MIRA
INFORM REPORT
|
Report Date : |
29.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
SAGAR CEMENTS LIMITED |
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Registered
Office : |
Plot No.111, Road No.10, Jubilee Hills, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
15.01.1981 |
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Com. Reg. No.: |
01-002887 |
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Capital
Investment / Paid-up Capital : |
Rs.173.880
millions |
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CIN No.: [Company Identification
No.] |
L26942AP1981PLC002887 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDS00253B |
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PAN No.: [Permanent Account No.] |
AACCS8680H |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Seller of Cement and Clinker. |
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No. of Employees
: |
430 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 10658000 |
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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. There appears
drastic dip in profitability of the company in 2013. However, liquidity
position of the company appears to be good. Trade relations
are reported to be fair. Business is active. Payments are reported to be
usually correct. The company can be
considered for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very
High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new
government will present the fiscal Budget.
The Supreme Court
has barred clinical trials for new drugs till a monitoring mechanism is put in place
to protect the lives of people on which the drugs are tested.
Mumbai has been
named the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million
Estimated average spending by companies across the globe including India, on
social media this year, according to a global study by information technology
major Tata Consultancy Services. This will rise to $
24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali
expenditure by 40 % and on average spend nearly 25 % of their monthly salary on
Diwali, according to a survey by Assochem.
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT
or tourism that are dependent on Visa clearances.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
July 02, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A3 |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
July 02, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Administrative Office : |
Plot No.111, Road No.10, Jubilee Hills, Hyderabad – 500 033, Andhra
Pradesh, India |
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Tel. No.: |
91-40-23351571/ 23356572 |
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Fax No.: |
91-40-23356573 |
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E-Mail : |
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Website : |
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Factory 1 : |
Mattampally, Via Huzurnagar,
Nalgonda District – 508 204, |
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Tel. No.: |
91-8683-247039 |
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Factory 2 : |
Pedaveedu, Via Huzurnagar,
Nalgonda District – 508 204, |
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Tel. No.: |
91-8683-216533/ 247333 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. O. Swaminatha Reddy |
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Designation : |
Chairman - Independent and Non Executive |
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Qualification : |
Charted account and Financial Management |
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Name : |
Mr. S. Veera Reddy |
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Designation : |
Managing Director |
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Date of Appointment : |
13.07.1991 |
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Name : |
Dr. S. Anand Reddy |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
10.06.1964 |
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Qualification : |
M.B.B.S. |
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Experience in
specific functional areas : |
Marketing and Project Management |
|
Date of Appointment : |
21.11.1992 |
|
Directorships in
other companies : |
·
Sagar Power Limited ·
Sagar Priya Housing
and Industrial Enterprises Limited ·
Panchavati Polyfibres Limited ·
Vicat Sagar Cement
Private Limited ·
Super Hydro Electric Private Limited ·
SPL Renewable Energy Private Limited |
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|
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|
Name : |
Mr. S. Sreekanth Reddy |
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Designation : |
Executive Director |
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Date of Birth/Age : |
27.08.1971 |
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Qualification : |
B.E. (I & P) and PG Diploma in cement technology |
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Experience in
specific functional areas : |
Cement Technologist |
|
Date of Appointment : |
26.06.2003 |
|
Directorships in
other companies : |
·
Sagarsoft (India) Limited
·
Sagar Power Limited ·
Sagar Priya Housing
and Industrial Enterprises Limited ·
Vicat Sagar Cement
Private Limited ·
Gulbarga Power Private
Limited ·
Super Hydro Electric Private Limited ·
SPL Renewable Energy Private Limited ·
Sree Venkateswara
Winery and Distillery Private Limited |
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Name : |
Mr. K. Thanu Pillai |
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Designation : |
Independent and Non Executive Director |
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Qualification : |
MBA and CAIIB |
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Name : |
Mr. Glibert Noel Claude Natta
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Designation : |
Non Executive Director |
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Date of Birth/Age : |
24.12.1948 |
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Qualification : |
ESSEC Paris |
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Experience in
specific functional areas : |
Banking and Finance |
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Directorships in
other companies : |
·
Sinai Cement CY, Egypt ·
Konya Cemento, Turkey ·
Bastas Baskent CiM, Turkey |
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Name : |
Mr. Werner C.R. Poot |
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Designation : |
Non Executive Director (up to 28.09.2012) |
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Name : |
Mr. John-Eric Fernand Pascal Cesar Bertrand |
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Designation : |
Non Executive Director (w.e.f.17.10.2012) |
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Name : |
Mr. K. Rajendra Prasad |
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Designation : |
APIDC Nominee Director |
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Name : |
Mr. G. Suneel Babu
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Designation : |
