MIRA
INFORM REPORT
|
Report Date : |
30.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
J K SUGAR LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
19.04.1996 |
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Com. Reg. No.: |
21-079417 |
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Capital
Investment/ Paid-up Capital: |
Rs.300.507 Millions |
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|
CIN No.: [Company Identification
No.] |
L25206WB1996PLC079417 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALJ01998D |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing of Sugar |
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|
No. of Employees: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 47000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
huge accumulated losses recorded by company. However, trade relations are
reported to be fair. Business is active. Payment are reported slow but
correct. The company can be considered for business dealings with some
cautions. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BB+ (Long Term Loan) |
|
Rating Explanation |
Having moderate risk of default regarding
timely servicing of financial obligation |
|
Date |
21.06.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A4 |
|
Rating Explanation |
Having minimal degree of safety regarding
financial obligation it carry very high credit risk and susceptible to
default. |
|
Date |
21.06.2012 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
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|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Plant : |
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Administrative Office : |
Link House, 3, Bahadurshah Zafar Marg, New Delhi-110 002, |
DIRECTORS
As on 31.03.2012
|
Name : |
Bharat Hari Singhania |
|
Designation : |
Chairman |
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|
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|
Name : |
A. K. Jain |
|
Designation : |
Whole-time Director |
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|
Name : |
P. K. Jain |
|
Designation : |
Director |
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|
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|
Name : |
Gautam Khaitan |
|
Designation : |
Director |
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|
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|
Name : |
J. R. C. Bhandari |
|
Designation : |
Director |
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|
Name : |
Vikrampati Singhania |
|
Designation : |
Director |
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|
Name : |
A. K. Kinra |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Bipin Bihari |
|
Designation : |
Company Secretary |
As On 31.03.2012
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(1) Indian |
|
|
|
Individuals / Hindu Undivided Family |
1176877 |
9.78 |
|
Bodies Corporate |
7135534 |
59.30 |
|
|
8312411 |
69.08 |
|
(2) Foreign |
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
8312411 |
69.08 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
Mutual Funds / UTI |
1874 |
0.02 |
|
Financial Institutions / Banks |
121155 |
1.01 |
|
Insurance Companies |
286795 |
2.38 |
|
|
409824 |
3.41 |
|
(2)
Non-Institutions |
|
|
|
Bodies Corporate |
1101301 |
9.15 |
|
Individuals |
|
|
|
|
1062982 |
8.83 |
|
|
376921 |
3.13 |
|
Any Others
(Specify) |
769146 |
6.39 |
|
Non Resident Indians |
71646 |
0.60 |
|
Overseas Corporate Bodies |
697500 |
5.80 |
|
|
331035 |
27.51 |
|
Total Public
shareholding (B) |
3720174 |
30.92 |
|
Total (A)+(B) |
12032585 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
- |
- |
|
|
- |
- |
|
Sub Total |
- |
- |
|
Total
(A)+(B)+(C) |
12032585 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Sugar |
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GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
Bank of · Axis Bank · IDBI Bank · Dena Bank |
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Facilities : |
Rs.
In Millions
(*) Cash credit from Banks are secured by hypothecation of
stock and book debts, etc. and second charge on fixed assets pertaining to
the Sugar unit at Meerganj (Bareilly). Inter Corporate Deposits are payable
on demand.
