MIRA
INFORM REPORT
|
Report Date : |
11.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
DALMIA BHARAT SUGAR AND INDUSTRIES LIMITED (w.e.f.
07.09.2010) |
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Formerly Known
As : |
DALMIA CEMENT (BHARAT) LIMITED |
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Registered
Office : |
Dalmiapuram, District Tiruchirapalli – 621 651, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
01.11.1951 |
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Com. Reg. No.: |
18-000640 |
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Capital
Investment / Paid-up Capital : |
Rs.161.900
millions |
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CIN No.: [Company Identification
No.] |
L26942TN1951PLC000640 |
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|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Sugar and also engaged in generation
and sale of Power. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 17600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and a reputed company having a fine track
record. Financial position of the company appears to be good. The profitability of the company appears to be low. Trade relations are reported as trustworthy. Business is active.
Payment terms are reported as regular and as per commitment. The company can be considered 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 – 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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long Term Rating: A+ |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
13.01.2013 |
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 Office : |
Dalmiapuram, District Tiruchirapalli – 621 651, |
|
Tel. No.: |
91-4329-235123/ 235555 |
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Mobile No.: |
91-9958989352 (Mr. Anil) |
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Fax No.: |
91-4329-235111 |
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E-Mail : |
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Website : |
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Head Office/ Corporate Office : |
11th and 12th Floors, |
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Tel. No.: |
91-11-23465100/ 23310121/ 23/ 24/ 25 |
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Fax No.: |
91-11-23313303 |
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E-Mail : |
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PLANT LOCATIONS : |
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Plant 1 : |
Magnesite
Refractory Products: Dalmia Magnesite
Corporation, Vellakkalpatti,
P.O. Karuppur, |
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Plant 2 : |
Sugar Plants: Dalmia Chini
Mills (Unit: Ramgarh) Village Ramgarh,
Tehsil Misrikh, District Sitapur – 261 403, |
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Plant 3 : |
Dalmia Chini
Mills (Unit :
Jawaharpur) Village Jawaharpur
– 261403, Tehsil Sitapur Sadar, District Sitapur, |
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Plant 4 : |
Dalmia Chini
Mills (Unit : Nigohi) Village Kuiyan,
Post Areli – 242407, Tehsil Tilhar, District Shahjahanpur, Uttar Pradesh) |
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Plant 5 : |
Wind Farm Unit: Dalmia Wind
Farm, Muppandal (Tamilnadu), Aralvaimozhy, District Kanyakumari – 629 301, |
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Plant 6 : |
Electronics
Division: Plot No. 53,
54A, |
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Plant 7 : |
Located at: v
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DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Jai Hari Dalmia |
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Designation : |
Vice-Chairman |
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Name : |
Mr. Yadu Hari Dalmia |
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Designation : |
Vice-Chairman |
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Name : |
Mr. Gautam Dalmia |
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Designation : |
Managing Director |
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Name : |
