MIRA
INFORM REPORT
|
Report Date : |
13.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
ANDHRA CEMENTS LIMITED |
|
|
|
|
Registered
Office : |
Sri Durga Cement Works, Sri Durgapuram, Guntur – 522414, Andhra
Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
01.11.1936 |
|
|
|
|
Com. Reg. No.: |
01-002379 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 2935.244
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L26942AP1936PLC002379 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Selling of Cement including Ordinary
Portland Cement, Portland Pozolana Cement, Portland Slag Cement and Ground
Granulated Blast Slag. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 13300000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a part of “Jaypee Infra Ventures”. It is a well-established
company having moderate track record. The management has not yet commenced its commercial operations under
the new management after taking over of the company from the earlier
promoters “Duncan Goenka Group”. The work on revival of the plants is in
process and the commercial production of the cement is expected to be
commenced during 2014-15. Further, Durga Cement works plant of the company had recommenced its
trial run operations but the power holiday imposed by the State Government
led to discontinuation of operations, whereas the Vishaka Cement works plant
is still under revival. Moreover, the company possesses a moderate financial profile marked by
low reserves, augmenting payables and leveraged capital structure during
FY14. The ratings also take into consideration, the parental support
extended via operating, marketing and distribution activities apart from
equity infusion and funding support. Trade relations are fair. Business is active. Payment terms are
reported as unknown. In view of experienced and resourceful promoters, the subject can be
considered for business dealings with slight 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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab Emirates
().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank facilities : BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
October 09, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term Bank facilities : A3 |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
October 09, 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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-8649-257429)
LOCATIONS
|
Registered Office/ Unit 1 : |
Sri Durga Cement Works, Sri Durgapuram, Guntur – 522414, Andhra
Pradesh, India |
|
Tel. No.: |
91-8649-257429 |
|
Fax No.: |
91-8649-257429 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Unit 2 : |
Visakha
Cement Works (VCW) Parlupalem
(Village), Durganagar (Post), Visakhapatnam, Andhra Pradesh, India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Manoj Gaur |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pankaj Gaur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Naveen Kumar Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K.N. Bhandari |
|
Designation : |
Director |
|
Date of Birth/Age : |
01.03.1942 |
|
Qualification : |
BA, LLB |
|
Expertise in
specific functional area (experience in approx. years) : |
Finance and Insurance Management. (51 Years) |
|
Date of Appointment : |
21.08.2007 |
|
Other Directorship : |
· Hindalco Inds. Limited Suraj Diamonds and Jewellery Limited Agriculture Insurance Company Limited Saurashtra Cements Limited Shsristi Infrastructure Development Corp. Limited Credence Logistics Limited Magna Fin. Corp. Limited Magna HDI General Insurance Company Limited NRC Limited Jaybharat Textiles and Real Estate Limited Midas Asset Reconstruction Company Private Limited |
|
|
|
|
Name : |
Mr. S.D.M. Nagpal |
|
Designation : |
Director |
|
Date of Birth/Age : |
02.02.1942 |
|
Qualification : |
MA. AICWA |
|
Expertise in
specific functional area (experience in approx. years) : |
Finance, Accounts and Systems (49 Years) |
|
Date of Appointment : |
15.11.2011 |
|
Other Directorship : |
NTPC-SAIL Power Company Private Limited Bhilai Jaypee Cement Limited Kanpur Fertilizers and Cement Limited Jaypee Uttar Bharat Vikas Private Limited |
|
|
|
|
Name : |
