MIRA
INFORM REPORT
|
Report No. : |
307555 |
|
Report Date : |
16.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
ASSAM COMPANY INDIA LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.12.2013 |
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Date of
Incorporation : |
15.03.1977 |
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Com. Reg. No.: |
02-001685 |
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Capital
Investment / Paid-up Capital : |
Rs. 309.761 Millions |
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CIN No.: [Company
Identification No.] |
L01132AS1977PLC001685 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
Not Available |
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PAN No.: [Permanent
Account No.] |
Not Available |
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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
: |
Manufacturer and sale of Tea |
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|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (33) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 10500000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. There seems drastic dip in the profit of the company during 2014. However, trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered for business dealing with some cautions. |
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 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank Facilities (D) (Suspended) |
|
Rating Explanation |
Expected to be in default |
|
Date |
November 7, 2013 |
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Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities (D)
(Suspended) |
|
Rating Explanation |
Expected to be in default |
|
Date |
November 7, 2013 |
Note: Reason for Suspension: The rating has been suspended as the
company has not furnished the information required by CARE for Monitoring of
the ratings.
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
MANAGEMENT NON – CO-OPERATIVE
LOCATIONS
|
Registered Office : |
Greenwood Tea Estate, Dibrugarh-786001, Assam, India |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Head Office : |
Assam Tea House, 52, Chowringhee Road, Kolkata – 700071, West Bengal,
India |
|
Tel. No.: |
91-33-22838306/22838309/22838312 |
|
Fax No.: |
91-33-22838334/22838333 |
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E-Mail : |
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Branch Office 1: |
Girish Chandra Bardalai Path, Bamunimaidam, Guwahati -781021, Assam,
India |
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Branch Office 2: |
2nd Floor, 22, Community Centre, Basant Lok, Vasant Vihar,
New Delhi – 110057, India |
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Plant
Location: |
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Tea Estates: |
The company owns Fifteen Tea Estates in the State of Assam |
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District: |
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|
Doom
Dooma |
Digulturrung/ Oakland |
|
Tinsukia |
Dinjan Rungagora |
|
Dibrugarh |
Borborooah Greenwood Hazelbank Maijan Nudwa Thanai |
|
Moran: |
Doomur Dullung Khoomtaie/ Hajua Mohokutie |
|
Jorhat |
Kotalgoorie |
|
Nagaon |
Kondoli |
DIRECTORS
As on: 31.12.2013
|
Name : |
Dr. K. K. Jajodia |
|
Designation : |
Chairman |
|
DOB: |
02.10.1933 |
|
Date of Appointment |
01.10.1992 |
|
Experience: |
Business
Management |
|
Qualification: |
Doctor
of Philosophy, B.Com (Hons) |
|
Other Directorship: |
North-East
Hydrocarbon Limited Assam
Oil and Gas Limited |
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|
|
|
Name : |
Mr. A. K. Jajodia |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Amit Halder |
|
Designation : |
Director |
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DOB: |
15.02.1939 |
|
Date of Appointment |
19.03.2012 |
|
Last Employee |
Legal and Company Law |
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|
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|
Name : |
Mr. Amit Kumar Ghosh |
|
Designation : |
Director |
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DOB: |
21.01.1951 |
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Date of Appointment |
26.02.2014 |
|
Experience: |
Business Management |
|
Qualification: |
Chartered
Accountant, B.Com (Hons) |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Sharma |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2014
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
2017320 |
0.65 |
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|
6582143 |
2.12 |
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|
8599463 |
2.78 |
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|
|
|
|
|
122642596 |
39.59 |
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|
122642596 |
39.59 |
|
Total shareholding of Promoter
and Promoter Group (A) |
131242059 |
42.37 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
20160 |
0.01 |
|
|
34730 |
0.01 |
|
|
7533328 |
2.43 |
|
|
7588218 |
2.45 |
|
|
|
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|
34083015 |
11.00 |
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|
106450887 |
34.37 |
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|
19186157 |
6.19 |
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|
11210627 |
3.62 |
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|
8640759 |
2.79 |
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|
5000 |
0.00 |
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|
2564868 |
0.83 |
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|
170930686 |
55.18 |
|
Total Public shareholding (B) |
178518904 |
57.63 |
|
Total (A)+(B) |
309760963 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
309760963 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and sale of Tea |
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Products : |
Tea |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
·
Allahabad Bank ·
Bank of Baroda ·
State Bank of Bikaner and Jaipur ·
State Bank of Hyderabad ·
Oriental Bank of India ·
Central Bank of India ·
Indian Overseas Bank ·
Syndicate Bank ·
Union Bank of India |
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Facilities : |
Note: Long-term
Borrowings
Short-term
borrowings Loan repayable on demand from Banks: Outstanding loans of Rs.
