1. Summary Information
|
|
|
Country |
|
|
Company Name |
MAWANA
SUGARS LIMITED |
Principal Name 1 |
Mr. Shriram Siddharth |
|
Status |
Sick company |
Principal Name 2 |
Mr. Bedi R.S. |
|
|
|
Registration # |
55-003413 |
|
Street Address |
5th Floor, Kirti
Mahal, 19, Rajendra Place, New Delhi-110 008, |
||
|
Established Date |
27.03.1961 |
SIC Code |
-- |
|
Telephone# |
91-11-25739103 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-11-25743659 |
Business Style 2 |
Seller |
|
Homepage |
Product Name 1 |
Chlor-Caustic |
|
|
# of employees |
Not Available |
Product Name 2 |
Sugar |
|
Paid up capital |
Rs.391,168,640/- |
Product Name 3 |
Ethanol |
|
Shareholders |
Total shareholding of Promoter and Promoter Group = 67.78% Total Public shareholding = 32.22% |
Banking |
Punjab
National Bank |
|
Public Limited Corp. |
Yes |
Business Period |
53 Years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
C |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries: |
-- |
Siel Financial Services Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.09.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
932,630,000 |
Current Liabilities |
5,618,510,000 |
|
Inventories |
2,385,680,000 |
Long-term Liabilities |
5,156,990,000 |
|
Fixed Assets |
5,292,870,000 |
Other Liabilities |
168,780,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
10,944,280,000 |
|
Invest& other Assets |
304,220,000 |
Retained Earnings |
(2,420,050,000) |
|
|
|
Net Worth |
(2,028,880,000) |
|
Total Assets |
8,915,400,000 |
Total Liab. & Equity |
8,915,400,000 |
|
Total Assets (Previous Year) |
10,154,680,000 |
|
|
|
P/L Statement as of |
|
(Unit: Indian Rs.) |
|
|
Sales |
12,872,030,000 |
Net Profit |
(2,880,550,000) |
|
Sales(Previous yr) |
16,978,830,000 |
Net Profit(Prev.yr) |
()810,350,000) |
MIRA
INFORM REPORT
|
Report Date : |
30.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
MAWANA SUGARS LIMITED |
|
|
|
|
Formerly Known
As : |
SIEL LIMITED SHRIRAM INDUSTRIAL ENTERPRISES
LIMITED |
|
|
|
|
Registered
Office : |
5th Floor, Kirti Mahal, 19, Rajendra Place, New Delhi-110 008 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.09.2013 |
|
|
|
|
Date of
Incorporation : |
27.03.1961 |
|
|
|
|
Com. Reg. No.: |
55-003413 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 391.170 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74100DL1961PLC003413 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELS22826G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS4902Q |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Seller of Chlor-Caustic, Sugar, and Production of Ethanol |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Sick company |
|
|
|
|
Payment Behaviour : |
Delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
The company is declared as a sick company under BIFR (Board for
Industrial and Financial Reconstruction). It has registered a case under section
15 (1) of the Sick Industrial Companies (special provisions) Act 1985 (SICA)
as Case No.63/2013. The net worth of the company is eroded. Payment terms are delayed. The company can be considered for business dealings on fully safe and
secured 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 – 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 |
CRISIL |
|
Rating |
Long Term Rating = D |
|
Rating Explanation |
The rating are in default or expected to be in default |
|
Date |
06.08.2013 |
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 : |
5th Floor, Kirti Mahal, 19, Rajendra Place, New Delhi-110 008, India |
|
Tel. No.: |
91-11-25739103 |
|
Fax No.: |
91-11-25743659 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Plot No.15, Institutional Area, Sector - 32, Gurgaon - 122 001, Haryana, India |
|
Tel. No.: |
91-124-4298000 |
|
Fax No.: |
91-124-4298300 |
|
|
|
|
Factory 1 : |
Mawana Sugar Works, Mawana, District Meerut – 250402, Uttar Pradesh, India |
|
|
|
|
Factory 2 : |
Titawi Sugar Complex, Village and P.O. Titawi, District
Muzaffarnagar – 251301, Uttar Pradesh, India |
|
|
|
|
Factory 3 : |
Nanglamal Sugar Complex, Garh Road, Village Nanglamal,
District Meerut – 250001, Uttar Pradesh, India |
|
|
|
|
Factory 4 : |
Siel Chemical Complex, Charatrampur, Vill. Khadauli / Sardargarh P.O. Box No.52, Rajpura, District Patiala –140401, Punjab, India |
DIRECTORS
As on 31.09.2013
|
Name : |
Mr. Shriram Siddharth |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Bedi R.S. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gupta Ravi Vira |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mehra A.K. |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Prof. Mohan Dinesh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Naveen Jain |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of
Shareholder |
No.
