MIRA
INFORM REPORT
|
Report Date : |
26.02.2011 |
NOTE : The correct name of the
company is SHAMANUR SUGARS
LIMITED.
IDENTIFICATION DETAILS
|
Name : |
SHAMANUR SUGARS LIMITED (w.e.f. 14.06.1995) |
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Formerly Known
As : |
SAMSONS SUGAR LIMITED |
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Registered
Office : |
D.No. 374, 4th |
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Country : |
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Financials (as
on) : |
31.03.2009 |
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Date of
Incorporation : |
09.05.1995 |
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Com. Reg. No.: |
08-017794 |
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CIN No.: [Company Identification
No.] |
U85110KA1995PLC017794 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRS07135C |
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Legal Form : |
A closely held public limited liability company |
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Line of Business
: |
Manufacturer of Sugar |
RATING & COMMENTS
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MIRA’s Rating : |
B (30) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 2494000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Trade
relations are reported as fair. Business is active. Payments are reported to
be slow. The company can be considered for business dealings with some caution.
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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
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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 DECLINED BY
Management non co-operative [ Name not Disclosed ]
LOCATIONS
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Registered Office : |
D.No. 374, 4th |
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Tel. No.: |
91-819-2255855 |
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Fax No.: |
91-819-2257530 |
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E-Mail : |
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DIRECTORS
AS ON 25.09.2009
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Name : |
Mr. Shivashankarappa S. |
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Designation : |
Director |
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Address : |
Door No.2631/1, MCC B Block, Davangere – 577004, |
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Date of Birth/Age : |
16.06.1931 |
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Date of Appointment : |
10.05.1995 |
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Name : |
Mr. Bakkesh S.S. |
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Designation : |
Managing Director |
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Address : |
82633/1, MCC B Block, Davangere – 577004, |
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Date of Birth/Age : |
26.12.1961 |
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Date of Appointment : |
02.06.1995 |
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Name : |
Mr. Ganesh S.S. |
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Designation : |
Director |
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Address : |
Door No.2634, MCC B Block, Davangere – 577004, |
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Date of Birth/Age : |
13.09.1963 |
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Date of Appointment : |
02.06.1995 |
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Name : |
Mr. B.R. Shetty |
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Designation : |
Director |
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Address : |
Mesk Flat 3803, E. Wsub Meter 392, Mersa, Dubai, Post BOX 6222, Abu
Dhabi, UAE – 6222 |
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Date of Birth/Age : |
01.08.1942 |
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Date of Appointment : |
24.12.1997 |
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Name : |
B.S. Nanjunda Swamy |
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Designation : |
Secretary |
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Address : |
SA1. Gokul Apartment, 1st Floor (F4) 14th Main
Jayanagar, 4th Block East, |
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Date of Birth/Age : |
02.04.1933 |
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Date of Appointment : |
01.08.2003 |
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Date of Ceasing : |
16.04.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 25.09.2009
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Names of Shareholders (Equity Shares) |
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No. of Shares |
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S |
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1000 |
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S |
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21888220 |
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11000 |
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Mrs. Y Y Amberkar |
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1000 |
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Mrs. I P Vishwaradhya |
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1000 |
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Mrs. Preethi Bakkesh |
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350000 |
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Mrs. S S Parvathamma |
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300000 |
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Mrs. S S Shusheelamma |
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111000 |
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Puneet Srivatsava |
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294200 |
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Hardesh Chawla |
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294200 |
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Rajeev Mittal |
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294200 |
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B R Shetty |
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5889500 |
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Udaya Shankar Setru |
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213174 |
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Mrs. Pushpa Lohitaswa |