Mr. Puneet Yadu Dalmia |
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Designation : |
Managing Director |
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Name : |
Mr. J.S. Baijal |
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Designation : |
Independent Non-Executive Director |
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Name : |
Mr. M. Raghupathy |
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Designation : |
Independent Non-Executive Director |
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Name : |
Mr. T. Venkatesan |
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Designation : |
Director |
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Name : |
Mr. B.B. Mehta |
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Designation : |
Director |
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Name : |
Kannan Panchapakesan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Anil |
|
Designation : |
Chief Finance Officer |
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 |
|
|
|
|
|
|
|
|
13090155 |
16.17 |
|
|
39870410 |
49.26 |
|
|
86665 |
0.11 |
|
|
86665 |
0.11 |
|
|
53047230 |
65.54 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
53047230 |
65.54 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
6500 |
0.01 |
|
|
1666306 |
2.06 |
|
|
128155 |
0.16 |
|
|
934096 |
1.15 |
|
|
2735057 |
3.38 |
|
|
|
|
|
|
5957787 |
7.36 |
|
|
|
|
|
|
10644263 |
13.15 |
|
|
3763907 |
4.65 |
|
|
4791059 |
5.92 |
|
|
145549 |
0.18 |
|
|
188303 |
0.23 |
|
|
4323124 |
5.34 |
|
|
109698 |
0.14 |
|
|
19655 |
0.02 |
|
|
4730 |
0.01 |
|
|
25157016 |
31.08 |
|
Total Public shareholding (B) |
27892073 |
34.46 |
|
Total (A)+(B) |
80939303 |
100.00 |
|
(C) 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) |
80939303 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Sugar and also engaged in generation
and sale of Power. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity* |
Actual
Production |
|
Cement |
(‘000 Tonnes) |
-- |
-- |
-- |
|
Refractory products |
(‘000 Tonnes) |
N.A. |
79.50 |
21.12 |
|
Sugar |
(‘000 Tonnes) |
N.A. |
22.50 |
204.56 |
|
Multilayer Ceramic Chip Capacitors |
(Lakh Nos.) |
N.A. |
1200.00 |
55.56 |
|
Chip Resistors |
(Lakh Nos.) |
N.A. |
1000.00 |
0.30 |
|
Refractories etc. |
(‘000 Tonnes) |
N.A. |
-- |
-- |
|
Power |
(Million Units) |
N.A. |
79.00 |
308.86 |
|
Industrial Alcohol |
(‘000 KL) |
-- |
80.00 |
-- |
*As certified by the management
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v Punjab National Bank v Yes Bank v Axis Bank Limited v IDBI Bank v Canara Bank v
Corporation Bank
v
Bank of v
DBS Bank
Limited v
Central Bank of v Vijaya Bank v
State Bank of v
Allahabad Bank |
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Facilities : |
Notes: Long Term Borrowings 1) Debentures
referred to in A above to the extent of : 10.26%, Series
XII Rs.1000.000 millions (Rs.1000.000 millions) are secured by mortgage and
charge on first pari-passu basis on all the immovable and movable assets excluding
current assets, both present and future, of the Company’s sugar unit at
Jawaharpur and Nigohi and redeemable in three yearly equal installments
commencing from September 30, 2014. 2) Term Loans
from Banks referred to in B (i) above to the extent of: Rs.2000.000 millions
(Rs.2000.000 millions) is secured by subservient charge on entire fixed
assets excluding vehicles of sugar units at Jawaharpur and Nigohi and
subservient charge on plant and machinery at Ramgarh Sugar unit. The same is
repayable in five yearly unequal installments in the range of Rs.300.000
millions to Rs.500.000 millions each commencing from December 2013, carrying
interest @ Base rate + 1% (present 11.75%). 3) Nil
(Rs.141.200 millions) is secured by residual charge on the movable and
immovable fixed assets of the sugar units. 4) Term Loan
from Others referred to in B (ii) above to the extent of: Rs.839.800 millions
(Rs.889.900 millions) which consist of various loans and are secured by
second exclusive charge on movable and immovable properties of the sugar unit
at Ramgarh, Jawaharpur and Nigohi. The same is repayable in unequal
