|
Report Date : |
12.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
RUCHI INFRASTRUCTURE LIMITED |
|
|
|
|
Registered
Office : |
615 Tulsiani Chambers Nariman
Point, Mumbai – 400021, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
28.08.19984 |
|
|
|
|
Com. Reg. No.: |
033878 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.751.301 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65990MH1984PLC033878 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company shares are listed on the
stock exchange |
|
|
|
|
Line of Business
: |
Manufacture of vegetable oils and fats |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46 ) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9293456 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. 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 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
615 Tulsiani Chambers Nariman
Point, Mumbai – 400021, |
|
Tel. No.: |
91-22-22824851,52,53,57,59 |
|
Fax No.: |
91-22-22023160 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
|
|
|
|
|
Factory 2 : |
Village Sejwaya, Ghatabhillod,
District Dhar, Madhya Pradesh - 454 773 |
|
|
|
|
Corporate Office : |
101, The Horizon, 1st Floor, |
|
Tel. No.: |
91-731- 4017979 |
|
Fax No.: |
91-731- 4017980 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Dinesh Shahra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Naveen Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dinesh Khandelwal |
|
Designation : |
Director |
|
Name : |
Mr. Kanta Prasad Mandhana |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Navamani Murugan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sajeve Deora |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahendra Prasad Sharma |
|
Designation : |
Director |
|
Date of Ceasing : |
09.09.2010 |
|
|
|
|
Name : |
Mr. Navin Khandelwal |
|
Designation : |
Director |
|
Date of Ceasing : |
09.08.2011 |
|
|
|
|
Name : |
Mr. Vijay Kumar Jain |
|
Designation : |
Director |
|
Date of Appointment : |
10.11.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Ashish Mehta |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Individuals / Hindu Undivided Family |
51918581 |
25.30 |
|
b) Bodies corporate |
54160274 |
26.39 |
|
2) Foreign |
|
|
|
|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
Foreign Institutional Investors |
26550195 |
12.94 |
|
|
|
|
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
62824775 |
30.61 |
|
|
|
|
|
b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100 Million |
6814688 |
3.32 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
1909481 |
0.93 |
|
|
|
|
|
c) Any other |
|
|
|
i) Clearing Member |
1061946 |
0.52 |
|
|
|
|
|
Total |
205239942 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of vegetable oils and fats |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Oils # |
MT/PA |
|
240000 |
165274 |
|
Vanaspati |
MT/PA |
|
120000 |
38136 |
|
Textured Soya Proteins |
MT/PA |
|
15000 |
-- |
|
Soap |
MT/PA |
|
6000 |
799 |
|
Power Generation (M Wh) |
MT/PA |
|
10.80 |
20848371 |
|
By Products |
MT/PA |
|
-- |
9128 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
· Axis Bank Limited · The Karur Vysya Bank Limited · ICICI Bank Limited ·
Corporation Bank |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
NOTE: 1. Term Loan from Karur
Vysya Bank Limited: The loan is secured by (a) first charge on the
movable and immovable fixed assets of the Company at Kakinada
Andhra Pradesh and (b) personal guarantee of a Director of the Company. Amount repayable
within 1 year Rs. Nil (Previous year Rs.40.000
Millions). 2. Corporate Loan from State Bank of The loan is secured by (a) Pledge of Equity
shares of the Company held by a promoter of the Company (b) personal
guarantee of a Director of the Company. Amount Repayable within 1 year Rs. Nil (Previous year Rs.55.300 Millions). 3. Term Loan from State Bank of The loan is secured (a) exclusive first
charge on the fixed assets of the Company created at various locations under
the Rural Warehouses and Agri Marketing
Infrastructure Facility project of the Company (b) personal guarantee of a
Director of the Company. Amount Repayable within 1 year Rs.76.068 Millions
(Previous Year Rs.76.068 Millions) 4. External Commercial Borrowing from Axis
Bank Limited. : The loan is secured by pari
passu first charge on the Fixed Assets of Refinery
at
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Ashok Khasgiwala
and Company Chartered Accountant |
|
|
|
|
Associates: |
Ruchi Soya Industries Limited |
|
|
|
|
Subsidiaries : |
· Peninsular Tankers Private Limited · Ruchi Green Energy Private Limited (Formerly RIFL Energy Private Limited) · Ruchi Resources Pte. Limited ·
Mangalore Liquid Impex
Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs.1/- each |
Rs.500.000 Millions |
|
20000000 |
Non Convertible
Cumulative Redeemable Preference Shares |
Rs.100/-
each |
Rs.2000.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
205239942 |
Equity Shares |
Rs.1/- each |
Rs.205.2340
Millions |
|
5460613 |
Non Convertible
Cumulative Redeemable Preference Shares |
Rs.100/-
each |
Rs.546.061
Millions |
|
|
|
|
|
NOTE:
I.
