MIRA INFORM REPORT

 

 

Report No. :

340872

Report Date :

14.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SESHASAYEE PAPER AND BOARDS LIMITED

 

 

Registered Office :

Pallipalayam Cauvery R S P O, Erode – 638007, Tamilnadu

Tel. No.:

91-4288-240221 / 240228

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

22.06.1960

 

 

Com. Reg. No.:

000364

 

 

Capital Investment / Paid-up Capital :

Rs.126.136 Million

 

 

CIN No.:

[Company Identification No.]

L21012TZ1960PLC000364

 

 

IEC No.:

0488040841

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHES17099F

 

 

PAN No.:

[Permanent Account No.]

AACCS1192G

 

 

Legal Form :

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

 

 

Line of Business :

The Company is engaged in the manufacturing of Paper and Paper Boards.

 

 

No. of Employees :

1000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (58)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is an old and established company incorporated in the year 1960, having fine track.

 

Rating takes into consideration sound financial risk profile of the company marked by strong networth position along with decreasing debt level of the company is FY15.

 

Management has almost witnessed a stable revenue base, whereas reported a decline in its net profitability from its operations during FY15.

 

Rating however, derives strength from the established track record of the company in the paper industry and its well established position in Southern India.

 

Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitments.

 

In view of aforesaid, the company can be considered normal for business dealings with 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 : A+

Rating Explanation

Adequate degree of safety and low credit risk.

Date

07.01.2015

 

Rating Agency Name

CARE

Rating

Short term bank facilities : A1

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

07.01.2015

 

 

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 31-03-2015.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Sriram

Designation :

Accountant

Contact No.:

91-4288-240221

Date :

11.09.2015

 

 

LOCATIONS

 

Registered Office / Unit 1 :

Pallipalayam Cauvery R S P O, Erode – 638007, Tamilnadu, India

Tel. No.:

91-4288-240221 / 240228 / 240222 / 240223 / 240224 / 240225 / 240226 / 24

Fax No.:

91-4288-240229

E-Mail :

edoff@spbltd.com

Website :

http://www.spbltd.com

 

 

Chennai Office :

1st Floor, 109 Nungambakkam High Road, Chennai - 600034, Tamilnadu, India

Tel. No.:

91-44-28278000 / 28233967 / 28283428 / 28283446

Fax No.:

91- 28275086

E-Mail :

mdoff@spbltd.com

 

 

Central Marketing Office:

ASMA Building, No-84, T.T.K Road, 1st Floor, Alwarpet, Chennai - 600 018, Tamilnadu, India

Tel. No.:

91-44-24984571 / 24982202 / 24982195 / 24661047

Fax No.:

91-44-24661086 / 24982139

E-Mail :

cmo@spbltd.com

 

 

Unit 2 :

Elanthaikulam, Singamparai Post, Mukkudal (via), Tirunelveli – 627601, Tamilnadu, India

 

 

DIRECTORS

 

AS ON 31.03.2015

 

Name :

Gopalaratnam Natarajan

Designation :

Whole-Time Director

Address :

CMD'S Bungalow, SPB Limited, Cauvery RS PO, Pallipalayam, Erode - 638007, Tamilnadu, India

Date of Appointment :

26.12.1987

DIN No.:

00001945

 

 

Name :

Kasi Viswanathan Subramanian Kallidaikurichi

Designation :

Managing Director

Address :

2102 Superintendents' Quarters, Seshasayee Paper and Boards Limited, Erode - 638007, Tamilnadu, India

Date of Appointment :

29.01.2005

DIN No.:

00003584

 

 

Name :

Ravi Vira Gupta

Designation :

Director

Address :

9 Anand Lok, August Kranti Marg,, New Delhi - 110049, India

Date of Appointment :

26.09.2008

DIN No.:

00017410

 

 

Name :

Lakshminarasimha Ayyalu Somayaji

Designation :

Director

Address :

29/4, "Dove", Valmiki Street, Thiruvanmiyur, Chennai - 600041, Tamilnadu, India

Date of Appointment :

29.09.2014

DIN No.:

00049772

 

 

Name :

Subbaraman Narayan

Designation :

Director

Address :

8, Golf Apartments, Sujan Singh Park, New Delhi - 110003, India

Date of Appointment :

18.01.2007

DIN No.:

00094081

 

 

Name :

Hansraj Varma

Designation :

Nominee Director

Address :

29, Nas Garden, Korattur Agraharam, Chennai - 600076, Tamilnadu, India

Date of Appointment :

25.07.2014

DIN No.:

00130877

 

 

Name :

Pichai Venkataraman

Designation :

Whole-Time Director

Address :

Flat No 6, J Apartments, 31 First Main Road,, Kasturba Nagar, Adayar, Chennai - 600020, Tamilnadu, India