installments in the range of Rs.13.300 millions to Rs.200.800 millions per
year till FY 2017-18 and carry interest in the range of 4% to 7.50%. Short Term Borrowings (i) Working
capital Loan from Banks are secured by hypothecation of inventories and other
assets in favour of the participating banks ranking pari passu on
inter-se-basis, repayable during next one year and carrying interest in the
range of 11% to 11.75%. (ii) Short term
Loans from Banks are secured by hypothecation of receivables. It is repayable
during next one year and carry interest in the range of 10.75% to 11%. |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
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Statutory Auditors : |
|
|
Name : |
S.S. Kothari
Mehta and Company Chartered
Accountants |
|
Address : |
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Internal
Auditors : |
|
|
Name : |
Axis Risk
Consulting Services Private Limited A Genpact Company
|
|
Address : |
Plot No. 22-B, 1st
Floor, Udyog Vihar Phase IV, Sector 18, Gurgaon – 122 015, |
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|
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Subsidiaries of the Company : |
v
Himshikhar
Investment Limited v
Dalmia
Solar Power Limited v
Dalmia
Sugar Ventures Limited |
|
|
|
|
Enterprises controlled by the Key
Management Personnel of the Company : |
v
Rama
Investment Company Private Limited v
Puneet
Trading and Investment Company Private Limited v
Kavita
Trading and Investment Company Private Limited v
Sita
Investment Company Limited v
Mayuka
Investment Limited v
Ankita
Pratisthan Limited v
Himgiri
Commercial Limited v
Valley
Agro Industries Limited v
Shri
Nataraj Ceramic and Chemical Industries Limited v
Shri
Chamundeswari Minerals Limited v
Shree
Nirman Limited v
Keshav
Power Private Limited v
Avanee
and Ashni Securities Private Limited v
ZipAhead.Com
Limited v
Alirox
Abrasives Limited v
Sukeshi
Trust v
Vaidehi
Trust v
Sumana
Trust v
Shrutipriya
Dalmia Trust v
Priyang
Trust v
Avanee
Trust v
New
Habitat Housing Finance and Development Limited v
Dalmia
Bharat Enterprises Limited v
Dalmia
Power Limited v
Kanika
Investment Limited v
Arjuna
Brokers and Minerals Limited v
Dalmia
Cement Ventures Limited v
D.I.
Properties Limited v
Dalmia
Minerals and Properties Limited v
Geetee
Estates Limited v
Hemshila
Properties Limited v
Ishita
Properties Limited v
Shri
Radha v
Shri
Rangam Properties Limited v
Sri
Dhandauthapani Mines and Minerals Limited v
Sri
Madhusudana Mines and Properties Limited v
Sri
Shanmugha Mines and Minerals Limited v
Sri
Subramanya Mines and Minerals Limited v
Sri
Swaminatha Mines and Minerals Limited v
Sri
Trivikrama Mines and Properties Limited v
Golden
Hills Resort Private Limited v
Rajputana
Properties Private Limited v
Cosmos
Cements Limited v
Sutnga
Mines Private Limited v
DCB
Power Ventures Limited v
OCL
India Limited v
Dalmia
Cement (Bharat) Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
114726820 |
Ordinary Shares |
Rs.2/- each |
Rs.229.500 millions |
|
85273180 |
Unclassified Shares |
Rs.2/- each |
Rs.170.500 millions |
|
|
Total |
|
Rs.400.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80939303 |
Ordinary Shares |
Rs.2/- each |
Rs.161.900
millions |
|
|
|
|
|
Reconciliation of Ordinary Shares outstanding at the beginning and at
the end of the reporting period
|
Particulars |
2011-12 |
|
|
No. of Shares |
Amount (Rs. in
millions) |
|
|
At the beginning of the period |
80939303 |
161.900 |
|
Issued during the period |
-- |
-- |
|
At the end of the period |
80939303 |
161.900 |
Terms/ Rights attached to Ordinary Shares
The Company has
only one class of Ordinary Shares having a face value of Rs.2 per share. Each Ordinary
Shareholder is entitled to one vote per share. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. During the year ended March 31, 2012 the amount
of dividend per share recognised as distribution to ordinary shareholders was
Rs. Nil (Rs.0.25).
In the event of
winding-up of the company, the ordinary shareholders shall be entitled to be
repaid remaining assets of the company, in the ratio of the amount of capital
paid up on such ordinary shares.