During the year the Company has allotted 15,80,000 equity shares of Re.1/-
each following exercise of conversion option by holders of Foreign Currency
Convertible Bonds (Previous Year 6,77,142 Shares of Re.1/- each).
II.
The Company had allotted 6% Redeemable Cumulative Preference shares
as under :
17,33,345 Shares were allotted on March 31,
2006.
37,27,268 Shares were allotted on October 9,
2006.
III.
The Preference Shares are redeemable as under :
a.
Rs. 33/- to be
redeemed after 12 years from date of allotment.
b.
Rs. 33/- to be
redeemed after 13 years from date of allotment.
c.
Rs. 34/- to be
redeemed after 14 years from date of allotment.
IV.
The Company at its sole discretion has an option to prematurely
redeem the preference shares in full or in part after completion of three years
from the date of allotment.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
751.301 |
749.721 |
749.044 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1572.063 |
1372.206 |
1010.269 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2323.364 |
2121.927 |
1759.313 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
700.022 |
1073.118 |
627.100 |
|
|
2] Unsecured Loans |
2054.853 |
2310.836 |
2747.602 |
|
|
TOTAL BORROWING |
2754.875 |
3383.954 |
3374.702 |
|
|
DEFERRED TAX LIABILITIES |
49.555 |
76.013 |
81.652 |
|
|
|
|
|
|
|
|
TOTAL |
5127.794 |
5581.894 |
5215.667 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2409.744 |
2625.138 |
2223.257 |
|
|
Capital work-in-progress |
31.617 |
44.653 |
266.266 |
|
|
|
|
|
|
|
|
INVESTMENT |
1071.624 |
1043.303 |
658.574 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2308.809
|
1506.449 |
1048.060
|
|
|
Sundry Debtors |
1125.706
|
659.104 |
995.102
|
|
|
Cash & Bank Balances |
1350.572
|
1631.444 |
1467.500
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
856.304
|
1043.153 |
1372.283
|
|
Total
Current Assets |
5641.391
|
4840.150 |
4882.945 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3680.348
|
2645.881 |
2571.169
|
|
|
Other Current Liabilities |
81.334
|
94.695 |
91.951
|
|
|
Provisions |
272.892
|
246.759 |
176.884
|
|
Total
Current Liabilities |
4034.574
|
2987.335 |
2840.004
|
|
|
Net Current Assets |
1606.817
|
1852.815 |
2042.941
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
7.992 |
15.985 |
24.629 |
|
|
|
|
|
|
|
|
TOTAL |
5127.794 |
5581.894 |
5215.667 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
17564.359 |
14667.520 |
11732.768 |
|
|
|
Other Income |
169.655 |
12.276 |
5.116 |
|
|
|
TOTAL (A) |
17734.014 |
14679.796 |
11737.884 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
6050.719 |
4089.592 |
2545.977 |
|
|
|
Materials |
10222.602 |
9163.441 |
8337.459 |
|
|
|
Expenses |
961.269 |
898.600 |
750.999 |
|
|
|
Increased / (Decreased) In Stock |
0.000 |
0.000 |
92.357 |
|
|
|
TOTAL (B) |
17234.590 |
14151.633 |
11726.792 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
499.424 |
528.163 |
11.092 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
(43.009) |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
499.424 |
528.163 |
54.101 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
261.817 |
239.796 |
207.577 |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIODS
ADJUSTMENT |
5.475 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
232.132 |
288.367 |
(153.476) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
28.750 |
(57.161) |
34.104 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
