MIRA INFORM REPORT
|
Report No. : |
318487 |
|
Report Date : |
25.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
BANNARI AMMAN
SUGARS LIMITED |
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Registered
Office : |
1212, Trichy Road, Coimbatore – 641018, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
01.12.1983 |
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Com. Reg. No.: |
18-001358 |
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Capital
Investment / Paid-up Capital : |
Rs. 114.397 Million |
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|
|
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CIN No.: [Company Identification
No.] |
L15421TZ1983PLC001358 |
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|
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IEC No.: |
Not Available |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBB03043F/
CMBB03038A/ CMBB03064F |
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PAN No.: [Permanent Account No.] |
AAACB8933G |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacture of
Sugar, Industrial/Potable Alcohol, Bio-Compost, Granite Products and
Generation and Distribution of Power. |
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|
No. of Employees
: |
1851 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 27000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The subject is the flagship company of the Coimbatore- based Bannari
Amman group, one of the largest industrial conglomerates in south India, is
engaged in the manufacturer of sugar, industrial alcohol, bio-compost, granite
products and generation of power. It is a well-established company having a long operational history
with a fine track record. The fundamentals are strong and healthy. Sales turnover has declined in FY2014 due to unfavorable industry
scenario. The rating considers fall in sugar prices, Government’s controlling of
raw material pricing and other regulatory measures which act as a threat to
profitability as price controls lead to high input cost. However, the Company has reported decent profitability during the
financial year 2013-14. Further, the Company possesses a financial position marked by very
strong net worth. The rating also takes into consideration opportunities in Sugar industry
and the potential of the company to increase its productivity. Trade relations are fair. Business is active. Payments are reported to
be regular and as per commitment. The company can be considered for business deals at usual trade terms
and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities: AA- |
|
Rating Explanation |
High degree of safety and low credit risk. |
|
Date |
31.01.2015 |
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|
|
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
31.01.2015 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION PARTED BY
|
Name : |
General Information |
|
Designation : |
Accounts |
|
Contact No.: |
91-422-2302277 |
|
Date : |
21.04.2015 |
LOCATIONS
|
Registered/
Corporate Office : |
1212, Trichy Road, Coimbatore – 641018, Tamilnadu, India |
|
Tel. No.: |
91-422-2302277 (10 Line) |
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Fax No.: |
91-422-2309999/ 2305599 |
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E-Mail : |
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Website : |
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Sugar Unit-I
Co-Generation Bio-Diesel and Granite Processing : |
Alathukombai,
Sathyamangalam, Erode District – 638401, Tamilnadu, India |
|
Tel. No.: |
91-4295-220363/
220387 |
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Fax No.: |
91-4295-222362/
220695 |
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E-Mail : |
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Sugar Unit- II
and Co-Generation : |
Alaganchi, Nanjangud, Mysore District – 571119,
Karnataka, India |
|
Tel. No.: |
91-8221-235042/ 235045/ 228855 |
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Fax No.: |
91-8221-235014 |
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E-Mail : |
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Sugar Unit- III |
Kunthur Village, Kollegal, Chamrajnagar District
– 571440, Karnataka, India |
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Tel. No.: |
91-8224-261277 |
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Fax No.: |
91-8224-261333 |
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E-Mail : |
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Sugar Unit- IV
and Co-Generation : |
Kolundanpattu