Date of Appointment :

29.01.2005

DIN No.:

00263934

 

 

Name :

Nanditha Chinny Krishna

Designation :

Director

Address :

No 398 (New), T T K Road, Alwarpet, Chennai - 600018, Tamilnadu, India

Date of Appointment :

29.09.2014

DIN No.:

00906944

 

 

Name :

Prabakar

Designation :

Nominee Director

Address :

A 1/4, Saf Games Villages,, Inner Ring Road, Koyambedu,, Chennai - 600107, Tamilnadu, India

Date of Appointment :

01.08.2015

DIN No.:

01238040

 

 

Name :

Sridar Venkatesan

Designation :

Director

Address :

303A, H. P. Employees CHS, Plot No. NDR-11, Tilak, Nagar, Chembur, Mumbai - 400089, Maharashtra, India

Date of Appointment :

04.06.2009

DIN No.:

02241339

 

 

 

KEY EXECUTIVES

 

Name :

Mr. Sriram

Designation :

Accountant

 

 

Name :

Kasi Viswanathan Subramanian Kallidaikurichi

Designation :

Chief Executive Officer

Address :

2102 Superintendents' Quarters, Seshasayee Paper and Boards Limited, Erode - 638007, Tamilnadu, India

Date of Appointment :

30.05.2014

DIN No.:

ABZPK8584D

 

 

Name :

Pichai Venkataraman

Designation :

Chief Financial Officer and Secretary

Address :

Flat No.6, J Apartments, First Cross Street, Kasturba Nagar, Chennai - 600020, Tamilnadu, India

Date of Appointment :

14.04.1991

DIN No.:

ADXPP2121K

 

 

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

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

 

 

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

18352

0.15

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

3911403

31.01

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

3929755

31.15

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

 

 

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

1547695

12.27

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

1547695

12.27

Total shareholding of Promoter and Promoter Group (A)

5477450

43.42

 

 

 

(B) Public Shareholding

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

 

 

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

1000

0.01

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

3568

0.03

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

1800000

14.27

http://www.bseindia.com/include/images/clear.gifInsurance Companies

515576

4.09

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

100

0.00

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

2320244

18.39

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

 

 

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

926494

7.35

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

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

1560126

12.37

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1364369

10.82

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

964945

7.65

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

2514

0.02

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

576303

4.57

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

386128

3.06

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

4815934

38.18

Total Public shareholding (B)

7136178

56.58

 

 

 

Total (A)+(B)

12613628

100.00

 

 

 

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

 

 

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

0

0.00

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

0

0.00

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

0

0.00

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

12613628

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is engaged in the manufacturing of Paper and Paper Boards.

 

 

Products :

Paper and Paper Boards

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Cash and Cheque

 

 

Purchasing :

Cash and Cheque

 

PRODUCTION STATUS : NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Wholesalers, Retailers and End Users

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :

Bank Name

Syndicate Bank

Branch

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

  • Canara Bank
  • Central Bank of India
  • UCO Bank

 

 

Facilities :

Secured Loan

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Term Loans from Banks

 

 

Unit: Erode :

 

 

Working Capital Term Loan

[Working Capital Term Loan, including its current maturities, is secured by hypothecation of Company’s Captive Power Plant Assets of Boiler, Turbo Generator and their Auxiliaries at Unit-Erode.

Terms of repayment :

The Working Capital Term Loan is repayable in 8 equal quarterly installments of Rs. 31.250 Million each commencing from March 2015. Period and amount of continuing default : Rs. Nil]

93.750

218.750

Mill Development Plan II-Phase I-Term Loan

[Secured by :

(i) Hypothecation of Mill Development Plan II, Phase I assets at Unit: Erode

(ii) Mortgage of immovable properties of Unit: Erode, consisting of land, buildings, fixed plant and machinery, fixtures and fittings (exclusive of 57.93 acres of land together with structures thereon and Captive Power Plant Assets) to the extent of Rs. 850.000 Million.

Terms of repayment :

The loan is repayable in 24 equated quarterly installments with effect from April 01, 2017. Period and amount of continuing default : Rs. Nil]

80.000

0.000

Unit: Tirunelveli :

 

 

Term Loan

[Term Loan, including its current maturities is

Secured by :

a) a charge, by way of mortgage of immovable properties of the company, consisting of land, building, fixed plant and machinery,

Fixtures and fittings of Unit Tirunelveli.

b) Hypothecation of movables, including movable plant and machinery and book debts of Unit-Tirunelveli.

Terms of repayment :

The loan is repayable in quarterly instalments of Rs. 54.100 Million from January 2014 to October 2015, Rs. 75.650 Million from January 2016 to October 2017, Rs. 86.500 Million from January 2018 to April 2019 and the balance Rs. 81.000 Million will be paid in July 2019.