of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
26334248 |
67.78 |
|
|
1192 |
0.00 |
|
|
26335440 |
67.78 |
|
|
|
|
|
|
536 |
0.00 |
|
|
536 |
0.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
26335976 |
67.78 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
21682 |
0.06 |
|
|
457566 |
1.18 |
|
|
444758 |
1.14 |
|
|
3093 |
0.01 |
|
|
3093 |
0.01 |
|
|
927099 |
2.39 |
|
|
|
|
|
|
3213303 |
8.27 |
|
|
|
|
|
|
6329602 |
16.29 |
|
|
1725585 |
4.44 |
|
|
321780 |
0.83 |
|
|
313915 |
0.81 |
|
|
7865 |
0.02 |
|
|
11590270 |
29.83 |
|
Total Public shareholding (B) |
12517369 |
32.22 |
|
Total (A)+(B) |
38853345 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
263519 |
0.00 |
|
|
263519 |
0.00 |
|
Total (A)+(B)+(C) |
39116864 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Chlor-Caustic, Sugar, and
Production of Ethanol |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· State Bank of India · Punjab National Bank · State Bank of Hyderabad · State Bank of Travancore · State Bank of Mysore · Axis Bank Limited ·
U.P./District Co-operative Banks |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
A.F. Ferguson and Company Chartered Accountants |
|
Address : |
9, Scindla
House, Kastuba Gandhi Marg, New Delhi – 110001, India |
|
|
|
|
Subsidiaries: |
· Siel Financial Services Limited · Siel Industrial Estate Limited ·
Siel Infrastructure and Estate Developers
Private Limited (Formerly known as Avro Sales Private Limited) (w.e.f.
September 13, 2012) |
|
|
|
|
Enterprises over
which key management personnel have significant influence: |
· Usha International Limited (holding company upto June 20, 2013) ·
Mawana Foods Limited (subsidiary company upto
June 28, 2013) |
CAPITAL STRUCTURE
As on 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Shares |
Rs.10/- each |
Rs.1750.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39116864 |
Equity Shares |
Rs.10/- each |
Rs.391.170 Millions |
|
|
|
|
|
|
Reconciliation of
equity shares |
Number of shares |
Rs. In Millions |
|
Number of outstanding shares at the beginning of the year/period |
34,956,811 |
349.57 |
|
Shares issued during the year/period |
4,160,053 |
41.60 |
|
Number of outstanding shares as at the end of the year/period |
39,116,864 |
391.17 |
During the year ended September 30, 2013 the Company has issued and allotted 4,160,053 equity shares of Rs. 10 each fully paid-up at a price of Rs. 15.12 per share (including premium of Rs. 5.12 per share) under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 for preferential issue on November 02, 2012 to Usha International Limited (Promoter on the date of issue) pursuant to requirement of Corporate Debt Restructuring package.
