MIRA
INFORM REPORT
|
Report Date : |
08.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
KARUTURI GLOBAL LIMITED |
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Registered
Office : |
# 204, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
26.12.1994 |
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Com. Reg. No.: |
08-016834 |
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Capital
Investment / Paid-up Capital : |
Rs.1100.000 Millions |
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CIN No.: [Company Identification
No.] |
L01122KA1994PLC016834 |
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Legal Form : |
A Public Limited Liability Company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
The Company’s operates in a single segment, agriculture. It
is also focused on its agribusiness. It has taken up cultivation in |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 33000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. The
company has imminent risk of default in FCCB redemption; Further the credit
risk profile of the company is adversely impacted by the contingent
liabilities. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow. The company can be considered for business dealings with great
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
B+ (Term Loan) |
|
Rating Explanation |
Having high risk of default regarding timely servicing of financial
obligation. |
|
Date |
October 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/
Corporate Office : |
# 204, Embassy Center, 11, Crescent Road, Bangalore– 560001, Karnataka, India |
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Tel. No.: |
91-80-40809000 |
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Fax No.: |
91-80-22259782 |
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E-Mail : |
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Website : |
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Domestic Offices : |
FACILITIES / PLANT
/ OFFICE LOCATIONS - INDIA LOCATED AT Floriculture · Bangalore Food Processing · Tumkur Internet Services · Bangalore · Gurgaon · Noida · Bangalore · Gurgaon · Hyderabad |
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Overseas
Office : |
· Dubai · Kenya · Ethiopia · Holland |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Sai Ramakrishna Karuturi |
|
Designation : |
Chairman and Managing Director |
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Name : |
Ms. Anitha Karuturi |
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Designation : |
Whole time Director |
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Name : |
Ms. Aslesha P Madappa |
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Designation : |
Director |
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Name : |
Mr. Satish Kumar Caroli |
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Designation : |
Director |
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Name : |
Mr. Raja Vara Prasad Bommidala |
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Designation : |
Director |
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Name : |
Mr. Mahendra Kumar Sunkara |
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Designation : |
Director |
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Name : |
Mr. Man Mohan Agarwal |
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Designation : |
Director |
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Name : |
Ms. Bina Dinesh Trivedi |
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Designation : |
Director |
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Name : |
Mr. Raaj Sah |
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Designation : |
Director |
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Date of Appointment : |
15.11.2011 |
KEY EXECUTIVES
|
Name : |
Mr. Nagesh Babu .K.L |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category of shareholder |
Number of Shares |
Percentage of
Holdings |
|
(A) Shareholding of Promoter and Promoter Group |
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|
70198260 |
8.79 |
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|
58500000 |
7.33 |
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|
128698260 |
16.12 |
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Total shareholding of Promoter and Promoter Group (A) |
128698260 |
16.12 |
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(B) Public Shareholding |
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|
14657 |
0.00 |
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|
540340 |
0.07 |
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|
134000 |
0.02 |
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|
1500000 |
0.19 |
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|
164925822 |
20.66 |
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|
167114819 |
20.94 |
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|
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|
67954947 |
8.51 |
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|
187490323 |
23.49 |
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|
88575513 |
11.10 |
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|
158381786 |
19.84 |
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|
1306473 |
0.16 |
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|
21161202 |
2.65 |
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|
215000 |
0.03 |
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|
135699111 |
17.00 |
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|
502402569 |
62.94 |
|
Total Public shareholding (B) |
669517388 |
83.88 |
|
Total (A)+(B) |
798215648 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
11511000 |
0.00 |
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|
11511000 |
0.00 |
|
Total (A)+(B)+(C) |
809726648 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company’s operates in a single segment, agriculture. It is also focused on its agribusiness. It has taken up cultivation in Ethiopia. The Company’s other business interests include food processing, floriculture retailing, and information technology. In April 2013, the Company divested from the noncore ISP business. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· ICICI Bank Limited · Dhanlaxmi Bank · HDFC Bank Limited |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
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Auditors : |
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Name : |
Messrs Ishwar and Gopal Chartered Accountants |
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Address : |
Sri Vinayaka Motor Service Building No, 21/3. T.S.P.
