MIRA
INFORM REPORT
|
Report Date : |
16.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
EMMSONS INTERNATIONAL LIMITED |
|
|
|
|
Registered
Office : |
2637, 1st Floor, Naya Bazar, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on)
: |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
15.04.1993 |
|
|
|
|
Com. Reg. No.: |
55-053060 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.59.980 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1993PLC053060 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELE02927B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACE0442K |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the trading of commodities like
rice, sugar, wheat, steel, cotton, soya meal, metals, etc., and has business
interests in travel and tourism. |
|
|
|
|
No. of Employees
: |
78 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (37) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3800000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of “Emmsons Group”. It is an established company
having a moderate track record. Even though the company has achieved better growth in its sales
turnover during 2012, the profitability appears to be low. There also appear huge external borrowings recorded by the company
which can be a threat to the company’s liquidity. However, trade relations are reported as fair. Business is active.
Payment terms are reported as slow but correct. 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
NON FUND BASED LIMIT : ICRA A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
8th November, 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
FUND BASED LIMIT : ICRA BB- |
|
Rating Explanation |
Moderate degree of risk |
|
Date |
8th November, 2012 |
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 : |
2637, 1st Floor, Naya Bazar, Delhi – 110 006, India |
|
Tel. No.: |
91-11-22929341/ 22922810 |
|
Fax No.: |
91-11-22924234 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Administrative Office : |
101, South Delhi House 12, Zamarudpur Community Center Kailash Colony,
New Delhi – 110048, India |
|
Tel. No.: |
91-11-29247721 to 28 |
|
Fax No.: |
91-11-29247730/ 41632081 |
|
E-Mail : |
|
|
|
|
|
Foreign Offices : |
Ř
Emmsons
SA., Place du March 3, CP 156, 1860 Aigle, Switzerland Ř
Emmsons Gulf
DMCC, 3406, 1- Lake Plaza Plot No. T2, Jumeirah Lakes Towers,
Dubai, U.A.E. Ř
Emmsons Grains Limited, 6, Karaiskaki
Street, 3032, Limassoi, Cyprus |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Anil Monga |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Rajesh Monga |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Shivaz Monga |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. Vijay Kumar Kakkar |
|
Designation : |
Professional and
Independent Director |
|
|
|
|
Name : |
Mr. Viresh Shankar Mathur |
|
Designation : |
Professional and
Independent Director |
|
|
|
|
Name : |
Mr. Satish Chandra Gupta |
|
Designation : |
Professional and
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Hamant Paul |
|
Designation : |
General Manager [Finance] and Chief Finance Officer |
|
|
|
|
Name : |
Mr. Suvindra Kumar |
|
Designation : |
Company Secretary and Compliance Officer
(w.e.f. 06th July, 2009) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 19.10.2012
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2868244 |
47.82 |
|
|
303498 |
5.06 |
|
|
3171742 |
52.88 |
|
|
|
|
|
|
10230 |
0.17 |
|
|
10230 |
0.17 |
|
Total shareholding of Promoter and Promoter Group (A) |
3181972 |
53.05 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
321848 |
5.37 |
|
|
|
|
|
|
652332 |
10.88 |
|
|
1589444 |
26.50 |
|
|
252424 |
4.21 |
|
|
12197 |
0.20 |
|
|
240227 |
4.01 |
|
|
2816048 |
46.95 |
|
Total Public shareholding (B) |
2816048 |
46.95 |
|
Total (A)+(B) |
5998020 |
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) |
5998020 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the trading of commodities like
rice, sugar, wheat, steel, cotton, soya meal, metals, etc., and has business