Village, Thandarampattu, Tiruvannamalai District – 606706, Tamilnadu, India |
|
Tel. No.: |
91-4188-248571/
72/ 73 |
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Fax No.: |
91-4188-248200 |
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E-Mail : |
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Granite Division: |
100 % EOU
Alathukombai Sathyamangalam – 638401,
Tamilnadu, India |
|
Tel. No.: |
91-4295-220363,
220 |
|
Fax No.: |
91-4295-220695 |
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E-Mail : |
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Distillery : |
Chinnapuliyur, Periapuliyur Post 638455, Bhavani Taluk, Erode District, Tamilnadu, India |
|
Tel. No.: |
91-4256-236730 |
|
Fax No.: |
91-4256-230303 |
|
Email : |
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Bio-Compost Unit : |
Modur, Arakkankottai, Gobichettipalayam TK, Erode District – 638506, Tamilnadu, India |
|
Tel No.: |
91-4285-252510/ 252110 |
|
Email : |
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Bio Diesel Plant : |
Alathukombai, Sathyamangalam, Erode
District – 638401, Tamilnadu, India |
|
Tel. No.: |
91-4295-220363/ 220387 |
|
Fax No.: |
91-4295-220695 |
|
Email : |
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Wind Mills : |
Radhapuram Irukkandurai and Karunkulam Villages Thirunelveli District Tamilnadu, India |
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Branch Office : |
Located at ·
Chennai ·
·
|
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. S V
Balasubramaniam |
|
Designation : |
Chairman |
|
Qualification: |
B Com ACA
ACS |
|
Date of Birth/Age : |
74 Years |
|
Experience : |
49 Years |
|
Date of Appointment : |
9.10.1985 |
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|
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|
Name : |
Mr. B Saravanan |
|
Designation : |
Managing Director |
|
Qualification: |
B Com |
|
Date of Birth/Age : |
41 Years |
|
Experience : |
49 Years |
|
Date of Appointment : |
05.07.2000 |
|
|
|
|
Name : |
Mr. A K
Perumalsamy |
|
Designation : |
Director |
|
DIN No.: |
00313769 |
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|
|
|
Name : |
Mr. E P
Muthukumar |
|
Designation : |
Director |
|
DIN No.: |
00003740 |
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|
|
|
Name : |
Mr. T Gundan |
|
Designation : |
Director |
|
DIN No.: |
00624804 |
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|
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|
Name : |
Dr. M. P. Vijaykumar |
|
Designation : |
Director |
|
DIN No.: |
05103089 |
KEY EXECUTIVES
|
Name : |
Mr. C Palaniswamy |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2015
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of
Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
||
|
|
|
|
|
|
1837535 |
16.06 |
|
|
4422741 |
38.66 |
|
|
6260276 |
54.72 |
|
|
|
|
|
|
|
|
|
Total shareholding of
Promoter and Promoter Group |
6260276 |
54.72 |
|
|
|
|
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
100 |
0.00 |
|
|
264 |
0.00 |
|
|
22122 |
0.19 |
|
|
22486 |
0.20 |
|
|
|
|
|
|
|
|
|
|
1227278 |
10.73 |
|
|
|
|
|
|
|
|
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|
950100 |
8.31 |
|
|
2591058 |
22.65 |
|
|
388502 |
3.40 |
|
|
10935 |
0.10 |
|
|
8492 |
0.07 |
|
|
45000 |
0.39 |
|
|
172148 |
1.50 |
|
|
148111 |
1.29 |
|
|
3816 |
0.03 |
|
|
5156938 |
45.08 |
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|
|
|
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Total Public shareholding (B) |
5179424 |
45.28 |
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|
|
|
Total (A)+(B) |
11439700 |
100.00 |
|
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|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
|
0 |
0.00 |
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|
|
|
|
Total (A)+(B)+(C) |
11439700 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of sugar, Industrial/ Potable alcohol, bio-compost,
granite products and generation and distribution of power. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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No. of Employees : |
1851 (Approximately) |
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Bankers : |
·
Punjab National Bank ·
Bank of ·
Canara Bank ·
The Federal Bank Limited ·
The Karur Vysya Bank Limited ·
Union Bank of ·
Indian Overseas Bank ·
State Bank of Travancore ·
State Bank of ·
State Bank of ·
Bank of ·
The Lakshmi Vilas Bank Limited ·
Axis Bank Limited ·
ICICI Bank Limited ·
HDFC Bank Limited |
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Facilities : |
(Rs.
