MIRA
INFORM REPORT
|
Report Date : |
21.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
BAJAJ HINDUSTHAN LIMITED |
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Registered Office : |
Bajaj Bhavan, 2nd Floor, Jamnalal Bajaj Marg, 226, Nariman Point,
Mumbai - 400021, |
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Country : |
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Financials (as on) : |
30.09.2009 |
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Date of Incorporation : |
24.11.1931 |
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Com. Reg. No.: |
001797 |
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CIN No.: [Company
Identification No.] |
L15420MH1931PLC001797 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB11307C |
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PAN No.: [Permanent
Account No.] |
AAACB4351J |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
Stock Exchange |
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Line of Business : |
Manufacturer of Sugar and Ethanol. |
RATING & COMMENTS
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MIRA’s Rating : |
A (67) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 91000000 |
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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 and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Rajan Shah |
|
Designation : |
Senior General Finance Manager |
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Contact No.: |
91-22-22049056 |
|
Date : |
18.02.2011 |
LOCATIONS
|
Registered Office : |
Bajaj Bhavan, 2nd Floor, Jamnalal Bajaj Marg, 226, Nariman
Point, Mumbai - 400021, |
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Tel. No.: |
91-22-22023626 |
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Fax No.: |
91-22-22022238 |
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E-Mail : |
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Website : |
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Corporate Office : |
Bajaj Bhawan, B-10, Sector 3, Jamnalal Bajaj Marg, Noida - 201 301,
NCR |
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Tel. No.: |
91-120-2543939 / 40, 2543942-48, 4045555 |
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Fax No.: |
91-120-2543949 |
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Regional Offices : |
B-2/355, Vishal Khand – 2, Gomti Nagar, |
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Tel. No.: |
91-522-2303712 / 2396529 |
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Fax No.: |
91-522-2396489 |
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Factory : |
Lakhimpur Kheri
District Golagokarannath Unit Tel: 91-5876-233754 / 55 / 233758 / 233403 Fax: 91-5876-233401 Palia Kalan Unit Tel: 91-5871-233410 / 233346 / 49 Fax: 91-5871-233664 Khambharkhera Unit Tel: 91-5872-231626 Fax: 91-5872-252752 Pilibhit District Barkhera Unit Tel: 91-5881-228811/ 13/ 14/ 15 Fax: 91-5881-228812 Meerut District – Kinauni Unit Tel: 91-121-2418829 / 30 Fax: 91-121-2418828 Gangnauli Unit Tel: 91-132-2729890/ 91/ 3097878 Fax: 91-132-2766304 Muzaffarnagar
District Thanabhawan Unit Tel: 91-1398-233607 / 233457 Bhaisana Unit Tel: 91-1392-235068 / 235069 / 235070 Bijnore District
Bilai Unit Tel: 91-134-2275650 / 2230163 Deoria District Pratappur Unit Tel: 91-5566-2850155 / 05/ 2850023/ 27 |
DIRECTORS
AS ON 30.09.2009
|
Name : |
Mr. Shishir Bajaj |
|
Designation : |
Chairman and Managing Director (Promoter) |
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Name : |
Mr. Kushagra Bajaj |
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Designation : |
Joint Managing Director (Promoter) |
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Name : |
Mr. D. S. Mehta |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Niraj Bajaj (upto December 31, 2008) |
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Designation : |
Non-Executive Director (Promoter) |
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Name : |
Mr. M. L. Apte |
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Designation : |
Non-Executive Director (Independent) |
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Name : |
Mr. R. V. Ruia |
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Designation : |
Non-Executive Director (Independent) |
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Name : |
Mr. Alok Krishna Agarwal |
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Designation : |
Non-Executive Director (Independent) |
KEY EXECUTIVES
|
Name : |
Mr. Pradeep Parakh |
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Designation : |
President and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 05.01.2011
|
Category
of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
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7,360,896 |
3.25 |
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13,118,511 |
5.79 |
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59,489,958 |
26.24 |
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59,489,958 |
26.24 |
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79,969,365 |
35.27 |
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Total shareholding of Promoter and Promoter Group (A) |
79,969,365 |
35.27 |
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(B) Public Shareholding |
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|
|
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|
|
|
1,137,370 |
0.50 |
|
|
792,445 |
0.35 |
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|
1,500 |
- |
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14,642,340 |
6.46 |
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|
31,986,418 |
14.11 |
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48,560,073 |
21.42 |
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28,177,685 |
12.43 |
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25,249,882 |
11.14 |
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6,928,432 |
3.06 |
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37,871,074 |
16.70 |
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|
33,384,951 |
14.72 |
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|
28,480 |
0.01 |
|
|
1,332,780 |
0.59 |
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|
1,371,254 |
0.60 |
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|
1,753,498 |
0.77 |
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|
111 |
- |
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|
98,227,073 |
43.32 |
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Total Public shareholding (B) |
146,787,146 |
64.73 |
|
Total (A)+(B) |
226,756,511 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
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Line of Business : |
Manufacturer of Sugar and Ethanol. |
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Products : |
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PRODUCTION STATUS
PRODUCTION STATUS (As on 30.09.2009)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Sugar |
M. Tonnes |
-- |
96,000 |
493,268 |
|
Alcohol |
Kilo Litres |
187,000 |
640# |
32,070 |
|
Molasses* |
M.Tonnes |
-- |
-- |
267,241 |
|
Power |
M.W. |
-- |
274 |
276,300 |
NOTE
* Sales include inter unit transfer 1,50,240 MT (Previous year 4,55,188
MT) at nil value. Closing Stock include stock at Distillery units 15,308 MT
(Previous year 1,042 MT) .
# installed capacity of alcohol includes Distillery having 60 KL
capacity given on lease w.e.f. 30th May, 2006.
GENERAL INFORMATION
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Bankers : |
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Facilities : |
NOTES 1.
Non-Convertible Debentures amounting to Rs.150 Million (Series 30 of 2007-08)
is secured / to be secured by way of first pari passu charge on fixed assets of
the Company. Documentation in this regard is under finalisation. 2. Working
Capital / Short Term Loans facilities from Banks are secured, on first pari
passu charge basis, by hypothecation of inventories, book debts, other
receivables and current assets and further secured / to be secured, on a
third pari passu charge basis, by hypothecation of the whole of movable fixed
assets and properties and by mortgage on the whole of immovable fixed assets
and properties of the Company. Documentation for mortgage in respect of
certain loans is under finalisation. 3. Term Loans
from Banks (except ECB of Yen 9,191.20 Million and Loans under "Scheme
for Extending Financial Assistance to Sugar Undertaking, 2007" for
Rs.1967.20 Million) are secured, on first pari passu charge basis, by
hypothecation of the whole of the present and future movable fixed assets and
properties including plant and machinery, tools and accessories of the
Company and also secured/ to be secured, on first pari passu charge basis, by
mortgage (by deposit of title deeds) on the whole of immovable fixed assets
and properties and further secured, on second pari passu charge basis, by
hypothecation of all the present and future current assets of the Company
including inventories, book debts and other receivables. Documentation for
mortgage in respect of certain term loans /certain properties is under
finalisation. 4. The ECB Loan
of Yen 9,191.20 Million is secured, on first pari passu charge basis, by
hypothecation of the whole of the present and future movable fixed assets and
properties including plant and machinery, tools and accessories of the
Company and also secured/to be secured, on first pari passu charge basis, by
mortgage (by deposit of title deeds) on the whole of immovable fixed assets
and properties. Documentation for mortgage in respect of certain properties
is under finalisation. 5. Loans under
"Scheme for Extending Financial Assistance to Sugar Undertaking,
2007" amounting to Rs.1967.20 Million included in Loans and Advances
from Banks, are secured / to be secured on pari passu residual charge basis,
by hypothecation of whole of movable fixed assets and properties and by
mortgage on the Sugar Undertakings of the Company. Documentation for mortgage
in respect of certain loans/certain properties is under finalisation. 6. The Sugar Development Fund loan from Government of India amounting
to Rs.563.47 Million shown under Other Loans and Advances is secured/to be
secured, on exclusive second charge basis, by hypothecation of the whole of
movable fixed assets and properties and by mortgage on the whole of immovable
fixed assets and properties of the concerned sugar unit of the Company. The
Company has also created security in favour of Government of India for
certain other SDF loans aggregating to Rs.537.23 Million, that are yet to be
disbursed to the Company, on exclusive second charge basis, by hypothecation
of the entire movable fixed assets and properties of the respective sugar
units for which the said SDF loans have been sanctioned.
