MIRA INFORM REPORT

 

 

 

Report Date :

07.03.2013

 

IDENTIFICATION DETAILS

 

Name :

BOMBAY BURMAH TRADING CORPORATION LIMITED

 

 

Registered Office :

9, Wallace Street, Fort, Mumbai – 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

09.04.1863

 

 

Com. Reg. No.:

11-000002

 

 

Capital Investment / Paid-up Capital :

Rs. 139.627 Millions

 

 

CIN No.:

[Company Identification No.]

L99999MH1863PLC000002

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject cover a wide range such as plantations of tea, coffee, cardamon, cocoa, rubber and palm oil; manufacture of starch from tapioca; manufacture of asbestos cement and concrete products; extraction of timber and boat building and repairs.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 10000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a leading concern of Group Company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

A1+ [Short Term Bank facilities]

Rating Explanation

Very strong degree of safety. It carry lowest 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 :

9, Wallace Street, Fort, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22- 22079351 - 54

Fax No.:

91-22- 22071612

E-Mail :

bbtcl@bom2.vsnl.net.in

Website :

http://www.bbtcl.com 

 

 

SOUTH INDIA ESTATES

Mudis Group Office

Mudis P.O. 642117, Coimbatore District, Tamilnadu, India

Tel. No.:

91-4253-234244 / 234245

Fax No.:

91-4253-234231

E-Mail :

bbtmudis@dataone.in

 

 

Marketing Office

Subramaniam Road, Wellingdon Island,  Kochi - 682003 India

Tel. No.:

91-484-2666645/ 2666251

Fax No.:

91-484-2668321

E-Mail :

ecotea@vsnl.com

ctc@vsnl.com

 

 

WEIGHING PRODUCTS DIVISION

 

 

Factory :

Plot No. 304, New G.I.D.C., Valsad - 396034, Gundlav, Gujarat, India

Tel. No.:

91-02632-36364/ 36684

Fax No.:

91-02632-36684

E-Mail :

afcoset@quest4india.com

 

 

Marketing Office :

Plot No. 2, Kanjur Village Road, Kanjur Marg (East), Mumbai – 400042, Maharashtra, India

Tel. No.:

91-22-25785651/ 25782852/ 25787529

Fax No.:

91-22-25784389

E-Mail :

afoset@vsnl.com

 

 

HEALTH CARE DIVISION

Factory 1 :

DPI – PLot No. 2, Kanjur Village Road, Kanjur Marg (East), Mumbai – 400042, Maharashtra, India

Tel. No.:

91-22-25785651/ 25782303

Fax No.:

91-22-25784389

E-Mail :

inor@bom3.vsnl.net.in

 

 

Factory 2 :

MMT – C-1B/ 909, New GIDC, Gundlav, Valsad - 396035, Gujarat, India

 

Tel. No.:

91-02632-36519

Fax No.:

91-02632-36684

E-Mail :

afcoset@quest4india.com

 

 

Dental Products :

Sector 5, II E, Pant Nagar Industrial Estate, Rudrapur, Udhamsingh Nagar - 263153, Uttarakhand, India

 

 

Marketing Office :

Plot No.2, Kanjur Village Road, Kanjur Marg (East), Mumbai – 400042, Maharashtra, India

Tel. No.:

91-22-25785651/ 25782852/ 25787529

Fax No.:

91-22-25784389

E-Mail :

inor@bom3.vsnl.net.in  

 

 

Tea and Coffee Estates :

Ř       Mudis Group of Estates, Mudis P.O.- 642 117, Coimbatore District, Tamilnadu, India

 

Ř       Singampatti Group of Estates — Manjolai P.O.-627 420, Tirunelveli District, Tamilnadu, India

 

Ř       Dunsandle Estate — Dunsandle P.O., Ootacamund - 643005, Nilgiri District, Tamilnadu, India

 

Ř       Elk Hill Group of Estates — Post Box No. 12, Sidapur, P. & T.O - 571253, South Coorg, Karnataka, India

 

Ř       Usambara Group, Marvera and Herkulu Estates, P.O. Box 22, Soni, Tanzania

 

 

Overseas Office :

Suite 628, 6th Floor, Pan Global Plaza, Jalan Wong Ah Fook 80000, Johor Bahru, Malaysia

 

 

DIRECTORS

 

AS ON 31.03.2012

 

Name :

Nusli N. Wadia

Designation :

Esq., Chairman

 

 

Name :

A. K. Hirjee

Designation :

Esq., Vice Chairman

 

 

Name :

A. Panjwani

Designation :

Esq., Managing Director

 

 

Name :

Ness Wadia

Designation :

Esq., Managing Director

 

 

Name :

Keshub Mahindra

Designation :

Esq. Director

 

 

Name :

M. L. Apte

Designation :

Esq. Director

 

 

Name :

D. E. Udwadia

Designation :

Esq. Director

 

 

Name :

P. K. Cassels

Designation :

Esq. Director

 

 

Name :

B. N. B. Tao

Designation :

Esq. Director

 

 

Name :

JEH Wadia

Designation :

Esq. Director

 

 

Name :

Mrs. Vinita Bali

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Nitin H Datanwala

Designation :

Vice President Corporate & Company Secretray

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2012

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3400

0.02

Bodies Corporate

7965448

57.08

Sub Total

7968848

57.11

(2) Foreign

 

 

Individuals (Non-Residents Individuals / Foreign Individuals)