1607.903 Million (31.12.12 – Rs. 1665.814 Millions) Secured by
hypothecation created on stock, book debts, all moveable assets and other
current assets of the tea estates both present and future and equitable
mortgage created of all immovable properties both present and future relating
to all tea estates of the Company situated in Assam ranking pari passu with
all other term loans from Consortium Banks. |
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Auditors : |
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Name : |
De Chakraborty and Sen Chartered Accountants |
|
Address : |
Kolkata, India |
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Solicitors |
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Name: |
Khaitan and Company |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiaries : |
·
Namburnadi Tea Company Limited (ceased to be subsidiaries from
21.01.2013) ·
Camellia Cha Bar Limited ·
North East Hydrocarbon Limited ·
Assam Oil and Gas Limited ·
Duncan Macneill Natural Resources Limited ·
Dahej Offshore Infrastructure SEZ Limited ·
Gujarat Hydrocarbons and Power SEZ Limited ·
Duncan Macneill Power India Limited ·
Assam Oil and Natural Gas Limited. |
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|
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|
Stepdown subsidiaries: |
·
Lord Inchcape Financial Services Limited (control exercised through
two subsidiaries) ·
Assam Oil and Natural Gas Columbia Limited |
|
|
|
|
Joint Venture through jointly controlled
operations |
·
Oil and Natural Gas Corporation Limited ·
Oil India Limited |
CAPITAL STRUCTURE
As on 31.12.2013
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000,000 |
Equity Shares |
Rs.1/- each |
Rs. 500.000 Millions |
|
1,000,000 |
Non-Cumulative
Redeemable Preference Shares |
Rs.100/- each |
Rs. 100.000 Millions |
|
|
Total |
|
Rs. 600.000
Millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
309,760,963 |
Equity Shares |
Rs.1/- each |
Rs. 309.761
Millions |
|
|
|
|
|
Reconciliation
of Shares is set out below :
|
Particulars |
31st
DECEMBER 2013 |
|
Number of Shares outstanding at the
beginning of the year |
Rs. 309.761
Millions |
|
Number of Shares
outstanding at the end of the year |
Rs. 309.761 Millions |
Terms/
rights attached to Equity Shares:
The Company has only one class of Ordinary Shares
(.Equity Shares.) having a par value of ` 1/- each.
Each holder of Ordinary Shares (Equity
Shareholders.) is entitled to one vote per Share. The Company declares and pays
dividend in Indian Rupees.
The dividend proposed by the Board of
Directors is subject to the approval of the Shareholders in the ensuing Annual
General Meeting of the Company. In the event of the Liquidation, the Equity
Shareholders are eligible to receive the 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.
