MIRA
INFORM REPORT
|
Report Date : |
01.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
RAJSHREE SUGARS AND
CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
The Uffizi,
338 Avanashi Road Peelamedu, Coimbatore - 641004, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
13.12.1985 |
|
|
|
|
Com. Reg. No.: |
18-001706 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.237.917
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L01542TZ1985PLC001706 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBR03062D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Seller of White Crystal Sugar
in India, and also engaged in the Co-generation of Electricity from Bagasse
Fuel and also produces Alcohol Products. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5250900 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record.
External borrowing of the company seems to be increasing over a year. However, the rating reflects substantial improvement in the company’s
operation marked by growth in revenue and profitability during the financial
year 2013. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered for business dealings at usual trade
terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
BBB – [Long Term Fund Based] |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
February 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
A3 [Short Term Fund Based] |
|
Rating Explanation |
Moderate degree of safety and low credit risk. |
|
Date |
February 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 / Corporate Office: |
The Uffizi, |
|
Tel. No.: |
91-422-2580981/ 2580982/ 2580983/ 4226222 |
|
Fax No.: |
91-422-2577929 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Unit – I |
Varadaraj Nagar Post Near Vaigai Dam, Theni -
625562, Tamilnadu, India |
|
Tel. No.: |
91-4546-242309/ 237250/ 237251/
242302 |
|
Fax No.: |
91-4546-242302 |
|
E-Mail : |
|
|
|
|
|
Unit - II |
Mundiampakkam Post,
Villupuram - 605601, Tamilnadu, India |
|
Tel. No.: |
91-4146-232401/ 232402 |
|
Fax No.: |
91-4146-232403 |
|
E-Mail : |
|
|
|
|
|
Unit - III |
Semmedu Village, Gingee Taluk, Villupuram - 604153, Tamilnadu, India |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Ms. Rajshree Pathy |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
56 Years |
|
Qualification : |
B. Com |
|
Experience : |
36 Years |
|
Date of Appointment : |
16.03.1989 |
|
|
|
|
Name : |
Mr. R.
Varadarajan |
|
Designation : |
Director and
Chief Operating Officer |
|
Qualification : |
MBA |
|
Date of Appointment : |
16.07.1987 |
|
|
|
|
Name : |
Mr. Raja M. J. Abdeen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Surulinarayanasami |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G R
Karthikeyan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. K Mohan
Naidu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. S. V.
Subba Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. C. H.
Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
B.
Soundararajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Aditya
Krishna Pathy |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A. Sathyamurthy |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. R. S. Gowdhaman |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8991885 |
37.79 |
|
|
20760 |
0.09 |
|
|
9012645 |
37.88 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
9012645 |
37.88 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
415448 |
1.75 |
|
|
1630 |
0.01 |
|
|
417078 |
1.75 |
|
|
|
|
|
|
2273372 |
9.56 |
|
|
|
|
|
|
6031070 |
25.35 |
|
|
2227257 |
9.36 |
|
|
3830278 |
16.10 |
|
|
159963 |
0.67 |
|
|
33674 |
0.14 |
|
|
240975 |
1.01 |
|
|
3395666 |
14.27 |
|
|
14361977 |
60.37 |
|
Total Public shareholding (B) |
14779055 |
62.12 |
|
Total (A)+(B) |
23791700 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
23791700 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of White Crystal Sugar
in India, and also engaged in the Co-generation of Electricity from Bagasse
Fuel and also produces Alcohol Products. |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Sugar |
MT |
NA |
11000 TCD |
168743* |
|
Molasses |
MT |
NA |
NA |
82388 |
|
Bagasse |
MT |
NA |
NA |
475227 |
|
Industrial Alcohol |
Liter |
45 KLPD |
45 KLPD |
6087978 |
|
Electricity |
KWH |
NA |
54.5 MW |
226329330 |
|
Organic Manure |
MT |
NA |
30 T/Day |
3684 |
* Including sugar produced from raw sugar
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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|
