MIRA
INFORM REPORT
|
Report Date : |
12.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
HATSUN AGRO PRODUCT LIMITED |
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Registered
Office : |
5A, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
04.03.1986 |
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Com. Reg. No.: |
18-12747 |
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Capital
Investment / Paid-up Capital : |
Rs.67.921 Millions |
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CIN No.: [Company Identification
No.] |
L15499TN1986PLC012747 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEH00039E |
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PAN No.: [Permanent Account No.] |
AAACH0945G |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
stock exchange. |
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Line of Business
: |
Manufacturer of Dairy Products
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No. of Employees
: |
2571 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having track.
Directors are reported as experienced and respectable businessmen. Trade relations
are reported as fair. Business is active. Payments are usually correct 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 |
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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
|
Registered Office : |
5A, |
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Tel. No.: |
91-44-28150014 |
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Fax No.: |
91-44-28152508 |
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E-Mail : |
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Factory 1 : |
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Factory 2 : |
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Factory 3 : |
No. 114, Angadu Road, Angadu Road, Nallur Village, Redhills,
Chennai-600067, Tamilnadu, India |
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Factory 4: |
No. 277/2, Desur Village, Kanapur Road, Belgaum-590014, Karnataka,
India |
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Factory 5 : |
No. 109/2, Melebennur Road, Kuindur Village, Honnali Taluk, Davangere
District, Honnali-577219, Karnataka, India |
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Factory 6 : |
No. 142/IB and IC, |
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Factory 7 : |
No. 76/2B, Dindugal Madurai, Main Road, Thiruvazhavayanallur,
Vadipatti Taluk, Madurai-625221, Tamilnadu, India |
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Factory 8 : |
V Kootturoadpirivu, Attupannai, Periyeri Post, Attur Taluk, Salem
District, Thalaivasal |
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Branches : |
Located at: ·
Ananthapur ·
Avinashi ·
·
·
·
Vijay Wada |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. R G Chandramogan |
|
Designation : |
Chairman and Managing Director |
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Name : |
Mr. K S Thanarajan |
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Designation : |
Joint Managing Director |
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Name : |
Mr. C Sathyan |
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Designation : |
Executive Director- Operations |
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Name : |
Mr. P Vaidyanathan |
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Designation : |
Director |
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Name : |
Mr. Kirit P Shah |
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Designation : |
Director |
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Name : |
Mr. S Thigarajan |
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Designation : |
Director |
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Name : |
Mr. B S Mani |
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Designation : |
Director |
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Name : |
Mr. N Chandrasekaran |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
S Chandrasekar |
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Designation : |
Company
Secretary |
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Committees of the Board Audit Committee: |
·
Mr. P Vaidyanathan ·
Mr. S Thigarajan ·
Mr. B.S. Mani |
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Remuneration Committee: |
·
Mr. P Vaidyanathan ·
Mr. S Thiagarajan ·
Mr. B.S. Mani |
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Shareholders’ / Investors’ Grievance Committee: |
·
Mr. P Vaidyanathan ·
Mr. S Thigarajan ·
Mr. K S Thanarajan |
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Sub Committee: |
·
Mr. R G Chandramogan ·
Mr. K S Thanarajan ·
