MIRA INFORM REPORT

 

 

Report Date :

22.07.2011

 

IDENTIFICATION DETAILS

 

Name :

SAURASHTRA CEMENT LIMITED

 

 

Registered Office :

Near Railway Station, Ranavav – 360 560, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

11.06.1956

 

 

Com. Reg. No.:

04-000840

 

 

Capital Investment / Paid-up Capital :

Rs. 580.702 Millions

 

 

CIN No.:

[Company Identification No.]

L26941GJ1956PLC000840

 

 

Legal Form :

Public Limited Liability Company. The Company's shares are listed on the Stock Exchange.

 

 

Line of Business :

manufacturer of Ordinary Portland Cement and Pozzolana Portland Cement

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C (3)

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Sick Unit

 

 

Payment Behaviour :

Delayed

 

 

Litigation :

--

 

 

Comments :

Subject has been declared as a sick unit by the Board for industrial and financial reconstruction (BIFR). Payments are reported to be slow and delayed.

 

The company can be considered for business dealings strictly on a safe and secured 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.

 

 

INFORMATION DENIED BY

 

Name :

Mr. Rakesh Merta

Designation :

Accounts Manager

Date :

19.07.2011

 

 

LOCATIONS

 

Registered Office / Factory  :

Near Railway Station, Ranavav – 360 560, Gujarat, India

Tel. No.:

91-2801-230824/27/28/29 

Fax No.:

91-2801-230830/230617 

E-Mail :

scl-mum@mehtagroup.com

Website :

www.mehtagroup.com

 

 

Corporate Office :

N. K. Mehta International House, 3rd Floor, 178, Backbay Reclamation, Mumbai - 400 020, Maharashtra, India

Tel. No.:

91-22-66365444/66365390

Fax No.:

91-22-66365445

 

 

Marketing Office :

Pelican, 7th Floor, Gujarat Chambers of Commerce and Industry Compound, Ashram Road, Ahmedabad - 380 009, Gujarat, India

Tel. No.:

91-79-2658 0135/0137/ 2658 9353

Fax No.:

91-79-2658 7265/2657 5453

 

 

Regional Offices :

Located at:

  • Mumbai
  • Bhavnagar
  • Rajkot
  • Surat
  • Vadodara
  • Junagadh

 

 

DIRECTORS

 

As On 31.03.2010

 

Name :

Mr. M N Mehta

Designation :

Chairman

 

 

Name :

Mr. Jay M Mehta

Designation :

Executive Vice Chairman

 

 

Name :

Mr. Hemang D. Mehta

Designation :

Director

 

 

Name :

Mr. M.N. Rao

Designation :

Director

 

 

Name :

Mr. S.V.S Raghavan

Designation :

Director

 

 

Name :

Mrs. Savita V. Pittie

Designation :

Director

 

 

Name :

Mr. K.N. Bhandari

Designation :

Director

 

 

Name :

Mr. B.P. Deshmukh

Designation :

Director

 

 

Name :

Mr. Jayant N. Godbole

Designation :

Director

 

 

Name :

Mr. Hemnabh Khatau

Designation :

Director

 

 

Name :

Mr. Bimal Thakkar

Designation :

Director

 

 

Name :

Mr. Devang Gandhi

Designation :

Alternate Director to Mr. Hemang D. Mehta

 

 

Name :

Mr. Denys Firth

Designation :

Nominee - India Debt Management Private Limited

 

 

Name :

Mr. Alexander Shaik

Designation :

Nominee - India Debt Management Private Limited

 

 

Name :

Mr. Anish Modi

Designation :

Nominee - India Debt Management Private Limited

 

 

Name :

Mr. Chetan Jain

Designation :

Alternate Director to Mr. Denys Firth

 

 

Name :

Mr. M.S. Gilotra

Designation :

Managing Director

 

 

Name :

Mr. R.K. Poddar

Designation :

Dy. Managing Director

 

 

KEY EXECUTIVES

 

Name :

Mr. V R Mohnot 

Designation :

Director (Finance) and 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

215,578

0.42

Bodies Corporate

149,017

0.29

Sub Total

364,595

0.71

(2) Foreign

 

 

Bodies Corporate

32,610,166

63.70

Sub Total

32,610,166

63.70

Total shareholding of Promoter and Promoter Group (A)

