MIRA
INFORM REPORT
|
Report Date : |
17.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
HATSUN AGRO PRODUCT LIMITED |
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|
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|
Registered
Office : |
Domaine, Door No. 1/20A, Rajiv Gandhi Salai, (OMR), Karapakkam,
Chennai – 600097, Tamilnadu |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
04.03.1986 |
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Com. Reg. No.: |
18-012747 |
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Capital
Investment / Paid-up Capital : |
Rs.107.725 Millions |
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|
|
CIN No.: [Company Identification
No.] |
L15499TN1986PLC012747 |
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|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacture and Sale of Milk, Milk Products and Ice Cream. |
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|
No. of Employees
: |
2780 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4300000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a satisfactory track record.
The company has achieved better growth in its sales and profit during 2012. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual
trade terms and condition. |
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 |
|
Low |
A2 |
|
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 |
CARE |
|
Rating |
BBB+ (Long Term Bank Facilities) |
|
Rating Explanation |
Having moderate degree of safety regarding
timely servicing of financial obligation. It carry moderate credit risk. |
|
Date |
September 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 : |
Domaine, Door No. 1/20A, Rajiv Gandhi Salai, (OMR), Karapakkam, Chennai – 600097, Tamilnadu, India |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
5A, Vijayaraghava Road, T. Nagar, Chennai - 600017,
Tamilnadu, India |
|
Tel. No.: |
91- 44-28150014 |
|
Fax No.: |
91- 44-28152508 |
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|
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|
Factory 1 : |
Attur Main Road, Karumapuram Village, Salem - 636 106, Tamilnadu, India |
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Factory 2 : |
Timmasamudram Village (White Gate), Chennai-Bangalore Highway, Kancheepuram Taluka, Kancheepuram - 631 502, Tamilnadu, India |
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Factory 3 : |
No,114, Angadu Road, Nallur Village, Redhills, Chennai - 600 067, Tamilnadu, India |
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Factory 4 : |
No. 277/2, Desur Village, Kanapur Road, Belgaum - 590 014, Karnataka, India |
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Factory 5 : |
No. 109/2, Melebennur Road, Kundur Village, Honnali Taluka, Davangere District, Honnali - 577 219, Karnataka, India |
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Factory 6 : |
Sangam Pasuvathala Village, Kolasanahalli Panchayat, Marandahalli Main Road, Palacode Taluk, Dharmapuri District - 636 808, Tamilnadu |
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Factory 7 : |
No.76/2B, Dindugal Madurai Main Road Thiruvazhavayanallur, Vadipatti Taluka, Madurai - 625 221, Tamilnadu, India |
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Factory 8 : |
V Koottu Road Pirivu, Attupannai, Periyeri Post, Thalaivasal, Attur Taluka, Salem District - 636 101, Tamilnadu, India |
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DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. R.G. Chandramogan |
|
Designation : |
Chairman And Managing Director |
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|
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|
Name : |
Mr. K.S. Thanarajan |
|
Designation : |
Joint Managing Director |
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Name : |
Mr. C. Sathyan |
|
Designation : |
Executive Director |
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Name : |
Mr. P. Vaidyanathan |
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Designation : |
Executive Director |
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Name : |
Mr. Kirti P Shah |
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Designation : |
Executive Director |
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Name : |
Mr. S. Thiagarajan |
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Designation : |
Executive Director |
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Name : |
Mr. B.S. Mani |
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Designation : |