The Board of Directors has not recommended
any dividend for the year ended 31st December, 2013,
Details of Shares
held by shareholders holding more than 5% of the aggregate shares in the
Company:
|
Particulars |
31st DECEMBER 2013 |
|
|
|
No.
of Shares Held |
% |
|
Assam Oil Company Limited |
119,088,048 |
38.45 |
|
Dune Leasing and Finance Limited |
16,830,000 |
5.43 |
|
Siriyari Tradecom Private Limited |
20,556,952 |
6.64 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
309.761 |
309.761 |
309.761 |
|
(b) Reserves & Surplus |
3364.617 |
3276.687 |
3061.496 |
|
(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) |
3674.378 |
3586.448 |
3371.257 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
4396.235 |
3771.597 |
2953.039 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
2.541 |
2.439 |
2.236 |
|
(d) long-term
provisions |
385.848 |
385.273 |
335.212 |
|
Total Non-current
Liabilities (3) |
4784.624 |
4159.309 |
3290.487 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1662.888 |
1765.814 |
1828.252 |
|
(b)
Trade payables |
119.500 |
147.105 |
85.310 |
|
(c)
Other current liabilities |
2658.859 |
2712.774 |
3666.785 |
|
(d) Short-term
provisions |
362.614 |
336.929 |
255.852 |
|
Total Current
Liabilities (4) |
4803.861 |
4962.622 |
5836.199 |
|
|
|
|
|
|
TOTAL |
13262.863 |
12708.379 |
12497.943 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
3417.934 |
3868.299 |
3897.408 |
|
(ii)
Intangible Assets |
2.211 |
2.232 |
4.176 |
|
(iii)
Capital work-in-progress |
4367.551 |
3816.535 |
3248.949 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
84.024 |
90.874 |
91.274 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
105.124 |
266.320 |
242.730 |
|
(e) Other
Non-current assets |
243.453 |
190.469 |
240.016 |
|
Total Non-Current
Assets |
8220.297 |
8234.729 |
7724.553 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.900 |
0.900 |
0.800 |
|
(b)
Inventories |
255.832 |
245.604 |
235.764 |
|
(c)
Trade receivables |
1239.296 |
877.793 |
1074.029 |
|
(d) Cash
and cash equivalents |
75.860 |
148.577 |
562.569 |
|
(e)
Short-term loans and advances |
3273.995 |
3141.906 |
2879.041 |
|
(f)
Other current assets |
196.683 |
58.870 |
21.187 |
|
Total
Current Assets |
5042.566 |
4473.650 |
4773.390 |
|
|
|
|
|
|
TOTAL |
13262.863 |
12708.379 |
12497.943 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
2277.803 |
2276.290 |
2820.301 |
|
|
|
Other Income |
204.019 |
441.451 |
362.521 |
|
|
|
TOTAL |
2481.822 |
2717.741 |
3182.822 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
12.494 |
76.658 |
77.888 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(13.045) |
(31.201) |
(23.027) |
|
|
|
Employees benefits expense |
0.000 |
0.000 |
0.000 |
|
|
|
Other expenses |
698.932 |
713.013 |
689.745 |
|
|
|
TOTAL
|
1703.037 |
1879.794 |
2354.619 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
778.785 |
837.947 |
828.203 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
612.926 |
493.596 |
517.981 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
165.859 |
344.351 |
310.222 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
58.091 |
71.554 |
78.736 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL ITEM
|
(4.543) |
(15.505) |
(15.019) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
112.310 |
288.303 |
246.504 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
36.700 |
86.000 |
60.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
75.610 |
202.303 |
186.004 |
|
|
Add |
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD |
944.647 |
761.844 |
595.340 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
1.500 |
1.500 |
|
|
|
Dividend |
0.000 |
15.488 |
15.488 |
|
|
|
Tax on Dividend |
0.000 |
2.512 |
2.512 |
|
|
|
Total |
0.000 |
19.500 |
19.500 |
|
|
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
1020.257 |
944.647 |
761.844 |
|
|
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
