MIRA
INFORM REPORT
|
Report Date : |
20.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
OLAM AGRO INDIA LIMITED (w.e.f. 18.11.2009) |
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|
|
Formerly Known
As : |
OLAM EXPORTS ( |
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|
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Registered
Office : |
DLF Building No. 8, Tower A, Ground Floor, Phase II, |
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Country : |
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|
|
Financials (as
on) : |
31.03.2010 |
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|
|
|
Date of
Incorporation : |
28.10.1994 |
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|
|
|
Com. Reg. No.: |
05-40113 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.137.922 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72200HR1994PTC040113 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKO01220C |
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|
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PAN No.: [Permanent Account No.] |
AAACO4020D |
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Legal Form : |
A closely held public limited liability company |
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Line of Business
: |
The Company is engaged into the processing of Raw Cashew-Nut, Coffee,
Cotton, Sesame, groundnut and Paddy
and in Manufacturing of Sugar. The Company also does trading of Cashew
Kernels, Clean Coffee, Cotton,
Rice, Sugar. Sesame, Raw Wheat, Pulses, Maize, Soyabean, Ground Nut, Pepper,
Timber, Mustard feeds, Oil Seeds, Almonds and other products. |
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|
|
|
No. of Employees
: |
224 Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3400000 |
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|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track.
Profitability of the company appears to be low. However, trade relations are
reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealings at usual
tarde terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
DLF Building No. 8, Tower A, Ground Floor, Phase II, |
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Tel. No.: |
91-124-4839999 |
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Fax No.: |
91-124-4839977 |
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E-Mail : |
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There are 12
Branches |
|
DIRECTORS
As on 27.09.2010
|
Name : |
Mr. Sanjay Sacheti |
|
Designation : |
Whole Time Director |
|
Address : |
Flat No. 3, Pearl Court III, |
|
Date of Birth/Age : |
22.06.1966 |
|
Date of Appointment : |
02.11.2000 |
|
DIN No.: |
00271310 |
|
S.No. |
CIN |
Name of the
Company |
Current
designation of the director |
Date of
appointment at current designation |
Original date of
appointment |
Company Status |
Defaulting
status |
|
1 |
U72200HR1994PLC040113 |
Olam Agro India
Limited |
Whole-time
director |
02-11-00 |
02-11-00 |
Active |
NO |
|
|
|
|
Name : |
Mr. Srinivasa Rao Monangi |
|
Designation : |
Whole Time Director |
|
Address : |
B-011, |
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Date of Birth/Age : |
01.08.1965 |
|
Date of Appointment : |
23.09.2009 |
|
DIN No.: |
02743466 |
Other Directorship
|
S.No. |
CIN |
Name of the
Company |
Current
designation of the director |
Date of
appointment at current designation |
Original date of
appointment |
Company Status |
Defaulting
status |
|
1 |
U72200HR1994PLC040113 |
Olam Agro India
Limited |
Whole-time
director |
23-09-09 |
23-09-09 |
Active |
NO |
|
|
|
|
Name : |
Mr. Amit Pant |
|
Designation : |
Whole Time Director |
|
Address : |
A 304, |
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Date of Birth/Age : |
30.08.1970 |
|
Date of Appointment : |
01.02.2008 |
|
DIN No.: |
01927533 |
Other Directorship
|
S.No. |
CIN |
Name of the
Company |
Current designation
of the director |
Date of
appointment at current designation |