Executive Director |
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Name : |
Mr. N. Chandrasekaran |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Audit Committee : |
· P. Vaidyanathan · S. Thiagarajan · B.S. Mani |
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|
|
|
Shareholders’/Investors’ Grievance Committee
: |
· S. Thiagarajan · P. Vaidyanathan · K.S. Thanarajan |
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|
Remuneration
Committee : |
· P. Vaidyanathan · S. Thiagarajan · B.S. Mani |
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Sub Committee : |
· R.G. Chandramogan · K.S. Thanarajan · C. Sathyan · B.S. Mani |
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Share Transfer
Committee : |
· R.G. Chandramogan · P. Vaidyanathan · K.S. Thanarajan |
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|
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|
Core Committee : |
· R.G. Chandramogan · K.S. Thanarajan · C. Sathyan |
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|
|
|
Name : |
S. Chandrasekar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
80067030 |
74.35 |
|
|
80067030 |
74.35 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
80067030 |
74.35 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
150 |
0.00 |
|
|
3700 |
0.00 |
|
|
3850 |
0.00 |
|
|
|
|
|
|
3836850 |
3.56 |
|
|
|
|
|
|
8797540 |
8.17 |
|
|
10630215 |
9.87 |
|
|
4356163 |
4.05 |
|
|
18995 |
0.02 |
|
|
4337168 |
4.03 |
|
|
27620768 |
25.65 |
|
Total Public
shareholding (B) |
27624618 |
25.65 |
|
Total (A)+(B) |
107691648 |
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) |
107691648 |
0.00 |
Equity Share Break up (Percentage of Total Equity)
BUSINESS DETAILS
|
Line of Business : |
Manufacture and Sale of Milk, Milk Products and Ice Cream. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
2780 (Approximately) |
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Bankers : |
· State Bank of India · The South Indian Bank Limited · ICICI Bank Limited · Axis Bank Limited · Yes Bank Limited · Standard Chartered Bank · The Lakshmi Vilas Bank Limited · ING Vysya Bank Limited · Indusind Bank Limited |
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Facilities : |
(Rs.
In Millions)
Notes: Secured short term loan has been availed from Yes Bank Limited and is secured by exclusive charge on unencumbered plant and machinery to the extent of Rs.0.002 Million. The facility has been personally guaranteed by Managing Director. Further, shares aggregating to1.5 times of the loan amount has been pledged by the Managing Director. Cash credit facility has been availed from State Bank of India and is secured by a first charge on all the current assets and pari-passu first charge with ICICI Bank Limited over existing fixed assets of the Company pertaining to Salem, Kanchipuram and Belgaum locations. Further, this facility has been personally guaranteed by Managing Director and his spouse. |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S.R. Batliboi and Associates Chartered Accountants |
|
Address : |
6th and 7th Floor - “A” Block, Tidel Park, (Module 601, 701 and 702), No.4, Rajiv Gandhi Salai, Taramani, Chennai - 600 113, Tamilnadu, India |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.1/- each |
Rs.250.000 Millions |
|
500000 |
Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.300.000
Millions |
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
107821648 |
Equity Shares |
Rs.1/- each |
Rs.107.822 Millions |
|
|
|
|
|
Subscribed and fully
paid:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
107691648 |
Equity Shares |
Rs.1/- each |
Rs.107.692 Millions |
|
130000 |
Equity Shares (Subscribed and not fully paid) |
Rs.0.25/- each |
Rs.0.033 Million |
|
|
|
|
|
|
|
Total |
|
Rs.107.725 Millions |
a. Reconciliation of shares
outstanding at the beginning and at the end of the reporting period
Subscribed and fully
paid
|
Particulars |
March 31, 2012 |
|
|
|
Nos. |
Rs. In Millions |
|
At the beginning of the year |
35897216 |
71.794 |
|
Sub division of equity shares of face value Rs.2/- each to Re.1/- each |
35897216 |
-- |
|
Issued during the year - Conversion of Debentures |
-- |
-- |
|
Issued during the year - Bonus issue |
35897216 |
35.898 |
|
Outstanding as at
the end of the year |
107691648 |
107.692 |
During the year, the Company has sub divided equity shares of face value Rs.2/- into equity shares of face value of Re.1/-. The Company has also allotted 1 bonus share for every 2 shares held, credited as fully paid up, during the year.