Road Kalasipalyam, Bangalore-560002., Karnataka, India |
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KMP interested
company : |
· Anitha Reality Private Limited · Rhea Holding Limited |
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KMP Interested Firm
: |
Horticulture Synergies |
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Wholly Owned
Subsidiary : |
· Karuturi Telecom Private Limited · Karuturi Foods Private. Limited. · KaruturiFloritech Private. Limited. · Karuturi Overseas Limited |
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Subsidiary with
effect from 26-11-2011 : |
Florista India Private Limited |
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Step down
Subsidiary : |
· Karuturi Flower Express Private. Limited. · Ethiopia Meadows Plc · Flower Xpress FZE · Yashoda Investment Limited · Surya Holding Limited · Karuturi Limited · Karuturi Hospital Limited · Rhea Holdings Limited · Karuturi Sports Limited · Karuturi Agro Products PLC · Surya Blossoms PLC · Shiv pack PLC |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1100000000 |
Equity Shares |
Rs.1/- each |
Rs.1100.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
808979232 |
Equity Shares |
Rs.1/- each |
Rs.808.979
Millions |
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Reconciliation of the
equity shares outstanding at the beginning and at the end of the reporting
period:
|
Particulars |
31-Mar-2012 |
|
Number of Equity Shares outstanding at the beginning of the year |
8,055.07 |
|
On Preferential Allotment |
34.72 |
|
Conversion of Share warrants |
- |
|
Conversion of FCCB |
- |
|
Alloted against ESOP entitlement |
- |
|
Conversion of GDR |
- |
|
Number of Equity Shares outstanding at the end of the year |
8,089.79 |
Terms/rights attached
to Equity Shares
The company has only one class of equity shares having par value of Re 1 per Share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
The details of
shareholder holding more than 5% Equity Shares are set below
|
Name of Shareholder |
As at March 31,2012 |
|
|
|
No. of Shares |
% of Holding |
|
Rays Global Corporation |
4,10,00,000 |
5.07 |
|
Maxworth Investment Limited |
4,10,00,000 |
5.07 |
|
Emerging India Focus Funds |
5,59,25,582 |
6.91 |
|
Elera India Opportunities Fund Limited |
6,10,57,000 |
7.55 |
|
India Focus Cardinal Fund |
6,61,43,000 |
8.18 |
|
Simply Class Fashions Private Limited |
6,80,00,000 |
8.41 |
|
Sai Ramakrishna Karuturi |
6,88,20,880 |
8.51 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
808.979 |
805.507 |
|
(b) Reserves & Surplus |
|
7585.380 |
8165.865 |
|
(c) Money
received against share warrants |
|
0.298 |
0.000 |
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|
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(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
8394.657 |
8971.372 |
|
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|
|
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(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
511.585 |
2207.002 |
|
(b) Deferred tax liabilities (Net) |
|
10.492 |
11.936 |
|
(c) Other long term liabilities |
|
35.000 |
35.000 |
|
(d) long-term provisions |
|
1.158 |
0.963 |
|
Total Non-current Liabilities (3) |
|
558.235 |
2254.901 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
|
157.188 |
102.581 |
|
(b) Trade payables |
|
27.383 |
11.891 |
|
(c) Other current liabilities |
|
2127.327 |
72.758 |
|
(d) Short-term provisions |
|
780.831 |
93.827 |
|
Total Current Liabilities (4) |
|
3092.729 |
281.057 |
|
|
|
|
|
|
TOTAL |
|
12045.621 |
11507.330 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
370.051 |
413.781 |
|
(ii) Intangible Assets |
|
0.523 |
0.566 |
|
(iii) Capital
work-in-progress |
|
9855.342 |
9846.286 |
|
(iv) Intangible
assets under development |
|
0.000 |
0.000 |
|
(v) Foreign Currency Monetary Transalation Difference Account |
|
0.000 |
67.312 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
83.058 |
1.451 |
|
(e) Other Non-current assets |
|
1.674 |
13.981 |
|
Total Non-Current Assets |
|
10310.648 |
10343.377 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
15.587 |
14.349 |
|
(c) Trade receivables |
|
173.921 |
86.959 |
|
(d) Cash and cash
equivalents |
|
6.527 |
27.110 |
|
(e) Short-term loans
and advances |
|
1528.214 |
1024.111 |
|
(f) Other current
assets |
|
10.724 |
11.424 |
|
Total Current Assets |
|
1734.973 |
1163.953 |
|
|
|
|
|
|
TOTAL |
|
12045.621 |
11507.330 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
489.305 |
|
|
2] Share Application Money |
|
|
759.600 |
|
|
3] Reserves & Surplus |
|
|
3813.941 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
5062.846 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
944.221 |
|
|
2] Unsecured Loans |
|
|
2523.498 |
|
|
TOTAL BORROWING |
|
|
3467.719 |
|
|
DEFERRED TAX LIABILITIES |