|
F.O.B. Value of Exports |
420.950 |
385.901 |
603.788 |
|
|
|
Interest Income |
0.003 |
0.581 |
1.226 |
|
|
|
Income from Investments |
0.000 |
0.020 |
0.018 |
|
|
|
TOTAL
EARNINGS |
420.953 |
386.502 |
605.032 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Materials |
12.494 |
76.658 |
77.888 |
|
|
|
Components and Stores parts |
277.372 |
345.322 |
360.334 |
|
|
|
TOTAL
IMPORTS |
289.866 |
421.980 |
438.222 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
0.24 |
0.65 |
0.60 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2014 |
30.06.2014 |
30.09.2014 |
|
Type |
1nd Quarter |
2nd
Quarter |
3nd
Quarter |
|
Revenue |
454.200 |
247.400 |
813.900 |
|
Other Income |
-- |
-- |
-- |
|
Total Income |
454.200 |
247.400 |
813.900 |
|
Expenditure |
(472.000) |
(163.000) |
(440.900) |
|
Interest |
(224.400) |
(114.900) |
(135.100) |
|
PBDT |
(242.200) |
(30.500) |
237.800 |
|
Depreciation |
(11.900) |
(12.100) |
(12.900) |
|
PBT |
(254.100) |
(42.600) |
225.000 |
|
Tax |
-- |
-- |
-- |
|
Net Profit |
(254.100) |
(42.600) |
225.000 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
Net Profit Margin (PAT / Sales) |
(%) |
3.32 |
8.89 |
6.60 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
34.19 |
36.81 |
29.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.27 |
3.28 |
2.69 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
0.08 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.65 |
1.54 |
1.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.05 |
0.90 |
0.82 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
309.761 |
309.761 |
309.761 |
|
Reserves & Surplus |
3061.496 |
3276.687 |
3364.617 |
|
Net worth |
3371.257 |
3586.448 |
3674.378 |
|
|
|
|
|
|
long-term borrowings |
2953.039 |
3771.597 |
4396.235 |
|
Short term borrowings |
1828.252 |
1765.814 |
1662.888 |
|
Total borrowings |
4781.291 |
5537.411 |
6059.123 |
|
Debt/Equity ratio |
1.418 |
1.544 |
1.649 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
2820.301 |
2276.290 |
2277.803 |
|
|
|
-19.289 |
0.066 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
2820.301 |
2276.290 |
2277.803 |
|
Profit |
186.004 |
202.303 |
75.610 |
|
|
6.60% |
8.89% |
3.32% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
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 |
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
Industry Structure
and Development:
In 2013, the production of world
tea crop was 4819 Million Kgs compared to 4608 Million Kgs in 2012. The
increase was due to increase in crops in India by 74 Million Kgs, and Kenya by
60 plus Million Kgs. Sri Lanka crop was marginally ahead by 12 Million Kgs.
The Indian Tea production
increased by around 74 Million Kgs. Most of the gains were in the period June
to October with big increases during the month of July, September and October.
There was a big jump in Orthodox production due to higher opening levels for
Orthodox teas.
Domestic demand for tea
continued to grow by 15-20 Million Kgs each year. The total domestic
consumption in 2012 was 903 Million Kgs and 926 Million Kgs in 2013.
Exports were marginally
higher by 3 Million Kgs at 211 Million Kgs till December 2013. The Indian Tea
Association has estimated a carryover of approximately 87 Million Kgs over two
years. For CTC there was strong domestic demand for good quality teas which
fetched a premium. The increase in Orthodox production resulted in a shortage
of CTC teas which caused prices of best teas to move upwards.
There was big difference in
prices between best and medium quality teas. This trace is likely to continue.
Orthodox tea witnessed good demand mainly from Iran buyers who bought tea
because of favourable Rupee trade terms. Iran purchased 22 Million Kgs of tea
in 2013 compared to 14 Million Kgs in 2012. However, orthodox market showed a
drop from October when Iran buying increased in Sri Lanka, after sanctions were
eased.