[Short Term Debentures of Rs.3,050 Million (Rs.63,430 Million) issued
and redeemed during the year] |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Dalal and Shah Chartered Accountants |
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Address : |
Mumbai, |
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Subsidiaries : |
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Associates and Joint Ventures : |
Bajaj E-biz Private Limited |
CAPITAL STRUCTURE
AS ON 30.09.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300,000,000 |
Equity Share |
Rs.1/- Each |
Rs.300.000 millions |
|
500,000,000 |
Unclassified Shares |
Rs.1/- Each |
Rs.500.000 millions |
|
|
Total |
|
Rs.800.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
176,857,111 |
Equity Share |
Rs.1/- Each |
Rs.176.860 millions
|
NOTE
Of the above shares 53,100,000 Equity Shares were allotted as fully paid
Bonus Shares by way of Capitalisation of Reserves.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2009 |
30.09.2008 |
30.09.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
176.860 |
141.410 |
141.410 |
|
|
2] Equity Warrants |
189.010 |
0.000 |
0.000 |
|
|
3] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
22570.750 |
13309.630 |
14201.900 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
22936.620 |
13451.040 |
14343.310 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
19567.310 |
28080.830 |
20358.800 |
|
|
2] Unsecured Loans |
11184.200 |
6009.900 |
8550.100 |
|
|
TOTAL BORROWING |
30751.510 |
34090.730 |
28908.900 |
|
|
DEFERRED TAX LIABILITIES |
1080.440 |
589.370 |
1208.770 |
|
|
|
|
|
|
|
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TOTAL |
54768.570 |
48131.140 |
44460.980 |
|
|
|
|
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
26324.990 |
24788.220 |
22206.390 |
|
|
Capital work-in-progress |
1312.790 |
1386.930 |
5629.670 |
|
|
|
|
|
|
|
|
INVESTMENT |
5491.060 |
4882.560 |
4374.670 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
8004.520
|
6372.370
|
3948.270 |
|
|
Sundry Debtors |
285.650
|
422.990
|
1099.970 |
|
|
Cash & Bank Balances |
1123.550
|
397.270
|
1089.530 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
20930.490
|
18062.130
|
14952.760 |
|
Total
Current Assets |
30344.210
|
25254.760 |
21090.530 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6577.450
|
5630.500 |
6022.670 |
|
|
Other Current Liabilities |
252.830
|
474.420
|
222.680 |
|
|
Provisions |
1874.200
|
2076.410
|
2594.930 |
|
Total
Current Liabilities |
8704.480
|
8181.330 |
8840.280 |
|
|
Net Current Assets |
21639.730
|
17073.430
|
12250.250 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
54768.570 |
48131.140 |
44460.980 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2009 |
30.09.2008 |
30.09.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
15837.370 |
17562.810 |
17130.110 |
|
|
|
Other Income |
2311.570 |
465.910 |
306.500 |
|
|
|
TOTAL (A) |
18148.940 |
18028.720 |
17436.610 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
8167.600 |
13903.310 |
12834.170 |
|
|
|
Manpower Cost |
1208.320 |
1162.860 |
1125.170 |
|
|
|
Other Expenditure |
1382.820 |
3024.010 |
2316.830 |
|
|
|
Increase/(Decrease) in Finished Goods |
1437.260 |
(2246.900) |
(1324.140) |
|
|
|
TOTAL (B) |
12196.000 |
15843.280 |
14952.030 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1908.680 |
(603.440) |
248.580 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
1870.770 |
1394.440 |
637.340 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
37.910 |
791.000 |
1847.240 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2022.130 |
1872.210 |
1468.820 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2060.040 |
(1081.210) |
378.420 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
497.670 |
(604.370) |
(78.050) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1562.370 |
(476.840) |
456.470 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
65.270 |
670.380 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Reserve for Molasses Storage Tanks |
1.590 |
4.130 |
|
|
|
|
General Reserve |
400.000 |
0.000 |
|
|
|
|
Debenture Redemption Reserve |
275.000 |
0.000 |
NA |
|
|
|
Proposed Dividend |
123.800 |
84.840 |
|
|
|
|
Corporate Dividend Tax on Proposed
Dividend |
21.040 |
14.420 |
|
|
|
BALANCE CARRIED
TO THE B/S |
789.980 |
65.270 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
41.310 |
122.100 |
286.250 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2932.550 |
0.000 |
NA |
|
|
|
Capital Goods |
0.000 |
0.720 |
NA |
|
|
TOTAL IMPORTS |
2932.550 |
0.720 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.39 |
(3.55) |
3.61 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
7277.800 |
10199.200 |
14830.100 |
|
Total Expenditure |
6548.600 |
8559.800 |
12151.100 |
|
PBIDT (Excl OI) |
729.200 |
1639.400 |
2679.000 |
|
Other Income |
147.600 |
12.500 |
0.100 |
|
Operating Profit |
876.800 |
1651.900 |
2679.100 |
|
Interest |
707.000 |
1200.100 |
1069.900 |
|
PBDT |
169.800 |
451.800 |
1609.200 |
|
Depreciation |
527.600 |
1075.500 |
856.300 |
|
Profit Before Tax |
(357.800) |
(623.700) |
752.900 |
|
Tax |
(208.700) |
(120.500) |
174.300 |
|
Profit After Tax |
(149.100) |
(503.200) |
578.600 |
|
Net Profit |
(149.100) |
(503.200) |
578.600 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2009 |
30.09.2008 |
30.09.2007 |
|
PAT / Total Income |
(%) |
8.61 |
(2.64) |
2.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.00 |
(6.16) |
2.21 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.64 |
(2.16) |
0.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
(0.08) |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.72 |
3.14 |
2.63 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.49 |
3.09 |
2.39 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
30.09.2009 (Rs. in millions) |
30.09.2008
(Rs. in millions) |
30.09.2007 (Rs. in millions) |
|
Sundry Creditors |
6577.450
|
5630.500 |
6022.670 |
HISTORY
Subject, a part of the 'Bajaj Group', is
FINANCIAL RESULTS
On a stand-alone basis the Company achieved a turnover of Rs.18,148.94 million as compared to Rs. 18,028.72 million in the previous year. The Profit after tax stood at Rs.1,562.37 million as compared to the loss of Rs. 476.84 million on the previous year. On consolidated basis, the turnover is Rs. 23,335.19 million as compared to Rs. 21,202.60 million in the previous year. The profit after tax and minority interest is Rs. 617.84 million compared to a loss after tax and minority interest of Rs. 1,574.22 million in the previous year.