Original date of
appointment |
Company Status |
Defaulting
status |
|
1 |
U72200HR1994PLC040113 |
Olam Agro India
Limited |
Whole-time
director |
29-09-08 |
01-02-08 |
Active |
NO |
|
|
|
|
Name : |
Mr. Krishnan Ravi Kumar |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
21.05.1964 |
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Date of Appointment : |
13.05.1998 |
|
DIN No.: |
01602152 |
Other Directorship
|
S.No. |
CIN |
Name of the
Company |
Current
designation of the director |
Date of
appointment at current designation |
Original date of
appointment |
Company Status |
Defaulting
status |
|
1 |
U72200HR1994PLC040113 |
Olam Agro India
Limited |
Director |
13-05-98 |
13-05-98 |
Active |
NO |
|
2 |
U72200TN2007PTC064492 |
Olam Information
Services Private Limited |
Director |
20-08-07 |
20-08-07 |
Active |
NO |
|
|
|
|
Name : |
Mr. Ashok Krishen |
|
Designation : |
Director |
|
Address : |
I |
|
Date of Birth/Age : |
09.12.1962 |
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Date of Appointment : |
22.02.2001 |
|
DIN No.: |
00309956 |
Other Directorship
|
S.No. |
CIN |
Name of the
Company |
Current designation
of the director |
Date of
appointment at current designation |
Original date of
appointment |
Company Status |
Defaulting
status |
|
1 |
U72200HR1994PLC040113 |
Olam Agro India
Limited |
Director |
22-02-01 |
22-02-01 |
Active |
NO |
|
|
|
|
Name : |
Mr. Sridhar Krishnan |
|
Designation : |
Director |
|
Address : |
18 Jalan Jambu Ayer, |
|
Date of Birth/Age : |
13.07.1954 |
|
Date of Appointment : |
23.03.2009 |
|
DIN No.: |
02608329 |
Other Directorship
|
S.No. |
CIN |
Name of the
Company |
Current
designation of the director |
Date of
appointment at current designation |
Original date of
appointment |
Company Status |
Defaulting
status |
|
1 |
U72200HR1994PLC040113 |
Olam Agro India
Limited |
Director |
23-09-09 |
23-03-09 |
Active |
NO |
KEY EXECUTIVES
|
Name : |
Mr. Sanjeev Mishra |
|
Designation : |
Secretary |
|
Address : |
L-18, 2nd Floor, West Patel Nagar, |
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Date of Birth/Age : |
17.06.1983 |
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Date of Appointment : |
31.07.2009 |
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PAN No.: |
APUPM9988G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 27.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Olam Investment Limited, |
|
9048964 |
|
Sanjay Sacheti |
|
1 |
|
Intertech International Limited, |
|
1 |
|
Olam International Limited, |
|
4743256 |
|
Ashok Krishen |
|
1 |
|
Parakeet International Limited, |
|
1 |
|
Srinivasa Rao Monangi |
|
1 |
|
Total |
|
13792225 |
As on 27.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged into the processing of Raw Cashew-Nut, Coffee,
Cotton, Sesame, groundnut and Paddy
and in Manufacturing of Sugar. The Company also does trading of Cashew
Kernels, Clean Coffee, Cotton,
Rice, Sugar. Sesame, Raw Wheat, Pulses, Maize, Soyabean, Ground Nut, Pepper,
Timber, Mustard feeds, Oil Seeds, Almonds and other products. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity * / ** |
Actual
Production |
|
Sugar |
MT |
NA |
2500 |
7164 |
|
Molasses (By-product) |
MT |
NA |
-- |
3216 |
* Represents
Sugarcane crushing capacity per day in tones.
** as certified by the management.
Note: Raw materials
like Coffee Beans, Kapas, Paddy,
Raw Sugar and Raw cashewnuts are processed on contract basis at factories which
are taken on lease and are also processed in factories owned by the Company and
accordingly, the Licensed and Installed Capacities and actual production from
processing of these materials are not given.
GENERAL INFORMATION
|
No. of Employees : |
224 Approximately |
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Bankers : |
·
IDBI Bank Limited Panampilly, P B No. 4253, ·
HDFC Bank Limited Mariam Centre, III Floor, Anna Salai,
Chennai – 600 002, |
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Facilities : |
* Amounts repayable within a year Rs.42.000 millions.