In Millions)
|
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Auditors : |
|
|
Name : |
P
N Raghavendra Rao and Company Chartered Accountants |
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|
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|
Internal
Auditors : |
|
|
Name 1 : |
Srivatsan
and Gita Chartered
Accountants |
|
|
|
|
Name 2
: |
Bakthavachalam
and Company Chartered
Accountants |
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|
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|
Cost
Auditor : |
|
|
Name : |
M
Nagarajan Cost Accountant |
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|
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Memberships : |
-- |
|
|
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Collaborators : |
-- |
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Key Management
Personnel : |
|
|
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|
Enterprises
over which Key management personnel or their relatives are able to exercise
significant influence: : |
· Annamallai Enterprise (Private) Limited · Bannari Amman Exports Limited · Madras Sugars Limited · Shiva Cargo Movers Limited · Shiva Distilleries Limited |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29000000 |
Equity Shares |
Rs.10/- each |
Rs. 290.00 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11439700 |
Equity Shares |
Rs.10/- each |
Rs. 114.397
Million |
|
|
|
|
|
A. Reconciliation of the shares
outstanding at the beginning and at the end of the reporting period
|
Particulars |
AS AT 31.3.2014 |
|
|
No. of Shares |
(Rs. in Million) |
|
|
Equity shares |
|
|
|
At the beginning of the period |
11439700 |
114.397 |
|
At the end of the period |
11439700 |
114.397 |
B. Details of shareholders
holding more than 5% shares in the company
|
Name of the
Shareholder |
AS AT 31.3.2014 |
|
|
No. of Shares |
% of Holding |
|
|
|
|
|
|
S V Balasubramaniam |
1056232 |
9.23 |
|
Shiva Distilleries Limited |
3948013 |
34.51 |
C. Terms / rights attached
to equity shares
The company has
issued only one class of equity shares having face value of Rs.10/- each. One
equity share carries one vote. The members are entitled to vote in accordance with
their shareholding. The Company declares and pays dividend in Indian rupees.
The dividend recommended by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
114.397 |
114.397 |
114.397 |
|
(b) Reserves & Surplus |
9425.637 |
9305.551 |
8035.533 |
|
(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) |
9540.034 |
9419.948 |
8149.930 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2425.506 |
449.496 |
514.023 |
|
(b) Deferred tax liabilities (Net) |
949.132 |
914.542 |
884.194 |
|
(c) Other long term
liabilities |
90.891 |
97.626 |
104.753 |
|
(d) long-term
provisions |
26.372 |
22.108 |
18.833 |
|
Total Non-current
Liabilities (3) |
3491.901 |
1483.772 |
1521.803 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
7811.570 |
3676.208 |
3742.657 |
|
(b) Trade
payables |
649.426 |
1312.077 |
923.668 |
|
(c) Other
current liabilities |
753.030 |
783.968 |
855.81 |
|
(d) Short-term
provisions |
559.790 |
471.487 |
433.318 |
|
Total Current
Liabilities (4) |
9773.816 |
6243.740 |
5955.453 |
|
|
|
|
|
|
TOTAL |
22805.751 |
17147.460 |
15627.186 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
6317.226 |
6686.003 |
6858.924 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
2678.491 |
325.113 |
231.029 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
4.944 |
4.435 |
6.697 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
972.169 |
992.658 |
937.824 |
|
(e) Other
Non-current assets |
|
|
0.000 |
|
Total Non-Current
Assets |
9972.830 |
8008.209 |
8034.474 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
11775.679 |
7598.196 |
6127.276 |
|
(c) Trade
receivables |
413.936 |
1006.484 |
942.874 |
|
(d) Cash
and cash equivalents |
35.337 |
34.278 |
47.502 |
|
(e)
Short-term loans and advances |
469.835 |
366.742 |
321.351 |
|
(f) Other
current assets |
138.134 |
133.551 |
153.709 |
|
Total
Current Assets |
12832.921 |
9139.251 |
7592.712 |
|
|
|
|
|
|
TOTAL |
22805.751 |
17147.460 |
15627.186 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6510.783 |
13374.247 |
11841.084 |
|
|
|
Other Income |
23.082 |
19.333 |
32.274 |
|
|
|
TOTAL |
6533.865 |
13393.580 |
11873.358 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
6637.568 |
9229.677 |
7922.338 |
|
|
|