IDBI Nominee and Independent Director (w.e.f
29.04.2011) |
KEY EXECUTIVES
|
Name : |
Mr. R. Soundararajan |
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Designation : |
Company Secretary |
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Senior Management Team: |
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Corporate
Office: |
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Name : |
Mr. M.S.A. Narayana Rao |
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Designation : |
Group President |
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Name : |
Mr. M.V. Subba Rao
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Designation : |
Senior Vice President |
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Name : |
Mr. K. Ganesh |
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Designation : |
Vice President Project |
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Name : |
Mr. P.S. Prasad |
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Designation : |
Vice President - Marketing |
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Name : |
Mr. O. Anji Reddy |
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Designation : |
Chief General Manager (Electrical and Installations) |
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Name : |
Mr. K.V. Ramana |
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Designation : |
Chief General Manager - Mines |
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Name : |
Mr. K. Prasad |
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Designation : |
General Manager (Finance) |
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Sites: |
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Name : |
Mr. P. Vasudeva Reddy |
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Designation : |
Vice President (Works) |
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Name : |
Mr. M.V. Ramana Murthy |
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Designation : |
General Manager (Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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|
8687123 |
49.96 |
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|
344785 |
1.98 |
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|
9031908 |
51.94 |
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Total shareholding of Promoter and Promoter Group (A) |
9031908 |
51.94 |
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(B) Public Shareholding |
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|
1333954 |
7.67 |
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|
4050 |
0.02 |
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|
1445 |
0.01 |
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|
1339449 |
7.70 |
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|
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|
4500540 |
25.88 |
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|
1300084 |
7.48 |
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|
166693 |
0.96 |
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|
1049340 |
6.03 |
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|
1000000 |
5.75 |
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|
30753 |
0.18 |
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|
254 |
0.00 |
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|
18333 |
0.11 |
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|
7016657 |
40.35 |
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Total Public shareholding (B) |
8356106 |
48.06 |
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Total (A)+(B) |
17388014 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
17388014 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Cement and Clinker. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
CAPACITIES AND PRODUCTIONS (MATTAMPALLY)
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Licensed and Installed Capacity (TPA) |
2350000 |
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Actual Production (MTS) |
1277720 |
CAPACITIES AND PRODUCTIONS (PEDAVEEDU)
|
Licensed and Installed Capacity (TPA) |
346500 |
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Actual Production (MTS) |
212942 |
GENERAL INFORMATION
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No. of Employees : |
430 (Approximately) |
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Bankers : |
·
State Bank of ·
State Bank of ·
IDBI Bank Limited |
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Facilities : |
Notes: LONG-TERM
BORROWING 1. Term Loan of
Rs.1000.000 millions was taken from IDBI Bank during the year 2008-09 and it
is repayable in 60 monthly installments of Rs.16.700 millions each. The loan carries
an interest at 175 bps below the Bench Mark Prime Lending rate and is payable
at monthly rests. As of 31.03.2013, out of 60 installments, 51 installments
were paid and 9 installments are to be paid. Rate of interest as on
31.03.2013 is 13.50% (31.03.2012: 14%). The term loan is
secured by a pari-passu charge on the fixed assets
i.e. Land, Buildings, Plant and Machinery, Mining Equipment owned by or
belonging to the company both present and future, and by a second charge on
the current assets of the company and are guaranteed by Shri
S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy,
Executive Director. 2. Term Loan of
Rs.450.000 millions was taken from State Bank of India during the year 2008-09
and it is repayable in 60 monthly installments of Rs.7.500 millions each. The
loan carries an interest at 0.50% below State Bank Advance Rate and is
payable at monthly rests. As of 31.03.2013 out of 60 installments, 51
installments were paid and 9 installments are to be paid. Rate of interest as
on 31.03.2013 is 14.15% (31.03.2012: 14.75%). The term loan is secured by a pari-passu charge on the fixed assets i.e. Land,
Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the
company both present and future, and by a second charge on the current assets
of the company and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy,
Executive Director. 3. Term Loan of Rs.500.000
millions was taken from State Bank of Hyderabad during the year 2008-09 and
it is repayable in 60 monthly installments of Rs.8.330 millions each. The
loan carried an interest at 75 base points below the prime lending rate of
the Bank and is payable at monthly rests. As of 31.03.2013, out of total 60
installments, 51 installments were paid and 9 installments are to be paid.
Rate of interest as on 31.03.2013 is 14.25% (31.03.2012: 14.25%). The term
loan is secured by a pari-passu charge on the fixed
assets i.e. Land, Buildings, Plant and Machinery, Mining Equipment owned by
or belonging to the company both present and future, and by a second charge
on the current assets of the company and are guaranteed by Shri S. Veera Reddy, Managing
Director, Dr. S. Anand Reddy, Joint Managing
Director and Shri S. Sreekanth
Reddy, Executive Director. 4. Term Loan of
Rs.450.000 millions was taken from State Bank of Hyderabad during the year
2010-11 and it is repayable in 60 monthly installments from December, 2010.