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Banking Relations
: |
-- |
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Auditors : |
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|
Name : |
S. S. Kothari Mehta and Company Chartered Accountants |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11000000 |
Equity Share |
Rs.10/- each |
Rs.110.000 Millions |
|
5826000 |
Add: Equity Share |
Rs.10/- each |
Rs.58.260 Millions |
|
16826000 |
Closing Equity Shares |
Rs.10/- each |
Rs.168.260
Millions |
|
|
|
|
|
|
15000000 |
Preference Shares |
Rs.100/- each |
Rs.150.000 Millions |
|
186000 |
Add: Preference Shares |
Rs.90/- each |
Rs.16.740 Millions |
|
1500000 |
Less: Preference Shares |
Rs.10/- each |
Rs.15.000 Millions |
|
|
(Due to reduction in face value
of Shares from ` 100/- to ` 90/- per
Share) |
|
Rs.1.740 Millions |
|
1686000 |
Closing Preference Shares |
Rs.90/- each |
Rs.151.740 Millions |
|
3000000 |
Convertible Preference Shares |
Rs.10/- each |
Rs.30.000 Millions |
|
|
Total Preference
Shares Capital |
|
Rs.181.740
Millions |
|
|
|
|
|
|
9000000 |
Unclassified Equity Shares |
Rs.10/- each |
90.000 Millions |
|
9000000 |
Less: Deduction |
Rs.10/- each |
90.000 Millions |
|
|
Closing Equity Shares |
|
0.000 |
|
|
Total |
|
350.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10359585 |
Equity Share |
Rs.10/- each |
Rs.103.596 |
|
1673000 |
Add: Issued Shares |
Rs.10/- each |
16.730
Millions |
|
12032585 |
Closing Equity Shares |
Rs.10/- each |
Rs.120.326 Million |
|
|
|
|
|
|
1500000 |
Zero coupon preference shares |
Rs.90/- each |
Rs.135.000 |
|
1500000 |
Less: Deduction |
Rs.90/- each |
Rs.135.000 |
|
|
Closing |
|
Nil |
|
|
|
|
|
|
1500000 |
(Series-A) 8% Cumulative Redeemable
Preference share |
Rs.90/- each |
Rs.135.000 |
|
|
|
|
|
|
185338 |
(Series-B) 8% Cumulative
Redeemable Preference share |
Rs.90/- each |
Rs.16.680 |
|
|
|
|
|
|
2850134 |
Zero Coupon fully convertible
Redeemable Preference Share |
Rs.10/- each |
Rs.28.501 |
|
|
|
|
|
|
|
Sub Total of Preference
share Capital |
|
Rs.180.181 Millions |
|
|
|
|
|
|
|
Total |
|
300.507 Millions |
A) Rights and
restrictions attached to preference shares are as under:
(i) Preference Shares:-
8% Cumulative Redeemable Preference Share of Rs.90 each fully paid up
15,00,000, 8% cumulative redeemable preference shares (Series A) of
Rs.90 each issued on 30th March 2012 to be redeemed in three equal annual
installments Rs.30 per share on 31.03.2029,31.03.2030 and 31.03.2031.
1,85,338, 8% cumulative redeemable preference shares (Series B) of Rs.90
each issued on 30th March 2012 to be
redeemed in three equal annual installments of Rs.30 per share on
01.07.2029,01.07.2030 and 01.07.2031.
Other right and restrictions of both Series A and B are as under:
The Company shall have the option to prematurely redeem in part or in
full the outstanding amount of the CRPS series-A and series-B at any point of
time without any premium or discount by giving one month notice in writing to
JKTIL subject to the provision of Section 80 of the Companies Act 1956.
However, if the financial position of the Company improves, JKTIL shall have
right to call for redemption part or full of the aforesaid CRPS series-A and
series-B by giving one month notice in writing to the Company.
If the Company fails to pay dividend for consecutive period of three (3)
financial years, the holder (JKTIL) may at its sole option call for redemption
of the CRPS series-A and series-B within a period of one (1) year thereof, in
which case the redemption shall be by way of issuance of appropriate
convertible instruments convertible into equity shares subject to applicable
regulations/guidelines in this regard.
(ii) The Terms of Zero Coupon Fully Convertible Redeemable Preference
Shares issued on 30th March 2012 are as under:
(a) The convertible Preference Shares will be compulsorily converted
into Equity Shares any time after expiry of 17 months from the date of
allotment but before expiry of 18 months, unless the holder of these
convertible preference shares have excercised the option for conversion into
equity shares before expiry of 17 months from the date of allotment subject to
prevailing SEBI Regulations.
(b) No. of Convertible Preference Shares to be issued-up to 28,51,000
Nos. of Rs.10 each of the aggregate value not to exceed Rs.28.600 Millions ,
convertible into 17,78,000 Equity Shares of Rs.10 each of the Company at a
price of Rs.16.03 (including a premium of Rs.6.03) per Equity Shares on
preferential basis to JK Tyre and Industries Limited (JKTIL).
(c) The holder of such Convertible Preference Shares shall be entitled
to subscribe and to be allotted 17,78,000 Equity Shares of the face value of
Rs.10 each of the Company at a price of Rs.16.03 (including a premuim of Rs.