Mr. R.K. Pandey |
|
Designation : |
Director |
|
Date of Birth/Age : |
20.01.1940 |
|
Qualification : |
M.Com, LL.B, FCS, DBA |
|
Expertise in
specific functional area (experience in approx. years) : |
Finance , Legal and Corp. Advisory Services, (51 Years) |
|
Date of Appointment : |
15.11.2011 |
|
Other Directorship : |
· PTC Inds. Limited Precise Laboratories Private Limited Kamdhenu Ispat Limited British Health Products (India) Limited Hanung Toys and Textiles Limited Shree Rajasthan Syntex Limited Morgan Ventures Limited Jindal Polyfilms Limited Mefcom Capital Markets Limited Ricoh India Limited Welcure Drugs and Pharmaceuticals Limited Sanghi Inds. Limited Kanpur Fertilizers and Cement Limited Jaypee Uttar Bharat Vikas Private Limited Uninet Infra Technologies Private Limited Steren Impex Private Limited Jaypee Development Corporation Limited |
|
|
|
|
Name : |
Mr. R.K. Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Harish K. Vaid |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shailendra Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.K. Taparia |
|
Designation : |
Director (w.e.f. 18.05.2012) |
|
|
|
|
Name : |
Mr. V. K. Jain |
|
Designation : |
Director (w.e.f. 18.05.2012) |
|
|
|
|
Name : |
Mr. Vinayak R Mavinkurve |
|
Designation : |
Nominee Director (IDFC Limited) (Upto. 15.10.2012) |
KEY EXECUTIVES
|
Name : |
Mr. H.K. Chhabra |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. G. Tirupati Rao |
|
Designation : |
GM - Legal and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
176013352 |
59.97 |
|
|
176013352 |
59.97 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
176013352 |
59.97 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
12753 |
0.00 |
|
|
302305 |
0.10 |
|
|
7390000 |
2.52 |
|
|
7705058 |
2.63 |
|
|
|
|
|
|
92473244 |
31.50 |
|
|
|
|
|
|
10492904 |
3.57 |
|
|
5576733 |
1.90 |
|
|
1259201 |
0.43 |
|
|
963563 |
0.33 |
|
|
284788 |
0.10 |
|
|
10850 |
0.00 |
|
|
109802082 |
37.41 |
|
Total Public shareholding
(B) |
117507140 |
40.03 |
|
Total (A)+(B) |
293520492 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
293520492 |
100.00 |
(1) Indian
Bodies Corporate
Sub Total
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million 
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Cement including Ordinary
Portland Cement, Portland Pozolana Cement, Portland Slag Cement and Ground
Granulated Blast Slag. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
· State Bank of Mysore Yes Bank Limited Karur Vysya Bank Limited Axis Bank Limited State Bank of India |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial
Institutions : |
· HDFC Limited IDFC Limited |
|
|
|
|
Auditors : |
|
|
Name : |
Chaturvedi and Partners Chartered Accountants |
|
Address : |
212A,Chiranjiv Towers, Nehru Place, New Delhi - 110019, India |
|
|
|
|
Ultimate Holding
Company : |
Jaypee Infra Ventures Private Limited |
|
|
|
|
Holding Company : |
Jaypee Development Corporation Limited |
|
|
|
|
Associate/
Co-subsidiary Company : |
· Jaypee Development Corporation Limited ISG Traders Limited, (upto February 9, 2012) Boydell Media Private Limited, (Upto February 9, 2012) Jaiprakash Associates Limited |
|
|
|
|
Enterprise over which,
companies above have significant influence : |
· Jaypee Cement Corporation Limited Himalayaputra Aviation Limited JIL Information Technology Limited Bhilai Jaypee Cement Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 4000.000 Millions |
|
10,000,000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 1000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 5000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
293,520,492 |
Equity Shares |
Rs. 10/- each |
Rs. 2935.205
Millions |
|
|
Add: Forfeited Shares |
|
Rs. 0.039
Million |
|
|
|
|
|
|
|
Total |
|
Rs. 2935.244 Millions |
Terms / Rights
attached to Equity Shares
The Company has
only one class of equity shares having a face value of Rs.10 per share and each
holder of equity shares is entitled to one vote per share.
In the event of
liquidation, the holders of equity shares will be entitled to receive the
remaining assets of the Company, after distribution of all preferential
amounts, in proportion to their shareholdings.
