|
Increase/(Decrease) in Finished Goods |
(2846.749) |
(1189.849) |
(799.200) |
|
|
Expenses |
8335.995 |
6631.927 |
0.000 |
|
|
Interest |
1020.085 |
760.953 |
1204.600 |
|
|
Power & Fuel |
0.000 |
0.000 |
702.300 |
|
|
Depreciation & Amortization |
747.299 |
656.097 |
554.600 |
|
|
Other Expenditure |
0.000 |
0.000 |
788.400 |
|
Total Expenditure |
108212.685 |
84918.435 |
74905.300 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 1st Quarter |
|
Sales Turnover |
|
|
27964.600 |
|
Other Income |
|
|
41.100 |
|
Total Income |
|
|
28005.700 |
|
Total Expenditure |
|
|
26901.800 |
|
Operating Profit |
|
|
1103.900 |
|
Interest |
|
|
262.900 |
|
Gross Profit |
|
|
841.000 |
|
Depreciation |
|
|
189.800 |
|
Tax |
|
|
162.500 |
|
Reported PAT |
|
|
426.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
1.54 |
1.51 |
1.60 |
|
Long Term Debt
Equity Ratio |
0.50 |
0.45 |
0.44 |
|
Current Ratio |
1.08 |
1.06 |
1.05 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
7.78 |
6.87 |
8.73 |
|
Inventory |
7.06 |
9.38 |
11.85 |
|
Debtors |
11.72 |
11.52 |
12.88 |
|
Interest Cover
Ratio |
2.34 |
2.08 |
1.99 |
|
Operating Profit
Margin (%) |
4.73 |
4.29 |
3.95 |
|
Profit Before
Interest and Tax Margin (%) |
4.05 |
3.52 |
3.21 |
|
Cash Profit
Margin (%) |
2.14 |
1.94 |
1.85 |
|
Adjusted Net
Profit Margin (%) |
1.46 |
1.17 |
1.11 |
|
Return on Capital
Employed (%) |
17.70 |
14.26 |
16.00 |
|
Return on Net
Worth (%) |
16.73 |
12.43 |
15.31 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject, a company which has been in the business of edible oils for
over two decades. They are offering a cooking medium to match the various tastes
of this vast and varied nation. They are the leader in edible oil and soya food
businesses in India. They are the first exporter of Soya Bean Meal from India.
They are the also leading manufacturer of Textured Soya Protein and
Vanaspati.
At Present, Subject has only one subsidiary namely Ruchi worldwide Limited The
company plants are located at Indore, Shajapur, Narsinghpur and Mandla in
Madhya Pradesh, Mangalore in Karnataka, Raigad and Nagpur in Maharashtra,
Haldia in West Bengal, Gandhidham in Gujarat, Thiruvallur in Tamilnadu,
Sriganganagar and Bundi in Rajasthan.
Ruchi, a pioneer Soya Processor Group started operations in the year 1972-73.
In the year 1986 the company became a Public Limited company. In March 1991,
the Production in Vanaspati Plant, Edible Soya flour and Oil Commenced with
capacity of 7,500 MT, 60,000 MT, 12,000 MT respectively.
During the year1991-92, the Company increased their existing capacity of
Textured Soya Protein by 12,000 MT to 24,000 MT and Vanaspati by 7,500 MT to
15,000 MT. Also they commenced the production in their Lecithin Plant during
the year.
During the year 1992-93, the company increased the production capacity of
Vanaspati from 15,000 MT to 30,000 MT. Also they installed Soyabean Extraction
with a capacity of 60,000 MT. In the year 1994-95, the production capacity of
oil has been increased from 30,000 tpa to 55,000 tpa and Soyabean Extraction
from 60,000 tpa to 1,85,000 tpa. In the year 1995-96, they further increased
the production capacity of Soya bean extraction, oils and Vanaspati by 2,47,000
tpa, 53,000 tpa, and 22,500 tpa respectively.
