MIRA INFORM REPORT

 

 

Report Date :

30.06.2011

 

IDENTIFICATION DETAILS

 

Name :

BOMBAY BURMAH TRADING CORPORATION LIMITED

 

BCL SPRINGS (DIVISION OF THE BOMBAY BURMAH TRADING CORPORATION LIMITED)

 

 

Registered Office :

9, Wallace Street, Fort, Mumbai – 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

09.04.1863

 

 

Com. Reg. No.:

11-000002

 

 

Capital Investment / Paid-up Capital :

Rs.139.627 Millions

 

 

CIN No.:

[Company Identification No.]

L99999MH1863PLC000002

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing, Processing and Selling of Tea, Coffee and other Plantation Products.

 

 

No. of Employees :

Not Divulged by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (65)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 3100000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old and well established company having fine track records. Financial position of the company appears to be sound. Trade relations are reported to be correct and as per commitments.

 

The company can be considered good for normal 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.

 

INFORMATION DECLINED BY

 

Note : Management non co-operative [ Name not Disclosed]

 

 

LOCATIONS

 

Registered Office :

9, Wallace Street, Fort, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-22079351

E-Mail :

bbtcl@bom2.vsnl.net.in

sales@bclsprings.com

Website :

www.bclsprings.com

 

 

Tea and Coffee Estates :
  • Mudis Group of Estates, Mudis P.O. – 642117, Coimbatore District, Tamilnadu, India

 

  • Singampatti Group of Estates – Manjolai, P.O. – 627420, Tirunelvedi District, Tamilnadu, India

 

 

  • Dunsandle Estate – Dunsandle P.O., Ootacamund – 643005, Nilgiri District, Tamilnadu, India

 

 

  • Elk Hill Group of Estates – Post Box No. 12, Sidapur, P. and T.O. – 571253, South Coorg, Karnataka, India

 

 

  • Usambara Group, Marvera and Herkulu Estates, P.O. Box. 22, Soni, Tanzania.

 

 

Sunmica Division :

Plot No. 23 to 26, and 46 to 48, Sector 5, II E, Pant Nagar Industrial Estate, Rudrapur, Udhamsingh Nagar, Uttarakhand – 263153, India

 

 

BCL Springs :

F-13, MIDC Industrial Area, Chikalthana, Aurangabad – 431210, Maharashtra, India

Tel. No. : 91-240-6637000

Fax No. : 91-240-6637277

 

K-103, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India

Tel. No. : 91-240-2551328 / 2553087

Fax No. : 91-240-2553088

 

 

Weighing Products :

Plot 304, GIDC, Valsad Industrial Estate, Gundlav, Valsad – 396035, Gujarat, India

 

 

Dental Products :

Sector 5, II E, Pant Nagar Industrial Estate, Rudrapur, Udhamsingh Nagar, Uttarakhand – 263153, India

 

 

Malaysian Branch :

Suite 628, 6th Floor, Pan Global Plaza, Jalan Wong Ah Fook 80000, Johar Bahru, Malaysia

 

 

DIRECTORS

 

As on : 31.03.2010

 

Name :

Mr. Nusli N. Wadia

Designation :

Chairman

 

 

Name :

Mr. A.K. Hirjee

Designation :

Vice Chairman

 

 

Name :

Mr. Keshub Mahindra

Designation :

Director

 

 

Name :

Mr. M.L. Apte

Designation :

Director

 

 

Name :

Mr. D.E. Udwadia

Designation :

Director

 

 

Name :

Mr. P.K. Cassels

Designation :

Director

 

 

Name :

Mr. B.N.B. Tao

Designation :

Director

 

 

Name :

Mr. Ishaat Hussain

Designation :

Director

 

 

Name :

Mr. Ness Wadia

Designation :

Director (w.e.f. 28.04.2010)

 

 

Name :

Ms. Vinita Bali

Designation :

Director (w.e.f. 28.04.2010)

 

 

Name :

Mr. A. Panjwani

Designation :

Managing Director

 

 

Name :

Mr. J.N. Wadia

Designation :

Deputy Managing Director

 

 

KEY EXECUTIVES

 

Name :

Mr. N.H. Datanwala

Designation :

Vice President Corporate and Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3,400