32,974,761

64.42

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

1,250

-

Financial Institutions / Banks

1,006,194

1.97

Insurance Companies

799,433

1.56

Foreign Institutional Investors

1,810

-

Sub Total

1,808,687

3.53

(2) Non-Institutions

 

 

Bodies Corporate

1,989,626

3.89

Individuals

 

 

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

1,970,408

3.85

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

2,043,019

3.99

Any Others (Specify)

10,404,564

20.32

Foreign Corporate Bodies

10,029,100

19.59

Clearing Members

33,221

0.06

Non Resident Indians

342,243

0.67

Sub Total

16,407,617

32.05

Total Public shareholding (B)

18,216,304

35.58

Total (A)+(B)

51,191,065

100.00

(C) 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)

51,191,065

-

 

 

BUSINESS DETAILS

 

Line of Business :

manufacturer of Ordinary Portland Cement and Pozzolana Portland Cement

 

 

Products :

Item Code No

Product Description

2232901

Cement Ordinary Portland Cement

2231000

Clinker

 

 

  • Hathi OPC 43 Grade
  • Hathi OPC 53 Grade
  • Hathi PPC 53P Grade
  • Chootu Hathi 1 K. G
  • Chhotu Hathi 5 K.G

 

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

 

Unit

Installed Capacity

Actual Production

Cement

 

Tones

1501000

1607395

Clinker

 

 

--

1611530

 

 

GENERAL INFORMATION

 

Bankers :
  • Dena Bank
  • Central Bank of India
  • Rajkot Nagarik Sahakari Bank Limited

 

 

Facilities :

Secured Loans

31.03.2010 (Rs. In Millions)

31.12.2008 (Rs. In Millions)

Debentures - Non-Convertible

 

 

a) Public Debentures

311.155

344.733

b) Privately Placed Debentures

0

0

I. 9,00,000 12% Debentures of Rs. 86.88 each (Previous period Rs. 96.25 each)

78.187

86.625

Term Loans:

 

 

a) From Financial Institutions

204.031

215.177

b) From Banks

438.757

473.721

c) From Others

1479.915

2161.023

Others:

 

 

a) From Banks:

 

 

i. Cash Credits

17.860

71.908

ii. Working Capital Demand Loan

42.914

0.000

b) From Hire Purchase Creditors:

11.768

17.153

Total

2584.587

3370.340

 

 

(I) Debentures:

(a) Debentures under part I (a) together with interest thereon, remuneration of the Trustees, and other amounts payable in respect thereof, are secured by way of pari-passu second mortgage in favour of the Trustees on the Company’s immovable and movable properties, both present and future situated at Ranavav (Gujarat), save and except on the equipment / movables assets secured by specific charge of such other lenders financing them and shall rank subservient

to existing charges created / to be created in favour of specific and first charge holders. It is also secured by personal guarantee of two Directors of the Company.

 

(b) Debentures under part I (b) together with interest thereon, remuneration of the Trustees, and other amounts payable in respect thereof, are secured by way of pari-passu fi rst mortgage in favour of the Trustees on the Company’s immovable and movable properties, both present and future situated at Ranavav (Gujarat), save and except on stocks, spares and book debts for securing borrowings for working capital (on which they will have second charge) and on the equipment / movable assets secured by specific charge of such other lenders financing them and shall rank subservient to existing charges created / to be created in favour of specific charge holders. It is also secured by personal guarantee of two Directors of the Company.

 

(II) Term loans:

(a) From Financial Institutions:

(i) Term loans from Institutions together with funded interest term loans, are secured by way of pari-passu first mortgage on the Company’s immovable and movable properties, both present and future situated at Ranavav (Gujarat), save and except on stocks, spares and book debts for securing borrowings for working capital (on which they will have second charge) on the equipment / movable assets secured by specific charge of such other lenders financing them and shall rank subservient to existing charges created / to be created in favour of specific charge holders. It is also secured by personal guarantee of two Directors of the Company.