Period and amount of continuing default : Rs. Nil]

1129.550

1367.500

 

 

 

Short-term borrowings

 

 

Working Capital Borrowings from

Banks

 

 

Unit: Erode :

[Secured by :

- Hypothecation of stocks of Raw Materials, Stores, Spares, Chemicals and others, including Goods-in-Transit, Stock-in-Trade,

Stock-in-Process, Finished Goods and Book Debts of Unit: Erode and

- Second charge, by way of mortgage of immovable properties of Unit-Erode, consisting of land, buildings, fixed plant and machinery, fixtures and fittings (exclusive of 57.93 acres of land, together with structures thereon and Captive Power Plant Assets) to the extent of Rs. 850.000 Million]

828.900

1143.616

Unit: Tirunelveli :

[Secured by :

- Hypothecation of stocks of Raw Materials, Stores, Spares, Chemicals and others, including Goods-in-Transit, Stock-in-Trade,

Stock-in-Process, Finished Goods and Book Debts of Unit-Tirunelveli and

- Second charge, on the fixed assets of Unit: Tirunelveli.

Period and amount of default : Rs. Nil]

431.645

492.886

Total

2563.845

3222.752

 

 

 

 

Auditors :

 

Name :

Suri and Company

Chartered Accountants

Address :

Chennai, Tamilnadu, India

 

 

Name :

S Viswanathan

Chartered Accountant

Address :

Chennai, Tamilnadu, India

 

 

Name :

Maharaj N R Suresh and Company

Chartered Accountants

Address :

Chennai, Tamilnadu, India

 

 

Memberships :

---

 

 

Collaborators :

---

 

 

Other Related Parties (Control):
  • Esvi International (Engineers and Exporters) Limited (ESVIN)
  • SPB Equity Shares Trust

 

 

Presumption of significant influence :
  • Ponni Sugars(Erode) Limited (PEL)
  • SPB Projects and Consultancy Limited (SPB-PC)
  • Time Square Investments Private Limited (TSI)
  • Dhanashree Investments Private Limited (DSI)
  • Ultra Investments and Leasing Company Private Limited (UIL)

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

40000000

Equity Shares

Rs.10/- each

Rs.400.000 Million

30000000

Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.300.000 Million

 

 

 

Rs.700.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

12613628

Equity Shares

Rs.10/- each

Rs.126.136 Million

 

Reconciliation of the shares outstanding at the beginning and at the end of the year:

 

Particulars

No. of Shares

(In Million)

Amount

(Rs. In Million)

At the beginning of the year

12.614

126.136

Add : Issued during the year

0.000

0.000

At the end of the year

12.614

126.136

 

Details of shareholders holding more than 5% shares of the Company :

 

Particulars

No. of Shares (In Million)

% holding to Equity Capital

Tamilnadu Industrial Investment Corporation Limited

1.800

14.27

Ponni Sugars (Erode) Limited

1.768

14.02

Synergy Investments Pte Limited

1.548

12.27

Time Square Investments (P) Limited

1.358

10.76

 

During the period of five years immediately preceding 31.03.2015, 13 63 628 equity shares of Rs. 10 each, fully paid up pursuant to a Scheme of Amalgamation of SPB Papers Limited with the Company were issued for consideration other than cash.

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2015

31.03.2014

31.03.2013

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

126.136

126.136

112.500

(b) Reserves & Surplus

3803.792

3715.153

3506.280

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

13.636

Total Shareholders’ Funds (1) + (2)

3929.928

3841.289

3632.416

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1575.748

1931.062

1940.832

(b) Deferred tax liabilities (Net)

1006.656

926.002

781.513

(c) Other long term liabilities

155.195

146.400

134.222

(d) long-term provisions

98.654

111.978

147.718

Total Non-current Liabilities (3)

2836.253

3115.442

3004.285

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1260.545

1636.502

1773.740

(b) Trade payables

2255.783

1766.506

1944.806

(c) Other current liabilities

586.398

458.636

730.918

(d) Short-term provisions

136.872

117.144

80.328

Total Current Liabilities (4)

4239.598

3978.788

4529.792

 

 

 

 

TOTAL

11005.779

10935.519

11166.493

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

6471.157

6646.240

7105.912

(ii) Intangible Assets

12.726

15.185

17.895

(iii) Capital work-in-progress

133.974

90.933

24.479

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

319.944

319.944

227.620

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

230.510

231.914

220.042

(e) Other Non-current assets

0.000

0.000

3.732

Total Non-Current Assets

7168.311

7304.216

7599.680

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

15.379

0.000

0.000

(b) Inventories

1344.235

1122.858

871.259

(c) Trade receivables

1235.175

1204.521

991.033

(d) Cash and cash equivalents

103.126

299.605

739.782

(e) Short-term loans and advances

1063.333

935.878

884.367

(f) Other current assets

76.220

68.441

80.372

Total Current Assets

3837.468

3631.303

3566.813

 