0.02

Bodies Corporate

7,965,448

57.08

Sub Total

7,968,848

57.11

(2) Foreign

 

 

Individuals (Non-Residents Individuals / Foreign Individuals)

1,228,301

8.80

Sub Total

1,228,301

8.80

Total shareholding of Promoter and Promoter Group (A)

9,197,149

65.91

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

150

-

Financial Institutions / Banks

18,590

0.13

Insurance Companies

161,137

1.15

Foreign Institutional Investors

19,709

0.14

Sub Total

199,586

1.43

(2) Non-Institutions

 

 

Bodies Corporate

489,368

3.51

Individuals

 

 

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

2,559,679

18.34

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

247,647

1.77

Any Others (Specify)

1,260,951

9.04

Trusts

6,350

0.05

Non Resident Indians

108,441

0.78

Overseas Corporate Bodies

1,132,140

8.11

Foreign Banks

20

-

Foreign Nationals

14,000

0.10

Sub Total

4,557,645

32.66

Total Public shareholding (B)

4,757,231

34.09

Total (A)+(B)

13,954,380

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)

13,954,380

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing, Processing and Selling of Tea, Coffee and other Plantation Products.

 

 

Products :

Particulars

ITC Code

Tea

09024000

Springs

84639002

Laminates

48071000

 

 

 

PRODUCTION STATUS As on 31.03.2010

 

Particulars

Unit

*Installed Capacity

Tea/Green Leaf

Kgs.

15613320

Phenolic Laminates

M.T.

12400

Precision Springs

Kgs.

8740000

Weighing Products

Nos.

2000

 

Note : * As certified by the Management.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Divulged by the management

 

 

Bankers :
  • Axis Bank Limited
  • HDFC Bank Limited
  • The Bank of Rajasthan Limited

 

 

Facilities :

Secured Loans

31.03.2010

(Rs. in Millions)

31.03.2009

(Rs. in Millions)

Loans and Advances from Banks

(Cash Credit/Overdraft Accounts (Secured by hypothecation of all

stocks of Raw Materials, Finished Goods, Semi-finished Goods, Goods- in-process, Stores and Book Debts, both present and future and further secured by charge on property/investments)

26.915

118.774

Term Loans

Term Loans and other facilities sanctioned from a Bank aggregating to Rs. 1800.000 Millions are secured by way of an Equitable Mortgage by Deposit of title deeds of Mudis and Singampatti Estates together with Buildings and structures thereon and all plant and machinery permanently attached to the earth and by way of hypothecation of current assets including inventories and receivables, present and future, subject to the prior charges created in favour of the Corporation's bankers for working capital requirements. The said facilities are further secured by way of any equitable mortgage by deposit of title deeds off leasehold land at Akurdi, Pune.

 

Term Loan and other facilities sanctioned from a Bank aggregating to Rs. 1510.000 Millions are secured by an extension of first charge on Elkhill estates and exclusive charge on Fixed Assets including land of Sunmica Division at Rudrapur, Uttaranchal and also by way of first charge on BCL Springs Division at Aurangabad as collateral. Additional Term Loan sanctioned from the said Bank aggregating to Rs. 1000.000 Millions (availed during the year - Rs. 550.000 Millions) is to be secured by extension of exclusive first charge over Elk-hill estate and extension of first charge on BCL Springs Division at Aurangabad.

 

Term Loan facilities from a Bank aggregating to Rs. 600.000 Millions are secured by way of an equitable mortgage by deposit of title deeds of Dunsandle estates together with buildings and structures thereon and hypothecation of plant and machinery and vehicles.

2404.114

3399.662

Hire Purchase Loan

7.092

5.637

Unmatured Finance Charges

(0.923)

(0.964)

Total

2437.198

3523.109

 

 

 

Unsecured Loans

31.03.2010

(Rs. in Millions)

31.03.2009

(Rs. in Millions)

Intercorporate Deposits

1.300

0.800

Short Term Loan from Bank

300.000

0.000

Other Loans : from Others

0.029

0.053

Total

301.329

0.853

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

31, Nutan Bharat Society, Alkapuri, Vadodara – 390007, Gujarat, India

 

 

Solicitors :

 

Name 1 :

Crawford Bayley and Company

Address :

State Bank Building, 4th Floor, Hutatma Chowk, Fountain, Mumbai – 400001, Maharashtra, India

