MIRA
INFORM REPORT
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Report Date : |
18.01.2011 |
IDENTIFICATION DETAILS
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Name : |
WILLIAMSON MAGOR AND COMPANY LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
10.03.1949 |
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Com. Reg. No.: |
21-17715 |
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CIN No.: [Company
Identification No.] |
L01132WB1949PLC017715 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALW01111F |
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PAN No.: [Permanent
Account No.] |
AAACW2369P |
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Legal Form : |
Public
Limited Liability Company. Company’s Shares are listed on the Stock Exchange. |
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Line of Business : |
The Company’s Principal Activity is to provide Non-Banking
Finance and Property Ownership. |
RATING & COMMENTS
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MIRA’s Rating : |
B (35) |
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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 7628296 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
to be some losses being incurred by the company. However the networth appears
to be satisfactory. Trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for small to mediocre 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
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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 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-33-22435391,
22489434, 22489435, 22101221 |
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Fax No.: |
91-33-2248-8114, 22483683 |
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E-Mail : |
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Website : |
DIRECTORS
AS ON 31.03.2010
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Name : |
Mr. Brij Mohan
Khaitan |
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Designation : |
Chairman |
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Date of Birth/Age : |
81 Years |
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Qualification : |
B.Com |
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Other Directorship : |
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Name : |
Mr. Deepak
Khaitan |
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Designation : |
Vice Chairman |
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Date of Birth/Age : |
54 Years |
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Qualification : |
B.Com; MBA (IIM – |
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Other Directorship : |
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Name : |
Mr. A. Khaitan |
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Designation : |
Director |
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Name : |
Mr. T. R.
Swaminathan |
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Designation : |
Director |
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Date of Birth/Age : |
84 Years |
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Qualification : |
B.Com; FCA, FCMA, J.Dip, MA and FCS |
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Other Directorship : |
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Name : |
Mr. R. S. Jhawar |
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Designation : |
Director |
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Name : |
Mr. Padam Kumar
Khaitan |
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Designation : |
Director |
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Name : |
Dr. R.
Srinivasan |
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Designation : |
Director |
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Name : |
Mr. G. Momen |
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Designation : |
Director |
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Name : |
Mr. Bharat
Bajoria |
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Designation : |
Director |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B.Sc. (Hons.) |
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Other Directorship : |
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Name : |
Mr. H. M. Parekh |
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Designation : |
Director |
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Date of Birth/Age : |
72 Years |
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Other Directorship : |
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KEY EXECUTIVES
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Name : |
Mr. H. U.
Sanghavi |
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Designation : |
Company Secretary |
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Name : |
Mr. A. Guha Sarkar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
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Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Bodies Corporate |
6779203 |
61.87 |
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Public shareholding |
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Institutions |
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Financial Institutions / Banks |
6880 |
0.06 |
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Insurance Companies |
409520 |
3.74 |
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Non-institutions |
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Bodies Corporate |
573066 |
6.72 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
1918178 |
17.51 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
1153686 |
10.53 |
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Any
Other (specify) |
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Non resident Indians |
93907 |
0.86 |
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Foreign Nationals |
21920 |
0.20 |
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Shares held by Custodians and against which Depository Receipts have been
issued |
-- |
-- |
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GRAND TOTAL |
10956360 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The Company’s Principal Activity is to provide Non-Banking Finance
and Property Ownership. |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lovelock and
Lewes Chartered Accountants |
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Joint Venture Company : |
D1 Williamson Magor Bio Fuel Limited Joint Venture company with
Middlebrough Oils UK Limited |
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Subsidiaries : |
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Associates : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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23750000 |
Equity Shares |
Rs.10/- each |
Rs.237.500 millions |
|
125000 |
Preference Shares |
Rs.100/- each |
Rs.12.500 millions |
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Total
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Rs.250.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10956360 |