|
|
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|
Bankers : |
·
State Bank of India ·
State Bank of Mysore ·
State Bank of Hyderabad ·
UCO Bank ·
Bank of India ·
ICICI Bank Limited ·
Axis Bank Limited ·
Indian Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Srikishen and Company Chartered Accountants |
|
Address : |
Kanapathy
Towers, 3rd Floor, 1391/A-1, Sathy Road, Ganapathy, Coimbatore – 641006,
Tamilnadu, India |
|
|
|
|
Subsidiaries : |
·
Trident Sugars Limited ·
Rajshree Power Private
Limited |
|
|
|
|
Other Related Parties : |
·
RSCL Properties Private
Limited ·
Prana Ayurveda Coimbatore
Private Limited ·
Argead Enterprises Private
Limited ·
CAI Industries Private
Limited. ·
Rajshree Automotive Private
Limited ·
Aloha Tours and Travels
(India) Private Limited ·
Rajshree Spinning Mills
Limited ·
Raj Fabrics and Accessories
(CBE) Limited ·
Greenplus Manures Private
Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23791700 |
Equity Shares |
Rs.10/- each
|
Rs.237.917
Millions |
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 |
237.917 |
237.917 |
237.917 |
|
(b) Reserves & Surplus |
1058.945 |
956.093 |
973.807 |
|
(c) Money received
against share warrants |
15.870 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
1312.732 |
1194.010 |
1211.724 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
2931.130 |
3617.592 |
2796.254 |
|
(b) Deferred tax liabilities (Net) |
465.086 |
450.451 |
454.526 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
3396.216 |
4068.043 |
3250.780 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1965.841 |
1439.332 |
1357.699 |
|
(b)
Trade payables |
1069.719 |
703.135 |
587.909 |
|
(c)
Other current liabilities |
1970.939 |
1449.716 |
995.564 |
|
(d) Short-term
provisions |
183.166 |
178.475 |
192.063 |
|
Total Current Liabilities
(4) |
5189.665 |
3770.658 |
3133.235 |
|
|
|
|
|
|
TOTAL |
9898.613 |
9032.711 |
7595.739 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible
assets |
5555.165 |
4293.714 |
4178.906 |
|
(ii)
Intangible Assets |
27.273 |
33.218 |
0.000 |
|
(iii)
Capital work-in-progress |
131.623 |
1323.737 |
216.812 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
483.184 |
476.447 |
476.447 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
60.982 |
68.351 |
149.515 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
6258.227 |
6195.467 |
5021.680 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2362.794 |
1450.846 |
1312.736 |
|
(c)
Trade receivables |
601.507 |
662.846 |
315.443 |
|
(d) Cash
and cash equivalents |
77.471 |
94.330 |
180.889 |
|
(e)
Short-term loans and advances |
569.715 |
589.840 |
684.725 |
|
(f)
Other current assets |
28.899 |
39.382 |
80.266 |
|
Total
Current Assets |
3640.386 |
2837.244 |
2574.059 |
|
|
|
|
|
|
TOTAL |
9898.613 |
9032.711 |
7595.739 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8412.157 |
7086.117 |
6153.880 |
|
|
|
Other Income |
59.334 |
85.071 |
58.830 |
|
|
|
TOTAL (A) |
8471.491 |
7171.188 |
6212.710 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
6555.218 |
5244.947 |
4442.687 |
|
|
|
Employee benefits expense |
323.482 |
265.218 |
242.191 |
|
|
|
Exceptional items |
0.060 |
147.765 |
0.000 |
|
|
|
Extra ordinary Items |
0.000 |
2.500 |
250.000 |
|
|
|
Other expenses |
1182.486 |
787.923 |
738.613 |
|
|
|
Changes in
inventories of finished goods, work-in-progress and Stock-in-Trade |
(839.701) |
(129.170) |
198.496 |
|
|
|
TOTAL (B) |
7221.545 |
6319.183 |
5871.987 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1249.946 |
852.005 |
340.723 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
790.908 |
616.536 |
536.026 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
459.038 |
235.469 |
(195.303) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
341.550 |
257.259 |
230.309 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
117.488 |
(21.790) |
(425.612) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
14.636 |
(4.075) |
(56.437) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
102.852 |
(17.715) |
(369.175) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
98.893 |
116.608 |
485.783 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
201.745 |
98.893 |
116.608 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods Calculated on FOB Basis |
1217.052 |
910.624 |
879.365 |
|
|
|
Sale of Carbon Credits |
19.738 |
42.824 |
62.887 |
|
|
TOTAL EARNINGS |
1236.790 |
953.448 |
942.252 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