Mr. C Sathyan ·
Mr. B S Mani |
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Share Transfer Committee: |
·
Mr. R G Chandramogan ·
Mr. P Vaidyanathan ·
Mr. K S Thanarajan |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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24,810,777 |
69.12 |
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24,810,777 |
69.12 |
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Total shareholding of Promoter and Promoter Group (A) |
24,810,777 |
69.12 |
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(B) Public Shareholding |
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|
1,393 |
- |
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1,393 |
- |
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753,436 |
2.10 |
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3,597,806 |
10.02 |
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3,585,909 |
9.99 |
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3,147,895 |
8.77 |
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1,696,500 |
4.73 |
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2,852 |
0.01 |
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1,448,543 |
4.04 |
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11,085,046 |
30.88 |
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Total Public shareholding (B) |
11,086,439 |
30.88 |
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Total (A)+(B) |
35,897,216 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
35,897,216 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Dairy Products
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Products : |
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PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
|
Ice Cream |
000’ of litres
per day |
2700 |
|
Dairy |
000’ of litres
per day |
50 |
GENERAL INFORMATION
|
No. of Employees : |
2571 [Approximately] |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.R. Batliboi and Associates Chartered Accountant |
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Address : |
2nd Floor, TPL House No. 3, |
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Tel. No.: |
91-44-66328400 |
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Fax No.: |
91-44-24311450 |
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Wholly Owned Subsidiary : |
Hatsun Ingredients FZE-UAE |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs. 2/- each |
Rs.100.000 Millions |
|
2000000 |
Preference Shares |
Rs. 100/- each |
Rs.200.000 Millions |
|
|
Total |
|
Rs.300.000
Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34009090 |
Equity Shares |
Rs. 2/- each |
Rs.68.018
Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33944090 |
Equity Shares |
Rs. 2/- each |
Rs.67.888
Millions |
|
65000 |
Equity Shares |
Rs. 0.50/-
each |
Rs. 0.033
Million |
|
|
Total |
|
Rs.67.921 Millions |
Note:
Paid up equity shares of the Company include:
(a) 153,640 (March 31, 2009: 153,640) equity shares of Rs. 2/- each,
allotted pursuant to amalgamation of Hatsun Foods Company Limited, for
consideration other than cash.
(b) 345,450 (March 31, 2009: 345,450) equity shares of Rs. 2/- each,
allotted pursuant to amalgamation of Ajith Dairy Industries Limited, for
consideration other than cash.
(c) 5,292,000 (March 31, 2009: 5,292,000) equity shares of Rs. 2/- each
issued as fully paid up bonus shares in July 1995, pursuant to capitalisation
of surplus in the Profit and Loss account and free reserves.
After 04.08.2010
Authorised Capital : Rs.300.000 Millions
Issued, Subscribed and Paid up Capital : Rs.71.924
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 |
67.921 |
118.721 |
118.721 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
467.250 |
453.952 |
362.855 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
535.171 |
572.673 |
481.576 |
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|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
2136.678 |
1932.401 |
837.156 |
|
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2] Unsecured Loans |
1000.707 |
356.396 |
443.981 |
|
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TOTAL BORROWING |
3137.385 |
2288.797 |
1281.137 |
|
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DEFERRED TAX LIABILITIES |
197.039 |
111.633 |
99.186 |
|
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DEFERRED INCOME |
7.445 |
7.885 |
8.325 |
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TOTAL |
3877.040 |
2980.988 |
1870.224 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3221.340 |
1664.228 |
1531.559 |
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Capital work-in-progress |
330.567 |
1281.473 |
222.652 |
