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|
|
MIRA INFORM REPORT
|
Report No. : |
490129 |
|
Report Date : |
07.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
TILAKNAGAR INDUSTRIES LIMITED |
|
|
|
|
Formerly Known
As : |
MAHARASHTRA SUGAR MILLS LIMITED |
|
|
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Registered
Office : |
P. O. Tilaknagar, Taluka Shrirampur, Ahmednagar – 413720, Maharashtra |
|
Tel. No.: |
91-2422-265123/265032 |
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|
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|
Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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|
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|
Date of
Incorporation : |
29.07.1933 |
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Com. Reg. No.: |
11-133303 |
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Capital
Investment / Paid-up Capital : |
INR 1247.560 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L15420PN1933PLC133303 |
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|
|
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IEC No.: |
Not Divulged |
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|
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNET05464E |
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GSTIN : |
Not Divulged |
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|
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PAN No.: [Permanent Account No.] |
AAACT6047R |
|
|
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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
: |
Manufacturing of Indian Made Foreign Liquor (IMFL). (Registered
activity) |
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|
|
|
No. of Employees
: |
356 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
C |
|
Credit Rating |
Explanation |
Rating Comments |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
Status : |
Poor |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject was incorporated in the year 1933 and is engaged in the
business of manufacture and sale of India Made Foreign Liquor and its related
products. As per the financial records of 2017, the company has reported a
decline in its revenue as compared to the previous year and has incurred
operational losses. The weak financial profile of the company is marked by huge
accumulated losses which have eroded the net worth base, high debt balance
sheet profile and poor liquidity position. Subject has been found under RBI defaulter’s list the name of the
credit grantor is IFCI Limited and the amount charged is INR 2000.800 Million
dated 31.12.2016 and latest updates about the same are not available. The subject is enlisted as a defaulter in the public available EPF
(Employee Provident Fund) Defaulter’s list. Business is active. Payment seems to be slow and delayed. In view of aforesaid, the company can be considered for business
dealings on safe and secured trade terms and condition. |
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low
Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderately High
Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a defaulter
in the publicly available RBI Defaulters’ list and the details of the same are
as under:
|
Borrowers’ Name : |
TILAKNAGAR INDUSTRIES LIMITED |
|
Address : |
Mumbai, Maharashtra, India |
|
Name of Credit Grantors / Bank & Branch: |
IFCI Limited, Mumbai |
|
Amount (INR In Millions) : |
INR 200.800 Million |
|
Sr. No.: |
Directors Reported by Credit Grantors |
DIN Number |
|
IFCI Limited |
|
|
|
1 |
Amit Arun Dahanukar |
305636 |
|
2 |
Chanderbhan Verhomal Bijlani |
2039345 |
|
3 |
Kishorekumar Ganpatrao Mhatre |
7527683 |
|
4 |
Ravindra Dinkar Bapat |
353476 |
|
5 |
Shivani Amit Dahanukar |
305503 |
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
31-03-2016.