In North India, an increase
in wages due to revision as per the Agreement, increase in fuel cost due to
increased prices and loss of crop has resulted in increase in the cost of
production.
During 2013, the Company
sold 12.112 Million Kgs of tea produced in that year, at an average price of Rs
188.06 as compared to 13.176 Million Kgs @ Rs 172.76 in 2012, an increase of Rs
15.30.
Unlike in the industry, the
Company’s exports were lower. The Company exported 1.661 Million Kgs as against
1.758 Million Kgs in 2012. The average price of export was however, much higher
in 2013. The average price was Rs 253.36 as compared to Rs 219.55 in 2012, an
increase of Rs 33.81.
Sales in the domestic
market were lower in quantity but higher in price. In 2013, the Company sold Rs
10.45 Million Kgs at an average price of Rs 177.68 as compared Rs 11.418
Million Kgs in the previous year, at an average Price of Rs. 165.56.
OIL AND NATURAL GAS:
India’s oil and gas imports
that made up one third of the total import bill of the country during 2012-13,
continues to be a major source of anxiety with the Government. Oil accounts for
a quarter of India’s total energy needs. About 75% of the country’s requirement
of oil is imported.
India’s oil demand is projected
to grow by 40% during the next decade, which means domestic oil output will
have to be more than tripled just to be on equal footing with the prevailing
input scenario.
This would call for
proactive measures by the Government of India (GOI) to streamline the
Exploration & Production (E & P) business and associated rules to make
it more investor friendly.
Certain action already
initiated by the GOI in the form of revision of Production Sharing Contract
(PSC) rules and pricing norms are calculated positive steps in this direction.
They would go a long way towards boosting of Exploration & Production
efforts through indigenous and outside investments. Large scale innovations in
the Oil and Gas Sector has become an essential prerequisite for India purely on
economic considerations.
The Oil and Gas scenario in
India during 2012-13 is illustrated through the following parameters:
The estimated reserves of
crude oil and natural gas in India as on 1st April, 2013, was 758.27 Million
Metric Tonnes and 1354.76 Billion Cubic Meters respectively.
Crude oil production during
2012-13 was 37.86 Million Metric Tonnes, which was 0.60% higher than the
Production during 2011-12 (38.09 Million Metric Tonnes).
However, the gross
production of natural gas in the country during 2012-13 was 40.68 Billion Cubic
Meters, which was 14.47% lower than that of 2011-12 (47.56 Billion Cubic
Meters).
During 2012-13, the country
imported 184.79 Million Metric Tonnes of crude oil and 9.70 Million Tonnes of
LNG, against 171.73 Million Tonnes of crude oil and 9.70 Million Tonnes of LNG
during 2011-12.
Indigenous production of
oil and natural gas during 2014-15 has been projected at 45.57 Million Metric
Tonnes and 119.9 Billion standard cubic meters per day.
THE PRESENT STATUS ON OIL AND GAS PROJECT
WITH ACIL:
The Company has three Oil
and Gas Fields/Blocks in Assam Arakan Basin. Amguri (Discovered Field), AA-ON/7
(Exploration Block) and AA-ONN-2005/1 (Exploration Block) having Participating
Interest (PI) of 40%, 35% and 10% respectively. Amguri Oil Field and AA-ON/7
Exploration Block were operated under a consortium with Canoro Resources
Limited (CRL), a Canadian based E&P Company while AA-ONN-2005/1 Exploration
Block is under consortium with ONGC and OIL.
GOI terminated Production
Sharing Contract (PSC) of Amguri Field qua CRL with 60% PI and operatorship
with effect from 29th August, 2010 for breach of PSC. CRL closed the operation
of Amguri in December, 2010 and GOI considering its vesting right on 60% PI
handed over the Amguri Field to ONGC on 16th March, 2011 to continue the
operations till the ownership of 60% PI and operatorship were finalized. The
Company had already staked its claim on 60% PI in accordance with the
provisions of PSC being the sole non-defaulting contractor. After a prolonged
delay, GOI had finally appointed the Company as the operator of Amguri Field
vide its letter dated 2nd January, 2013. But the Amguri Field was yet to be
handed over to the Company by ONGC, who has been appointed by GOI as their
representative.