Shares held by the
promoters of the Company:
|
Name of the Shareholder |
No. of Shares at
March 31, 2013 |
No. of Shares at
March 31, 2012 |
|
Jaypee
Development Corporation Limited - Holding Company |
176,013,352 |
175,529,192 |
Shareholders
holding more than 5% shares of the Company:
|
Name of the Shareholders |
No. of Shares at
March 31, 2013 |
%
held As at March 31, 2013 |
|
Jaypee
Development Corporation Limited - Holding Company |
176,013,352 |
59.97 |
|
Infrastructure
Development Finance Company Limited |
28,784,722 |
9.81 |
|
Housing
Development Finance Corporation Limited |
25,957,055 |
8.84 |
|
Boydell Media Private Limited |
25,913,054 |
8.83 |
The Reconciliation
of the number of shares outstanding is set-out below:
|
Name of the Shareholder |
No. of Shares at
March 31, 2013 |
|
Number of shares at the beginning |
293,520,492 |
|
Add: Shares issued during the period |
-- |
|
Number of shares at the end |
293,520,492 |
Forfeited shares (amount originally paid up) is Rs.0.039 Million.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 (12 Months) |
31.03.2012 (9 Months) |
30.06.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2935.244 |
2935.244 |
1460.244 |
|
(b) Reserves & Surplus |
388.736 |
658.065 |
313.256 |
|
(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) |
3323.980 |
3593.309 |
1773.500 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5513.857 |
3000.000 |
3450.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
31.327 |
8.082 |
13.723 |
|
Total Non-current
Liabilities (3) |
5545.184 |
3008.082 |
3463.723 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
521.796 |
277.142 |
231.217 |
|
(b)
Trade payables |
323.980 |
176.431 |
177.256 |
|
(c)
Other current liabilities |
1455.383 |
1571.910 |
1787.896 |
|
(d) Short-term
provisions |
1.764 |
41.071 |
50.329 |
|
Total Current
Liabilities (4) |
2302.923 |
2066.554 |
2246.698 |
|
|
|
|
|
|
TOTAL |
11172.087 |
8667.945 |
7483.921 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
660.787 |
625.337 |
678.610 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
7917.734 |
5596.225 |
5253.944 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.002 |
0.002 |
0.002 |
|
(c) Deferred tax assets (net) |
859.007 |
725.591 |
836.703 |
|
(d) Long-term Loan and Advances |
524.897 |
372.614 |
343.113 |
|
(e) Other
Non-current assets |
9.712 |
37.117 |
14.446 |
|
Total Non-Current
Assets |
9972.139 |
7356.886 |
7126.818 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
436.733 |
114.296 |
119.018 |
|
(c)
Trade receivables |
53.167 |
53.167 |
63.456 |
|
(d) Cash
and cash equivalents |
265.691 |
1036.229 |
35.763 |
|
(e)
Short-term loans and advances |
233.550 |
47.993 |
63.002 |
|
(f)
Other current assets |
210.807 |
59.374 |
75.864 |
|
Total
Current Assets |
1199.948 |
1311.059 |
357.103 |
|
|
|
|
|
|
TOTAL |
11172.087 |
8667.945 |
7483.921 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 (12 Months) |
31.03.2012 (9 Months) |
30.06.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
0.000 |
0.278 |
629.810 |
|
|
|
Other Income |
53.013 |
22.819 |
31.447 |
|
|
|
TOTAL (A) |
53.013 |
23.097 |
661.257 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
0.000 |
0.000 |
155.626 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
0.000 |
0.000 |
44.552 |
|
|
|
Employees benefits expense |
104.565 |
216.493 |
59.089 |
|
|
|
Other expenses |
213.023 |
54.303 |
564.877 |
|
|
|
Excise Duty Paid |
0.000 |
(0.062) |
2.117 |
|
|
|
Exceptional Items |
0.000 |
(550.887) |
0.000 |
|
|
|
TOTAL (B) |
317.588 |
(280.153) |
826.261 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(264.575) |
303.250 |
(165.004) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
62.063 |
88.716 |
133.094 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(326.638) |
214.534 |
(298.098) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13.623 |
6.751 |
12.794 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(340.261) |
207.783 |
(310.892) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(133.415) |
111.112 |
(64.884) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(206.846) |
96.671 |
(246.008) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
81.316 |
0.000 |
2.108 |
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(0.70) |
0.56 |
(1.71) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 (12 Months) |
31.03.2012 (9 Months) |
30.06.2011 |
|
PAT / Total Income |
(%) |
(390.18) |
418.54 |
(37.20) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.00 |
74742.09 |
(49.36) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(14.21) |
8.86 |
(22.31) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.10) |
0.06 |
(0.18) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.82 |
0.91 |
2.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.52 |
0.63 |
0.16 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.06.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
1460.244 |
2935.244 |
2935.244 |
|
Reserves & Surplus |
313.256 |
658.065 |
388.736 |
|
Net
worth |
1773.500 |
3593.309 |
3323.980 |
|
|
|
|
|
|
long-term borrowings |
3450.000 |
3000.000 |
5513.857 |
|
Short term borrowings |
231.217 |
277.142 |
521.796 |
|
Total
borrowings |
3681.217 |
3277.142 |
6035.653 |
|
Debt/Equity
ratio |
2.076 |
0.912 |
1.816 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.06.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
629.810 |
0.278 |
0.000 |
|
|
|
(99.956) |
(100.000) |
NET PROFIT MARGIN
|
Net
Profit Margin |
30.06.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
629.810 |
0.278 |
0.000 |
|
Profit/ (Loss) |
(246.008) |
96.671 |
(206.846) |
|
|
(39.06%) |
34773.74% |
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last three
years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
LITIGATION DETAILS
|
CP 169 / 2012 |
CPSR 5551 / 2012 |
CASE IS:PENDING |
|
|
PETITIONER |
|
RESPONDENT |
|
|
M/S.ASHOK
POLYMERS LIMITED. |
VS |
M/S.ANDHRA
CEMENTS LIMITED. |
|
|
PET.ADV. : RAJI
REDDY |
|
RESP.ADV. : RAMESH
BABU |
|
|
SUBJECT: COMPANY
PETITION |
|
DISTRICT: HYDERABAD |
|
|
FILING
DATE: 13-09-2012 |
POSTING
STAGE : FOR ADMISSION & HEARING |
|
|
|
REG.