As of 31.03.2012 out of 60 installments, 28 Installments were paid and 32
installments are to be paid every month at Rs.10.000 millions for first 24
installments, Rs.15.000 millions for next 7 installments and the last
installment at Rs.12.500 millions. The interest was fixed at 4.25% above
Basic Rate of interest. Rate of interest as on 31.03.2013 is 14.75%
(31.03.2012: 13.25%). The term loan is secured by a pari
passu charge on the fixed assets i.e. Land,
Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the
company both present and future, and by a second charge on the current assets
of the company and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy,
Executive Director. 5. Term Loan of
Rs.50.000 millions was taken from Andhra Pradesh State Financial Corporation
during the year 2010-11 and it is repayable in 55 monthly installments of
Rs.0.910 million each. As of 31.03.2013 out of 55 installments, 23 installments
were paid and 32 installments are to be paid. The interest was fixed at 3%
below Bench Mark Prime Lending rate of interest. Rate of interest as on
31.03.2013 is 13% (31.03.2012: 13.00%). The term loan is
secured by a pari-passu charge on the fixed assets
i.e. Land, Buildings, Plant and Machinery, Mining Equipment owned by or
belonging to the company both present and future, and by a second charge on
the current assets of the company and are guaranteed by Shri
S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy,
Executive Director. 6. Term Loan of
Rs.200.000 millions was taken from L & T Finance Limited, during the year
2012-13 and it is repayable in 31 monthly installments from June, 2013. The
interest was fixed at 4.25% above Basic Rate of interest. Present rate of
interest as on 31.03.2013 is 13.00%. The term loan is secured by a second pari-passu charge on the fixed assets i.e., Land,
Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the
company both present and future, and by a second charge on the current assets
of the company and are guaranteed by Dr. S. Anand
Reddy, Joint Managing Director and Shri S. Sreekanth Reddy, Executive Director. 7. L & T
Infrastructure Finance Company Limited, has sanctioned a Term Loan for
Railway Siding Project for an amount of Rs.980.000 millions during the
financial year 2012-13 and the company has drawn an amount of Rs.300.000
millions up to 31.03.2013. The principle loan amount would be repayable in 27
quarterly installments from June, 2015 onwards. The loan was sanctioned
carries an interest at 175 bps below Bench Mark Prime Lending rate and is
payable at monthly rests. Present rate of interest as on 31.03.2013 is at
13.00%. The term loan is secured by a pari-passu
charge on the fixed assets i.e., Land, Buildings, Plant and Machinery, Mining
Equipment owned by or belonging to the company both present and future, and
by a second charge on the current assets of the company. 8. Term Loan of
Rs.250.000 millions was taken from State Bank of India, during the year
2012-13 and it is repayable in 60 monthly installments starting from
September, 2013 onwards. The repayment pattern would be Rs.2.500 millions
each for first 28 installments and Rs.5.600 millions for the next 31
installments and Rs.6.400 millions for the final installment. The interest
was fixed at 4.25% above Basic Rate of interest. Present rate of interest as
on 31.03.2013 is 13.00%. The term loan from State Bank of India is secured by
a pari-passu charge on the fixed assets i.e. Land,
Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the
company both present and future, and by a second charge on the current assets
of the company and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy, Executive Director. 9. Vehicle Loans
from various Banks / Financial Institutions were secured by the Hypothecation
of Specific assets purchased from those loans and further secured by personal
guarantees of Dr. S. Anand Reddy, Joint Managing
Director and Shri S. Sreekanth
Reddy Executive Director. SHORT-TERM
BORROWINGS: Cash credit
Loans from Banks are secured against Stocks of Raw materials, Finished goods
and Trade Receivables, Stores and Spares, present and future, and by second
charge on fixed assets of the company and are guaranteed by Shri S. Veera Reddy, Managing
Director, Dr. S. Anand Reddy, Joint Managing
Director and Shri S. Sreekanth
Reddy, Executive Director. The cash credit is repayable on demand and carries
interest @ 9.80% to 14.5%. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
P. Srinivasan and Company Chartered Accountants |
|
Address : |
H.No.12-13-422, Street No.1, Lane Opposite Bank of Baroda, Tarnaka, Secunderabad – 500
017, Andhra Pradesh, India |
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Cost Auditors : |
|
|
Name : |
Narasimha Murthy and Company Chartered Accountants |
|
Address : |
104, Pavani Estate, Y.V. Rao
Mansion, Himayathnagar, Hyderabad – 500 029, Andhra
Pradesh, India |
|
|
|
|
Associates : |
Vicat Sagar Cement
Private Limited, |
|
|
|
|
Enterprise where
key managerial personnel along with their relatives exercise significant
influence : |
·
Panchavati Polyfibres Limited ·
Sagar Power Limited ·
RV Consulting Services Private Limited ·
Sagar Priya Housing
and Industrial Enterprises Limited ·
Sagarsoft (India) Limited
|
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
2000000 |
Preference Shares |
Rs.10/- each |
Rs.20.000 millions |
|
|
Total |
|
Rs.220.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17388014 |
Equity Shares |
Rs.10/- each |
Rs.173.880
millions |
|
|
|
|
|
Reconciliation of shares
outstanding at the beginning and at the end of the reporting period
|
Equity
shares |
As at 31st March, 2013 |
|
|
No. of Shares |
Amount (Rs. in millions) |
|
|
At the beginning of the period |
17388014 |
173.880 |
|
No. of shares Issued during the period |
0 |
0 |
|
Outstanding at the end of the period |
17388014 |
173.880 |
1. The Company has
only one class of equity shares having a par value of Rs.10 per share. Each holder
of Equity shares is entitled to one vote per share. The company declares and
pays dividends in Indian rupees. The dividend, if and when proposed by the
Board of Directors is subject to the approval of the shareholders.