1228301

8.80

Sub Total

1228301

8.80

Total shareholding of Promoter and Promoter Group (A)

9197149

65.91

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

229798

1.65

Financial Institutions / Banks

18579

0.13

Insurance Companies

135080

0.97

Foreign Institutional Investors

25736

0.18

Sub Total

409193

2.93

(2) Non-Institutions

 

 

Bodies Corporate

361169

2.59

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

2440253

17.49

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

288081

2.06

Any Others (Specify)

1258536

9.02

Trusts

10250

0.07

Non Resident Indians

102126

0.73

          Overseas Corporate Bank

1132140

8.11

           Foreign Banks

20

0.00

           Foreign Nationals

14000

0.10

Sub Total

4348038

31.16

Total Public shareholding (B)

4757231

34.09

Total (A)+(B)

13954380

100.00

© Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

Total (A)+(B)+(C)

13954380

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject cover a wide range such as plantations of tea, coffee, cardamon, cocoa, rubber and palm oil; manufacture of starch from tapioca; manufacture of asbestos cement and concrete products; extraction of timber and boat building and repairs.

 

 

Products :

ITC Code

Product Descriptions

84639002

Springs

09024000

Tea

48071000

Laminates

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Tea/Green Leaf

Kgs.

Not Applicable

15,810,320

Coffee

M. Tonnes

Not Applicable

Not Applicable

Other Plantation Products

 

Not Applicable

Not Applicable

(i) Pepper

Kgs.

Not Applicable

Not Applicable

(ii) Cardamom, Coffee Husk, Arecanuts, etc.

Kgs.

Not Applicable

Not Applicable

(iii) Timber

C. Feet

Not Applicable

Not Applicable

Phenolic Laminates (Industrial

Laminates including Copperclad

Laminates and Surfacing Laminates)

M.Tonnes

Not Applicable

12,400

Precision Springs

Kgs.

Not Applicable

10,968,000

Weighing Products

Nos.

Not Applicable

2,000

Consumable Dental Goods

M.Tonnes/Litres

Not Applicable

Not Applicable

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Ř       HDFC Bank Limited

Ř       AXIS Bank Limited

 

 

Facilities :

Secured Loans

31.03.2012

 

31.03.2011

 

(Rs. In Millions)

Term loans

1283.828

1445.033

Other loans and advances

6.276

8.493

From Banks

94.244

415.457

Total

1384.348

1868.983

 

(a) Rupee agri loan from Axis Bank of Rs. 1000.000 Millions: Current outstanding Rs. 900.000 Millions is repayable in 3 annual installments from 1st April, 2013 to 1st April, 2015 of Rs. 120.000 Millions, Rs. 150.000 Millions and Rs. 630.000 Millions respectively. The loan is secured by exclusive charge over Elkhill Estate. The rate of interest on the loan is ranging from 7.5% to 10%.

 

(b) Rupee loan from HDFC Bank of Rs. 200.000 Millions: Current outstanding Rs. 150.000 Millions is repayable in 2 equal annual installments of Rs. 50.000 Millions from 1st April, 2013 to 31st March, 2015. The loan is to be secured by extension of charge of an Equitable Mortgage by deposit of title deeds of Mudis and Singampatti estates together with buildings and structures thereon in favour of HDFC Bank. The rate of interest on the loan is ranging from 7.5% to 10%.

 

(c) FCNR loan from HDFC Bank of USD 15.982 Million : Current Outstanding Rs. 322.644 Millions (USD 6.307 Million) is repayable in 2 annual installments of Rs. 116.790 Millions (USD 2.283 Million) and Rs. 205.854 Millions (USD 4.024 Million) respectively from 1st April, 2013 to 31st March, 2015. The loan is secured by way of an Equitable Mortgage by deposit of title deeds of Mudis and Singampatti estates together with buildings and structures thereon in favour of HDFC Bank. The rate of interest on the loan is 12 months LIBOR + spread ranging from 2.75% to 4%.

 

(d) FCNR loan from HDFC Bank of USD 5.08 Million: Current Outstanding Rs. 129.936 Millions (USD 2.54 Million), is repayable in 4 semi-annual installments of Rs. 25.987 Millions (USD 0.508 Million), Rs. 25.987 Millions (USD 0.508 Million), Rs. 38.981 Millions (USD 0.762 Million), Rs. 38.981 Millions (USD 0.762 Million) respectively from 1st April, 2013 to 31st March, 2015. The loan is secured by way of an Equitable Mortgage by deposit of title deeds of Mudis and Singampatti estates together with buildings and structures thereon in favour of HDFC Bank. The rate of interest on the loan is 12 months LIBOR + spread ranging from 2.75% to 4%.

 

(e) Loan against vehicles are secured by lien on vehicles purchased.