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 except 1,192 equity shares held by Siel Infrastructure and Estate Developers Private Limited, a subsidiary which pursuant to second proviso of section 19(1) of the Companies Act, 2013, has no right to vote at meeting of the Company. Further, in respect of 263,519 equity shares (previous period 275,151 equity shares) held by the depositories on behalf of GDR holders, the depositories shall exercise voting rights in respect of deposited shares as per directions given by Board of Directors of the Company. Each holder of equity shares have a right to receive per share dividend declared by the Company. In event of liquidation of the Company, holder of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2013 (12 Months) |
30.09.2012 (18 Months) |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
391.170 |
349.570 |
349.570 |
|
(b) Reserves & Surplus |
(2420.050) |
439.200 |
1249.550 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
62.900 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
(2028.880) |
851.670 |
1599.120 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1438.430 |
1975.930 |
3399.420 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
157.230 |
155.830 |
158.230 |
|
(d) long-term provisions |
112.730 |
111.840 |
106.180 |
|
Total Non-current Liabilities (3) |
1708.390 |
2243.600 |
3663.830 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
3718.560 |
1951.760 |
3849.900 |
|
(b) Trade payables |
3086.990 |
2786.300 |
2260.370 |
|
(c) Other current
liabilities |
2374.290 |
2270.570 |
1813.600 |
|
(d) Short-term provisions |
56.050 |
50.780 |
60.750 |
|
Total Current Liabilities (4) |
9235.890 |
7059.410 |
7984.620 |
|
|
|
|
|
|
TOTAL |
8915.400 |
10154.680 |
13247.570 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5292.870 |
5738.050 |
6447.550 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
11.460 |
5.860 |
10.080 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
292.760 |
1562.510 |
317.470 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
195.620 |
502.370 |
390.880 |
|
(e) Other Non-current assets |
8.490 |
7.140 |
9.410 |
|
Total Non-Current Assets |
5801.200 |
7815.930 |
7175.390 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2385.680 |
1802.040 |
5247.910 |
|
(c) Trade receivables |
413.530 |
283.220 |
374.270 |
|
(d) Cash and cash
equivalents |
152.200 |
89.590 |
131.340 |
|
(e) Short-term loans and
advances |
156.330 |
158.250 |
316.850 |
|
(f) Other current assets |
6.460 |
5.650 |
1.810 |
|
Total Current Assets |
3114.200 |
2338.750 |
6072.180 |
|
|
|
|
|
|
TOTAL |
8915.400 |
10154.680 |
13247.570 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 (12 Months) |
30.09.2012 (18 Months) |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12872.030 |
16978.830 |
16271.210 |
|
|
|
Other Income |
90.390 |
205.050 |
587.360 |
|
|
|
TOTAL (A) |
12962.420 |
17183.880 |
16858.570 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
10622.260 |
8953.260 |
15122.340 |
|
|
|
Changes in inventories of finished goods and work in progress |
(603.200) |
3511.650 |
-3609.710 |
|
|
|
Employee benefits expense |
807.020 |
1124.090 |
1078.660 |
|
|
|
Other expenses |
2580.320 |
3186.700 |
2936.100 |
|
|
|
Exceptional items |
|
|
|
|
|
|
- Cane price difference |
0.000 |
465.530 |
0.000 |
|
|
|
- Loss/(Profit) on sale of non-current investments |
(187.460) |
(1215.450) |
0.000 |
|
|
|
Prior period adjustment |
1215.450 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
14434.390 |
16025.780 |
15527.390 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1471.970) |
1158.100 |
1331.180 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
902.370 |
1229.250 |
1124.410 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(2374.340) |
(71.150) |
206.770 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
504.330 |
766.290 |
792.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(2878.670) |
(837.440) |
(586.210) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1.880 |
(27.090) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(2880.550) |
(810.350) |
(586.210) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
CER Receipt |
92.56 |
196.53 |
80.930 |
|
|
|
Exports on FOB basis |
0.700 |
1309.350 |
316.110 |
|
|
|
Miscellaneous Receipts |
0.000 |
1.900 |
0.000 |
|
|
TOTAL EARNINGS |
93.260 |
1507.780 |
397.040 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores, spares and components |
54.840 |
115.560 |
53.760 |
|
|
|
Capital Goods |
7.990 |
0.780 |
0.850 |
|
|
TOTAL IMPORTS |
62.830 |
116.340 |
54.61 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(74.33) |
(23.18) |
(16.77) |
|
KEY RATIOS
|
PARTICULARS |
|
30.09.2013 (12 Months) |
30.09.2012 (18 Months) |
31.03.2011 |
|
PAT / Total Income |
(%) |
(22.22)
|
(4.72) |
(3.48) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(22.36)
|
(4.93) |
(3.60) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(33.42)
|
(9.75) |
(4.54) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.42
|
(0.98) |
(0.37) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(2.54)
|
4.61 |
4.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.34
|
0.33 |
0.76 |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
GENERAL INFORMATION
The Company is engaged in the business of manufacturing and selling of Chlor-Caustic at its unit Siel Chemical Complex, Rajpura, Punjab, producing Sugar and related by products from Sugar Cane at its units situated at Mawana Sugar Works, Titawi Sugar Complex, Nanglamal Sugar Complex and co-generation of Power and production of Ethanol.