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INVESTMENT |
0.000 |
1.396 |
0.000 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
570.616
|
278.926 |
421.349 |
|
|
Sundry Debtors |
136.595
|
85.716 |
149.654 |
|
|
Cash & Bank Balances |
139.822
|
60.482 |
118.440 |
|
|
Other Current Assets |
14.180
|
14.580 |
56.183 |
|
|
Loans & Advances |
247.619
|
209.103 |
147.352 |
|
Total
Current Assets |
1108.832
|
648.807 |
892.978 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
487.077
|
366.977 |
493.990 |
|
|
Other Current Liabilities |
275.953
|
207.575 |
164.956 |
|
|
Provisions |
20.669
|
40.364 |
118.019 |
|
Total
Current Liabilities |
783.699
|
614.916 |
776.965 |
|
|
Net Current Assets |
325.133
|
33.891 |
116.013 |
|
|
|
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|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3877.040 |
2980.988 |
1870.224 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11406.031 |
10130.501 |
8631.936 |
|
|
|
Other Income |
29.298 |
18.151 |
62.407 |
|
|
|
TOTAL (A) |
11435.329 |
10148.652 |
8694.343 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Manufactured Goods |
8613.689 |
7397.686 |
6508.417 |
|
|
|
Cost of Traded Goods |
71.791 |
118.384 |
107.968 |
|
|
|
Employee Costs |
372.965 |
304.554 |
210.398 |
|
|
|
Manufacturing, Administrative and Selling Expenses |
1715.109 |
1698.858 |
1252.744 |
|
|
|
TOTAL (B) |
10773.554 |
9519.482 |
8079.527 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
661.775 |
629.170 |
614.816 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
278.302 |
213.164 |
150.284 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
383.473 |
416.006 |
464.532 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
268.117 |
216.787 |
185.040 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
115.356 |
199.219 |
279.492 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
88.463 |
79.540 |
106.236 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
26.893 |
119.679 |
173.256 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
206.260 |
127.131 |
23.612 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1.345 |
11.968 |
17.326 |
|
|
|
Transfer to Capital Redemption Reserve |
50.800 |
0.000 |
0.000 |
|
|
|
Dividend |
|
|
|
|
|
|
- Interim Dividend on Preference Shares |
1.470 |
4.064 |
2.038 |
|
|
|
- Interim Dividend on Equity Shares |
0.000 |
20.366 |
16.972 |
|
|
|
Proposed Final Dividend on Preference
Shares |
10.183 |
0.000 |
2.026 |
|
|
|
- Proposed Final Dividend on Equity Shares |
0.000 |
0.000 |
23.761 |
|
|
|
Dividend
Tax |
|
|
|
|
|
|
- Preference |
0.250 |
0.691 |
0.691 |
|
|
|
- Equity |
1.692 |
3.461 |
6.923 |
|
|
BALANCE CARRIED
TO THE B/S |
167.413 |
206.260 |
127.131 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
465.140 |
1902.201 |
1128.031 |
|
|
|
Royalty Income |
0.806 |
0.726 |
0.675 |
|
|
TOTAL EARNINGS |
465.946 |
1902.927 |
1128.706 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Packing Materials Components and Spar parts |
5.750 |
9.029 |
10.394 |
|
|
|
Capital Goods |
70.663 |
67.377 |
7.242 |
|
|
TOTAL IMPORTS |
76.413 |
76.406 |
17.636 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
0.74 |
3.39 |
4.96 |
|
|
|
Diluted |
0.74 |
3.39 |
4.96 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
30.06.2011 5th
Quarter |
|
Net Sales |
3282.700 |
3502.050 |
3403.660 |
3368.810 |
3714.480 |
|
Total Expenditure |
3043.840 |
3271.930 |
3148.580 |
3151.720 |
3549.130 |
|
PBIDT (Excl OI) |
238.860 |
230.120 |
255.080 |
217.090 |
165.350 |
|
Other Income |
3.120 |
4.070 |
2.170 |
6.440 |
8.920 |
|
Operating Profit |
241.980 |
234.190 |
257.250 |
223.530 |
174.270 |
|
Interest |
83.270 |
91.560 |
87.040 |
92.850 |
88.250 |
|
PBDT |
158.710 |
142.630 |
170.210 |
130.680 |
86.020 |
|
Depreciation |
85.390 |
92.690 |
94.080 |
98.440 |
99.650 |
|
Profit Before Tax |
73.320 |
49.940 |
76.130 |
32.240 |
(13.630) |
|
Tax |
17.850 |
(4.180) |
11.860 |
18.650 |
(10.110) |
|
Profit After Tax |
55.480 |
54.120 |
64.270 |
13.580 |
(3.510) |
|
Net Profit |
55.480 |
54.120 |
64.270 |
13.580 |
(3.510) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.24
|
1.18 |
1.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.01
|
1.97 |
3.24 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.66
|
8.61 |
11.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.35 |
0.58 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.33
|
5.07 |
4.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.41
|
1.06 |
1.15 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Hatsun Foods was incorporated as a private limited company in Mar. 86,
by R G Chandramohan. In Apr. 86, the company was admitted as a partner in
Chandramohan and Co, a partnership firm, promoted by the same promoter.