 

Unsecured Loans

31.03.2012

 

31.03.2011

 

(Rs. In Millions)

From Others – Intercorporate deposits

0.500

0.500

Total

0.500

0.500

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

BSR and Company

Chartered Accountants

Address :

Lodha Excelus, 1st floor, Apollo Mills Compound, N. M. Joshi Marg, Mahalakshmi, Mumbai – 400011, Maharashtra, India

 

 

Solicitors :

 

Name :

Crawford Bayley and Company

Chartered Accountants

Address :

State Bank Building, 4th Floor, Hutatma Chowk, Fountain, Mumbai – 400001, Maharashtra, India

 

 

Solicitors :

 

Name :

Udwadia Udeshi and Argus Partners

Chartered Accountants

Address :

Elphinstone House, 1st Floor, 17, Murzban Road, Fort, Mumbai – 400001, Maharashtra, India

 

 

Subsidiaries :

Ř       Afco Industrial and Chemicals Limited

Ř       DPI Products and Services Limited

Ř       Sea Wind Investments and Trading Company Limited

Ř       PT Indo Java Rubber Planting Company till 17th March, 2011

Ř       Leila Lands Senderian Berhad

Ř       Electromags Automotive Products Private Limited

 

 

Sub-Subsidiaries :

(a) Subsidiary of DPI Products and Services Limited:

Ř       Subham Viniyog Private Limited

 

(b) Subsidiaries of Leila Lands Senderian Berhad:

Ř       Naira Holdings Limited

Ř       Island Horti-Tech Holdings Pte. Limited

Ř       Leila Lands Limited

Ř       Restpoint Investments Limited

 

(c) Subsidiaries of Island Horti-Tech Holdings Pte. Limited:

Ř       Island Landscape & Nursery Pte. Limited

Ř       ILN Investments Pte. Limited

Ř       Innovative Organics Inc.

 

(d) Subsidiaries of Leila Lands Limited:

Ř       ABI Holding Limited

Ř       Britannia Brands Limited

Ř       Associated Biscuits International Limited

Ř       Dowbiggin Enterprises Pte. Limited

Ř       Nacupa Enterprises Pte. Limited

Ř       Spargo Enterprises Pte. Limited

Ř       Valletort Enterprises Pte. Limited

Ř       Bannatyne Enterprises Pte. Limited

Ř       Britannia Industries Limited

 

(e) Subsidiaries of Britannia Industries Limited:

Ř       Boribunder Finance and Investments Private Limited

Ř       Flora Investments Company Private Limited

Ř       Gilt Edge Finance and Investments Private Limited

Ř       Ganges Valley Foods Private Limited

Ř       International Bakery Products Limited

Ř       J. B. Mangharam Foods Private Limited

Ř       Manna Foods Private Limited

Ř       Sunrise Biscuit Company Private Limited

Ř       Britannia and Associates (Mauritius) Private Limited

Ř       Britannia and Associates (Dubai) Private Company Limited

Ř       Al Sallan Food Industries Company SAOG

Ř       Strategic Food International Company LLC

Ř       Strategic Brands Holding Company Limited

Ř       Britannia Lanka Private Limited

Ř       Daily Bread Gourmet Foods (India) Private Limited

Ř       Britannia Dairy Private Limited (formerly known as Britannia New Zealand Foods Private Limited)

Ř       Britannia New Zealand Holdings Private Limited

Ř       Britannia Employees General Welfare Association Private Limited

Ř       Britannia Employees Medical Welfare Association Private Limited

Ř       Britannia Employees Educational Welfare Association Private Limited

 

(f) Subsidiary of Island Landscape and Nursery Pte. Limited:

Ř       Peninsula Landscape and Nursery Sdn. Bhd.

 

(g) Subsidiary of ILN Investments Pte. Limited:

Ř       Saikjaya Holdings Sdn. Bhd.

 

(h) Subsidiaries of Restpoint Investments Limited:

Ř       Restpoint International Technology Corporation

Ř       Island Telesystems Pte. Limited

 

(i) Subsidiary of Innovative Organics Inc.:

Ř       Granum Inc.

 

 

Associates :

Ř       Lotus Viniyog Private Limited

Ř       Inor Medical Products Limited

Ř       Medical Microtechnology Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,50,00,000

Equity Shares

Rs. 10/- each

Rs. 150.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,39,54,380

Equity Shares

Rs.10/- each

Rs. 139.544 Millions

 

Forfeited shares amount paid-up

 

Rs. 0.083 Million

 

Total

 

Rs. 139.627 Millions

 

 

(a) The Corporation has only one class of equity share having par value of ` 10/- per share.

 

(b) Each holder of equity shares is entitled to one vote per share.

 

(c) The Corporation declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

(d) During the year ended 31st March, 2012, the amount of per share dividend recognised as distribution to equity shareholders was ` 7/- (Previous Year - ` 7). The total dividend appropriation for the year ended 31st March, 2012 amounted to Rs. 113.527 Millions (Previous Year Rs. 113.527 Millions) including corporate dividend tax of Rs. 15.846 Millions (Previous Year Rs. 15.846 Millions).

 

(e) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the 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.

 

(f) Reconciliation of the shares outstanding at the beginning and at the end of reporting period.

 

Equity shares

No. of shares

Amount in millions

At the beginning of the period

1,39,54,380

139.544

Add: Issued during the period

--

--

Outstanding at the end of the period

1,39,54,380

139.544

 

(g) Details of shares held by each shareholder holding more than 5% shares:

 

 

No. of shares

% holding

1 Archway Investment Company Limited

26,07,720

18.69

2 N. W. Exports Limited

10,75,455

7.71

3 Damascus Investment and Trading Company Limited

8,88,000

6.36

4 Naperol Investments Limited

8,41,680

6.03

5 Mr. Nusli N. Wadia

12,28,301

8.80

6 Wallace Bros. Trading and Industrial Limited, U.K.

11,32,140

8.11

 

77,73,296

55.70

 

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

139.627

139.627

139.627

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2557.297

1298.360

647.930

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2696.924

1437.987

787.557

LOAN FUNDS

 