 

(b) From Banks:

(i) Term loan of Rs.73.887 millions from Bank of India together with funded interest term loans Rs.30.308 millions, of Rs.240.156 millions from Dena Bank together with funded interest term loans Rs.76.573 millions, and funded interest term loan of Rs.1.624 millions from Rajkot Nagarik Sahakari Bank Limited, are secured by way of pari-passu first mortgage on the Company’s immovable and movable properties, both present and future situated at Ranavav (Gujarat), save and except on stocks, spares and book debts for securing borrowings for working capital (on which they will have second charge) and on the equipment / movable assets secured by specific charge of such other lenders financing them and shall rank subservient to existing charges created / to be created in favour of specific charge holders. It is also secured by personal guarantee of two Directors of the Company. The facility from Rajkot Nagarik Sahakari Bank Limited is further secured by shares of Gujarat Sidhee Cement Limited held by subsidiary companies.

 

(ii) Vehicle loans from ICICI Bank of Rs. 0.131 millions and HDFC Bank of Rs. 16.078 millions are secured by hypothecation of vehicles financed by them and personal guarantees by one of the directors of the Company.

 

(c) From others:

(i) Term Loans from India Debt Management Private Limited (assigned by IFCI to IDM) together with Funded Interest Term Loans, amounting to Rs. 364.722 millions, are secured by pari-passu first charge on the Company's immovable and movable properties, both present and future situated at Ranavav (Gujarat), save and except on stocks, spares and book debts for securing borrowings for working capital (on which they will have second charge) and on the equipment / movable assets secured by specific charge of such other lenders financing them and shall rank subservient to existing charges created / to be created in favour of specifi c charge holders. It is also secured by personal guarantee of two Directors of the Company.

 

(ii) Term Loans from India Debt Management Private Limited, amounting to Rs. 1003.648 millions, are secured by way of pari-passu first mortgage on the Company’s immovable and movable properties, both present and future situated

at Ranavav (Gujarat), save and except on stocks, spares and book debts for securing borrowings for working capital (on which they will have second charge) and on the equipment / movable assets secured by specific charge of such other lenders financing them and shall rank subservient to existing charges created / to be created in favour of specific charge holders.

 

(iii) Other Funded Interest Term Loans amounting to Rs. 110.964 millions, are secured as mentioned above in para (II) a (i) above.

 

(iv) Vehicle loans from Reliance Capital Financial Services Limited Rs. 0.581 millions, is secured by hypothecation of vehicles financed by them and personal guarantees by one of the directors of the Company.

 

(III) Other Secured Loans:

A. From Banks:

(i) The working capital facilities from Central Bank of India, Dena Bank and Rajkot Nagarik Sahakari Bank Limited, are secured by first charge by way of hypothecation of the current assets namely, stocks of raw materials, semi finished and finished goods, consumable stores and spares, bills receivables, book debts and all other movables, both present and future. It is also secured by second mortgage and charge on the Company’s immovable and movable properties both present and future. They are also secured by personal guarantee of two Directors of the Company. The facility from Rajkot Nagarik Sahakari Bank Limited is further secured by shares of Gujarat Sidhee Cement Limited held by subsidiary companies.

 

B. From Hire Purchase Creditors:

(i) Equipment Loans from SREI Infrastructure Finance Limited are secured by hypothecation of assets financed by them and personal guarantees by one of the directors of the Company.

 

(IV) All the aforementioned borrowings except para II (b) (ii), II (c) (iv) and III B (i) are further secured by hypothecation of ‘Hathi’ brand on pari-passu first charge basis and pledge of promoter shares in favour of the Trustees.

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

Bansi S Mehta and Company 

Chartered Accountants 

 

 

Group Company :

  • Pranay Holdings Limited
  • Prachit Holdings Limited
  • Ria Holdings Limited
  • Reeti Investments Limited
  • Sameta Exports Private Limited
  • Agrima Consultants International Limited
  • Concorde Cement (Private) Limited
  • Mehta Private Limited
  • Gujarat Sidhee Cement Limited
  • Jagmi Investments Limited
  • Sierra Development Limited
  • Fawn Trading Company Private Limited
  • Fern Trading Company Private Limited
  • Willow Trading Company Private Limited
  • Tejashree Trading Company Private Limited
  • Pallor Trading Company Private Limited
  • Villa Trading Company Private Limited
  • The Mehta International Limited
  • TransAsia Investments and Trading Limited
  • Aber Investments Limited
  • Clarence Investments Limited
  • Glenn Investments Limited
  • Hopgood Investments Limited
  • Fawn Trading Company Private Limited
  • Romer Limited
  • Industrial Constructions Limited
  • Sampson Limited
  • Beverly Investment Inc.