During the same month, Chandrmohan
and Co was dissolved and all the
assets and liabilities of the firm vested with the company, except the Arun
brand name which was vested with R G Chandramohan. In 1987, the company
acquired the Arun brand name, subject to a payment of 1% royalty on the
company's gross ice cream sales turnover. The company became a public limited
company in Aug.'95. Till Apr.'95, the company was carrying on its manufacturing
activities. It scrapped its manufacturing facilities at Tolgate unit, since the
facilities became old and outlived its utilities. The company is concentrating
only on marketing of ice cream and milk- and dairy-based products under the
Arun brand name. For sourcing ice cream and other ice cream based products, the
company has entered into contractual arrangements with Atlantic Foods, a group
concern. The company has put up a 250-kVA windmill for power generation. Hatsun
came out with a public issue in Jan.'96. The name of the Company has been
changed with the approval of the Central Government from Hatsun Milk Food
Limited to Hatsun Agro Product Limited effective from 7.4.1998. The Company has
diversified its activities and entered into production and sale of Toor Dhall
and Urad Dhall under the brand name "Apurva". Hatsun Milk Products
Limited was merged with the Company with retrospective effect from 1.4.98 vide
order of high court dated 18.2.99. and the process of amalgamation was
completed on 26.2.99. Ajith Dairy Industries too merged with the company. The
company has also amalgamated Hatsun Foods Company Limited During 2000-2001 the
company's second dairy plant was commissioned at
PERFORMANCE OF THE COMPANY
OPERATING RESULTS
During the year, the Company registered a turnover (Net Sales) of
Rs.11406.031 Millions representing an increase of 12.59% over that of the
previous year. The Company registered a gross profit of Rs.115.356 Millions, as
compared to previous year profit of Rs.199.219 Millions.
The revenue in "Milk and milk products" amounts to Rs.10305.332
Millions representing an increase of 9.06% over that of the previous year. The
revenue in "Ice Cream products" amounts to Rs.751.729 Millions
representing an increase of 35.23% over that of the previous year.
The decrease in the profitability is due to bad monsoon,
non-availability of milk, increase in milk procurement price, increase in
Depreciation and Interest due to commissioning of new plant at Palacode and the
impact of Deferred Tax Liability.
There was a fire accident at the Kanchipuram Plant at around 10 P.M. on
30.04.2010. However, there is no loss of life or human injury as a result of
the fire accident. The total estimated loss/damage is around Rs.25.000 Millions
for which there is adequate insurance cover and that there is no loss in
revenue or production arising therefrom.
EXPORTS
The value of exports during the year was Rs.465.140 Millions
representing 4.08% of Net Sales. The Company is a Net Foreign Exchange Earner.
SUBSIDIARY COMPANY
The Company has closed the operations in its 100% Wholly-owned
Subsidiary Company namely, M/s. Hatsun Ingredients FZE in Ras Al Khaimah, UAE
with effect from 13th November, 2009.
FUTURE PLAN
The major thrust areas in the current financial year would be in the
domestic Dairy Ingredients, variety of milk products like curd, cream, butter,
ghee, milk powders, panneer etc. and Ice Cream apart from Milk. This will help
the Company to diversify its product profile and enable it to maintain its
leadership position.
FINANCE
During the year the Company had to maintain its borrowings to run the
operations. However, the Company has taken care to ensure that such of the
Company borrowings are obtained at very competitive rates.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The fiscal year 2009-10 began on a difficult note. A major concern
during the year 2009-10, especially in the second half, was the emergence of
high double-digit food inflation. A delayed and severely subnormal monsoon
added to the overall uncertainty. The continued recession in the developed
world, for the better part of 2009-10, meant a sluggish export recovery and a
slowdown in financial flows into the economy.
It was also a year of reckoning for the policymakers, who had taken a
calculated risk in providing substantial fiscal expansion to counter the
negative fallout of the global slowdown. The Indian Economy recorded a growth
of 7.4% for 2009-10 despite the financial crisis faced by the world economy.
Agriculture is the mainstay of the Indian economy. Agriculture provides
the principal means of livelihood for over 58.4% of
The Agriculture sector recorded a growth of 0.2% of GDP in spite of
worst ever monsoon since 1972. However, last year's drought impacted
agricultural production, but not farm incomes. The loss (or near-zero growth)
of output was more than offset by higher prices, as captured by the large gap
between the 'nominal' (11.8%) and 'real' (0.2%) increase in agricultural GDP.