In the year 1997-98, the company launched two new brands namely SUNRICH for
Sunflower Refined Edible Oil and RUCHI GOLD for Refined Edible Palmolein Oil.
In the year 1998-99, the Company launched two products namely Ruchi Sona and
Ruchi Star.
In the year 1999-2000, the company has invested in equity shares of Ruchi
Health Foods Limited which has become wholly owned subsidiary of the company.
Also in the same year, Imperial Exports Limited has ceased to be a subsidiary
of the company.
In the same year, one of the subsidiary company has set up a Refinery unit near
Chennai which has commenced commercial production in the month of January,
2000. The Company has also increased the capacity of Vanaspati by 70000 MT
during this period.
During the Year 2001-2002, the Company has set up a composite unit comprising
of Refinery, Vanaspati and Texturised Vegetable Protein Plants at Mangalore.
The production capacity of Texturised Soya proteins has been increased by
30,000 MT to 54,000 MT and Oil by 189000 MT to 297000 MT.
During the Year 2002-2003 the capacity of Soyabean Extraction, Oil and
Vanaspati has increased to 555,000, 687,000 and 172,500 respectively. During
the year 2003-2004 the Company set up a composite Unit Comprising of edible oil
refinery and Vanaspati Plant at Raigad in Maharashtra. The Company acquired a
Solvent Extraction Plant at Sriganganagar in Rajasthan through its Wholly owned
Subsidiary Aneja Solvex Limited during the year.
In the same year, the company has launched two new product in the bakery
segment namely Avanti and Bakefat. Also they launched Nutrela Proflo defatted
soya flour, which offers the consumers another option to include soya in their
diet.
During the year 2004-2005, the company has set up a solvent extraction plant
and refinery unit at Nagpur in Maharashtra. The Company has also commissioned
wind turbine of 1.2 MW capacity at Nagda Hills, Dewas in Madhyapradesh for
generation of Power for captive use. The Capacity of Textured Soya Proteins,
Seed Extraction, Oils, were also increased to 84,000 MT, 10,47,000 MT and
11,01,000 MT respectively.
In the year 2005-06, General Foods Limited, Ruchi Health Foods Limited,
Ruchi Credit Corporation Limited, Aneja Solvex Limited, Param Industries
Limited and Ruchi Private Limited have been amalgamated with Subject. The SVF
business of Anik Industries Limited formerly known as Madhya Pradesh Glychem
Industries Limited has also been acquired by the Company on slump sale
basis.
In the same year, the company has increased their production capacity for
Textured Soya Proteins by 30000 MT to 114000 MT, Seed Extraction by 847224 MT
to 1894224 MT, Oil by 951000 MT to 2052000 MT and for Vanaspati by 237000 MT to
469500 MT. In the year 2006-07, they furher increased the capacity for Textured
Soya Proteins by 26000 MT to 140000 MT, Seed Extraction by 233700 MT to 2127924
MT, Oil by 160000 MT to 221200 MT and for Vanaspati 237000 MT to 469500
MT.
OPERATIONS:
During the year, the sales and other income of the Company have increased to
Rs.110750.100 Millions from Rs.86482.900 Millions in the previous year,
recording a growth of over 28%. The Company's Profit before depreciation and
tax increased to Rs.3284.700 Millions from Rs.2220.500 Millions in the previous
year reflecting a healthy growth of approximately 48%.
Profit after tax
also increased to Rs.1592.300 Millions against that of Rs.1007.000 Millions in
previous year, registering a growth of over 58%.
EXPORTS:
The Company registered a growth of over 54% in exports during the financial
year as compared to that of previous year. It exported products of Rs.13719.300
Millions during the year as compared to Rs.8873.000 Millions in the previous
year.
FUTURE
OUTLOOK:
The Company is
focused on backward integration, specifically in Palm Oil Segment. The Company
has signed Memorandum of Understandings with the Governments of Andhra Pradesh,
Gujarat, Mizoram, Orissa and Tamil Nadu for palm cultivation in high potential
areas under contract farming as per the States' policies. The Company is also
exploring palm plantation business opportunities outside India. This will help
the Company in improving supply chain, customer relationship management and
massive growth on sustainable basis.