interests in travel and tourism. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
78 (Approximately) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
Ř
Oriental
Bank of Commerce, Overseas Branch, M-33, Greater Kailash-II,
New Delhi-110048, India Ř
Allahabad
Bank, International Branch, 3rd Floor, 17, Parliament Street,
New Delhi – 110001, India Ř
Indian
Overseas Bank, A-19/22, Moolchand Shopping Complex,
Defence Colony, New Delhi-110024, India Ř
Bank of
Baroda, 1st Floor, 16, Parliament Street, New Delhi-110001, India |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
Notes: TERM LOAN (a) Packing Credit with Oriental Bank of Commerce-Repayable on demand-Secured against hypothecation of Stocks and advances, equitable mortgage of Properties and Personal guarantees of Directors (b) Packing Credit with Indian Overseas Bank- Repayable on demand-Secured against hypothecation of Stocks and advances, equitable mortgage of Properties and Personal guarantees of Directors (c) Packing Credit with Bank of Baroda-Repayable on demand-Secured against hypothecation of Stocks, equitable mortgage of Properties and Personal guarantees of Directors (d) Packing Credit with Allahabad Bank-Repayable on demand-Secured against hypothecation of current assets, equitable mortgage of Properties and Personal guarantees of Directors (e) Buyer's Credit through Oriental Bank of Commerce-Repayable on demand-Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors (f) Buyer's Credit through Indian Overseas Bank-Repayable on demand-Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors (g) Buyer's Credit through Bank of Baroda-Repayable on demand-Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors (h) Buyer's Credit through Allahabad Bank-Repayable on demand-Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors LOANS REPAYABLE ON
DEMAND (a) HDFC Bank Car Loan A/c No 17259339-Repayble in 36 Monthly EMI-Secured against hypothecation of Car (b) Indian Overseas Bank Corporate loan A/c No 271000002-Repayble in 22 Quarterly Installments and Interest Payable Monthly-Secured against the personal guarantees of Directors (c) Kotak Mahindra Prime Car Limited Loan A/c No. CF6509815-Repayble in 36 Monthly EMI-Secured against hypothecation of Car (d) Kotak Mahindra Prime Limited Car Loan A/c No CF6677652- Repayable in 36 Monthly EMI-Secured against hypothecation of Car (e) Kotak Mahindra Prime Limited Car Loan A/c No CF7056360-Repayble in 36 Monthly EMI-Secured against hypothecation of Car (f) Kotak Mahindra Prime Limited Car Loan A/c No CF7106212-Repayble in 36 Monthly EMI-Secured against hypothecation of Car (g) Kotak Mahindra Prime Limited Car Loan A/c No CF7569170-Repayble in 36 Monthly EMI-Secured against hypothecation of Car (h) Kotak Mahindra Prime Limited Car Loan A/c No CF5609590-Repayble in 36 Monthly EMI-Secured against hypothecation of Car (i) Kotak Mahindra Prime Limited Car loan A/c No CF5609981-Repayble in 36 Monthly EMI-Secured against hypothecation of Car (j) Volkswagen Finance Private Limited Car loan A/c No
20111000714-Repayble in 36 Monthly EMI-Secured against hypothecation of Car |
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial
Institution : |
Kotak Mahindra Prime Limited |
|
|
|
|
Auditors : |
|
|
Name : |
Suresh and Associates Chartered Accountants |
|
Address : |
3A Bigjo's Tower, Netaji Subhash Place, Pitampura, Delhi-110034, India |
|
|
|
|
Subsidiaries : |
Ř
Emmsons S.A. Ř
Emmsons Gulf DMCC Ř
Emmsons Grains Limited |
|
|
|
|
Subsidiary of
Emmsons Gulf DMCC : |
Ř
Emmsons Asia Pte. Limited Ř
Pt Star Emmsons –Indonesia |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5998020 |
Equity Share |
Rs.10/- each |
Rs.59.980
Millions |
|
|
|
|
|
Notes:
Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
|
|
As at 31st March, 2012 |
|
|
Particulars |
No of Shares |
Rs. In Millions |
|
At the beginning of the period |
5148020 |
51.480 |
|
Issued during the period |
850000 |
0.850 |
|
Outstanding at the end of the period |
5998020 |
59.980 |
Detail of shares holding
more than 5% shares in the company
|
|