While food inflation definitely hurt
The Dairy Industry plays a vital role in the development of Agriculture
Sector.
producing country in the world, producing over 100 million tons of milk
over the past two consecutive years. Milk is the only agro based commodity that
offers immediate marketability, more stable prices and consistent revenue to
the farmers. Considering the demand for milk and milk products, there is still
a lot of scope for increasing the milk production in
The recent withdrawal of export incentives (Vishesh Krishi Gram Udyog
Yojana) on export of milk powders has adversely affected this growth causing
opportunity loss to the farmers. In today's competitive scenario, the
Government should take necessary steps to ensure that Indian milk producers get
a fair chance to sell their produce in the global market making use of
The Company is well aware of the industrial scenario and being alert,
focuses mainly on long term goals, steady and profitable development. Its
strong brand coupled with the varied product portfolio enables it to meet
adverse conditions confidently and overcome it. The Company therefore remains
confident of its long term business prospects and its ability to sustain a fair
return to the shareholders.
OPPORTUNITIES
In spite of the current downturn in overall economic growth and inflationary
conditions, the Indian economy continues to remain intact. With the changes
taking place in the life styles of the people coupled with the growing per
capita income, customers are focusing on quality products and demanding value
for money offering tremendous opportunity for the Company.
The Company is committed to stringent quality assurance practices at all
its factories and units meeting ISO and
safety standards. The company offers a diversified product portfolio
with well differentiated brands which have become very popular with the
consumer since they offer value at affordable prices. More importantly, the
company is not content to rest on its laurels and is constantly striving to add
more value to the product it offers to the consumers.
Milk, apart from being consumed as such offers the opportunity to
produce a large variety of products like curd, cream, butter, ghee, milk
powders, panneer etc. The production infrastructure of the Company is
constantly being upgraded to take advantage of this opportunity.
The main advantage of the Company's strength lies in its efficient and
effective supply and cold chain management, which small players are lacking.
This allows it wide reach and targeted coverage in its markets. The Company
also has talented and committed human resources who work as a team to the
attainment of organisational objectives.
The milk products market offers great prospects for the Company. There
is an increasing demand for quality milk
products domestically apart from the traditional export market of South
East, West Asia and
INFORMATION TECHNOLOGY
The Company is using the ERP package of Oracle Applications. This
facilitates an effective online MIS system, which helps in centralised control
of operations at all the units of the Company. The Company has upgraded and
reconfigured this application to effectively monitor the increasing scale of
operations of the Company. The hardware and network infrastructure is being
constantly reviewed to increase the bandwidth and reduce operational cost. This
is an ongoing process and the Company is committed to leverage the benefits of
IT to enhance and optimise benefits to itself and its customers.
During the year, the Company decided to replace the Oracle ERP
application with SAP. Constant training and guidance has been provided to all
the end users. The Company proposes to implement SAP during the financial year
2010-11.