Note : * Secured by Corporate
Guarantee given by Olam International Limited, ** Amount repayable within a year Rs. NIL |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S R Batliboi and Company Chartered Accountant |
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Address : |
Golf View, Corporate Tower B, Sector – 42, |
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Tel. No.: |
91-124-4644000 |
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Fax No.: |
91-124-4644050 |
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|
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Holding Company : |
Olam Investment Limited, |
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Ultimate Holding Company : |
Olam International Limited, |
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Fellow Subsidiaries : |
·
Outspan ( ·
Olam ·
Olam Tanzania Limited ·
Olam Mozambique Limited ·
Caraway Pte Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17500000 |
Equity Shares |
Rs.10/- each |
Rs.175.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13792225 |
Equity Shares |
Rs.10/- each |
Rs.137.922
millions |
(Of the above, 9048964 shares are held
by Olam Investments Limited,
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 |
137.922 |
137.922 |
90.490 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
712.311 |
692.121 |
423.025 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
850.233 |
830.043 |
513.515 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
199.500 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
5723.951 |
1333.055 |
4654.084 |
|
|
TOTAL BORROWING |
5923.451 |
1333.055 |
4654.084 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
1.712 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6773.684 |
2164.810 |
5167.599 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
797.755 |
819.571 |
154.696 |
|
|
Capital work-in-progress |
218.994 |
3.790 |
21.712 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.296 |
0.270 |
0.364 |
|
|
DEFERREX TAX ASSETS |
23.154 |
0.000 |
21.762 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7760.934
|
3566.573 |
4532.684 |
|
|
Sundry Debtors |
859.987
|
618.156 |
1019.733 |
|
|
Cash & Bank Balances |
128.136
|
96.962 |
85.739 |
|
|
Other Current Assets |
235.492
|
418.084 |
282.800 |
|
|
Loans & Advances |
418.643
|
366.646 |
292.632 |
|
Total
Current Assets |
9403.192
|
5066.421 |
6213.588 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2825.544
|
1226.923 |
1188.669 |
|
|
Other Current Liabilities |
842.488
|
2494.946 |
49.383 |
|
|
Provisions |
1.675
|
3.373 |
6.471 |
|
Total
Current Liabilities |
3669.707
|
3725.242 |
1244.523 |
|
|
Net Current Assets |
5733.485
|
1341.179 |
4969.065 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6733.684 |
2164.810 |
5167.599 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover (Net) |
12234.098 |
15691.538 |
12069.104 |
|
|
|
Software and business process outsourcing service |
0.000 |
0.000 |
48.570 |
|
|
|
Other Income |
678.359 |
752.274 |
630.365 |
|
|
|
TOTAL (A) |
12912.457 |
16443.812 |
12748.039 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed / Sold |
11517.571 |
13877.160 |
11149.493 |
|
|
|
Processing charges |
93.842 |
83.948 |
107.134 |
|
|
|
Personnel Expenses |
278.349 |
228.045 |
165.753 |
|
|
|
Operating and Other Expenses |
629.648 |
1724.837 |
762.485 |
|
|
|
TOTAL (B) |
12519.410 |
15913.990 |
12184.865 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
393.047 |
529.822 |
563.174 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
228.665 |
338.711 |
358.697 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
164.382 |
191.111 |
204.477 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
131.058 |
79.909 |
22.447 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
33.324 |
111.202 |
182.030 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
13.134 |
41.323 |
75.612 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
20.190 |
69.879 |
106.418 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
489.336 |
419.457 |
313.039 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
509.526 |
489.336 |
419.457 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
6208.410 |
8301.365 |
7451.505 |
|
|
|
Export of Software services – Infotech division |
0.000 |
0.000 |
48.570 |
|
|
|
Claims received |
18.623 |
71.781 |
9.226 |
|
|
|
Recovery of Ocean Freight |
0.000 |
0.000 |
13.069 |
|
|
|
Reimbursement of NRV Loss and Other expenses |
30.095 |
101.153 |
0.000 |
|
|
|
Other Income |
0.000 |
1.591 |
0.000 |
|
|
TOTAL EARNINGS |
6257.128 |
8475.890 |
7522.370 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
485.277 |
166.036 |
188.060 |
|
|
|
Traded Goods |
2372.497 |
1440.128 |
757.115 |
|
|
|
Capital Goods |
74.868 |
17.742 |
0.000 |
|
|
TOTAL IMPORTS |
2932.642 |
1623.906 |
945.175 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.46 |
6.04 |
11.42 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.16
|
0.42 |
0.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.27
|
0.71 |
1.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.33
|
1.89 |
2.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.13 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
11.28
|
6.09 |
11.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.56
|
1.36 |
4.99 |
LOCAL AGENCY FURTHER INFORMATION
NOTE
The company its changed its registered office from A-24, Ist Floor, Hauz
Khas Main, New Delhi – 110 016, Delhi, India.
The registered office has again been shifted to Haryana in 2010.
NATURE OF
OPERATIONS
Subject, (Formerly
Olam Exports (
ECOMOMIC SCENARIO
The year 2009-10 saw the global economy
emerging from the worst-ever financial crisis since the Great Depression.