The Company’s rightful
claim of 60% PI in Amguri Field is now pending before the Arbitral Tribunal,
where the dispute on ownership of 60% PI has been referred for resolution. The
Company has claimed the 60% PI both under PSC and JOA under which 60% PI was
acquired from CRL through an Arbitral Award dated 21st November,
2011. The Arbitral proceedings against GOI had commenced and it is expected
that the Award will be pronounced during the current year.
As per the said Award, the Company
had also got a damage claim of US$ 39.12 Million (Rs2421.400 Millions) against
CRL. The Tribunal had assigned a value of US$ 4.16 Million (Rs. 248.500
Millions) for 60% PI in Amguri and US$ 2.2071 Million (Rs. 136.600 millions)
for 52.9% shares of CRL, thereby awarding a net damage claim of US$ 32.75
Million (Rs. 2027.100 Millions) against CRL.
For enforcement of the
Arbitral Tribunal Award before Canadian Court, the Company had initiated legal
steps by filing Execution Petition on 9th November, 2012, before the Supreme
Court of British Columbia. The hearing of the Execution Petition had taken
place in January, 2014 and the final Court Order was waited. Based on the
proceedings of the Court, the Company was quite hopeful in getting favourable
Order.
Having
finally appointed as the operator of the Field, the Company is quite upbeat in
commencing the production of oil and gas, which has remained suspended after
the Field was closed by CRL in December, 2010.
In respect of AA-ON/7
Exploration Block, the area falls into two States. Assam and Nagaland. The
exploration activities in Assam were completed and the area has been
relinquished as there was no discovery of oil and gas. In order to pursue
exploration activities in the State of Nagaland, a new PSC in continuation of
the earlier PSC on the basis of the terms and conditions not inferior to the
existing PSC will be executed as approved by the Cabinet Committee of Economic
Affairs (CCEA) on 5th December, 2009. As approved by CCEA, the new PSC would permit
7 years exploration period from the date of signing the PSC.
The execution of new PSC
with the Company has been delayed due to ongoing legal dispute on Amguri as GOI
in AA-ON/7 Exploration Block also has to decide the ownership of 65% PI and
operatorship, which was earlier held by CRL and terminated by GOI vide its
letter dated 10th January, 2013. Similar to Amguri Field, the Company as per
PSC is also entitled to 65% PI and operatorship of this Block, earlier held by
CRL, as the Company remained as the sole non-defaulting contractor. The Company
has already claimed the PI and operatorship from GOI. The Company feels that
once the ownership of 65% PI is resolved, GOI will take similar decision on
AA-ON/7.
With regard to AA-ONN-2005/1 Exploration Block
where ONGC is the operator, the Geological and Geophysical (G&G) activities
are under progress, which are the activities in Phase -1 of Exploration Phase.
The drilling activities in AA-ONN-2005/1 Exploration Block will only commence
after G&G activities are concluded and drilling potential is identified.
SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:
In the Financial Year 2013,
the Company had operations in two geographical segments, viz. domestic market
and export market whereas around 83 per cent of the Company’s Turnover is from
the domestic market segment, and the balance is from the export market segment.
The Company has 14 Tea
Estates and 3 Oil Blocks all in the State of Assam. In respect of the Tea
business, total Sales is aggregated to Rs. 2277.800 Millions, out of which,
Domestic Sales was 104.50 Lacs Kg amounting to Rs. 1856.900 Millions And Export Sales was 16.61
Lacs Kg amounting to Rs. 420.900 Millions.