FIXED ASSETS:
· ERP Software
· Land
· Building
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Vehicles
· Lease hold Improvements
AUDITED FINANCIAL RESULTS FOR THE YEAR
ENDED MARCH 31, 2011
Rs. in Millions
|
PARTICULAR |
YEAR ENDED |
|
|
31.03.2011 |
|
|
|
|
(a)
Net Sales / Income from operations |
13557.222 |
|
(b)
Other Operating Income |
0.000 |
|
Total
Income |
13557.222 |
|
Expenditure |
|
|
a) (Increase)
/ Decrease in stock in trade and work in progress |
19.328 |
|
b)
Consumption of raw materials |
9976.943 |
|
c)
Purchase of traded goods |
171.168 |
|
d)
Employees cost |
459.021 |
|
e)
Depreciation |
370.602 |
|
f)
Other expenditure |
1989.603 |
|
Total |
12986.665 |
|
Profit
from operations before other income, interest and exceptional Items |
570.557 |
|
Other
income |
15.796 |
|
Profit
before interest and exceptional Items |
586.353 |
|
Interest |
354.723 |
|
Profit (+)/Loss(-) from Ordinary
Activities before tax |
231.630 |
|
Tax
expense |
44.175 |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
187.455 |
|
Paid
up equity share capital (Face value of Rs.2/- per share) |
71.827 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
856.120 |
|
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 to be annualised) |
5.42 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
5.35 |
|
Public
shareholding |
|
|
Number of shares |
11086439 |
|
Percentage of shareholding |
30.88 |
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
a)
Pledged /Encumbered |
|
|
Number
of shares |
15295000 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
61.65 |
|
Percentage
of shares (as a % of total share capital of the company) |
42.61 |
|
|
|
|
b)
Non Encumbered |
|
|
Number
of shares |
9515777 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
38.35 |
|
Percentage
of shares (as a % of total share capital of the company) |
26.51 |
SEGMENT WISE REVENUE, RESULTS AND
CAPITAL EMPLOYED
Rs. in Millions
|
PARTICULAR |
YEAR ENDED |
|
|
31.03.2011 |
|
|
|
|
SEGMENT REVENUE |
|
|
Milk and Mil Products |
13166.849 |
|
Others |
390.373 |
|
Sales From
Operations |
13557.222 |
|
|
|
|
SEGMENT RESULTS
(PROFIT BEFORE TAX AND INTEREST) |
|
|
Milk and Mil Products |
760.034 |
|
Others |
40.655 |
|
Total |
800.689 |
|
Less: Interest (Net) |
353.246 |
|
Unallocable Expenditure (Net of Unallocable Income) |
215.813 |
|
Total Profit Before
Tax |
231.630 |
|
|
|
|
CAPITAL EMPLOYED |
|
|
Milk and Mil Products |
4022.839 |
|
Others |
37.596 |
|
Unallocable |
(3132.488) |
|
TOTAL |
927.947 |
STATEMENT OF ASSETS AND
LIABILITIES AS ON MARCH 31, 2011
|
|
|
Rs in Millions |
|
Particulars |
YEAR ENDED |
|
|
31.03.2011 |
||
|
|
|
|
|
SHAREHOLDERS FUNDS |
|
|
|
Share Capital |
71.827 |
|
|
Reserves & Surplus |
856.120 |
|
|
|
|
|
|
LOAN FUNDS |
2955.625 |
|
|
|
|
|
|
DEFERRED INCOME (NET) |
7.005 |
|
|
|
|
|
|
DEFERRED TAX
LIABILITIES (NET) |
237.474 |
|
|
|
|
|
|
TOTAL |
4128.051 |
|
|
|
|
|
|
FIXED ASSETS |
3486.773 |
|
|
|
|
|
|
CAPITAL WORK IN
PROGRESS (INCLUDING CAPITAL ADVANCES) |
144.249 |
|
|
|
|
|
|
INVESTMENT |
0.000 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
Inventories |
643.159 |
|
|
Sundry Debtors |
96.701 |
|
|
Cash & Bank
Balances |
100.221 |
|
|
Other Current
Assets |
11.975 |
|
|
Loans &
Advances |
375.170 |
|
|
|
|
|
|
Less :
CURRENT LIABILITIES & PROVISIONS |
|
|
|
Other Current
Liabilities |
715.651 |
|
|
Provisions |
14.546 |
|
|
|
|
|
|
Net
Current Assets |
497.029 |
|
|
|
|
|
|
TOTAL |
4128.051 |
|
Note:
- The above audited financial results were reviewed by the audit committee and approved by the Board of Directors at their meeting held on May 25, 2011,
- The auditors of the Company in the report for the year ended March 31, 2011 have qualified for certain income tax related matters which are under dispute. Management’s estimate of the financial impact thereof is approximately Rs 15.000 millions. Based on legal advice, Management believes that no incremental provision is required for such income tax related matters.
- The Company’s operations predominantly relate to “milk and milk products’. All other activities have been classified under “others” for segment reporting. Others include rural retail operations. The Company has decided to stop its rural retail operations from March 28, 2011. The closure of the rural retail operations does not have any significant impact o the operations of the Company.