 

 

1] Secured Loans

1384.348

1868.983

2437.198

2] Unsecured Loans

0.500

0.500

301.329

TOTAL BORROWING

1384.848

1869.483

2738.527

DEFERRED TAX LIABILITIES

0.000

16.848

28.928

 

 

 

 

TOTAL

4081.772

3324.318

3555.012

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

592.200

1086.815

995.647

Capital work-in-progress

4.553

23.558

36.860

 

 

 

 

INVESTMENT

1118.344

1067.706

1067.322

Foreign Currency Monetary Item Translation Difference Account

0.000

0.000

12.745

DEFERREX TAX ASSETS

5.058

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
611.230

961.545

859.241

 

Sundry Debtors
138.219

537.629

560.299

 

Cash & Bank Balances
969.179

130.241

146.403

 

Other Current Assets
35.652

33.763

3.126

 

Loans & Advances
1242.472

1081.756

491.997

Total Current Assets
2996.752

2744.934

2061.066

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
86.176

98.509

486.330

 

Other Current Liabilities
385.313

1299.971

47.049

 

Provisions
163.646

200.215

85.249

Total Current Liabilities
635.135

1598.695

618.628

Net Current Assets
2361.617

1146.239

1442.438

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

4081.772

3324.318

3555.012

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

2603.017

3189.102

2938.816

 

 

Other Income

194.741

877.755

194.290

 

 

TOTAL                                    

2797.758

4066.857

3133.106

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

969.531

1275.646

1211.181

 

 

Purchases of stock-in-trade

127.287

107.290

91.392

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(40.507)

(82.269)

(143.225)

 

 

Employee benefits expense

548.145

531.597

513.536

 

 

Other expenses

816.728

934.236

971.861

 

 

Cost relating to Real estate under development

1.290

1.292

2.002

 

 

TOTAL                                    

2422.474

2767.792

2646.747

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

375.284

1299.065

486.359

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

185.232

187.767

198.314

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

190.052

1111.298

288.045

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

71.556

88.559

80.578

 

 

 

 

 

 

PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX

118.496

1022.739

207.467

 

 

 

 

 

 

PROFIT ON SALE OF UNDERTAKING

1647.058

0.000

0.000

 

 

 

 

 

 

LOSS ON EXCHANGE (NET)/ DERIVATIVE LOSS

0.000

62.246

84.837

 

 

 

 

 

 

PROFIT BEFORE TAX              

1765.554

960.493

122.630

 

 

 

 

 

Less

TAX                                                                 

400.657

195.073

(13.925)

 

 

 

 

 

 

PROFIT AFTER TAX                            

1364.897

765.420

136.555

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

637.496

65.603

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

140.000

80.000

14.000

 

 

Proposed Dividend

97.681

97.681

48.840

 

 

Corporate Dividend Tax

15.846

15.846

8.112

 

BALANCE CARRIED TO THE B/S

1748.866

637.496

65.603

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Tea, Coffee & Others on F.O.B. basis

390.478

349.332

291.015

 

 

Export of laminates on F.O.B. basis

7.609

32.538

21.136

 

 

Export of Precision Springs on F.O.B. basis

17.860

24.850

14.494

 

 

Export of Dental Products

4.442

1.138

4.638

 

 

Dividend

11.327

47.678

126.950

 

TOTAL EARNINGS

431.716

455.536

458.233

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

249.573

319.785

259.554

 

 

Components and Spare Parts

2.771

2.318

4.150

 

 

Capital Goods

5.898

59.599

0.129

 

 

Traded Goods – Dental

3.217

5.932

7.248

 

TOTAL IMPORTS

261.459

387.634

271.081

 

 

 

 

 

 

Earnings Per Share (Rs.)

92.79

54.85

9.79

 

 

97.81

54.85

9.79

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

 

1st Quarter

 Sales Turnover

415.780

 Total Expenditure

386.280

 PBIDT (Excl OI)

29.500

 Other Income

21.850

 Operating Profit

51.350

 Interest

30.330

 Exceptional Items

0.000

 PBDT

21.020

 Depreciation

10.920

 Profit Before Tax

10.110

 Tax

4.600

Provision and Contingencies

0.000

 Reported PAT

5.500

Extraordinary Items       

0.000

Prior Period Expenses

0.000

Other Adjustments

0.000

Net Profit

5.500

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

48.79

18.82

4.36

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

67.83

30.12

4.17

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

49.19

25.07

4.01

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.65

0.67

0.16

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.75

2.41

4.26

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.72

1.72

3.33

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

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

 

 

OPERATIONS:

 

The Corporation has, during the year, significantly recast its business portfolios. As part of the planned restructuring, Sunmica Division engaged in Laminate business was sold as a going concern with effect from close of working hours on 31st October, 2011 for a lumpsum consideration of Rs.1003.000 Millions. BCL Springs Division engaged in manufacturing Springs was sold as a going concern with effect from close of working hours on 30th November, 2011 for a lumpsum consideration of Rs. 1805.000 Millions.

 

The results presented include the profit of Rs. 1647.100 Millions arising out of the sale of these two undertakings.

 

The Profit before tax from operations in the current year is Rs. 118.500 Millions. However, this is not comparable with that of the previous year due to the mid-term discontinuation of two businesses viz. BCL Springs and Sunmica. With regard to the continuing businesses viz. Plantation, there was a decline in the performance of tea due to erratic weather conditions which impacted production and sales volume. The Coffee output was also impacted by adverse weather conditions but with favourable prices and increased volume due to production from outsourced beans, profits were significantly better than the previous year. Pepper production and its pricing have both shown improvement.