0.000 |
685.304 |
|
|
|
Capital Goods |
0.000 |
2.510 |
14.881 |
|
|
|
Consumable Spares |
0.000 |
0.202 |
0.000 |
|
|
TOTAL IMPORTS |
0.000 |
2.712 |
700.185 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
-
Basic |
4.32 |
(0.74) |
(16.04) |
|
|
|
-
Diluted |
4.12 |
(0.74) |
(16.04) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
2493.200 |
2406.200 |
|
Total Expenditure |
|
2108.000 |
2272.800 |
|
PBIDT (Excl OI) |
|
385.200 |
133.400 |
|
Other Income |
|
07.300 |
09.000 |
|
Operating Profit |
|
392.500 |
142.400 |
|
Interest |
|
203.800 |
212.300 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
188.700 |
(69.900) |
|
Depreciation |
|
87.300 |
88.300 |
|
Profit Before Tax |
|
101.400 |
(158.200) |
|
Tax |
|
12.600 |
(12.600) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
88.800 |
(145.600) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Net Profit |
|
88.800 |
(145.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.21
|
(0.25) |
(5.94) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.40
|
(0.31) |
(6.92) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.27
|
(0.30) |
(6.17) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
(0.02) |
(0.35) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.73
|
4.23 |
3.43 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.70
|
0.75 |
0.82 |
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
LITIGATION
DETAILS: CHENNAI COURT CASE STATUS
INFORMATION SYSTEM
|
FINANCIAL
PERFORMANCE:
The Company earned
an income of Rs.8471.491 Millions in the year 2012-13 as against Rs.7171.188
Millions during the previous year. The Company has earned a net profit of
Rs.102.852 Millions as against the net loss of Rs.17.715 Millions during the
previous year.
OPERATIONAL
PERFORMANCE:
SUGAR DIVISION:
The sugarcane
crushing in 2012-13 has increased substantially (17%) over the previous year on
account of adequate sugarcane planting in the command area of the factories and
as a consequence to our sustained efforts in the Research and Development and
cane extension activities. The average recovery of sugar was at 9.16% as
against 9.40% in the previous year. The Company produced 2.60 lakh tons of
sugar as against 2.28 lakh tons in the previous year, registering a 14%
increase. The Company sold (including exports) 2.37 lakh tons as against 2.23
lakh tons in the previous year.
COGENERATION
DIVISION:
The operations of
cogeneration division across all the Units were satisfactory. The total power
generated by the cogeneration division recorded a growth of 13%, largely owing
to higher crushing and bagasse availability, coupled with better capacity utilization.
During the year, the total power generated by all our Units was 3,103 lakh
units as against 2,751 lakh units. The company exported 1,975 lakh units as
against 1,877 lakh units in the previous year. The Company has received 44,442
units of carbon credits during the year ended 31st March 2013 which has been
accounted during the year.
DISTILLERY
DIVISION:
The distillery
units located at Unit I and III have produced 222.98 lakh litres of Alcohol in
2012-13 as against 92.76 lakh litres of Alcohol in the previous year and the
company has sold 209.31 lakh litres of alcohol against 95.41 lakh litres of
alcohol in the previous year. The increase in production of alcohol is due to
the successful commissioning of the new distillery plant at Gingee (Unit III) on
27th April 2012.
OPERATIONS OF
SUBSIDIARY COMPANIES:
TRIDENT SUGARS
LIMITED:
The wholly owned
subsidiary Company, Trident Sugars Limited, has crushed 4.25 lakh tons of
sugarcane during the financial year 2012-13 as against 4.07 lakh tons in the previous
year. The company produced 40,373 tons of sugar and sold 35,473 tons of sugar
during the financial year as against 42,897 tons of production and 47,168 tons
of sales in the previous year.
RAJSHREE POWER
PRIVATE LIMITED:
There were no operations of the said subsidiary company during the year.
FUTURE OUTLOOK:
The acute drought
conditions in the entire state of Tamilnadu are likely to impact crop
productivity and recovery of sugar in the current season. The resulting
reduction in sugar stocks should be offset by the surplus stocks likely to be
available at the end of this season. This would keep the domestic prices
relatively stable. The Company will see a period of consolidation in the coming
year when we stabilize and increase efficiencies in all its plants to extract
optimum returns on investments.