Subscribed and not
fully paid
|
Particulars |
March 31, 2012 |
|
|
|
Nos. |
Rs. In Millions |
|
At the beginning of the year |
65000 |
0.033 |
|
Sub division of equity shares of face value Rs.2/- each to Re.1/- each |
65000 |
-- |
|
Outstanding as at the end of the year |
130000 |
0.033 |
b. Terms/ Rights
attached to Equity shares
The Company has only one class of equity shares having par value of Re.1/- per share (March 31, 2011 - Rs.2/-). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final 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 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs.1.30 (31 March 2011: Rs.1.10).
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 payments. The distribution will be in proportion to the number of equity shares held by the shareholders.
c. Aggregate number
of bonus shares issued during the period of five years immediately preceding
the reporting date
|
|
March 31, 2012 |
|
Equity shares allotted as fully paid bonus shares by capitalization of Capital Redemption Reserve 35,897,216 (March 31, 2011: Nil) equity shares of Re.1/- each issued as fully paid bonus shares by capitalisation of Capital Redemption Reserve |
35897216 |
d. Details of
shareholders holding more than 5 % shares in the Company
|
Particulars |
March 31, 2012 |
|
|
|
Nos. |
% holding |
|
Equity shares of Re.1/- each (March 31, 2011: Rs.2/- each) fully paid |
|
|
|
Chandramogan R.G. |
61756974 |
57.35 |
|
Sathyan C |
9897237 |
9.19 |
As per the of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
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 |
|
107.725 |
71.827 |
|
(b) Reserves & Surplus |
|
969.424 |
856.120 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
1075.860 |
1002.689 |
|
(b) Deferred tax liabilities (Net) |
|
254.013 |
237.474 |
|
(c) Other long term liabilities |
|
6.125 |
6.565 |
|
(d) long-term provisions |
|
0.000 |
0.000 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term
borrowings |
|
1656.579 |
1355.008 |
|
(b) Trade payables |
|
605.337 |
366.582 |
|
(c) Other current
liabilities |
|
973.792 |
947.437 |
|
(d) Short-term provisions |
|
33.833 |
14.546 |
|
TOTAL |
|
5682.688 |
4858.248 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
3565.146 |
3457.124 |
|
(ii) Intangible Assets |
|
46.815 |
29.649 |
|
(iii) Capital
work-in-progress |
|
84.856 |
102.276 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
101.321 |
107.742 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
1412.194 |
643.159 |
|
(c) Trade receivables |
|
86.162 |
96.701 |
|
(d) Cash and cash
equivalents |
|
101.699 |
100.221 |
|
(e) Short-term loans
and advances |
|
280.257 |
309.401 |
|
(f) Other current
assets |
|
4.238 |
11.975 |
|
TOTAL |
|
5682.688 |
4858.248 |
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
67.921 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
467.250 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
535.171 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
2136.678 |
|
|
2] Unsecured Loans |
|
|
1000.707 |
|
|
TOTAL BORROWING |
|
|
3137.385 |
|
|
DEFERRED TAX LIABILITIES |
|
|
197.039 |
|
|
DEFERRED INCOME |
|
|
7.445 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3877.040 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
3221.340 |
|
|
Capital work-in-progress |
|
|
330.567 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
570.616 |
|
|
Sundry Debtors |
|
|
136.595 |
|
|
Cash & Bank Balances |
|
|
139.822 |
|
|
Other Current Assets |
|
|
14.180 |
|
|
Loans & Advances |
|
|
247.619 |
|
Total
Current Assets |
|
|
1108.832 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
480.077 |
|
|
Other Current Liabilities |
|
|
282.953 |
|
|
Provisions |
|
|
20.669 |
|
Total
Current Liabilities |
|
|
783.699 |
|
|
Net Current Assets |
|
|
325.133 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3877.040 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16035.367 |
13557.320 |
11406.031 |
|
|
|
Other Income |
33.422 |
15.070 |
29.298 |
|
|
|
TOTAL (A) |
16068.789 |
13572.390 |
11435.329 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw materials and components consumed |
12554.737 |
9976.315 |
|
|
|
|
Purchases of traded goods |
56.490 |