2. For the year
ended 31st March 2013, the amount of per share dividend recognized
as distribution to equity shareholders is Re.1/-.
3. In the event of
liquidation of the company, the holders of equity shares will be entitled to receive
remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Details of
Shareholders holding more than 5% shares in the company
|
Shareholder's Name |
As at 31st March, 2013 |
|
|
No. of Shares |
% of holding |
|
|
S. Veera Reddy |
1643795 |
9.45 |
|
S. Aruna |
1369545 |
7.88 |
|
S. Rachana |
1153230 |
6.63 |
|
S. Anand Reddy |
1142312 |
6.57 |
|
S. Sreekanth Reddy |
1085757 |
6.24 |
|
S. Vanajatha |
990769 |
5.70 |
|
AVH Resources Limited |
2727032 |
15.68 |
|
Twinvest Financial Services Limited |
1142985 |
6.57 |
|
Parficim S.A.S (A Subsidiary of Vicat S.A.) |
1000000 |
5.75 |
As per 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 ownerships of shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
173.880 |
173.880 |
173.880 |
|
(b) Reserves & Surplus |
2490.585 |
2423.130 |
2042.590 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2664.465 |
2597.010 |
2216.470 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
1026.492 |
798.282 |
1198.350 |
|
(b) Deferred tax liabilities (Net) |
445.834 |
446.056 |
359.770 |
|
(c) Other long
term liabilities |
459.354 |
228.897 |
148.810 |
|
(d) Long-term
provisions |
10.123 |
12.324 |
5.230 |
|
Total Non-current
Liabilities (3) |
1941.803 |
1485.559 |
1712.160 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
685.899 |
777.127 |
756.640 |
|
(b)
Trade payables |
536.094 |
640.729 |
472.760 |
|
(c)
Other current liabilities |
1046.512 |
928.305 |
855.910 |
|
(d) Short-term
provisions |
52.679 |
198.989 |
101.310 |
|
Total Current
Liabilities (4) |
2321.184 |
2545.150 |
2186.620 |
|
|
|
|
|
|
TOTAL |
6927.452 |
6627.719 |
6115.250 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i) Tangible assets |
3405.723 |
3433.657 |
3464.050 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
215.411 |
68.706 |
56.010 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
860.265 |
860.265 |
860.270 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
227.068 |
235.737 |
118.040 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
4708.467 |
4598.365 |
4498.370 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
652.209 |
856.892 |
575.390 |
|
(c)
Trade receivables |
532.955 |
484.482 |
459.420 |
|
(d) Cash
and cash equivalents |
246.008 |
27.200 |
28.590 |
|
(e)
Short-term loans and advances |
411.619 |
439.851 |
383.740 |
|
(f)
Other current assets |
376.194 |
220.929 |
169.740 |
|
Total Current
Assets |
2218.985 |
2029.354 |
1616.880 |
|
|
|
|
|
|
TOTAL |
6927.452 |
6627.719 |
6115.250 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations (Net) |
5585.155 |
5948.272 |
4250.900 |
|
|
|
Other Income |
260.295 |
120.002 |
88.860 |
|
|
|
TOTAL (A) |
5845.450 |
6068.274 |
4339.760 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
534.520 |
540.225 |
496.410 |
|
|
|
Changes in Inventories of Finished Goods and Work-in-Progress |
61.425 |
130.102 |
(226.960) |
|
|
|
Manufacturing expenses |
2657.029 |
2324.108 |
1979.590 |
|
|
|
Employee Benefit Expenses |
230.340 |
265.599 |
183.840 |
|
|
|
Other Expenses |
1679.921 |
1561.330 |
1092.960 |
|
|
|
TOTAL (B) |
5163.235 |
4821.364 |
3525.840 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
682.215 |
1246.910 |
813.920 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
305.538 |
341.813 |
311.390 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
376.677 |
905.097 |
502.530 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
267.439 |
258.962 |
275.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
109.238 |
646.135 |
226.550 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
21.440 |
204.971 |
52.430 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
87.798 |
441.164 |
174.120 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1009.485 |
828.949 |
711.457 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
0.000 |
200.000 |
17.400 |
|
|
|
Proposed Dividend on Equity Shares |
17.388 |
52.164 |
34.776 |
|
|
|
Tax on Dividend Proposed |
2.955 |
8.464 |
4.452 |
|
|
BALANCE CARRIED
TO THE B/S |
1076.940 |
1009.485 |
828.949 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components, Spare parts, Capital Items and Others |
58.811 |
6.690 |
1.440 |
|
|
TOTAL IMPORTS |
58.811 |
6.690 |
1.440 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
5.05 |
25.37 |
11.61 |
|
|
|
- Diluted |
5.05 |
25.37 |
10.01 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
1229.600 |
1012.900 |
|
Total Expenditure |
|
1187.700 |
1016.600 |
|
PBIDT (Excl OI) |
|
41.800 |
(3.700) |
|
Other Income |
|
24.200 |
124.500 |
|
Operating Profit |
|
66.000 |
120.800 |
|
Interest |
|
69.600 |
71.000 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(3.500) |
49.800 |
|
Depreciation |
|
65.700 |
67.200 |
|
Profit Before Tax |
|
(69.300) |
(17.300) |
|
Tax |
|
(22.400) |
(5.900) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(46.900) |
(11.500) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(46.900) |
(11.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.50 |
7.27 |
4.01 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.96
|
10.86 |
5.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.87
|
11.34 |
4.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.25 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth)
|
|
0.64
|
0.61 |
0.88 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.96
|
0.80 |
0.74 |
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
|
Unsecured Loans |
31.03.2013 (Rs. in Millions) |
31.03.2012 (Rs. in Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Other Loans and Advances |
|
|
|
Sales Tax Deferment |
50.061 |
50.061 |
|
Total
|
50.061 |
50.061 |
COMPANY'S
PERFORMANCE
The year 2012-13
saw the continuance of the slowdown in the construction sector observed in the
previous year, keeping the demand for cement at a low level especially in
Andhra Pradesh, which is a major market for the company.