- During the year, the Company has converted 6% unsecured compulsorily convertible debentures (“UCCD’) amounting to Rs. 250.000 millions into equity shares. Te Company has allotted 1,953,126 shares against such unsecured compu1soril convertible debentures (“UCCO”).
- Previous year’s figures have been reclassified / regrouped wherever necessary to conform to current year’s presentation.
- Status of investor grievances for the quarter ended March 31, 2011:
No of Complaints pending as at January 1, 2011 - Nil; Received during the quarter -4; Disposed during the quarter 4; Lying unresolved as at March 31, 2011 – Nil
WEBSITE DETAILS:
THE LARGEST DAIRY IN THE
The average growth rate of milk production in
Hatsun, based in South India is the largest private sector dairy company
in
Hatsun Agro Product Limited is a public limited company that was founded
by Mr. R.G.Chandramogan, who is also the present Chairman and
Managing Director.
In 1970, Hatsun began with the pioneering effort of producing Arun
icecream, which stil continues to be the most popular icecream brand in
Hatsun started marketing fresh milk in pouches from 1993 and
manufacturing dairy ingredients from 2003.
Today, Hatsun is a USD 185 million company, listed in the Mumbai Stock
Exchange.
MANAGEMENT:
Board of directors
The company is managed by the Managing Director, Joint Managing Director
and Executive Director - Operations subject to the superintendence, control and
direction of the board of directors.
The board of Directors of the company have an optimum combination of
executive, Non-Executive and independent directors, which compels with clause
49 of the listing requirements as well. The entire board of the company is
involved in selection, Orientation and succession of directors.
EXECUTIVE
DIRECTORS
Shri
R.G.Chandramogan Chairman and Managing Director
Shri R.G.Chandramogan is the promoter of the company. He is the chairman
and managing director of the company. He has initially started icecream
business in early 1970s and later ventured into milk and milk related products.
In the year 1986 he formed the business into a private limited company, which
was later converted into a public limited company.
Shri
K.S.Thanarajan Joint Managing Director
Shri K.S.Thanarajan is a post-graduate in economics and is in-charge of
day-by-day operations of the dairy division of the company. Shri Thanarajan has
had more than 30 years of experience.
Shri C.Sathyan
Executive Director-Operations
Shri C.Sathyan, a Company Executive, is a Bachelor of Business
Management with specialization in Marketing. He has held various executive
positions during his career spanning over 10 years.
NON - EXECUTIVE
DIRECTORS
Shri P.
Vaidyanathan
Shri P.Vaidyanathan is a fellow member of The Institute of Chartered
Accountants of India and associate member of The
Shri Kirti P Shah
Shri Kirti P Shah, an Industrialist, is an Engineering Graduate. Shri
Shah is a Non-Resident Indian. At present he is the President of M/s Custom
Magnetics Inc., U.S.A. Shri Shah has had more than 40 years of experience in
the field of Engineering.
Shri S.
Thiagarajan
Shri. S.Thiagarajan is a post graduate in Economics and a Certified
Associate of the Indian Institute of Bankers. He has over four decades of
experience in the financial services sector and has held various senior
positions in Reserve Bank of India, Industrial Development Bank of
Shri B. S. Mani
Shri. B.S.Mani is a post graduate in Literature and has a Diploma in
Journalism from
Shri N
Chandrasekaran
Shri N.Chandrasekaran is a Mechanical Engineering Graduate with about 38
years experience. He has held various executive positions during his career. He
is the Managing Director of M/s Fichtner Consulting Engineers (
The Network:
The company has achieved excellence in establishing an extremely
efficient supply chain management, better logistics and widespread distribution
network spearheaded by exclusive franchisee outlets. All the brands of the
company enjoy very strong brand equity and despite being in a price sensitive
market, its brands command a premium.
ARUN Icecream is sold through exclusive franchisee outlets and is
occupying the top slot in Tamilnadu and figures within the top three in the
south
CORPORATE
MILESTONES:
Arun Icecream Launch
1970: M/s. R.G. Chandramogan and
Company set up.