Details of Shareholders holding more than 5% shares in the Company
|
Ordinary Shares of Rs.2/- each fully paid up |
2011-12 |
|
|
No. of Shares |
% holding |
|
|
Mayuka Investment Limited |
17736537 |
21.91 |
|
Shree Nirman Limited |
-- |
-- |
|
Sita Investment Company Limited |
5876800 |
7.26 |
|
Ankita Pratisthan Limted |
5829070 |
7.20 |
|
Yadu Hari Dalmia |
4541880 |
5.61 |
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 |
161.900 |
161.900 |
161.880 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4238.100 |
4232.800 |
13614.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4400.000 |
4394.700 |
13776.380 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6403.000 |
6053.700 |
27402.010 |
|
|
2] Unsecured Loans |
500.000 |
250.000 |
1102.140 |
|
|
TOTAL BORROWING |
6903.000 |
6303.700 |
28504.150 |
|
|
DEFERRED TAX LIABILITIES |
787.400 |
767.800 |
2891.140 |
|
|
|
|
|
|
|
|
TOTAL |
12090.400 |
11466.200 |
45171.670 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5740.000 |
5959.500 |
25841.690 |
|
|
Capital work-in-progress |
10.200 |
65.800 |
2475.790 |
|
|
|
|
|
|
|
|
INVESTMENT |
411.400 |
386.500 |
8009.790 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5837.400
|
4932.300 |
7067.000 |
|
|
Sundry Debtors |
762.200
|
196.600 |
2138.200 |
|
|
Cash & Bank Balances |
765.800
|
547.200 |
2108.490 |
|
|
Other Current Assets |
5.800
|
1.500 |
0.000 |
|
|
Loans & Advances |
1214.900
|
1163.100 |
2392.090 |
|
Total
Current Assets |
8586.100
|
6840.700 |
13705.780 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1945.300
|
982.500 |
3908.960 |
|
|
Other Current Liabilities |
672.900
|
754.700 |
806.070 |
|
|
Provisions |
39.100
|
49.100 |
146.350 |
|
Total
Current Liabilities |
2657.300
|
1786.300 |
4861.380 |
|
|
Net Current Assets |
5928.800
|
5054.400 |
8844.400 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12090.400 |
11466.200 |
45171.670 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations (Net) |
7128.300 |
6690.000 |
21542.570 |
|
|
|
Other Income |
293.200 |
226.200 |
508.110 |
|
|
|
TOTAL (A) |
7421.500 |
6916.200 |
22050.680 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Raw Materials |
5980.100 |
4982.700 |
7561.470 |
|
|
|
(Increase)/
Decrease in Inventories of Finished Goods and Work in Progress |
(897.300) |
(377.200) |
(1672.620) |
|
|
|
Employee Benefit Expenses |
410.300 |
390.400 |
1142.200 |
|
|
|
Other Expenses |
1001.600 |
1041.800 |
9903.100 |
|
|
|
TOTAL (B) |
6494.700 |
6037.700 |
16934.150 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
926.800 |
878.500 |
5116.530 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
502.500 |
480.800 |
1755.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
424.300 |
397.700 |
3360.630 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
418.200 |
394.100 |
1319.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
6.100 |
3.600 |
2040.830 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(2.900) |
(27.300) |
670.960 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
9.000 |
30.900 |
1369.870 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
4021.300 |
8067.200 |
7090.620 |
|
|
|
|
|
|
|
|
|
Less |
Transfer pursuant to Scheme of Arrangement |
0.000 |
4021.300 |
0.000 |
|
|
Add |
Transfer from Debenture Redemption Reserve |
0.000 |
0.000 |
125.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
0.000 |
0.800 |
200.000 |
|
|
|
Debenture Redemption Reserve (net) |
31.300 |
31.300 |
129.170 |
|
|
|
Interim/Proposed Dividend |
0.000 |
20.200 |
161.880 |
|
|
|
Dividend Distribution tax thereon |
0.000 |
3.300 |
27.200 |
|
|
BALANCE CARRIED
TO THE B/S |
3999.000 |
4021.300 |
8067.240 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods at FOB value |
34.800 |
18.800 |
124.650 |
|
|
TOTAL EARNINGS |
34.800 |
18.800 |
124.650 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.200 |
88.200 |
1548.190 |
|
|
|
Components & Spares Parts, Coal etc. |