Purchases of Stock-in-Trade |
410.031 |
176.882 |
40.647 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(4260.174) |
(1434.731) |
(763.57) |
|
|
|
Employees benefits expense |
584.788 |
633.310 |
532.395 |
|
|
|
Other expenses |
1701.470 |
1993.706 |
1841.748 |
|
|
|
TOTAL |
5073.683 |
10598.844 |
9573.558 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1460.182 |
2794.736 |
2299.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
619.164 |
451.647 |
507.785 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
841.018 |
2343.089 |
1792.015 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
519.553 |
599.544 |
667.692 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
321.465 |
1743.545 |
1124.323 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
34.590 |
318.671 |
67.624 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
286.875 |
1424.874 |
1056.699 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
1180.849 |
1555.418 |
1880.934 |
|
|
TOTAL EARNINGS |
1180.849 |
1555.418 |
1880.934 |
|
|
|
|
|
|
|
|
|
|
VALUE OF IMPOTS
ON C.I.F. BASIS |
|
|
|
|
|
|
|
Rough Granite Blocks |
0.000 |
2.921 |
0.000 |
|
|
|
Granites Stabs |
2.646 |
2.29 |
0.000 |
|
|
|
Components and Spares Parts |
156.355 |
134.142 |
102.011 |
|
|
|
Capital Goods |
172.123 |
122.316 |
8.147 |
|
|
TOTAL IMPORTS |
331.124 |
261.669 |
110.158 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
25.08 |
124.56 |
92.37 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars (Rs. In
Million) |
30.06.2014 |
30.09.2014 |
31.12.2014 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
2300.700 |
2939.300 |
1332.900 |
|
Total Expenditure |
1979.900 |
2577.800 |
925.300 |
|
PBIDT (Excl OI) |
320.800 |
361.500 |
407.600 |
|
Other Income |
18.800 |
02.500 |
00.100 |
|
Operating Profit |
339.600 |
364.000 |
407.700 |
|
Interest |
212.900 |
209.700 |
243.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
126.700 |
154.300 |
164.400 |
|
Depreciation |
109.900 |
128.500 |
150.700 |
|
Profit Before Tax |
16.800 |
25.900 |
13.700 |
|
Tax |
(05.400) |
07.400 |
02.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
22.200 |
18.500 |
11.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
4.41 |
10.65 |
8.92 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT / Sales) |
(%) |
22.43 |
20.90 |
19.42 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.60 |
10.37 |
7.31 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
0.19 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.07 |
0.44 |
0.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31 |
1.46 |
1.27 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO:
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
114.397 |
114.397 |
114.397 |
|
Reserves & Surplus |
8035.533 |
9305.551 |
9425.637 |
|
Net
worth |
8149.930 |
9419.948 |
9540.034 |
|
|
|
|
|
|
long-term borrowings |
514.023 |
449.496 |
2425.506 |
|
Short term borrowings |
3742.657 |
3676.208 |
7811.570 |
|
Total
borrowings |
4256.680 |
4125.704 |
10237.076 |
|
Debt/Equity
ratio |
0.522 |
0.438 |
1.073 |
YEAR-ON-YEAR GROWTH:
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
11841.084 |
13374.247 |
6510.783 |
|
|
|
12.948 |
(51.319) |
NET PROFIT MARGIN:
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
11841.084 |
13374.247 |
6510.783 |
|
Profit |
1056.699 |
1424.874 |
286.875 |
|
|
8.92% |
10.65% |
4.41% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------------------- |
|
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 |
REVIEW OF
OPERATIONS
SUGAR DIVISION:
During the year
2.583 Million tons of sugarcane was crushed against the estimated cane crush of
30.00 lakh tones. Drought in the cane area had affected the cane availability
and recovery. The expansion of crushing capacity from 2500 TCD to 3600 TCD in
the sugar factory at Kunthur Village Karnataka is nearing completion and the
factory is expected to commence its operation before September 2014.
Increase in
sugarcane cost coupled with unfavorable sugar price have resulted in loss in
sugar segment.
CO-GENERATION OF POWER:
The Co-generation
plants had generated 326.440 million units of power and exported 224.560
million units of power to grids compared to the generation of 425.550 million
units and export of 286.240 million units in the previous year The 20 MW
Co-generation plant in the sugar factory at Kunthur Village Karnataka is
expected to commence its operation before September 2014.