As at 31st March, 2012 |
|
|
Particulars |
No of Shares |
% holding in the
class |
|
Equity shares of Rs. 10 each fully paid up |
|
|
|
Anil Monga |
1445858 |
24.11 |
|
Rajesh Monga |
511640 |
8.53 |
|
Rajesh Monga |
- |
- |
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 |
59.980 |
51.480 |
51.480 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Share Warrants |
0.000 |
2.250 |
0.000 |
|
|
4] Reserves & Surplus |
898.828 |
728.686 |
622.904 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
958.808 |
782.416 |
674.384 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5248.611 |
1811.091 |
1617.434 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
43.413 |
|
|
TOTAL BORROWING |
5248.611 |
1811.091 |
1660.847 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
2.110 |
2.483 |
|
|
|
|
|
|
|
|
TOTAL |
6207.419 |
2595.617 |
2337.714 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
133.920 |
105.360 |
81.461 |
|
|
Capital work-in-progress |
0.742 |
6.724 |
4.875 |
|
|
|
|
|
|
|
|
INVESTMENT |
81.161 |
62.305 |
64.697 |
|
|
DEFERREX TAX ASSETS |
1.164 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3001.773
|
994.583
|
1891.445 |
|
|
Sundry Debtors |
2425.362
|
2818.128
|
506.735 |
|
|
Cash & Bank Balances |
557.690
|
488.121
|
123.215 |
|
|
Other Non-Current Assets |
20.588
|
0.152
|
|
|
|
Other Current Assets |
346.477
|
393.602
|
0.000 |
|
|
Loans & Advances |
1166.453
|
961.579
|
1149.465 |
|
Total
Current Assets |
7518.343
|
5656.165
|
3670.860 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1255.288
|
3041.662
|
1365.373 |
|
|
Other Current Liabilities |
193.464
|
133.249
|
45.105 |
|
|
Provisions |
79.159
|
60.026
|
73.701 |
|
Total
Current Liabilities |
1527.911
|
3234.937
|
1484.179 |
|
|
Net Current Assets |
5990.432
|
2421.228
|
2186.681 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6207.419 |
2595.617 |
2337.714 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
18966.738 |
13392.124 |
6386.827 |
|
|
|
Other Income |
86.007 |
43.046 |
545.459 |
|
|
|
TOTAL (A) |
19052.745 |
13435.170 |
6932.286 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of goods traded |
18421.695 |
11361.091 |
6065.084 |
|
|
|
Changes in inventories of goods traded |
(2007.190) |
896.862 |
343.649 |
|
|
|
Employee benefits expense |
83.261 |
43.787 |
80.920 |
|
|
|
Other expenses |
1872.480 |
691.346 |
6.781 |
|
|
|
Exceptional items |
(20.573) |
0.000 |
21.129 |
|
|
|
TOTAL (B) |
18349.673 |
12993.086 |
6517.563 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
703.072 |
442.084 |
414.723 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
524.136 |
289.270 |
208.411 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
178.936 |
152.814 |
206.312 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7.297 |
5.894 |
4.997 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
171.639 |
146.920 |
201.315 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
49.916 |
49.599 |
71.592 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
121.723 |
97.321 |
129.723 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
359.801 |
286.069 |
181.935 |
|
|
|
|
|
|
|
|
|
(Less) / Add |
Short/ (Excess) Provision of Income Tax for earlier Years |
(4.403) |
(4.323) |
0.457 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
7.300 |
14.000 |
|
|
|
Dividend |
NA |
10.296 |
10.296 |
|
|
|
Tax on Dividend |
NA |
1.670 |
1.750 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
359.801 |
286.069 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of Export Earnings |
12006.665 |
3955.300 |
3054.400 |
|
|
|
Other Income-Commission |
108.160 |
70.683 |
0.000 |
|
|
|
Interest Income |
51.285 |
20.230 |
0.000 |
|
|
TOTAL EARNING |
12166.110 |
4046.213 |
3054.400 |
|
|
|
|
|
|
|
|
|
|
CIF
VALUE OF IMPORT |
3177.403 |
930.000 |
2665.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
23.31 |
18.90 |
25.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2012 |
30.09.2012 |
|
|
|
|
|
1st Quarter |
2nd Quarter |
|
Net Sales |
|
|
|
5576.070 |
5241.020 |
|
Total Expenditure |