Despite this,
subject was able to maintain its sales volume, though at a marginally lower
level than that of the previous year. Average net sales realization per ton of
cement was lower by 6% as compared to the previous year.
Rising cost of all
inputs remained a concern for the company particularly in the context of lower
demand which offers little scope for better price realization to offset the
increase in the input costs.
The performance of
the company in terms of production and sale of cement and average net sales
realization per ton is given below:
|
Particulars |
2012-13 |
2011-12 |
|
Cement production in MTs |
1587419 |
1625336 |
|
Cement Sales in MTs |
1585003 |
1631392 |
|
Average Net Sales Realisation per MT (Rs.) |
2773 |
2945 |
|
Total Revenue - Rs. In millions |
5845.400 |
6068.300 |
Future outlook
With the low
government expenditure presently witnessed on public projects and a fall in
investment levels in the housing and construction industry, it will be some
time before the cement industry again sees a significant growth. It is fervently
hoped that in the context of the ensuing general elections, the Government may
come out with some major policy announcements to further boost the
infrastructure, road network and housing sectors which will provide the
required stimulus for the growth of cement industry. However, till such time
the company may have to face the problems like rising input costs, higher
freight and distribution costs and low price realizations due to weak demand.
The company therefore attaches greater importance to keep its energy cost to
the minimum by ensuring an optimum combination in the consumption of imported
and indigenous coal. It is also proposed to set up a waste heat recovery plant
to ease the pressure on energy cost. Further, as you are aware, a railway siding
project is under implementation near the plant at Mattampally
and it is hoped that the completion of this project would see the optimization
of the transportation cost and reduced dependence on road transport apart from
enabling the company to reach newer markets. The Board, if therefore cautiously
optimistic about the future outlook for the company.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry review
As one of the
basic infrastructure industries, cement industry contributes in a significant
way to the Indian economy in terms of employment generation, tax revenues, and
industrial growth. The per capita consumption of cement, which is an important
indicator of a country's economic development, is very much low in India,
despite India being the second largest cement producer in the world. However
this offers vast scope for the cement industry to grow.
This industry
produces several varieties of cement such as Ordinary Portland Cement (OPC),
Portland Pozzolana
Cement (PPC),
Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening
Portland Cement, Sulphate Resisting Portland Cement,
White Cement, etc.
Indian cement
industry has made great progress in technological up-gradation and assimilation
of latest technology. Presently, about 97 per cent of the total capacity in the
industry is based on modern and environment-friendly dry process technology.
Andhra Pradesh,
with its 37 large cement plants of combined capacity of 68 MTPA, has the
maximum number of cement plants in India.
Being a huge
country, there is a difference in the region wise demand for cement in India,
which is broadly divided into the western, eastern, northern and southern
regions. Cement being a bulk item, transporting it over long distances can
prove to be uneconomical. Thus, the industry is completely domestic driven. As
the cement is a low value and high volume product, it does not offer much scope
for export either.
During the last
few years, most cement companies expanded their capacities hoping for increased
consumption of cement on account of anticipated hike in government spending,
which however did not materialize to the extent hoped for and because of the
continuing depressed housing / real estate market, the construction spending
levels remained low in 2012-13 too.
Despite higher
cement prices realized occasionally, the margins continue to be under severe
pressure particularly over the last couple of years due to steep hike in cost
of all major inputs like raw material, fuel, power and freight, which together
account for around 70 per cent of the cost of production.
The slowdown in
the economy continued in 2012-13 as well, forcing the financial institutions to
tighten their credit norms, which inter-alia,
impacted the on-going as well as upcoming real estate, infrastructure and other
projects leading to a fall in the demand for cement and resulting in its excess
supply, putting pressure on the price.
Overall performance
Performance of Sagar Cement during the year 2012-13 needs to be reviewed
against the backdrops of the current mismatch between cement demand and its
supply in Andhra Pradesh, which is the major market for the Company. The
increasing cost of coal and other input materials is pushing up the cost of
production of cement, squeezing the earnings of the company. The lower demand
for cement in Andhra Pradesh and in the neibhouring
states, has put severe pressure on the price. Due to these reasons, there was a
marginal dip in production, sales as well as in net sales realization per ton
of cement.