Keeping in view
the growing soya crop in India, the Company is in the process of setting
up/expanding production facilities at the new locations / existing processing
plants to cater to the growing demand and sustain leadership position. As a
part of our strategy to enlarge our presence in the growing domestic edible oil
segment, the Company has begun to increase capacities of production facilities
in mustard oil segment.
The
above-mentioned initiatives will enable the Company to cater to substantial
part of edible oil consumption across various segments in India with a clear
focus on the growing branded segment in future. The Company is also exploring
avenues in bio-fuel industry and has been allotted lease-hold land in the State
of Madhya Pradesh.
MANAGEMENT DISCUSSION AND ANALYSIS:
INDUSTRY STRUCTURE
and DEVELOPMENT:
The primary
business of the Company is Oil-Seed Extraction and Refining of Oil for Edible
use. The Company also produces oil meal, food products from soya and value
added products from downstream processing of commodities.
The size of Indian
edible oil seed industry is estimated around Rs.850000 Millions (approx. USD 20
billion). The domestic edible oil consumption has been steadily growing and is
estimated to be over 12.5 million MT in the current year with Palm and soya
oil, in which the Company has a dominant presence, contributing over 50%. In
view of the demand-supply gap, about 35 to 40% of the domestic edible oil
consumption is met by imports, with Palm and Soya accounting for over 95% of
the imported volume. The oil meal is essentially consumed as poultry, fish and
cattle feed, and a substantial part of soya meal is exported to the Asian
region.
Commodity markets
in general, and agricultural commodities in particular, have seen an
unprecedented price rise during the last fifteen months on account of various
factors, including output constraints due to weather conditions and
acceleration in consumption. The ever highest crude oil prices gave rise to
demand for alternative and environmentally friendly bio-fuel, which caused
diversion of arable land to produce products suitable for bio-fuel. The
availability of land continued to be constrained, the aforesaid diversion of
land use caused rise in prices of these commodities globally.
The soya crop of
2007 of 9 million M.T. was the highest ever in India. The farming community
reaped benefits of both, larger quantity and higher seed prices. The processing
industry too enjoyed benefits on account of increased availability of soya
seeds and improved plant capacity utilization.
The vast
availability of land in the country (more particularly waste lands / forest
lands) and the focus of the Government on, (i) improving rural income, (ii)
providing greater development opportunities in rural areas, (iii) generation of
employment for larger population living in rural areas, (iv) meeting domestic
energy security, (v) addressing issues arising from global warming, and (vi)
laying out conducive Government policies for private sector investment in
promoting non-edible oil-seeds such as Jatropha, would provide the right kind
of fillip to the ongoing efforts to secure the domestic edible-oil and bio-fuel
in future. There is an opportunity for large players having solvent extraction
plants of scale that have strong relationship with farming community, to forge
ahead and reap the benefits.
INDUSTRY
OUTLOOK:
The Indian edible
oil sector is, by and large, a price conscious and price sensitive market, and
a substantial part of consumption takes place at the bottom end. The propensity
to consume also changes with the changes in prices of edible oil and
availability of disposable income. With rising incomes, food remains an
important item of expenditure to warrant large share of incremental spending.
Edible oil is and will remain an important constituent of dietary plan despite
varied eating habits and varied methods of cooking across the country. Also,
the growth of edible oil in packed form has far exceeded the industry wide
growth rate. In the foreseeable future, it is believed that the overall quantum
of edible oil consumption will continue to grow in the packed segment with the
pattern of consumption shifting from bulk to packed form due to factors,
amongst others, rising incomes coupled with changes in household demographics,
improving health consciousness, growing organized retail improving reach of the
products across the country.
Demand for protein
rich meal in Asia is growing multi-fold in recent past. India is better placed
in the Asian region from the point of logistics and customer servicing. Also,
the Indian soya meal being processed from Non Genetically Modified soya seed,
gives a fair price advantage to the products in the international
markets.
