MIRA INFORM REPORT

 

 

Report Date :

04.07.2014

 

IDENTIFICATION DETAILS

 

Name :

SAGAR CEMENTS LIMITED

 

 

Registered Office :

Plot No.111, Road No.10, Jubilee Hills, Hyderabad – 500033, Telangana

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

15.01.1981

 

 

Com. Reg. No.:

01-002887

 

 

Capital Investment / Paid-up Capital :

Rs.173.880 Millions

 

 

CIN No.:

[Company Identification No.]

L26942TG1981PLC002887

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDS00253B

 

 

PAN No.:

[Permanent Account No.]

AACCS8680H

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Seller of Cement and Clinker.

 

 

No. of Employees :

430 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 10658000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track.

 

The rating is constrained on account of company’s moderate financial performance marked by sharp dip in profitability of the company during financial year 2013 and cyclical nature of end user industry with intense competition from other players.

 

However, trade relations are fair. Business is active. Payment terms are slow but correct.

 

The company can be considered for business dealing with some caution.

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

NEWS

 

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

 

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

 

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

 

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

 

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

 

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

 

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

 

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

 

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

 

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities: BB+

Rating Explanation

Inadequate degree of safety and high credit risk.

Date

April 15, 2014

 

Rating Agency Name

CARE

Rating

Short Term Bank facilities: A4+

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

April 15, 2014

 

 

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.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON CO-OPERATIVE

 

Contact No. 91-40-23351571.

 

 

LOCATIONS

 

Registered/ Administrative Office :

Plot No.111, Road No.10, Jubilee Hills, Hyderabad – 500033, Telangana, India

Tel. No.:

91-40-23351571/ 23356572

Fax No.:

91-40-23356573

E-Mail :

info@sagarcements.in

sounder@sagarcements.in

Website :

http://www.sagarcements.com

 

 

Factory 1 :

Mattampally, Via Huzurnagar, Nalgonda District – 508204, Andhra Pradesh, India

Tel. No.:

91-8683-247039

 

 

Factory 2 :

Pedaveedu, Via Huzurnagar, Nalgonda District – 508204, Andhra Pradesh, India

Tel. No.:

91-8683-216533/ 247333

 

 

DIRECTORS

 

(AS ON 31.03.2013)

 

Name :

Mr. O. Swaminatha Reddy

Designation :

Chairman - Independent and Non Executive

Qualification :

Charted account and Financial Management

 

 

Name :

Mr. S. Veera Reddy

Designation :

Managing Director

Date of Appointment :

13.07.1991

 

 

Name :

Dr. S. Anand Reddy

Designation :

Joint Managing Director

Date of Birth/Age :

10.06.1964

Qualification :

M.B.B.S.

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

 

 

Name :

Mr. S. Sreekanth Reddy

Designation :

Executive Director

Date of Birth/Age :

27.08.1971

Qualification :

B.E. (I & P) and PG Diploma in cement technology

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

 

 

Name :

Mr. K. Thanu Pillai

Designation :

Independent and Non Executive Director

Qualification :

MBA and CAIIB

 

 

Name :

Mr. Glibert Noel Claude Natta

Designation :

Non Executive Director

Date of Birth/Age :

24.12.1948

Qualification :

ESSEC Paris

Experience in specific functional areas :

Banking and Finance

Directorships in other companies :

·         Sinai Cement CY, Egypt

·         Konya Cemento, Turkey

·         Bastas Baskent CiM, Turkey

 

 

Name :

Mr. Werner C.R. Poot

Designation :

Non Executive Director (up to 28.09.2012)

 

 

Name :

Mr. John-Eric Fernand Pascal Cesar Bertrand

Designation :

Non Executive Director (w.e.f.17.10.2012)

 

 

Name :

Mr. K. Rajendra Prasad

Designation :

APIDC Nominee Director

 

 

Name :

Mr. G. Suneel Babu

Designation :

IDBI Nominee and Independent Director (w.e.f 29.04.2011)

 

 

KEY EXECUTIVES

 