 

 

 

TOTAL

11005.779

10935.519

11166.493

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

10141.190

10108.505

8344.921

 

Other Income

58.456

52.775

41.666

 

TOTAL

10199.646

10161.280

8386.587

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

5794.391

5443.615

4011.455

 

Purchases of Stock-in-Trade

237.061

276.642

282.088

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(23.466)

13.162

69.403

 

Employees benefits expense

641.284

560.545

540.558

 

Exceptional Items

32.154

0.000

0.000

 

Other expenses

2599.084

2578.093

2382.319

 

TOTAL

9280.508

8872.057

7285.823

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

919.138

1289.223

1100.764

 

 

 

 

 

Less

FINANCIAL EXPENSES

372.074

387.082

444.616

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

547.064

902.141

656.148

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

292.946

489.749

491.448

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

254.118

412.392

164.700

 

 

 

 

 

Less

TAX

80.654

144.489

-40.437

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

173.464

267.903

205.137

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 307.558

 348.685

 302.578

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

Transfer to General Reserve

 100.000

 250.000

 100.000

 

MAT credit of prior period availed

 24.099

0.000

 0.000

 

Proposed Dividend

50.455

50.455

50.455

 

Tax on Dividend

 10.271

8.575

 8.575

 

 

 

 

 

 

Balance Carried to the B/S

296.197

 307.558

 348.685

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

1219.749

1158.509

1087.128

 

TOTAL EARNINGS

1219.749

1158.509

1087.128

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

1171.796

1386.186

302.868

 

Stores, Spares and Chemicals

1183.947

840.197

998.499

 

Capital Goods

25.060

2.072

21.013

 

TOTAL IMPORTS

2380.803

2228.455

1322.380

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

13.75

21.24

16.26

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current maturities of long term loans

446.841

327.140

623.605

Cash generated from operations

NA

NA

NA

Net cash from operating activities

1046.682

655.996

2092.527

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

 

 

30.06.2015

(Unaudited)

 

 

 

1st Quarter

Net Sales

 

 

2375.000

Total Expenditure

 

 

2140.400

PBIDT (Excl OI)

 

 

234.600

Other Income

 

 

7.900

Operating Profit

 

 

242.500

Interest

 

 

87.800

Exceptional Items

 

 

0.000

PBDT

 

 

154.700

Depreciation

 

 

74.700

Profit Before Tax

 

 

80.000

Tax

 

 

26.100

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

53.900

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

53.900

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

1.71

2.65

2.46

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

9.06

12.75

13.19

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.41

3.92

1.51

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.11

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.84

1.01

1.19

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.91

0.91

0.79

 

 

STOCK PRICES

 

Face Value

Rs.10.00/-

Market Value

Rs.236.20/-

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

112.500

126.136

126.136

Reserves & Surplus

3506.280

3715.153

3803.792

Share Application money pending allotment

13.636

0.000

0.000

Net worth

3632.416

3841.289

3929.928

 

 

 

 

long-term borrowings

1940.832

1931.062

1575.748

Short term borrowings

1773.740

1636.502

1260.545

Current maturities of long term loans

623.605

327.140

446.841

Total borrowings

4338.177

3894.704

3283.134

Debt/Equity ratio

1.194

1.014

0.835

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

8344.921

10108.505

10141.190

 

 

21.134

0.323

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

8344.921

10108.505

10141.190

Profit

205.137

267.903

173.464

 

2.46%

2.65%

1.71%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

---

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

No

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

---

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

LITIGATION DETAILS

 

 

Madras High Court

Case Status Information System

 

Case Status :

Pending

Status Of :

TAX CASES  392  Of  2008

Litigants :

COMMISSIONER OF INCOME TAX  Vs.  M/S SESHASAYEE PAPER AND

Pet's Adv :

M/S.PUSHYA SITARAMAN

Res's Adv :

M/S.DR.ANITA SUMANTH

Last Date of Hearing :

---

Next / Final Date of Hearing :

Monday, June 22, 2015

Case Updated On :

Wednesday, June 24, 2015

Category :

---

 

Connected Application(s)

No Connected Application

 

Connected Matter(s)

No Connected Cases

 

 

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Other Loans and Advances :

 

 

Interest Free Sales Tax Loan

[Terms of repayment :

Interest Free Sales Tax Deferral Loan is repayable over a period of ten years from 01 06 2013.