Buoyed with the gains
reaped in the recent past by the farming community, and prevailing high average
prices of soya-seed and products derived there from, the thrust on increasing
the acreage under soya continues. The soya crop size for the current year is
expected to be higher than the highest ever crop recorded in the previous
season. The current indications augur well for the solvent extraction industry
in the current year from crop availability standpoint.
The whole edible oil industry is in consolidation phase. Enterprises having
strong business capabilities, efficiencies in logistics, operations at
strategic locations and strong consumer focus that have undertaken expansion of
their market share through organic and inorganic route coupled with
introduction of new and innovative products-including presence through branded
products, will enjoy the gains.
BUSINESS
STRATEGY:
To meet the
challenges amidst growing industry size and the need to consolidate, the
Company has initiated several measures on proactive basis, which will allow the
Company to build-on its current presence and market share in the edible oil and
soya segment. The Company will thus also be poised to undertake the business
opportunities arising from leadership position in the industry. The Company is
making inroads at new locations within the country which are otherwise
strategic to industry and its focus on driving cost efficiencies by use of
latest and modern technology confirming to global standards will provide an
edge to itself and its business partners and place it at a better pedestal as
compared to its peers. The Company will continue to strengthen itself in areas
of sourcing raw materials from points of origin, reducing inefficiencies in
supply chain and logistics, capabilities to process at multiple locations,
improvements in product quality, and increased sales of branded products in
retail stores.
The consumption of
edible oils from sources other than soya seed, such as Mustard, Cottonseed and
Rice bran has been growing. The Company sees opportunity to broad base its
presence in the domestic market for Mustard oil, and options to acquire
existing capacities and / or expand its own capacity are being explored. The
Company proposes to leverage its existing distribution network and also expand
the same in new areas to offer value added products so as to achieve margin
improvement and make its products reach the very discerning.
The Company also
sees an opportunity to achieve backward integration of its business in overseas
markets and thus give a fillip to the momentum. The direct benefit of the above
endeavors, besides strengthening the existing attributes of its business in the
domestic market, will be to de-risk the operations from geographical and
product risks, and adds long-term sustainable value to the business of the
Company.
The food division
of the Company is evaluating opportunities to expand its product portfolio and
will be introducing various new products for the health conscious under the
'Nutrela' brand, which not only connotes health and nutrition but it has
already carved a niche for itself as a market leader in soya foods. The recent
launch of a protein fortified drink 'N'rich' by the Company has met with an
encouraging response and new products are proposed to be rolled out with focus
on the growing 'health and wellness' segment. The Company may extend its
available suite of brands by acquiring the same for reasons, amongst others,
including better brand/product positioning, strategic fit with existing brands,
value enhancement, etc.
The Company is
strengthening the existing internal business processes, more particularly in
the areas of Marketing, Information technology, Human resource systems and Risk
management, and is thus gearing-up to meet the challenges ahead.
The Company is of
the view that strategic initiatives in the above described areas will prove
beneficial for the Company and the stakeholders in the long term.
SEGMENT
PERFORMANCE:
The various
segments identified by the Company are as under:
Extractions - All types of Seed extractions, Textured soya protein, Soya flour
Vanaspati and Specified Fat - Vanaspati
Oils - Crude oils, Refined oils
Others - Gram, Wheat, Rice, Maize, Shorgum, Seeds, Coffee, Marine Products, Tuar and Soaps.
The segment wise performance in detail is given in Schedule 20 to the audited accounts of the Company as available in this Annual Report.
In an earlier
year, the High Court of judicature at Bombay and Delhi had approved three
schemes under Sections 391 to 394 of the Companies Act, 1956 providing for (a)
Amalgamation of General Foods Limited, Ruchi Credit Corporation Limited, Param
Industries Limited, Ruchi Health Foods Limited, Aneja Solvex Limited and Ruchi
Private Limited(after de-merger of its leasing business)(hereinafter referred
to as the Transferor companies) with the Company (b) Acquisition of soya
processing, vegetables oils and fats and food businesses of Madhya Pradesh
Glychem Industries Limited by the Company by way of slump sale; and (c) Re-organisation
of the assets of the Company.
