|
Report Date : |
21.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHREE CHHATRAPATI SHAHU SAHAKARI SAKHAR KARKHANA LIMITED |
|
|
|
|
Registered
Office : |
'Shrimant Jaysingrao Ghatge Bhavan' Kagal, District |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Year of
Establishment : |
1980 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Not Divulged |
|
|
|
|
Legal Form : |
Co-Operative Society |
|
|
|
|
Line of Business
: |
Manufacturer of Sugar. |
|
|
|
|
No. of Employees
: |
1000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well-established Multi State Sugar Co-Operative Society
having satisfactory track record. The company possesses an acceptable financial profile marked by
adequate networth base along with working capital intensity owing to increase
inventory levels in March 2013 due to stocking of sugar. Management has witnessed a better growth in its sales volume as well
as net profitability though, has reported low profit margins during FY 2013. The rating also take into consideration, the regulatory as well as
agro climatic risks inherent in the industry which are mitigated by
successful completion of forward integration in operations by the management. Trade relations are fair. Business is active. Payment terms are
reported as slow but correct. In view of long standing presence, 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.
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real
estate outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Cash Credit = BB+ |
|
Rating Explanation |
Moderate risk of default regarding timely servicing
of financial obligation |
|
Date |
November 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan = BB+ |
|
Rating Explanation |
Moderate risk of default regarding timely
servicing of financial obligation |
|
Date |
November 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
31-03-2014.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Ghorale |
|
Designation : |
Finance Department |
|
Contact No.: |
91-2325-244211 |
|
Date : |
20.08.2014 |
LOCATIONS
|
Registered Office/ Factory : |
'Shrimant Jaysingrao Ghatge Bhavan' Kagal, District
Kolhapur – 416216, Maharashtra, India |
|
Tel. No.: |
91-2325-244211 / 244212 / 244213 / 244214 / 244612 |
|
Telefax : |
91-231-2654450 |
|
Fax No.: |
91-2325-244241 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
'Vitthal Krupa', Nagala Park, Kolhapur – 416216,
Maharashtra, India |
MEMBER
|
Name : |
Mr. Vikramsinh Ghatge |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Vijay Avatade |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Ghorale |
|
Designation : |
Finance Department |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sugar. |
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Advance Payment |
|
|
|
|
Purchasing : |
Cash and Advance Payment |
GENERAL INFORMATION
|
Customers : |
End Users |
|
|
|
|
No. of Employees : |
1000 (Approximately) |
|
|
|
|
Bankers : |
·
Kagal Co-Operative Bank Limited, Kagal Taluka, Kolhapur,
Maharashtra, India ·
Bank of Baroda ·
Bank of India ·
HDFC Bank |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P.G. Diwan and Company Chartered Accountants |
CAPITAL STRUCTURE
|
Capital Investment : |
|
|
Owned : |
Not Divulged |
|
Borrowed : |
- |
|
Total : |
Not Divulged |
FINANCIAL DATA
[all figures are
in Rupees Millions]
HIGHLIGHTS OF
FINANCIAL PERFORMANCE
|
Description |
FY 2013 |
FY 2012 |
FY 2011 |
|
|
|
|
|
|
Net Revenues |
3257.403 |
2287.186 |
2266992 |
|
Expenses |
3248.409 |
2283.568 |
2263.903 |
|
EBITD |
258.358 |
157.466 |
103.665 |
|
Interest and Depreciation |
249.364 |
153.848 |
100.576 |
|
Provision of Tax |
28.762 |
6.500 |
0.000 |
|
PAT |
8.994 |
3.618 |
3.089 |
|
Net Worth |
893.943 |
707.815 |
552.135 |
CANE PRICE
|
Description |
FY 2013 |
FY 2012 |
FY 2011 |
|
|
|
|
|
|
Statutory Minimum
Price (SMP) Rs. per MT |
229.100 |
189.400 |
177.100 |
|
Cane Price paid Rs. per MT |