DATE : 20-09-2012 |
LISTING
DATE : 11-06-2014 |
STATUS : NOTICES |
|
|
HON'BLE
JUDGE(S): |
C.V.NAGARJUNA
REDDY |
||
|
|
|||
|
|
|
|
|
|
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10445765 |
26/08/2013 |
1,000,000,000.00 |
IDFC LIMITED |
KRM TOWER, 8TH
FLOOR, NO. 1, HARRINGTON ROAD, CHETPET, CHENNAI, TAMILNADU - 600031, INDIA |
B83427419 |
|
2 |
10431812 |
08/06/2013 |
1,000,000,000.00 |
STATE BANK OF
MYSORE |
CORPORATE
ACCOUNTS BRANCH, 3,4&5, DDA BUILDING, NEHRU PLACE, NEW DELHI, DELHI -
110019, INDIA |
B77403962 |
|
3 |
10400818 |
28/12/2012 |
1,000,000,000.00 |
IDFC LIMITED |
KRM TOWER, 8TH
FLOOR, NO. 1, HARRINGTON ROAD, CHETPET, CHENNAI, TAMILNADU - 600031, INDIA |
B66689571 |
|
4 |
10394276 |
29/11/2012 |
400,000,000.00 |
IDFC LIMITED |
KRM TOWER, 8TH
FLOOR, NO. 1, HARRINGTON ROAD, CHETPET, CHENNAI, TAMILNADU - 600031, INDIA |
B64940489 |
|
5 |
10398924 |
26/11/2012 |
320,000,000.00 |
YES BANK LIMITED |
NEHRU CENTRE, 9TH
FLOOR, DISCOVERY OF INDIA, DR. |
B66421082 |
|
6 |
10382463 |
21/09/2012 |
1,950,000,000.00 |
IDFC LIMITED |
KRM TOWER, 8TH
FLOOR, NO. 1, HARRINGTON ROAD, CHETPET, CHENNAI, TAMILNADU - 600031, INDIA |
B60437852 |
|
7 |
10368449 |
26/07/2012 |
400,000,000.00 |
IDFC LIMITED |
KRM TOWER, 8TH
FLOOR, NO. 1, HARRINGTON ROAD, CHETPET, CHENNAI, TAMILNADU - 600031, INDIA |
B44863298 |
|
8 |
10368448 |
26/07/2012 |
1,510,000,000.00 |
IDFC LIMITED |
KRM TOWER, 8TH FLOOR,
NO. 1, HARRINGTON ROAD, CHETPET, CHENNAI, TAMILNADU - 600031, INDIA |
B44863132 |
|
9 |
10175100 |
08/09/2009 |
100,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001,
INDIA |
A69178101 |
|
10 |
10174998 |
08/09/2009 |
150,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA -
400001, INDIA |
A69165884 |
|
11 |
10176522 |
08/09/2009 |
150,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA -
400001, INDIA |
A69844678 |
|
12 |
10098670 |
12/11/2013 * |
7,770,000,000.00 |
HOUSING DEVELOPMENT
FINANCE CORPORATION LIMITED |
RAMON HOUSE
169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, MAHARASHTRA - 400020, INDIA |
B92970680 |
|
13 |
80018684 |
20/09/1996 * |
59,000,000.00 |
CANARA BANK |
M G ROAD, SECUNDERABAD,
ANDHRA PRADESH - 500004, INDIA |
- |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM BORROWINGS |
|
|
|
Sales Tax Loan from A.P. State Government |
0.723 |
0.723 |
|
Loans and
advances from related parties - Holding Company |
270.000 |
270.000 |
|
|
|
|
|
Total |
270.723 |
270.723 |
OPERATIONS
During the year, Durga Cement Works (DCW) plant of the Company was
recommenced its trail run operations on 6th October 2012 by lighting up the
Kiln. Due to the power holiday imposed by the State Government the plant
operations were not continued in full swing.