Two of the
Transferor companies were holding in aggregate 7,42,092 equity shares of the
Company. One of the transferor Company was holding 2,80,000 equity shares in
another transferor Company. Further, the Company was holding 76,71,426 equity
shares in two of the Transferor companies. In terms of the Schemes of
Amalgamation / Arrangement sanctioned by the Hon’ble High Courts of Bombay and
Delhi, 7,83,931 equity shares of the Company have been issued to a Trust in lieu
of the shares of the Transferor companies held by the Company / Transferor
Companies. In terms of the Schemes, all the above shares aggregating to
15,26,023 are to be held by the Trust for the benefit of the Company or its
successors. These shares have been shown under the head ‘investments’ and
included in Schedule 6 relating to investments at cost in accordance with the
accounting policy of the Company. The dividend received by the Trust in respect
of these shares is included under the head ‘dividend’ under ‘Other income’ .
Sundry creditors
include bills payable for purchase of material Rs.5039.754 Millions (Previous
year Rs.2320.368 Millions).
Amount due to
Micro, Small and Medium Enterprises (to the extent identified by the Company on
the basis of information available) along with interest payable under the
Interest on Delayed Payments to Micro, Small and Medium Enterprises Development
Act, 2006 is Rs.7.342 Millions (Previous year payable to Small Scale Industries
Rs.17.252 Millions).
Sundry Creditors
includes amount due to Micro, Small and Medium Enterprises (to the extent
identified by the Company on the basis of information available) which is
outstanding for more than 30 days as at 31st March, 2008 as under :
|
|
31.03.2008 (Rs. In Millions) |
31.03.2007 (Rs. in Millions) |
|
Pragati Graphics Private Limited |
0.001 |
0.130 |
|
Aditya Air Products Private Limited |
0.015 |
0.004 |
|
Kanchratan Packaging Private Limited |
0.008 |
0.360 |
|
Prime Packaging |
0.009 |
0.021 |
|
Worth Peripherals Private Limited |
0.053 |
1.177 |
|
Kakwani Packaging Industries |
0.001 |
0.344 |
|
Royal Kniting Promoters |
0.019 |
--- |
|
Gensis Automation Private Limited |
0.016 |
--- |
|
Vyankatesh Plastics and Packagings Private Limited |
0.026 |
--- |
|
Universal Refrectories and Allied Cons. Company |
0.005 |
--- |
|
Films and Printers (India) Private Limited |
0.003 |
--- |
|
Fox Control Private Limited |
0.003 |
--- |
|
Shivam Poly Plast Private Limited |
0.027 |
--- |
|
Supersack |
0.008 |
--- |
(a) Segment
information required to be disclosed in accordance with Accounting Standard 17
(AS-17) relating to
Segment Reporting
is given in below.
(b) (i) The
Company has disclosed business segment as the primary segment. Segments have been
identified taking into account the type of products, the differing risks and
returns and the internal reporting system.
The various
segments identified by the Company comprise as under:
Extractions — All
types of seed extractions, textured soya protein, soya flour.
Vanaspati —
Vanaspati
Oils — Crude oils,
refined oils
Others — Gram,
Wheat, Rice, Maize, Seeds, Coffee, Marine Products, Tuar, Peas, Barley, Fruit
juices,
Fresh fruits
bunches, Seedlings, Plant and Machinery (Equipment) and Soap.
By products
related to each segment have been included under the respective segment.
