MIRA
INFORM REPORT
|
Report Date : |
02.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
RAJSHREE SUGARS AND
CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
The Uffizi, 338
Avanashi Road Peelamedu, Coimbatore - 641004, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
13.12.1985 |
|
|
|
|
Com. Reg. No.: |
18-001706 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 237.917
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L01542TZ1985PLC001706 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBR03062D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Seller of White Crystal Sugar
in India, and also engaged in the Co-generation of Electricity from Bagasse Fuel
and also produces Alcohol Products. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4780000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an establishing company having moderate track record. The
company is continuously incurring losses from its operation. However, trade
relations are reported as fair. Business is active. Payments are reported to
be slow. The company can be considered for business dealings with some caution.
|
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 |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term rating : (BBB-) |
|
Rating Explanation |
Moderate degree of safety it carry moderate credit
risk. |
|
Date |
February 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ 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 / Corporate Office: |
The Uffizi, |
|
Tel. No.: |
91-422-2580981/ 2580982/ 2580983/ 4226222 |
|
Fax No.: |
91-422-2577929 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Unit – I |
Varadaraj Nagar Post Near Vaigai Dam, Theni -
625562, Tamilnadu, India |
|
Tel. No.: |
91-4546-242309/ 237250/
237251/ 242302 |
|
Fax No.: |
91-4546-242302 |
|
E-Mail : |
|
|
|
|
|
Unit - II |
Mundiampakkam Post,
Villupuram - 605601, Tamilnadu, India |
|
Tel. No.: |
91-4146-232401/ 232402 |
|
Fax No.: |
91-4146-232403 |
|
E-Mail : |
|
|
|
|
|
Unit - III |
Semmedu Village, Gingee Taluk, Villupuram - 604153, Tamilnadu, India |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Ms. Rajshree Pathy |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
56 Years |
|
Qualification : |
B. Com |
|
Experience : |
36 Years |
|
Date of Appointment : |
16.03.1989 |
|
|
|
|
Name : |
Mr. R.
Varadarajan |
|
Designation : |
Director and
Chief Operating Officer |
|
Qualification : |
MBA |
|
Date of Appointment : |
16.07.1987 |
|
|
|
|
Name : |
Mr. Raja M. J. Abdeen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Surulinarayanasami |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G R
Karthikeyan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. K Mohan
Naidu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. S. V.
Subba Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. C. H.
Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
B. Soundararajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Aditya
Krishna Pathy |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A. Sathyamurthy |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. R. S. Gowdhaman |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8724974 |
36.67 |
|
|
20760 |
0.09 |
|
|
8745734 |
36.76 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
8745734 |
36.76 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
623927 |
2.62 |
|
|
1530 |
0.01 |
|
|
625457 |
2.63 |
|
|
|
|
|
|
2166683 |
9.11 |
|
|
|
|
|
|
6134913 |
25.79 |
|
|
2216819 |
9.32 |
|
|
3902094 |
16.40 |
|
|
258038 |
1.08 |
|
|
42987 |
0.18 |
|
|
205303 |
0.86 |
|
|
1224559 |
5.15 |
|
|
100 |
0.00 |
|
|
2171107 |
9.13 |
|
|
14420509 |
60.61 |
|
Total Public shareholding (B) |
15045966 |
63.24 |
|
Total (A)+(B) |
23791700 |
100.00 |
|
© Shares held by Custodians and against which Depository Receipts have
been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
23791700 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of White Crystal Sugar
in India, and also engaged in the Co-generation of Electricity from Bagasse
Fuel and also produces Alcohol Products. |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Sugar |
MT |
NA |
11000 TCD |
168743* |
|
Molasses |
MT |
NA |
NA |
82388 |
|
Bagasse |
MT |
NA |
NA |
475227 |
|
Industrial Alcohol |