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293562 |
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Mrs. Kalpana Udaya |
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213174 |
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Iyengar Vijayakumar Gopalan |
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425306 |
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Renuka Prasad |
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116394 |
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Agro Corporation Private Limited |
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1291796 |
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Dr. S Kantha |
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1000 |
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A B Channabasappa |
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500 |
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K Vijaya Kumar |
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500 |
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K G Sadashivappa |
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500 |
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Mrs. S K Nagarathnamma |
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500 |
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S M Veeresh |
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500 |
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Shanmukaha S Patil |
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500 |
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Mrs. S T Kusuma Shetty |
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500 |
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Total |
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31993226 |
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Names of Shareholders (Preference Shares) |
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No. of Shares |
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S |
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2800000 |
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Total |
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2800000 |
AS ON 25.09.2009
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Category |
Percentage |
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Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
29.16 |
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Bodies corporate |
0.00 |
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Directors or relatives of Directors |
70.84 |
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Other top fifty shareholders |
0.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Sugar. |
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Terms : |
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Selling : |
L/C, Cash, Credit (30 days, 60
days, 90 days) |
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Purchasing : |
L/C, Cash, Credit (30 days, 60
days, 90 days) |
GENERAL INFORMATION
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No. of Employees : |
Not Divulged by the Management |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Santhappa and Company Chartered Accountant |
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Address : |
Ganesh Complex, Behind Hotel Apporva, |
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CAPITAL STRUCTURE
AS ON 31.03.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
32000000 |
Equity Shares |
Rs.10/- each |
Rs.320.000 Millions |
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|
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2800000 |
Preference Shares |
Rs.100/- each |
Rs.280.000 Millions |
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Total |
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Rs.600.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
31993226 |
Equity Shares |
Rs.10/- each |
Rs.319.932
Millions |
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|
|
|
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|
2800000 |
Preference Shares |
Rs.100/-
each |
Rs.280.000
Millions |
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(9% Preference Shares are redeemable in 3
installments at the end of 66,72,84 months from the date of allotment i.e.
28.03.2005) |
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Total |
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Rs.599.932 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2009 |
31.03.2008 |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
599.932 |
599.932 |
599.932 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
23.764 |
11.150 |
5.551 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
623.696 |
611.082 |
605.483 |
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LOAN FUNDS |
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1] Secured Loans |
640.338 |
601.987 |
539.532 |
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2] Unsecured Loans |
562.246 |
427.010 |
315.439 |
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TOTAL BORROWING |
1202.584 |
1028.997 |
854.971 |
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DEFERRED TAX LIABILITIES |
200.310 |
200.310 |
200.310 |
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TOTAL |
2026.590 |
1840.389 |
1660.764 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1052.425 |
1068.205 |
1089.139 |
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Capital work-in-progress |
102.271 |
23.243 |
0.000 |
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INVESTMENT |
0.958 |
0.447 |
0.447 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
652.864
|
728.112 |
534.249 |
|
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Sundry Debtors |
152.042
|
88.948 |
96.300 |
|
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Cash & Bank Balances |
103.854
|
22.753 |
56.357 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
255.917
|
109.949 |
132.853 |
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Total
Current Assets |
1164.677
|
949.762 |
819.759 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
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Sundry Creditors |
267.841
|
164.217 |
235.363 |
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Other Current Liabilities |
0.000
|
0.000 |
0.000 |
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Provisions |
25.900
|
37.051 |
13.218 |