|
|
|
5377.430 |
5058.320 |
|
PBIDT (Excl OI) |
|
|
|
198.640 |
182.700 |
|
Other Income |
|
|
|
22.340 |
34.030 |
|
Operating Profit |
|
|
|
220.980 |
216.730 |
|
Interest |
|
|
|
153.100 |
159.760 |
|
Exceptional Items |
|
|
|
0.000 |
0.000 |
|
PBDT |
|
|
|
67.880 |
56.970 |
|
Depreciation |
|
|
|
2.030 |
1.780 |
|
Profit Before Tax |
|
|
|
65.840 |
55.190 |
|
Tax |
|
|
|
22.000 |
4.680 |
|
Provisions and contingencies |
|
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
|
43.840 |
50.510 |
|
Extraordinary Items |
|
|
|
0.000 |
(39.960) |
|
Prior Period Expenses |
|
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
|
43.840 |
10.550 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.64 |
0.72 |
1.87 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.90 |
1.10 |
3.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.24 |
2.55 |
5.37 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.19 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.07 |
6.45 |
4.66 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.92 |
1.80 |
2.47 |
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 |
Yes |
|
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 |
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 |
OVERVIEW
The Company firmly believes that good corporate governance practices ensure efficient conduct of the affairs of the Company while upholding the core values of transparency, integrity, honesty and accountability and help the Company in its goal to maximize value for all its stakeholders. The Company adopts and adheres to the best recognized corporate governance practices and continuously strives to better them.
The Company is in compliance with the requirements of the guidelines on corporate governance stipulated in Clause 49 of the Listing Agreement with the Stock Exchanges.
The corporate governance is about maximizing shareholder value legally, ethically and on a sustainable basis, while ensuring fairness to every stakeholder - their customers, employees, investors, the governments of the countries in which they operate, and the community. Thus, corporate governance is a reflection of their culture, policies, their relationship with stakeholders and their commitment to values. They believe that sound corporate governance is critical to enhance and retain investor trust. Accordingly, they always seek to ensure that they attain their performance rules with integrity. Their Board exercises its fiduciary responsibilities in the widest sense of the term. They endeavor to enhance long-term shareholder value and respect minority rights.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Last year they had committed that, they will not rest on their laurels and will be looking forward to grow further with improved performance, meeting their words with action, they done the same. Since the last year was remarkable as they had crossed first time Rupees thousand Crore milestone in terms of turnover in the history, repeating the same glory in this year also they are about to touch the milestone of Rupees two thousand Crore in terms of turnover. The growth and the pace of growing says the story of success and effort which were put in to achieve the same.
Certainly the policies of the Government for the industries affect considerably in terms of business strategy, plans, internal policies and business as a whole and the most of the business plans, strategy are decided and based on the said policies of the government. The Economic Survey 2011-12, as tabled in the parliament says that the "Minimum agricultural growth is required for inclusive growth of the nation."
It further says that the share of agriculture in real GDP have fallen, given its lower growth rate relative to industry and services. However, the main concern is that the growth in the agricultural sector has quite often fallen short of the planned targets. The survey says that during the period 1960-61 to 2010-11, food grains production grew at a compounded annual growth rate (CAGR) of around 2 per cent.
