MIRA
INFORM REPORT
|
Report Date : |
22.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
MADHUCON SUGAR AND POWER INDUSTRIES LIMITED (w.e.f.24.06.1985) |
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Formerly Known
As : |
MADHUCON SUGARS LIMITED |
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Registered
Office : |
1-7-70, Madhu Complex,
Jubilipura, Khammam-507 003, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
05.11.2002 |
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Com. Reg. No.: |
01-39589 |
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CIN No.: [Company Identification
No.] |
U15427AO2002PLC039859 |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business
: |
Manufacturer of Sugar and Power. |
RATING & COMMENTS
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MIRA’s Rating : |
B (30) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 2300000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Trade relations
are reported as fair. Business is active. Payments are reported to be slow
but correct. The company can be considered for business dealings with some caution.
|
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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. S. Venkateshwar |
|
Designation : |
Finance Department |
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Contact No.: |
91-9676555544 |
|
Date : |
21.03.2011 |
LOCATIONS
|
Registered Office : |
1-7-70, Madhu Complex,
Jubilipura, Khammam-507 003, |
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Tel. No.: |
91-8742-275796 |
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Fax No.: |
91-8742-275528 |
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E-Mail : |
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Area : |
10000sq. ft. |
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Location : |
Owned |
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Head Office : |
Rajeswarapuram, Nelakondapally Madal, Khammam-507 001, |
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Area : |
135 acres |
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Location : |
Owned |
DIRECTORS
As on 08.07.2010
|
Name : |
Mr. Seethaiah Nama |
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Designation : |
Chairman |
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Address : |
Varalakshmi Nilayam, H.No.11-4-65/C, Nehru Nagar, Khammam-507 002, |
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Date of Birth/Age : |
03.03.1966 |
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Date of Appointment : |
05.03.2004 |
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Name : |
Mr. Krishnaiah Nama |
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Designation : |
Executive Director |
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Address : |
Saransh, C-2, 6th Block, MCHS colony, 6th
Sector, HSR Layout, Banbgalore-560 034, |
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Date of Birth/Age : |
15.12.1967 |
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Date of Appointment : |
05.11.2002 |
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Name : |
Mr. Kamma Srinivas Rao |
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Designation : |
Director |
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Address : |
11-465/C, Varaiakshmi Nilayam, Nehru Nagar, Khammam-507 002, |
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Date of Birth/Age : |
22.08.1973 |
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Date of Appointment : |
05.11.2002 |
KEY EXECUTIVES
|
Name : |
Mr. S. Venkateshwar |
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Designation : |
Finance Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 08.07.2010
|
Names of Shareholders (Equity Shares) |
|
No. of Shares |
|
Nama Rao |
|
204168 |
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Seethaiah Nama |
|
51042 |
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Krishnaiah Nama |
|
51042 |
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Chinnamma Nama |
|
1042706 |
|
Thottampudi Venugopal Rao |
|
51042 |
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Kamma Srinivasa Rao |
|
76563 |
|
M. Seetharamaiah |
|
76563 |
|
Madhucon Projects Limited, |
|
4811500 |
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Kotha Lakshman |
|
76563 |
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Madhucon Granites Limited, |
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11000000 |
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Total |
|
17441189 |
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Names of Shareholders (Preference shares ) |
|
No. of Shares |
|
Madhucon Land Development limited, |
|
1700000 |
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Nama Properties Limited, |
|
1200000 |
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Total |
|
2900000 |
As on 08.07.2010
|
Category |
Percentage |
|
Bodies corporate |
90.66 |
|
Directors or relatives of Directors |
9.34 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Sugar and Power. |
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Imports : |
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Products : |
Machinery |
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Countries : |
·
·
·
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
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Customers : |
·
End Users ·
OEM’s |
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No. of Employees : |
300 (Office-50, Factory-250) Approximately |
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Bankers : |