203.382 |
345.528 |
(119.372) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
229.423 |
41.288 |
213.241 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
100.000 |
0.000 |
|
|
|
Proposed Dividend – Preference |
32.764 |
32.764 |
32.763 |
|
|
|
Proposed Dividend – Equity |
16.419 |
16.293 |
12.179 |
|
|
|
Tax on Dividend |
7.978 |
8.337 |
7.638 |
|
|
BALANCE CARRIED
TO THE B/S |
275.644 |
229.423 |
41.288 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
318.833 |
28.314 |
NA |
|
|
TOTAL EARNINGS |
318.833 |
28.314 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5261.400 |
4553.633 |
NA |
|
|
|
Stores & Spares |
2.744 |
NA |
NA |
|
|
|
Capital Goods |
7.321 |
NA |
NA |
|
|
TOTAL IMPORTS |
5271.465 |
4553.633 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.80 |
1.51 |
-- |
|
QUARTERLY
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
9888.400 |
7099.800 |
8442.900 |
|
Total Expenditure |
9736.600 |
7283.400 |
8361.000 |
|
PBIDT (Excl
OI) |
151.800 |
(183.600) |
81.900 |
|
Other Income |
0.200 |
86.600 |
54.300 |
|
Operating
Profit |
152.000 |
(97.00) |
136.200 |
|
Interest |
9.800 |
0.000 |
0.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
142.200 |
(97.000) |
136.200 |
|
Depreciation |
59.000 |
60.800 |
75.300 |
|
Profit
Before Tax |
83.200 |
(157.800) |
60.900 |
|
Tax |
23.000 |
(37.000) |
5.400 |
|
Reported PAT |
60.200 |
(120.800) |
55.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
60.200 |
(120.800) |
55.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.15
|
2.35 |
(1.02) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.32
|
1.97 |
(1.30) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.88
|
3.86 |
(2.16) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.14 |
(0.09) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.92
|
3.00 |
3.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40
|
1.62 |
1.72 |
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1)
Year of Establishment |
Yes |
|
2)
Locality of the firm |
Yes |
|
3)
Constitutions of the firm |
Yes |
|
4)
Premises details |
No |
|
5)
Type of Business |
Yes |
|
6)
Line of Business |
Yes |
|
7)
Promoter's background |
-- |
|
8)
No. of employees |
No |
|
9)
Name of person contacted |
No |
|
10)
Designation of contact person |
No |
|
11)
Turnover of firm for last three years |
No |
|
12)
Profitability for last three years |
No |
|
13)
Reasons for variation <> 20% |
-- |
|
14)
Estimation for coming financial year |
No |
|
15)
Capital in the business |
Yes |
|
16)
Details of sister concerns |
Yes |
|
17)
Major suppliers |
No |
|
18)
Major customers |
No |
|
19)
Payments terms |
No |
|
20)
Export / Import details (if applicable) |
-- |
|
21)
Market information |
-- |
|
22)
Litigations that the firm / promoter involved in |
-- |
|
23)
Banking Details |
Yes |
|
24)
Banking facility details |
Yes |
|
25)
Conduct of the banking account |
-- |
|
26)
Buyer visit details |
-- |
|
27)
Financials, if provided |
Yes |
|
28)
Incorporation details, if applicable |
Yes |
|
29)
Last accounts filed at ROC |
Yes |
|
30)
Major Shareholders, if available |
No |
OPERATIONS :
During the year, the sales and services of the Company have increased
to Rs.1,7564.400 Millions from Rs.1,4667.500 Millions in the previous year,
recording a growth of over 19%. In view of intense competition and challenging
business environment, the Operating Profit has been recorded at Rs.499.400
Millions against Rs.528.200 Millions in previous year.