|
|
8.606 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
8539.171 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
272.256 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
6292.173 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
FOREIGN CURRENCY MONETARY TRANSLATION DIFFERENCE ACCOUNT |
|
|
149.879 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
7.847 |
|
|
Sundry Debtors |
|
|
143.062 |
|
|
Cash & Bank Balances |
|
|
17.989 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
1804.773 |
|
Total
Current Assets |
|
|
1973.671 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
8.994 |
|
|
Other Current Liabilities |
|
|
78.275 |
|
|
Provisions |
|
|
61.539 |
|
Total
Current Liabilities |
|
|
148.808 |
|
|
Net Current Assets |
|
|
1824.863 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
8539.171 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
221.059 |
317.968 |
268.103 |
|
|
|
Other Income |
125.506 |
70.183 |
27.564 |
|
|
|
TOTAL (A) |
346.565 |
388.151 |
295.667 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3.731 |
5.709 |
|
|
|
|
Purchase of Stock-in Trade |
88.803 |
166.964 |
|
|
|
|
Change in Inventory of Finished Goods, Work-in-Progress and Stock-in Trade |
(0.673) |
(6.705) |
|
|
|
|
Employee Benefits Expense |
19.389 |
22.737 |
|
|
|
|
Other Expenses |
84.699 |
60.938 |
|
|
|
|
TOTAL (B) |
195.949 |
249.643 |
151.765 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
150.616 |
138.508 |
143.902 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
18.202 |
20.850 |
16.992 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
132.414 |
117.658 |
126.910 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7.031 |
8.112 |
46.326 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
125.383 |
109.546 |
80.584 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
11.012 |
10.445 |
(7.197) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
114.371 |
99.101 |
87.781 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on F.O.B. basis |
210.109 |
220.139 |
189.352 |
|
|
|
Other income (Lease rental income) |
1.000 |
6.000 |
6.000 |
|
|
TOTAL EARNINGS |
211.109 |
226.139 |
195.352 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
0.14 |
0.17 |
0.19 |
|
|
|
Diluted |
0.13 |
0.15 |
0.15 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
14.100 |
11.000 |
50.200 |
116.300 |
|
Total Expenditure |
15.000 |
13.300 |
26.100 |
101.800 |
|
PBIDT (Excl OI) |
(01.000) |
(02.300) |
24.100 |
14.600 |
|
Other Income |
25.600 |
45.300 |
24.100 |
(61.800) |
|
Operating Profit |
24.600 |
43.000 |
48.200 |
(47.300) |
|
Interest |
07.800 |
5.700 |
10.000 |
19.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
(464.400) |
|
PBDT |
16.800 |
37.300 |
38.200 |
(531.200) |
|
Depreciation |
02.300 |
2.900 |
2.400 |
2.400 |
|
Profit Before Tax |
14.600 |
34.400 |
35.700 |
(533.600) |
|
Tax |
02.500 |
8.200 |
(01.600) |
(29.500) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
12.100 |
26.200 |
37.400 |
(504.100) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
12.100 |
26.200 |
37.400 |
(504.100) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
33.00
|
25.53 |
29.69 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
56.72
|
34.45 |
30.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.72
|
6.87 |
3.59 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.01 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.08
|
0.26 |
0.68 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.56
|
4.14 |
13.26 |
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 |
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 |
CHARGES:
|
ENTITY |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
KARUTURI GLOBAL
LIMITED (Old Name KARUTURI NETWORKS LIMITED) |
BSE |
DID NOT SUBMIT SHAREHOLDING PATTERN UNDER PROVISIONS OF CLAUSE 35 FOR THE QUARTER ENDED 31-DECEMBER-2009 |
PUT UP ON BSE WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST FOR THE QUARTER ENDED 31-MARCH-2010 |
|
KARUTURI GLOBAL
LIMITED (Old Name KARUTURI NETWORKS LIMITED) |
SEBI |
ALLEGED FAILURE IN MAKING DISCLOSURE OF
SHAREHOLDING/CHANGES IN SHAREHOLDING TO COMPANY AS REQUIRED UNDER REGULATION 13(6)
OF SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 1992 IN MATTER OF
5,40,000 SHARES SOLD BY PROMOTER RHEA HOLDINGS PRIVATE LIMITED |
REACHED SETTLEMENT (SETTLEMENT CHARGES RS.1,75,000,
ADMINISTRATION CHARGES RS.25,000 VIDE CONSENT ORDER) |
|
|
KARUTURI GLOBAL
LIMITED (Old Name KARUTURI NETWORKS LIMITED) |
SEBI |
ALLEGED FAILURE IN MAKING DISCLOSURE OF SHAREHOLDING/CHANGES IN SHAREHOLDING TO STOCK EXCHANGES AS REQUIRED UNDER REGULATION 13(6) OF SEBI (PROHIBITION OF INSIDER TRADING) REGULATIONS, 1992 IN MATTER OF KARUTURI NETWORKS LIMITED |
REACHED SETTLEMENT (SETTLEMENT CHARGES RS.2,00,000 VIDE
CONSENT ORDER) |
|
UNSECURED LOAN:
(Rs.