During the year the company earned a total revenue of Rs.5845.400
millions, marginally lower by 3.67% than that of the previous year. The Profit
Before Tax (PBT) for the year stood at Rs.109.238 millions as against
Rs.646.135 millions in the previous year, a decrease by 83%. Profit after tax
was Rs.87.800 millions, a decrease by 80% over the previous year.
Constrained by the
reduced earnings during the year 2012-13, the Board has recommended a modest
dividend at 10% (Re.1 per share) for the year on the 17388014 equity shares of
the Company. This would help the company in maintaining the much needed cash
flow to partly meet capital expenditures like provision for a railway siding at
the company plant, setting up of a waste heat recovery plant and for
installation of a few balancing equipments, all of which, currently under
active evaluation by the internal committees of the Board, will go a long way
in pruning the costs.
Financial Review
During the year
the company sold 1585003 MT's of cement with an average gross realization of
Rs.4550/MT, whereas in the previous year, the company had sold 1631392 MT's at
an average gross realization of Rs.4633/MT.
The net revenue
from operations during the year is about Rs.5585.155 millions as compared to
Rs.5948.272 millions during the previous year.
Other income
included an amount of Rs.42.600 millions being the profit realized on sale of
assets and an amount of Rs.23.500 millions towards excise duty refund
receivable against price difference given to the customers.
The balance
retained in the Statement of Profit and Loss as on 31st March 2013
is Rs.1076.940 millions, after making provision for a dividend of Rs.17.388
millions and a tax of Rs.2.955 millions thereon.
Investments in the Joint Venture
In the year 2008-09,
subject entered into a Joint Venture agreement with Vicat
S.A. a cement major and the flagship company of the globally known Vicat Group of France, to set up a green field cement plant
of 5.5 million tone capacity with a captive power plant of 60 MW capacity at Chatrasala Village of Chincholi Taluk in Gulbarga District of
Karnataka State. A separate entity under the name 'Vicat
Sagar Cement Private Limited' (VSCPL) was later
formed for the purpose. This project is implemented in two phases, each phase
with a capacity of 2.75 Milllion ton cement per
annum. To facilitate the speedy implementation of the captive power plant
mentioned above, the VSCPL and Parficim SAS, a wholly
owned subsidiary of Vicat SA have jointly formed an
SPV, "Gulbarga Power Private Limited". The
first phase of the cement project has since commenced its commercial
operations. Subject and the Vicat Group have
respectively invested a sum of Rs.860 million and Rs.
4140 million and are holding 47% and 53% of the Equity Capital of the said
Joint Venture.
Outlook
In the prevailing
economic scenario, the future, atleast in the near
term, does not appear to be rosy for the cement industry. The industry will
have to deal with problems like rising energy costs compounded with the
depreciation of the rupee, higher freight and distribution costs and low price
realizations due to weak demand. The weak economic climate will also have an
impact on smaller cement producers and their operations, leading to a spate of
consolidations. The next couple of years may see a period of consolidation in
the industry with the smaller players withdrawing from the industry by selling
out to the financially stronger cement producers.
On the brighter
side, the per capita consumption of cement being very low in India, there is a
vast scope for growth in demand for cement on the long term. The main drivers
for the growth in demand for cement being road and housing projects, the
increased spending by the Government in these areas and the revival of the real
estate sector would ensure no let up in the demand for cement, notwithstanding
the substantial additions to capacity recently witnessed in the industry.
Subject is operationally strong and poised to benefit from such a demand
positive situation and will continue to focus on maintaining good plant
performance and optimizing efficiencies. Subject will be focusing on
penetration into more districts of A.P., to increase its market share in the
said State and continue to explore its other markets and with this strategy,
Subject is confident of achieving a higher capacity utilization.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs. in
millions) |
31.03.2012 (Rs. in
millions) |
||
|
Disputed Amount |
Paid Under Protest |
Disputed Amount |
Paid Under Protest |
|
|
APTRANSCO Voltage surcharge and grid supporting charges (Note 1) |
17.350 |
10.800 |
17.350 |
10.800 |
|
Demand by Sales tax authorities year 2009-10-Sale of Fixed Assets (Note 2) |
10.940 |
2.740 |
10.940 |
2.740 |
|
Demand by Sales Tax authorities year 1999-2000-Interest on delayed payment (Note 3) |
1.960 |
0.490 |
1.960 |
0.490 |
|
Demand by Income tax Department Assessment year 2006-07 disallowances (Note 4) |
7.500 |
0.000 |
7.500 |
0.000 |
|
Demand by Central Excise Department benefit of Cenvat credit on capital goods (Note 5) |
22.500 |
19.500 |
22.500 |
19.500 |
|
Demand by Central Excise Department benefit of Cenvat credit on capital goods (Note 6) |
65.080 |
0.000 |
65.080 |
0.000 |
|
Demand by Road Transport Authority, Nalgonda for payment of Life Tax on dumpers used in the mines (Note No. 7) |
2.850 |
0.320 |
2.850 |
0.320 |
|
Demand Raised by Central Excise Department (Note No.8) |
5.941 |
0.000 |
0.000 |
0.000 |
|
Demand Raised by Central Excise Department ((Note No.9) |
14.630 |
0.000 |
0.000 |
0.000 |
|
Demand Raised by Central Excise Department (Note No.10) |
0.767 |
0.384 |
0.000 |
0.000 |
|
Disallowance of Expenditure U/s 14A (Note No.11) |
7.529 |
0.000 |
0.000 |
0.000 |
|
Bank Guarantees |
37.693 |
0.000 |
33.530 |
0.000 |
Notes:
1. APTRANSCO had
raised a demand of Rs.17.350 millions towards voltage surcharge and grid
supporting charges and the company has paid Rs.10.800 millions under protest. The
said demand is contested by the company and the matter is pending before the
Division Bench of the Honorable High Court of Andhra Pradesh.