Period and amount of continuing default : Rs. Nil]

272.448

344.812

Total

272.448

344.812

 

CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR:

 

PARTICULARS

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Contingent Liabilities :

 

 

(a) Claims against the Company not acknowledged as debts

 

 

(1) Demands relating to Central Excise, Customs duty, Service Tax and VAT contested and appeals pending before High Court, CESTAT and other Appellate Authorities

263.691

259.941

(2) Income Tax demand contested and appeals pending before High Court and CIT (A)

76.352

76.352

(3) Others- Demands contested and pending before High Court and other Appellate Authorities

251.854

201.546

(b) Guarantees

1.950

0.900

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10545239

31/12/2014

600,000,000.00

SYNDICATE BANK

1168, METTUR ROAD, MUTHAIAH COMPLEX, ERODE, TAMIL 
NADU - 638011, INDIA

C41510835

2

10467831

14/12/2013

250,000,000.00

SYNDICATE BANK

1168, METTUR ROAD, MUTHAIAH COMPLEX, ERODE, TAMIL 
NADU - 638011, INDIA

B92611334

3

10335473

30/03/2015 *

3,530,000,000.00

CANARA BANK

THOUSAND LIGHTS BRANCH, NO.5, GREAMS ROAD, CHENNA 
I, TAMIL NADU - 636006, INDIA

C51373421

4

90007300

29/03/2013 *

2,900,000,000.00

SYNDICATE BANK (AS THE LEADER OF CONSORTIUM)

1168, METTUR ROAD, MUTHAIAH COMPLEX, ERODE, TAMIL 
NADU - 638001, INDIA

B73229635

 

* Date of charge modification

 

OPERATIONS PRODUCTION

 

During the year, the production at Unit : Erode was 1 18 378 tonnes, (1 18 197 tonnes in 2013-14). Production was constrained due to restrictions imposed on Grid Power drawal by the State Government especially when Annual Shuts were taken upon their Power Plants. Unit : Erode also produced 20 138 tonnes of Wet Lap Pulp during the year to meet, in part, the pulp requirements of Unit: Tirunelveli.

 

Unit: Tirunelveli produced 59 526 tonnes of paper (60 075 tonnes in 2013-14). Production was affected by frequent power outages in the Grid System as well as inadequate receipt of orders, following subdued market conditions.

 

Overall production of paper of the Company was 1 77 904 tonnes (1 78 272 tonnes in 2013-14), marginally lower than the previous year.

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

GLOBAL

 

Paper Industry, occupies a prestigious position, among the various manufacturing enterprises globally, in view of its significant contribution to the society. Role of paper in promotion of literacy, propagation of information and knowledge, packaging commodities and commercial items of value, makes it an indispensable product. Its hygiene products offer unique solutions to society’s needs.

 

Despite predictions that the digital revolution would make paper obsolete, paper remains central to their lives. Paper is interwoven with human life in innumerable ways. Think of the hundreds of times, they touch paper, in a day. Paper is a bio-degradable product with a benign footprint at the end of its life cycle and this adds further strength to this product, promoting its growing usage.

 

Paper Industry is also a significant player in the World Economy. Its annual revenue exceeds US $ 500 billion. World consumption of paper and paper boards grew from 169 million tonnes in 1981 to 253 million tones in 1993 and to 352 million tonnes in 2005. Current consumption is of the order of 400 million tonnes. Roughly half of this consumption is by North America and Europe. This has been declining since 2006 while steeply rising in China and other Asian Economies. About half of the paper produced each year is recycled. (200 million tonnes in 2012).

 

Demand, though flat, currently, due to subdued economic conditions globally is projected to grow by about 2% / 3% per annum. While mature markets, may see a declining market in printing and writing sector, positive growth in packaging and hygiene grades is forecast.

 

Emerging markets are expected to grow at a CAGR of 4-5%. India is expected to post strongest growth of 6% - 7% per annum in the coming years. China and Russia are also expected to register significant growth rates.

 

The four key Paper and Board categories are:

 

Newsprint, Coated/Uncoated Woodfree Papers, Tissue Papers and Papers and Boards for packaging applications. Growth rate will vary by grade. Tissue, container board and carton board are expected to witness higher growth rates.

 

As per European Environmental Paper Network (EEPN), Paper Industry should enable a clean, healthy just and sustainable future for all life on Earth. EEPN’s vision encompasses 7 principles; namely: Reduce global paper consumption and promote fair access to paper, maximize recycled paper content, ensure social responsibility, source fibre responsibly, reduce greenhouse gas emissions, ensure clean products and ensure transparency and integrity.

 

China is the largest producer and consumer of paper, producing and using more than 100 million tonnes of paper and board annually. It is the biggest importer of recovered paper and producer of recycled paper. The Chinese Environment Paper Network (CEPN) has flagged its major concerns like, Pollution of water from untreated mill effluent, unsustainable sourcing of fibre for Mills, imports of pulp from countries causing deforestation, insufficient levels of wastepaper recovery and wasteful use of paper.