in Millions)
|
Particulars |
As
on 31.03.2012 |
As
on 31.03.2011 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
LONG TERM
BORROWINGS |
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Foreign Currency Convertible Bonds (FCCB) |
0.000 |
1995.240 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Loans and advance from related parties |
363.574 |
0.000 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
SHORT TERM
BORROWINGS |
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Loans and advances from Related Parties |
32.958 |
0.857 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Inter Corporate Deposits |
5.420 |
0.000 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total |
401.952 |
1996.097 |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Foreign Currency
Convertible Bonds:
Pro-rata Redemption Premium upto 31.03.2012 is provided by debiting Securities Premium Account. Details of Term Liabilities
from Related Parties: (Rs. in Millions)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
MANAGEMENT DISCUSSION
AND BUSINESS ANALYSIS :
BUSINESS REVIEW:
During 2011 -12, the Company was able to maintain its position in the Floriculture Industry in the midst of the
European Crisis which is its key market. The Company continued to make steady progress in its Agricultural foray developing 1,00,000 Ha of Land in Ethiopia.
AGRICULTURE:
The Company has procured wide range of machinery and equipment, for sowing, harvesting, spraying and other processes, like high end Tractors of 250 HP and 450 HP, Mulch Rippers, Trailers, Disc plough, cultivators, maize planters, puddling wheels for the plantation purpose. These equipments have been procured from all over the world from Companies like CASE, John Deere, Great Plains, Doosan, Volvo, CRI, JCB, Ashok Leyland etc.
The Company had planted more than 10000 Ha last year in June but suffered a setback due to flash floods which had damaged the crops. Subsequently dykes were rebuilt with a larger base of 9 meters width at the bottom, 3 meters width at the top and a height of 3 meters. Dykes spreading over 110 KM has been built and the same is being expanded to all areas. This will prevent any flooding in future.
The Company has made substantial progress in setting up irrigation systems and is building a network of canals
and pumping water from Baro river.
This season 5000 Ha of Maize and some trial crop of Paddy has been planted and the same is growing very well.
A good harvest is expected. Drought in America and increased demand has resulted in the price of Maize quoting
at a very encouraging level. The Sugarcane Nursery is being expanded to cover about 200 Ha.
The Company has engaged a team of Farmers from Uruguay, South America and Farmers National Company, USA to provide the necessary expertise for Large Scale Farming. These farmers have over 20 years of experience in doing Large scale farming using high end farm equipments. These farmers have been engaged on a success based model extending its scheme of engaging with various specialists for Key functional and support areas.
FLORICULTURE:
The flagship floriculture business has been affected largely by the volatility of the Euro and the Euro zone events.
During Valentine this year both the quantities and prices were affected due to extreme weather condition going down to – 20 degrees in most parts of the markets in Europe. The Company has managed to keep the impact of the Euro Zone crisis at the minimum level.
In its Kenyan operations the Company continues to focus on green initiatives which include: Bio gassifiers to generate electricity, expanding the vermi licheate program and also a further extension of the green planet program. The Company has also planted new varieties in the farms which have good potential acceptability.