DISTILLERY DIVISION:
During the year
the distilleries had produced 27.300 million B Liters of Alcohol as against
29.390 million B Liters in the previous year.
GRANITE DIVISION:
During the year
the demand for the company's granite products steadily increased because of the
quality and the working results were encouraging In the Granite Processing Unit
183974 square meters of Granite Slabs and 25160 square meters of Tiles were
produced compared to production of 162206 square meters of Granite Slabs and
20139 square meters of Tiles in the previous year.
WIND MILL:
Wind Mills had generated
12.10 million units of power and exported 10.480 million units to grid compared
to the generation of 16.760 million units and export of 15.270 million units.
PROSPECTS FOR THE CURRENT YEAR 2014 – 2015:
Due to lower cane
availability it is estimated to crush 2.500 Million tons of sugarcane in
aggregate Performance of co-generation plant will be based on bagasse
availability in our sugar mills It is estimated to produce 29.000 million B
Liters of alcohol in the Distillery Units Improved working results are expected
in Granite Division The overall working results of the company are expected to
be satisfactory
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
OVERVIEW:
The Company has two
sugar mills in Tamil Nadu and two sugar mills in Karnataka with the aggregate
sugarcane crushing capacity of 19000 TCD. The company has also set up
co-generation plants and windmills with the aggregate installed capacity of
93.55 MW. The company has also two Distillery units one in Tamil Nadu and the
other in Karnataka with the aggregate
installed capacity of 127.50 KLPD It has one of the most modern granite
processing facilities at Sathyamangalam and quarries in Tamil Nadu The company
is also a producer of bio-compost in Tamil Nadu and Karnataka.
In the sugar
factory at Kunthur village Karnataka the crushing capacity is being expanded
from 2500 TCD to 3600 TCD besides establishing a co-generation plant with an
installed capacity of 20MW. The projects are expected to commence its operation
before September 2014.
The company
contributes substantially towards welfare of the society in the areas of
Health, Sanitation, Irrigation, Education, Environment, Water Conservation,
Livelihood Projects, etc. through trusts established by the group.
DEVELOPMENTS:
In line with the
suggestions put forth by the C Rangarajan Committee the Cabinet Committee of
Economic Affairs has cleared the proposal for partial decontrol of the sector in
April 2013 and the Fiscal year 2013-14 was the first year of operation post
decontrol.
Ř The major
development in the Indian Sugar Industry are:
Ř 10 % Levy
obligation has been removed
Ř Sugar release
mechanism has been scrapped
Ř Import duty was
increased from 10% to 15%
Ř Mandatory packing
of sugar in gunny bag was reduced from 100% to 40% for the year from July 2012
to June 2013 and further reduced to 20% for the year from July 2013 to June
2014.
Ř State Government
can decide the matters relating to reservation of cane area to the sugar mills
and distance between mills etc.
SUGAR INDUSTRY IN
KARNATAKA:
Karnataka plays a
prominent role in Indian Sugar Industry In 2012-2013 sugar season the State
crushed about 33.302 million tons of sugarcane with an average recovery of
10.40 % compared to 34.750 million tones with an average recovery of 11.14% in
2011-2012 sugar season.
Based on the
recommendation of Rangarajan Committee the Government of Karnataka enacted
Karnataka Sugarcane (Regulation of purchase and supply) Act 2013 under which
Karnataka Sugar Control Board (KSCB) was constituted and given powers to fix
sugarcane price.
The KSCB has fixed
the sugarcane price of Rs 250/- per quintal (ex-field) in North Karnataka and
Rs 250/- per quintal (ex-gate) in South Karnataka for the Sugar season 2013-14.
Karnataka being a
surplus sugar producing state consumes only about 50% of the sugar produced and
sell the rest to other states like Kolkata, Maharashtra, Kerala, etc. However
the selling sugar outside Karnataka is not beneficial to the Sugar mills
because the huge transportation and freight charges reduce the realization.
The consistent
increase in sugarcane prices and the downward trend in sugar sales realization has
greatly affected the financial performance of the sugar factories in Karnataka.