 

The Asian Printing and Writing Paper Market experienced a disappointing year in 2013 as both demand and producer’s margins were weak due to gloomy global economies and overcapacity issues. Such trend persisted in 2014 as well.

 

The Global Pulp and Paper Industry has contracted in the mature markets primarily in the printing and writing sector due to transition to digital media and paperless communication across developed economies. However, manufacturing booms in many emerging markets have partially offset the decline by driving increased demand for paper in packaging applications. As a whole, the industry is expected to shift its focus towards packaging and sanitary products. Growth in developing markets is expected to outpace revenue increases in USA and Europe. The theme of sustainability dominates any discussion on the future of Pulp and Paper Industry. Companies strive hard to sustain their green initiatives to reduce the carbon footprint across their businesses.

 

DOMESTIC

 

India’s production in the year 2013-14 stood at 11.38 million tonnes while the installed capacity is about 12.75 million tonnes. This enabled India to maintain its position as the 11th largest producer of paper in the world. However, the Indian Paper Industry accounted for a meagre 3% of global paper demand. The percapita consumption amounted to about 11 kgs which is significantly lower than the world average of around 58 kgs. India’s per capita consumption is also lower than China’s (65 kg), Indonesia’s (22 kg), Malaysia’s (25 kg), and of course USA’s (312 kg) consumption levels. This indicates the ample scope available for expansion of the Indian Paper Industry.

 

While the market size and per capita consumption are relatively low, they have exhibited a rising trend over past several years, from 7.3 kg in 2008 to 11 kg in 2013. As per ICRA, the total paper consumption has grown at a CAGR of around 6% over last decade with none of the last ten years showing a decline in consumption demand. The long-term demand outlook for the Indian paper industry remains favorable driven by increasing literacy levels, growth in print media (particularly in the vernacular languages), higher government spending on education sector, changing urban lifestyles as well as economic growth. Given that these factors are likely to be sustained, the paper industry is likely to continue growing at a rate of 6-8% in the medium to long term although there may be aberrant years given the cyclical nature of the industry.

 

The Industry faced considerable challenges in 2014-15, resulting in building up of inventory and huge erosion in manufacturers’ margins. Poor growth in demand, consequent on a sluggish economy, unabsorbed excess capacity in the Industry, product substitution and competition from imports were largely responsible for the lacklustre performance of the Industry. However, the Industry is projected to grow to reach 22.00 million tonnes of production by 2024-25, driven by the emphasis on education and promotion of literacy by the Government and enhanced demand for packaging grades due to rising retail trade and e-commerce.

 

The industry, however, is highly fragmented. As per industry sources, there are more than 1000 paper mills in operation in the country. Development Council for Pulp Paper and Allied Industry of Government of India, however, reckons that 759 Mills are in operation producing nearly 11.38 million tonnes of paper, paper board and newsprint.

 

On the supply side, the industry saw significant capacity additions of 1.6 million tonnes during FY09-FY11 (~15% of domestic paper capacity in FY09) particularly in the PWP segment. The bunching of these capacities resulted in over-supply scenario during FY11 and FY12 as these incremental capacities could not be absorbed in the market. As a result, most players saw significant built-up of inventories as well as pricing pressures from FY12 onwards. But with steady growth in demand, the market has now started absorbing these incremental supplies.

 

According to Poyry, India will witness highest annual growth of about 6.5% per annum while China's growth is projected to be in the order of 5.25%. Japan in the near term, North America may witness marginal or negative growth. Amongst the various grades, Container Boards, Tissue Paper, followed by Carton Boards will witness higher rates of growth, while growth rate of Coated / Uncoated wood-free Paper is expected to be under 2%.

 

OUTLOOK FOR 2015-16

 

GLOBAL

 

Global growth of Economy is forecast at 3.8% in 2015-16 by IMF, an improvement over 2014-15 when the growth was lower at 3.5%. Year 2014-15 witnessed a pickup in growth in advanced economies relative to the previous year and a slow-down in emerging market and developing economies. Growth is projected to be stronger in 2015 relative to 2014 in advanced economies, but weaker in emerging markets. Current year, may thus witness uneven growth patterns across the world economy. Global Pulp and Paper Industry is likely to mirror the above trend in the current year. Sustainability is a top priority among the world’s forest, paper and packaging Companies.

 

A recent global survey conducted by PWC reported that nearly two thirds of Pulp and Paper Industry CEOs are concerned about resource scarcity and climate change. An overwhelming 92% of the CEOs surveyed, said, it is important to measure and try to reduce their environmental footprint. Paper Industry CEOs are of the view that economy will pickup this year and hence are positive about boosting revenues. They are looking to China, US and Germany to generate much of this growth according to PWC.