OPERATIONS
The financial year 2008-09 witnessed lower than demand sugar
production in
On the other hand, this resulted in emerging of situation of
deficit inventory in the Indian Sugar industry from the earlier position a
surplus inventory situation. Imports of sugar in
The operations during the financial year ended September 30, 2009 at all the ten sugar mills of the Company having an aggregate sugarcane crushing capacity of 96,000 TCD, five distilleries having an aggregate capacity of 640 KL of industrial alcohol per day and co-generation facilities which have an aggregate installed capacity of 340 MW were satisfactory. Despite adverse conditions and lower production, the Company had achieved commendable results during the year 2008-09.
Sugar
The decrease in overall availability of sugarcane during the Sugar Season (SS) 2008-09 also affected the Company. The sugarcane crushing was lesser by around 46% with relatively shorter duration of crushing operations in all of its sugar mills ranging from 68 to 123 days during SS 2008-09 as against the duration ranging from 92 to 142 days during the previous SS 2007-08. The aggregate sugarcane crushed by the Company during SS 2008-09 dropped to 5.425 Million MT (MMT) as against 10.012 MMT in SS 2007-08. Further more the unfavourable weather conditions also caused a reduction in recovery rate by around 0.90% - from an average recovery of 9.09% during SS 2008-09 as against that of 9.99% achieved in SS 2007-08. As a result, the sugar production during SS 2008-09 dropped to 4,93,268 tonnes compared to 9,99,890 tonnes during the preceding SS 2007-08.
The sugarcane price in form of State Advised Price (SAP) was fixed at Rs.140 per quintal in SS 2008-09 by the state government of Uttar Pradesh. The higher SAP coupled with lower sugarcane availability and lower recovery rate resulted in an increase per unit cost of production of sugar - from an average cost of about Rs.1,657 per quintal in SS 2007-08 to Rs.2,019 per quintal in SS 2008-09. The sugar prices however began to rise during the second half of the financial year 2008-09, mainly due to depleting sugar inventory levels in the country. The average selling price of free sale sugar, being 90% of the total quantity of sugar produced by the Company was up by around 41% - to about Rs. 2,205 per quintal during the financial year 2008-09, as against Rs. 1,563 per quintal during financial year 2007-08. On the other hand, for the remaining 10% of the total quantity of sugar produced by the Company, as required to be sold to the Public Distribution System, remained unchanged at Rs. 1,333 per quintal. The profitability of sugar segment of the Company during the year 2008-09 was Rs.1,594.77 million as against a loss of Rs. 602.64 million in the previous year.
Industrial Alcohol
The operations at all the five distilleries of the Company
having an aggregate industrial alcohol production capacity of 640 KL per day
were satisfactory. The total production of industrial alcohol during the year
2008-09 however was lower 52,469 KL as against 139,260 KL in the year 2007-08,
primarily due to lower availability of molasses which in turn can be attributed
to the lower availability of sugarcane. Ethanol, which is the major
contributory for the industrial alcohol segment of the Company, continued to be
sold to the oil companies in
Power
The operations of electric power generation were smooth at
all of their ten sugar mills. While most of the power generated by us continued
to be used captively for the operational needs of the Company, the surplus
power is sold to the
The average price at which they sold their surplus power was approximately Rs.3.08 per KWH. The profit earned by the power segment of the Company during the year 2008-09 was also lower at Rs.484.04 million as against a profit of Rs. 887.57 million in the previous year.
SUBSIDIARIES
In terms of approval granted under Section 212(8) of the Companies Act, 1956 by the Ministry of Corporate Affairs, Government of India vide its letter No. 47/ 687/2009-CL-III dated 14-10-2009, the Company has been exempted from complying with the provisions contained in sub-section (1) of Section 212 of the Companies Act, 1956 in respect of its following subsidiaries, viz:-
1. Bajaj Hindusthan Sugar and Industries Limited
2. Bajaj Eco-Tec Products Limited
3. Bajaj Aviation Private Limited4. Bajaj Internacional Participaçőes Limited a. (Brazilian subsidiary)
5. Bajaj Hindusthan (
6. Bajaj Eco-Chem Products Private Limited
Upon written request, the annual accounts of the subsidiary companies and the related detailed information will be made available to the investors seeking such information, at any point of time, and the same will also be kept for inspection at the registered office of the Company.
Bajaj Hindusthan
Sugar and Industries Limited
During the year 2008-09, Bajaj Hindusthan Sugar and Industries Limited (BHSIL) achieved a turnover sales and other income of Rs.4,157.79 million as compared to Rs.3,021.69 million in the previous year. The Company recorded Net loss of Rs. 89.29 million against a loss of Rs.757.48 million in the previous year. BHSIL crushed 1.308 Million MT (MMT) of sugar cane during the season 2008-09 as against 1.342 MMT during the sugar season 2007-08. Production of sugar for the season 2008-09 was 0.115 MMT as against 0.140 MMT during the season 2007-08. The recovery during the season 2008-09 was 8.79% as compared to 9.75% during the season 2007-08. BHSIL's cogeneration plants have generated 37,242 MW power during the year 2008-09 as against 44,564 MW power generated during the previous year.
BHSIL is still awaiting from a lender the approval for a
Scheme of Arrangement, inter alia,
comprising merger of Phenil Sugars Private Limited, which is presently holding
more than 99% shares in two companies having one sugar plant each of the
capacity of 6,000 TCD located in the State of Uttar Pradesh and conversion into
Zero Coupon Secured Optionally Convertible Securities of (i) loans including
interest thereon; and (ii) loans including interest thereon taken over by it
from its future subsidiaries - due to the Company. The Company will obtain
approvals of the shareholders and creditors of the Company, the High Court of
judicature at
Bajaj Eco-Tec
Products Limited
Bajaj Eco-Tec Products Limited (BEPL) is one of the Wholly Owned Subsidiary (WOS) of Bajaj Hindusthan Limited.
BEPL is one of the only two companies in the world, to manufacture Medium Density Fibre (MDF) boards from
sugar cane bagasse.
The two Medium Density Fibre (MDF) Board plants, (MDF
plants) are situated at Palia Kalan, District Lakhimpur Kheri, U.P. and at
Kundarkhi, District Gonda, U.P., each having a capacity to manufacture 80,000
m3 boards per annum. The Particle Board Plant is situated at Kinauni, District
Meerut, U.P., and has a capacity to manufacture 50,000 m3 boards per annum. The
combined capacity of all three plants, at 210,000 m3 boards per annum, is the
largest in the country, and has been set up at a total cost of around Rs. 3,000
million. BEPL has installed the latest, state-of-the-art Plant and Machinery,
at all three locations, which have been imported brand new, from Europe and
During the financial year 2008-09, BEPL has successfully commenced commercial operations of manufacturing Particle Boards (PB) and Medium Density Fibre Boards (MDF), from sugar cane bagasse, and launched its “Zero Wood, Eco-friendly Particle Boards and Medium Density Fibre Boards” in the Indian Market, under the brand “Bajaj Boards”.
BEPL had successfully resolved the initial quality issues of
MDF boards, and the plants were also gradually stabilized. In view of worldwide
recession and more particularly in real estate and infrastructure sectors,
which is the main market for PB and MDF, the demand and consequently prices of
PB and MDF boards dropped rapidly. Few countries, in order to keep their plants
running, also resorted to dumping their products in
However, due to aforesaid, the turnover and margins of the Company in its first year of commercial operations were adversely affected. During the year 2008-09, BEPL recorded a turnover (Gross Sales and Other Income) of Rs.608.68 million and a net loss of Rs. 739.51 million.
BEPL has now launched complete range of PB and MDF boards in the market - Plain boards, Pre-laminated boards, Interior Grade, Exterior Grade, and in thicknesses ranging from 6 mm to 25 mm.