171.168 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(550.989) |
19.328 |
|
|
|
|
Employee benefits expenses |
523.822 |
459.021 |
|
|
|
|
Other expenses |
2360.086 |
1985.736 |
|
|
|
|
TOTAL (B) |
14944.146 |
12611.568 |
10773.554 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1124.643 |
960.823 |
661.775 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
384.473 |
358.590 |
278.302 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
740.170 |
602.233 |
383.473 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
418.412 |
370.602 |
268.117 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
321.758 |
231.631 |
115.356 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
55.739 |
44.176 |
88.463 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
266.019 |
187.455 |
26.893 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
291.443 |
167.413 |
206.260 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Equity Shares |
78.974 |
38.315 |
1.470 |
|
|
|
Interim Dividend on Preference Shares |
|
|
50.800 |
|
|
|
Proposed Final Dividend on Equity Shares |
21.538 |
0.000 |
10.183 |
|
|
|
Dividend tax –Preference Shares |
0.000 |
0.000 |
0.250 |
|
|
|
Tax on Dividends |
16.305 |
6.364 |
1.692 |
|
|
|
Transfer to General Reserve |
318.045 |
18.746 |
1.345 |
|
|
BALANCE CARRIED
TO THE B/S |
122.600 |
291.443 |
167.413 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
52.610 |
738.519 |
465.140 |
|
|
|
Royalty income |
0.752 |
0.726 |
0.806 |
|
|
TOTAL EARNINGS |
53.362 |
739.245 |
465.946 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and packing
materials |
26.371 |
29.071 |
5.750 |
|
|
|
Components and spare parts |
0.645 |
1.284 |
0.000 |
|
|
|
Capital goods |
32.794 |
20.642 |
70.633 |
|
|
TOTAL IMPORTS |
59.810 |
50.997 |
76.383 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
2.47 |
1.81 |
0.74 |
|
|
|
Diluted |
2.47 |
1.78 |
0.74 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
4905.100 |
5297.200 |
5432.100 |
5976.900 |
|
Total Expenditure |
4524.800 |
4931.200 |
5043.200 |
5673.200 |
|
PBIDT (Excl OI) |
380.400 |
366.100 |
388.900 |
303.700 |
|
Other Income |
3.200 |
5.100 |
43.600 |
24.500 |
|
Operating Profit |
383.600 |
371.200 |
432.400 |
328.200 |
|
Interest |
104.100 |
112.600 |
116.400 |
111.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
279.500 |
258.600 |
316.000 |
217.000 |
|
Depreciation |
110.500 |
131.300 |
126.600 |
134.900 |
|
Profit Before Tax |
169.000 |
127.300 |
189.500 |
82.100 |
|
Tax |
30.000 |
30.700 |
39.200 |
21.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
139.000 |
96.600 |
150.300 |
60.800 |
|
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 |
139.000 |
96.600 |
150.300 |
60.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.66 |
1.38 |
0.24 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.01 |
1.71 |
1.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.75 |
4.87 |
2.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30 |
0.25 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.54 |
2.54 |
5.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.58 |
0.43 |
1.41 |
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 |
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 |
No |
|
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 LOAN
(Rs.
In Millions)
|
Particular |
As on 31.03.2012 |
As on 31.03.2011 |
|
LONG TERM
BORROWINGS |
|
|
|
From other parties |
31.835 |
41.511 |
|
Other Loans and
advances |
|
|
|
Deposits from public |
0.000 |
9.471 |
|
Finance lease obligations |
0.503 |
2.985 |
|
Assets refinance obligations |
0.000 |
17.519 |
|
SHORT TERM
BORROWINGS |
|
|
|
Short term loans from banks |
800.000 |
200.000 |
|
Deposits from Public |
0.000 |
3.156 |
|
Loans repayable on demand
from banks |
|
|
|
Overdraft facilities |
0.000 |
15.069 |
|
Packing credit |
0.000 |
40.285 |
|
Factoring credit |
124.803 |
239.431 |
|
|
|
|
|
Total |
957.141 |
569.427 |
PERFORMANCE OF THE
COMPANY
During the year, the Company earned revenue from operations (net) of Rs.16035.367 Millions representing an increase of 18.27% over that of the previous year. The Company registered a net profit of Rs.266.019 Millions, as compared to previous year’s net profit of Rs.187.455 Millions.