Liter |
45 KLPD |
45 KLPD |
6087978 |
|
Electricity |
KWH |
NA |
54.5 MW |
226329330 |
|
Organic Manure |
MT |
NA |
30 T/Day |
3684 |
* Including sugar produced from raw sugar
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||
|
Bankers : |
Ř
State Bank of India Ř
State Bank of Mysore Ř
State Bank of Hyderabad Ř
UCO Bank Ř
Bank of India Ř Indian Bank |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Srikishen and Company Chartered Accountants |
|
Address : |
Kanapathy
Towers, 3rd Floor, 1391/A-1, Sathy Road, Ganapathy, Coimbatore – 641006,
Tamilnadu, India |
|
|
|
|
Subsidiaries : |
Ř Trident Sugars Limited Ř Rajshree Power
Private Limited |
|
|
|
|
Other Related
Parties : |
Ř RSCL Properties
Private Limited Ř Prana Ayurveda
Coimbatore Private Limited Ř Argead
Enterprises Private Limited Ř CAI Industries
Private Limited Ř Rajshree
Automotive Private Limited Ř Aloha Tours
& Travels (India) Private Limited Ř Rajshree
Spinning Mills Limited Ř Raj Fabrics and
Accessories (Cbe) Limited Ř Greenplus
Manures Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23,791,700 |
Equity Shares |
Rs. 10/- each |
Rs. 237.917
Millions |
|
|
|
|
|
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 |
237.917 |
237.917 |
226.917 |
|
|
2] Share Application Money |
0.000 |
0.000 |
17.050 |
|
|
3] Reserves & Surplus |
956.093 |
973.807 |
1285.783 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1194.010 |
1211.724 |
1529.750 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4801.467 |
4145.633 |
4319.151 |
|
|
2] Unsecured Loans |
255.458 |
8.320 |
18.456 |
|
|
TOTAL BORROWING |
5056.925 |
4153.953 |
4337.607 |
|
|
DEFERRED TAX LIABILITIES |
450.450 |
454.526 |
513.120 |
|
|
|
|
|
|
|
|
TOTAL |
6701.385 |
5820.203 |
6380.477 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4326.932 |
4178.906 |
3835.361 |
|
|
Capital work-in-progress |
1323.737 |
216.812 |
28.438 |
|
|
|
|
|
|
|
|
INVESTMENT |
476.447 |
476.447 |
476.337 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1450.846
|
1312.736 |
1718.486 |
|
|
Sundry Debtors |
662.846
|
315.443 |
244.156 |
|
|
Cash & Bank Balances |
94.330
|
180.889 |
315.355 |
|
|
Other Current Assets |
39.382
|
80.266 |
0.000 |
|
|
Loans & Advances |
656.399
|
834.240 |
902.970 |
|
Total
Current Assets |
2903.803
|
2723.574 |
3180.967 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
702.772
|
587.909 |
779.677 |
|
|
Other Current Liabilities |
1448.288
|
995.564 |
129.332 |
|
|
Provisions |
178.474
|
192.063 |
231.617 |
|
Total
Current Liabilities |
2329.534
|
1775.536 |
1140.626 |
|
|
Net Current Assets |
574.269
|
948.038 |
2040.341 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6701.385 |
5820.203 |
6380.477 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
7086.117 |
6153.880 |
5239.651 |
|
|
|
Other Income |
86.700 |
58.831 |
103.354 |
|
|
|
TOTAL (A) |
7172.817 |
6212.711 |
5343.005 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5244.947 |
4442.687 |
|
|
|
|
Changes in
inventories of finished goods, work-in-progress and Stock-in-Trade |
(129.170) |
198.496 |
|
|
|
|
Employee benefits expense |
265.218 |
242.191 |
|
|
|
|
Other expenses |
789.552 |
738.613 |
|
|
|
|
Exceptional items |
147.765 |
0.000 |
|
|
|
|
Extraordinary Items |
2.500 |
250.000 |
|
|
|
|
TOTAL (B) |
6320.812 |
5871.987 |
3985.111 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
852.005 |
340.724 |
1357.894 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
616.536 |
536.026 |
474.797 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
235.469 |
(195.302) |
883.097 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
257.259 |
230.309 |
226.901 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ [LOSS]
BEFORE TAX (E-F) (G) |
(21.790) |
(425.611) |
656.196 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(4.075) |
(56.436) |
224.502 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ [LOSS]
AFTER TAX (G-H) (I) |
(17.715) |
(369.175) |
431.694 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
116.608 |
485.783 |
183.733 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
50.000 |
|
|
|
Proposed Dividend |
0.000 |
0.000 |
68.075 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
11.569 |
|
|
BALANCE CARRIED
TO THE B/S |
98.893 |
116.608 |