 

 

Name 2 :

Udwadia and Udeshi

Address :

Elphinstone House, 1st Floor, 17, Murzban Road, Fort, Mumbai – 400001, Maharashtra, India

Memberships :

 

 

 

Associates :
  • Lotus Viniyog Private Limited
  • Inor Medical Products Limited
  • Medical Microtechnology Limited

 

 

Subsidiaries :
  • Afco Industrial and Chemicals Limited
  • DPI Products and Services Limited
  • Sea Wind Investments and Trading Company Limited
  • PT Indo Java Rubber Planting Company
  • Leila Lands Senderian Berhad
  • Electromags Automotive Products Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15000000

Equity Shares

Rs.10/- each

Rs.150.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

13954380

Equity Shares

Rs.10/-each

Rs.139.544 Millions

 

Add : Forfeited Shares – Amount paid-up

 

Rs.0.083 Million

 

 

 

 

 

Total

 

Rs.139.627 Millions

 

Notes :

 

Of the above —

  1. 25,000 Shares of Rs. 107- each are allotted as fully paid-up pursuant to a contract without payment being received in cash and 1,25,000 Shares of Rs. 107- each are allotted as fully paid-up pursuant to the Scheme of Arrangement for relinquishment of special rights attached to the original shares.

 

  1. 1,07,94,377.50 Shares of Rs. 107- each are allotted as fully paid-up by way of Bonus Shares by capitalisation of General Reserve and Securities Premium Account.

 

  1. On 10,50,000 Shares of Rs. 107- each a sum of Rs. 67- per share was credited by way of Bonus by capitalisation of Reserves.

 

 

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

139.627

139.627

139.627

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

647.930

576.403

742.963

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

787.557

716.030

882.590

LOAN FUNDS

 

 

 

1] Secured Loans

2437.198

3523.109

2700.196

2] Unsecured Loans

301.329

0.853

0.045

TOTAL BORROWING

2738.527

3523.962

2700.241

DEFERRED TAX LIABILITIES

28.928

61.494

53.266

 

 

 

 

TOTAL

3555.012

4301.486

3636.097

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

995.647

963.158

943.074

Capital work-in-progress

36.860

20.149

17.502

 

 

 

 

INVESTMENT

1067.322

1067.391

1185.662

DEFERREX TAX ASSETS

0.000

0.000

0.000

Foreign Currency Monetary Item Translation Difference

12.745

265.459

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
859.241

709.421

647.401

 

Sundry Debtors
560.299

540.389

547.932

 

Cash & Bank Balances
146.403

558.968

393.183

 

Other Current Assets
3.126

113.153

9.257

 

Loans & Advances
491.997

468.518

395.623

Total Current Assets
2061.066

2390.449

1993.396

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
486.330

317.074

345.768

 

Other Current Liabilities
47.049

53.064

49.893

 

Provisions
85.249

34.982

107.876

Total Current Liabilities
618.628

405.120

503.537

Net Current Assets
1442.438

1985.329

1489.859

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3555.012

4301.486

3636.097

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

2938.816

2569.056

2260.966

 

 

Other Income

194.290

332.369

240.603

 

 

TOTAL                                     (A)

3133.106

2901.425

2501.569

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Materials Consumed

1211.779

997.080

871.842

 

 

Purchase of Trading Goods

91.392

81.315

150.244

 

 

Operation and Other Expenses

971.861

822.792

682.110

 

 

Payments to and Provision for Employees

513.536

474.169

383.107

 

 

Cost Relating to Real Estate Division

2.002

1.872

2.679

 

 

Loss on Exchange

84.837

216.512

0.000

 

 

Long Term Investment Written Off

0.000

118.888

0.000

 

 

Increase in Stocks

(143.823)

(1.995)

6.711

 

 

TOTAL                                     (B)

2731.584

2710.633

2096.693

 

 

 

 

 

Less

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

401.522

190.792

404.876

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

198.314

237.495

206.721

 

 

 

 

 

 

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

203.208

(46.703)

198.155

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

80.578

77.364

70.085

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

122.630

(124.067)

128.070

 

 

 

 

 

Less

TAX                                                                  (I)

(13.925)

14.686

23.331

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

136.555

(138.753)

104.739

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

0.000

124.478

98.717

 

 