OPERATIONS
1. SUGAR DIVISION
The year 2012-13 witnessed an increase in sugar production. The cane crush this season increased by 8% of cane crush during last season (2011-12). The cane crush this season was 34.06 lac MT as compared to 31.54 lac MT in the last season. The key operational figures are as follows:
|
Particulars |
Unit |
Sugar Season |
||
|
|
|
2010-11 |
2011-12 |
2012-13 |
|
Cane Crush |
Lac MT |
28.58 |
31.54 |
34.06 |
|
Recovery |
% |
9.11 |
8.60 |
8.96 |
|
Sugar Production |
Lac MT |
2.64 |
2.74 |
3.07 |
The sugar recovery in the western UP remains a major concern mainly due to deterioration of sugarcane quality on account of varietal degeneration. The average sugar recovery for this season remained below the long term average recovery in line with trend in nearby sugar factories.
The sugar business during the season continued to be under stress due to imbalance between cane costs, cost of production and sugar market prices.
MSL is continuing its cane development program including distribution of cane seeds of new varieties, fertilizers and insecticides etc. These will help in long term improvements in cane quality and yield
The surplus power generated by the Cogeneration plants was exported to the State grid.
The distillery unit continues to supply ethanol to the Oil Marketing Companies (OMC). The price of ethanol has improved from Rs. 27/litre to Rs. 35/litre. The ETP of distillery unit was augmented to streamline the production of ethanol and increasing capacity utilization. However our capacity utilisation was severely hampered this year due to restrictions imposed by Central Pollution Control Board on all Uttar Pradesh distilleries owing to the Kumbh Mela.
2. CHLOR ALKALI
DIVISION
The business performed well during the Q1 (2012-13) amidst good demand of Caustic Soda but with weak demand of Chlorine. During Quarter Q2, the production was adversely effected as demand of Caustic Soda was hit badly with closure of Paper Mills in the North. Surplus availability of Caustic Soda from low priced imports from Pakistan and increase in Power Tariff by Punjab State Power Corporation Limited from 1st April, 2013 impacted the operations in Quarter Q3. With improvement in Caustic Soda and Chlorine prices due to weakening of Rupee, production was restored to normal levels in Quarter Q4.
The products and their quality were well accepted in the market during the entire year.
Power contributes towards major portion of the input cost. The electricity requirement for the plant was met through Punjab State Power Corporation Limited and through Indian Energy Exchange under Open Access.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
SUGAR BUSINESS
Sugar Season 2012-13 started with comfortable stocks of 8.0 Mn. tons (equivalent to 4 months consumption). Artificially rising Sugar prices provided an opportunity for imports and once the higher production estimates started coming, then sugar prices started declining steeply. About 0.8 Mn. tons sugar was imported (both Raws and Whites) despite production estimates of 25 Mn. tons. Import Duty was marginally raised from 10% to 15% in the month of July, 2013.
The Rangarajan Committee recommendations of 2012-13 were partially notified as under:
1. Removal of Monthly Free Sale quota system and 10% Levy obligation.
2. States to deregulate cane reservation area. However, pricing, cane reservation area and minimum distance between two mills were left to the State Govts.
3. Linking of Cane Price to Sugar Price was left to SAP States.
Sugar season 2012-13 was one of the worst year for UP sugar mills wherein mills could not even cover the cost of cane and entire sugar industry suffered a loss of around Rs. 30000.000 Millions and could not pay cane dues. Uttar Pradesh cane arrears peaked at Rs. 77800.000 Millions and are at Rs. 24000.000 Millions at the end of the season.