Due to decline in the extraordinary item income in the year under
review, the profit after tax is recorded at Rs.203.400 Millions in comparison
to Rs.345.500 Millions for the previous year.
FUTURE OUTLOOK :
The demand for edible oil in India has been stable and growing in
line with the higher disposable income. In view of the demand- supply gap, over
53% of the domestic edible oil consumption is met by imports and the share is
expected to increase in future. The company is hopeful of utilizing the port
based edible oil refining facility at Kakinada,
Andhra Pradesh State at a higher level in future.
The operations with respect to Agri-Warehouses
in Madhya Pradesh have stabilized. In the backdrop of the current economic
scenario regarding availability of food and food prices, Food Security Act,
Government initiatives for encouraging modern warehousing and anticipated
demand for development of back-end for retail, the Company would like to expand
the foot-print further and emerge as a leader in the area of storage of various
kinds of agri-commodities.
The new policies and developments in the market are expected to
generate not only higher revenues, but also fixed and long-term demands for
storage space and allied services, for which the Company has already
established a sound base.
The company has been allotted 14,550 sq. mtrs.
of land by Kandla Port Trust for construction of
Liquid Storage Tanks recently. Keeping in view the demand for Liquid storage at
port based areas, The company is looking forward to set up substantial
additional storage capacity for liquid cargo in the years to come.
SUBSIDIARY COMPANIES
:
The Company has complied with the conditions of General Circular No.
2 dated February 8, 2011 issued by the Ministry of Corporate Affairs,
Government of India and availed exemption from compliance of Section 212 of the
Companies Act, 1956.
Hence, the annual accounts of the subsidiary companies, directors
and auditors reports thereon, do not form part of the Annual Report of the
Company. The Company undertakes to provide annual accounts of the subsidiary
companies and the related detailed information toshareholders
of the holding and subsidiary companies seeking such information at any point
of time. The annual accounts of the subsidiary companies shall also be kept for
inspection by any shareholder at the registered office of the holding companyand of the subsidiary companies concerned.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT
The Company is primarily engaged in the businesses of storage
infrastructure for handling bulk storage of liquid and dry commodities such as
edible oils, petroleum products, wheat, soybean and its value added products,
cotton, sugar, etc., infrastructure development and refining of edible oils and
manufacture of vanaspati.
In view of the growing linkages of India with the global economy,
and as a consequence of liberalization measures and proactive policies of the
government, the volumes of external trade have been showing significant
uptrend. The demand for bulk liquid storage handling facilities, more
particularly in port based areas, has been rising. The main commodities
involved in the sea trade include petroleum products, edible oils and liquid
chemicals.
Keeping in view the focus of the Indian Government on the rural
economy and the farm sector, the demand for storage facilities in rural areas
is also increasing. Agricultural marketing has assumed increasing importance in
the wake of ushering in second green revolution, improving the living standards
of farm families, making India hunger-free and turning poverty into history in
the shortest possible time. The new policies for setting up storage
infrastructure under PPP mode with long term commitments for use of
infrastructure will facilitate development in this sector. In this backdrop the
Company would look at setting up silos and modern warehouses in the high demand
and growth areas.
The domestic edible oil consumption has been steadily growing and is
estimated to be over 16 million MT in the current year. While the growth in
population and disposable income (due to economic growth) resulting in higher
consumption, the supply growth has been primarily lower due to relative
stagnancy in the domestic oil seed output. In order to bridge the growing
demand- supply gap in edible oil, the volumes of import of edible oil have gone
up from 5.4 Million MT (2006-07) to 8.5 Million MT (2010-11) over the last five
years. This has improved the capacity utilisation of
the port based edible oil refining facilities in the country. The share of palm
segment in the import of oil has gone up from 3.6 Million MT (2006-07) to 6.5
Million MT(2010-11) over the last five years due to favorable price dynamics
and higher demand of the cost conscious consuming population in the country.