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

130000000

Equity Shares 

Rs. 10/- each

Rs.1300.000 millions

6000000

Preference Shares

Rs. 100/- each

Rs. 600.000 millions

5000000

Unclassified shares

Rs. 10/- each

Rs. 50.000 millions

 

Total

 

Rs. 1950.000 Millions

 

Issued, Subscribed Capital :

No. of Shares

Type

Value

Amount

59095018

Equity Shares 

Rs. 10/- each

Rs. 590.950 millions

687595

13% Cumulative Preference Shares

Rs. 100/- each

Rs. 68.760 millions

 

Total

 

Rs. 659.710 Millions

 

Paid-up Capital :

No. of Shares

Type

Value

Amount

51191065

Equity Shares 

Rs. 10/- each

Rs. 511.911 millions

687595

13% Cumulative Preference Shares

Rs. 100/- each

Rs. 68.760 millions

15269

Forfeited Shares

 

Rs. 0.031 millions

 

Total

 

Rs. 580.702 Millions

 

Notes:

* Includes 30,00,000 Equity Shares of Rs. 10 each allotted as fully paid-up Bonus Shares by capitalisation of free reserves.

* Includes 30,00,000 Equity Shares of Rs. 10 each allotted on right basis in 1986-87, the allotment of which is subject to the final decision of the Delhi High Court, where petition is pending.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010 (15 months)

31.12.2008 (18 months)

30.06.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

580.702

580.702

481.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1606.407

1690.893

(270.300)

4] (Accumulated Losses)

(1714.691)

(2003.061)

0.000

NETWORTH

472.418

268.534

211.200

LOAN FUNDS

 

 

 

1] Secured Loans

2584.587

3370.340

3687.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

2584.587

3370.340

3687.000

DEFERRED TAX LIABILITIES

0.000

0.000

288.900

 

 

 

 

TOTAL

3057.005

3638.874

4187.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2625.589

1588.887

1753.300

Capital work-in-progress

827.734

2103.223

908.000

 

 

 

 

INVESTMENT

191.044

124.011

202.500

DEFERREX TAX ASSETS

472.999

558.992

777.900

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
323.139
392.550

368.700

 

Sundry Debtors
182.972
153.604

260.400

 

Cash & Bank Balances
175.736
170.138

1387.900

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
295.508
329.118

711.300

Total Current Assets
977.355
1045.410

2728.300

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

439.045
349.091

 

Current Liabilities
1469.869
1307.642

2124.200

 

Provisions
128.802
124.916

58.700

Total Current Liabilities
2037.716
1781.649

2182.900

Net Current Assets
(1060.361)
(736.239)

545.400

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3057.005

3638.874

4187.100

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010 (15 months)

31.12.2008 (18 months)

30.06.2007

 

SALES

 

 

 

 

 

Income

5740.286

7108.897

4081.247

 

 

Other Income

200.161

173.159

96.725

 

 

TOTAL                                    

5940.447

7282.056

4177.972

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing and Other Expenses

4736.194

6808.822

3446.790

 

 

Increase / Decrease in stocks

129.488

(77.807)

(19.185)

 

 

TOTAL                                    

4865.682

6731.015

3427.605

 

 

 

 

 

 

PROFIT BEFORE INTEREST, DEPRECIATION AND EXCEPTIONAL ITEMS

1074.765

551.041

750.367

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

557.891

559.783

222.690

 

 

 

 

 

 

PROFIT BEFORE TAX, EXCEPTIONAL ITEMS AND DEPRECIATION AND AMORTISATION

516.874

(8.742)

527.677

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

296.581

267.824

177.605

 

 

 

 

 

 

PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS

220.293

(276.566)

350.072

 

 

 

 

 

 

Exceptional Gain/Loss

68.906

(267.726)

(103.001)

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

289.199

(544.292)

247.071

 

 

 

 

 

Less

TAX                                                                  (I)

88.392

(62.765)

24.163

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

200.807

(481.527)

222.908

 

 

 

 

 

Add

Liquidated Damages for Delayed Completion of Project

32.000

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2440.858)

(1959.331)

(2182.239)

 

 

 

 

 

Less

Amount withdrawn from Revaluation Reserve

87.563

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Capital Reserve

(32.000)

0.000

0.000

 