The production activities at Visakha Cement Works (VCW) plant could not
be commenced during the period. However, trial run would be expected to
commence from the month of May 2013.
OUTLOOK
After the taking over of management by the new Promoters and infusion of
funds by them, the work on revival of the Plants started in its right earnest.
The commercial production of the Cement is expected to be commenced during the
current financial year. Thus, the future outlook for the Company is bright.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Government of India plans to increase its investment in
infrastructure to US $1 trillion in the Twelfth Five Year Plan (2012-17) as
compared to US $ 514 billion (estimated figure) spent on infrastructure
development under the Eleventh Five Year Plan (2007-12). Further,
infrastructure projects such as the dedicated freight corridors, upgraded and
new airports and ports are expected to enhance the scale of economic activity,
leading to a substantially increased in cement demand. Housing sector and road
also provide significant opportunities. The cement demand is likely to be
sensitive to the growth in these sectors and also the policy initiatives.
In view of the demand and installed capacity growth projections, the
additional installed capacity requirement during the next 15 years (up to 2027)
would be approx. 1035 million tons. Global Cement Production has continued to
expand at an average rate of 6.4% in the last five years. China (with an
average annual growth of 11.4% and India (with an average annual growth of
9.8%) have been the drivers of the growth in global cement output.
Domestic demand for cement has been increasing in India. Among the
states, Maharashtra has the highest share in consumption at 12.2%, followed by
Uttar Pradesh, while in terms of production; Andhra Pradesh is leading with
14.7% of total production followed by Rajasthan. The cement industry is one of
the major beneficiaries of the infrastructure boom. Cement has virtually no
substitutes and there is hardly any credible threat to the sector from other
products with similar uses.
Private housing sector is the major consumer of cement (53%) followed by
the government infrastructure sector. A step up in demand of the sectors, which
are major users of cement, could provide some stimulus to the cement sector as
well.
Planning Commission has identified Roads as one of the thrust areas for
infrastructure development and creation of a sound and durable road
infrastructure in the country. Even after this, the condition of their roads
network is poor. One of the reasons for the poor road conditions is the
adoption of conventional 'Bitumen Roads', which results in numerous problems
during operation, particularly after rains. Consequently, a substantial amount
of expenditure is to be incurred repeatedly on maintaining these roads every
year, entailing extra costs. A better option to solve this problem is opting
for techno economically superior cement concrete roads and thus ensuring a
quality network of roads, which need almost no maintenance throughout their
life, apart from generating fuel savings, being environment friendly and
facilitating free and smooth flow of traffic.
Thus with a view to creating a world-class road infrastructure in the
country for the rapid and inclusive growth of the economy, the Working Group
recommended that:
All new expansions in the National and State Highways may be made of
cement concrete as a Policy. To begin with, this percentage could be 30% of the
total allocations.
All existing National and State Highways constructed by using bitumen
should be replaced with concrete surface wherever strengthening is required, by
adopting the technology of concrete overlays, popularly known as White Topping.
Use of PPC may be made mandatory in the construction of roads as policy
not only for National and State Highways but also in the construction of roads
by all agencies including CPWD, State PWDs etc. This has already been permitted
by the Indian Roads Congress.
All existing city roads having bitumen surface be converted gradually to
cement concrete and new ones should preferably be constructed with cement
concrete technology.
All connection roads in villages must be done with cement concrete
technology.
Thus, the attention of the Government is very clear on infrastructure
development and cement being an integral part of this development process, its
importance and value will increase more in the days to come.
Road Ahead
Developments in the domestic environment and a huge number of
infrastructure projects are likely to boost demand for cement consumption in
India, which is bound to increase manifold in the coming years.