485.783 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
910.624 |
879.365 |
0.000 |
|
|
|
Sale of carbon credits |
42.824 |
62.887 |
0.000 |
|
|
TOTAL EARNINGS |
953.448 |
942.252 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
685.304 |
1265.394 |
|
|
|
Capital Goods |
2.510 |
14.881 |
0.000 |
|
|
|
Consumable spares |
0.202 |
0.000 |
14.932 |
|
|
TOTAL IMPORTS |
2.712 |
700.185 |
1280.326 |
|
|
|
|
|
|
|
|
|
|
Earnings/ [Loss]
Per Share (Rs.) |
|
|
|
|
|
|
Basic
|
(0.74) |
(16.04) |
19.02 |
|
|
|
Diluted
|
-- |
-- |
18.14 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
2681.700 |
2495.900 |
1513.300 |
|
Total Expenditure |
2315.900 |
2023.400 |
1441.600 |
|
PBIDT (Excl
OI) |
365.800 |
472.500 |
71.700 |
|
Other Income |
0.000 |
23.100 |
18.000 |
|
Operating
Profit |
365.800 |
495.600 |
89.700 |
|
Interest |
196.000 |
212.600 |
195.500 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
169.800 |
283.000 |
(105.800) |
|
Depreciation |
81.100 |
87.000 |
87.300 |
|
Profit
Before Tax |
88.700 |
196.000 |
(193.100) |
|
Tax |
28.800 |
63.500 |
(62.600) |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
59.900 |
132.500 |
(130.500) |
|
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 |
59.900 |
132.500 |
(130.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(0.25)
|
(5.94)
|
8.08 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.31)
|
(6.92)
|
12.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.30)
|
(6.17)
|
9.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.02)
|
(0.35)
|
0.43 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
4.24
|
3.43 |
2.84 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.25
|
1.53 |
2.79 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
Yes |
|
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 |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
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) |
No |
|
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 |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
Deposits |
5.458 |
8.320 |
|
From Bank |
250.000 |
0.000 |
|
Total |
255.458 |
8.320 |
FINANCIAL PERFORMANCE
The
Company earned an income of Rs. 7172.817
Millions in the year 2011-12 as against Rs. 6212.711
Millions during the previous year. The Company has earned an operational profit
of Rs. 128.475 Millions as
against the operational loss of Rs. 175.862
Millions during the previous year. During the year the company incurred an
expenditure of Rs. 136.681 Millions
towards settlement of sales tax issues under Samadhan scheme announced by the
Tamil Nadu Sales Tax Department and Rs. 11.347
Millions paid as compensation to the employees who opted for the voluntary
separation scheme which resulted in a net loss of Rs. 17.715 Millions. During the previous year
the company incurred a onetime expenditure of Rs. 0.250
Million towards settlement of Derivative disputes with Axis Bank Limited which
resulted in a net loss of Rs. 369.175
Millions.
OPERATIONAL PERFORMANCE
SUGAR DIVISION
The
sugarcane crushing in 2011-12 has increased substantially (41%) over the previous
year on account of adequate sugarcane planting in the command area of the
factories and as a consequence to their sustained efforts in the Research &
Development and cane extension activities. The average recovery of sugar was at
9.40% as against 8.98% in the previous year owing to quality of sugarcane crop
and other favourable factors.
The
Company produced 2.28 lakh tons of sugar as against 1.69 lakh tons in the
previous year, registering a 35% increase. The Company sold 2.23 lakh tons
(including exports) as against 1.82 lakh tons in the previous year.
COGENERATION DIVISION
The
operations of cogeneration division across all the Units were satisfactory. The
total power generated by the cogeneration division recorded a growth of 22%,
largely owing to higher crushing and bagasse availability, coupled with better
capacity utilisation. During the year , the total power generated by all their
Units was 2,751 lakh units as against 2,258 lakh units. The company exported
1,877 lakh units as against 1,597 lakh units in the previous year. The Company
has received 66,515 units of carbon credits during the year ended 31st March
2012 which has been accounts during the year.