|
ENTITY |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
TILAKNAGAR LIMITED |
EPFO |
EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.10.48 LAKHS |
AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO
WEBSITE |
|
|
TILAKNAGAR INDUSTRIES LIMITED |
BSE |
DID NOT SUBMIT SHAREHOLDING PATTERN UNDER PROVISIONS OF CLAUSE 35 FOR THE QUARTER ENDED 31-DECEMBER-2010 |
PUT UP ON BSE WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST FOR THE QUARTER ENDED 31-MARCH-2011 |
BIFR (Board for Industrial & Financial
Reconstruction) LISTING STATUS
Subject’s name is
not listed as a Sick Unit in the publicly available BIFR (Board for Industrial
& Financial Reconstruction) list as of 07.02.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
MANAGEMENT NON-COOPERATIVE: Tel. No.: 91-2422-265123
/ 91-22-22831718
LOCATIONS
|
Registered Office/ Factory : |
P. O. Tilaknagar, Taluka Shrirampur, Ahmednagar – 413720, Maharashtra,
India |
|
Tel. No.: |
91-2422-265123/265032 |
|
Fax No.: |
91-2422-265135 |
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E-Mail : |
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|
Website : |
|
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|
Corporate Office : |
3rd Floor, |
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Tel. No.: |
91-22-22831718 / 16 |
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Fax No.: |
91-22-22046904 |
|
E-Mail : |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Amit Arun Dahanukar |
|
Designation : |
Managing Director |
|
Address : |
10, Ratnakar, 26, Dr. B. Indrajit Road, Off Narayan Dabholkar Road,
Malbar Hill, Mumbai-400006, Maharashtra, India |
|
Date of Birth / Age: |
40 Years |
|
Qualification : |
Graduate in Electrical Engineering with a Masters degree in Engineering Management from Stanford University, U.S.A. |
|
Experience: |
16 Years |
|
Date of Appointment : |
07.11.2009 |
|
DIN No.: |
00305636 |
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|
|
|
Name : |
Mrs. Shivani Amit Dahanukar |
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Designation : |
Director |
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Address : |
10, Ratnakar, 26, Dr. B. Indrajit Road, Off Narayan Dabholkar Road,
Malbar Hill, Mumbai-400006, Maharashtra, India |
|
Qualification : |
Masters in Business Administration from the University of San Francisco. |
|
Date of Appointment : |
28.09.2006 |
|
DIN No.: |
00305503 |
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|
|
|
Name : |
Mr. Ravindra Dinkar Bapat |
|
Designation : |
Director |
|
Address : |
B-1002, Jagat Vidya Co-Operative Housing Society Limited, Bandra
(East), Mumbai -400051, Maharashtra, India |
|
Qualification : |
Emeritus Professor, Department of Surgical Gastroenterology at Seth G. S. Medical College and K.E.M Hospital |
|
Date of Appointment : |
28.09.2006 |
|
DIN No.: |
00353476 |
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|
|
|
Name : |
Mrs. Chanderbhan Verhomal Bijlani |
|
Designation : |
Director |
|
Address : |
24 B, Yogi Krupa, 15, Manish Nagar, Four Bungalows, Andheri (West),
Mumbai -400053, Maharashtra, India |
|
Qualification : |
Post-graduate in Economics, Mr. C.V. Bijlani started his career as a Lecturer in Economics before joining banking industry. |
|
Date of Appointment : |
02.07.2009 |
|
DIN No.: |
02039345 |
|
|
|
|
Name : |
Mr. Kishorekumar Ganpatrao Mhatre |
|
Designation : |
Director |
|
Address : |
B/ 36, Shantkiran, Abhyudaya Bank Lane, Parel Village, Parel, Mumbai
-400012, Maharashtra, India |
|
Qualification : |
Graduate in Law from the Government Law College, University of Mumbai. |
|
Date of Appointment : |
09.06.2016 |
|
DIN No.: |
07527683 |
|
|
|
|
Name : |
Dr. Keshab Nandy |
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Designation : |
Director |
|
Date of Birth / Age: |
62 Years |
|
Qualification : |
Graduate and post-graduate degree holder with distinction in English, HRD, Law, Management and is a Ph.D in Human Resources. |
|
Experience : |
37 years |
KEY EXECUTIVES
|
Name : |
Mr. Srijit Mullick |
|
Designation : |
Chief Finance Officer |
|
Address : |