Name :

Mr. R. Soundararajan

Designation :

Company Secretary

 

 

Senior Management Team:

 

 

Corporate Office:

Name :

Mr. M.S.A. Narayana Rao

Designation :

Group President

 

 

Name :

Mr. M.V. Subba Rao

Designation :

Senior Vice President

 

 

Name :

Mr. K. Ganesh

Designation :

Vice President Project

 

 

Name :

Mr. P.S. Prasad

Designation :

Vice President - Marketing

 

 

Name :

Mr. O. Anji Reddy

Designation :

Chief General Manager (Electrical and Installations)

 

 

Name :

Mr. K.V. Ramana

Designation :

Chief General Manager - Mines

 

 

Name :

Mr. K. Prasad

Designation :

General Manager (Finance)

 

 

 

Sites:

Name :

Mr. P. Vasudeva Reddy

Designation :

Vice President (Works)

 

 

Name :

Mr. M.V. Ramana Murthy

Designation :

General Manager (Finance)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 31.03.2014)

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

8690514

49.98

http://www.bseindia.com/include/images/clear.gifBodies Corporate

344785

1.98

http://www.bseindia.com/include/images/clear.gifSub Total

9035299

51.96

 

 

 

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

9035299

51.96

 

 

 

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

1302183

7.49

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

4050

0.02

http://www.bseindia.com/include/images/clear.gifSub Total

1306233

7.51

 

 

 

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

4512193

25.95

 

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Millions

1319208

7.59

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Millions

166693

0.96

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

1048388

6.03

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

1000000

5.75

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

27272

0.16

http://www.bseindia.com/include/images/clear.gifClearing Members

2578

0.01

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

18538

0.11

http://www.bseindia.com/include/images/clear.gifSub Total

7046482

40.52

 

 

 

Total Public shareholding (B)

8352715

48.04

 

 

 

Total (A)+(B)

17388014

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

 

 

 

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

17388014

100.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Seller of Cement and Clinker.

 

 

Products :

Products Description

Item Code No.

 

Cement

252300

Clinker

252310

 

 

GENERAL INFORMATION

 

No. of Employees :

430 (Approximately)

 

 

Bankers :

·         State Bank of Hyderabad

·         State Bank of India

·         IDBI Bank Limited

 

 

Facilities :

Secured Loans

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG-TERM BORROWING

 

 

Term Loans from Financial Institutions - Indian Rupees

 

 

Andhra Pradesh State Financial Corporation (Note No.5)

18.194

30.030

Term Loans from Banks - Indian Rupees

 

 

IDBI Bank Limited (Note. No.1)

0.000

150.000

State Bank of India (Note No.2)

0.000

72.596

State Bank of Hyderabad (Note No.3)

0.000

71.509

State Bank of Hyderabad (Note No.4)

237.500

360.000

L & T Finance Limited (Note No.6)

160.491

0.000

L & T Infrastructure Finance Co. Limited (Note No.7)

300.000

0.000

State Bank of India (Note No.8)

232.500

0.000

Hire Purchase Loans

 

 

Vehicle Loans from Banks (Refer Note No.9)

27.746

64.086

SHORT-TERM BORROWING

 

 

Cash Credit Loans from Banks

 

 

State Bank of Hyderabad

298.512

351.584

State Bank of India

260.437

290.496

IDBI Bank Limited

101.872

112.208

Bills Discounting

25.078

22.839

Total

1662.330

1525.348

 

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%.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P. Srinivasan and Company

Chartered Accountants

Address :

H.No.12-13-422, Street No.1, Lane Opposite Bank of Baroda, Tarnaka, Secunderabad – 500017, Andhra Pradesh, India

 

 

Cost Auditors :

 

Name :

Narasimha Murthy and Company

Chartered Accountants

Address :

104, Pavani Estate, Y. V. Rao Mansion, Himayathnagar, Hyderabad – 500029, Andhra Pradesh, India

 

 

Associates :

Vicat Sagar Cement Private Limited, India

 

 

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 records 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

 

 

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

 

 

 

 

 

 

 

 

 

 

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns.)