In fact, the Ninth and Tenth Five Year Plans witnessed agricultural sectoral growth rate of 2.44 per cent and 2.30 per cent respectively compared to 4.72 per cent during Eighth Five Year Plan. During the current Five Year plan, agriculture growth is estimated at 3.28 per cent against a target of 4.00 per cent.
The Approach Paper to the Twelveth Five Year Plan emphasises the need to "redouble the efforts to ensure that 4.00 per cent average growth" is achieved during the Plan.
It seems that without proper technology diffusion across regions, achieving this higher growth may not be feasible and may raise concern on the economic stability given the rising demand of the 1.2 billion people for food. Achieving minimum agricultural growth is a pre-requisite for inclusive growth, reduction of poverty levels, development of the rural economy and enhancing of farm incomes.
In India, the agriculture and agricultural products has been a way of life and continues to be the single most important livelihood of the masses. Agricultural policy focus in India across decades has been on self-sufficiency and self-reliance in foodgrains production. Considerable progress has been made on this front. Foodgrains production rose from 52 million tonnes in 1951-52 to 244.78 million tonnes in 2010-11.
Therefore the government plan to maintain the pace in the growth of the Agriculture and to enhance the productivity for the mass population, raise the opportunity for the company to look into that and to have sufficient products in the country to add to its main business.
They always strive to add more to the Company and to maintain the pace of the growth, they once again commit that the growth, development and achievements will not be stopped on its glory, The momentum will be maintained to write some more story of the success.
FUTURE DIRECTIONS
The Company believes that the next phase of growth will come from business with South- East Asian Markets along with the Third Country trade. The business opportunities from these regions, have added to the Company's performance considerably and the strategies are being made to explore much from these regions.
The global infrastructure created by the company by setting subsidiaries at strategic locations will help the future directions of business.
The UAE subsidiary has also gained the remarkable growth in the year of reporting and has notably added to the growth and development of the Group. The subsidiary has added in terms of the increased market, more products and the increased customer based to the group.
The Cyprus subsidiary has now completed its farming infrastructure acquisitions in Ukraine and is expected to build on the vast expanse of agricultural land bank.
Singapore set-up started its operations a shortwhile ago and is expected to lead the growth in South East Asian markets.
The Company is also focused on the Indonesian Coal Mining business, and efforts are being put to start the project as soon as possible, after getting necessary clearances from the local government and obtaining the required licences, as early possible.
With all these efforts, the Company has very content objective to grow bigger and add more for their stakeholders.
FINANCIAL AND
OPERATIONAL PERFORMANCE
The Growth of the Company in terms of turnover was repeated once again in this year too. Emmsons with its proper planning, execution and constant efforts has been able to perform well.
During the year, the financial performance in terms of key parameters is noteworthy. The turnover of the Company for the financial year ended is Rs. 19052.700 Millions as against Rs.13424.700 Millions in the last financial year.
SUBSIDIARY COMPANIES
One of the constant efforts of the management is to establish the Company as multinational Company and to have the wider presence across the globe. The experts, professionals are always putting their effort to explore the new markets/ regions and the wider customer base in the various part of the world and striking business deal with them. The continuous efforts of to take the business of Emmsons on global level, will satisfy their vision to make the organization a Multinational organization.
EMMSONS GULF DMCC:
Since its Inception in the year 2009, this Company has always shown considerable growth and development potential and added to the main course of the business. This is a matter of pride for the parent Company that its subsidiary, Emmsons Gulf DMCC, has overtaken the parent company, both in terms of turnover as well as profitability.
Emmsons Gulf DMCC has been doing business on the same line of its parent Company and has established the presence of Emmsons group in the Middle East market. The Management, further wants to convey you that, recently, Emmsons Gulf DMCC has acquired a coal mine in Indonesia, which is on the verge of starting production in the months to come.