CONTINGENT
LIABILITY NOT PROVIDED FOR
|
|
31.03.2008 Rs. in Millions |
|
(a)Claims against the Company not
acknowledged as debts. |
10.500 |
|
(b) Outstanding bank guarantees. |
245.349 |
|
(c) Outstanding corporate guarantees given
on behalf of subsidiary |
1234.051 |
|
(d) Income tax/ Sales tax/ Excise/ Octroi /Custom duty/ ESIC /
Electricity Duty / demands disputed. |
1308.998 |
|
(e) Bills discounted |
2509.019 |
|
(f) Estimated amount of contracts remaining to be executed on capital
account. (Net of advances) |
553.808 |
|
(g) Custom duty liability which may arise if obligation for exports is
not fulfilled against import of plant and machinery. |
--- |
(h) In the
preceding year, vide agreements dated 24th November, 2006 and 18th January,
2007, the Company has acquired land, buildings and plant and machinery at Baran
(Rajasthan) and Guna (M.P.) respectively. The assets acquired are subject to
charges created by the seller in favour of one of their consortium bankers. The
said consortium banker has not accepted the Scheme of Arrangement approved in
the case of seller by the Hon’ble Madhya Pradesh High Court and has filed a
Special Leave Petition before the Hon’ble Supreme Court, which is pending. The
seller has set aside funds by way of a fixed deposit in respect of amount due
to the said Consortium bank. Pending the disposal of the Special Leave Petition
by the Supreme Court, the registration of the said land in
favour of the
Company is pending. The additional liability, if any, that may arise on account
of the above, however, cannot be ascertained at this stage.
FIXED ASSETS:
- Free Hold
Land
- Lease Hold
Land
- Buildings
- Plant and
Machinery
- Furniture and
Fixtures
- Vehicles
- Office
Equipment
- Software
- Trade Marks
- Capital Work
In Progress
Notes:
1. Buildings
include Rs.0.002 Million (Previous year Rs.0.002 Million) being cost of shares in
Co-operative Societies. Title deeds in respect of shares amounting to Rs.500/-
are in the process of transfer.
2.
Execution/registration of lease deeds in respect of certain lands acquired on
lease amounting to Rs.14.765 Millions (Previous year Rs.2.660 Millions) are
pending.
3. Lease hold land
includes 30 acres of land taken on lease from The Karnataka Industrial Area
Development Board (KIADB) for which the primary lease period of 6 years of land
has expired. The same will be converted to a sale subject to compliance with
the terms of allotment.
WEBSITE DETAILS:
The 20-year old
Subject is the flagship company of Ruchi Group of Industries. It’s recent
merger with sister concerns ( Aneja Solvex Limited, General Foods Limited,
Ruchi Credit Corporation, Ruchi Health Foods Limited, Param Ind. Limited, Ruchi
Private Limited and soya businesses of MP Glychem) has catapulted it among the
top five FMCG players in the country, with a turnover of 86250 Millions .
This merger illustrates the strength that is to be found in increased
transparency, firm market position and better control of systems.
Besides being a leading manufacturer of high quality edible oils, vanaspati,
bakery fats and soya foods, Subjectis also the highest exporter of soya meal
and lecithin from India. Nutrela (soya chunks, granules, soya flour) is the
largest selling soya foods brand in the country today.
Subject is the undisputed leader in the branded edible oil category as
well with brands like Nutrela Soyumm (Soyabean Oil), Ruchi Gold (Palmolein
Oil), Sunrich (Sunflower Oil) and Mandap (Mustard Oil). New healthy oil
variants like Nutrela Vitamin Sunflower oil and Nutrela Groundnut oil make
Nutrela a trusted option in edible oils as well.
Superior procurement and trading skills, continuous innovation, an endeavor to
meet consumer needs and stringent quality control standards have enabled Ruchi
to emerge as a highly-respected and admired Indian company. The scrip is listed
and the BSE code is 500368, while the NSE code is RUCHISOYA.