The year also
witnessed a delayed and below normal monsoon followed by drought like
conditions in several parts of the country. While the Indian economy waded
through these troubled waters and posted a remarkable recovery, a big worry- in
the form of spiraling food inflation- started to trouble the country and
industry, especially in the second half of the year. These high food prices, together with the gradual hardening
of other input costs, threatened to
force customers to tighten their purse-strings, particularly in the resurgent
rural
In spite of all
these challenges, consumer demand remained robust fuelling growth in consumer
products particularly in the rural areas. This was helped by government
initiatives such as the rural job guarantee schemes, infrastructure development
projects, debt waiver schemes and the spike in agri-commodity prices which has
continued to boost agricultural incomes in recent years. As a result, aspiration levels in
rural
In the Indian
Economy, the major concern during the year was rising food inflation specially
in the second half. While the overall Wholesale Price Index (WPI) based
inflation was 9.9% on a year on
year basis in March 2010 food inflation was
as high as 16.6% reflecting the severe adverse impact of a deficient
monsoon. With persistent supply side pressures, inflation became more
generalized towards the end of the year, with inflation in non food
manufactured products.
According to the
data released by the Central Statistics Office (CSO), the gross domestic
product (GDP) in Q4 of 2009-10 was estimated at Rs.12051190.000 millions, as
against Rs.11100410.000 millions in Q4 of 2008-09.1ndia1s economy grew by 8.6
per cent in the last quarter of 2009-10 and clocked 7.4 per cent growth for the
fiscal year, ended March 2010. The economy had grown by 6.1 per cent in the
first quarter and 7.9 per cent in the second quarter, before dropping to h per cent in the third.
As per the IMF, World
output is estimated to grow at 4.2% in 2010 after a decline of 0.6% in 2009
with the emerging and developing economies- led by China and India set to grow
by 6.3% in 2010 against a modest 2.4% in 2009 and a sharp rebound by advanced
economies with a growth in output estimated at 2.3% in 2010 against a
decline of 3.2% in 2009.
COMPANY
PERFORMANCE
The ban on export of rice and higher support
prices for wheat, despite a record bumper crop ensured continued buoyancy in
food grain prices. Stock control limits continued to be imposed for most part
of the year. In the wake of Government interventions such as ban on exports,
market actions at subsidized prices and continued imposition of stock controls,
resultant to this trading had become extremely risky in several commodities.
These challenging
circumstances also created pressures on the performance of the company. Despite
the very difficult trading conditions, characterized by extremely volatile
financial, commodity and consumer markets the Company managed to deliver
another year of steady performance through its operational and procurement
efficiencies, productivity improvement, cost reduction programmes. However, the
Gross turnover for the year went down by 21% to Rs.12912.45 Million. Pre-tax profit also reduced by 70% to Rs.33.32 Million whereas post-tax profit
registered a slide of 71% to Rs.20.19 Million. Earning per Share for the year
was Rs.1.46.
Due to depressed
demand and continuous fall in commodity prices, the Company has carried a
sizeable inventory due to its seasonality. This has resulted in high carrying
cost and lock in of working capital. Accordingly, there has been an adverse
impact on both the top line as well as bottom line for the year under review as
compared to previous year.
Product segment
wise review of performance is as under:-
Food Staple and Packaged
Foods
This segment,
mainly consisting of Rice, Wheat,
Soybean, Milk powder, Mustard Seeds, Oil Seeds and Sugar, has been a thrust area of the Company during the year
under report.
This year also
Indian Government continued the export ban on non basmati rice in order to
check the price rise by ensuring adequate availability in the local markets. In
course of these regulations the Company has changed its focus from Non-
Basmati/Basmati Rice trading to Basmati rice processing and milling. The
beginning of 2009 saw India11 Basmati manufacturers, traders and exporters
looking for new export destinations with their focus on
The Sugar Industry
has been intrinsically cyclical in
The Company could
achieve volume of 17,317 MT in Maize in year 2009-10 as against
volume of 76,184 MT in the year 2008-09. The Company has also witnessed decline
in its Oilseeds volume of 59,016 MT
for the current year as against volume of 120,545 MT in the previous year. During the year the company's
volumes of Soyabean reduced to 138 MT
for the year as against 5,368 MT for the previous year
resultant to lower export demand of soyameal on account of poor demand from
global livestock industry. The Company has downsized its business for Maize,
Oilseeds including Soyabean as it has turned out to be a non-profitable
proposition given inadequate margin to justify continuity of the business,
During the year, the Company has not taken any new position rather liquidated old stocks.