DISTILLERY DIVISION
The
distillery performance was satisfactory during the year. The Company produced
92.76 lakh litres of Alcohol in 2011-12 as against 60.88 lakh litres of Alcohol
in the previous year and sold 95.41 lakh litres of alcohol against 58.68 lakh
litres of alcohol in the previous year.
OPERATIONS OF SUBSIDIARY COMPANIES
TRIDENT SUGARS LIMITED
Their
wholly owned subsidiary Company, Trident Sugars Limited, has crushed 4.07 lakh
tons of sugarcane during the financial year 2011-12 as against 3.97 lakh tons
in the previous year. The company produced 42,897 tons of sugar and sold 47,168
tons of sugar during the financial year as against 41,385 tons of production
and 44,879 tons of sales in the previous year.
RAJSHREE POWER PRIVATE LIMITED
There were no operations of the said subsidiary
company during the year.
FUTURE OUTLOOK
As
per the forecast of Department of Agriculture as well as Indian Sugar Mills
Association, there is an increase in planting of sugarcane and hence sugarcane
crushing for the next season is expected to be higher than the current season.
The Union Government's recent decision to allow sugar export without
quantitative restrictions would facilitate clearing up of inventory as well as
stabilizing the domestic sugar price at reasonable levels.
India
has tremendous renewable energy potential and the demand for biomass based
green power sector is likely to grow exponentially. Thus, with the increase in
cane crushing & hence bagasse availability, their cogeneration can optimize
power generation and contribute to their profitability.
Recently,
Government of Tamilnadu has announced its participation in the ethanol blending
programme thereby allowing resumption of ethanol production in sugar mills. The
company with its new addition to production capacity sees a good potential in
the ethanol production. By maintaining a proper product mix of alcohol for sale
to potable, industrial & blending sector, the company would strive to
derive the optimum realization.
Overall,
with the outlook remaining positive, the company is committed to bettering the
performance year after year and confident of improving the profitability.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY SCENARIO AND DEVELOPMENT
World
Sugar Production for 2011-12 has reached record levels thanks to improving crop
outlook for Brazil and a continued supply of exportable surplus sugar from
Thailand and India.
The
quarterly market outlook of February, 2012 published by International Sugar
Organisation indicates that after two years of a large statistical deficit and
one season of balanced sugar production and consumption, the world sugar
economy has a global surplus which may rise beyond 6 million tons. Tentative
projections suggest that the world sugar balance will continue to remain in
surplus in 2012-13 also.
Raw
sugar prices in New York in the last week of April 2012 plunged to 20.5 cents,
hitting an 11-month low. White sugar is currently trading around $ 570 and raw
sugar at 20.9 cents. Raw sugar prices are forecast at around 22 cents during
the second quarter during the Brazilian centre south harvest and at around 24
cents at the end of 2012. White sugar is forecast at around $600 during the
second quarter and around the same at the end of 2012. Weather patterns could
alter this price forecast. Another major factor determining sugar prices during
2012 will be the price of ethanol and as a consequence the decisions by
Brazilian mills to divert cane to ethanol production.
In
India, as per Indian Sugar Mills Association (ISMA) report, the sugar
production upto the end of April, 2012 for the current sugar season is 251 lakh
tons. This is almost 25 lakh tons more than the production upto the end of
April, 2011 last year.
Most
of the increase has been contributed by Uttar Pradesh, which has seen an
increase of almost 11 lakh tons, Maharashtra where the increase is about 5 lakh
tons, Karnataka where the increase is almost 3 lakh tons and Tamilnadu where
the sugar production is more by almost 4 lakh tons as compared to last year.
ISMA is absolutely certain that its earlier sugar production estimate of 260
lakh tons will be achieved. The balance lakh tons beyond the 251 lakh tons
already produced would come largely from Tamilnadu which is expected to still
produce about 6.5 lakh tons between May and September in the current season,
Maharashtra (2 lakh tons) and Karnataka (1 lakh ton).
As
per press release of the Department of Agriculture, sugarcane for the next
sugar season has been planted in 44.12 lakh hectare as compared to 43.23 lakh
hectare last year on the corresponding period, which is 2% higher. Therefore, ISMA
is quite certain that production in ensuing season 2012-13 starting from 1st
October will be higher than the domestic consumption and India will continue to
export sugar third year in a row.