The Management has huge expectations that once the Coal mines started production, it will open the door for the Company to enter into most emerging and vibrant sector of Power. Entering into the power sector, will give all the headway for the Company as a group to accelerate its pace of growth. They have all expectations to increase the pace of development and to earn more for the benefit of its stakeholders.
EMMSONS S.A. :
This company has not been able to make any headway during the business, however, the Management constantly been trying to reestablish the operations of this company. The Management expects to have this year as a fruitful year for the Company and some productivity to add to the main course of its business.
EMMSONS GRAINS
LIMITED, CYPRUS:
Emmsons Grains Limited, the holding company for the Ukrainian farming operations has been brought under their umbrella in December, 2011. The company has completed acquisition of certain farming businesses in Ukraine. The company expects to start generating results from the current year.
OVERSEAS PROJECTS
INDONESIA
Few years ago, the Company developed a very clear vision to enter into the power sector, through acquisition of Coal mines in Indonesia. Initially the Company, through Emmsons Gulf DMCC, had acquired 25% stake in the Coal Mines in Indonesia. During the year under review Emmsons Gulf acquired additional 73.89% stake in the coal mining business. The said acquisition has opened the gateway to enter into the power sector. The Management expects to have the production from the mines very soon, which is expected to add more stability to the business model of the company.
UKRAINE
Emmsons Grains Limited, a wholly owned subsidiary of the company, has acquired farming assets in Ukraine and has been doing corporate farming of wheat, sun-flower seeds and other agri-products, The group has also set up an agro-processing centre for cleaning, drying and storage of agri-products.
CONTINGENT LIABILITY
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
(a) Guarantees to sale tax authorities |
0.590 |
0.590 |
|
(b) Guarantees - Corporate Guarantee for credit facility to subsidiary |
2543.808 |
1525.404 |
|
(c) Letter of credit issued for purchase |
0.000 |
742.757 |
|
(d) Other guarantees |
143.718 |
352.363 |
|
(e) Other money for which the Company is contingently liable |
0.000 |
0.000 |
|
(f) Tax Demand totaling Rs.0.860 Million for Assessment year 2004-2005 raised by the Income Tax Department is being contested by the Company in appeal. No provision has been made for the liability in the accounts under report. Other Tax demand of Rs.1.011 Million For Assessment Year 2008-2009 raised by Income Tax Department is under rectification for apparent error. |
||
|
(g) The trade receivable includes an amounts of Rs.4.319 Million for which the company had obtained a decree against State Bank of India and Unialchem Fertilizer Limited. State Bank of India filed an appeal against the decree in the Supreme court of India. The supreme court has now remanded the case back to high court. The management is confident of recovering the amount after the disposal of at the case and the amount is considered good for recovery. |
||
|
(h) The company has entered an arbitration suit against the Punjab State Warehousing Corporation. The arbitration tribunal has issued its award for Rs.89.025 Millions. However, both the parties have filed separate applications in the court with requests for setting aside the award. The case is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position and expects to get a favorable judgment in the case. |
||
|
(i) The Olympia Spinning and Weaving Mills Limited. Pakistan had commenced arbitration proceeding against Company for recovery of alleged claim on account of non supply of cotton. The arbitration tribunal has issued an award for USD 607852.00 (Equivalent Rs.27.104 Millions) against the company. Olympia has filed an application of execution of award in Delhi High Court. The company has opposed the execution and the case is still in progress. |
||
|
(j) An arbitration award was passed against the company in its case against Bunge (London) limited. However the parties have since reached amicable agreement on the above arbitration and the matter is fully settled. |
||
FIXED
ASSETS:
Ř
Land
Ř
Building
Ř
Plant and Machinery
Ř
Furniture and Fixture
Ř
Vehicles
Ř
Computers
Ř
Office Equipments and Fittings
Ř
Generator
Ř
Website Development Charges
Ř
Trade Mark
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.54.54 |
|
|
1 |
Rs.87.69 |
|
Euro |
1 |
Rs.72.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
37 |
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.