3.700 |
79.300 |
1576.050 |
|
|
|
Capital Goods |
0.000 |
0.000 |
360.000 |
|
|
TOTAL IMPORTS |
3.900 |
167.500 |
3484.240 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.11 |
0.38 |
16.92 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 (1st
Quarter) |
30.09.2012 (2nd
Quarter) |
|
Net Sales |
|
2580.800 |
2153.700 |
|
Total Expenditure |
|
2202.700 |
1962.100 |
|
PBIDT (Excl OI) |
|
378.100 |
191.600 |
|
Other Income |
|
13.700 |
34.300 |
|
Operating Profit |
|
391.800 |
225.900 |
|
Interest |
|
174.700 |
159.900 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
217.100 |
66.000 |
|
Depreciation |
|
104.600 |
106.600 |
|
Profit Before Tax |
|
112.500 |
(40.600) |
|
Tax |
|
7.400 |
(4.000) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
105.100 |
(36.600) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
105.100 |
(36.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.12
|
0.45 |
6.21 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.09
|
0.05 |
9.47 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.04
|
0.03 |
5.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.00 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.57
|
1.43 |
2.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.23
|
3.83 |
2.82 |
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 |
No |
|
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 |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
Short Term Borrowings |
|
|
|
Short Term Loan from Related Parties |
500.000 |
250.000 |
|
Total
|
500.000 |
250.000 |
v
Short term Loans from Related Parties are repayable
during next one year and carry interest @ 10%.
MANAGEMENT DISCUSSION AND ANALYSIS
SUGAR INDUSTRY OVERVIEW
Production
The International Sugar Organisation
expects global production for Sugar Year (SY) 2011-12 at 172.3 MnT (Million Tonnes)
raw value, with a surplus of 4.21 MnT as per its April 2012 update.
37.61 MnT in 2012-13, up from the 36.04 MnT
in 2011-12.
Demand–Lower Prices to Boost Consumption
The global demand for sugar may recover to
a normal growth rate of 2.4% after three stagnant years. Prices have moved to
affordable levels which are expected to spur demand, especially from
Global consumption is anticipated at 168.16
MnT, with the surplus of 4.21 MnT.
Prices–Sugar prices witness significant volatility
amidst tight demand supply situation together with low stockpiles
Two years of high global sugar prices are
finally making their presence felt. The market will see its first surplus in
four years, following the rather minuscule surplus in SY11.
Following expectations of record harvest in
2012 is expected to be a surplus year, with
global supply outpacing demand by about 4.21 MnT on account of large production
harvests in India, the EU, Thailand and the Russian Federation. However, the
global stocks/ consumption ratio is expected to remain significantly below its
ten-year average level, indicating low global stocks of sugar (which were
tapped in the last three crop years after poor weather hindered increased
production amid steadily growing world demand). With a tight supply demand
situation and low global stocks, international prices are expected to remain
volatile.
INDIAN OVERVIEW
Production
Uttar Pradesh saw a growth of 18% to 6.9
MnT. The southern states of Karnataka and Tamilnadu registered higher
production of 3.72 and 1.45 MnT respectively, as on 15th April 2012.
Domestic Consumption
SY12 commenced with an opening balance of
approximately 6.8 MnT.
Exports
The Government permitted exports of 3 MnT
of sugar during SY12 in three equal tranches under an Open General Licence
(OGL). Of this, 2 MnT was notified during FY12. Industry expects the Government
to carry sugar inventory of three months, at the end of the present season.
During the first week of May 2012, the Government relaxed quantity restrictions
on exports of sugar under OGL, which is likely to ease stocks built up in the country.