BALANCE CARRIED TO THE B/S

(2152.488)

(2440.858)

(1959.331)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1323.548

1906.489

NA

 

TOTAL EARNINGS

1323.548

1906.489

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Spares Parts and Components

87.683

52.677

NA

 

 

Capital Goods

4.979

311.794

NA

 

TOTAL IMPORTS

92.662

364.471

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

4.33

(9.67)

5.03

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

1016.490

721.240

898.380

1332.930

Total Expenditure

890.800

831.730

816.370

1125.960

PBIDT (Excl OI)

125.690

-110.490

82.010

206.970

Other Income

0.000

0.000

0.000

0.000

Operating Profit

125.690

-110.490

82.010

206.970

Interest

97.780

106.580

109.030

104.650

Exceptional Items

0.000

0.000

0.000

-3.120

PBDT

27.910

-217.070

-27.020

99.200

Depreciation

60.700

61.450

60.430

121.380

Profit Before Tax

(32.790)

-278.520

-87.450

-22.180

Tax

(10.890)

-45.470

-27.200

233.180

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

(21.900)

-233.050

-60.250

-255.360

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

(21.900)

-233.050

-60.250

-255.360

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010 (15 months)

31.12.2008 (18 months)

30.06.2007

PAT / Total Income

(%)
3.38

(6.61)

5.33

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.04

(7.66)

6.05

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.03

(20.66)

5.51

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.61

(2.03)

1.17

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
9.78

19.19

27.79

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.48

0.59

1.25

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS :
(Rs. in Millions)
Particulars 
31.03.2010
 
31.03.2009
 
31.03.2009
 
Sundry Creditors
 
 
 
 
 
NA
 
Dues to Micro, Small and Medium Enterprises
 
439.045
 
349.091
 
NA
 
Total
 
439.045
 
349.091
 
NA
 
 
 
INDUSTRY OVERVIEW:

During the year (15 months ended 31.03. 2010), cement consumption on All India basis is around 247.000 million tons compared to 251.970 million tons during the earlier year (18 months ended 31.03.2008). The installed capacity of the industry for the current members of CMA has increased by around 31 per cent from 165 million tons in December 2008 to around 16.000 million tons in March 2010. The total installed capacity in Gujarat has increased by around 17 percent from 19.070 million tons in December 2008 to 22.320 million tons in March 2010. Cement consumption in Gujarat is 17.800 million tons during the year (15 months ended 31.03.2010) compared o 17.240 million tons during the earlier year (18 months ended of 31.03. 2008). Exports of cement and clinker from Gujarat or the current members of CMA were at 4.470 million tons during the year, as against 5.780 million tons during the earlier ear (18 months ended 31.03.2008).

 

PERFORMANCE REVIEW:

Production and Despatches:

The production of Clinker for the year was 1.610 million tons as against 1.980 million tons in the earlier year of 18 months ended 31.03.2008. Production of Cement during the year was 1.620 million tons as compared to 1.960 million tons in the earlier year of 18 months ended 31.03.2008. The total sale of cement and clinker during the year as 1.87 million tons as compared to 2.130 million tons in the earlier year of 18 months ended 31.03.2008.

 

Exports and Marketing

The Company exported 0.430 million tons of cement and clinker during the year as compared to 0.520 million tons n the earlier year of 18 months ended 31.03.2008. The prevailing recessionary trends in the middle east, restricted the export volumes to Middle East.

 

CORPORATE DEBT RESTRUCTURING

The Company’s debt were restructured under the aegis of Corporate Debt Restructuring Scheme of Reserve Bank of India, which was confirmed by Gujarat High Court u/s 391, 394 of the Companies Act, 1956.

 

BIFR

The Company is Sick Industrial Company, pursuant to Section 3(1)(o) of The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and is registered with Board for Industrial and Financial Reconstruction (BIFR).

The Company has submitted draft Rehabilitation Scheme envisaging relief’s and concessions from the secured lenders (in line with sanctioned CDR Scheme) and Govt. of Gujarat, which has been circulated by IFCI (Operating Agency) to the secured lenders and BIFR. The matter is awaiting consideration by BIFR.

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

Industry Structure and Development:

The extended financial year ended on 31.03.2010 closed under challenging circumstances. Rising energy and commodity prices drove the inflation, which was further impacted by the global financial turmoil. The Central Government initiated various steps to minimize the impact of global crisis. India is the second largest producer of cement in the world with a capacity of 216 million tons as on March 2010.