 

The Healthcare Division performed satisfactorily. Successful launch of new Dental products helped to improve both turnover and profits.

 

 

DIVISIONWISE PERFORMANCE:

 

(A) SOUTH INDIA ESTATES:

 

(I) TEA –

 

The production for the year was lower at 84.65 Lakh kgs. as against 92.37 Lakh kgs. for 2010-11. As a result, sales were Rs. 751.500 Millions compared to Rs. 811.200 Millions for the previous year. The selling price per kg. remained at the same level as previous year.

 

(II) COFFEE –

 

The production for the year including production from outsourced beans was at 1,640 Tonnes which is marginally lower than the 1,712 Tonnes of 2010-11. Sales were at Rs. 243.700 Millions as against Rs. 183.600 Millions in the previous year due to higher selling price per tonne and higher sale volume at 1,683 Tonnes compared to 1,385 Tonnes in 2010-11. Coffee produced by the Corporation continues to enjoy a premium position in Europe and US market.

 

(b) TANZANIAN ESTATES:

 

The crop for the year was 9.22 Lakh kgs. as against 9.21 Lakh kgs. for 2010-11. Sales were at Rs. 51.900 Millions as against Rs. 49.200 Millions in previous year. Results were however impacted due to substantial increase in wage costs.

 

(c) HEALTHCARE DIVISION:

 

The turnover for the year was Rs. 154.300 Millions as against Rs. 130.600 Millions for 2010-11. Although the turnover from traded products declined due to discontinuation of some of the products, sale of Alloys made up for decline. Further, successful launch of new dental products helped to improve the turnover and profitability of the Division as compared to previous year.

 

(d) WEIGHING PRODUCTS DIVISION:

 

Sale of balances for the year was Rs. 23.000 Millions as against Rs. 21.100 Millions for 2010-11. The Division continued to operate profitably.

 

(e) REAL ESTATE DEVELOPMENT:

 

There was no progress in development of the properties at Kanjur Marg in Mumbai and at Coimbatore under Real Estate Division.

 

RESTRUCTURING OF BUSINESS:

 

The implementation of the restructuring plan reported last year began with the divestment of Sunmica Laminates and BCL Springs Divisions, which has resulted in significant debt reduction and corresponding strengthening of the Corporation’s Balance Sheet. The Corporation is now better placed to pursue growth options in value added businesses.

 

The other major action initiated by the Corporation, i.e. the amalgamation of its whollyowned subsidiary Electromags Automotive Products Private Limited (EAPL) is in process. The petition filed before the Hon’ble High Court of Judicature at Chennai for the amalgamation w.e.f. 1/4/2011 has been part heard. Pending disposal of the said petition, effects of amalgamation have not been given in the results of the Corporation for the year under review. The results of EAPL have however been included as a part of the Consolidated Accounts.

 

WADIA BRAND EQUITY AND BUSINESS PROMOTION AND SHARED SERVICES AGREEMENT:

 

The Wadia Group has several companies in diverse sectors like the airlines, food, textiles, chemicals etc and employs various subject matter experts in areas such as Legal, Finance, Information Technology, Treasury, Taxation, Human Resources, Procurement, Risk Management etc. With a view to maximizing the efficiency and effectiveness of these specialized resources, a formal structure has been created under Nowrosjee Wadia and Sons Limited (NWS) to serve the common interests of all the Group Companies. The combined skills, knowledge and expertise of this structure will benefit all the group companies availing of this arrangement.

 

In order to formalize this structure of common services and avail of the standing of the Wadia Group Brand, the board of the Corporation, during the year, approved an agreement between NWS and the Corporation to enter into the ‘WADIA Brand Equity and Business Promotion and Shared Services Scheme.’

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

BUSINESS SEGMENT

 

(A) TEA:

 

INDUSTRY STRUCTURE AND DEVELOPMENTS:

 

Indian crop was higher by 24.4 million kgs. in Calendar Year ’11, with crops from Assam increasing by 28.5 million kgs. South Indian crop was marginally lower at 240.9 million kgs.; a decline of 2.5 million kgs. as compared to the previous year. Kerala recorded an increase of 1.6 million kgs. during the year on account of revival of some sick plantations in the state. All other planting regions showed a declining trend in crop with Tamilnadu and West Bengal being lower by 3.5 and 3.4 million kgs. respectively.

 

The higher Indian Crop was offset by decline in other Tea producing regions resulting in the Global Tea crop being lower by 18.4 million in Calendar Year ’11. The crops in Kenya, Sri Lankan & Indonesia were lower by 21.2 million kgs., 3.1 million kgs. and 10.7 million kgs. respectively. Indian exports in Calendar Year ’11 were lower by 6.6 million kgs. At 186.7 million kgs., a decline of 3.4%. South Indian exports were even lower at 83.5 million kgs. as against 90.8 million kgs. recorded in the previous year; a decline of 8%. North Indian Exports averaged Rs. 19.36/ kg. higher realisations than last year. However South Indian realizations increased by ` 2.95/kg. only. This was primarily due to lesser off-take of South Indian teas owing to political conditions in the Middle East and North African regions, the traditional markets for South Indian Teas. Imports in Calendar Year ’11 (upto Nov. ’11) were lower by 1.99 million kgs. at 16.35 million kgs., a decline of 10.9%. The average price of imports stood at Rs. 94.64/kg. as against ` 90.55/kg. during the previous year. Imports of tea from Vietnam declined whilst larger quantities came in from Kenya and Iran during the year. Internal consumption was approximately 852 million kgs. In Calendar Year ’11.

