MIRA INFORM REPORT

 

 

Report Date :

21.07.2011

 

IDENTIFICATION DETAILS

 

Name :

THE WATERBASE LIMITED

 

 

Registered Office :

Ananthpur Village, T.P. Gudur Mandal, Nellore – 524344, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

23.11.1987

 

 

Com. Reg. No.:

01-18436

 

 

Capital Investment / Paid-up Capital :

Rs.247.355 Millions

 

 

CIN No.:

[Company Identification No.]

L05005AP1987PLC018436

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Frozen Shrimp, Prawn Feed and S.S. Crab

 

 

No. of Employees :

Not Available

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1900000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. The company has incurred a loss in the current year. However, 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 cautions.

 

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 – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office/Factory :

Ananthpur Village, T.P. Gudur Mandal, Nellore – 524344, Andhra Pradesh, India

Tel. No. :

91-861-2331609

Fax No. :

91-861-2331614

E-Mail :

waterbasechennai@gmail.com

 

 

DIRECTORS

 

Name :

Mr. Vikram M. Thapar

Designation :

Chairman

 

 

Name :

Mr. Anil Kumar Bhandari

Designation :

Director

 

 

Name :

Mr. Adarsh Saran

Designation :

Director

 

 

Name :

Lt. Gen. Deepak Summanwar (Retd.)

Designation :

Director

 

 

Name :

Mrs. Jyothi Thapar

Designation :

Director

 

 

Name :

Mr. Nakul Kamani

Designation :

Director

 

 

Name :

Ms.  Ayesha Thapar

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Ashok Nanjapa

Designation :

Chief Executive

Address :

Sadashivam Street, Off Loyds Road 22, Bus PB No 4902, Gopalapuram, India

 

 

Name :

Ms. Suguna Krishnamurthy

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

414,600

1.68

Bodies Corporate

5,937,906

24.01

Any Others (Specify)

669,870

2.71

Any Other

669,870

2.71

Sub Total

7,022,376

28.39

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

7,022,376

28.39

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

7,000

0.03

Financial Institutions / Banks

192,008

0.78

Foreign Institutional Investors

1,600

0.01

Sub Total

200,608

0.81

(2) Non-Institutions

 

 

Bodies Corporate

2,640,833

10.68

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

5,851,905

23.66

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

3,873,832

15.66

Any Others (Specify)

5,145,946

20.80

Non Resident Indians

5,142,563

20.79

Clearing Members

3,383

0.01

Sub Total

17,512,516

70.80

Total Public shareholding (B)

17,713,124

71.61

Total (A)+(B)

24,735,500

100.00

© Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

24,735,500

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Frozen Shrimp, Prawn Feed and S.S. Crab

 

 

Products :

Particulars

ITC Code

Frozen Shrimp

3061320

Prawn Feed

23099031

S.S. Crab

3061400

 

PRODUCTION STATUS As on 31.03.2010

 

Particulars

Unit

Actual Production

Feed

M.T.

5588.956

Processed Prawns

M.T.

55.967

Soft Shell Crab

M.T.

19.587

Crab Cake

M.T.

0.000

Claw Meat

M.T.

0.000

 

 

GENERAL INFORMATION

 

Bankers :
  • Stata Bank of India, Overseas Branch, Chennai – 600001, Tamilnadu, India
  • Canara Bank, Overseas Branch, Chennai – 600002, Tamilnadu, India
  • Union Bank of India, Overseas Branch, Chennai – 600017, Tamilnadu, India
  • Stat Bank of Hyderabad, Industrial Finance Branch, Chennai – 600001, Tamilnadu, India

 

 

Facilities :

Secured Loans

31.03.2010

(Rs. in Millions)

31.03.2009

(Rs. in Millions)

Term Loans

20.500

20.500

From Banks

176.015

181.738

Total

196.515

202.238

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Mitra Kundu and Basu

Chartered Accountant

Address :

1, Acharya, J.C. Bose Road, Kolkata – 700020, West Bengal, India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- each