204, Esha Akta Apartments, 16, B.G. Kher Road, Worli, Mumbai -400018,
Maharashtra, India |
|
Date of Birth / Age: |
62 Years |
|
Qualification : |
Chartered Accountant and Cost and Management |
|
Experience : |
38 years |
|
Date of Appointment : |
14.11.2014 |
|
PAN No.: |
AEOPM4473R |
|
|
|
|
Name : |
Mr. Gaurav Brahmdev Thakur |
|
Designation : |
Company Secretary |
|
Address : |
EC-170 Falt No. 104, Sec-6, Tulip Co-Operative Housing Society, E.City
Avenue, Gokhiware Thane 401208, Maharashtra, India |
|
Date of Birth / Age: |
39 Years |
|
Qualification : |
Company Secretary and Cost & Management Accountant and a post-graduate in Commerce |
|
Experience : |
17 years |
|
Date of Appointment : |
15.01.2011 |
|
PAN No.: |
ACSPT3292K |
|
|
|
|
Name : |
Mr. Benedict William |
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Designation : |
Senior Vice President |
|
Date of Birth / Age: |
58 Years |
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Qualification : |
Masters Degree in Agricultural Economics & Farm Management and a Diploma in Business Management |
|
Experience : |
34 years |
|
|
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|
Name : |
Mr. Naresh Agnihotri |
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Designation : |
Vice President – Manufacturing Operations |
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Qualification : |
Graduate in Chemistry |
|
Experience : |
28 years |
|
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|
Name : |
Mr. M. R. K. Nair |
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Designation : |
Vice President – Works, IR, HR, and Legal |
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|
Name : |
Mr. Dattatray More |
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Designation : |
DGM – HR & IR |
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Qualification : |
Graduate in Commerce and holds Masters Degree in Social Work and Business Administration (Human Resource) |
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Experience : |
22 years |
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|
Name : |
Mr. Ajit Sirsat |
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Designation : |
General Manager – Finance and Accounts |
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Qualification : |
Chartered Accountant and Cost and Management Accountant |
|
Experience : |
23 years |
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|
Name : |
Mr. Shankar Pawar |
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Designation : |
AGM – Finance and Accounts |
|
Qualification : |
Chartered Accountant |
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Experience : |
13 years |
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|
Name : |
Mr. Ashish Choudhury |
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Designation : |
State Head - Karnataka |
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Qualification : |
Graduate in Humanities from the Bengaluru University |
|
Experience : |
37 years |
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|
|
Name : |
Mr. Rajesh Agrawal |
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Designation : |
General Manager – Sales (Maharashtra and Daman) |
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Qualification : |
Graduate in Humanities |
|
Experience : |
33 years |
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|
Name : |
Mr. Shreekumar G. Nair |
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Designation : |
DGM – Exports and Institution |
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|
Name : |
Mr. Mukhtiar Singh |
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Designation : |
DGM – Exports and Institution |
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Name : |
Mr. J. S. Manikandan |
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Designation : |
AGM – Exports and Institution |
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|
Name : |
Mr. Shubwant Singh Bedi |
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Designation : |
AGM – Exports and Institution |
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|