6.03) per Equity Share, in one or more tranches, at any time before expiry of
eighteen (18) months from the date of allotment. For this purpose, the holder
will give an advance notice of at least ten (10) days exercising the aforesaid
option specifying the number of Convertible Preference Shares proposed to be
converted into Equity Shares.
b) Details of shares held by
shareholders holding more than 5% of the aggregate shares in the Company
|
Share Holder
Name: |
31.03.2012 |
31.03.2011 |
|
(i) Equity Shares |
|
|
|
Bengal & Assam Company
Limited |
4647691 |
4647691 |
|
J K |
1673000 |
|
|
Edgefield Securities Limited |
697500 |
697500 |
|
Habras International (Registered
in the name of Shri Anshuman Singhania as partner of the firm) |
530000 |
530000 |
|
(ii) Preference Shares |
|
|
|
Zero coupon preference shares JK Tyre and Industries Limited |
- |
- 1500000 |
|
8% Cumulative Redeemable Preference
Shares (Series A) JK Tyre and Industries Limited |
1500000 |
- |
|
8% Cumulative Redeemable
Preference Shares (Series B) JK Tyre and Industries Limited |
185338 |
- |
|
Zero Coupon fully Convertible
Redeemable Preference Share JK Tyre and Industries Limited |
2850134 |
- |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
300.507 |
238.596 |
238.596 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
62.234 |
|
|
4] (Accumulated Losses) |
(288.815) |
(76.359) |
0.000 |
|
|
NETWORTH |
11.692 |
162.237 |
300.830 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
908.113 |
153.104 |
645.162 |
|
|
2] Unsecured Loans |
9.182 |
75.044 |
75.041 |
|
|
TOTAL BORROWING |
917.295 |
228.148 |
720.203 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
928.987 |
390.385 |
1021.033 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
709.422 |
726.568 |
761.866 |
|
|
Capital work-in-progress |
0.699 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
125.444 |
125.444 |
57.588 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
589.129
|
498.441 |
1093.522 |
|
|
Sundry Debtors |
98.222
|
20.697 |
28.091 |
|
|
Cash & Bank Balances |
111.899
|
110.845 |
17.476 |
|
|
Other Current Assets |
16.387
|
7.736 |
0.000 |
|
|
Loans & Advances |
36.941
|
41.790 |
28.848 |
|
Total
Current Assets |
852.578
|
679.509 |
1167.937 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
480.582
|
921.100 |
881.542 |
|
|
Other Current Liabilities |
263.492
|
207.266 |
72.631 |
|
|
Provisions |
15.082
|
12.770 |
12.185 |
|
Total
Current Liabilities |
759.156
|
1141.136 |
966.358 |
|
|
Net Current Assets |
93.422
|
(461.627) |
201.579 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
928.987 |
390.395 |
1021.033 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1605.843 |
1585.897 |
986.032 |
|
|
|
Other Income |
3.514 |
4.668 |
9.473 |
|
|
|
TOTAL (A) |
1609.357 |
1590.565 |
995.505 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1517.339 |
939.350 |
|
|
|
|
Employee benefit expenses |
81.849 |
69.614 |
|
|
|
|
Other expenses |
67.746 |
53.866 |
|
|
|
|
|
1666.934 |
1062.83 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
(72.648) |
588.110 |
|
|
|
|
TOTAL (B) |
1594.286 |
1650.940 |
972.496 |
|
|
|
|
|
|
|
|
Less |
PROFIT/LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
15.071 |
(60.375) |
23.009 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
98.414 |
84.027 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(83.343) |
(144.402) |
23.009 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
52.196 |
50.828 |
50.019 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL
ITEMS |
78.771 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX (E-F) (G) |
(214.310) |
(195.230) |
(27.010) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
(67.856) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
AFTER TAX (G-I) (J) |
(214.310) |
(123.374) |
(27.010) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(117.735) |
9.962 |
37.240 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Malases Storage Maintenances Reserve Fund |
0.000 |
0.323 |
0.268 |
|
|
BALANCE CARRIED
TO THE B/S |
(332.045) |
(117.735) |
9.962 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
20.68 |
12.30 |
2.61 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(13.32) |
(7.76) |
(2.71) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(13.35) |
(12.31) |
(2.74) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(13.72) |
(13.88) |
(1.40) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(18.33) |
(1.20) |
(0.09) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
143.41 |
8.44 |
5.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.12 |
0.60 |
1.21 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Constitution
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
No |
|
No.
of Employees |
No |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
No |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
No |
|
PAN of
Proprietor/Partner/Director, if available |
No |
|
Passport No of
Proprietor/Partner/Director, if available |
No |
|
Voter ID No of
Proprietor/Partner/Director, if available |
No |
OPERATIONS
During the year the company achieved a turnover of Rs.1666.900 Millions as
compared to Rs.1647.100 Millions during the previous year. The crushing was
about 40% higher at Rs.0.587 Millions MT as against Rs.4.20 Millions MT last
year. Recovery during the period improved to 9.15%. Power Export registered a
significant increase of 66% as compared to the previous year. However, these
operational improvements were overshadowed by the financial burden caused due
to further increase of cane price by the State Government from Rs.205 per
quintal last year to Rs.240 per quintal for 2011-12, an increase of over 17%.