1986: March- M/s. Hatsun Foods (HFPL) incorporated as a private limited company. The
same year HFPL was admitted as a partner in M/s. R.G. Chandramogan and
Company
1986: April HFPL takes over M/s. R.G. Chandramogan
and Company HFPL was allowed to
register the brand name 'Arun' in its own name subject to a royalty payment of
1% on the gross icecream sales.
1991: MPD Factory (Atlantic) -
1993: Hatsun Dairy Private Limited (HDPL), promoted
by M/s. Hatsun Foods
Private Limited, established.
1995: M/s. Hatsun Foods goes public. Changes name to Hatsun Agro Product
Limited. Icecream Factory - Red Hills - Inauguration.
1998: Hatsun Milk
Product Limited (formerly known as HFPL amalgamated with Hatsun Agro Product
Limited.
2000:
2004: Dairy Ingredient
Plant - Inauguration (
BUSINESS DESCRIPTION:
Established in 1970, Subject is one of the providers of
dairy products in
PRESS RELEASES:
CHENNAI
FIRMS' PROMOTERS PLEDGE SHARES
HT Columnists (
18 August 2011
Chennai, Aug. 18 -- The promoters of two Chennai-based companies, Hatsun Agro Products Limited and Rane Holdings Limited , have pledged part of their shareholdings with financial institutions, the companies informed the Bombay Stock Exchange (BSE) on Wednesday.
R.G. Chandramogan, chairman and managing director of Hatsun Agro Products, makers of Arun ice-creams and other brands of dairy products, pledged three million shares on 8 August, taking the total number of shares pledged by him to nearly 12.8 million.
Over the next two days, however, he revoked pledges on slightly more than three million shares. The transactions were the result of adjustments following the repayment or rolling over of previous loans taken to facilitate business operations, the company's chief financial officer S. Subramanian said.
At the end of the exercise, about 48% of Chandramogan's stake in the company, and 27% of the company's outstanding shares, remained pledged.
The promoters of automotive component maker Rane Holdings, L. Ganesh and L. Lakshman, together pledged 461,000 shares, or about 36% of their stake in the company, on 10 August. The pledge is just about 3% of Rane Holdings' outstanding shares. Published by HT Syndication with permission from HT Columnists. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com
26 January 2011
NEW DELHI, Jan 26Asia Pulse - India's Agriculture Minister Sharad Pawar on Tuesday reviewed the milk situation in the country and asked the private companies to supply skimmed milk powder (SMP) to Mother Dairy for improving the domestic availability during the summer season.
"They (SMP makers) are ready to give milk powder to Mother Dairy to enhance the milk supply," Pawar said after meeting with skimmed milk powder manufacturers like Hatsun Agro Products (BSE:531531), VRS Food, Bholebaba and Modern Dairies Limited (BSE:519287).
The meeting was convened in the backdrop of high food inflation of over 15 per cent, led by high prices of vegetables, milk, meat, fish and poultry products. Milk prices have gone up by about 20 per cent in last one year.
Skimmed milk powder is stored now for use in summer season, when demand normally shoots up.
The minister said that the dairy industry said that there is no shortage of milk in the country as farmers are getting better price this year.
"We just assessed the situation of milk. They (milk producers) said they are paying better price and if they continue to pay better price, there will not be any shortage," Pawar said.
According to sources, the price and quantity of milk powder that SMP makers would supply to Mother Dairy will be decided in the next meeting.
Mother Dairy, a wholly owned company of the National Dairy
Development Board (NDDB), markets more then 2.2 million litres of milk daily in
Mother Dairy Milk has a market share of 66 per cent in the
branded sector in
Meanwhile, the government has withdrawn duty benefits for milk products like SMP and casein with immediate effect, to augment domestic availability and curb prices.
Private companies are also in talks with
The country's milk production stood at 112 million tonnes in 2009-10 fiscal year, according to the government data.
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.49.03 |
|
|
1 |
Rs.76.60 |
|
Euro |
1 |
Rs.66.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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.