FOOD PROCESSING:
This food Processing business at Karuturi Foods Private Limited (KFPL) has shown about 30% growth in the topline shipping about 260 containers during the year. The Company has expanded its reach to newer markets in South America and East European countries besides its main markets in Russia and USA. The Company has invested in some new machinery to increase the efficiency levels of its processing. In the current year the Company plans to spread its market across various countries reducing its dependence on Russia which is a volatile market.
The factory has been certified by BRC (British Retail Consortium) besides HACCP, FDA & KOSHER. KFPL has participated in the Moscow Food Fair and ANUGA at Cologne, Germany and PLMA, Amsterdam.
KFPL plans to increase its processing capacity again in the next year by installing another pasteurizer, boiler and material handling equipments.
ISP:
The ISP business being carried on under Karuturi Telecom Private Limited (KTPL) was stable with the said Company growing its capacity by about 20% in terms of delivery of Bandwidth and VOIP minutes. The Company saw pressure on the margins due to fall in prices. The Company has acquired some new customers in various geographies and also continues to grow its business with its existing key customers. Stable growth is expected in the current year.
OUTLOOK:
The Company’s Strategic Goal this year would be to bring a larger area under Agricultural Production during the year and continue to create new opportunities in its Floriculture, Food Processing and IT businesses.
CONTINGENT
LIABILITIES
(Rs.
in Millions)
|
Particulars |
31-Mar-2012 |
31-Mar-2011 |
|
Contingent Liabilities |
|
|
|
Disputed Income Tax Dues (as detailed below) |
834.966 |
71.900 |
|
Disputed Service Tax Dues |
17.262 |
17.262 |
|
Disputed Entry Tax |
0.250 |
0.250 |
|
Corporate Guarantees given to Bank against borrowing by the Subsidiaries |
4962.180 |
1929.400 |
FIXED ASSETS:
· Land-Freehold
· Land- Leasehold
· Buildings
· Borewell
· Greenhouse
· Plant and Machinery
· Plantation
· Furniture and Fixtures
· Computers
· Vehicles
AS PER WEBSITE DETAILS:
PRESS RELEASE:
SEBI IMPOSES RS 40
LAKH FINE ON KARUTURI GLOBAL'S ENTITIES
Jul 03, 2013, 09.01 PM IST
Sebi has imposed penalties worth Rs 4.000 Millions on different entities, including promoters of Karuturi Global, for alleged violations of various norms like requisite disclosures about shareholding patterns.
Also Read: MPS norms: SAT rejects Gillette's plea; upholds SEBI order
In seven separate orders dated July 2, Sebi imposed penalities on Karuturi Global MD KS Ramakrishna and company's 3 promoter entities — Anitha Karuturi, Rhea Holdings and Simply Class Fashions for violations of various regulations.
Besides, fines have been slapped on Karuturi Global's director Anil T and persons acting in concert with promoters.
In one order, Sebi has imposed a penalty of Rs 0.300 Million on Ramakrishna for indulging in insider trading activities and not making requisite disclosure regarding his shareholding. The regulator said its probe had found that Ramakrishna as managing director of Karuturi Global had traded in shares of the company while the trading window was closed.
As per the code of conduct under the insider trading norms, Ramakrishna was required to take permission from the company before trading which he failed to do.
In an another order, Sebi has collectively imposed a fine of Rs 1.500 Millions on Ramakrishna, three promoters and director Anil T for failure to make public announcement regarding acquisition of substantial number of company's shares.
Consequent to a conversion of warrants into shares in 2006, the aggregate stake of these entities went up by 14.5 percent. As per norms, upon such acquisition of shares that go beyond the threshold limit of 5 percent, the entities were required to make public announcement of offer.
Another penalty of Rs 1.500 Millions was imposed on Ramakrishna Anitha Karuturi and their PACs for allegedly not making a public announcement after their stake in the company grew by 17.26 percent in 2005.
Separately, Anitha Karuturi and Simply Class Fashions were slapped with Rs 0.200 Million each, while Rhea Holdings was imposed a fine of Rs 0.300 Million for not making requisite disclosures to the company and the concerned stock exchange.
Meanwhile, Sebi has disposed off the case against Karuturi Global that alleged the firm of not providing BSE its revised shareholding pattern for the September quarter 2004. "I concede with the submissions of the noticee (Karuturi Global) that the errors were inadvertent, unintended and did not cause any harm to the investors," Sebi's adjudicating officer P K Kuriachen said in the order.