Prices
Domestic sugar prices started rising from
the previous cyclical lows in mid-September 2010 onwards and, after remaining
at par or below the production cost for a long time, inched closer to
Rs.30000/MT level after many months in November 2011. During September and
October 2011, an increase in the demand for sugar on account of the festive
season resulted in increase in prices. Further, delayed crushing in key sugar
producing States (on account of uncertainty over cane pricing) and announcement
of 1 MnT of sugar exports under the OGL pushed up sugar prices in November.
Hence, domestic sugar prices have started
softening since December 2011 mainly because of fresh production and softening international
prices. This offset the positive impact of the government allowing additional 1
MnT of exports.
High Procurement Costs – U.P. Mills
Impacted
Most sugar mills in
U.P. faces highest cane procurement price.
quintal. Karnataka fixed it at Rs.180 per
quintal.
As there was no commensurate increase in
the prices of the sugar, this high sugarcane procuring price-final sugar price
imbalance led to a serious contraction in the margin.
Supreme Court: Clearance of Farmer Arrears
in Uttar Pradesh
The situation in U.P. was further
aggravated by the Honourable Supreme Court ruling for SY07 and SY08, and
direction sugar mills in U.P. to make payment towards cane arrears (estimated
at over Rs.10000.000 millions) to the sugarcane farmers for 2006-07 and 2007-08
seasons within a period of three months.
With surplus domestic production and
limited export quantities expected to keep sugar prices low, coupled with a
significant hike in the SY12 cane price, the directive to clear past cane
arrears further tightened the liquidity position of U.P.-based sugar mills.
Moreover, this impacted the profitability and cash flows for these mills to a
great extent. The Company, through a prudent strategy and conservative
approach, had, however, already provided for such a contingency in its books of
account.
Outlook
The Company expects a better sugarcane crop
next year in the light of higher cane prices being paid to the farmers this
year. Sugar output in
In its recent report, the International
Sugar Organisation (ISO) expects total sugar production at 24.5 MnT in SY13,
whereas The National Federation of Co-operative Sugar Factories estimates 25
MnT.
Going forward, the long-term prices and
profitability of Indian sugar companies are expected to remain volatile and
dependent on domestic and international demand-supply trends. These, in turn,
would depend on agroclimatic conditions in major producing countries and crude
oil price trends, which determine the diversion of cane crop to ethanol.
Consequently, price trends in international markets would be key determinants
of future profitability.
Any action by the
De-control of the sugar industry, including
abolition of levy sugar, will be critical.
Business Overview
The Company is one of the largest sugar
players in Uttar Pradesh with three integrated sugar plants at Ramgarh
(District Sitapur), Jawaharpur (District Sitapur) and Nigohi (District
Shahjahanpur). Its total cane crushing capacity stands at 22,500 TCD.
The Company has invested in modern,
state-of-the-art facilities and continues to invest in better technology to improve
its performance, achieve higher operational efficiencies and maintain a strong
technological edge in the industry. It has robust quality systems and has
recently initiated 5S and TPM initiatives to create world-class systems and
processes.
All the three units have received
certification on Environmental Management System (EMS) and Occupational Health
and Safety Assessment Series (OHSAS).
The Company has an integrated business
model, with co-gen plants at all its sugar mills and a distillery unit at
Jawaharpur, to de-risk itself from the cyclical nature of the sugar industry.
Its co-gen plants have a capacity of 79 MW; two thirds of this generation is
exportable. All co-gen plants are certified as CDM (Clean Development
Mechanism) projects. This enables the Company to earn tradable CER credits.
The Company’s Jawaharpur plant has an 80
KLPD (kilo litres per day) distillery capacity. The Company has wind farm
capacity of 16.5 MW, located at Muppandal and Karangulam near Kanyakumari in
Tamilnadu.
Through its 100% subsidiary, the Company is
also incubating a 10 MW solar power generation unit at
The year in review was one of challenges.