INTERNAL CONTROL
SYSTEMS AND THEIR ADEQUACY:
The Internal Control
Systems of the Company is adequate and commensurate its size and the nature of
its operations. These have been designed to provide reasonable assurance with
regard to recording and providing reliable financial and operational
information, complying with applicable statutes, safeguarding assets from
unauthorized use or losses, executing transactions with proper authorization
and ensuring compliance of corporate policies. Two Independent Firms of
Chartered Accountants carry out Internal Audit at the Tea Estates on a regular
basis.
The Company has an Audit
Committee, the details of which have been provided in the Corporate Governance
Report. The Audit Committee reviews the Audit Reports submitted by the Internal
Auditors. Suggestions for improvement are considered and the Audit Committee
follows up the implementation of corrective actions.
UNSECURED LOAN
|
Unsecured Loan |
31.12.2013 (Rs.
in Millions) |
31.12.2012 (Rs.
in Millions) |
|
Short-term
borrowings |
|
|
|
Intercorporate Deposit |
54.985 |
100.000 |
|
Total |
54.985 |
100.000 |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30TH
SEPTEMBER, 2014
[RS.
IN MILLIONS]
|
PARTICULARS |
3 Months Ended |
6 Months Ended |
|
|
30.09.2014 [Unaudited] |
30.06.2014 [Unaudited] |
30.09.2014 [Unaudited] |
|
|
1. Income
from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
798.754 |
206.282 |
1275.812 |
|
b) Other operating income |
15.094 |
41.069 |
104.612 |
|
Total
Income from Operations (net) |
813.848 |
247.351 |
1380.424 |
|
|
|
|
|
|
2.Expenditure |
|
|
|
|
Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
(108.118) |
(302.419) |
(272.878) |
|
Employees benefit expenses |
302.188 |
276.879 |
797.934 |
|
Depreciation and Amortization |
12.847 |
12.137 |
36.869 |
|
Exchange Fluctuation |
4.536 |
0.289 |
2.448 |
|
Other expenditure |
29.293 |
32.966 |
92.629 |
|
Power and Fuel |
78.462 |
49.775 |
144.509 |
|
Consumption of store and Spares |
84.728 |
93.265 |
237.179 |
|
Freight Shipping and Selling Expenses |
49.835 |
12.200 |
77.079 |
|
Total expenses |
453.771 |
175.092 |
1112.769 |
|
|
|
|
|
|
3. Profit from operations before other income, and
financial costs and Exceptional Items |
360.077 |
72.259 |
267.656 |
|
Profit/ (Loss) before Interest, Depreciation, Tax and
Amortisation |
|
|
|
|
4. Other income |
- |
- |
134.986 |
|
5. Profit from ordinary activities before finance costs |
360.077 |
72.259 |
402.641 |
|
6. Finance costs |
135.132 |
114.855 |
474.397 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
224.945 |
(42.596) |
(71.756) |
|
8. Exceptional item |
- |
- |
- |
|
9. Profit from ordinary activities before tax
Expense: |
224.945 |
(42.596) |
(71.756) |
|
10.Tax expenses |
- |
- |
- |
|
11.Net Profit / (Loss) from ordinary activities
after tax (9-10) |
224.945 |
(42.596) |
(71.756) |
|
12.Extraordinary Items (net of
tax expense) |
- |
- |
- |
|
13.Net
Profit / (Loss) for the period (11 -12) |
224.945 |
(42.596) |
(71.756) |
|
14.Paid-up
equity share capital (Nominal value Rs.10 per share) |
309.761 |
309.761 |
309.761 |
|
15.
Reserve excluding Revaluation Reserves as per balance sheet of previous
accounting year |
- |
- |
- |
|
16.i) Earnings per share (before
extraordinary items) of Rs.10/- each) (not annualised): |
|
|
|
|
(a) Basic and diluted |
0.73 |
(0.14) |
(0.23) |
|
|
|
|
|
|
A.
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1.