SUGAR INDUSTRY IN TAMIL NADU:
Next to Karnataka,
Tamil Nadu plays a dominant role in Nation's sugar production in 2012-2013
sugar season the state crushed about 21.460 million tons of sugarcane with an
average recovery of 8.88% compared to 25.460 million tones with an average
recovery of 9.35 % in 2011-2012 sugar season Repeated droughts significantly
affect the cane availability, yield and recovery.
The State Advised
Price (SAP) fixed by the State Government for the year 2013-2014 is Rs 2550/-
per tonne (Last year Rs 2250/- per tonne) linked to 9.5% recovery. The
transport Charges from farm to factory will be the scope of sugar mills.
Since such a high
SAP is not backed by revenue realization the private sector sugar mills have
appealed for some incentives and other support from the State Government.
OUTLOOK
FOR SUGAR INDUSTRY:
Taking into account the medium and long-term forecasts and by
considering past performance of the sugar industry it is expected that
situation will remain very much cyclical and will depend on the national and
international demand and supply conditions. Therefore the profitability of the
sugar industry will be greatly depending on the international market.
With an estimated opening balance of sugar around 7.800 million
tones in 2014-2015 sugar season the sugar production in India is expected to be
at around 24.500 million tones With higher sugarcane crop particularly in North
Karnataka the sugar production in Karnataka is estimated to be at higher level
However due to drought conditions and lower rainfall in Tamil Nadu the sugar production in Tamil Nadu may fall
further from the current year's production
We wish to conclude that as an integrated sugar
company your company is well poised to gainfully grow further in all spheres
CONTINGENT
LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
CONTINGENT LIABILITIES
The company has preferred a
Writ Appeal before the Division Bench of the Hon'ble High Court Madras
challenging the Order pronounced in Writ Petition No. 4030/2002 dated
28.02.2006 in connection with increase in rate of water charges and the method
of computation of water charges pursuant to the G.O. No.474 dated 13.11.2001
for the water drawn for industrial purposes The approximate amount under
dispute is Rs.37.755 Million (Rs.36.898 Million)
Sugar Unit I at
Sathyamangalam was permitted to sell 100% of the sugar production as Free Sugar
for a period of 8 years from 1985-86 Sugar Season Chief Director (Sugar)
Directorate of Sugar Department of Food New Delhi has restricted the
entitlement of free sale Sugar Incentive to 275000 quintals production per
season by a subsequent notification. A Writ Petition has been filed in the
Madras High Court Challenging the restriction imposed and interim injunction
has been obtained by virtue of injunction order the entire production was sold
as free Sugar. The approximate unprovided quantum under dispute is Rs.68.335
Million (Rs.68.335 Million)
Sugar Unit I at
Sathyamangalam was allowed to sell 100% of the Sugar production as free sugar
for 8 years from
1985-86 sugar season and
pay excise duty on incentive sugar as applicable to levy sugar and to retain
the difference in excise duty between levy and free sale sugar In respect of
incentive sugar sold by Unit I from 20.09.1991 to 31.01.1994, the Central
Excise Department has issued show cause notices to the Company to show cause
why the difference of Rs.33/- per quintal being the difference between duty on
levy sugar and free sugar should not be demanded from the Company The Company
has filed Writ Petitions in Madras High Court and the High Court disposed the
case with direction to submit all explanations before the adjudicating
authority Now the matter is pending before the adjudicating authority The
excise duty in dispute is Rs.14.999 Million (Rs.14.999 Million).
The
Entry Tax of Rs.18.829 Million (Rs.18.829 Million) on Inter-state purchase of
rough blocks is disputed.
The Company has received a
demand for payment of excise duty for Rs.14.843 Million on the machineries
purchased for co-generation plant which have been cleared by the manufacturers
based on the certificates alleged to have been forged by an Official in the
Ministry of Finance. The Company has remitted the amount under protest The
Company opted for obtaining a valid certificate for which steps have been taken
through a writ petition filed in Hon'ble High Court of Madras.
