MIRA
INFORM REPORT
|
Report Date : |
31.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
TEA ESTATES INDIA LIMITED |
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Registered
Office : |
No. 10, Damu Nagar, Puliakulam, Coimbatore 641045, Tamilnadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
24.07.2002 |
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Com. Reg. No.: |
013079 |
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Capital
Investment / Paid-up Capital : |
Rs.50.000 millions |
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CIN No.: [Company Identification
No.] |
U15491TZ2002PLC013079 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CMBT04603E |
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PAN No.: [Permanent Account No.] |
AABCT0265C |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Producer of Tea |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2955410 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having fine track.
General financial position is good. Trade relations are reported as fair. Business
is active. Payments 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.
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 |
|
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 |
LOCATIONS
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Registered Office : |
No. 10, Damu Nagar, Puliakulam, Coimbatore 641045, Tamilnadu,
India |
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Tel. No.: |
91-422-4505000 |
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Fax No.: |
91-422-2314362 |
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E-Mail : |
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. S C Selvarani |
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Designation : |
Director |
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Date of Birth/Age : |
24.06.1951 |
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Date of Appointment : |
01.03.2006 |
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Name : |
Mr. C Subhashinee |
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Designation : |
Director |
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Date of Birth/Age : |
09.11.1973 |
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Date of Appointment : |
01.03.2006 |
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Name : |
Mr. C Shreedharan |
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Designation : |
Director |
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Date of Birth/Age : |
17.10.1974 |
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Date of Appointment : |
01.03.2006 |
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Name : |
Mrs. Gajalakshime |
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Designation : |
Director |
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Date of Birth/Age : |
29.03.1976 |
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Date of Appointment : |
01.03.2006 |
KEY EXECUTIVES
|
Name : |
Mr. Vignesh J |
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Designation : |
Secretary |
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Date of Birth/Age : |
02.09.1981 |
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Date of Appointment : |
20.08.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
|
Maxwell Golden Tea Private Limited, Coimbatore, Tamilnadu, India |
4999994 |
|
S C Selvarani |
1 |
|
Subhashinee |
1 |
|
C Shreedharan |
1 |
|
Shri Gajalakshime |
1 |
|
K Balachandran |
1 |
|
G Murali |
1 |
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TOTAL
|
5000000 |
AS ON 30.09.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
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Category |
|
|
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Bodies corporate |
|
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Producer of Tea |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
Canara Bank, SAF Branch
Tatabad, Coimbatore – 641 012, Tamilnadu, India ·
HDFC Bank |
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Facilities : |
Rs. In Millions
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
V K S Aiyer and Company Chartered Accountant |
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Address : |
Mecheri Manor, no. 2 S R Iyer Layout, Near All India Radio, Trichy
Road, Ramanathpuram, Coimbatore 641045, Tamilnadu, India |
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Holding Company: |
Maxwell Golden Tea Private Limited, Coimbatore, Tamilnadu, India CIN No.: U01132TZ2005PTC011903 |
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Associates/Subsidiaries : |
·
Woodbriar Estate Limited ·
Talayar Tea Company Limited ·
Wilson and Company Limited ·
Wilson Surveyors and Adjusters Private ·
The Puthutotam Estates (1943) Limited |
CAPITAL STRUCTURE
AS ON 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Equity Shares |
Rs. 10 each |
Rs. 50.000 millions |
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|
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1000000 |
0.5% Redeemable Preference Shares |
Rs. 100 each |
Rs. 100.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Equity Shares |
Rs. 10 each |
Rs.50.000 millions |
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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 |
50.000 |
50.000 |
50.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
688.853 |
460.426 |
268.956 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
738.853 |
510.426 |
318.956 |
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LOAN FUNDS |
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1] Secured Loans |
244.780 |
224.193 |
252.272 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
244.780 |
224.193 |
252.272 |
|
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DEFERRED TAX LIABILITIES |
24.976 |
5.457 |
7.147 |
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TOTAL |
1008.609 |
740.076 |
578.375 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
558.498 |
563.481 |
552.908 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
255.000 |
118.321 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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Inventories |
89.665
|
51.814 |
42.051 |
|
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Sundry Debtors |
22.185
|
13.343 |
10.448 |
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Cash & Bank Balances |
158.820
|
61.083 |
29.180 |
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Other Current Assets |
0.235
|
0.125 |
0.101 |