Public Shareholding |
|
|
|
|
- Number of shares |
183920547 |
164765547 |
183920547 |
|
- Percentage of shareholding |
59.38 |
53.19 |
59.38 |
|
2.
Promoters and Promoters group Shareholding |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
6406000 |
25206000 |
6406000 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
5.09 |
17.38 |
17.13 |
|
Percentage of shares (as a % of total share capital of the
company) |
2.07 |
8.14 |
2.07 |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
119434416 |
119789416 |
119434416 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
94.91 |
82.82 |
94.91 |
|
Percentage of shares (as a % of total share capital of the
company) |
38.55 |
38.67 |
38.55 |
|
|
PARTICULARS |
3
Months Ended 30.09.2014 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
1 |
|
|
Disposed of during the quarter |
1 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
1. The Company is in the business of
cultivation, manufacture and sale of tea which is seasonal in nature and as such
the quarterly figures are not indicative of the likely results for the full
year. The Company is also engaged in the business of oil and gas exploration.
2. As the ultimate income-tax liability will
depend on the end results and in view of the seasonal nature of the tea
business, provision for current tax and deferred tax will only be determined at
the end of the year.
3. The cost of raw materials represents green
leaf purchased from estates not belonging to the Company. As the production of
green leaf (raw materials consumed by the Company for the manufacture of tea)
from the Company owned estates involves an integrated process having various
stages such as nursery, planting, cultivation etc., their respective values at
the intermediate stage could not be ascertained.
4. Figures for the previous periods / year have
been regrouped and/or rearranged, wherever necessary.
5. The above Results have been reviewed by the
Audit Committee and approved by the Board of Directors at its Meeting held on
November 14, 2014.
6. In view of the explanation provided by
Ministry of Corporate Affairs vide circular no 08/2014 dated April 04, 2014,
the Statement of Standalone Unaudited Results for the Quarter ended September
30, 2014 have been drawn up in accordance with the provisions of the Companies
Act 1956.
7. Current Assets includes INR 31.72 crores
receivable from the buyers, in respect of Sale of Salonah Tea Estate, pending
completion of certain formalities.
Segment wise Revenue Results and Capital Employed for the
quarter ended 30th September 2014
|
Particulars |
Three months ended |
Year ended |
||
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
1 |
Segment Revenue |
|
|
|
|
|
a Plantation |
798.754 |
206.280 |
1275.812 |
|
|
b Oil and Gas |
- |
- |
- |
|
|
Net Sales I
Income from Operations |
798.754 |
206.280 |
1275.812 |
|
|
|
|
|
|
|
2 |
Segment Results
Profit I (Loss) (before tax, finance cost and exceptional items) from Segment |
|
|
|
|
|
a Plantation |
359.504 |
69.787 |
275.680 |
|
|
b Oil and Gas |
(31.085) |
(10.101) |
(34.522) |
|
|
Total |
328.419 |
59.686 |
241.158 |
|
|
Less: |
|
|
|
|
|
i) Finance costs |
103.474 |
102.282 |
312.914 |
|
|
Total
Profit(Loss) before Tax |
224.945 |
(42.596) |
(71.756) |
|
|
|
|
|
|
|
3 |
Segment Capital
employed |
|
|
|
|
|
a Plantation |
2349.667 |
2346.546 |
2349.667 |
|
|
b Oil and Gas |
5142.585 |
5021.219 |
5142.585 |
|
|
c Unallocated |
2382.688 |
2459.235 |
2382.688 |
|
|
Total Segment
Capital Employed |
9874.940 |
9827.000 |
9874.940 |
FIXED ASSETS:
·
Land
and Development
·
Buildings
·
Plant
and Machinery
·
Oil
and Gas Producing Properties
·
Vehicles
·
Furniture
·
Computer
Software
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 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] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
UK Pound |
1 |
Rs.95.78 |
|
Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
|
Information
Gathered by : |
DPA |
|
|
|
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILITY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
33 |
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.