The net revenue from “Milk and Milk products” amounts to Rs.14581.861 Millions representing an increase of 19.01% over that of the previous year. The net revenue from “Ice Cream products” amounts to Rs.1157.868 Millions representing an increase of 26.54% over that of the previous year.
The increase in the profitability is due to economies of scale, leveraging on a pan India presence of milk products leading to increased turnover and better margins, rationalisation of logistics costs, elimination of wastages and effective cost control measures.
Future Plan
The major thrust areas in the current financial year would be in Long Life Milk Products/Dairy Ingredients and Curd in the domestic market. This will help the Company to strengthen its presence and enable it to maintain its leadership position.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
GENERAL ECONOMIC
SCENARIO AND INDUSTRY STRUCTURE
The major challenges generally confronting a growing economy are to manage growth simultaneously with price stability. In 2011-12, India found herself in the throes of these conflicting demands. During 2011-12, the Indian Economy registered a growth of 6.5% after having grown at the rate of 8.4 percent in each of the two preceding years. With agriculture and services continuing to perform reasonably well, India’s slowdown could be attributed almost entirely to the weakening industrial growth. India registered a slowdown compared not just to the previous two years but 2003 to 2011 (except 2008-09).
The global economic environment, which has been tenuous at best throughout the year, turned sharply adverse in
September 2011 owing to the turmoil in the euro zone and questions about the outlook on the US economy provoked by rating agencies. This has had its spiraling impact on the Indian economy as well and with the domestic growth rate also not coming upto the expectations, the situation is looking increasingly gloomy.
It is now an opportune time for the Indian policy makers to use their perspective as a benchmark and ask what they can do as planners and architects of policy to pull India back into the growth trajectory.
Agriculture in India is the means of livelihood of almost two thirds of the work force in the Country. It has always been INDIA’S most important economic sector. The 1970s saw a huge increase in India’s wheat production that heralded the Green Revolution in the Country. The increase in post-independence agricultural production has been brought about by bringing additional area under cultivation, extension of irrigation facilities, use of better seeds, better techniques, water management and plant protection. The monsoons, however, play a critical role in Indian agriculture in determining whether the harvest will be bountiful, average or poor in any given year.
Agriculture in India is improving with collaboration in technology using tractors, fertilisers and also new methods to aid farming. India is among 15 leading exporters of agricultural products in the world. Good quality seed is one of the most important inputs for enhancing agricultural productivity and production. Further, FDI policy for agricultural sector was amended to allow 100 percent FDI under automatic route for ‘development of seed’ as compared to the earlier provision of ‘development of seed under controlled condition’.
However, the major challenges in agriculture sector include marginal land holdings, improvement in yield, adoption of farm mechanisation, declining per capita availability of food grains, storage capacity, irrigation facilities, market intelligence and development of food processing industry.
In this respect, the Dairy sector plays an important role in India’s socio-economic development as milk and milk products provide livelihood to millions of homes in villages, ensuring supply of quality dairy products in urban as well as rural areas. The Indian dairy industry has been witnessing an impressive growth for the past few years on back of rising milk production. It is estimated that the milk production will increase in the Country at a Compound Annual Growth Rate (CAGR) of around 4% during 2011-2015.
In India, the dairy industry has been growing rapidly to keep pace with the increasing demand for milk and milk products in the Country. The consumption of dairy products is rising exponentially in India as they provide rich nourishment.
At present, India is the world’s largest producer of milk and it is expected that the incessantly increasing demand for milk will surpass its production in the coming years.