Andhra Bank, Main Branch. Gandhi Chowk, Khamma- 507 003Andhra |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Kota and Company Chartered Accountants |
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Address : |
H.No.31, plot No.13, Road No.3, Arora Colony, Banjara Hills,
Hyderabad-500 034, Andhra Pradesh, India |
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Tel. No.: |
91-40-23740703 |
CAPITAL STRUCTURE
As on 08.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- Each |
Rs.200.000 Millions |
|
3000000 |
Preference Shares |
Rs.100/- Each |
Rs.300.000 Millions |
|
|
Total |
|
Rs.500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17441789 |
Equity Shares |
Rs.10/- Each |
Rs.174.412
Millions |
|
2900000 |
Preference Shares |
Rs.100/- Each |
Rs.290.000
millions |
|
|
Total |
|
Rs.464.412 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 |
464.412 |
464.412 |
27.112 |
|
|
2] Share Application Money |
0.000 |
0.000 |
80.000 |
|
|
3] Reserves & Surplus |
100.180 |
78.532 |
27.701 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
564.592 |
542.944 |
134.813 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1127.045 |
1239.396 |
1035.355 |
|
|
2] Unsecured Loans |
205.139 |
410.841 |
623.822 |
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TOTAL BORROWING |
1332.184 |
1650.237 |
1659.177 |
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DEFERRED TAX LIABILITIES |
36.690 |
21.290 |
0.000 |
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|
|
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|
|
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TOTAL |
1933.466 |
2214.471 |
1793.990 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1642.577 |
1694.508 |
654.842 |
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Capital work-in-progress |
13.638 |
2.575 |
906.971 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.347 |
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
197.594
|
329.766 |
203.908 |
|
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Sundry Debtors |
13.166
|
107.458 |
120.847 |
|
|
Cash & Bank Balances |
42.045
|
20.035 |
25.737 |
|
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Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
148.291
|
152.249 |
36.851 |
|
Total
Current Assets |
401.096
|
609.508 |
387.343 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
107.874
|
77.806 |
149.330 |
|
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Other Current Liabilities |
5.225
|
12.816 |
7.515 |
|
|
Provisions |
12.311
|
3.582 |
1.275 |
|
Total
Current Liabilities |
125.410
|
94.204 |
158.120 |
|
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Net Current Assets |
275.686
|
151.304 |
229.230 |
|
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MISCELLANEOUS EXPENSES |
1.565 |
2.084 |
2.607 |
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|
|
|
|
|
|
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TOTAL |
1933.466 |
2214.471 |
1793.990 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
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Income |
995.307 |
527.215 |
189.959 |
|
|
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Other Income |
5.515 |
24.350 |
2.159 |
|
|
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TOTAL (A) |
1000.822 |
551.565 |
192.118 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Material and other Expenses |
557.480 |
439.264 |
190.151 |
|
|
|
Payment and Benefits to Employees |
27.003 |
19.689 |
3.667 |
|
|
|
Administrative Expenses |
14.183 |
9.374 |
7.977 |
|
|
|
Selling and Distribution Expenses |
20.488 |
9.681 |
5.767 |
|
|
|
Miscellaneous expenses written off |
0.521 |
0.522 |
0.000 |
|
|
|
Increase (Decrease) in Stock |
128.410 |
(116.870) |
(40.314) |
|
|
|
TOTAL (B) |
748.085 |
361.660 |
167.248 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
252.737 |
189.905 |
24.870 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
120.533 |
124.257 |
19.617 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
132.204 |
65.648 |
5.253 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
87.570 |
27.660 |
12.997 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
44.634 |
37.988 |
(7.744) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
22.986 |
25.199 |
(0.946) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
21.648 |
12.789 |
(6.798) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
78.532 |
65.752 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
100.180 |
78.532 |
65.752 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.06 |
- |
- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.16
|
2.32 |
(3.54) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.48
|
7.20 |
(4.08) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.18
|
1.65 |
(0.74) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.07 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.58
|
3.21 |
13.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.20
|
6.47 |
2.45 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Creditors for materials |
|
|
|
|
Creditors for
Materials – sugar |
3.094 |
2.326 |
32.708 |
|
Creditors for
Material Co. Gen |
76.748 |
47.286 |
0.000 |
|
Taxes and
Duties other Expenses |
1.268 |
0.098 |
3.870 |
|
Creditors
(Advanced received from Customers ) |
1.194 |
0.152 |
0.000 |
|
Creditors from
Harvesting |
0.009 |
0.063 |
0.000 |
|
Creditors for
coal Transportation |
2.118 |
0.023 |
0..000 |
|
|
|
|
0 |
|
Creditors for Capital Works |
|
|
0 |
|
Creditors against
Retention Money |
2.686 |
2.971 |
3.685 |
|
Creditors for
sugar – capital works |
3.407 |
2.708 |
16.100 |
|
Creditors for Co.