The Company was able to achieve volume of 441 MT of Skimmed Milk Powder during the year as against 2,608 MT in previous year.
Edible Nuts, Beans
and Spices
This segment
mainly consists of products like Cashew, Pepper, Sesame, Pulses and Peanuts.
Cashew has always been the bread and butter in
Company's Product Basket for last so many years. The Company could trade 4,649
MT in year 2009-10 as against 4,362 MT traded
in the last financial year. RCN trading reduced to 6,978 MT against 17,829 MT
recorded in previous year, due to increase in prices, inadequate margins
and lack of opportunities.
Sesame has
witnessed an increase in exports volumes. The Company achieved volumes of 4,718 MT in the year 2009-10 as against 4,154 MT in the year
2008-09. The Company could achieve volume of 117 MT during the year as against 2,026 MT in previous year, in Pepper.
In line with
previous year, during the current year conditions were not conducive for the
pulses business due to increase in prices. During the year of report the
Company was able to achieve turnover of 28,798
MT in pulses as against 36,127 MT
in the year 2008-09.
The Company could achieve volume of 14,797 MT as against 16,849 MT in year 2008-09, in Mustard Seed.
Fibre and Wood
Products
The Company also
continued to capitalize this by witnessing growth in its volume of trading
readymade cotton bales to 264,286 Bales
(i.e. 43,174.97 MT) in year 2009- 10 as against 203,785 Bales(i.e. 33,720.39 MT) in year 2008-09. The company is
confident to achieve further growth in coming season also.
During the
financial year 2009-10 the Company was able to sell 882 MT of processed Cotton
Lints as against 4,025 MT of processed Cotton Lints, in the
financial year 2008-09.
Confectionery and Beverages
CORPORATE OVERVIEW
CHANGE IN NAME OF
THE COMPANY FROM OLAM EXPORTS (
In view of
diversification of the business of the Company and considering the significant
volumes of business being done in the domestic market, it was imperative to
change the name of the Company in order to have a fair reflection of the
activities carried out. Therefore, the Board of Directors subject to the
approval of Shareholders of the company and Registrar of Companies changed the
name of the company from Olam Exports (India)
Limited to Olam Agro India
Limited.
CHANGE IN
REGISTERED OFFICE OF THE COMPANY
The Directors
considered that Gurgaon has been ranked as one of the best cities in terms of
life at work. The sound infrastructure facilities at Gurgaon which include well
developed industria1 estates, reliable communication network, developed
commercial markets and good credit for entrepreneurial opportunities, strategic
geographical location, close proximity to the international airport and
favourable tax policy prevalent in Haryana resulted in emergence of Gurgaon as
hub for multinational companies as compared to have the Registered Office in
New Delhi . Therefore, the Registered Office of the Company was shifted to DLF Building No. 8, Phase-11, Ground Floor,
INCREASE IN THE
BORROWING POWER OF THE COMPANY
In view of the
rapidly expanding business volumes of the company, the amount of ceiling fixed
on borrowing power of the Board at the
Annual General Meeting dated 29th September, 2008 was found to be inadequate to
meet requirements of the Company. During the year the amount of ceiling fixed
on borrowing power of the Board has been enhanced from Rs.8000.000 millions to
Rs.10000.000 millions at the Extraordinary General Meeting dated 12th March,
2010.
FUTURE PROSPECTS
India, an emerging
economy, has witnessed unprecedented levels of economic expansion, along with
countries like China, Russia, Mexico and Brazil, India, being a cost effective
and labor intensive economy, has benefited immensely from outsourcing of work
from developed countries, and a strong manufacturing and export oriented
industrial framework. With the economic pace picking up, global commodity
prices have staged a comeback from their lows and global trade has also seen
healthy growth over the last two years.
The global economy
seems to be recovering after the recent economic shock. The Indian economy,
however, was hit in the latter part of the gIobal recession and the real
economic growth witnessed a sharp fall, followed by lower exports, lower
capital outflow and corporate restructuring. It is expected that the global
economies will continue to sustain in the short-term, as the effect of stimulus
programs is yet to bear fruit and tax cuts
are working their way through the system in 2010. Due to the strong position of
liquidity in the market, large corporations now have access to capital in the
corporate credit markets.