319.800(adv) |
278.000 |
264.500 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
No |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
No |
|
29] |
Last accounts filed at ROC |
No |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS
|
Case Details |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No.:- |
CEXAL/61/2013 |
Filing Date:- |
06/03/2013 |
||||
|
|
|||||||
|
Petitioner:- |
THE COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, KOLHAPUR
COMMISSIONERATED, - |
Respondent:- |
SHRI CHHATRAPATI SHAHU SAHAKARI SAKHAR KARKHANA LIMITED - |
||||
|
Petn.Adv:- |
A R Malhotra (I3164) |
Resp. Adv.: |
0 (0) |
||||
|
District:- |
KOLHAPUR |
||||||
|
Bench:- |
SINGLE |
||||||
|
Status:- |
Pre-Admission |
Category:- |
CENTRAL EXCISE APPEAL (CEXA) |
||||
|
Last Date:- |
25/04/2013 |
Stage:- |
FOR REJECTION [ORIGINAL SIDE MATTERS] |
||||
|
Last Coram:- |
REGISTRAR(OS)/PROTHONOTARY AND SR. MASTER |
||||||
|
Act :- |
Central Excise and Salt Act |
Under Section:- |
35 G |
||||
WEBSITE INFORMATION
CHAIRMAN'S PROFILE
Mr. Vikramsinh Ghatge
Founder and Chairman
More than three decades ago Mr.Vikramsinh Ghatge realized
that a cooperative sugar mill in the area around Kagal could change life of the
people, especially in view of the then upcoming Kalammawadi Irrigation Project.
His idea was widely welcomed, and with enormous support from the local people,
he was made Chief Promoter of the new sugar mill.
He successfully brought his dream into reality and the Mill started in 1980.
Today the Mill has established itself as a leading cooperative sugar mill, not
only in Maharashtra, but in the entire country, under Mr. Ghatges’s able
guidance and vision. It is today known for its excellent technical and financial
efficiency and for paying the highest price to the cane growing farmers.
Mr. Vikramsinh Ghatge’s contribution is not limited to the activities of the
Mill alone. He has contributed significantly to a number of social causes. A
lover of wrestling and other sports, Mr. Ghatge has generously supported young
sportsmen.
He is associated with a number of organizations in
cooperative sector and is also actively involved in those engaged in social
work, sports promotion and cultural activities.
ACTIVITIES IN
CO-OPERATION:
· Founder and Chairman, Shree Chhatrapati Shahu Sahakari Sakhar Karkhana Kagal
· Chairman, Maharashtra State Federation of Cooperative Sugar Factories, Mumbai (2005 to 2006)
· Establishment of the Co-generation Plant in March 2008
· Chairman, Shree Chhatrapati Shahu Krishi Sahakari Kharedi Vikri Sangh Ltd Kagal
· Member, Sugar Development Council, Government of India, New Delhi
· Director, Kagal Cooperative Bank Limited Kagal
· Chairman, Shree Chhatrapati Shahu Milk and Agro Producer Pvt.Limited,Vannur.
SOME SIGNIFICANT
ACTIVITIES IN EDUCATION
·
Chairman,
Sir Pirajirao Ghatge Physical Education Charitable Trust. Kolhapur
·
Chairman,
Siddheshwar Shikshan Prasarak Mandal Siddhanerli
·
Chairman,
Kagal Education Trust, Murgud
·
Chairman,
Shree Shahu Shikshan Prasarak Mandal Kagal
POLITICAL ACTIVITIES:
·
Member
of the Maharashtra State Legislative Assembly in two terms during the period
1978 to 1985
BUSINESS
Manufacturing of sugar from cane is the main business
activity of the Mill. The 3500 TCD Sugar Plant runs for almost 180 days in a
year from November to April. It crushes about 7.0 to 8.0 lakh MT of cane to
produce an average of 90,000 to 100,000 MT of sugar every year. The expansion
of existing 3500 TCD plant into 5000 TCD has been carrying out since 2009-10
and it will complete in the off-season of 2011-12 and from 2012-13 the factory
will run with 5000 TCD
Realizing the importance of by-products, the mill has diversified its business
in other areas.
It has a 45 KLPD capacity Distillery Plant having an average spirit recovery of
275 litres per MT of molasses.We have received sanction to our 30 KLPD Ethanol
plant from state government in Aug.2011.