2. In the year
2009-10, Sales Tax Authorities raised a demand for Rs.10.940 millions in
respect of tax on sale of fixed assets. The company has paid an amount of
Rs.2.740 millions and contested before the Sales Tax Appellate Tribunal.
3. Demand raised
by the Sales Tax Authorities for a sum of Rs.1.960 millions towards interest
U/s.16(3) of the APGST Act, on delayed payment of tax for the AY 1999-2000. The
company filed an appeal with Sales Tax Appellate Tribunal by paying an amount
of Rs.0.490 million.
4. The Income Tax
Department had raised a demand of Rs.7.500 millions on disallowances of certain
expenditure related to the AY 2006-07 and the same is contested before the
Commissioner Appeals.
5. The Excise
Department had raised a demand of Rs.22.500 millions denying the benefit of Cenvat credit on dumpers used in captive mines. The company
has paid an amount of Rs.19.500 millions under protest and filed an appeal with
CESTAT, Bangalore. Matter is pending before CESTAT.
6. The Excise
Department had raised a demand of Rs.65.080 millions denying the Cenvat credit on MS Steel, Cement, TMT bars etc., used in
expansion. The company has contested the same before CESTAT and the matter is
pending for hearing.
7. Show Cause
Notice has been received from the RTA, Nalgonda
demanding Life Tax on dumpers purchased during year 2006 - 2010 and used in the
captive mines. The matter is contested and pending in the Honorable High Court
of Andhra Pradesh.
8. Additional
Director General Intelligence Hyderabad has issued a Show Cause Notice No.
26/2012(OR Mo.53/2012) dated 27-03-13 for an amount of Rs.5.941 millions and an
equal amount of penalty along with interest on the ground that cement has been
cleared to the contractors at a rate which is lesser than the price at which
the cement was sold in the normal course of transaction, resulting into a short
payment of Central excise duty. Appeal is to be filed before the Commissioner
of Central Excise Hyderabad III Commissionerate
(Adjudicating Authority) in this regard.
9. The
Commissioner of Central Excise, Customs and Service Tax, Hyderabad III Commissionerate has raised a
Demand for
Rs.13.630 millions along with interest and also imposed a penalty Rs.1.000
millions on the ground that the Company has availed Cenvat
Credit against Service Tax paid on the freight charges incurred for the
transportation of cement beyond the place of removal during the period from
July 2008 to February 2011. Matter is pending before CESTAT Bangalore.
10. The
Commissioner (Appeals) of Central Excise, Customs and Service Tax has
disallowed CENVAT credit of Rs.0.767 million availed during the period from
December 2006 to March 2010 on the ground that Cenvat
Credit had been availed on Input Services such as Advertisement, Audit and
Telephone telex services used in relation to the trading activity which did not
have any nexus with the manufacturing activity. An amount Rs.0.384 million has
been deposited by the company under protest and an appeal has been filed before
CESTAT, Bangalore in this regard.
11. The Deputy
Commissioner of Income Tax Circle-1(1), Hyderabad has disallowed an amount of
Rs.7.529 millions under Section 14A (Disallowance of expenditure incurred in
relation to income which is not included in the total income) claimed as
expenditure during the assessment years from 2008-09 to 2010-11 on account of
Interest paid on term loans to Financial Institutions. In this regard an appeal
has been filed by the company with Commissioner of Income Tax, Appeals-II,
Hyderabad.
UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED 30TH
JUNE, 2013
(Rs. in millions)
|
SI. No. |
Particulars |
Three Months Ended |
|
|
|
|
30.06.2013 (Unaudited) |
|
|
1 |
Income from Operations |
|
|
|
|
(a) Net Sales/Income from Operations (Net of
Excise Duty) |
1229.565 |
|
|
|
(b) Other Operating Income |
0.000 |
|
|
|
Total Income from Operations (Net) |
1229.565 |
|
|
2 |
Expenses |
|
|
|
|
a. Cost of Materials consumed |
157.003 |
|
|
|
b. Purchases of Stock in Trade |
0.000 |
|
|
|
c. Changes in Inventories of Finished goods.