BEPL has also received ISI Certifications in respect of its PB and MDF boards manufactured at all three plants. Further, being manufactured from sugar cane bagasse, an agricultural residue, the Bureau of Indian Standards have also accorded
“ECO-MARK” to BEPL's PB and MDF boards. BEPL has also earned
Membership of Indian Green Building Council (IGBC), an organization committed
to promote and develop green building concepts, in
With ISI Mark, ECO-MARK and prestigious membership of IGBC, “Bajaj Boards” are now being specified in all major projects of Governments, Banks, Hospitals, Educational Institutions, Hotels, Public Undertakings, etc., all across the country. “Bajaj Boards” provides a cost-effective and sustainable alternative/substitute for wood, plywood and other similar panel products, required for interiors and furniture manufacturing and in the process will
significantly reduce deforestation, one of the main culprits of “GLOBAL WARMING”. At full production capacity of 210,000 m3, “Bajaj Boards” has a potential to save 400,000 mature trees from being cut every year!
During the year, BHL had invested a further sum of Rs.600 million by way of Convertible Preference Shares subscription. Accordingly, till date, BHL has invested Rs.1,849.10 million by way of 11,500,000 equity shares of face value Rs.10/- each at a price of Rs.100/- per share (comprising Rs.90/- per share as premium); 10,000,000 - 7% Redeemable Cumulative Non-Convertible Preference Shares of face value of Rs.10/- each and 60,000,000 - 7% Redeemable Cumulative Convertible Optionally Preference Shares of face value of Rs.10/- each towards part funding of the overall project cost and working capital requirements of its subsidiary.
Bajaj Aviation
Private Limited
Bajaja Aviation Private Limited (BAPL) commenced the operations of providing charter services of its Bell-407 helicopter acquired during the year. In its first year of commercial operations, BAPL generated income of Rs.10.64 million and recorded Profit after taxation of Rs.2.02 million for the year ended September 30, 2009.
Bajaj Eco-Chem
Products Private Limited
The proposed plan of undertaking and carrying the business of manufacture and sale of speciality chemicals by BECPL was deferred and as such no business has been commenced under Bajaj Eco-Chem Products Private Limited till date.
Bajaj Internacional
Participaçőes Limitada (Subsidiary in
The Company has not commenced any business operations
through this Wholly Owned Subsidiary (WOS) in
Bajaj Hindusthan (
Bajaj Hindusthan (
Cane and Sugar Policy
The Central Government has announced several policy measures during the year as well as for the future. The salient features of the sugar policy effective from October 1, 2009 are:-
1. Levy sugar component has been increased from 10% in Sugar Season 2008-09 to 20% for Sugar Season 2009-10 to meet the requirements under the Public Distribution System at subsidized rates;
2. Levy sugar price will now onwards re computed based on the Fair and Remunerative Price (FRP) in place of the Statutory Minimum Price (SMP). The FRP would provide reasonable margin to the growers' on account of risk and profits;
3. FRP is applicable from October 1, 2009;
4. The Central Government has allowed duty-free import of raw sugar till January 1, 2011 and white sugar till March 31, 2010 to enable the availability of sugar in the domestic market;
5. For the Sugar Season 2009-10, the Central Government has announced FRP at the rate of Rs. 129.84 per quintal linked to a base recovery rate of 9.50% subject to a premium of Rs. 1.37 per quintal for every 0.10% increase in recovery above that level; and
6. The Government of Uttar Pradesh has announced the sugarcane price at Rs.165 per quintal for normal variety as against Rs.140 per quintal during Sugar Season 2008-09. However, due to shortage of sugarcane, sugar mills in Uttar Pradesh have agreed to pay between Rs.200 and Rs.210 per quintal.
Ethanol Policy
The Government of India has recently reiterated its stand to implement mandatory 5% ethanol blending with petrol. This is expected to result in better utilization of the Alcohol business segment of the Company.
Power Policy
The Government of Uttar Pradesh has recently announced “Energy Policy 2009” that provides for special relaxation for co-generation plants facing shortage of fuel. Emphasis was also given for enabling utilization of idle capacity to bridge the demand-supply gap in an energy deficient state such as Uttar Pradesh.
The relaxations as announced by the Government of Uttar Pradesh may be summarized as :-
1. Renewable energy (bagasse) based co-generation plants will be permitted use of fossil fuel such as coal or gas to generate power in the off-season;
2. All existing or future co-generation plants (bagasse) will be permitted to sell 10% of their total generation under open access to third party for the next 10 years; and
3. As an incentive for off-season generation, the Government of Uttar Pradesh will permit 50% of the power to be sold anywhere under Open Access System.
MANAGEMENT DISCUSSION
AND ANALYSIS
I. GLOBAL SCENARIO
Sugar is a widely traded commodity. On an average, about 70% of world sugar production is consumed in the country of origin, and the balance 30% is traded in the international market. A part of the international sugar trade occurs under specific agreements (preferential trade, long term agreements, etc.) that, in some cases include clauses on import prices.
Around 30% of world sugar production is traded in the world market. The sugar prices in the international markets are of vital importance. The demand-supply situation is the main factor explaining changes in international prices. It is difficult to measure consumption; therefore, it is often estimated as the disappearance of stocks. The best indicator for explaining changes in sugar prices is the stocks-to-use ratio which encompasses the growth in consumption. There is generally an inverse relation between changes in the stocks-to-use ratio and prices.
During the year 2008-09 world sugar production was 153
million tonnes as against 167 million tonnes last year. The drastic fall of
about 14 million tonnes can be solely attributed to lower production in
Long Term Trends in
World Sugar Consumption
Consumption is the driver of the world sugar economy. Sugar produced must necessarily be consumed at some time. Economists have identified 6-7 drivers of demand. The most important of these are:
1. Population growth. 2. Per capita incomes.
In 2008-09 global consumption stood at around 161 million tonnes. However, consumption growth across countries is not secular and there exists large regional variations.
II. INDIAN SCENARIO:
Indian sugar industry has moved from surplus inventory to
substantial deficit.
The situation has arisen due to summary increase in Minimum
Support Prices (MSP) of alternative crops especially wheat and rice. An
analysis shows that the MSP of wheat and rice has increased both at a CAGR of
roughly 18% in three years. As a result
The other factor leading to lower production in sugar was
due to poor recovery witnessed all over
Sugar Prices:
Sugar prices have a negative co-relation with stocks-touse ratio. When the stocks-to-use ratio falls, the prices are bound to rise and vice versa. Due to drastic fall in production in Sugar Season 2009, the stocks-to-use ratio has come down to its lowest levelin a decade. As a result price of Sugar has risen from about Rs.17.50 per kg. in December 2008 to about Rs.30 per kg in September 2009. Sugar prices are expected to remain firm through 2010 due to expected lower production in 2010 also.
Industry Drivers:
The Performance of the Industry mainly depends on:
1. External factors:
a. Availability of sugarcane
b. Sugarcane prices
c. Government policy
d. Sugar prices
2. Internal factors:
a. Plant size and location
b. Plant efficiency
c. Value addition from by-products
d. Financial Management.
EXTERNAL FACTORS
a. Availability of sugarcane:
Acreage under cane cultivation has reduced from around 5.04 million hectares in 2007-08 to 4.41 million hectares in 2008-09. Sugar cane production decreased from approximately 341 million tonnes in 2007-08 to approximately 295 million tonnes in 2008-09. Area under sugar cane has declined by around 13% in Sugar Season 2009 as against Sugar Season 2008. This decline was mainly due to crop switching by farmers on account of higher Minimum Support Price (MSP) received by them for alternate crops notably wheat and rice. Yield per hectare has also declined marginally on account of adverse agro climatic conditions.
b. Sugarcane Prices:
Sugarcane is the main raw material in the production of sugar and accounts for around 65-70% of the cost of production. Financial performance therefore has a high co-relation to sugar cane prices. Any increase in the sugarcane price adversely impacts profitability. Sugarcane prices are regulated by the Government. The Central Government decides the minimum price called the Statutory Minimum Price (SMP), which is the basis for minimum price to be paid by the sugar mills to purchase cane from farmers. The SMP was based on the recommendations of the Commission for Agricultural Costs and Prices. SMP was fixed at Rs.81.18 per qtl. For Sugar Season 2008-09 and is linked to a base sugar recovery of 9% with Re.0.90 for each incremental 0.1% recovery.