THE SOYA REVOLUTION
In early 1960s, when Mr. Mahadev Shahra went about convincing farmers in M.P.,
about the potential of Soya, he would not have imagined that he will be
instrumental in bringing up a small green revolution in the State, by
introducing and encouraging Soya bean cultivation on a commercial scale. The
family was in the business of commodities trading and subsequently, they
entered the business of ginning and oil milling. The family's efforts, along
with that of the others, resulted in Soya revolution in M.P. Today M.P. is
considered as Soya bowl of the country, and contributes to 70% of its
production. Despite all odds, Subject is now the largest player in the country
in edible oils, Soya foods and processed foods categories. This is largely due
to its strict quality commitment and continuous innovation to keep with the
times. Also, Subject has evolved from being a large manufacturing firm to a
respected brand, keeping in line with the FMCG players. Its Nutrela and Ruchi
Gold brands have captured leading positions in the Soya foods and edible oils
categories respectively. Subject has also ventured into other businesses like
bakery specialties, where it foresees a big potential for growth. With Ruchi's
innate manufacturing and logistics advantages, and its foray into the branded
sector, one only sees immense potential for growth in the future.
The extensive distribution network, built over the years, is a major strength for
Ruchi. Catering nationally through 3 Lac retail stores, with 38 Company depots,
36 Super Stockiest and a sales staff of over 200, Ruchi has attempted to
penetrate depth wise, along with opening new markets. With its emphasis on
providing value goods to consumers, Ruchi's dual strategy of popular and
premium range works well. Ruchi Gold is their value for money offering but with
no compromise in quality. This positioning helps generate large sales volumes
for the products. Their Nutrela series is more premium, and offers healthy
options in soya foods and edible oils. This dual strategy is based on their
cultivated understanding of the Indian consumer psyche.
They also have a firm footing in modern retail due to their undivided focus on
new channels of distribution. With their alliances with big players like
Pantaloon and visible presence in all leading national and regional
supermarkets, they hope to grow their consumer base and product portfolio.
Subject is the Flagship Company of Ruchi Group, a pioneer Soya Processor group,
which started operating back in 1972-73 and is the first exporter of Soyabean
Meal from India.
Ruchi is one of the largest crushers of Soya beans in India, and has installed
a crushing capacity of 4150 mts. per day in Indore, which is the largest
crushing capacity at a single location. On a yearly basis, Ruchi crushes 25% of
the soy crop in India. This has lead to the export of 30% of India's Soya bran
meal on a yearly basis. Soya meal is the crushed seed after the oil has been
extracted. It has a big export market, and is used to feed cattle/chicken. It
also accounts to the export of value added products like the edible defatted
soy flour, full fatted edible flour, Soya lecithin, Soya granules and Soya chunks.
All the products are made from non GMO beans. The countries of exports include
Indonesia, Vietnam, South Korea, Thailand, Philippines, Japan, Taiwan and all
the Gulf countries, apart from those in the Indian subcontinent.
Over the years, they have grown to become a multi-million US Dollar company.
Two of their strongest brands, Nutrela and Ruchi Gold are category leaders.
Nutrela, the
biggest Soya foods brand in the country, enjoys more than 50% of the market
share. It has enjoyed the trust of consumers for last 20 years now, and
continues to expand its range to cater to varying needs of its consumers. It
has become generic to the soya category. They have effortlessly strived to
educate people about health and goodness of Soya as their firm commitment is to
provide healthy solutions to the consumers.
Their edible oils
brands like Ruchi Gold and Nutrela Soyumm enjoy mass acceptability and acclaim
from the people. Ruchi Gold is the leader in the palmoline category. As a part of
packaged goods thrust, ‘Ruchi Gold' was introduced about 6 years back in
Chennai. The market share in southern states ranges from 50 to 85%. The brand
has grown from35% to 40% CAGR since its introduction. Today, it enjoys the
number one position in branded palmoline oil category.
Nutrela Soyumm
ranks in the top three soya oils category, and continues to strive to reach the
top position. Both brands symbolize health and quality.
They are also leaders in the vanaspati
category with brands like Ruchi No 1 and have also ventured into bakery and
special fats category.