CONTINGENCIES
(Rs. In Millions)
|
Particular |
31.03.2012 |
31.03.2011 |
|
Claims made against the Company not acknowledged as debts in respect of sales tax and income tax matters |
|
|
|
Income tax matters (note (i) and (ii)) |
15.000 |
41.092 |
|
Sales tax matters note (iii) |
0.452 |
0.932 |
Note (i) : In respect of the Income tax assessment year 1996-1997, the Company’s claim for deduction towards non-compete fees of Rs.400 was disallowed by the Income tax Assessing Officer. The Commissioner of Income tax (Appeals) ruled in favour of the Company. However, the Income tax Appellate Tribunal has upheld the disallowance of the aforesaid expenditure and the Company has filed an appeal in the High Court of Judicature, Madras. Management’s estimate of the tax impact of such disallowance is Rs.150 (including estimated interest but excluding penalties etc, if any). Based on the expert advice, the management believes that the Company has strong case and hence, no provision and consequential adjustments, if any for such disputed amount have been considered in the financial statements.
Note (ii) : Contingent liabilities relating to income tax matters of previous year includes Rs.260.92 (includes Rs.50 paid under protest) relating to financial year 2007-08 due to disallowance of certain sales promotion expenses and interest expense. During the current year, the Company has obtained a favourable order relating to this dispute. Further, the Company had received income tax demand aggregating Rs.123.14 on same issues as described above, for the financial year 2008-09. Considering the favourable order obtained by the Company on these issues for financial year 2007-08, the Management believes that the tax exposure for the financial year 2008-09 to be remote.
Note (iii) : The Company had made an application under Samadhan Scheme and has paid an amount of Rs.4.80 (gross tax amount is Rs.9.32) towards the full settlement of the liability. The Company is yet to receive the orders from the Sales Tax department.
AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED MARCH 31, 2013
(Rs. In Millions)
|
|
|
Quarter ended |
Quarter ended |
Year ended |
|
S.No. |
Particulars |
March 31,2013 |
December 31,2012 |
March 31,2013 |
|
|
|
Audited * |
Unaudited |
Audited |
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net Sales from Operations (Net of Excise duty) |
5934.544 |
5421.103 |
21536.771 |
|
|
(b) Other operating Income |
42.323 |
49.878 |
113.419 |
|
|
Total Income from
operations (net) |
5976.867 |
5470.981 |
21650.190 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
3919.571 |
4278.745 |
16186.430 |
|
|
(b) Purchases of stock-in-trade |
0.427 |
22.191 |
96.156 |
|
|
(c) Changes in Inventories of finished goods, work-in- progress and stock-in-trade |
704.318 |
(236.360) |
97.371 |
|
|
(d) Employee benefits expenses |
157.576 |
155.823 |
621.128 |
|
|
(e) Depreciation and amortisation expense |
134.884 |
126.563 |
503.187 |
|
|
(f) Other expenses |
891.325 |
822.833 |
3171.276 |
|
|
Total expenses |
5808.101 |
5169.795 |
20675.548 |
|
3 |
Profit from
Operations before Other Income and finance costs (1-2) |
168.766 |
301.186 |
974.642 |
|
4 |
Other income |
24.508 |
4.666 |
37.543 |
|
5 |
Profit before
finance costs (3+4) |
193.274 |
305.852 |
1012.185 |
|
6 |
Finance costs |
111.208 |
116.387 |
444.305 |
|
7 |
Profit after
finance costs and before tax (5-6) |
82.066 |
189.465 |
567.880 |
|
8 |
Tax expenses / (credit) |
21.249 |
39.204 |
121.191 |
|
9 |
Net Profit after
tax (7-8) |
60.817 |
150.261 |
446.689 |
|
10 |
Paid-up Equity share capital (Face Value of Re. 1/-per share) |
107.725 |
107.725 |
107.725 |
|
11 |
Reserve excluding Revaluation Reserves |
|
|
11878.87 |
|
12 |
Earnings per share
(of Re.1/- each) (Not annualised): |
|
|
|
|
|
(a) Basic |
0.56 |
1.40 |
4.15 |
|
|
(b) Diluted |
0.56 |
1.40 |
4.15 |
PART II
|
S.No. |