An
intense industry lobby has evoked a positive response from the Government with
permission for export of 2 million tons since the beginning of this year.
Though this export was linked to production numbers of each sugar factory,
regular exporting factories were able to capitalize the tradability of sugar
export entitlement. The Government had also released an additional 1 million
ton of export under this scheme but then on a national review, had thought fit
to declare sugar export under Open General Licence (OGL) without quantitative
restrictions, considering the comfortable position of domestic production and
consumption.
The
export of sugar helped in stabilizing the domestic price realization which
hovered around Rs. 27,000/- per ton level
throughout major part of the year 2011-12. Though international sugar prices
have been depressed during the last quarter, the weakness of rupee has
compensated the lower margins.
During
the year, Government of Tamilnadu has hiked the SAP from Rs. 1,900/- per ton to Rs. 2,000/- per ton (linked to 9.5% recovery)
plus a transport cost of Rs. 100/-
per ton for the 2011-12 sugar season.
On
the ethanol front, the outlook for global fuel ethanol production is forecast
to rebound in 2012 after some sluggishness. Brazil and the USA will continue to
be the main drivers. The ethanol programme in India has been sustained with the
participation of the major sugar producing States. Tamilnadu had been kept out
of the Ethanol supply programme due to focus of the State Government on
ensuring availability of alcohol to the potable sector. Constant interaction by
State Industry Associations with the Government has yielded positive results
with the Government now being convinced that there is adequate molasses
production and distillation capacity available in the State to ensure alcohol
supply to both potable and ethanol sector. This ensures an alternative user for
alcohol and will add to the profitability of the industry.
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER 2012
(Rs. In Millions)
|
Particular |
3 Months Ended |
9 Months Ended |
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
Income from Operations |
|
|
|
|
Net
Sales/Income from Operations |
1508.600 |
2491.900 |
6658.400 |
|
Other
Operating Income |
4.700 |
4.000 |
32.500 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of
raw material |
659.500 |
1816.000 |
4441.600 |
|
(c) Changes in inventories of finished goods, work in progress and
stock in trade |
468.600 |
(144.800) |
225.100 |
|
(d) Employee
benefit expenses |
79.000 |
81.200 |
228.300 |
|
(e)
Depreciation and amortization expenses |
87.300 |
87.000 |
255.400 |
|
(f) Other
Expenses |
234.500 |
271.000 |
885.900 |
|
Total Expenses |
1528.900 |
2110.400 |
6036.300 |
|
Profit from Operations before Other Income,
Finance costs and Exceptional item |
(15.600) |
385.500 |
654.600 |
|
Other Income |
18.000 |
23.100 |
41.100 |
|
Profit/ Loss from Ordinary Activities
before Finance costs and Exceptional item |
2.400 |
408.600 |
695.700 |
|
Finance costs |
195.500 |
212.600 |
604.100 |
|
Profit/ Loss from Ordinary Activities after
Finance costs but Exceptional item |
(193.100) |
196.000 |
91.600 |
|
Exceptional item |
- |
- |
- |
|
Profit/ Loss from Ordinary Activities
before tax |
(193.100) |
196.000 |
91.600 |
|
Provisions for
Income Tax |
(38.600) |
39.100 |
18.300 |
|
Deferred Tax
Liability/ Assets |
(24.000) |
24.400 |
11.400 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
(130.500) |
132.500 |
61.900 |
|
Extraordinary
Items |
- |
- |
- |
|
Net Profit for the period |
(130.500) |
132.500 |
61.900 |
|
Paid- up Equity Share Capital (Face value
of the share – Rs. 10) |
237.900 |
237.900 |
237.900 |
|
Reserves excluding revaluation reserves as
per balance sheet of Previous Accounting Year |
|
|
|
|
Earnings per share (before extraordinary
items) (of Rs. 10/- each) (not annualized) -
Basic |
(5.49) |
5.57 |
2.60 |
|
Earnings per share (after extraordinary
items) (of Rs. 10/- each) (not annualized) -
Basic |
(5.49) |
5.57 |
2.60 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public shareholding |