Equity Shares |
Rs.10/- each |
Rs.109.564
millions |
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Of these —
a) 14,99,930
Shares were allotted as fully paid-up pursuant to a contract without payment
being received in cash ;
b) 12,39,090 Shares
were allotted as fully paid-up pursuant to a Scheme of Amalgamation sanctioned
by the Court without payment being received in cash ; and
c) 82,17,270
Shares were allotted as fully paid-up by way of Bonus Shares by capitalization
of Preference Share Capital Redemption Reserve, Capital Reserve and General
Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
109.564 |
109.564 |
109.564 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1797.510 |
1842.973 |
1891.850 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1907.074 |
1952.537 |
2001.414 |
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LOAN FUNDS |
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1] Secured Loans |
699.641 |
1007.184 |
1187.013 |
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2] Unsecured Loans |
609.533 |
638.515 |
165.068 |
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TOTAL BORROWING |
1309.174 |
1645.699 |
1352.081 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3216.248 |
3598.236 |
3353.495 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
689.138 |
703.936 |
714.287 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
2059.025 |
2062.493 |
1927.763 |
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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 |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
11.661
|
18.626 |
35.988 |
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Cash & Bank Balances |
136.582
|
25.506 |
24.519 |
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Other Current Assets |
52.346
|
72.372 |
39.029 |
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Loans & Advances |
290.769
|
780.753 |
682.501 |
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Total
Current Assets |
491.358
|
897.257 |
782.037 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
2.984
|
5.507 |
7.806 |
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Other Current Liabilities |
15.222
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52.606 |
50.275 |
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Provisions |
5.067
|
7.337 |
12.511 |
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Total
Current Liabilities |
23.273
|
65.450 |
70.592 |
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Net Current Assets |
468.085
|
831.807 |
711.445 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3216.248 |
3598.236 |
3353.495 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
269.181 |
202.231 |
208.761 |
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Other Income |
3.923 |
5.949 |
12.292 |
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TOTAL (A) |
273.104 |
208.180 |
221.053 |
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Less |
EXPENSES |
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Expenses |
85.858 |
48.856 |
104.532 |
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TOTAL
(B) |
85.858 |
48.856 |
104.532 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
187.246 |
159.324 |
116.521 |
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Less |
FINANCIAL
EXPENSES (D) |
218.261 |
204.718 |
123.162 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(31.015) |
(45.394) |
(6.641) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2.159 |
2.265 |
1.781 |
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PROFIT BEFORE
TAX (E-F) (G) |
(33.174) |
(47.659) |
(8.422) |
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Less |
TAX (I) |
0.179 |
(11.907) |
3.252 |
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PROFIT AFTER TAX
(G-I) (J) |
(32.995) |
(35.752) |
(11.674) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(249.294) |
(213.542) |
(201.868) |
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BALANCE CARRIED
TO THE B/S |
(282.289) |
(249.294) |
(213.542) |
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Earnings Per
Share (Rs.) |
(3.01) |
(3.26) |
-- |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
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Sales Turnover |
|
25.600 |
84.900 |
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Total Expenditure |
|
7.200 |
11.600 |
|
PBIDT
(Excl OI) |
|
18.400 |
73.300 |
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Other Income |
|
0.000 |
0.000 |
|
Operating Profit |
|
18.400 |
73.300 |
|
Interest |
|
45.200 |
43.400 |
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Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(26.800) |
29.900 |
|
Depreciation |
|
0.500 |
0.400 |
|
Profit Before Tax |
|
(27.300) |
29.500 |
|
Tax |
|
0.000 |
0.000 |
|
Reported PAT |
|
(27.300) |
29.500 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(27.300) |
29.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
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PAT / Total Income |
(%) |
(12.08)
|
(17.17) |
(5.28) |
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Net Profit Margin (PBT/Sales) |
(%) |
(12.32)
|
(23.57) |
(4.03) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(2.81)
|
(2.98) |
(0.56) |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.02)
|
(0.02) |
(0.00) |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.70
|
0.88 |
0.71 |
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Current Ratio (Current Asset/Current Liability) |
|
21.11
|
13.71 |
11.08 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The Calcutta-based Macneill and Magor was renamed Williamson
Magor and Company in 1992. The change of name is in line with the company's
reorganisation programme. Over the last few years, it has been hiving off its
engineering divisions, spinning them off into separate companies. In fact, both
the Khaitans and the Magors who are the co-promoters, were of the view that for
the different product groups to thrive, it is necessary to convert them into
separate companies. In 1989, the industrial machinery product group was
transferred to Kilburn Engineering. 1990 saw the transfer of the materials
handling and electrical products groups to Macneill Engineering; and in 1992,
the last two engineering groups (mining and trading) were transferred to
Macneill International. The company transferred 2 tea gardens to its group outfit,
Mcleod Russel (I) and 7 tea estates to The Bishnauth Tea Company. After
transferring nine of its tea estates to the group companies, it virtually
became a holding company of the subsidiary tea firms. Divested of its tea
interests, the company's present activities include trading and investments,
and are property owners and tea warehousemen. It also diversified into new
areas. As a part of diversification into the power sector, it floated Assam
Valley Power Corporation to set up a 90-MW combined-cycle gas-based power plant
at
OPERATIONS
The Company during the year under review earned interest income of Rs.92.300 Millions, dividend on trade investments of Rs.35.000 Millions and profit on sale of long term investments of Rs.23.300 Millions.