Particulars |
Quarter ended March 31,2013 |
Quarter ended December 31,2012 |
Year ended March 31,2013 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
- Number of shares |
27624618 |
27624618 |
27624618 |
|
|
- Percentage of shareholding |
25.65% |
25.65% |
25.65% |
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of shares |
33687500 |
42087500 |
33687500 |
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
42.07% |
52.57% |
42.07% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
31.28% |
39.08% |
31.28% |
|
|
b) Non- encumbered |
|
|
|
|
|
- Number of shares |
46379530 |
37979530 |
46379530 |
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
57.93% |
47.43% |
57.93% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
43.07% |
35.27% |
43.07% |
STATEMENT OF ASSETS
AND LIABILITIES
(Rs. In Millions)
|
Particulars |
As at March 31,2013 |
|
EQUITY AND
LIABILITIES |
|
|
SHAREHOLDERS' FUNDS |
|
|
Share capital |
107.725 |
|
Reserves and surplus |
1187.887 |
|
|
1295.612 |
|
NON-CURRENT
LIABILITIES |
|
|
Long - term borrowings |
2035.920 |
|
Deferred tax liabilities, net |
271.608 |
|
Other long term Liabilities |
5.685 |
|
Long - term provisions |
- |
|
|
2313.213 |
|
CURRENT LIABILITIES |
|
|
Short -term borrowings |
1281.224 |
|
Trade payables |
829.471 |
|
Other current liabilities |
1084.102 |
|
Short-term provisions |
67.383 |
|
|
3262.180 |
|
TOTAL - EQUITY AND
LIABILITIES |
6871.005 |
|
ASSETS |
|
|
NON-CURRENT ASSETS |
|
|
Fixed assets |
4365.432 |
|
Non-current Investments |
6.798 |
|
Long-term loans and advances |
220.378 |
|
Other non-current assets |
31.337 |
|
|
4623.945 |
|
CURRENT ASSETS |
|
|
Inventories |
1106.950 |
|
Trade receivables |
427.758 |
|
Cash and bank balances |
302.263 |
|
Short-term loans and advances |
341.809 |
|
Other current assets |
68.280 |
|
|
2247.060 |
|
TOTAL-ASSETS |
6871.005 |
2 The above audited financial results were reviewed by the audit committee and approved by the Board of Directors at their meeting held on May 30, 2013.
3 The auditors of the Company in their limited review report for the quarter ended December 31, 2012 and in their audit report for the year ended March 31, 2013 have qualified certain income tax related matters which are under dispute. Management's estimate of the financial impact thereof is approximately Rs.150. Based on legal advice, Management believes that no incremental provision is required for such income tax related matters.
4 The Company's operations predominantly relate to manufacture and sale of milk, milk products and ice creams. Accordingly, the Company has disclosed its operations under single segment.
5 The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year up to March 31, 2013 and the unaudited published year-to-date figures up to December 31, 2012, being the date of the end of the third quarter of the financial year which were subjected to limited review.
6 The Board of Directors have declared an interim dividend of Rs. 0.40 per equity share (face value of Rs. 1 per share).
7 On 1st May, 2013, there was a fire in the Company's plant at Salem, Tamil Nadu. There was no loss of life or human injury. The Company has estimated a loss of Rs.500 approximately and is confident of recovering the loss incurred from the insurance Company.
8 Previous periods' / year's figures have been reclassified/regrouped wherever necessary to conform to current year's presentation.
FIXED ASSETS
Tangible Assets
· Land
· Buildings
· Plant and Machinery
· Electrical Fittings
· Furniture and Fittings
· Office Equipment
· Vehicles
· Lease Hold Improvements
Intangible Assets
· 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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: 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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
48 |
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.