SMP announced by the Central Government is a function of
cost of cultivation of sugarcane with reasonable return to the cane growers
such as input costs, cost of labour including family labour and other notional
costs like lease rent of land and financial costs. As upheld by the Hon'ble
Supreme Court, the
The Government of UP announced a price of Rs.125/- per qtl. for the Sugar Season 2006-07. This was challenged before the Allahabad High Court. The High Court, in its Order dated 19th December 2007, quashed the SAP of Rs.125/- per quintal and directed the UP Government to form an 'Expert Committee' which would devise a methodology for determining SAP based on specific principles. This Committee was to declare the SAP for sugar season 2006-07, based on the formula so devised, within 3 months. The norms and principles decided by the 'Expert Committee' would form the guiding principle and basis for fixation of SAP going forward.
The Government of UP, once again, announced SAP for the sugar season 2007-08 at Rs.125/- per qtl. despite a drop in sugar prices by around Rs.500/- per qtl. This was also challenged before the Allahabad High Court and finally revised by the Supreme Court again to Rs.110/- per qtl. (under an interim arrangement). The respective matters are still pending for final decision by the Supreme Court.
For the sugar season 2008-09, the Government of U.P. has fixed a higher SAP of Rs.140/- per qtl. This too has been challenged before the Allahabad High Court. However, the Allahabad High Court has upheld the Government fixed SAP of Rs.140 per qtl. for the Sugar Season 2008-09.
However, through the new ordinance dated 22 October 2009, the Central Government has changed the structure of cane pricing mechanism. The new ordinance will be applicable from Sugar Season 2010. The Central Government has amended Essential Commodities Act, 1955 to replace SMP for cane to Fair and Remunerative Price (FRP), which will now be the price that mills across the country need to pay.
The FRP announced for the Sugar Season 2009-10 is Rs. 129.84 per quintal linked to recovery of 9.5 % subject
to premium of Rs. 1.37 per quintal for every 0.1 per cent increase in recovery.
c. Government Policy:
Sugar is the second largest agro processing industry in
Domestic sugar sales are regulated by the Central Government which decides how much a mill can sell in the open market i.e. free sale quota and how much is to be released by the mills for distribution through the public distribution system that is levy quota which is presently at 10%. This levy quota has now been increased to 20% for one year due to severe shortfall in production and rising prices. Also in view of SMP being replaced by FRP, the levy price will also undergo a revision since now levy sugar price will be calculated by taking FRP as a base instead of SMP. Levy sugar prices are usually lower than market prices. Sugar sales are subject to release orders
from time to time.
Due to acute shortage faced by the country, the Government has come out with slew of measures to contain the sugar prices from rising. These measures are allowing duty free import of raw sugar without export obligation. Allowing duty free import of white sugar, imposing stock limits on dealers, wholesalers as well as industrial users of sugar etc. In spite of these efforts, the prices are ruling above Rs.35 per kilogram of sugar in the retail market.
d. Sugar Prices:
After two consecutive Sugar Seasons, viz. 2005-06 and 2006-07 with surplus sugar production, the sugar prices fell down to an abysmally low price of around Rs.1200 per quintal in October 2007 and remained subdued during the first half of the sugar season 2007- 08 with the average monthly sugar price ranging between Rs.1280 per quintal and Rs.1440 per quintal. However, with the lower than expected production in Sugar Season 2009 and expectation of similar production in Sugar Season 2010, the sugar prices have increased considerably. The retail prices are ruling above Rs.3500 per quintal of sugar currently and are expected to increase further.
INTERNAL FACTORS:
a. Plant Size and Location:
As with any other industry, size is of vital importance in the sugar industry. Large size will enable mills to take advantage of economies of scale and reduce cost of production.
Sugar plants need to be located in an area where adequate sugarcane is available. It is also vital that the mill is able to attract a high percentage of sugarcane for crushing out of the total cane grown in the area. Sugarcane is bulky and also needs to be crushed as soon as it is harvested. Hence, it is important that the plantsare located close to cane farms.
b. Plant Efficiency:
Sugar recovery is one of the major factors affecting financial performance. Even a small increase in recovery level could have a significant impact on the profitability of a company. Sugar recovery inter alia depends on internal plant efficiencies, time taken by the mill to crush cane from the time it is harvested, processing losses, etc. Factors like development of infrastructure around the plant, maintenance of plant and machinery also helps in obtaining higher recoveries.
c. By-products:
Optimal utilization of by-products is another key variable in company performance. Integrated sugar mills which produce Bagasse, Alcohol and Power are more likely to perform better than those which only produce sugar and sell Bagasse and Molasses. By opting for an integrated model, mills earn a higher margin due to higher value addition and partially mitigate risk arising out of a downturn in sugar business.
d. Financial Management:
Sugar industry is highly working capital intensive. Sugar operations are seasonal in nature. Crushing operations last for an average of around 125 days, whereas sale of sugar is throughout the year. However, crushing duration
varies across the country depending on cane availability etc. In U.P for instance crushing is done around 150-160 days in a year from October till April. Working capital is therefore required during the crushing season and gets liquidated out of sales proceeds. Efficient working capital management lowers interest cost and improves profitability.
III. BAJAJ HINDUSTHAN'S POSITION CAPACITIES AND
LOCATIONS:
BHL has 10 plants having an aggregate crushing capacity of 96,000 TCD.
Apart from this, BHL has 5 distilleries with aggregate capacity of 640 KL/day and also generates about 90 M.W. of surplus power. Crushing capacity of Bajaj Hindusthan Sugar and Industries Limited (BHSIL), a subsidiary of the Company (BHL) stands at 40,000 TCD, distillery of 160 KL/day and surplus power of 15 M.W.
Ethanol
Ethanol is used as an automotive fuel by itself and can be mixed with petrol to form what has been called “FUEL ETHANOL.” The most common blends contain 5% to 10% ethanol mixed with petrol.
Three years Ethanol Tenders finalized in the year 2006 has expired on October 31, 2009 and Government of India is taking active interest in renewal of Ethanol Tenders. Oil Companies have started the tenderingprocess for continuation of blending of ethanol at 5% level in various states. Oil companies also intend to increase it to 10% subject to quantities being available. In fact, proposal of 5% mandatory blending of ethanol is under active consideration of Government of India.
Owing to increase in Molasses price, raw material for Ethanol, Government is also seriously considering substantial price hike in ethanol price.
The ethanol blending program, so-called Green Fuel Program of Government of India is a big boost to Rural and Farming economy. It enables less dependence on fossil fuel, curb import bills and is a good oxygenate and reduces vehicular pollution substantially.
For sugar millers/Distillers, ethanol blending means additional usage of Ethanol other than conventional use for Potable and Industrial purpose, provides better price stability to Alcohol and Molasses improving viability of sugar mills, which in turn benefit cane growers.
Particle Board (PB) and Medium Density Fibre Board (MDF)
Project
Bajaj Eco-Tec Products Limited (BEPL) has successfully set up three plants for manufacturing Particle Boards (PB) and Medium Density Fibre Boards (MDF), from sugarcane bagasse.