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Total
Current Liabilities |
293.741
|
201.268 |
248.581 |
|
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Net Current Assets |
870.936
|
748.494 |
571.178 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
|
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TOTAL |
2026.590 |
1840.389 |
1660.764 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2009 |
31.03.2008 |
31.03.2007 |
|
|
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SALES |
|
|
|
|
|
|
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Income |
1279.958 |
841.909 |
724.178 |
|
|
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Other Income |
3.915 |
3.912 |
7.491 |
|
|
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TOTAL (A) |
1283.873 |
845.821 |
731.669 |
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|
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|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Sugarcane Purchased |
363.383 |
425.213 |
500.464 |
|
|
|
Raw Sugar Purchase |
0.000 |
0.000 |
0.611 |
|
|
|
Coal / Bagasse Purchased |
448.155 |
206.355 |
187.451 |
|
|
|
Cane Purchase Tax and Excise Duty |
44.351 |
67.637 |
53.525 |
|
|
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Employee Cost |
28.404 |
27.003 |
20.450 |
|
|
|
Other Manufacturing Expenses |
110.218 |
52.685 |
54.288 |
|
|
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Administration Expenses |
9.815 |
15.547 |
5.778 |
|
|
|
Selling and Distribution Expenses |
13.621 |
17.171 |
20.709 |
|
|
|
Aircraft Running Expenses |
1.027 |
7.408 |
0.000 |
|
|
|
Decrease/Increase in stock |
48.737 |
(166.802) |
(296.727) |
|
|
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TOTAL (B) |
1067.711 |
652.217 |
546.549 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
216.162 |
193.604 |
185.120 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
129.107 |
115.204 |
98.732 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
87.055 |
78.400 |
86.388 |
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|
|
|
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|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
70.783 |
68.556 |
57.120 |
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|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
16.272 |
9.844 |
29.268 |
|
|
|
|
|
|
|
|
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Less |
TAX (I) |
3.659 |
4.245 |
11.662 |
|
|
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|
|
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|
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|
PROFIT AFTER TAX
(G-I) (J) |
12.613 |
5.599 |
17.606 |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
34.286 |
161.898 |
134.097 |
|
|
TOTAL EARNINGS |
34.286 |
161.898 |
134.097 |
|
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|
|
|
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IMPORTS |
|
|
|
|
|
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|
Raw Materials |
410.296 |
148.250 |
104.947 |
|
|
TOTAL IMPORTS |
410.296 |
149.250 |
104.947 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.36 |
0.16 |
0.50 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2009 |
31.03.2008 |
31.03.2007 |
|
PAT / Total Income |
(%) |
0.98
|
0.66 |
2.40 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.27
|
1.16 |
4.04 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.73
|
0.48 |
1.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.00 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.39
|
2.01 |
1.82 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.96
|
4.71 |
3.29 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details :
(Rs.
In Millions)
|
Particulars |
31.03.2009 |
31.03.2008 |
31.03.2008 |
|
Creditors for supply of goods and services |
|
|
|
|
Cane |
9.246 |
95.003 |
207.662 |
|
Coal (coastal energy (P) limited. Chennai ) |
237.662 |
51.896 |
0.605 |
|
Stores |
20.933 |
17.318 |
2.836 |
|
Others |
0.000 |
0.000 |
24.258 |
|
|
|
|
|
|
TOTAL |
267.841 |
164.217 |
235.361 |
Form : 8
|
Corporate
identity number of the company |
U85110KA1995PLC017794 |
|
Name of the
company |
SHAMANUR SUGARS
LIMITED |
|
Address of the
registered office or of the principal place of business in |
D.No.374, 4th |
|
This form is for |
Modification of
charge |
|
Type of charge |
Book debts Movable property
(not being pledge) |
|
Particular of
charge holder |
State Bank Of |
|
Nature of
instrument creating charge |
Working Capital
Consortium Agreement dated 5th February 2010 |
|
Date of
instrument Creating the charge |
05/02/2010 |
|
Amount secured by
the charge |
Rs. 467.100
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest : 12.25% to 13.25%
p.a as applied by individual Banks and as stated in the Schedule to the
Working Capital Consortium Agreement Terms of repayment : Repayable on
demand along with interest and charges in full Margin : 15% Extent and operation of the charge : Charge operates
on pari-passu basis to the extent working finance limit sanctioned by the
participant banks and the charge will be in forced till the loan is repaid to
all the banks in full. Other : Nil |
|
Short particulars
of the property charged (Including location of the property) |
Hypothecation of
stock of sugar, mollasses, consumable stores and other movable assets stored
in the factory premises and godowns and book debts and current assets. |
|
Date of
instrument modifying the charge |
16/03/2007 |
|
Particulars of
the present modification |
The modification is
for recording fresh working capital consortium agreement and joint deed of
hypothecation entered into among the participant banks on renewal of
facilities and the amount secured on pari-passu basis in respect of various
banks being as per the schedule attached. All other terms
and conditions of the loans remain unchanged. |
Fixed Assets :
- Land
- Office
Buildings
- Factory
Buildings
- Plant and
Machinery
- Aircraft-King
C 90
- Vehicles
- Computers
- Office
Equipments
- Furniture and
Fixtures
- Fire
Equipments
- Farm
Equipments
- Canteen
Equipments
Financial Results
:
The sale of sugar including export has increased to Rs.618.000 milions
Registering a growth of 18% over last year sales of Rs.522.000 millions. The
sales turnover from power has also registered a growth of 109% to Rs. 604.500
millions from Rs. 289.100 millions for the previous year. The total turnover
has registered a growth of 52% to Rs. 1280.000 millions from Rs. 841.900
millions for the previous year.