Name : |
Mr. S. V. S. Mahesh |
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Designation : |
AGM – Sales and Marketing |
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|
Name : |
Mr. Biswadeb Chowdhury |
|
Designation : |
AGM – Sales |
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|
|
|
Name : |
Mr. L. Sriram |
|
Designation : |
AGM – Sales and Marketing |
|
|
|
|
Name : |
Mr. Debasis Nayak |
|
Designation : |
Senior Manager – Sales (Odisha) |
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|
Name : |
Mr. Anindya Bhattacharya |
|
Designation : |
Area Manager – Sales (West Bengal) |
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|
|
Name : |
Mr. C. R. Ramesh |
|
Designation : |
General Manager – Operations and Quality |
|
Date of Birth / Age: |
57 Years |
|
Qualification : |
B.Sc. |
|
Experience: |
35 years |
|
|
|
|
Name : |
Mr. Mukund Laxman Kasture |
|
Designation : |
DGM – Production and Operations |
|
|
|
|
Name : |
Mr. Srinivasarao Garaga |
|
Designation : |
DGM – Works |
|
|
Graduate in Engineering (B.E. Mechanical) |
|
|
28 years |
|
|
|
|
Name : |
Mr. S. Balakumar |
|
Designation : |
DGM – Production and Operations |
|
Qualification : |
Graduate in Commerce and holds a Masters Degree in Business Finance from Indian Institute of Finance, New Delhi. |
|
Experience : |
23 years |
|
|
|
|
Name : |
Mr. Damodar Bhaskar Rane |
|
Designation : |
AGM – Quality, Production and Operation |
|
|
|
|
Name : |
Mr. Uttam Kumar Nair |
|
Designation : |
AGM – Civil and Projects |
|
|
|
|
Name : |
Mr. Santosh Thakur |
|
Designation : |
General Manager – Purchase |
|
|
|
|
Name : |
Mr. Anand Kadam |
|
Designation : |
DGM – Purchase |
|
Qualification : |
Graduate in Engineering (B.E. Production – Hons.) from University of Mumbai and a postgraduate in Materials Management |
|
Experience : |
25 years |
|
|
|
|
Name : |
Ms. Hemangi Joshi Naik |
|
Designation : |
DGM – Legal |
|
Qualification : |
Graduate in Law from the Siddharth College of Law, University of Mumbai |
|
Experience : |
12 Years |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on December 2017
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
(A) Promoter & Promoter Group |
68571668 |
54.96 |
|
(B) Public |
56184447 |
45.04 |
|
Grand Total |
124756115 |
100.00 |
Statement showing shareholding pattern of the Promoter
and Promoter Group
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
|
A1) Indian |
0.00 |
|
|
|
Individuals/Hindu
undivided Family |
63816499 |
51.15 |
|
|
Amit Dahanukar |
29844552 |
23.92 |
|
|
Shivani Amit Dahanukar |
32976043 |
26.43 |
|
|
Anupama Arun Dahanukar |
457623 |
0.37 |
|
|
Priyadarshini A Dahanukar |
538281 |
0.43 |
|
|
Any Other
(specify) |
4755169 |
3.81 |
|
|
M L Dahanukar & Co Pvt Ltd |
3564235 |
2.86 |
|
|
Arunoday Investments Private Limited |
1190934 |
0.95 |
|
|
Sub Total A1 |
68571668 |
54.96 |
|
|
A2) Foreign |
0.00 |
|
|
|
A=A1+A2 |
68571668 |
54.96 |
|
Statement showing shareholding pattern of the Public
shareholder
|
Category &
Name of the Shareholders |
No.
of fully paid up equity shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
|||
|
B1) Institutions |
0 |
0.00 |
|
|
Foreign
Portfolio Investors |
475000 |
0.38 |
|
|
Financial
Institutions/ Banks |
372944 |
0.30 |
|
|
Sub Total B1 |
847944 |
0.68 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
Central Government/
State Government(s)/ President of India |
10 |
0.00 |
|
|
Sub Total B2 |
10 |
0.00 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share
capital upto INR 0.200 Million |
25488150 |
20.43 |
|
|
Individual share
capital in excess of INR 0.200 Million |
14360241 |
11.51 |
|
|
NBFCs registered
with RBI |
13671 |
0.01 |
|
|
Any Other
(specify) |
15474431 |
12.40 |
|
|
Bodies Corporate |
11778945 |
9.44 |
|
|
Clearing Members |
1608054 |
1.29 |
|
|
NRI |
1457025 |
1.17 |
|
|
NRI – Repat |
13700 |
0.01 |
|
|
NRI – Non- Repat |
358565 |
0.29 |
|
|
Trusts |
650 |
0.00 |
|
|
Unclaimed or Suspense or Escrow Account |
257492 |
0.21 |
|
|
Sub Total B3 |
55336493 |
44.36 |
|
|
B=B1+B2+B3 |
56184447 |
45.04 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Indian Made Foreign Liquor (IMFL). (Registered