RUCHI’S REFINING AND CRUSHING STRENGTHS
They are one of the few edible oil companies in the country that has a balanced
mix of inland and port based refineries. This enables them to optimize
production depending upon the availability of cheaper alternatives – local
oilseeds or imported crude oil. Moreover, multi- location refineries have
reduced road travel costs leading to significant transportation cost advantage.
They have fifteen refineries and ten inland crushing plants.
AWARDS
"Subject has been the reciepient of many prestigious awards, from leading
organisations like Dun and Bradstreet, Globoil and many more"
Subject Q1 (2008-09) Net sales up by
20% at Rs.27964.600 Millions
PAT up 55 %
at Rs. 426.200 Millions
Highlights of Q1 09
- Net Sales at
Rs.27964.600 Millions, up by 20%
- Net Profit at
Rs.426.200 Millions up by 55%
- Branded Sales
at Rs.9788.500 Millions, up by 42%
- Export Sales at Rs.3003.100 Millions, up by 124%
Subject, Indore 30th July, 2008: The Board of Subject met on 30th July, 2008
to consider and approve the unaudited financial results for the quarter ended
30-6-2008.As compared to the corresponding period of the previous year, Net
sales rose by 20% from Rs.23333.600 Millions to Rs.27964.600 Millions EBIDTA
grew by 39% from Rs.794.600 Millions to Rs.1103.900 Millions. Net profit
for the quarter increased by 55 % from Rs.275.900 Millions to Rs.426.200
Millions.
Branded sales for
the same quarter recorded a rise of 42% to Rs.9788.500 Millions as against
Rs.6902.900 Millions posted in the same period of last fiscal. The brands which
contributed to a sharp spurt in sales include Nutrela, Mahakosh, Ruchi Gold,
Soyumm and Ruchi No.1.
The Company has
intensified its exports activities and gained higher share in the international
markets. The export turnover of the Company for the quarter ended 30th June,
2008 has gone up by 124% to Rs.3003.200 Millions as against Rs.1341.300
Millions for the corresponding quarter in the previous year.
Commenting on the
performance, Mr. Dinesh Shahra, Manging
Director, Subject said “They are to begin their first quarter of the
current financial year with an exemplary performance. The quality of earnings
has significantly improved due to superior growth in branded sales, better
sales mix, higher sales realization of their value added products, greater
volumes of their soya crushing operations and robust growth in Export sales.
With their well balanced and sustainable business model, strong focus in retail
segment and a competent team of qualified professionals, they are confident
that they will continue to aim at delivering superior results in future.”
The branded
products of the Company are also being marketed through various modern retails
outlets, including, Big Bazaar, Reliance Fresh, Spensors, Subhiksha, Vishal
Megamart, etc.
Recently, the RSIL
forayed into the health beverages segment with the launch of its protein drink
– N’rich. N’rich is a tasty protein drink rich in vitamins, minerals and
antioxidants. It is available in three flavors, Apple Kiwi, Apple Peach and
Multifruit.
The Company is in
the process of expanding its operations in Mustard Oil Segment, which will add
to the margins of the Company in future.
About Subject
Subject is one of
the largest agri companies in India and a market leader in edible oils and
Soya foods industry. Established in 1986, Subject, the flagship company of the
Ruchi Group has an annual turnover of more than Rs110000 Millions (over USD
2.75 bn).
In terms of size
by value turnover, RSIL is the fifth largest FMCG Co. in India.
Its renowned brands, Nutrela and Ruchi, are synonymous
with cooking oils and healthy foods. Some of the other edible oil
brands like Ruchi Gold (palm oil), Mahakosh and Sunrich (sunflower
oil) are market leaders in their respective categories.
Subject has been
honoured by Dun and Bradstreet, at American Express Corporate Awards, 2006 and
2007, as the No. 1 food processing company in India. Subject was also
awarded the ‘National Energy Conservation Award’ in the edible oils sector for
large/ medium scale – category for 2007.
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.48.72 |
|
UK Pound |
1 |
Rs.82.17 |
|
Euro |
1 |
Rs.65.90 |
SCORE & RATING
EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
77 |
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. |
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 |
|