 

 

 

Add

Transfer from General Reserve

0.000

30.601

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

14.000

0.000

30.000

 

 

Dividend

48.840

13.954

41.863

 

 

Tax on Dividend

8.112

2.372

7.115

 

BALANCE CARRIED TO THE B/S

65.603

0.000

124.478

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

331.283

285.438

192.173

 

 

Dividend Earnings

126.950

48.091

69.437

 

 

Other Earnings

0.000

2.360

0.354

 

TOTAL EARNINGS

458.233

335.889

261.964

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

259.554

253.189

167.319

 

 

Stores & Spares

4.150

5.843

6.120

 

 

Capital Goods

0.129

4.050

15.839

 

 

Others

7.248

21.940

21.944

 

TOTAL IMPORTS

271.081

285.022

211.222

 

 

 

 

 

 

Earnings Per Share (Rs.)

9.79

(9.94)

7.51

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2010

(1st Quarter)

30.09.2010

(2nd Quarter)

31.12.2010

(3rd Quarter)

31.03.2011

(4th Quarter)

Net Sales

808.490

846.240

804.770

1506.320

Total Expenditure

679.420

706.340

694.270

708.860

PBIDT (Excl OI)

129.070

139.900

110.500

797.460

Other Income

6.130

5.470

7.910

21.5700

Operating Profit

135.200

145.370

118.410

819.030

Interest

45.740

44.970

48.410

42.400

Exceptional Items

59.970

4.200

(1.790)

(49.800)

PBDT

149.430

104.600

68.210

726.830

Depreciation

22.100

20.300

21.810

24.350

Profit Before Tax

127.320

84.290

46.400

702.480

Tax

28.300

17.900

13.200

135.670

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

99.020

66.390

33.200

566.810

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

99.020

66.390

33.200

566.810

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.36

(4.78)

4.19

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.17

(4.83)

5.66

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.01

(3.70)

4.36

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16

(0.17)

0.15

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
4.26

5.49

3.63

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.33

5.90

3.96

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS :

(Rs. In Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

 

 

 

 

Total Outstanding dues of micro enterprises and small enterprises

1.464

1.520

0.000

Total outstanding dues of creditors other than micro enterprises

and small enterprises

484.866

315.554

309.386

 

 

 

 

Total

486.330

317.074

309.386

 

OPERATIONS

 

During the year, the Corporation achieved a gross income of Rs. 3136.900 Millions which represents an increase of 8% over the previous year.

 

There was a marked improvement in the performance of both the Plantation and Industrial Divisions. Increase in production of Tea and Coffee and higher average price realizations contributed to the substantial improvement in the performance of the Plantation Division. In the Industrial Division, BCL Springs achieved significant improvement in its performance because of higher volumes and reduced costs. Sunmica Division registered a modest growth in production and sales, but faced margin pressure owing to increase in input costs. Health Care Division continued to perform satisfactorily.

 

Because of the appreciation of Rupee against US Dollar, the loss on account of Foreign Currency loans reduced considerably during the year and amounted to Rs. 84.837 Millions as against Rs. 216.512 Millions in the previous year. Steps are under way to convert the Foreign Currency Loans into Rupee Loans and no further losses are expected to be incurred in the account.

 

The improvement in performance by all Units helped to achieve profit after tax of Rs. 136.555 Millions as against a loss of Rs. 138.753 Millions in the previous year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

1. Business Segment

 

(a) Tea:

 

Industry Structure and Developments:

 

Indian crop declined by 3 million kgs. during Calendar Year (CY)'09, to close at 978 million kgs. as against the record crop of 981 million kgs. in CY'08. The decline reflected the lower crop harvested by South India, which was lower at 244 million kgs. in CY'09 as against 247 million kgs. recorded in the previous year. In spite of record harvests in August, early winter lead to a steep decline in the last few months of the year, negating earlier gains.

 

Indian exports in CY'09 declined by 5.7% to reach 191 million kgs.; a decline of 11.6 million kgs. South Indian exports continued to grow and recorded an increase of 5.8 million kgs.; an increase of 6.7%. Better demand particularly from Egypt and Iraq was forthcoming for South Indian teas. North Indian exports however were lower by 17.5 million kgs. The large shortfall in crop in Kenya and Sri Lanka helped to improve the prices of teas exported and average in CY'09 was higher by Rs. 18.83 per kg. Lower freights rates helped in further improving the net realization of these teas.