The Indian economy
would grow by 8.5 per cent in 2010-1 1 and nearly 10 per cent in 201 1-12 by taking higher agricultural productivity,
industrial output and demand for higher exports followed by the revival of
global economy in to account. In the FY2010-11, agricuIture would contribute
more than 17.6 per cent to the Indian Economy. As per the agriculture data,
south-west monsoon and fine winters in the north is likely to increase output,
which will contribute to the GDP growth.
In the present
market scenario, the Company is actively Iooking at opportunities arising from
the imbalance in domestic/ global supply chain management. The Company is also
planning to explore growth aspects available in supply chain management in
order to increase the margins. The Company plans to adopt an aggressive cost
management measures to enhance cost competitiveness and cushion the impact of
the economic slowdown.
The Company
continues to remain focused on proactive management of temporary surplus
liquidity and foreign exchange
exposures within a well defined risk management framework backed by strong
internal control systems. It shall be worthwhile to mention that despite the
increased volatility and risk aversion in the financial markets, the Company
continued to improve its treasury performance through its strong risk management
processes, judicious hedging of price risk on the commodity exchanges, a
balanced and diversified commodity portfolio and increased tied-up trade.
CONTINGENT
LIABILITIES (NOT PROVIDED FOR) IN RESPECT OF
·
Income Tax Demands under appeal for various years
Rs.27.779 millions
·
Sales Tax Demands
under appeal for various years
Rs.25.362 millions
·
Claims against the Company not acknowledged as
debts Rs.3.121 millions
Based on the favourable decisions in similar cases/legal opinions taken by the
Company/discussions etc., with the consultants etc., the Company believes that
it has good cases in respect of
above and hence, no provision there-against is considered necessary.
FORM 8
|
Corporate identity number of the company |
U72200HR1994PLC040113 |
|
Name of the company |
Olam Agro India Limited |
|
Address of the registered office or of the principal place of business in |
DLF Building No. 8, Tower A, Ground Floor, Phase II, |
|
This form is for |
Modification of charge |
|
Charge identification (ID) number of the charge to be modified |
10185729 |
|
Type of charge |
Immovable property |
|
Particular of charge holder |
IDBI Bank Limited Panampilly, P B No. 4253, |
|
Nature of instrument creating charge |
Declaration and Undertaking executed on 20th March, 2010 by Olam Agro
India Limited (Borrower) in favour of IDBI Bank Limited (Lender) to secure a
loan of Rs.210.000 millions by Mortgage on First charge basis to secure
entire fixed assets of the Borrower located at Narmada Nagar Village Ghatwa
tehsil Thikri District Barwani in the State of Madhya Pradesh, both present
and future. |
|
Date of instrument Creating the charge |
20.03.2010 |
|
Amount secured by the charge |
Rs.210.000 millions |
|
Brief of the principal terms an conditions and extent and operation of
the charge |
Rate of Interest The payment of interest shall commence from first day of the
succeeding month of first disbursement of loan and thereafter first of every
month at BPLR-250bps per annum (present BPLR is 12.75%) Terms of Repayment Repayment of principal amount of loan shall be made in 20 quarterly
installments of Rs.10.500 millions commencing from January 1, 2010. Margin NIL Extent and Operation of the charge Mortgage on First charge basis to secure entire fixed assets of the
Borrower located at Narmada Nagar Village Ghatwa tehsil Thikri District
Barwani in the state of Madhya Pradesh, both present and future. |
|
Short particulars of the property or asset(s) charged (including
complete address and location of the property) |
Entire fixed assets of the Borrower located at Narmada Nagar Village
Ghatwa tehsil Thikri District Barwani in the state of Madhya Pradesh, together
with all buildings and structures thereon and all plant and machinery to the earth or permanently fastened to anything
to the earth. |
|
Particulars of the present modification |
Mortgage on First charge basis to secure entire fixed assets of the Borrower
located at Narmada Nagar Village Ghatwa tehsil Thikri District Barwaniin the
state of Madhya Pradesh, both present and future. |
FIXED ASSETS
·
·
·
Buildings
·
Plant and Machinery
·
Office Equipment
·
Vehicles
·
Furniture and Fittings
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.47.79 |
|
|
1 |
Rs.75.05 |
|
Euro |
1 |
Rs.65.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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.