Rs.500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

24735500

Equity Shares

Rs.10/-each

Rs.247.355 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

247.355

247.355

247.355

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

221.846

257.920

277.605

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

469.201

505.275

524.960

LOAN FUNDS

 

 

 

1] Secured Loans

196.515

202.238

360.249

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

196.515

202.238

360.249

DEFERRED TAX LIABILITIES

120.670

141.458

0.000

 

 

 

 

TOTAL

786.386

848.971

885.208

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

181.361

201.460

375.805

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

1.270

1.270

5.082

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
445.425

410.604

413.749

 

Sundry Debtors
304.824

380.774

373.003

 

Cash & Bank Balances
76.061

79.861

29.074

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
315.603

357.298

347.796

Total Current Assets
1141.913

1228.537

1163.622

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
378.945

393.524

509.412

 

Other Current Liabilities
124.297

152.264

128.359

 

Provisions
34.916

36.508

21.529

Total Current Liabilities
538.158

582.296

659.300

Net Current Assets
603.755

646.241

504.322

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

786.386

848.971

885.209

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

276.323

335.230

396.488

 

 

Other Income

15.481

9.590

10.342

 

 

TOTAL                                     (A)

291.804

344.820

406.830

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing Expenses

196.249

289.376

333.648

 

 

Payment and Provision for Employees

34.930

38.878

40.047

 

 

Selling Expenses

23.036

28.235

33.205

 

 

Other Expenditure

29.819

151.999

15.261

 

 

Profit on Sale of Assets

(4.189)

0.000

0.000

 

 

Profit on Sale of Land

0.000

(257.711)

0.000

 

 

Prior Period Adjustments

0.000

0.000

(4.732)

 

 

Increase / (Decrease) in Stocks

5.961

3.145

(65.514)

 

 

TOTAL                                     (B)

285.806

253.922

351.915

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

5.998

90.898

54.915

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

22.813

57.127

69.706

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

(16.815)

33.771

(14.791)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

23.105

27.053

35.928

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(39.920)

6.718

(50.719)

 

 

 

 

 

Less

TAX                                                                  (I)

(3.846)

(3.744)

(7.649)

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

(36.074)

10.462

(43.070)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

22.270

85.370

100.340

 

 

Services

0.380

0.000

0.000

 

TOTAL EARNINGS

22.650

85.370

100.340

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

7.960

10.940

12.630

 

TOTAL IMPORTS

7.960

10.940

12.630

 

 

 

 

 

 

Earnings Per Share (Rs.)

(1.46)

0.42

(1.74)

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2010

1st Quarter

30.09.2010

2nd Quarter

31.12.2010

3rd Quarter

31.03.2011

4th Quarter

30.06.2011

5th Quarter

Net Sales

99.180

126.980

124.430

111.210

304.870

Total Expenditure

100.280

125.540

121.530

79.990

272.710

PBIDT (Excl OI)

(1.100)

1.440

2.900

31.220

32.160

Other Income

0.820

4.380

0.480

2.980

1.120

Operating Profit

(0.280)

5.820

3.380

34.200

33.280

Interest

5.440

6.360

5.030

2.890

5.270

Exceptional Items

0.000

0.000

0.000

0.520

0.000

PBDT

(5.720)

(0.540)

(1.650)

31.830

28.010

Depreciation

5.750

5.750

5.750

6.140

5.750

Profit Before Tax

(11.480)

(6.290)

(7.400)

25.700

22.260

Tax

0.000

0.000

0.000

(5.510)

1.660

Provisions and contingencies

0.000

0.000

0.000

0.000

0.000

Profit After Tax

(11.480)

(6.290)

(7.400)

31.210

20.600

Extraordinary Items

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0

0.000

0.000

0.000

Net Profit

(11.480)

(6.290)

(7.400)

31.210

20.600

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(12.36)

3.03

(10.59)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(14.45)

2.00

(12.79)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(3.02)

0.47

(3.29)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.08)

0.01

(0.10)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.56

1.55

1.94

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.12

2.11

1.76

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Business Description     

 

 

The Waterbase Limited is an India-based company. Its principal products include frozen shrimp, prawn feed and shoft shell (S.S.) crab. The Company exports its products to the United States and European countries. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company produced 5,588.956 million tons of feed, 55.967 million tons of processed prawns and 19.587 million tons of S.S. crab. The Company’s plant is located in Nellore. For the nine months ended 31 December 2010, Waterbase Limited's revenues increased 45% to RS350.6M. Net loss decreased 19% to RS24.3M. Revenue reflect a significant rise in income from the operations and the presence of other income. Lower loss was offset by a significant fall in employees cost, an increase in consumptions of raw materials and a significant rise in other expenditures of the company.