"... the noticee has already taken steps to rectify the errors. I am of the view that the present case is not fit for warranting imposition of monetary penalty," he added.
KARUTURI GUILTY OF
TAX EVASION
Nairobi, 22 April 2013
Karuturi guilty of
tax evasion
Global flower industry giant found breaking the law in Kenya
The Kenyan government has found Karuturi Global Limited, the world's biggest producer of cut roses, guilty of tax evasion. This is the first time an African government has brought a large multinational company to court for transfer mispricing through a fully public process. A broad alliance of civil society movements and organisations are celebrating the Kenyan government's resolve to stop such behaviour and to do so transparently.
In late 2012, the Kenya Revenue Authority ruled that the Bangalore, India-based multinational used transfer mispricing to avoid paying the government of Kenya nearly US$11 million (EUR8 million) in corporate income tax, part of a larger set of tax disputes with government authorities that amount to a quarter of the firm's 2012 sales. On 4 April 2013, Karuturi appealed the ruling, bringing the proceedings into the public domain.
"Companies like Karuturi are haemorrhaging Africa," says Dr Attiya Waris, a senior lecturer in tax law at the University of Nairobi and Vice-Chairperson of the Tax Justice Network. "Transfer mispricing is robbing Kenyan workers and citizens of access to good public education, health care, transport services and a clean environment, which their government can only provide through proper revenues."
Tax evasion costing
developing countries US$1 trillion per year
Karuturi produces 580 million roses per year from its operations in Kenya, Ethiopia and India. (One out of nine roses bought in Europe comes from a Karuturi farm.) The flowers it produces in Kenya are shipped to Europe through a subsidiary in Dubai. By under declaring the value of the merchandise shipped to its warehouse in Dubai, the firm saves costs on its tax bill. This is illegal under Kenyan law.
Waris and others estimate that capital flight due to tax evasion is costing developing countries around US$1 trillion per year.
"Companies like Karuturi have to play fair," remarks Stephen Gichohi of Forum Syd whose partner Muungano wa Wanavijiji recently discussed the issue with workers from Karuturi Flower Farms in Naivasha, Kenya. “Karuturi farm workers have a range of concerns about spraying equipment, health services, wages and housing and need their conditions improved as soon as possible.”
Grabbing the land
Karuturi is also expanding aggressively into large-scale agriculture, and has acquired long term rights to more than 300,000 hectares of fertile farmland in Ethiopia since 2009. The land was leased from the government, but intense conflict has emerged over the compensation, displacement and relocation of villagers and herders who lived on or grazed the lands.
"We are extremely grateful that the Kenyan authorities have caught this land grabber right in its tracks," says Nyikaw Ochalla of the Anywaa Survival Organisation, a group defending the indigenous Anuak communities badly affected by Karuturi in Gambela, Ethiopia. "This company is criminal, on many counts," continues Ochalla.
"Not only are they fiscal cheats, but Karuturi has been accused of human rights abuses, poor labour practices, threats to the environment and so on," points out Devlin Kuyek of GRAIN, one of the groups following the tax dispute. "Even the World Bank Group did not grant Karuturi the political risk insurance it requested for its Ethiopian operations."
KARUTURI
GLOBAL - BOND HOLDERS APPROVE RESTRUCTURING OF OUTSTANDING FOREIGN
CURRENCY CONVERTIBLE BONDS (FCCBS) ISSUED BY THE KARUTURI GLOBAL LIMITED
6th-Mar-2013 15:28
With reference to the earlier announcement dated August 13, 2012 regarding subject to such approval, Board of Directors of the Company has approved restructuring of Foreign Currency Convertible Bonds (FCCBs) amounting 55.07 MN USD (including interest), Karuturi Global Limited has now informed BSE that the bondholders of outstanding FCCBs of US$ 39,000,000, which was matured on October 19, 2012, have approved the restructuring proposal by passing a written resolution, which involves extension of maturity of the FCCBs, part redemption of the FCCBs and part refinance by cashless exchange of FCCBs for New FCCBs. The Company has made an application to the Reserve Bank of India (RBI) for necessary approval under the extant ECB Guidelines.
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.60.34 |
|
|
1 |
Rs.90.79 |
|
Euro |
1 |
Rs.77.81 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
27 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.