MIRA
INFORM REPORT
|
Report Date : |
18.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE JEYPORE SUGAR
COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Ramakrishna Buildings, 239, Anna Salai, Chennai-600006,
Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
29.07.1936 |
|
|
|
|
Com. Reg. No.: |
18-11632 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L15421TN1936PLC011632 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
VPNT00188G /
CHET00339D |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Sugar, Industrial Alcohol and
Molasses. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 3000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is reputed and well established company having fine track.
Financial position of the company is good. Trade relations are fair. Business
is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
`Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
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 : |
Ramakrishna Buildings, 239, Anna Salai, Chennai-600006, |
|
Tel. No.: |
91-44-28411724 /28524849/28527978 |
|
Fax No.: |
91-44-28527978 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
VVS Sugars, No. 25501, Chagallu - 534342, |
|
|
|
|
Factory 2 : |
NVR Sugars, Jampani (Licensee Operations), Andhra Pradesh |
|
|
|
|
Factory 3 : |
E M Division, Rayagada, Orissa |
|
|
|
|
Factory 4 : |
Distillery Unit, Rayagada, Orissa, Ramkrishna Maize
Products, Tudiyalur, |
|
|
|
|
Factory 5 : |
Distillery Unit, Chagallu, W. G., Andhra Pradesh |
|
|
|
|
Factory 6 : |
Pothavaram., West Godavari
District, Andhra Pradesh - |
|
|
|
|
Branches : |
53/54, |
|
Tel. No.: |
91-422-215656 |
|
Fax No.: |
91-422-216565 |
DIRECTORS
(AS ON 31.03.2010)
|
Name : |
Mrs. Rajeswary Ramakrishnan |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
B.A |
|
|
|
|
Name : |
Mrs. Anita Prabhu |
|
Designation : |
Executive Director |
|
Qualification : |
B. Com |
|
|
|
|
Name : |
Mr. R. Prabhu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. A. Vedavalli |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Boppana Ramalingeswara Rao |
|
Designation : |
Director |
|
Qualification : |
M. A., L..L.B. |
|
|
|
|
Name : |
Mr. K. Muneswara Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S. R. K. Prasad |
|
Designation : |
Director |
|
Qualification : |
B. Tech, P. G.D.O.R, Morsi, Morss, D. Sc. |
|
|
|
|
Name : |
Mr. R. Kannan |
|
Designation : |
Director –
Nominee [ICICI] |
|
|
|
|
Name : |
Mr. K. Subramanian |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2010)
|
Names of Shareholders |
No. of Shares |
Percentage |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,651,035 |
36.41 |
|
|
380,098 |
8.38 |
|
|
2,031,133 |
44.79 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
2,031,133 |
44.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
31,424 |
0.69 |
|
|
31,424 |
0.69 |
|
|
|
|
|
|
121,986 |
2.69 |
|
|
|
|
|
|
707,726 |
15.61 |
|
|
131,440 |
2.90 |
|
|
1,510,819 |
33.32 |
|
|
9,587 |
0.21 |
|
|
2,010 |
0.04 |
|
|
1,498,729 |
33.05 |
|
|
493 |
0.01 |
|
|
2,471,971 |
54.51 |
|
Total Public shareholding (B) |
2,503,395 |
55.21 |
|
Total (A)+(B) |
4,534,528 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Sugar, Industrial Alcohol
and Molasses. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
About 2000
Approximately |
|
|
|
|
Bankers : |
·
Bank of
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Brahmayya and Company Chartered Accountant Vijaywada, Andhra Pradesh |
|
|
|
|
Associates/Subsidiaries : |
· Sri Rama Distilleries Limited
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000 |
15% Cumulative Preference Shares |
Rs. 100/- each |
Rs. 30.000 millions |
|
7000000 |
Equity Shares |
Rs. 10/- each |
Rs. 70.000 millions |
|
|
TOTAL |
|
Rs. 100.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4547256 |
Equity Shares |
Rs. 10/- each |
Rs. 45.472 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4534528 |
Equity Shares |
Rs. 10/- each |
Rs. 45.345 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 |
45.300 |
45.300 |
45.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
703.500 |
537.500 |
512.800 |
|
|
4] Revaluation Reserves |
0.300 |
0.300 |
0.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
749.100 |
583.100 |
558.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2706.100 |
2290.100 |
1878.700 |
|
|
2] Unsecured Loans |
124.900 |
127.600 |
105.000 |
|
|
TOTAL
BORROWING |
2831.000 |
2417.700 |
1983.700 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3580.100 |
3000.800 |
2542.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1333.900 |
1392.900 |
1461.300 |
|
|
Capital work-in-progress |
2189.300 |
1848.300 |
1226.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
2.000 |
2.000 |
2.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1574.000 |
1708.700 |
1915.200 |
|
|
Sundry Debtors |
37.700 |
91.900 |
79.300 |
|
|
Cash & Bank Balances |
123.900 |
71.100 |
171.600 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
545.700 |
523.800 |
736.100 |
|
Total Current Assets |
2281.300
|
2395.500 |
2902.200 |
|
|
Less :
CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors and Other Current Liabilities |
2068.000 |
2605.300 |
2803.600 |
|
|
Provisions |
158.400 |
38.400 |
257.700 |
|
Total Current Liabilities |
2226.400
|
2643.700 |
3061.300 |
|
|
Net Current Assets |
54.900
|
(248.200) |
(159.100) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
5.800 |
11.700 |
|
|
|
|
|
|
|
|
TOTAL |
3580.100 |
3000.800 |
2542.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1938.600 |
1789.000 |
2417.600 |
|
|
|
Other Income |
4.100 |
4.900 |
0.700 |
|
|
|
TOTAL (A) |
1942.700 |
1793.900 |
2418.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material |
1540.300 |
1036.200 |
1175.200 |
|
|
|
Power and Fuel Cost |
50.800 |
42.100 |
34.600 |
|
|
|
Employees Cost |
180.400 |
170.900 |
205.100 |