 

As per Moody’s report on outlook for Global Paper and Forest Products, industry is stable and expects industry's global operating income to increase by 2% - 4% over the next 12 months.

 

North American Wood Products Producers will benefit as US housing starts improving and the projected improvement in global economy will help drive demand for packaging. These factors will help mitigate the secular decline of printing and writing paper consumption in mature markets which will contract as consumers switch to digital alternatives.

 

According to Economist Intelligence Unit, Real GDP of China expanded by 7% on year on year basis in Q1, but the weak momentum behind economy suggests that fresh stimulus measures will be forthcoming.

 

Chinese Paper and Board production in 2013 contracted to 101.1 million tonnes from the high of 102.6 million tonnes in 2012, as per Industry sources, which appears not reliable. Chinese ‘capacity creation’ is far in excess of actual demand growth for paper indicating that the capacity utilisation may take some years to reach 90% plus levels.

 

DOMESTIC

 

India Ratings and Research (a Fitch Group Company) in its Outlook Report on domestic Paper Industry has maintained its outlook on the paper industry at “negative to stable” driven by a weaker-than-expected improvement in the demand supply environment and elevated input costs. Ind-Ra has also maintained a stable outlook on most of its rated paper Companies. Financial profile of rated entities has not improved up to Ind-Ra’s expectations in FY15. However, with the completion of the capex cycle and a gradual absorption of the excess capacity, Ind-Ra expects credit profiles of companies to improve in FY16.

 

Paper Companies have seen inventory levels rise in FY14 and 1HFY15 which could be attributed to weaker domestic demand, addition of new paper-production capacity as well as pressures due to import. Ind-Ra expects that this would lead to short term pressures on pricing which had seen some stability in FY14. However, the pricing environment is likely to improve marginally in 2HFY16 with improvement in demand-supply dynamics in the absence of large capacity addition and a gradual increase in demand.

 

Ind-Ra expects overall sector demand to grow by 6%-8% in FY16 aided by a recovery in the overall economic environment in FY16 (GDP to grow by 6.5%). However, certain segments such as copier paper, specialty paper, paper board, could witness double digit growth driven by higher demand for office supplies and stronger growth in consumer-oriented sectors such as FMCG.

 

Ind-Ra expects sector companies to continue to witness elevated cost pressures in FY16. Paper companies have continued to suffer from rising input costs particularly in domestic wood prices and an inability to pass on the same to customers due to the weak demand environment.

 

Ind-Ra expects farm forestry efforts by companies would result in increased domestic wood availability in the medium term. In addition, Rupee depreciation has increased the cost of import for chemicals, pulp etc. Import of wood chips by companies and lower international pulp prices are likely to put a cap on the domestic wood prices, but unlikely to relieve the cost pressures on the Companies.

 

Ind-Ra expects the credit profiles of paper companies to improve in FY16. The financial profiles of these companies deteriorated on account of the large capex programmes undertaken by them, coupled with pressure on operating profitability. However, with the completion of the capex, these companies are likely to focus on improving their balance sheets. An improvement in the interest rate environment in FY16 is also likely to benefit the sector Companies.

 

Ind-Ra expects the rupee to stabilise at around INR63/USD by FYE16 which should help the sector Companies withstand competitive pressures from import to an extent. However, after a decline in sector import in FY13, overall imports have increased in FY14 & 1HFY15. A muted demand environment globally could result in paper Companies in Asia, particularly China, exporting surplus capacity to India which could intensify the competitive pressures on the domestic paper industry.

 

As mentioned in the last year’s report, the environmental footprint of the Indian Paper Industry has come under the critical scrutiny of several (public and private) Indian and overseas environmental agencies who would like to transform the way pulp and paper industry operates.

 

These transformations include minimizing paper consumption, maximising use of recycled paper in the furnish, sourcing of virgin fibre, and adoption of cleaner pulping processes in the manufacture of paper.

 

Some Indian Paper Manufacturers will have to turn to environmentally friendly manufacturing processes and become responsible paper manufacturers. With a view to curtail the carbon emission, Government of India, have introduced the PAT (Perform, Achieve and Trade) Scheme, calling for significant reduction in energy usage by the Pulp and Paper Units in a specified time frame. Further, REC (Renewable Energy Certificate) scheme requires the Indian Paper Industry to use a minimum percentage of biofuel in the fuel-mix.

 

These schemes, though appearing to be threats, provide great opportunities for the Paper Industry to significantly improve its carbon footprint and simultaneously augment their income through higher usage of Bio-fuels.