In the World Sugar Market 2012-13 had another surplus year of 10 Mn. tons and sugar prices came down from 21.00 c/lb to 15.95 c/lb. Production was up 4% to 185 Mn. tons with consumption up by 2% to 175 Mn. tons. Major countries who added to surplus were Brazil, Thailand and India. Low world sugar prices help stand alone Refineries in India. Renuka was a major player with two Refineries one at Kandla for reexport and another at Haldia to pump into deficit State of West Bengal. Thus, imports happened and exports were not viable – hitting Indian sugar industry.
Sugar Season 2013-14
The Indian sugar outlook is very bleak. FRP went up from Rs.170/qtl to Rs. 210/qtl. Maharashtra and Karnataka sugar mills want to pay FRP along with a formula for sharing of sugar prices, but the same is not getting a positive response from farmers. Similarly, in UP mills have aggressively represented to Government and public in general highlighting the most distressing situation of their financial performance where they cannot pay more than Rs.220/qtl. The farmers meanwhile are agitating for Rs.320/- per qtl. Cane price. Sugar prices can only be expected to decline. The performance of sugar mills will depend upon how UP Government responds to industry requests on cane pricing 2012 - 13 was a good and well spread monsoon season. Cane area was up by 5.78 % at 5.3 Mn. Hectares. All India Production is expected at 25 Mn. Tons. Major States like Maharashtra, Uttar Pradesh, Karnataka, and Tamilnadu are expected to produce the same as last year.
With season starting with a stock of 8.6 Mn. Tons and with the All India Production estimates of 25 Mn. Tons and consumption at 23.5 Mn. Tons, a surplus of 1.5 Mn. Tons will get added to stock which will be highest ever in the history of India.
The World Sugar Balance for 2013-14 is expected to remain in surplus of around 4.5 Mn. Tons.
Market Scenario and
Outlook
During the year 2012-13, Caustic Soda and Chlorine prices remained highly volatile. As a result of global recession, the demand of Chlorine in the Vinyl and PVC segments remained sluggish resulting in abysmally low prices for Chlorine during the beginning of the year. Caustic Soda prices, however, remained at reasonable levels. The trend changed in Quarter Q2 when demand of Caustic Soda came under severe pressure as several Paper Units in the North Zone closed down temporarily. The situation aggravated with inflow of low priced Caustic Soda from Middle East countries into West Zone and from Pakistan into the North zone.
The Chlorine prices improved as overall production was reduced so as to match the sudden drop in Caustic Soda demand. The demand of Chlorine also improved as imports of Chlorine derivatives were less because of weaker rupee. During the second half of the year, prices of Caustic Soda were partially restored. The Industry witnessed a drop of nearly Rs 3000-4000 PMT in the ECU (Electrochemical Unit) realizations compared to the previous year.
In the year 2013-14, with a growth of around 5%, the domestic consumption of Caustic Soda is expected to reach 2.96 Million MT. Overall Production would be largely governed by the demand growth in Chlorine. The limitation in lower demand of Chlorine compared to Caustic Soda would require Caustic Soda demand to be partially met through imports.
The coming year on Indian market looks to be strong as prices of both Caustic Soda and Chlorine are likely to remain firm because of weak rupee and imports being more expensive. The demand for Caustic will be driven by higher consumption from the key consuming industries such as Aluminium, Paper and Pulp, Fibre, Soaps etc. Due to low prices of EDC in the international markets, PVC manufacturers in the country would continue to import EDC rather than manufacturing EDC by sourcing Chlorine from the domestic markets. Exports of CPW would have a good potential.