 

Larger availability of teas from Assam and the recent increase in packet prices tend to polarize the market, with domestic market supporting well made teas. Major packers operated strongly on quality lines. The price concertina between good liquoring teas and the plainer verities widened with large quantities of the plainer types failing to get buyer support.

 

OUTLOOK:

 

Lower inventories in the domestic market, coupled with higher sales of packaged teas during the coming year, will increase the demand for Good liquoring teas. Political conditions in major tea drinking countries in the Middle East and northern Africa can put considerable pressure on Indian exports, particularly from South India, though price competitiveness could improve because of a weaker Rupee. Ocean Freights are expected to be weak and this could help in making Exports more competitive. The ongoing quality upgradation program of the Corporation will help in tapping the quality sensitive markets ensuring better returns.

 

PERFORMANCE HIGHLIGHTS:

 

Erratic weather with long spells of rain lead to lower crops. Their production in FY ’12 was lower by 8.8% as compared to FY ’11. Their teas averaged ` 0.87 lower per kg. whilst the prices at the South Indian Auctions declined by ` 1.41/kg. Demand for Organic Teas showed a decline owing to recession in Europe resulting in weakening of demand.

 

OPPORTUNITIES:

 

The Corporation has worked closely with major Blenders in UK & Europe to develop unique blends, consolidating its position in their blends and improving returns. The Corporation’s superior CTC’s have found acceptance in the quality sensitive markets in the west and south of India. In the domestic market, the Corporation as a pioneer of Organic Tea, will be well placed to derive benefit from increased health awareness about Organic Tea.

 

THREATS:

 

Overall pressures on Indian Tea exports due to political uncertainties in major Tea drinking countries coupled with higher shipping costs could lead to increase in inventories. Higher costs of inputs with global increase in crude oil prices alongwith inflationary pressures could affect margins. Recession in Europe could put pressure on their Organic Tea exports.

 

SEGMENT WISE / PRODUCT WISE PERFORMANCE:

 

Exports: The overall export quantities of teas increased by 8.95% whilst price realization was lower by 5.50%; Average of South Indian exports, in the first 10 months of FY ’12, was higher by 3.0%. Organic quantity exported was lower by 19.3% whilst price average was lower by 5.9%. Non-Organic sales were higher by 12.8% in volume and 0.1% on average prices respectively. Tea exports increased the Foreign exchange earnings of the Corporation by 2.95%.

 

Domestic Sales: Lower crops resulted in lower quantities available for sale within the country and volumes declined by 17.7%. However, price realization was higher by 4.3%. The sales through their Depots reduced by 24.6% by volume and increased by 5.3% on average price realised. Quantity sold through auctions reduced by 9.2% and the price averages were lower by 1.3%. The South Indian auction averages during the period were higher by 2.4%. The Corporation’s Tea production declined by 8.4% and consequently the overall tea sales were lower by 6.6% on volumes at an average pric realization that was 0.87% lower.

 

(B) COFFEE:

 

INDUSTRY STRUCTURE AND DEVELOPMENTS:

 

Crop year 2011/12 is under way in most exporting countries. In Brazil, Indonesia and a few other producing countries, crop year 2012/13 will commence in the very near future.

 

On the basis of the latest information received from Member countries, total production in crop year 2011/12 is estimated at around 132.4 million bags compared with 134.2 million bags in 2010/11, a fall of 1.3%. Adverse weather conditions during crop year 2011/12, would have negative impacts on production and post-harvest activities, in many exporting countries, particularly in Central America, Colombia and Indonesia.

 

Speculation on estimated production for crop year 2011/12 continues to put pressure on coffee prices. Preliminary information on world consumption in Calendar Year 2011 indicates that it has remained resilient despite the economic turbulence seen in many importing countries.

 

On the basis of information currently available, world consumption in Calendar Year 2011 was provisionally estimated at 136.5 million bags compared with 135 million bags in 2010.

 

Their production for 2011-12 is 26,483 bags consisting of 4,284 bags of Arabica and 22,199 bags of Robusta.

 

OUTLOOK:

 

Due to anticipated increased crops of Arabica in Brazil, current year’s prices are expected to be 30% lower than last year’s record high. However, stronger dollar against Rupee is expected to compensate about 10% of this shortfall. Indian Washed Robustas continue to be the preferred choice of roasters specializing in espresso in Europe and no real competition from other countries is noticed in this niche market.

 

Shortage of Washed Robustas wordwide and its lower crop in India is making Washed Robusta a premium commodity which is expected to yield higher price realization in the coming year.

 

Differential on Indian washed Robusta AB are at +USD 900/Tonne on terminals as compared to +USD 650/tonne last year. In comparison Vietnam Robustas are at a discount of USD 100/Tonne.

 

PERFORMANCE HIGHLIGHTS:

 

PRODUCTWISE PERFORMANCE:

 

Record prices were achieved for Arabicas and Robustas from our estates in the financial year due to better marketing and follow up in both the export and domestic market.

 

OPPORTUNITIES AND THREATS:

 

The quantity of quality washed Robustas, due to difficulty in processing, stringent effluent control norms and lack of skilled manpower, has seen a year on year reduction in the number of growers able to produce the same.