 

Operations :

 

The Operating loss after interest, depreciation, tax and exceptional/extraordinary item is Rs.36.070 millions as against a profit of Rs. 10.460 millions in the previous year. The operating Profit before Interest, depreciation and exceptional/extraordinary Item in the current year is Rs.3.450 millions as against a loss of Rs. 175.420 millions in the previous year.

 

The outlook for the year 2009-10 continued to be moderate. The global economic slowdown continued to affect the International demand for shrimps which in turn has also affected feed production.

 

Government of India had approved the farming of an exotic species called Vannamei which is widely exported by all the shrimp farming countries. The cost of production being lower Vannamei is preferred over Black Tiger which was the only species grown in India.

 

Government of India has specified that only those farms that have been licensed by Coastal Aquaculture Authority would be allowed to raise the new variety called the Vannarnei shrimps which is a good step forward for the Industry. The process of licensing has commenced and it is hoped that most of the farms would be covered during the next financial year.

 

The initial result of the farming of this species has been very encouraging and it is hoped that this would be a good beginning for the Industry in the coming years.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Industry Structure and Trends

 

The Indian economy by virtue of its strong macroeconomic fundamentals has been one of the fastest growing emerging economies of the world. While there are encouraging signs for the global economy with some stabilization in International financial markets and slight growth in US market, much of the European countries still continue to be affected by the economic slowdown.

 

Government of India which had approved the farming of Vannamei has also identified a list of Hatcheries from whom the Indian hatchery owners can import brood Stocks.

 

The government also identified and issued licenses to Hatcheries in India who alone are approved to import the brood stock and then distribute the seed to the farmers.

 

The Coastal Aquaculture Authority has been authorized by the Government of India to issue licenses to those farms which meet the bio-security criteria laid out by them. Those farms which have been granted licenses by the Coastal Aquaculture Authority can alone take up Vannamei farming.

 

The process of licensing has begun during the year. It is hoped that over the coming 12 months a s4bstantial area will come under Vannamei farming.

 

During the year the farmers who cultivated the Vannamei species have been very successful. This success will have very good impact in the coming year when more farms would turn to Vannamei farming.

 

The cost of production being low and the prices being high, the farmers are just waiting to get the licensing to start culture of this species in their farms. This would result in vast areas coming under shrimp culture resulting in higher demand for shrimp feed.

 

Outlook

 

The government after approving the farming of the new species Vannamei has proceeded to issue license to farmers. This in the eyes of international Shrimp community would be considered as good governance in the maintenance and farming of Shrimps. With traceability being one of the important aspects the importer would insist on, in the coming years the licensing is a step towards that direction.

 

The revival of the US economy is a good sign for the Industry. Your company which predominantly exports Shrimps to US can look forward for a higher export turnover.

 

Discussion on Financial Performance with respect to Operational Performance

 

The Company’s performance for the financial year 2009-10 is given below:

  • The company has achieved a Turnover of Rs. 276.320 millions
  • Loss after Tax exceptional / extraordinary item is Rs. 36.070 millions
  • ‘The diluted Earnings per share before exceptional / extraordinary item is Negative Rs. 1.46
  • The diluted Earnings per share after exceptional/extraordinary item is Negative Rs 1 .46

 

 

FIXED ASSETS :

 

  • Land
  • Buildings
  • Ponds and Reservoirs
  • Plant and Machinery
  • Furniture and Fixtures
  • Vehicles

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.46

UK Pound

1

Rs.71.67

Euro

1

Rs.62.94

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

28

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.