Subdued sugar realisations, higher cane prices announced by the state
government and overall volatility, impacted margins for sugar mills across the
industry. Inspite of the challenges on the regulatory front, the Company
focused on better capacity utilisation of the plants and recorded highest ever
cane crush of 25.6 lakh MT during the current sugar season.
The benefits of higher cane crushing will
be reflected in next financial year on account of extended co-gen operation
during off season due to surplus bagasse availability.
Sugar - Business Overview
Operational Highlights
Highest ever cane crushing of 23.6 lakh MT
in FY12, increase of 15% on y-o-y basis. Highest ever power production of 3,203
lakh units, increase of 14% on y-o-y basis. Highest ever distillery production
of 10,486 kilo litres.
The Company achieved highest cane crush of
25.63 lakh MT in the season 2011-12 as against 20.81 lakh MT in the previous
sugar season, recording a jump of 23.16%.
The Company continues to focus on enhancing
operations across several parameters. It achieved the best ever steam
consumption on cane at 41.75% after it successfully commissioned its project of
steam saving at Ramgarh sugar mill.
Sales and Marketing
The emphasis on world-class manufacturing
systems and high quality have enabled the Company’s sugar find wide acceptance
in markets across U.P. and eastern India, besides securing customers in reputed
brands. Its growing sales to prestigious institutional customers, who follow
stringent international standard quality norms, endorses the quality of the
Company’s sugar as well as world-class quality manufacturing and hygiene
standards.
The Company continued to explore the
opportunity and study the potential to brand its sugar. A market assessment of
feasibility is in progress and the capex to achieve this will be worked out.
In view of the surplus situation, the
Government notified export of 2 MnT during 2011-12. The Company has also
benefited to the tune of Rs.95.000 millions during the financial year because
of the export notification.
Cane Development
The Company continues to focus on the
promotion of sustainable farming techniques for cane developers. The endeavour
is to enable farmers improve the quality of sugarcane produced with an end benefit
measured in improved yield, propagation of higher recovery, sugarcane varieties
and more modern techniques.
During the year in review, while the
quantity of cane crushed was on track, there was a setback in respect of
recovery. The Company has embarked upon a comprehensive plan to address this
issue on priority. It is committed to minimising the acceptance of rejected
variety and is confident of achieving better recovery next year.
Information Technology for Cane Developers
For improving service delivery to farmers,
the Company has, over the years, leveraged modern information technology and
telecom facilities to improvise farmer communication.
The Company joined hands with the U.P.
Government in a novel e-governance project initiated for sugarcane farmers in
the state. Sugar Information Service (SIS), a model website, has been created
and adopted by all 116 operational sugar mills in the state. This system helps
the farmer get real time updates across the lifecycle of the crop to the point
of payments for his produce.
This helps the mills manage their crushing
schedule better and also helps farmers sell cane without waiting for days at
the purchase centre.
This initiative has emerged as the biggest
rural IT platform in the country and is a sustainable project as it involves
the betterment of both farmers and millers.
To improve communication with cane
developers, the Company has invested in several modern IT and telecommunication
facilities to further integrate the business - from sowing to crushing.
Energy Conservation
The Company’s constant endeavour to
conserve energy and infuse even higher energy efficiency in its operations has
resulted in the Nigohi sugar plant receiving the prestigious Certificate of
Merit in the sugar sector for the National Energy Conservation Award – 2011
from Ministry of Power, Government of India.
The Company invested in a special energy
and steam saving project at Ramgarh sugar mill to lower process steam
consumption.
As a result the steam consumption at
Ramgarh, which was around 56% on cane till SY10, reduced to 43.69 in SY12.
Co-generation - Business Overview
Operational Highlights
The gross power generation in FY12 was
highest ever at 320 million units as against 281 million units in the previous
year, an increase of 14%.
The Company has made vast improvements in
its auxiliary consumption, which was the best in U.P. during the year at 8.1%,
and its Plant Load Factor (PLF) was 99.39%, on operational days basis.