activity) |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
||||
|
|
|
||||
|
Imports : |
Not Divulged |
||||
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|
||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
356 (Approximately) |
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Bankers : |
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Facilities : |
Note: Long-term Borrowings a) The term loans are secured against first pari passu charge on all the fixed assets of the Company both present and future excluding land and building on non plant area situated at Shrirampur Dist. Ahmednagar and pari passu second charge on all current assets both present and future. b) Foreign Currency term loans from banks carry interest @ Libor plus 3.45%. The loans are repayable in monthly / quarterly instalments each along with interest from the date of the loan. c) Secured loans from banks outstanding at the end of the financial year have been guaranteed by the personal guarantee of Chairman and Managing Director of the Company. d) Loan taken from financial institution is repayable in eighteen quarterly instalments after a moratorium of twenty one months from the commencement of the loan viz March 31 2015. Interest is payable on monthly basis from the commencement of the loan and carry interest @ 13.05%. e) Punjab National Bank IFCI and Axis Bank Limited (only working capital) have assigned all the rights and interests in financial assistances granted to the Company in favour of Edelweiss Asset Reconstruction Company Limited (the “EARC”) acting in its capacity as Trustee of EARC Trust vide assignment agreement executed in favour of EARC of March 30 2017. Pursuant to the above EARC has become the secured lender and all the rights title and interest of above Banks have vested in EARC in respect of the above financial assistances. Short-term
borrowings a) The cash credit (including Working Capital Demand Loan) loans are secured against first pari passu charge on all current assets both present and future and pari passu second charge on all the fixed assets of the Company both present and future excluding land and building on non plant area situated at Shrirampur Dist. Ahmednagar. b) Secured loans from banks outstanding at the end of the financial year have been guaranteed by the personal guarantee of Chairman and Managing Director of the Company. |
|
Financial Institutions : |
|
|
|
|
|
Statutory Auditors: |
|
|
Name : |
Batliboi and Purohit Chartered Accountants |
|
Address: |
National Insurance Building 2nd Floor 204 Dr. D.N Road Fort
Mumbai -400001 Maharashtra India |
|
Tel No.: |
91-22-22077942/22014930 |
|
Email: |
|
|
|
|
|
Internal Auditors: |
Devdhar Joglekar and Srinivasan Chartered Accountants |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Dr. Netra Shashikant Apte Cost and Management Accountant |
|
|
|
|
Secretarial
Auditors : |
Ragini Chokshi and Co. Company Secretaries |
|
|
|
|
Solicitors |
W. S. Kane and Co. Advocate Umamaheshwar Rao Economic Laws Practice (ELP) Holla and Holla Inttl. Advocare Kunal Bhanage |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiary
Companies : |
|
|
|
|
|
Company in which
Key Managerial Personnel has substantial interest: |
|
CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
INR 10/- each |
INR 1500.000 Million |
|
|
|
|
|
Issued Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
124756115 |
Equity Shares |
INR 10/- each |
INR 1247.560 Million |
|
|
|
|
|
Reconciliation of the
number of shares outstanding
|
Particulars |
No of Shares |
|
Number of equity shares at the beginning |
124.76 |
|
Equity shares issued on exercise of employee stock options |
- |
|
Number of equity
shares at the end |
121.76 |
Terms / rights
attached to equity shares
Each holder of equity share is entitled to one vote per share with a right to receive per share dividend by the Company when declared. In the event of liquidation the equity shareholders will be entitled to receive remaining assets of the Company after distribution of all preferential amounts in the proportion to the number of equity shares held by them.