 

This provides us with an opportunity to increase quantities of outsourced fruit purchases and to increase their value added exports.

 

Increased processing capacities, mechanization, state-of-the-art effluent management and capitalizing on their market reputation with growers in the district will allow them to become a larger player in the speciality coffee business.

 

(C) HEALTH CARE DIVISION:

 

INDUSTRY STRUCTURE AND DEVELOPMENTS:

 

The total market for the Dental equipments and materials is estimated at around Rs. 3800.000 Millions annually. However, the market segment in which Dental Products Division is operating, is estimated at around Rs. 280.000 Millions. The increase in the number of private dental hospitals and clinics have boosted the demand for modern equipment, as they focus on higher income Indian consumers and foreign dental tourists, often providing complete packages including their stay and treatment facilities.

 

A number of foreign companies are investing in the Indian dental market and India is becoming a manufacturing hub supplying dental equipment and materials. Moreover, some Indian companies also produce some of such items under license from foreign manufacturers and run a parallel activity as trade dealers and importers.

 

PERFORMANCE HIGHLIGHTS:

 

Sale of the manufactured products such as alloys, polymers and impression materials registered a growth of 25% over previous year. Sale of traded materials was however lower by 22% in view of discontinuation of some lines in the trading business. Glass Ionomer Cement introduced during the year was well received.

 

OPPORTUNITIES:

 

Every year, there are around 5,000 to 6,000 fresh graduates entering the workforce with 256 dental colleges which is the largest in the world. Growth rates as forecasted by IDA for the dental market is estimated at 10% to

12% in the coming year.

 

THREATS:

 

A large number of foreign players as well as Indian manufacturers have entered the Dental market in the last three years with low price product portfolio and good quality products. This will increase the competition.

 

OUTLOOK:

 

Despite competition, new superior products and lower margins, the business is sustainable with the growing market size and the demand for new products.

 

 

UNAUDITED FINANCIAL RESULTS FOR QUARTER ENDED 30TH JUNE, 2012

(Rs. in millions)

Particular

Year to date from 1st April, 2012 to 30th June, 2012

 

(Unaudited)

Income from Operations

 

Net Sales/Income from Operations

386.441

Other Operating Income

29.334

Total Income from operations (net)

415.775

 

 

Expenses

 

(a) Cost of materials consumed

76.413

(b) Purchases of stock-in-trade

1.424

(c) Changes in Inventories of finished goods, work-in-progress and stock-in-trade

62.469

(d) Employees benefits expense

119.758

(e) Depreciation and amorisation expenses

10.921

(f) Other Expenses

126.220

Total Expenses

397.205

Profit from Operations before Other Income, Finance costs and Exceptional item

18.570

Other Income

21.851

Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item

40.421

Finance costs

30.323

Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item

10.098

Exceptional item

--

Profit/ Loss from Ordinary Activities before tax

10.098

Tax Expenses

4.600

Net Profit/ Loss from Ordinary Activities after tax

5.498

Profit/ (Loss) from Discontinued Operations before tax

--

Tax expense / (Credit)

--

Profit/ (Loss) from Discontinued Operations after tax

--

Net Profit/ Loss) from Ordinary Activities after tax

5.498

Extraordinary Items

--

Net Profit for the period

5.498

Paid- up Equity Share Capital (Face value of the share – Rs. 10)

139.544

 

 

SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars

Year to date from 1st April, 2012 to 30th June, 2012

 

Unaudited

1. Segment Revenue

 

a. Plantations

336.459

b. Building Products

--

c. Auto Ancillary

--

d. Investments

10.325

e. Healthcare

47.387

f. Others

21.604

Total

415.775

Less: Inter – segment revenue

--

Total income from operations (net)

415.775

 

 

2. Segment Results

 

a. Plantations

17.677

b. Building Products

--

c. Auto Ancillary

--

d. Investments

10.325

e. Healthcare

10.336

f. Others

16.301

Total

54.639

Less: Finance Costs

(30.323)

Other Un-allocable expenditure net

(36.069)

Un-allocable income

21.851

Total Profit Before Tax

10.098

 

 

3. Capital Employed

 

(Segment Assets – Segment Liabilities)

 

a. Plantations

894.194

b. Building Products

--

c. Auto Ancillary

--

d. Investments

2680.232

e. Healthcare

76.298

f. Others

223.207

g. Unallocated

(1171.409)

Total

2702.422

Less : Inter Segment Revenue

--

Total

2702.422

Notes:

 

1. The above results have been reviewed and recommended by the Audit Committee for approval and were approved by the Board of Directors at their Meeting held on 8th August, 2012.

 

2. Expenditure of Rs. 21.795 Millions (Previous period Rs. 17.245 Millions) incurred during the quarter at the Coffee estates has been carried forward and will be accounted against the current season's coffee crop from November, 2012.

 

3 The Corporation's wholly owned Subsidiary Electromags Automotive Products Private Limited (EAPL) has filed a petition before the Honourable High Court of Judicature at Chennai for its amalgamation with the Corporation w.e.f. 1st April, 2011 Pending disposal of the said petition, effect of amalgamation has not been given in the results of the Corporation for the period.