INDUSTRY OUTLOOK
The existing infrastructure for storage of agricultural commodities
has the propensity to scale up in the long run. The long term potential for
growth in infrastructure and agriculture sectors is, therefore, promising and
the demand for infrastructural requirements is likely to grow in future. The
Government is making all measures to maintain growth momentum and to facilitate
investments in infrastructure. Rural infrastructure, in particular, has been
identified as one of the priority sectors in view of the positive cascading
impact that the growth in this sector has on the other sectors of the economy.
Based on analysis of the existing Agriculture Marketing System,
Policies and Trade Dynamics, there is scope for improving the efficiency
through avoidable wastage, value addition, developing alternate markets,
segregation of produce according to the quality and increasing quality
consciousness amongst the farmers and other stake holders along the value
chain. Also, efficient storage and handling facilities will ensure minimal
wastage and spillage and improve productivity. This will enable the farming
community to improve the realization of the produce and reap the benefits on
account of growth and efficiencies.
The Indian economic growth is expected to be commodity intensive in
future. The food sector, one of the major growth sectors of the Indian economy,
is essentially commodity oriented. Edible oil is and will remain an important
constituent of dietary plan despite varied eating habits and varied methods of
cooking across the different states/regions in the country.
The demand for edible oil in India is relatively stable and growing
in line with the higher disposable income. Keeping in view the steady average
rate of GDP growth (and the consequent Income growth) and the population growth
expected in India, it is estimated that the domestic demand for edible oil, will
also consequently rise. According to the industry estimates, the consumption of
edible oil is expected to increase from the current level of 16 million MT to
over 21million MT by the year 2015. Due to lower domestic supply, the import of
edible oil will rise to meet the demand-supply gap.
BUSINESS STRATEGY
The Company believes that infrastructure development especially in
the fields of storage facilities for storage and transportation of edible oils,
petroleum, liquid bulk chemicals etc., present a huge growth opportunity for
the future. The Company has a presence in six ports, strategically located to
cater to all major states in India. Further the Company also has storage
terminals in five inland locations. The Company has been operating in this field
for over and has decade a well established reputation in the industry. Their
storage facilities are well connected to the railways to enable long distance
supply and the port based facilities are integrated with ports to facilitate
transportation by pipelines. They provide comprehensive and competitive supply
chain solutions to their customers. They are one of the few companies in the
bulk liquid infrastructure industry having operations across India.
The food grain output has been increasing and reached a record
output of 232 million tonnes in 2010-11. In view of
the good monsoon this year, the trend is likely to continue. This increased
production coupled with the country’s strategic needs to have higher buffer
stocks than before will generate a higher demand for additional warehousing
capacities. A large number of warehouses are over-aged and are not in line with
the current norms. Their replacement and renovation is the need of the hour.
The increase in food prices over the last three years has been phenomenal. The
losses on storage at the existing levels translate into much higher financial
losses than the earlier years. Maturing of the Negotiable Warehouse Receipt
system calls for well designed and properly constructed warehouses, which can
be accredited. There is also going to be a significant increase in demand as
major suppliers try to improve their supply chain efficiencies to operate in
the more competitive environment. All these factors along with the society’s
need to take care of feeding more and more people with higher aspirations in
terms of not only quantity, but also quality of food provides a bright,
emerging scenario for scientific storage in
future. Their strategy is to cater to the business needs and
capitalize the opportunities from the emerging business scenario, thereby
contributing to society and the country.
The state of the art production facility of the Company for refining
of edible oils and manufacture of vanaspati is
located at Kakinada in Andhra Pradesh. The Company
has a significant market share in the states of Andhra Pradesh, Orissa and Chhatisgarh for Edible
Oils and Vanaspati. The Company will continue to
strengthen itself in areas of sourcing raw materials from points of origin,
reducing inefficiencies in supply chain and logistics, and actively engage in
the areas of productivity improvement to sustain the growing business needs.
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: s 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.53.64 |
|
|
1 |
Rs.86.42 |
|
Euro |
1 |
Rs.69.28 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.