Though, there was marked improvement in the turnover, the decreased
margin in sugar sales, significant fall in production of sugar, and increased
interest and depreciation burden etc., have affected the bottom line and the
profits of the company! have not been at the anticipated level.
Due to inadequacy of profit, this year alsti, the Board of Directors
have been unable to recommend any dividend for the year.
OPERATIONS :
SUGAR PLANT:
The Company has crushed 3,16,831 metric tonnes of sugarcane during the
financial year and produced 27,878 MTs. of sugar as against a crushing of
5,05,371 metric tonnes of sugarcane and production of 46,564 MTs. of sugar
during the previous year. The utilization of the plant was 53 % of its total
crushing capacity. The Company has also produced 13,890 MTs. and sold 15,010
MTs. of molasses during the year as against the production of 21,454 MTs. and
sales of 21,929 MTs. during the previous year. The main reason for lower
crushing and decrease in production of sugar was due to shortage of sugarcane
supply during the season. Since the farmers have shifted to alternative crops
the area under sugar cultivation had come down significantly and there was
accute shortage of sugarcane during the season.
CO-GEN PLANT :
Co-generation plant has generated 129.89 million units of Power and
after captive consumption of 22.71 million units; the company has exported
106.53 million units of Power to BESCOM,
CANE DEVELOPMENT :
In view of the scarcity of sugarcane supply during the previous season
the Company has initiated extensive cane development program and to encourage
the farmers to undertake cane growing the Company has offered the following incentives
to the farmers.
1. Rs. 4,000/- cash incentive per acre to the fresh sugar cane growing
farmers or Rs, 3000/- per acre for ratton crop.
2. Additional rate of Rs. 100/- per ton to the all farmers who supplies to
the company during the year 2009-10.
3. Seeds and manures will be supplied, to the farmers on soft loan
basis. With these measures the Company expects good cane supply during ensuing
season 2010-11.
PROSPECTUS OF THE
CURRENT YEAR :
With continued short supply of cane no significant improvement is seen
in crushing and production of sugar during the current season.
Due to uneconomical price for power offered by the KPTCL in terms of
power purchase agreement it was not found economical to operate the cogen plant
and therefore the Company was compelled to shut down the cogen power plant for
the past 3 months from 03.06.2009. These factors would adversely affected
operations of the Company during the first half of the year.
In order to operate the sugar plant at the optimum level the Company
proposes to import Raw sugar and process for re-export. The power purchase
agreement entered into by the Company with BESCOM/ KP’TCL expires during
September 2009. The company has already initiated negotiation with private
parties for sale of power and higher prices for power is expected. The
prevailing market price trend for sugar is also encouraging.
Despite fall in production of sugar and as well as power, due to above
factors the operations and performance of the Company are expected to be on
even level during the current year also.
PROGRESS OF THE
ETHANOL PROJECT :
The Ethanol Project being setup by the Company is progressing weli. 50 %
of the building construction and 75% of the Plant and Machinery erection is completed.
The commercial production of the project is expected to commence during
December 2009.
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. 45.37 |
|
|
1 |
Rs. 73.25 |
|
Euro |
1 |
Rs. 62.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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.