The total income of the Company was Rs.273.100 Millions as against Rs.208.200 Millions earned in the previous year. The company has suffered a loss of Rs.33.000 Millions during the year under review as against a loss of Rs.35.800 Millions in the previous year.
D1 WILLIAMSON MAGOR
BIO FUEL LIMITED
D1 Williamson Magor Bio Fuel Ltd. (D1WML) was incorporated
in July 2006 under a 50:50 Joint Venture Agreement between subject, (WML) and
D1 Oils Trading Ltd.,
As a clean fuel, alternate to fossil fuel, the market for bio diesel has been increasing globally at a faster rate. The global production of bio diesel during the year 2008 at 11.1 Million MT registered a growth of 23% over previous year.
There has been an acute shortage of bio diesel feedstock and D1WML has developed about 132,000 hectares of plantation at different stages of maturity. The company has observed 2009-10 as the year of consolidation of plantation and estimates about 60% of the farms are duly maintained by the farmers to produce commercial crop.
The initial harvest of oilseed on young plantation carried
out during 2009-10 is being used for extension and consolidation. D1WML expects
sub-commercial harvest during 2010-11 for oil expelling and commercial harvest
in 2011-12. The company has acquired about 28 acres of land in Balipara
Industrial Growth Centre,
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
After the year of economic recession all over the world, signs
of recovery were seen in 2009-10. The impact of recession was not as much on
the Indian Economy, as their economy was relatively protected by better
monitoring and handling of credit policy and comparatively lower dependence on
exports. On account of these factors as well as faster fiscal and monetary
measures by the Government of India and the Reserve Bank of India, the revival
of their economy has been faster than many in the West. While Indian GDP is
poised for growth @ 8.5% this year, the main cause for concern for the present
is the high rate of inflation which the Government and Reserve Bank of
With the revival of the economy, the Government is
considering withdrawal of stimulus packages in a phased manner. Despite
increase in repo and reverse repo rates three times in the recent past by the
Reserve Bank of
OPPORTUNITIES AND
THREATS, RISKS AND CONCERNS
The principal business of the company is investments and lending of funds. With the economic revival, most of the investee companies have started doing well and declaring higher dividends, which should boost income of the Company. Recovery of loans and interest is also expected to be easier.
The Company is a part of the Williamson Magor Group
possessing good infrastructure and carries a good reputation in the Corporate
World. High rate of inflation is a major cause of concern for the country, the
industry as also for the Company. If inflation cannot be contained, there is a
possibility of interest rates to go up and liquidity being sucked by Reserve
Bank of
The Global Economy is still not fully out of the crisis. Any major negative news could again drag down the market. However, as most of the investments held by the Company are on long term basis, any temporary fall in the market is unlikely to have impact on the Company’s operations.
OUTLOOK
The earnings of the Company in the current year are expected to improve on account of higher dividends being declared by some of the investee companies. Recovery of loans together with interest is also expected to be better in the current year.
In view of these, the Directors are reasonably hopeful of improved performance in the current year, barring unforseen circumstances.
FIXED ASSETS:
- Land – Freehold
- Buildings
- Plant and Machinery
- Motor Vehicles
- Furniture and Fixtures
- Electric Installation
- Water Supply
WEBSITE DETAILS:
PROFILE:
Established in 1868 as a tea company, the group has grown in
size and experience. Today their gardens stretch from the foothills of the
More importantly, it has grown to become the world's largest producer of tea, having 28 tea estates with an output of 35 million Kgs of tea per year. The group's reliability and efficiency as a supplier of bulk tea has helped increase tea exports steadily up to 15% per year for the past few years.
With an average fine leaf count targeted at over 75% on a 7 day round, the WM Group is aimed at achieving consistency in quality. From the handling of leaf to its transportation their systems and processes cater to preserve the leaf quality on its way to the factory.
The group is well established in the bulk tea selling network, both at home and overseas. They have installed state-of-the-art machinery and have centralised research facilities to enhance yield and quality.
As consumer tastes become more sophisticated, the group is on course at satisfying this demand and adding value to its products and has successfully launched three brands of packet tea - Tez, Premium Gold and Jaago.
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.45.59 |
|
|
1 |
Rs.72.31 |
|
Euro |
1 |
Rs.60.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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.