BEPL is one of the only two companies in the world, to
manufacture MDF from sugar cane bagasse. The two Medium Density Fibre Board
plants are situated at Palia Kalan, District Lakhimpur Kheri, U.P. and at
Kundarkhi, District Gonda, U.P., each having a capacity to manufacture 80,000
m3 boards per annum. The Particle Board plant is situated at Kinauni, District
Meerut, U.P., and has a capacity to manufacture 50,000 m3 boards per annum. The
combined capacity of all three plants, at 210,000 m3 boards per annum, is the
largest in the country, and has been set up at a total cost of around Rs.2900
million. BEPL has installed the latest, state-ofthe- art Plant and Machinery,
at all three locations, which have been imported brand new, from Europe and
During the financial year 2008-09, BEPL has successfully commenced Commercial Operations of manufacturing
Particle Boards (PB) and Medium Density Fibre Boards (MDF), from sugarcane bagasse, and launched its “ZERO
WOOD, ECO-FRIENDLY PARTICLE BOARDS AND MEDIUM DENSITY FIBRE BOARDS” in the Indian Market,
under the brand “Bajaj Boards”.
Bajaj Eco-Tec also received ISI Certifications in respect of
its PB and MDF boards manufactured at all three plants. Further, being
manufactured from sugarcane bagasse, an agricultural residue, the Bureau of
Indian Standards have also accorded “ECO-MARK” to their PB and MDF boards. BEPL
has also earned Membership of Indian Green Building Council (IGBC), an
organization committed to promote and develop green building concepts, in
With ISI Mark, ECO-MARK and prestigious membership of IGBC, “Bajaj Boards” are now being specified in all major projects of Governments, Banks, Hospitals, Educational Institutions, Hotels, Public Undertakings, etc., across the country. The Company has also established country-wide network of distributors and dealers and also have experienced sales and marketing team all across the country. Today, “Bajaj Boards” are available at more than 2,000 outlets in the country, and the list is growing day by day.
OUTLOOK
The Indian economy has shown robust growth during the past few years and the same trend is expected to continue. The sugar prices have already started showing signs of recovery and, with the support of State and Central Government initiatives, the sugar sector is turning aroundafter a very difficult phase. It is expected that sugar prices would remain firm reflecting the demand – supply situation over the next two years.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
(Rs.
In millions)
|
Particulars |
As at 30.09.2009 |
|
a) In respect of disputed demands/claims against the Company not acknowledged as debts: |
|
|
(i) Central Excise matters |
318.650 |
|
(ii) Trade Tax matters |
5.770 |
|
(iii) Income-tax matters |
0.020 |
|
(iv) Other claims |
412.210 |
|
(b) The Company has furnished following guarantees on behalf of Bajaj Eco-Tec Products Limited, (wholly owned subsidiary): |
|
|
(i) Corporate Guarantee of Rs. 740 Million (Rs. 740 Million) to a bank for credit facility given against which the outstanding balance as at the year end is Rs. 556.89 Million (Rs. 579.72 Million). |
|
|
(ii) Bank Guarantee of Rs. Nil (Rs. 1.50 Million ) in
favour of |
|
UNAUDITED FINANCIAL RESULTS
(PROVISIONAL) FOR THE QUARTER ENDED MARCH 31, 2010
(Rs. In millions)
|
Particulars |
Current Year 3 Months 31.03.2010 |
Current Year 6 Months 31.03.2010 |
|
1. (a) Gross Sales /Income from Operations |
5847.200 |
12184.900 |
|
Less: Excise Duty |
172.800 |
356.500 |
|
1. (b) Net Sales /Income from Operations |
5674.400 |
11828.400 |
|
1. (c) Other Operating Income |
645.100 |
782.400 |
|
Total Income |
6319.500 |
12610.800 |
|
2. Expenditure : |
|
|
|
a) (Increase)/decrease in Stock in Trade & Work in Progress |
(13094.900) |
(16527.800) |
|
b) Consumption of Raw Materials |
16698.000 |
23371.500 |
|
c) Employees Cost |
436.200 |
751.300 |
|
d) Depreciation |
460.800 |
971.200 |
|
e) Loss/ (Gain) due to Foreign Exchange Fluctuation |
(9.600) |
-- |
|
f) Other Expenditure |
854.600 |
1438.600 |
|
g) Total (2) |
5345.100 |
10004.800 |
|
3. Profit/ (Loss) from Operations before Other Income, Interest and Exceptional Items (1-2) |
974.400 |
2606.000 |
|
4. Other Income |
0.800 |
32.300 |
|
5. Profit/ (Loss) before Interest and Exceptional Items (3+4) |
975.200 |
2638.300 |
|
6. Interest (Net) |
650.000 |
1106.300 |
|
7. Profit/ (Loss) after Interest but before Exceptional Items (5-6) |
325.200 |
1532.000 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit / (Loss) from Ordinary Activities before tax (7-8) |
325.200 |
1532.000 |
|
10.(a) Tax expense |
7.300 |
362.100 |
|
10.(b) (Excess) / Short provision for tax |
-- |
-- |
|
11. Net Profit / (Loss) from Ordinary Activities after tax (9-10) |
317.900 |
1169.900 |
|
12. Extraordinary items (net of tax expense Rs. Nil) |
-- |
-- |
|
13. Net Profit / (Loss) for the period (11-12) |
317.900 |
1169.900 |
|
14. Paid-up equity share capital (Face Value - Re.1/- per share) |
191.400 |
191.400 |
|
15. Reserves excluding Revaluation Reserve |
|
|
|
16. Earnings Per Share (EPS) before and after Extraordinary Items (Not Annualised): |
|
|
|
(a) Basic (Rs. per share) |
1.66 |
6.11 |
|
(b) Diluted (Rs. per share) |
1.66 |
6.11 |
|
17. Public shareholding : |
|
|
|
- Number of shares |
109787464 |
109787464 |
|
- Percentage of Shareholding |
57.37% |
57.37% |
|
18. Promoters and promoter group Shareholding : |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
-- |
-- |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
-- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
79969365 |
79969365 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
|
- Percentage of shares (as a % of the total share capital of the company) |
41.79% |
41.79% |
UNAUDITED SEGMENT- WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(PROVISIONAL) FOR THE QUARTER ENDED MARCH 31, 2010
(Rs. In millions)
|
Particulars |
Current Year 3 Months 31.03.2010 |
Current Year 6 Months 31.03.2010 |
|
1. Segment Revenue |
|
|
|
a. Sugar |
5644.700 |
11660.900 |
|
b. Distillery |
351.500 |
504.600 |
|
c. Power |
1047.400 |
1471.600 |
|
Total |
7043.600 |
13637.100 |
|
Less: Inter-segment Revenue |
1369.200 |
1808.700 |
|
Net Sales / Income from Operations |
5674.400 |
11828.400 |
|
2. Segment Results |
|
|
|
a. Sugar |
271.900 |
1626.000 |
|
b. Distillery |
102.600 |
66.500 |
|
c. Power |
900.600 |
1224.900 |
|
Total |
1275.100 |
2917.400 |
|
Less: (i) Interest (Net) |
650.000 |
1106.300 |
|
(ii) Other Un-allocable Expenditure net of Un-allocable Income |
299.900 |
279.100 |
|
Total Profit / (Loss) before Tax |
325.200 |
1532.000 |
|
3. Capital Employed (Segment Assets-Segment Liabilities) |
|
|
|
a. Sugar |
49265.200 |
49265.200 |
|
b. Distillery |
3569.600 |
3569.600 |
|
c. Power |
2932.800 |
2932.800 |
|
d. Unallocated |
9571.700 |
9571.700 |
|
Total |
65339.300 |
65339.300 |
NOTES
1. Given the seasonal nature of the industry the results of any quarter may not be a true and/or proportionate reflection of the annual performance of the Company
2. The Company has allotted 14,500,000 new Equity Shares on January 4, 2010, upon receipt of the entire remaining sum of Rs.567.0 million representing 75% of the total value for such warrants and exercise of the rights by a promoter group entity of the Company on all the 14,500,000 warrants allotted earlier on May 18, 2009 on preferential basis carrying right to subscribe for and be allotted one (1) fully paid equity share of face value Re. 1 each per warrant, at a price of Rs. 52.14 per equity share in accordance with the SEBI Preferential Issue Guidelines. Subsequently, after the allotment of these new Equity Shares, the paid up Equity Share Capital and Securities Premium Account have increased by Rs. 14.5 million and Rs.741.5 million respectively. The net funds from the proceeds have since been utilised in full for repayment of debts.