Work-in-Progress and Stock in Trade |
(108.001) |
|
|
|
d. Employee Benefits Expense |
59.504 |
|
|
|
e. Depreciation |
65.730 |
|
|
|
f. Power & Fuel |
565.985 |
|
|
|
g. Freight and forwarding expenses |
264.918 |
|
|
|
h. Other expenses |
248.307 |
|
|
|
Total Expenses |
1253.440 |
|
|
3 |
Profit/ (Loss) from Operations before Other
Income, Finance Costs (1-2) |
(23.881) |
|
|
4 |
Other Income |
24.195 |
|
|
5 |
Profit / (Loss) from Ordinary Activities
before Finance Costs (3h 4) |
0.314 |
|
|
6 |
Finance Costs |
69.585 |
|
|
7 |
Profit. ( Loss) from Ordinary Activities
before tax (5-6) |
(69.271) |
|
|
8 |
Tax expense |
22.390 |
|
|
9 |
Net Profit/(Loss) for the
Period (7-8) |
(46.881) |
|
|
10 |
Minority Interest |
0.000 |
|
|
11 |
Net Profit/(Loss) after Taxes
and Minority Interest (9-10) |
(46.881) |
|
|
12 |
Paid-up equity share capital (Face value
Rs.10/- per share) |
173.880 |
|
|
13 |
Reserve excluding Revaluation Reserves as per
balance sheet at year end |
-- |
|
|
14 |
Earnings Per Share (of Rs.
10 each) (Not Annualized): |
|
|
|
|
(a) Basic |
(2.70) |
|
|
|
(b) Diluted |
(2.70) |
|
|
(A) |
|
Particulars of Shareholding |
|
|
1 |
|
Public Shareholding |
|
|
|
- |
No. of shares |
8356106 |
|
|
- |
Percentage of shareholding |
48 |
|
2 |
|
Promoters and Promoter Group Shareholding |
|
|
|
a) |
Pledged/ Encumbered |
|
|
|
- |
Number of shares |
Nil |
|
|
- |
Percentage of shares (As a % of the total shareholding of Promoters and
Promoter Group) |
Nil |
|
|
- |
Percentage of shares (As a% of the total share
capital of the company) |
Nil |
|
|
b) |
Non-Encumbered |
|
|
|
- |
Number of shares |
9031908 |
|
|
- |
Percentage of shares (As a % of the total shareholding of Promoters and
Promoter Group) |
100 |
|
|
|
Percentage of shares (As a% of the total share
capital of the company) |
52 |
Notes:
1. The above results were reviewed
by the Audit Committee of the Board and later approved by the Board at its
meeting held on 24th July, 2013.
2. The company operates in only
one segment namely manufacture of cement
3. The power and fuel cost
includes an amount of Rs.18.000 millions towards Fuel Surcharge Adjustment
(FSA) which related to earlier years but crystallized in the quarter ended
30.06.2013.
4. The Statutory Auditors of the
Company have carried out a Limited Review of the above results.
5. Details of Investor Grievances:
The Company had received 7 complaints during the quarter and solved them during
the quarter itself. No complaints were pending either at the beginning or at
the end of the quarter.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
·
Plant and Machinery (DG Set)
·
Electrical Installations
·
Furniture and Fixtures
·
Office Equipment
·
Computers
·
Vehicles
· Other Equipment
WEBSITE DETAILS:
PROFILE:
Subject is a prominent player in the field of cement in Andhra Pradesh for the past 25 Years adopting progressive manufacturing practices, whether it relates to maintaining high standards of quality of its products or development of its highly valued human resources or the need to keep the pollution to the barest minimum.
The Company manufactures various varieties of cement like Ordinary Portland Cement (OPC) of 53 grade, 43 grade, Portland Pozzalona Cement (PPC) and Sulphate Resistant Cement (SRC) to suit different needs of customers and all these products are being sold under the Brand Name “Sagar” which has already become popular in Andhra Pradesh, has now found its acceptance among the customers in the neighboring States as well.
The Company employs modern technology in each of its process of manufacture at its Plant and has adopted progressive manufacturing practices, whether it relates to maintaining high standards of quality of its products or development of its highly valued human resources or the need to keep the pollution to the barest minimum.
The Company has a strong committed marketing network comprising various layers like Distributors, Dealers, C&F Agents, all of whom are served by dedicated marketing personnel. The Company has a well-designed Organizational Structure and the roles and responsibilities of each of its personnel have been well defined. The Company believes in the importance of development of Human Resources as a valuable asset and is endeavoring to enhance its value by organizing various need based in-house training programmes and encouraging their participation in the external programmes sponsored by various institutions of repute.
Subject has a consistent Profit track record and, except for a few years when it was either executing its expansion plans or the industry as a whole was undergoing a difficult period, it has been declaring dividend at reasonable percentages.
The company’s Shares are listed on Hyderabad and Bombay Stock Exchanges, where they are actively traded.
The Company which started its operation with a Cement capacity of 66000 TPA, has gradually increased it to the level of 2.35 MTPA, while its Clinker capacity has also witnessed a significant increase from 66000 TPA in 1982 to present level of 2.10 MTPA.
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 records 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 r 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.61.50 |
|
|
1 |
Rs.99.49 |
|
Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.