The management is of the view that the Indian Cement Industry had
witnessed an incredible growth in the past few years, led by the growth in the
real estate, infrastructure and industrial construction. However, in recent
period, cement demand growth took a slight breather. The cement industry has
registered a drop in margins mainly due to input cost rise and lack of pricing
power. The Industry has been facing a chronic problem of insufficient
availability of the main fuel coal, driving the manufacturers to resort to use
of alternatives at steep cost. As the economic growth is expected to be stable,
the cement demand is expected to sustain an average growth in demand. The key
drivers of this demand shall be the continued expansion in infrastructure, real
estate and industrial sectors.
OPERATIONAL
PERFORMANCE
The Company is primarily engaged in manufacture and sale of Cement
including Ordinary Portland Cement, Portland Pozolana Cement, Portland Slag
Cement and Ground Granulated Blast Slag. In the domestic market the company
operates through a net work of dealers and agents for sale of its products. Its
major markets include Andhra Pradesh, Tamilnadu, Orissa, Karnataka and other
nearby states.
Durga Cement Works (DCW) plant of the Company was commenced its trial
run operations on 6th October 2012 by lighting up the Kiln. Due to the power
holiday imposed by the State Government the plant operations were not continued
in full swing.
The production activities at Visaka Cement
Works (VCW) plant could not be commenced during the period. However, trial runs
will be expected to commence by the end of May 2013.
OUTLOOK
After the taking over of management by the new Promoters and infusion of
funds by them, the work on revival of the Plants started in its right earnest.
The production is expected to be resumed during the current financial year.
Thus, the future outlook for the Company is bright.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
(i) Claim against
the Company not acknowledged as debts including contractual obligations |
|
|
|
Government Claims for Non-Statutory dues |
19.530 |
19.530 |
|
Electricity Claims |
11.683 |
11.683 |
|
Claims of Project Customers |
95.200 |
163.381 |
|
Other Claims (Suppliers etc.) |
10.678 |
31.367 |
|
(ii) Letter of
Credit Outstanding: |
|
|
|
Letter of Credit |
117.343 |
0.000 |
(iii) Disputed
demands under litigation:
|
Particulars |
March 31, 2013 |
March
31, 2012 |
Amount
paid under portest, if any As at March
31, 2013 |
|
APGST / VAT |
17.347 |
17.347 |
4.696 |
|
C S T |
7.663 |
2.318 |
0.000 |
|
TNGST |
6.729 |
6.729 |
0.171 |
|
OST |
0.348 |
0.825 |
0.050 |
|
Central Excise |
112.405 |
17.730 |
0.100 |
|
Service Tax |
40.148 |
26.865 |
0.000 |
(iv) Probable liability, if any, that may arise as a result of
non-compliance with the requirements of Jute Packaging Materials (Compulsory
Use of Packing Materials), Act, 1987, consequent on differing divergent decisions
of different Courts and also representations of industry before the Government,
as the same is not ascertainable at this stage.
(v) Excise authority, although accepted payment of their dues in
installments in terms of BIFR Order (MS-08) has subsequently filed an appeal in
AAIFR against the said order in respect of reliefs for interest etc., granted
to the Company. The company has challenged the same and the matter is pending
before Hon'ble Delhi High Court, pending this, the amount is presently not
ascertainable in this respect. There are no dues in respect of installments as
on the date of the Balance Sheet.
(vi) During the previous period, employee benefit expenses includes
arrears of salaries and wages and other expenses of Rs.115.000 Millions in
terms of Memorandum of Settlement u/s 18(1) of the Industrial dispute Act,
1947, entered into with the Labour Unions on 6th March, 2012. However, some of
the workers have filed an application with Central Government Industrial
Tribunal cum Labour Court under section 33(c)(2) of Industrial Dispute Act,
1947 demanding payment of Rs.5.934 Millions which had been waived off as per
settlement with the registered labour union.
(vii) The Company has export obligation in connection with import of
machineries under Export Promotion Capital Goods Scheme (EPCG). In the event of
non-fulfillment of the export obligation upto FY 2016-17, the company may be
held liable for differential custom duty of Rs.83.816 Millions (approximately)
and interest thereon.
FIXED ASSETS:
·
Land
Buildings
Plant
and Machinery
Furniture
and Office Equipments
Vehicles
Railway
Siding
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. 59.33 |
|
|
1 |
Rs. 99.68 |
|
Euro |
1 |
Rs. 80.30 |
INFORMATION DETAILS
|
Information Gathered
by : |
GYT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.