 

4 During the period ended 31st March, 2012 the Corporation paid remuneration to Mr. Ness Wadia (Managing Director) which is in excess of limits specified in relevant provisions of the Companies Act, 1956. Such higher remuneration has been approved by the Board of Directors and the remuneration committee. The Corporation has made an application to the Central Government for the approval of excess remuneration of Rs. 10.752 Millions paid to Mr. Ness Wadia, in excess of the limits prescribed by Schedule XIII of the Companies Act, 1956.The approval for excess remuneration paid to Mr. Ness Wadia is awaited. Without qualifying the report, attention was drawn to this matter by the auditors in the financials for the year ended 31st March, 2012.

 

5 In view of the divestment of Sunmica Division (Building Products Division) and Springs Division (Auto Ancillary Division) in year 2011-12, the figures for the quarter ended 30th June, 2012 are not strictly comparable with those of the preceding and corresponding quarter.

 

6 The figure of the preceding three months ended 31st March, 2012 are the balancing figures between audited figures in respect of the year ended 31st March, 2012 and the unaudited published year to date figures up to the third quarter of the relevant financial year.

 

7 Pursuant to the notification of Revised Schedule VI under the Companies Act, 1956 applicable for preparation and presentation of Financial Statements and the consequent amendment to the Listing Agreement, the figures for the quarter ended 30th June, 2011 have been reclassified / regrouped / amended wherever necessary.

 

8 The Statutory Auditors of the Corporation have carried out a Limited Review of the Results for the quarter ended 30th June, 2012.

 

 

SEGMENT INFORMATION

 

A. Primary Segment Reporting (by Business Segment)

 

Composition of Business Segments

The Corporation’s business segments based on product lines are as under:

 

Ř       Plantation Products

Segment produces/trades in Tea, Coffee, Timber, Cardamom and Pepper.

Ř       Building Products

Segment manufactures/trades in Phenolic Laminates (Industrial Laminates including Copper Clad Laminates and Surfacing Laminates).

Ř       Dental Products

Segment manufactures/trades in Health Care/Dental products.

Ř       Auto Ancillary Products

Segment manufactures Precision Springs for automobile and other industries.

Ř       Investments

Segment invests in various securities listed as well as unlisted mainly on a long term basis.

Ř       Others

Segment manufactures/trades in Analytical and Precision Balances and Weighing Scales and represents property development.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR

 

A. Sundry claims against the Corporation by employees and others not admitted (amount indeterminate).

In the opinion of the management, the outcome of these claims is likely to be immaterial.

 

B. Disputed demands of Central Excise Department not provided for in respect of:

(Rs. in millions)

 

31.03.2012

South India Consolidation (Plantations Division)

0.147

BCL Springs (Auto Ancillary Division)

--

Sunmica Division (Building Products Division)

--

 

C. Disputed wage demands pending with the Industrial Tribunal Rs. 23.225 Millions (Previous Year Rs. 23.225 Millions) and back wages relief granted by Labour Court Rs. 0.058 Million (Previous Year Rs. 0.058 Million) in respect of South India Branches.

 

D. Damages and interest on alleged unauthorized occupation of residential premised determined by the Estate Officer L.I.C. up to 31st March, 2012 and disputed by the Corporation Rs. 14.096 Millions (Previous Year Rs. 11.994 Millions).

 

E. PF Demand on allowance paid to workers Rs. 9.863 Millions (Previous Year Nil). The Corporation has created provision against contingencies described in items nos. B to E as an abundant precaution. (Refer Note No. 45).

 

F. Letter of Credit in respect of erstwhile BCL Springs Rs. 32.939 Millions (Previous Year ` Nil).

 

 

FIXED ASSETS:

 

Tangible Assets:

 

Ř       Freehold

Ř       Leasehold

Ř       Roads

Ř       Development—Plantations

Ř       Buildings

Ř       Plant and machinery

Ř       Motor vehicles and tractors

Ř       Office equipments

Ř       Furniture and fixtures

 

Intangible Assets:

Ř       Goodwill

Ř       Technical know – how

Ř       Computer software

 

 

WEBSITE DETAILS

 

PROFILE:

 

Subject is a 142 years old company. The company founded its fortunes on teak in the year 1863, as a public company, and everything that followed is history. The company is a leading concern of the Wadia Group, a reputed Indian business house with interests in plantations, foods, textiles, chemicals, electronics and light engineering, health care and real estate. The group’s turnover is around 750 million dollars. Bombay Burmah, Bombay Dyeing and Britannia are the mastheads of the Group.


Today, Subject is one of the few oldest companies of pre-independence era, still flourishing with its core values, ethics and above all, the competency in trade. It is the second oldest publicly quoted company with an annual turnover of 45 million dollars. After immense success in the business of teak, the company has diversified its interests in Tea, Coffee, Dental Products and Laminates.

 

History


Originally Subject was formed as a public company to encourage teak business by taking over the assets and rights in Burma (now Myanmar) of William Wallace. At that time, the company was catering to the domestic demands, then expanded trading in other Asian regions. It was not until 1913 that the Company turned its attention to tea plantations and invested in suitable areas in South India


Philosophy


The premier taste of tea at Subject has not changed a bit over more than a century, neither the confidence of customers in it, though it has taken to modern machineries, processes and growing procedures. The company believes in providing the best natural quality products and taking India to the global platform. To achieve this, it completely relies on product quality and trade competency. Of course, the present world recognizes the worth of Indian goods and services, and the country's capacity to meet the global standards.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 54.71

UK Pound

1

Rs. 82.79

Euro

1

Rs. 71.43

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

67

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.