3. In respect of seasons 2006-07 and 2007-08, the sugar cane price matter is subjudice and pending before the Hon'ble Supreme Court. The Company has fully paid the sugar cane dues in accordance with the interim Orders passed by the Hon'ble Supreme Court. Adjustment, if any, in the accounts will be made as and when the matter is finally decided.
4. Figures have been regrouped/ rearranged wherever necessary.
STATEMENT OF ASSETS AND LIABILITIES (PROVISIONAL) AS AT THE END OF
HALF-YEAR ENDED ON MARCH 31, 2010
(Rs. In millions)
|
Particulars |
Unaudited |
|
Current Year 6 Months 31.03.2010 |
|
|
1. Shareholders' Funds |
|
|
a. Capital |
191.400 |
|
b. Reserve & Surplus |
24567.200 |
|
2. Loan Funds |
39138.600 |
|
3. Deferred Tax Liability (Net) |
1442.100 |
|
Total |
65339.300 |
|
|
|
|
4. Fixed Assets |
30834.900 |
|
5. Investments * |
11491.500 |
|
6. Current Assets, Loans and Advances |
|
|
a. Inventories |
32571.600 |
|
b. Sundry Debtors |
2353.400 |
|
c. Cash & Bank Balances |
1388.800 |
|
d. Loans and Advances |
23626.800 |
|
Less: Current Liabilities & Provisions |
|
|
a. Liabilities |
35312.500 |
|
b. Provisions |
1615.200 |
|
Net current Assets |
23012.900 |
|
Total |
65339.300 |
5. During this quarter, there were zero investor complaints pending as at the beginning of the quarter. The Company has received 2 complaints from the investors during
the quarter and these complaints were disposed off during the quarter. There were zero complaints pending at the close of the quarter.
6. The Statutory Auditors have carried out the "Limited Review" of the results for the six months ended March 31 2010
7. The above results have been reviewed by the audit
committee and approved by the Board of Directors at their respective meetings
held on May 11, 2010.
FIXED ASSETS
- Land
- Buildings
- Plant and Machinery
- Furniture, Fixture and Office Equipments
- Vehicles
- Railway Siding and Light Railways
- Weighing Scales and Weigh Bridges
- Electrical Fittings
- Computer Software
AS PER WEBSITE
DETAILS
PROFILE
Subject was incorporated on 23rd November, 1931 under the name - The
Hindusthan Sugar Mills Limited – on the initiative of Jamnalal Bajaj - a
businessman, confidante, disciple and adopted son of Mahatma Gandhi. He sought
Gandhiji's blessings in this new venture, which, apart from being a sound
commercial proposition would also meet a national need. Till then, there were
barely thirty sugar factories in the country.
The site selected for the first plant was at Golagokarannath, district
Lakhimpur Kheri in the Terai region of Uttar Pradesh (UP), an area rich in
sugar cane. The original crushing capacity of the factory was 400 tons of cane
per day (tcd). Subsequently, this capacity was increased in stages and is
currently 13,000 tcd. The distillery Unit at this plant commenced production
during the end of World War II in 1944. In the initial few years, the major
output was in the form of power alcohol as an additive to petrol, which was then
in short supply. The unit was the first to supply alcohol-mixed petrol to the
army.
In 1967, a new Company - Sharda Sugar and Industries Limited - was
established as a subsidiary of Hindusthan Sugar Mills Limited. Under this new
subsidiary, a sugar plant with a cane crushing capacity of 1400 tcd was set up
in 1972 at Palia Kalan, a large cane supplying centre at a distance of about 70
kilometres from Golagokarannath. The objective of this new Unit was primarily
to help the cane growers of the area supply their produce to the new location
closer to their fields, thereby cutting down on transportation costs. The
capacity was subsequently increased in stages to reach the present 11,000 tcd.
In the year 1988, The Hindusthan Sugar Mills Limited was renamed as Bajaj
Hindusthan Limited and shortly thereafter in 1990, Sharda Sugar and
Industries Limited was amalgamated with Bajaj Hindusthan Limited.
The Company embarked on an aggressive
Today, with its sugar manufacturing facilities across ten locations in
UP, subject has a cane crushing capacity of 96,000 tcd and is also the
country’s largest ethanol producer with an output of 480 KL/ day.
In an acquisition move, the Company took over the Pratappur Sugar and
Industries Limited (PSIL), district Deoria, Eastern UP in December 2005. This
Plant, in operation since 1903, had a crushing capacity of 3,200 tcd, which was
increased to 6,000 tcd in the subsequent sugar season 2006-07.
PSIL was subsequently renamed Bajaj Hindusthan Sugar and Industries
Limited (BHSIL) and is a subsidiary of subject. This acquisition provided
subject a strategic foothold in the sugar-deficient region of Eastern UP and
reaffirmed the consolidation that took place in the sugar industry.
BHSIL embarked upon significant new expansions. While the capacity of
its existing sugar plant at Pratappur was enhanced, three new sugar units were
also set up in virgin, cane-rich areas of East UP at Rudauli (district Basti),
Kundarkhi (district Gonda) and in Utraula (district Balrampur). Thus, BHSIL now
has a crushing capacity of 40,000 tcd and a distillery with the capacity to
manufacture 160 kilo-litre per day of ethanol. The total industrial alcohol/
ethanol capacity of the Company, including its subsidiary, is 800 KL/ day.
With the commissioning of three bagasse-based power co-generation plants
at Kundarkhi, Rudauli and Utraula, BHSIL has an aggregate power generation
capacity of 95.8 MW. Combined with the power generation capacity of 325 MW from
subject, the Company’s total generation capacity is 420.8 MW. After meeting its
own energy needs, the Company has a surplus of 90 MW. It has already begun to
supply a significant part of this surplus power to the UP state grid.
The Company’s annual turnover was Rs. 18,794.9 million for the year
ended September 30, 2008.
The Company’s growth initiative has been led by a strategic focus of
attaining global scales of manufacturing and cost competitiveness. Such
benchmarking provides subject advantages of cost and higher domestic market
share where demand is expected to outstrip supply for the next few years.
Subject is in a unique position. While its planning and processes are
benchmarked against global practices, its activities are directed at
contributing to the Indian rural economy at a local, grassroots level,
primarily in the uplifting of the farmers. The Company embarked on an
expansion, the scales of which are unprecedented worldwide, providing
tremendous opportunities of employment, infrastructure and community
development and contributing to the growth of the rural economy of UP.
BOARD OF DIRECTORS
Mr. Shishir Bajaj,
Chairman & Managing Director
Mr. Shishir Bajaj, Chairman &
Managing Director of the Company, belongs to the promoter - Bajaj Group. After
completing his MBA from New York University majoring in finance, Mr. Bajaj
joined the Company in 1974 and since then has been been shouldering the overall
responsibility of the Company. He is holding the position of Managing Director
of the Company since July 1988.