The company has preferred
an appeal before the Commissioner of Income Tax (Appeals); challenging the
order of Assistant Commissioner of Income Tax in connection with disallowance
of deduction under section 80IA of the Income Tax Act 1961 for the Assessment
year 2010-11. The quantum under dispute is Rs.34.573 Million.
As at the year end the
Company has an obligation under EPCG Scheme to export sugar of a value of USD
10317105 and to export granite of a value of USD 10317105.
Estimated amount of
contracts remaining to be executed on capital account - Tangible Assets not
provided for is
Rs.319.575
Million (Rs.1378.942 Million)
UNSECURED LOAN:
(Rs. In Million)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
SHORT TERM
BORROWING |
|
|
|
Short Term Loan from Bank |
2850.000 |
700.000 |
|
NOTES: The Unsecured
Short term loan of Rs 500.000 Million (Rs 200.000 Million) from ING Vysya
Bank is repayable within six months from the date of availment and carries interest at the rate of 10.80% per
annum The
Unsecured Short term loan of Rs 200.000 Million (Rs
500.000 Million) from HDFC Bank Limited is
repayable within ninety days from the date of availment and carries interest
at the rate of 10.20% per annum The
Unsecured Short term loan of Rs 900.000 Million from HDFC Bank Limited is
repayable within ninety days from the date of availment and carries interest
at the rate of 10.50% per annum The
Unsecured Export Credit of Rs 500.000 Million from HDFC Bank Limited is
repayable within sixty days from the date of availment and carries interest
at the rate of 10% per annum The
Unsecured Working Capital Demand loan of Rs 500.000 Million from Rabo Bank
International is repayable within fifty seven days from the date of availment
and carries interest at the rate of 10.35% per annum The
Unsecured Short term loan of Rs 250.000 Million from Canara Bank is repayable
in four equal monthly instalment starting from May' 2014 and carries interest
at the Banks Base rate plus 0.50% per annum |
||
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10483090 |
27/02/2014 |
250,000,000.00 |
INDIAN OVERSEAS BANK |
1027- Avinashi Road, Park Square Branch, Near VOC |
B98681166 |
|
2 |
10483079 |
25/02/2014 |
234,000,000.00 |
PUNJAB NATIONAL BANK |
Mid Corporate Branch, 774, Oppanakkara Street, Co |
B98678691 |
|
3 |
10483077 |
19/02/2014 |
300,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W |
B98678139 |
|
4 |
10456439 |
03/03/2014 * |
900,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W |
C00940130 |
|
5 |
10455242 |
03/03/2014 * |
200,000,000.00 |
THE FEDERAL BANK LIMITED |
PB No.545, 21 VARIETY HALL ROAD, COIMBATORE, Tamil |
C00771030 |
|
6 |
10440102 |
03/03/2014 * |
900,000,000.00 |
STATE BANK OF INDIA |
Mid-Corporate Group, COMMERCIAL BRANCH, 1443 TRIC |
C00882050 |
|
7 |
10391406 |
11/09/2014 * |
1,000,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W |
C25693680 |
|
8 |
10388058 |
25/02/2014 * |
250,000,000.00 |
ICICI BANK LIMITED |
TRICHY ROAD, COIMBATORE, Tamil Nadu - 641018, INDI |
C00217695 |
|
9 |
10324383 |
18/01/2012 * |
54,000,000.00 |
GOVERNMENT OF INDIA |
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTR |
B30141014 |
|
10 |
10311899 |
19/05/2012 * |
100,000,000.00 |
AXIS BANK LIMITED |
VIGNESWAR CRESTA,, NO.1095, AVINASHI ROAD, PAPPAN |
B40674426 |
* Date of charge modification
FIXED ASSETS:
·
Land – Freehold
·
Land – Leasehold
·
Buildings
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipments
·
Live Stock
·
Motor Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.40 |
|
|
1 |
Rs.95.42 |
|
Euro |
1 |
Rs.68.48 |
INFORMATION DETAILS
|
Information
Gathered by : |
KMN |
|
|
|
|
Analysis Done by
: |
SUC |
|
|
|
|
Report Prepared
by : |
DDD |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILITY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
67 |
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
unfavorable 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.