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Loans & Advances |
72.919
|
43.818 |
38.314 |
|
Total
Current Assets |
343.824
|
170.183 |
120.094 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Sundry Creditors |
95.864
|
88.215 |
80.089 |
|
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Other Current Liabilities |
0.000
|
0.000 |
0.000 |
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Provisions |
52.849
|
23.694 |
14.538 |
|
Total
Current Liabilities |
148.713
|
111.909 |
94.627 |
|
|
Net Current Assets |
195.111
|
58.274 |
25.467 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
1008.609 |
740.076 |
578.375 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
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|
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Sales |
793.897 |
691.183 |
428.432 |
|
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Other Income |
9.286 |
6.903 |
5.864 |
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TOTAL (A) |
803.183 |
698.086 |
434.296 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
51.610 |
34.860 |
17.320 |
|
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|
Manufacturing Expenses |
130.013 |
127.305 |
105.921 |
|
|
|
Employees Remuneration |
285.234 |
244.303 |
204.157 |
|
|
|
Increase/(Decrease) in Finished Goods |
(28.360) |
1.277 |
(5.043) |
|
|
|
Selling and Distribution Expenses |
7.688 |
6.168 |
3.959 |
|
|
|
Administrative Expenses |
18.656 |
18.816 |
16.970 |
|
|
|
Repairs and Maintenance |
29.379 |
28.037 |
22.063 |
|
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TOTAL (B) |
494.220 |
460.766 |
365.347 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
308.963 |
237.320 |
68.949 |
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|
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|
Less |
FINANCIAL
EXPENSES (D) |
15.205 |
20.590 |
25.430 |
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
293.758 |
216.730 |
43.519 |
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|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
20.013 |
20.435 |
19.852 |
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PROFIT BEFORE
TAX (E-F) (G) |
273.745 |
196.295 |
23.667 |
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Less |
TAX (H) |
45.319 |
4.825 |
2.247 |
|
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|
PROFIT AFTER TAX
(G-H) (I) |
228.426 |
191.470 |
21.420 |
|
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|
|
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|
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|
Earnings Per
Share (Rs.) |
45.69 |
38.29 |
4.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
28.44
|
27.42 |
4.93 |
|
|
|
|
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
34.48
|
28.39 |
5.52 |
|
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|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
30.33
|
26.75 |
3.52 |
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.37
|
0.38 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.56
|
0.66 |
1.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.31
|
1.52 |
1.26 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE:
During the year
under review, the Company produced 8189076 Kg of Made Tea (Last year 7085967
Kg) and sold 7738088 Kg of Made Tea (Last Year 7120946 Kg). The Company also sold
6297918 Kg of Green leaf (Last Year 9713923 Kg). Due to better price realized
for the Made Tea and for Green Tea Leaf, the gross revenue from sales
substantially increased. Consequently the net profit for the year improved
substantially on a comparable basis with previous year.
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fittings
·
Office Equipment
·
Motor Vehicles
FORM 8
|
Corporate
identity number of the company |
U15491TZ2002PLC013079 |
|
Name of the
company |
TEA ESTATES INDIA LIMITED |
|
Address of the
registered office or of the principal place of business in |
No. 10, Damu Nagar, Puliakulam, Coimbatore 641045, Tamilnadu, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable
property Movable property
(not being pledge) |
|
Particular of
charge holder |
Tea Board,
Ministry of Commerce and Industry, 14 BTM Sarani, Kolkata 700001, West
Bengal, India |
|
Nature of
instrument creating charge |
1. Loan Agreement
(Special Purpose Tea Fund Scheme) 2. Hypothecation
Agreement For Second Charge 3. Tripartite
Agreement |
|
Date of
instrument Creating the charge |
07.01.2010 |
|
Amount secured by
the charge |
Rs. 656.492 |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of interest 1.5%Per annum
above the 10 year govt. securities rate prevailing on date of santion of the
loan. rate will be reset on 1st Apr, 2010 and Subsequently on 1st April every
alternative year. min. rate 12.5%pa Terms of repayment Total tenure of
loan is 13 years. Moratorium on
principal payment for 5 years. From 6th year outstanding principal is to be
repaid in 16 equal half yearly installments. First half yearly
installments shall fall due on the last day of the 66th month from the date
of disbursement of the loan and at half yearly intervals thereafter. Margin 50% of the cost
per hectare Extent and operation of the charge 1. Hypothacation
second charge of tea crops. 2. Mortgage of
tea garden by deposit of title deeds ranking subsequent to the mortgage in
favour of Canara Bank. |
|
Short particulars
of the property charged (Including location of the property) |
Second Charge On Land
Held By The Company At Anamalai Hills, Valparai Taluk, Coimbatore District,
Tamilnadu State More Or Less 2042.78.0 Hectares In Favour Of Tea Board. Second Charge On
Buildings - Total Measuring 6,78,952 Sq.Ft Area At The Above Location In
Favour Of Tea Board. Second Charge On
Vehicles (As Per Annexure A Of Loan Agreement) In Favour Of Tea Board. |
|
Date of
instrument modifying the charge |
07.01.2010 |
|
Particulars of
the present modification |
Loan Of Rs.4.307
millions Sanctioned By Tea Board (In Addition To Rs.2.584 millions and
Rs.4.100 millions Already Sanctioned) For The Purpose Of Carrying Out
Replacement Planting At Tea Garden Located At Anamalai Hills, Valparai Taluk
In Addition To The Loan Already Sanctioned By Canara Bank Amounting To Rs.645.500
millions. Hypothecation
Second Charge On The Tea Crops and Second Charge On The Fixed Assets In
Favour Of Tea Board. Tripartite Agmt.
Executed By Company,Tea Board and Canara Bank. |
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.45.10 |
|
|
1 |
Rs.74.27 |
|
Euro |
1 |
Rs.64.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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.