 

To arrest the sudden financial crisis and liquidity crunch and to revive the Indian economy, the Government has taken several measures by announcing various fiscal stimulus measures, cut in excise rates, increased investment in infrastructure projects.

 

The Company’s primary market, Gujarat, is witnessing significant investments in infrastructure, industrial projects, ports, roads, etc. Intention of investment of over Rs. 12,000 billion has been announced under the Vibrant Gujarat initiative of the Government assuming a reasonable demand growth in Gujarat.

 

 

Future Outlook:

Cement demand is expected to remain buoyant with increased domestic consumption, both in the government and private sector. With the economy having recovered from the slow down, revival in the real estate and corporate capex are also expected to add to the buoyancy in demand.

 

Segment Review and Analysis

The Company has a single segment, which is cement. However the Company produces a variety of cement products, which include Ordinary Portland cement (OPC), Portland Pozzolana Cement (PPC) and Sulphate Resistant Cement (SRC), which are well accepted in the domestic as well as export markets.

 
 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010

Rs. In Millions

Particulars

Three months ended 31.12.2010 (Unaudited)

Nine Months ended 31.12.2010 (Unaudited)

a) Sales / Income from Operations

986.974

2881.973

Less: Excise Duty

108.848

293.242

Net Sales

878.126

2588.731

b) Other Operating Income

20.258

47.378

Sub Total

898.384

263.109

Total Expenditure

 

 

(a) (Increase)/decrease in Stock in Trade

(78.128)

(155.525)

(b) Consumption of Raw Materials

84.410

249.106

(c) Trading Goods Purchased

44.187

110.511

(d) Stores and Repairs

59.028

263.894

(e) Staff Cost

55.637

171.845

(f) Depreciation

60.434

182.583

(g) Freight Outward

147.953

401.708

(h) Power and Fuel

358.924

1088.952

(i) others

144.365

408.418

Sub Total

876.810

2721.492

Profit/(Loss) before Interest and Exceptional items

21.574

(85.383)

Interest

109.026

313.384

Profit before Exceptional items

(87.452)

398.767)

Exceptional Items

-

-

Profit / (Loss) From Ordinary activities

(87.452)

(398.767)

Provision for Taxation

-

-

Differed tax liability / (Asset)

(27.198)

(83.563)

Tax Expenses

(27.198)

(83.563)

Net Profit/(Loss) From Ordinary activities after Tax

(60.254)

(315.204)

Add: Compensation for liquidated damages

-

-

Net Profit/(Loss) after tax

(60.254)

(315.204)

Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )

511.911

511.911

Reserves (Excluding Revaluation Reserves)

 

 

Debenture Redemption Reserve to data and for the previous year (not to be annualised)

(.22)

(6.29)

Aggregate of non-promoters shareholding

 

 

- Number of Shares

18215054

18215054

- Percentage of shareholding

35.58%

35.58%

Promoters and Promoter group share holding

 

 

a) Pledged / Encumbered

 

- Number of Shares

32759183

32759183

- Percentage of share (as a % of the total shareholding of promoter and promoter group)

99.34%

99.34%

- Percentage of shares(as a % of the total share capital of the company)

63.99%

63.99%

b) Non-encumbered

 

- Number of Shares

216828

216828

- Percentage of Share (as a % of the total shareholding of promoter and promoter group)

0.66%

0.66%

 - Percentage of Share (as a % of the total share capital of the company)

0.43%

0.43%

 
 
Notes:
  1. The company has only one business segment cement / clinker as primary segment. The breakup of sales on secondary geographical segment is given below. 

 

Particulars

Three months ended 31.12.2010 (Unaudited)

Nine Months ended 31.12.2010 (Unaudited)

Sales:

Domestic (India) including sales to SEZ (net of excise duty) export

845.200

32.926

2245.823

342.908

 

878.126

2588.731

 

  1. The status of investors complaints/correspondence:

As On 01.10.2010

Received

Disposed

As on 31.12.2010

Nil

0.500

0.500

Nil

 

  1. Previous period's figures have been regrouped and / or rearranged wherever necessary to make them comparable with Current period's figures.