Gen- Capital works |
15.090 |
21.803 |
91.768 |
|
Capital for civil
works |
0.643 |
0.066 |
1.199 |
|
Creditors for
other |
1.617 |
0.310 |
0.000 |
|
Total |
107.874 |
77.806 |
149.330 |
Trade Reference:
·
Kyori Orymen Limited
Review of Operations:
Their company crushed sugar cane 48997990 MTs,
produced sugar 30 Brand 39,578 Qtls. Molasses 3023000 MTs and achieved the turnover
of Rs.1000.702 millions. Previous year Rs.551.724 millions. After providing
depreciation of Rs.87.569 millions (previous year Rs.27.660 millions). Net
profit Rs.44.634 millions (previous year of Rs.37.988 millions).
The cane availability for the season 2010-2011
will be around 300000 M. Ts. This is because of shifting of farmers from sugar
cane to paddy and other commercial crops as higher realizations. However the
director are initiated various development activities by the way of extending
financial assistance and subsidies in the form of cash, cane seeds at free of
cost to the cultivator and also providing financial assistance for dagging,
wells, providing PVC Pipes, Fertilizers, Weedlcides and etc to improvise the
cane cultivation area. The directors are hopeful to improved cane availability
to the extent of 6,50,000 M. Ts. Per annum during the 2 to 3 years.
The directors are also happy to inform you
that the 24.2 M/W, Co. Gen plant has entered into power Purchase agreement with
TATA power Trading Company Limited for period of 12 Months ending with August
2010 for 145.20 lakh units per month @Rs.5.50/- per KWH, with this rated
capacity. The directors are confident of achieving better financial performance
during the year 2010-2011.
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U15427AP2002PLC039859 |
|
Name of the
company |
MADHUCON SUGAR
AND POWER INDUSTRIES LIMITED |
|
Address of the
registered office or of the principal place of business in |
1-7-70, Madhu Complex,
Jubilipura, Khammam-507 003, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Book Debts Movable Property |
|
Particular of
charge holder |
Andhra Bank, Main Branch. Gandhi Chowk, Khamma- 507 003Andhra |
|
Nature of
description of the instrument creating or modifying the charge |
1. Composite
Agreement dated 06.01.2011 for OCC (adhoc) limit of Rs.150.000 millions for
working capital requirements. 2. General form
of Guarantee. |
|
Date of
instrument Creating the charge |
06.01.2011 |
|
Amount secured by
the charge |
Rs.150.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Base rate + 4.75%
(13.75% at present) Terms of
Repayment Three months from
the date of disbursement. Margin Sugar Division: Buffer
Stock - 0%, Levy Sugar- 10%, Free Sugar- 15%, Molasses, Stores & Spares-
50%. Cogen Division:
25% on paid stock & Receivables. Extent and
Operation of the charge Pari Passu First
Charge on all Current Assets of the Company. |
|
Short particulars
of the property charged |
All Current
Assets of the Company located at Madhucon Sugar & Power Industries
Limited, Khammam. |
Fixed Assets:
·
Land and Development
·
Building
·
Plant and Machinery
·
Vehicle
·
Computer
·
Furniture
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.45.05 |
|
|
1 |
Rs.73.05 |
|
Euro |
1 |
Rs.63.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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.