(INR in Mlns.)

(INR in Mlns.)

Share Capital

173.880

173.880

173.880

Reserves & Surplus

2042.590

2423.130

2490.585

Net worth

2216.470

2597.010

2664.465

 

 

 

 

long-term borrowings

1198.350

798.282

1026.492

Short term borrowings

756.640

777.127

685.899

Total borrowings

1954.990

1575.409

1712.391

Debt/Equity ratio

0.882

0.607

0.643

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Revenue from Operations

4,250.900

5,948.272

5,585.155

 

 

39.930

(6.105)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Revenue from Operations

4,250.900

5,948.272

5,585.155

Profit

174.120

441.164

87.798

 

4.10%

7.42%

1.57%

 

 

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

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

 

Particulars

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.

 

INDEX OF CHARGES:

 

S.

No.

Charge ID

Date of Charge Creation/

Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10493282

29/03/2014

90,800,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

C04229233

2

10445314

01/03/2014 *

400,000,000.00

STATE BANK OF HYDERABAD

PANJAGUTTA BRANCH, `ROSE MODE', H.NO.6-3-542/2, POST BOX NO.1525, HYDERABAD, ANDHRA PRADESH - 500082, INDIA

B97963748

3

10403585

18/09/2013 *

980,000,000.00

L&T INFRASTRUCTURE FINANCE COMPANY LIMITED

MOUNT POONAMALLEE ROAD, MANAPAKKAM, CHENNAI, TAMIL NADU - 600089, INDIA

B85231413

4

10392242

18/09/2013 *

200,000,000.00

L & T FINANCE LIMITED

L&T HOUSE,, BALLARD ESTATE,, MUMBAI, MAHARASHTRA 
- 400001, INDIA

B84970789

5

10333560

16/01/2012

90,925,568.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B31239643

6

10252704

18/11/2010

50,000,000.00

ANDHRA PRADESH STATE FINANCIAL CORPORATION

POST BOX NO.165, CHIRAGE ALI LANE. ABIDS, HYDERABAD, ANDHRA PRADESH - 500001, INDIA

A98648769

7

10249562

24/06/2011 *

450,000,000.00

STATE BANK OF HYDERABAD

PUNJAGUTTA BRANCH, H.NO.6-3-542/2, `ROSE MODE', P 
UNJAGUTTA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA

B14947162

8

10057931

06/01/2014 *

250,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, 6-3-1109/1, RAJBHAVAN 
ROAD, NAVABHARAT CHAMBERS, HYDERABAD, ANDHRA PRADESH - 500082, INDIA

B95126223

9

90126147

09/11/2011 *

1,020,000,000.00

STATE BANK OF HYDERABAD (LEAD BANK)

PUNJAGUTTA BRANCH, H.NO.6-3-542/2, ROSE MADE, PUNJAGUTTA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA

B24653875

10

90129524

22/01/1997

8,037,425.00

DCL FINANCE LTD.

DECCAN CHAMBERS SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA

-

11

90130817

22/01/1997

8,037,425.00

DCL FINANCE LTD.

DECCAN CHAMBERS SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA

-

12

90125931

17/09/1996

1,996,000.00

PRIYADARSHINI LEASING AND FINANCE LTD.

8-3-961/B SRINAGAR COLONY, HYDERABAD, ANDHRA PRADESH - 500873, INDIA

-

13

90125436

26/03/1985 *

3,900,000.00

STATE BANK OF HYDERABAD

HAZURNAGAR, MALGONDA, ANDHRA PRADESH, INDIA

-

14

90127241

26/03/1985 *

3,900,000.00

STATE BANK OF INDIA

YALLA REDDY GUDA, HYDERABAD, ANDHRA PRADESH, INDIA

-

 

* Date of charge modification

 

 

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, India Prisons Service, Interpol, etc.

 

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]         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.59.72

UK Pound

1

Rs.102.45

Euro

1

Rs.81.54

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

34

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

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

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