|
|
|
|
Number of Shares |
15,045,966 |
15,045,966 |
15,045,966 |
|
Percentage of
Shareholding |
63.24 |
63.24 |
63.24 |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of Shares |
- |
- |
- |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
- |
- |
- |
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
- |
- |
- |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of Shares |
8,745,734 |
8,745,734 |
8,745,734 |
|
- Percentage of Shares (as a % of the total shareholding of
promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of Shares (as a % of the total share capital of the company) |
36.76 |
36.76 |
36.76 |
|
|
Particulars |
3 Months Ended
31.12.2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
Nil |
|
|
Disposed of during the quarter |
Nil |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
3 Months Ended |
9 Months Ended |
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
1. Segment Revenue |
|
|
|
|
a. Sugars |
1335.300 |
2164.700 |
5986.800 |
|
b. Cogeneration |
120.800 |
345.500 |
834.400 |
|
c. Distillery
|
155.900 |
200.500 |
414.100 |
|
Total |
1612.000 |
2710.700 |
7235.300 |
|
Less: Inter – segment revenue |
98.700 |
214.800 |
544.400 |
|
Total income from operations (net) |
1513.300 |
2495.900 |
6690.900 |
|
|
|
|
|
|
2. Segment Results |
|
|
|
|
Profit/ (loss) before tax and interest |
|
|
|
|
a. Sugars |
(25.200) |
196.900 |
228.400 |
|
b. Cogeneration |
14.800 |
210.400 |
454.300 |
|
c. Distillery
|
56.700 |
50.500 |
134.000 |
|
Total |
46.300 |
457.800 |
816.700 |
|
Less: Finance Costs |
195.500 |
212.600 |
604.100 |
|
Other un-allocable expenditure net off
un-allocable other operating income |
43.900 |
49.200 |
121.000 |
|
Total Profit Before Tax |
(193.100) |
196.000 |
91.600 |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
a. Sugars |
2337.800 |
2571.400 |
2337.800 |
|
b. Cogeneration |
1753.000 |
1804.200 |
1753.000 |
|
c. Distillery
|
1412.500 |
1344.800 |
1412.500 |
|
d. Unallocated |
54.100 |
54.100 |
54.100 |
|
Total |
5557.400 |
5774.500 |
5557.400 |
Notes:
1.
The above results have been reviewed by the Audit Committee
and approved by the Board at its meeting held on 6th February 2013. The Statutory
Auditors of the Company have also carried out the limited review of the above
results.
2. Previous year figures have been regrouped wherever necessary.
CONTINGENT LIABILITIES NOT PROVIDED FOR
Claims against the company not acknowledged as
debt:
i) Disputed
interest on sales tax for the years 1995-96 to 1997-98 in respect of which stay
from High Court at Chennai is obtained Rs. 4.250 Millions (Previous year: 4.250
Millions)
ii) The
Commissioner of Central Excise (Appeals) has upheld the order of the Central
Excise department imposing a penalty of 2.192 Millions in the matter of payment
of service tax for agency fees and other charges paid towards ECB availed. The
company has filed an appeal before CEGAT and the appeal is pending before the
said Appellate Tribunal and hence no provision has been made.
iii) Electricity
generation tax demand for 24.809 Millions has been raised in respect of captive
consumption of electricity generated from cogeneration division. The same is
disputed and contested in appeal. Hence not provided for.
iv) In respect of
additional demand of Sales tax received for the years 2000-2001 to 2004-2005
aggregating to 34.501 lakhs, no provision has been made in the accounts as the
demand has been disputed before the first Appellate Authority. The amount of
12.665 Millions paid towards statutory amount deposited before filing of appeal
has been included under advance sales tax.
FIXED ASSETS Ř
Land
Ř
Buildings
Ř
Plant and Machinery
Ř
Office Equipment
Ř
Furniture
Ř
Vehicles
Ř
Electrical Equipment
Ř
Tools and Equipment
Ř
Lab Equipment
Ř
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 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 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. 54.39 |
|
|
1 |
Rs. 82.32 |
|
Euro |
1 |
Rs. 69.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
32 |
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.