 

Imports of teas in CY'09 were higher by 25.5% at 25.5 million kgs. As against 20.3 million kgs. Imported in CY'08. The average price per kg. of the imports stood at Rs. 84.23 as against Rs. 79.90 in the previous year.

 

A strong domestic market along with higher exports of Orthodox teas exported during the year helped tea prices attain record levels. Retail price of tea in the domestic market moved up substantially and prices of packaged teas moved up after being stagnant for over 8 years. Higher stocks of plainer teas and revival of crops in Kenya and Sri Lanka could dampen the rally in the year ahead.

 

Outlook:

 

Good rainfall in all the major planting regions and the recovery of crop in Kenya and Sri Lanka is expected to rapidly increase availability of teas in the next few quarters. Large opening stocks, mainly comprising of plainer teas, along with lower exports due to a stronger rupee and higher Ocean Freights are expected to further increase stocks of the poorer teas. Exporters are expected to be interested mainly on Orthodox teas and better liquoring CTC. Strong domestic demand will continue and good liquoring CTC teas should have firm demand. The Corporation has worked on upgrading the overall quality profile of the teas produced and this will help in catering to the demand expected for the better liquoring teas. The world moving towards the theme of "Healthy Living" will help in further penetration of the Organic teas produced by the Corporation.

 

Performance Highlights:

 

Tea production by the Corporation showed a healthy growth of 10.72%, backed by good rains in the second and third quarter of Financial Year (FY)'10.

 

Strong Internal demand helped domestic sales to increase by 6.37% at price averages that were 17.09% higher. Organic Tea exports were lower by 6.08% mainly on account of the Global recession. The non-Organic exports gained marginally by 1.54% by volume and increased by 23.21% in value.

 

At the Auctions the quantity sold by the Corporation was higher by 8.09% and the price averages improved by 13.59%. The quantities sold through the South Indian Auctions declined by 25.09% whilst the price realization improved by 13.96%.

 

The overall tea sales showed an increase of 5.52% in volumes and 12.99% in value over the previous year.

 

(b) Coffee:

 

Industry Structure and Developments:

 

The world coffee output for 2009-10 as per ICO reports is expected to be 122 million bags (60 Kgs.) as against consumption of 132 million bags. Output was revised downward largely due to lower production in Central American countries and Vietnam due to adverse weather conditions.

 

Coffee stocks worldwide are low and this is an indication of better prices in the coming months.

 

Domestically Robusta crops have been much higher than estimated. This had impacted price levels in the month of February and March, 2010.

 

Arabica crops being low due to adverse weather conditions has resulted in increase in prices during the current months.

 

Performance Highlights:

 

Coffee Production from the plantations has reached a record high and surpassed previously recorded yields.

 

(c) Auto Ancillaries - BCL Springs:

 

Industry Structure and Developments :

 

Their Industry depends mainly on the Automobile Production in the country. The Automobile Industry has grown by overall 25.76% YOY.

 

Product wise performance :

 

Precision Springs:

The overall market share of BCL in the existing product range is expected to improve from 25% to 29%. Their market share in the Valve Spring and Clutch Springs is more than their competitors. BCL has 60% share in the Valve Spring for Passenger Car segment. Overall market share for Valve spring is 46% and Clutch Springs it is 56%.

 

Suspension Springs - Two/Three Wheelers :

Their market share was at 19% for the year. They have improved the volumes and they expect that there would be a growth due to increase in Bajaj production at Waluj.

 

Outlook :

 

The production of vehicles for 2010-11 is projected at 15 Million vehicles. The growth is estimated @ 10%. Given the size of the Indian market and the Demand Supply Gap for Industrial products, coupled with GDP growth momentum, there is a reasonable hope that demand would not by itself be a constraining factor.

 

The Division has planned sales of Rs. 1000.000 Millions for the year 2010-11. This includes growth in new business from existing customers as well as new business from new customers.

 

(d) Laminates:

 

Industry Structure and Developments:

 

The interior infrastructure segment comprises wood panel and decorative surfacing products such as tiles, paints, glass, plywood, decorative laminates among others.