MANAGEMENT DISCUSSION AND ANALYSIS:
INDUSTRY SCENARIO
AND DEVELOPMENT
GLOBAL SCENARIO
Continuing its
earlier trend, Sugar year (SY) 2012-13 has seen spurt in the production of
sugar for the fourth consecutive year in row. World Sugar production has
reached record level of 180.4 million tons against 174.8 million tons in the
previous year. As per the second revision published by International Sugar
Organization (ISO), global consumption of sugar stands at 171.8 million tons as
against 168.4 million tons in the previous year. The quarterly market outlook
of February 2013 published by ISO indicates that Global statistical surplus
would increase to 8.5 million tons in SY 2012-13. The record high global total
can be largely attributed to better recovery in Brazil, the world's leading
producer. In the long term, World sugar production is expected to cross 209
million tons in 2020-21. The bulk of the additional sugar production is likely
to come from the developing countries and the main burden of growth will
continue to fall on Brazil. On the global front, the Indian sugar sector
occupies a noteworthy position of being the top producer after Brazil and the
largest consumer of the commodity in the world. India remains a key growth
driver for world sugar, growing above the average Asian and world consumption
growth. India is expected to boost production substantially to around 30million
tons of Sugar per year on average, by the end of this decade. Of course, annual
sugar output in India will continue to be subject to periodic swings in
response to the cyclical nature of the industry.
GLOBAL SUGAR
PRICES:
With the prolonged
sugar surplus, world sugar prices have been under sustained pressure. Raw sugar
prices in New York are struggling to rebound following a fall to nearly 3-year
lows. In the last week of March 2013 it plunged to 17.25 cents, the lowest
since July 2010. In the last week of May 2013, white sugar was trading around
$477.3 per ton and raw sugar around 16.55 cents. Given the forecasts of bumper
cane harvest in Brazil and healthy stock levels, the pressure is likely to
continue on raw sugar prices. However weather patterns, ethanol pricing
decision and the resultant conversion by Brazilian mills from cane to ethanol
production or vice versa would have a significant impact on the international
sugar price.
SUGAR SECTOR IN
INDIA:
In India, till end
of April 2013, the country has produced 24.52 million tons of sugar by crushing
around 243 million tons of sugarcane with an average 10.09% recovery. According
to Indian Sugar Mills Association (ISMA), sugar output will be 24.6 million
tons in 2012-13, beating consumption of 22.5 million tons and thus leaving a
surplus of 2.1 million tons. Thus production will outstrip annual domestic
demand for the third consecutive year and with a comfortable stock prices are
likely to remain range bound. Uttar Pradesh, Maharashtra, Karnataka, Gujarat,
Tamil Nadu, and Andhra Pradesh contribute to more than 85% of total sugar
production in India while UP and Maharashtra together contribute to 60% of
total production. Sugar demand in India has been growing steadily owing to
rapid economic growth, urbanization, growing population and strong demand from
bulk consumers. Bulk consumers such as soft drink manufacturers, bakeries,
confectionary, hotel and restaurant consumers account for 60 percent of milled
sugar demand. As per ISMA's forecast, by 2020-21, sugar consumption in India is
likely to touch 31.3 million tons. In Tamil Nadu, mills here have produced 1.55
million tons of sugar till end of April 2013 which is about 1% less than last
year. Sugar recovery is also down as of April to about 9.80% compared with
10.40% in 2011-12. Drought conditions across Tamil Nadu have hit sugarcane
output and sugar recovery in the current season. Based on the current sugarcane
registrations in the field, the coming season could also see a drop in
production. Inadequate electricity shortage and ground water depletion continue
to affect the sugarcane planting.
OUTLOOK:
The costs of sugar
production in the current sugar year have gone up compared to 2012 due to an
increase of sugarcane price by 16 -17% over the last season. Also, a decline in
sugarcane availability due to unfavourable climatic conditions would result in
lower capacity utilization, and thus an increase of overall cost of production.
However, mills near the Port have an option to import raw sugar to enhance the
capacity utilization thus optimizing the overall production costs. Meanwhile,
domestic sugar prices are likely to remain stable in 2013 considering the
comfortable stock position.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
·
Office Equipment
·
Furniture
·
Vehicles
·
Electrical Equipment
·
Tools and Equipment
·
Lab Equipment
·
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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.62.48 |
|
|
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
42 |
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.