The prices of Sugar did not reflect the increase in raw material prices and
they moved within a band of Rs.27500 to Rs.28500 per MT. The sugar prices
clearly remained un-remunerative against disproportionately high cane prices imposed
by the State Government.
Despite cost reduction measures that the company undertook as well as
improvement at operating level, the company recorded a marginal operating
profit (PBIDT) of Rs.15.100 Millions. To make the matters worse, during the year
Supreme Court also passed a judgement to pay the differential cane price for
the season 2007-2008 to the tune of Rs.78.800 Millions as a one-time expense.
This exceptional item, added to the interest and depreciation led to a net loss
of Rs.214.300 Millions
The accumulated losses of the Company have exceeded 50% of the peak net
worth of the company in the immediately preceding four financial years. The
company is taking appropriate steps in pursuance of section 23 (1) of Sick
Industrial Companies (Special Provisions) Act 1985
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL SUGAR
INDUSTRY SCENARIO
As per International Sugar Organisation (ISO), the global sugar
production is expected to rise by 9.6 Million tons to a record of 173.8 Million
tons in 2011-12 with bigger crop in
Analysts anticipate lower sugar prices during the next six months due to
higher sugar production in
Due to surplus production the International prices during the year remained
under pressure. The sugar prices which were prevailing at around USD 760 per MT
in May-June, 2011 has come down to USD 560 in May, 2012 registering a downfall
of over 26%. With the prevailing crude oil prices around USD 125 per barrel ,
SUGAR INDUSTRY
SCENARIO IN
As per Indian Sugar Mills Association (ISMA), it is expected that Sugar
production in the country will cross the estimated figure of 260 lac tons and
may touch 265 lac tons as against the production of 245 lac tons last year. 251
lac tons of sugar has already been produced up to the end of April, 2012 –
which is almost 25 lac tons more than the corresponding period of last year.
Most of the increase has been contributed by U.P. which has seen an increase of
almost 11 lac tons at a total production of 70 lac tons as against 59 lac tons
last year.
During the year, Central Government had revised upwards the Fair and
Remunerative Price (FRP) of cane to ` 145 per quintal from ` 139.12 last year.
Against the increase of 4.2% in FRP by Central Government, the state of UP had
announced the State Advised Price (SAP) of cane for 2011-12 at ` 240 per
quintal, up by over 17% from previous year figure of ` 205 per quintal.
Sugar prices remained almost constant during the entire year with
marginal variation between ` 27500 per MT and ` 28500 per ton, compared tolast
year average realisation of about 27000 per MT, despite heavy increase in cane
prices, which has gone up by 17% in U.P. This mismatch of cane price and sugar
price has created an acute pressure on profitability, raising questions on the
survival of sugar industry especially in U.P. The uneconomic high price of cane
has made the operations unviable for most of the sugar mills in U.P. resulting
in an all time high outstanding arrear of cane price at ` 4500 cr at the close
of the season 2011-12.
On consistent pressure from industry, the Central Government had allowed
exports of 35 lacs tons of sugar in 5 installments. Subsequently, in the month
of May, 2012, the Government has freed sugar exports. This is an appreciable
step by the Government, however, due to delayed decision, sugar industry may
not reap the benefit as the international prices of sugar has come down to USD
560 per ton making the exports from
OUTLOOK
The impact of increase in cane price and other input cost could not be absorbed
in the sugar price resulting in acute pressure on the financial health of sugar
industry in
The expansion of cogenerated power as well as increased use of Ethanol
will help the industry to balance its revenue from different sources, hedging
its dependence on the commodity cycles of sugar alone.
The industry has been continuously requesting Government for a
phase-wise reform of sugar sector by implementing various decontrol measures.
The release mechanism should be abolished and the sugar factories should have
the freedom of selling sugar as per their commercial decision. The Government
should consider withdrawal of the mandatory levy system and like in case of
other crops such as wheat, rice etc. consider procuring suger directly from the
market for public distribution system (PDS)
CONTINGENT
LIABILITY:
Rs. in Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Claims
against the Company not acknowledged |
|
|
|
Income
Tax |
3.925 |
3.925 |
|
Trade
tax |
1.474 |
9.450 |
|
Others |
6.569 |
6.569 |
|
Excise
demands under dispute |
2.033 |
2.537 |
FIXED ASSETS:
·
Fixed assets
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Intangible Assets
Software
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.55.41 |
|
|
1 |
Rs.86.93 |
|
Euro |
1 |
Rs.68.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
BYI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.