The CDM registration has provided
consistent benefit for the last 3 years and the Company received UN approval
for the issuance of 31,493 CERs for Ramgarh unit for the years 2008-09 and
2009-10. Pre-CDM VERs from Jawaharpur and Nigohi are expected to fetch around
Rs.15.000 millions.
The Company has also been successful in
getting all the three co-gen plants registered under REC mechanism, benefit for
which will be realised in the coming financial year.
Distillery - Business Overview
Operational Highlights
Million
Units
|
|
FY11 |
FY12 |
|
Gross Power Generation |
281 |
320 |
|
Net Power Export Grid |
198 |
224 |
Distillery
Extra Neutral Alcohol (ENA) during FY12 was
in high demand from alcohol manufacturers in the domestic and foreign markets. Realisation
of ENA from the alcohol industry is higher than ethanol.
Demonstrating its commitment to the
environment, the Company successfully commissioned a bio-methanation plant at
distillery. This international-grade plant uses modern technology based CSTR
(Continuous Stirred Type Reactor) from
Solar Power – Business Overview
The Company, through its 100% subsidiary
Dalmia Solar Power Limited, is setting up a solar project of 10 MW in
Rajasthan. The project is at the incubation stage; land possession and all
other statutory approvals have been received. To take the project forward, the
Company is in discussion with different vendors for commencing the EPC work.
Outlook
The Company maintains a very cautious
outlook going forward, as the overall unfavourable regulatory environment is
against the industry’s interest. Only positive changes in the policy framework
will provide the much needed impetus to shape the future outlook of the sugar
industry.
Moving forward, business growth and
increasing the quantity of cane crushed continues to be a key focus area for
the Company. Excellence in execution will remain focused commitment. The
Company will closely focus on every opportunity to improve its capacity
utilization and pursue every possibility to reduce its cost per MT of sugar
produced. The various food safety and quality certification processes under
implementation will enable the business to emerge as a preferred supplier to
global institutional buyers.
At the same time, the Company will continue
to look at developing new products and efficiency projects for its existing
operations so as to mitigate risks due to cyclical nature of sugar industry.
Maximising returns from value added revenue
streams like co-gen and distillery is a priority and the Company will continue
to evaluate opportunities to optimise asset utilisation to the maximum in the
off season.
Co-gen
The Company may explore opportunities to
procure biomass for generation of electricity, thereby expanding the scale and
increasing the running time for plants.
Distillery
The ethanol blending programme mandated by the
Government is expected to drive strong earnings in the distillery business. The
Government is reviewing a policy to align ethanol and petrol prices (quarterly
re-setting). Such a policy will augur well for the industry’s earning
potential. The Company’s distillery operations are expected to provide
cushioning through healthy streamlining of the revenues of cyclical sugar
industry. Going forward, the Company may explore opportunities to expand its
distillery capacities.
Contingent Liabilities (not provided for) in respect of:
|
Particulars |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
a) Claims against the Company not acknowledged as debts |
5.500 |
8.200 |
|
b) Demand raised by Income tax authorities under dispute |
584.000 |
207.200 |
|
c) Demand raised by custom, excise, entry tax, service tax and sales
tax authorities under dispute |
443.500 |
227.500 |
|
d) Other money for which the Company is contingently liable |
1.500 |
1.500 |
Based on favourable
decisions in similar cases, legal opinion taken by the Company, discussions
with the solicitors etc, the Company believes that there is a fair chance of
favourable decisions in respect of the items listed above and hence no
provision is considered necessary against the same.
FIXED ASSETS:
Tangible Assets
v
Land (Freehold)
v
Land (Leasehold)
v
Buildings
v
Plant and Equipment
v
Furniture and Fixtures
v
Vehicles
v
Office Equipment
v
Building
v
Plant and Equipment
Intangible Assets
v
Computer 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.53.57 |
|
|
1 |
Rs.84.25 |
|
Euro |
1 |
Rs.71.79 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
TOTAL |
|
53 |
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.