Mr. Kushagra Nayan
Bajaj, Jt. Managing Director
Mr. Kushagra Nayan Bajaj is the
Jt. Managing Director of the Company. A Bachelor of Science in Economics,
Political Philosophy and Finance from the
Mr. Bajaj was Chief Executive of
the Company between August 2001 and April 2007, responsible for overall
operations.
Mr. D.S. Mehta
Mr. D S Mehta has been on the
Board of Bajaj Hindusthan Ltd since January 1986. He holds directorship in
various other Bajaj group companies. He graduated with an honours degree in
commerce from
Mr. M.L. Apte
Mr. M.L. Apte, an industrialist
having interest in sugar business is associated with Bajaj Hindusthan Ltd. as
Director for over 33 years. A former Sheriff of Mumbai, he was also a former
President of Maharashtra Chamber of Commerce, Bombay Chamber of Commerce,
Cricket Club of India, Indian Sugar Mills Association, Member of the Indian
Cotton Mills Federation and former Chairman of the Textiles Committee. He is
currently the Chairman of the Apte Group of Companies and a Director of Grasim
Industries Ltd. and Tata Asset Management Pvt. Ltd.
Mr. Ravindrakumar V.
Ruia
Mr. Ravindrakumar V Ruia is the
Executive Director of the Dawn Mills Company Limited and is actively associated
with the day-today affairs of Dawn Apparels Limited, subsidiary of the Dawn Mills
Co. Ltd. as its Director. Mr. Ruia joined the Board of Bajaj Hindusthan Ltd. in
April 2001. He is also a Director of Special Paints Ltd., Sigma Paints
(Karnataka) Ltd. apart from various other Ruia group companies.
He is also Committee Member of The
Bombay Mill owners' Association, Indian Cotton Mills Federation and Bombay
Textile Research Association and is associated with various public charity
trusts as Trustee.
Mr. D. K. Shukla
Mr. Dinesh Kumar Shukla, is a B.
A. and M. S. W. He retired as an Executive Director (Personnel) in February,
2003 from Life Insurance Corporation of India (LIC). During his tenure with
LIC, he occupied positions like Regional Manager - Marketing, Group Pension and
Superannuation Schemes of LIC at Kolkata (Eastern Zone) as well as In-charge of
3 LIC divisions viz.
Mr. Alok Krishna
Agarwal
Mr. Alok Krishna Agarwal has been
a member of Board of Directors of Bajaj Hindusthan Limited since April 2007. He
is the founder managing partner of Juris Consultus,
Mr. Sanjeev Kumar,
Director (Corporate and Legal Affairs)
Dr. Sanjeev Kumar, Director
(Corporate and Legal Affairs) has been a member of Bajaj Hindusthan Limited
since March 2009. He was formerly the Group President of corporate and legal of
the Company since June 2004. He obtained a Masters in Commerce in 1979, a
Doctorate in 1996, an LL.B. in 2001, a Diploma in intellectual property rights
laws in 2001 and a Diploma in Literature. In addition, Dr. Sanjeev Kumar has
been a Cost Accountant since 1981 and a Company Secretary since 1982. Dr.
Sanjeev Kumar has approximately 26 years of professional experience.
MILESTONES:
2001 Onwards
- New 7,000 TCD
plant near
- First unit to
crush 20 million quintals of cane during the drought year 2002-03
- Achieved
record profit of Rs. 283.51 million in FY 2003
- Turnover up
by 25% (on annualised basis)
- Production up
by 25%
- Crushing of
sugar cane up by 26%
- GOI changes
the free to levy sugar sale ratio from 70:30 to 85:15
1991-2000
- LOI received
to increase cane capacity to 10,000 MT per day for Gola unit
- Construction
Board Limited amalgamated with bajaj hindusthan limited
- Palia
capacity increased to 5,000 TCD
- The cement
plant is sold to J K Udaipur Udyog Limited for Rs. 1475 million
- Board of
directors decide to dispose of the cement unit
1981-1990
- Company
applies for a license to increase capacity from 4,800 TCD to 10,000 TCD
- Complete
decontrol of cement effective March 1, 1989
- Sharda Sugar
and Ind. Limited receives LOI to expand its capacity from 1,400 TCD to
5,000 TCD.
- The company
changes its name to bajaj hindusthan limited
- Capacity of
cement plant increased from 4 to 6 million tons per annum
- Bonus shares
issued of Rs. 1.12 million in the ratio of 4:1
- Expansion of
Gola plant from 3,600 to 4,800 tons completed
- Golden
jubilee year
- Sharda Sugar
and Ind. Limited amalgamated with bajaj hindusthan limited
PRESS RELEASES
BAJAJ HINDUSTHAN LIMITED AND SUBSIDIARY - BAJAJ HINDUSTHAN SUGAR AND
INDUSTRIES LIMITED
BOARDS APPROVE MERGER
Merger to further consolidate leadership position of BHL in
• BHSIL shareholders to receive one share of BHL for every 5 shares of BHSIL
• The appointed date of merger of BHSIL with BHL is April 1, 2010
• Merger to enhance efficiencies from scale and synergies
MIJMBAI, 17 June 2010: The Boards of Directors of Bajaj Hindusthan Limited. (BHL) and Bajaj Hindusthan Sugar and Industries Limited. (BHSIL) today unanimously approved the merger of BHSIL with BHL, subject to all necessary approvals. The Boards of both the companies have recommended an exchange ratio of one (1) share of BilL for every five (5) shares of BHSIL.
Commenting on Merger, Mr. Kushagra Bajaj, Jt. Managing
Director BHL and Chairman BHSIL said: “Post Merger BHL will have sugarcane
crushing capacity of 1,36,000 TCD, Distillery capacity of 800 KL per day and
surplus bagasse based co-generation thermal power capacity of 105 MW. Upon
merger the combined capacities of ffHL and BHSIL along with their respective
inherent operational strengths will strengthen BHL ‘s position in
Mr. Bajaj further added “The amalgamation is a natural consequence and will result in the creation of a single larger entity in place of two smaller entities carrying on similar business under the same management and control; thus, resulting in rationalisation of operations, better profitability, enhanced production capacity and a stronger competitive position.”
Benefits of Merger:
The merger will enhance the value for shareholders of both BilL and BHSIL. This merger will lead to a consequential increase in BilL’s equity and will be significantly beneficial for post merger BilL’s shareholders. There will be further gains and benefits from reduced operating costs arising from the synergies of a combined operation.
The proposed merger will contribute to the substantial benefits for BHL in terms of scale, integration, enhanced financial strength and flexibility, thereby enhancing shareholder value.
Under the proposed terms of the merger, against the stake of BHL in BHSIL, corresponding numbers of BilL shares will be directly issued and allotted to a Trust to be held, for the benefit of BHL.
BHSIL shareholders will benefit from the opportunity to
participate in BHL’s future growth, by obtaining shares in the No. I sugar
company in
Merger Details:
The appointed date of merger of BHSIL with BHL is 1.4.2010.
Under the terms of the proposed merger, BHSIL shareholders will receive 1 (one) share of BHL for every 5 (five) BHSIL shares held by them.
Against the stake of BHL in BHSIL, corresponding numbers of BI-IL shares will be held in a Trust, for the benefit of BHL, as Treasury Stock.
The proposed merger is subject to necessary approvals by shareholders, creditors, as may be required pursuant to Section 391 to 394 of the Companies Act, 1956 and also other regulatory and statutory approval including by the Hon’ble High Court of Judicature at Mumbai
Other procedural aspects, and timetable for implementation and developments in this regard will be communicated separately for time to time.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.18 |
|
|
1 |
Rs.73.04 |
|
Euro |
1 |
Rs.61.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.