 

  1. The above unaudited Financial Results for the third quarter and Nine months ended 31.12.2010, were  reviewed by the Audit Committee, approved by the Board of Directors at their meeting held on February 4, 2011 and have been subjected to limited review by the statutory auditors 
 
 
Fixed Assets:
·                      Freehold land
·                      Leasehold land
·                      Buildings
·                      Jetty – civil works
·                      Railway siding and weigh bridge 
·                      Water supply installation
·                      Electric installation 
·                      Plant and machinery 
·                      Rolling stock and locomotives
·                      Furniture and fixtures
·                      Office equipments
·                      Motor cars, trucks etc
·                      Air conditioner

 

website details:-

 

History

 

1900-1930

·         Development of industries in Uganda: tea plantation, ginnery, sugarcane plantation, sugar factory.

 

1930-1940

·         Having established in East Africa, beginning of operations in India. Textile mill and ginning factory set up in Porbandar(Gujarat) and trading company in Bombay.

 

1950-1960

·         Cement plant (Saurashtra Cement Limited) established in 1956

 

1970 and 1980

·         This decade represents a great turning point in the history of the Group:

·         Expulsion of Asians by Idi Amin in 1972

·         Consultancy wing in India and plastics unit set up in Canada

·         Expansion of Group in terms of size, value and geographical spread.

·         1979: Recalled to Uganda

 

1980 and 1990

·         Active period for Agrima Consultancy wing - consultancy to Ethiopia, Cameroon, Sudan, Burundi, Nigeria and in Asia to Nepal, Sri Lanka and Myanmar.

·         Rehabilitation of all Ugandan companies.

·         2nd cement plant put up - Gujarat Sidhee Cement Limited, formerly Cement Corporation of Gujarat Limited

 

1990 -2000

·         Successful foray into the field of finance and banking with the establishment of Transafrica Assurance Company Limited.

·         Modernisation and expansion of cement plants in India.

 

2000-2010

  • Total privatization of all companies in Uganda with the Mehta Group buying out the Government stake.
  • Addition of new distillery of 30,000 liters per day in Uganda
  • Expansion of Sugar Corporation of Uganda Limited (SCOUL)'s capacity to 3,000 tons cane per day
  • Enhancing the Infrastructural capabilities in India:
  • Captive jetty at Porbandar Port which can berth ships up to 37,000 DWT; with a loading capability of 20,000 Ts, equipped with two cement silos and fully mechanized loading facilities.
  • 25 megawatt Thermal Power Plant at Saurashtra Cement, with multiple fuel options; can provide the complete power requirements for the entire cement plant operations.

 

 

Company Profile

Subject is the flag ship company of The Mehta Group, formed in 1956. subject is one of the leading players in the Indian cement industry, manufacturing Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC). Also added Sulphate Resistant Cement (SRC) and Portland Slag Cement (PSC) to its product range.

 


Subject markets cement under the brand name "HATHI CEMENT". The product is marketed in 50 kg bag, packed in HDPE/PP or paper bags. The product is identified in the market by a special greenish tinge to give superior finish on external surface. Keeping in tune with the recent market trends, the company has launched cement packed in 1 kg, 2 kg, 5 kg and 10 kg bags in the retail cement market under the brand name “CHHOTU HATHI”


The company plant at Ranvav, located in Gujarat state has a cement manufacturing capacity of 1.4 MTPA. Subject plant at Ranvav is a modern energy efficient dry process based plant comparable to international standards and makes use of latest machinery sourced from reputed international companies. The plant offers locational advantages because of its proximity to the Porbandar and Veraval/Okha ports. Subject thus has competitive access to the large export markets in the Middle East countries, Sri Lanka and Bangladesh by the economical sea route.

 

Subject modernization scheme implemented in the past has paid the results. State-of-the-art equipment and control systems installed has led to capacity enhancement, reduction in power and fuel consumption and improvement in quality and emission levels.

 

 

 

 

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 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.44.43

UK Pound

1

Rs.71.90

Euro

1

Rs.63.41

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

1

PAID-UP CAPITAL

1~10

1

OPERATING SCALE

1~10

1

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

---

--PROFITABILIRY

1~10

---

--LIQUIDITY

1~10

---

--LEVERAGE

1~10

---

--RESERVES

1~10

---

--CREDIT LINES

1~10

---

--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

 

3

 

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.