 

The financial impact of the global meltdown which started in the second half of the year 2008-2009 continued to adversely affect the demand revival in the Real Estate Sector and Project Segment in the first half of the year 2009-10. During the second half of the financial year, there was a demand revival. However, laminate industry again got affected by a substantial increase in commodity/ raw material prices.

 

Performance Highlights:

 

During the financial year the Corporation increased its focus on selling Texture laminates in the upper end of the price segment and entered the low price segment of lower thickness categories to connect with the channel in Tier II and Tier III towns, thus encompassing both the high end and lower end of the market with the intention to cater to larger volumes.

 

The Corporation also augmented the colour pattern range to make the product more retail friendly for selling through the channel. It also started offering some of the favourite color patterns for the projects business in various segments of commercial project.

 

To cater to a larger base of dealers all across the country to make the product available across all segments, the Corporation shifted its focus to conduct business through distributors all over the country, in turn to cater to a large dealer base. The product was made available and visible at the point of sale on a larger base of dealers, making the brand closer to the customer.

 

Sunmica Division increased domestic volumes by 12% by augmenting its focus on retail sales by increasing its channel network. Exports of industrial laminates recorded an increase of 38%. However, decorative laminate exports remained subdued on account of the global recession.

 

The Division also augmented its expenditure on Brand building and Sales promotion to strengthen the Sunmica brand.

 

The factory efficiencies were improved substantially by installation of balancing equipment and introduction of stringent process control and monitoring systems. This led to substantial cost savings which partly compensated for the steep increase in input costs. However, the margins remained under pressure due to increase in raw material and other input costs.

 

2. Internal Control Systems and Adequacy:

 

The Corporation has adequate internal control procedures commensurate with its size and nature of business. These business control procedures ensure efficient use and protection of the resources and also compliance with the policies, procedures and statutory requirements. The internal control systems provide for well-documented guidelines, authorisation and approval procedures. The Corporation carries out audit through external agencies twice a year. The prime objective of such audit is to test the adequacy and effectiveness of all internal controls laid down by the management and to suggest improvements.

 

FIXED ASSETS

 

  • Land
  • Roads
  • Development – Plantations
  • Buildings
  • Plant and Machinery
  • Motor Vehicles and Tractors
  • Furniture and Fixtures

 

 

AUDITED FINANCIAL RESULTS FOR THE YESR ENDED 31ST MARCH, 2011

 

                                                                                                                                           (Rs. In millions)

Particulars

QUARTER ENDED 31ST MARCH 2011

(UNAUDITED)

YEAR  ENDED 31ST MARCH 2011

(AUDITED)

 (a) Net Sales/ Income from operation

787.463

3094.542

 (b) Other Operating Income

718.861

931.239

Total Income

1506.324

4025.781

 2. Expenditure

 

 

a. Increase(-) /Decrease(+) in Stock in trade and W.I.P.

(118.915)

(82.269)

b. Consumption of Raw-Materials

240.581

1275.646

c. Purchase of Traded Goods

86.755

107.290

d. Employees Cost

169.550

532.889

e. Depreciation

24.349

88.559

f.  Other Expenditure

330.885

940.482

g. Total

852.120

2944.866

3. Profit(+)/ Loss(-) from Operations before other Income Interest and Exceptional Item(1-2)

773.119

1163.184

4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss)

21.565

41.076

5. Profit(+)/ Loss(-) before Interest and Exceptional Item

794.684

1204.260

6. Interest

42.404

181.521

7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6)

752.280

1022.739

8. Exceptional Items

(49.797)

(62.246)

9. Profit(+)/ Loss (-) from ordinary activities  before Tax (7-8)

702.483

960.493

10. Tax Expenses

135.673

195.073

11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10)

566.810

765.420

12. Extraordinary Items

--

--

13. Net Profit (+)/ Loss(-) for the period (11-12)

566.810

765.420

14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share)

139.544

139.544

15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year

--

--

16. Earning per Share (EPS)

 

 

a) Basic and diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not  annualised)

40.62

54.85

b) Basic and diluted EPS after extraordinary items for the period,for the year to date and for the previous year (not  annualised)

40.62

54.85

17. Public Shareholding

 

 

Number of Shares

4757231

4757231

% of Share holding

34.09

34.09

18. Promoters and promoter group Shareholding

 

 

a) Pledged/Encumbered

 