The Company is sourcing Power through Punjab State Power Corporation Limited and through Indian Energy Exchange under open access. With the commissioning of two Power Plants (Capacity addition around 1400 MW) one at Rajpura and another at Goindwal Sahib in Punjab, the power availability in the State will improve.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10433835 |
27/06/2013 * |
54,000,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
B78423373 |
|
2 |
10433825 |
27/06/2013 * |
54,000,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
B78561685 |
|
3 |
10421230 |
12/04/2013 |
600,000,000.00 |
UTTAR PRADESH CO-OPERATIVE BANK LIMITED |
2, MAHATMA GANDHI MARG,, LUCKNOW, LUCKNOW, UTTAR |
B73616013 |
|
4 |
10420237 |
12/04/2013 |
500,000,000.00 |
UTTAR PRADESH CO-OPERATIVE BANK LIMITED |
2, MAHATMA GANDHI MARG,, LUCKNOW, LUCKNOW, UTTAR |
B73334997 |
|
5 |
10418469 |
25/02/2013 |
1,000,000,000.00 |
UTTAR PRADESH CO-OPERATIVE BANK LIMITED |
2, MAHATMA GANDHI MARG,, LUCKNOW, LUCKNOW, UTTAR |
B72800444 |
|
6 |
10404326 |
23/02/2013 * |
252,080,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
B68897461 |
|
7 |
10298976 |
27/06/2011 |
2,471,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, JAWAHAR VYAPAR BHAWAN, TOLSTOY MARG,, NEW DELHI, DELHI - 110001, INDIA |
B17586074 |
|
8 |
10233187 |
05/08/2010 |
180,366,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
A91361295 |
|
9 |
10231965 |
04/08/2010 |
180,366,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
A90840786 |
|
10 |
10210407 |
17/10/2011 * |
8,202,708,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, JAWAHAR VYAPAR BHAWAN, |
B25115338 |
|
11 |
10187796 |
08/12/2009 * |
47,200,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
A74527953 |
|
12 |
10173830 |
08/09/2009 |
346,200,000.00 |
STATE BANK OF INDIA |
14TH FLOOR INDUSTRIAL FINANCE BRANCH, STC BUILDIN G, 1, TOLSTOY MARG,, NEW DELHI, DELHI - 110001, INDIA |
A69024453 |
|
13 |
10169864 |
23/06/2009 |
350,000,000.00 |
PUNJAB NATIONAL BANK |
MUZAFFARNAGAR CITY, UTTAR PRADESH, MUZAFFARNAGAR, |
A67280933 |
|
14 |
10116641 |
21/08/2008 * |
289,080,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
A44354694 |
|
15 |
10116642 |
21/08/2008 * |
180,760,000.00 |
PRESIDENT OF INDIA |
MINISTRY OF CONSUMERS AFFAIRS, THROUGH IFCI LIMITED, IFCI TOWER, 61, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
A44354892 |
|
16 |
10103084 |
21/12/2010 * |
1,389,470,000.00 |
AXIS BANK LIMITED |
STATESMAN HOUSE, 148, BARAKHAMBA ROAD,, NEW DELHI, DELHI - 110001, INDIA |
B01249515 |
|
17 |
10095801 |
29/09/2008 * |
30,000,000.00 |
STATE BANK OF MYSORE |
3,4 AND 5 DDA BUILDING, NEHRU PLACE,, NEW DELHI, DELHI - 110019, INDIA |
A49576457 |
|
18 |
10101093 |
07/03/2012 * |
704,000,000.00 |
PUNJAB NATIONAL BANK |
MUZAFFARNAGAR CITY, MUZAFFARNAGAR CITY, UTTAR PRADESH - 251002, INDIA |
B36773786 |
|
19 |
10089513 |
13/02/2008 |
123,000,000.00 |
PUNJAB NATIONAL BANK |
MUZAFFARNAGAR CITY, MUZAFFARNAGAR, MUZAFFARNAGAR, |
A33201674 |
|
20 |
10090374 |
11/02/2008 |
58,900,000.00 |
STATE BANK OF TRAVANCORE |
R.K. PURAM, BHIKAJI CAMA PLACE, NEW DELHI, DELHI - 110066, INDIA |
A33556572 |
* Date of charge modification
FIXED ASSETS
· Land
· Buildings
· Plant and equipment
· Office equipment
· Furniture and fixtures
· Vehicles
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.62.20 |
|
|
1 |
Rs.103.12 |
|
Euro |
1 |
Rs.84.96 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
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.