The 12.5 MW bagasse based Cogeneration Plant of the Mill was commissioned in
March 2008. After in-house consumption, surplus power is exported to the State
Electricity Grid. With the existing 12.5 MW cogeneration plant we have added
9.0 MW additional capacity by which our cogeneration plant power generation
capacity raise with 21.5 MW consumption.
The Mill commissioned a Vermi-compost Pilot Plant in 2004. The organic manure
manufactured using press-mud, cow dung and other biological trash is provided
to the Members at subsidized prices. The Mill however intends that farmers in the
area develop such projects on their own, and encourages them for doing so.
The Mill is one of the first ones in the cooperative sector in Maharashtra to
have a dedicated Marketing Department. Activities performed by the Marketing
Department include
·
Development
of domestic customers
·
Export
/Import of Sugar
·
Trading
of sugar on NCDEX
AWARDS AND RECOGNITION
Having been recognized as the Best Co-operative Sugar
Factory in India ninth, by National Federation, New Delhi, the Mill has earned
its reputation of being one of the best cooperative sugar mills, not only in
Maharashtra but also in the country. So far it has won a total number of 50
awards at both and State and National levels in various categories such as Best
Technical Efficiency, Best Financial Management, Best Recovery etc.
The Mill is:
·
ISO
9001-2008 Certified
·
ISI
Certified
·
Certifiedas
2-StarExport House
GENERAL CATEGORY (12
NOS.)
1.
Best
Cooperative Sanstha from National Co-operative Union of India.
2.
Overall
Best Cooperative Sugar Factory in High Recovery Area for the season 2011-12
from NFCSF DELHI.
3.
Overall
Best Sugar Co-operative Factory in India by NFCSF DELHI, season 2008-09.
4.
Best
Distillery in Maharashtra, 2007 – 2008 by VSI PUNE.
5.
Best
Cooperative Sugar Factory in High Recovery Area, 2007 – 2008 by NFCSF DELHI
6.
Overall
Best Cooperative Sugar Factory in India, 2006 – 2007 by NFCSF DELHI.
7.
Best
Innovaitve Cooperative Sugar Factory by VSI PUNE, 2005 – 2006.
8.
Best Cooperative
Sugar Factory High Recovery Area from NFCSF DELHI Season 2004 – 05.
9.
Trophy
for Overall Best Sugar Factory in Maharashtra, 2003 – 04 from VSI PUNE.
10.
Overall
Best Cooperative Sugar Factory Award (All India Basis) NFCSF DELHI, 2002 – 03.
11.
First Prize
for Overall Best Sugar Factory (Late. Vsantdada Patil Revoling Trophy) from VSI
PNE, 1998–99.
12.
Award
from VNARDF, Mumbai 1992
FINANCE CATEGORY (10
NOS.)
1. Second Prize for Best Co-operative
Institute from MSC Bank, Mumbai for the year 2011-12.
2. Best Financial performance award for
financial year 2009-10 from MSC Bank Limited Mumbai.
3. Best Financial Management award for financial year 2008-09 from VSI PUNE.
4. Best Financial performance award for
financial year 2008-09 from MSC Bank Limited Mumbai.
5. MSC Bank Limited Mumbai certificate
to the Karkhana appreciating its efforts Financial Year 2007-08.
6. Best Financial Management Award in
south zone VSI PUNE Financial Year 2005 – 2006.
7. First Prize for Financial Management Financial
Year 2005 – 06 from NFCSF.
8. First Prize for Financial Management
in high Recovery Area Financial Year 2003 – 04 from NFCSF DELHI.
9. Best Financial Management Award in
south zone from VSI PUNE Financial Year 2000 – 01.
10. MSC Bank Limited Mumbai certificate
to the Karkhana appreciating its efforts Financial Year 2009-10.
ABBREVIATIONS
NFCSF: National Federation of Cooperation Sugar Factories, New Delhi.
VSI:
Vasantdada Sugar Institute, Pune.
MRSSKSL:
Maharashtra Rajya Sahakari Sakhar Karkhana Sangh Limited, Mumbai.
VNARDF:
Vasantrao Naik Agri. and Rural Development Foundation, Mumbai.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.67 |
|
|
1 |
Rs.100.81 |
|
Euro |
1 |
Rs.80.72 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VNT |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
49 |
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.