|
|
|
Other Manufacturing Expenses |
142.800 |
108.700 |
151.200 |
|
|
|
Selling and Administrative Expenses |
118.600 |
90.600 |
75.600 |
|
|
|
Miscellaneous Expenses |
28.600 |
35.800 |
36.900 |
|
|
|
Increase / (Decrease) in Stock |
(328.300) |
(61.500) |
121.500 |
|
|
|
TOTAL (B) |
1733.200 |
1422.800 |
1800.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
209.500 |
371.100 |
618.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
176.700 |
249.900 |
233.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
32.800 |
121.200 |
384.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
112.700 |
114.700 |
110.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(79.900) |
6.500 |
274.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(19.200) |
(23.400) |
81.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(60.700) |
29.900 |
192.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(13.38) |
6.60 |
42.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Audited / UnAudited |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
540.810 |
444.770 |
432.070 |
|
Total Expenditure |
540.500 |
510.820 |
369.450 |
|
PBIDT (Excl OI) |
0.310 |
(66.050) |
62.620 |
|
Other Income |
0.460 |
1.580 |
1.070 |
|
Operating Profit |
0.770 |
(64.480) |
63.690 |
|
Interest |
55.620 |
52.410 |
54.390 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(54.850) |
(116.880) |
9.300 |
|
Depreciation |
15.000 |
14.490 |
21.740 |
|
Profit Before Tax |
-69.860 |
(131.370) |
(12.440) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(69.860) |
(131.370) |
(12.440) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(3.12)
|
1.67 |
7.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.12)
|
0.36 |
11.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.21)
|
0.17 |
6.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.11)
|
0.01 |
0.49 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.75
|
8.68 |
9.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02
|
0.91 |
0.95 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY OF COMPANY
The company history sections lists out major
chronological events that happened to the company.
1936 - Subject was incorporated in 1936.
1995 - The company had issued bonus shares in
the ratio of 1:1.
1996 - Company had approved right issue of
equity shares.
2004 - Subject was ranked 213th in
the BS 500 listing of top unlisted companies in
2007 - Sri. R
Prabhu, Dr. S R K Prasad and Smt. M A Vedavalli were reappointed as the
directors of the company.
MANAGEMENT
AND DISCUSSION ANALYSIS
Sugar
Industry:
The Sugar Industry after a year of deficit in sugar production
is heading for a year of plenty in 2010-2011 season. Already sugar prices since
March have slided by almost Rs.700/- a quintal and are likely to fall further.
The industry supplies 20% of its production to Government
for Public distribution through fair price shops, as Levy Sugar at a fixed
price of Rs.1366/- which is much lower to the cost of sugar cane (Rs. 1900/-per
tonne)
The Government has unfortunately not revised the Levy sugar
price for the last three years. The industry is losing heavily on the Levy
Sugar coupled with the steep fall in Free Sale Sugar, the future does not augur
well for the industry. The Government must step in and play a proactive role to
help this agro industry, which is supporting 50
million sugarcane
farmers.
In the long run the Government should decontrol the Sugar
industry which is the only controlled industry in
WS
SUGARS, CHAGALLU
The Company is one of the most efficient in A.P in size, crushing
and cost of production is highly competitive. In the present globalised context
the size of the factory is the most important. Besides it has sizable co-gen
facility and distillation facilities. Year after year, The Company is crushing
higher quantity of sugarcane compared to other factories in A.P. This year also
we propose to crush 10 lakh tons. The current year could be promising if the
Government India adopts industry friendly policies.
NEW
SUGAR UNIT AT POTHAVARAM
The new sugar mill project at Pothavaram is complete in all
respect but for some balancing equipment and other final face of start up. The
Company is confident that it can commence operation in the ensuing sugar season
for the year 2010-2011
II)
The Prospects of the Distilleries at Chagallu and Jangareddygudem
The Company is selling Ethanol to the pharmaceutical
producers at remunerative Prices.
The Company can opt for the production of Extra Neutral
Alcohol or Ethanol or Absolute Alcohol based on the prices as per the market demand
and get maximum benefit as all the products can be manufactured in the
distilleries.
b. Co-Generation
The Co-generation project has worked continuously and
successfully during the season and generated 23916 MW of power. The Company
took a strategic decision to modify the boiler to use coal as alternative fuel
at a cost of Rs. 60 Millions at Chagallu. This would enable the company to
process imported raw sugar in case of shortage of sugar cane. Moreover the
power plant can feed power to the grid throughout the year increasing the
turnover.
c. Electro Metallurgical Division
The lease in respect of the Ferromanganese plant has expired
in January 2007. The Ferromanganese / Ferrochrome products market has
considerably picked up and the price of the final products are good. Hence, the
company is actively considering the revival of the Ferromanganese / Ferrochrome
unit in due course
d.
Distillery Division at Rayagada
The operations in the IMFL bottling unit during the year was
satisfactory. The demand for the products are on the rise. The company is
taking steps to increase the production substantially and to introducing one or
more new varieties.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.24 |
|
|
1 |
Rs.72.56 |
|
Euro |
1 |
Rs.63.00 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.