 

 

STATEMENT OF UNAUDITED FINANCIAL RESULT FOR THE QUARTER ENDED JUNE 30, 2015

 

(RS. IN MILLION)

 

S.

No.

Particulars

3 months ended

30.06.2015

 

 

 

 

Unaudited

1

Income From Operations

 

 

a. Net Sales/Income from Operations

2347.800

 

b. Other Operating Income

27.200

 

Total income from Operations (Net)

2375.000

 

 

 

2

Expenses

 

 

a. Cost of Materials Consumed

1510.200

 

b. Purchases of Stock-in-trade

50.200

 

c. Changes in inventories of finished goods, work-in-progress and stock-in-trade

(280.700)

 

d. Employee benefits expenses

177.900

 

e. Depreciation and amortization expenses

74.700

 

f. Other Expenses

 

 

Cost of power and fuel

378.100

 

Other

304.700

 

Total Expenses

2215.100

 

 

 

3

(Profit/(Loss) from operations before other income, finance costs and exceptional items

159.900

4

Other Income

7.900

5

Profit/(Loss) from ordinary activities before finance costs and exceptional items (3 + 4)

167.800

6

Finance costs

87.800

7

Profit/(Loss) from ordinary activities after finance costs but before exceptional items (5 + 6)

80.000

8

Exceptional Items

--

9

Profit/(Loss) from ordinary activities before tax (7 + 8)

80.000

10

Tax Expenses

26.100

11

Net Profit/(Loss) from ordinary activities after tax (9 + 10)

53.900

12

Extraordinary items (net of tax expenses Rs. in Million)

--

13

Net Profit/(Loss) for the period 11 + 12)

53.900

14

Paid-Up equity share capital (Face Value of Rs.10/- each)

 

15

Reserve excluding revaluation reserves as per balance sheet of previous accounting year

126.100

 

 

 

16.i

Earnings per share (before extraordinary items) (of Rs.1/- each) (not annualised):

 

 

(a) Basic

4.27

 

(b) Diluted

4.27

 

 

 

16.ii

Earnings per share (after extraordinary items ) (of Rs.1/- each) (Not annualised)

 

 

(a) Basic

4.27

 

(b) Diluted

4.27

 

 

 

A

Particulars of Share Holdings

 

1

Public Share Holding

 

 

-Number of Shares

7136178

 

-Percentage of Holding

56.58

 

 

 

2

Promoters and Promoter Group Shareholding

 

 

a) Pledged/Encumbered

 

 

- Number of shares

--

 

-Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

--

 

-Percentage of Shares ( as a % of the total share capital of the company)

--

 

 

 

 

b) Non - Encumbered

 

 

-Number of Shares

5477450

 

-Percentage of Shares ( as a % of the total Shareholding of Promoter an Promoter group)

100.00

 

-Percentage of Shares (as a % of the total Share capital of the Company)

43.42

 

 

S.

No.

Particulars

3 Months Ended 30.06.2015

B.

Investor Complaints

 

 

Pending at the beginning of the quarter

Nil

 

Received during the quarter

Nil

 

Disposed of during the quarter

Nil

 

Remaining unresolved at the end of the quarter

Nil

 

NOTE

 

1. Paper is the only reportable segment of operation of the Company.

 

2. Figures have been re-grouped, wherever necessary, to conform to current quarter's / year's classification.

 

3. Discussions with Labour Unions / Staff Association are in progress with regard to the long term agreement on wages / salary and other benefits in Unit: Erode.

 

In Unit: Tirunelveli, the settlement arrived at under Section 18(1) of the Industrial Disputes Act, 1947 between the Workmen and Mill has since been converted into a settlement under Section 12(3) of the Industrial Disputes Act, 1947 before the Labour Officer on 23.05.2015. The settlement will be for a period of five years from 01.04.2014. 

 

A settlement under Section 18(1) of the Industrial Disputes Act, 1947 between the Staff Welfare Association and Mill was arrived at and an agreement was signed on 17.06.2015. The settlement will be for a period of five years from 01.04.2014.

 

4. The above results were reviewed by the Audit Committee of the Board and approved by the Board of Directors at the respective meetings held on July 31, 2015 and August 01, 2015. The Statutory Auditors of the Company have carried out a Limited Review of the results for the quarter ended June 30, 2015.

 

FIXED ASSETS

 

Tangible Assets

  • Land and Betterment
  • Buildings
  • Plant and Machinery
  • Furniture and Fixtures
  • Vehicles
  • Office Equipments

 

Intangible Assets

  • Technical Know-How
  • 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.66.38

UK Pound

1

Rs.102.59

Euro

1

Rs.74.89

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

KIN

 

 

Report Prepared by :

SNT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILITY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

7

--CREDIT LINES

1~10

6

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

58

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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

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