 

 -   Number of shares

1473000

1473000

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

16.02

16.02

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

10.56

10.56

b) Non-encumbered

 

 

 -   Number of shares

7724149

7724149

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

83.98

83.98

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

55.35

55.35

 

 

SEGMENTWISE REVENUE RESULTS AND CAPITAL EMPLOYED

 

Particulars

QUARTER ENDED 31ST MARCH 2011

(UNAUDITED)

YEAR  ENDED 31ST MARCH 2011

(AUDITED)

SEGMENT REVENUE

 

 

Plantation

290.862

1102.685

Building Products

199.105

802.884

Auto Ancillary

285.177

1097.625

Investments

669.768

732.036

Healthcare

32.451

132.673

Horticulture

--

--

Food – Bakery and Dairy products 

--

--

Others

28.961

157.878

Total

1506.324

4025.781

Less – Inter Segment Revenue

--

--

Net Sales / Income from Operations

1506.324

4025.781

 

 

 

Segment Revenue

 

 

Plantation

44.150

159.710

Building Products

13.928

46.839

Auto Ancillary

56.811

172.194

Investments

669.768

732.036

Healthcare

6.107

28.719

Horticulture

--

--

Food – Bakery and Dairy products 

--

--

Others

27.813

80.966

Total

818.577

1220.464

Less: interest

(42.404)

(181.521)

Other un-allocable expenditure net

(31.088)

(119.526)

Un-allocable income

(42.602)

41.076

Less : Inter Segment Transaction

--

--

 

 

 

Total Profit/(Loss) Before Tax

702.483

960.493

 

 

 

Capital Employed

(Segment Assets – Segment Liabilities)

 

 

Plantation

912.845

912.845

Building Products

612.021

612.021

Auto Ancillary

508.551

508.551

Investments

1591.918

1591.918

Healthcare

72.847

72.847

Horticulture

--

--

Food – Bakery and Dairy products 

--

--

Others

216.646

216.646

Un-allocable

(2363.313)

(2363.313)

Sub Total

1551.515

1551.515

Less : Inter Segment Transaction

0.000

--

Total

1515.515

1551.5115

 

 

STATEMENT OF ASSETS AND LIABILITIES :

 

SOURCES OF FUNDS

 

Year ended 31st March 2011

SHAREHOLDERS FUNDS

 

1] Share Capital

139.627

3] Reserves & Surplus

1411.887

MINORITY INTEREST

0.000

LOAN FUNDS

2717.580

DEFERRED TAX LIABILITY

16.847

TOTAL

4285.910

ASSETS

 

 

 

FIXED ASSETS

1110.373

INVESTMENT

1067.706

FOREIGN CURRENCY MONETARY ITEM TRANSLATION

0.000

DIFFERENCE ACCOUNT

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

Inventories
961.545

 

Sundry Debtors
537.629

 

Cash & Bank Balances
130.242

 

Other Current Assets
4.809

 

Loans & Advances
1105.149

Less : CURRENT LIABILITIES & PROVISIONS
 

 

Other Current Liabilities
526.366

 

Provisions
105.146

MISCELLANEOUS EXPENSES

--

TOTAL

4285.941

 

 

1.       The above results have been reviewed and recommended by the Audit Committee of the Board and were approved by the Board of Directors on 27th May, 2011.

 

2.       The Directors have recommended a Dividend @ 70% i.e. Rs. 7/- per share for the year.

 

3.       Other income includes a) Rs.59.969 millions  (Previous year Rs.Nil) towards compensation received on transfer of Lease and b) Rs.6,69.391 millions (Previous Year Rs.Nil) being profit on sale of the Corporation's entire shareholding of 50.3% in P.T. Indo Java Rubber Planting Company (PTIJ), a subsidiary of the Corporation. As a result PTIJ has ceased to be a Subsidiary of the Corporation with effect from 17th March,2011.

 

4.       There were no Investors' complaints pending at the beginning of the quarter. The Corporation received 5 complaints during the quarter under review and the same were redressed. There are no Investors' complaints pending at the end of the quarter.

 

5.       Figures relating to previous period have been recast where necessary.

 

 

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]         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. 44.94

UK Pound

1

Rs. 71.91

Euro

1

Rs. 64.60

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

6

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

65

 

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.