Details of
shareholders holding more than 5% shares in the Company
|
Name of the
shareholder |
No. of equity |
% of holding |
|
Shivani Amit Dahanukar |
32.98 |
26.43 |
|
Amit Dahanukar |
29.84 |
23.92 |
|
Total |
62.82 |
50.35 |
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1247.560 |
1247.560 |
1247.560 |
|
(b) Reserves & Surplus |
(1544.800) |
1119.930 |
3827.300 |
|
(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) |
(297.240) |
2367.490 |
5074.860 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1901.420 |
2259.830 |
2111.820 |
|
(b) Deferred tax liabilities
(Net) |
432.420 |
432.420 |
432.420 |
|
(c) Other long term
liabilities |
497.940 |
675.790 |
827.570 |
|
(d) long-term provisions |
27.660 |
27.290 |
21.630 |
|
Total
Non-current Liabilities (3) |
2859.440 |
3395.330 |
3393.440 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
6030.360 |
5949.400 |
5575.410 |
|
(b) Trade payables |
1140.390 |
1258.730 |
1234.750 |
|
(c) Other current liabilities |
2580.660 |
1018.570 |
494.330 |
|
(d) Short-term provisions |
73.120 |
237.480 |
189.340 |
|
Total
Current Liabilities (4) |
9824.530 |
8464.180 |
7493.830 |
|
|
|
|
|
|
TOTAL |
12386.730 |
14227.000 |
15962.130 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4847.320 |
5165.990 |
5364.890 |
|
(ii) Intangible Assets |
90.710 |
135.940 |
182.940 |
|
(iii) Capital work-in-progress |
149.600 |
153.450 |
153.450 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
423.350 |
423.350 |
455.250 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
168.200 |
203.030 |
933.710 |
|
(e) Other Non-current assets |
4.840 |
466.400 |
0.690 |
|
Total
Non-Current Assets |
5684.020 |
6548.160 |
7090.930 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
9.720 |
|
(b) Inventories |
595.880 |
836.210 |
996.430 |
|
(c) Trade receivables |
572.980 |
769.050 |
1266.860 |
|
(d) Cash and cash equivalents |
42.690 |
74.650 |
220.350 |
|
(e) Short-term loans and
advances |
5490.710 |
5998.470 |
6377.800 |
|
(f) Other current assets |
0.450 |
0.460 |
0.040 |
|
Total
Current Assets |
6702.710 |
7678.840 |
8871.200 |
|
|
|
|
|
|
TOTAL |
12386.730 |
14227.000 |
15962.130 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
3510.480 |
3723.890 |
5513.320 |
|
|
Other Income |
40.430 |
9.000 |
19.800 |
|
|
TOTAL
|
3550.910 |
3732.890 |
5533.120 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
1965.940 |
1886.120 |
2268.460 |
|
|
Purchases of Stock-in-Trade |
0.000 |
146.320 |
442.700 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
180.410 |
76.450 |
(1.760) |
|
|
Employees benefits expense |
232.480 |
318.580 |
187.790 |
|
|
Other expenses |
2004.480 |
2422.440 |
1773.120 |
|
|
TOTAL |
4383.310 |
4849.910 |
4670.310 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
(832.400) |
(1117.020) |
862.810 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1523.480 |
1196.150 |
823.710 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(2355.880) |
(2313.170) |
39.100 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
362.460 |
366.010 |
270.980 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(2718.340) |
(2679.180) |
(231.880) |
|
|
|
|
|
|
|
Less |
TAX |
(72.980) |
(18.830) |
113.140 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(2645.360) |
(2660.350) |
(345.020) |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1542.400) |
1117.950 |
1502.360 |
|
|
|
|
|
|
|
Less |
Depreciation as per
transitional provision |
0.000 |
0.000 |
38.650 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Proposed Dividend |
0.000 |
0.000 |
0.630 |
|
|
Dividend Distribution Tax |
0.000 |
0.000 |
0.110 |
|
|
Total |
0.000 |
0.000 |
39.390 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
(4187.760) |
(1542.400) |
1117.950) |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
13.380 |
30.340 |
96.600 |
|
|
TOTAL
EARNINGS |
13.380 |
30.340 |
96.600 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
(21.20) |
(21.32) |
(2.77) |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
590.700 |
245.000 |
178.140 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flow from operating activity |
105.650 |
190.330 |
1777.980 |
QUARTERLY RESULTS
|
Particulars |
|
30.06.2017 |
|
Audited / Unaudited |
|
Unaudited |
|
|
|
1ST Quarter |
|
Net Sales |
|
1477.060 |
|
Total Expenditure |
|
1672.380 |
|
PBIDT (Excl OI) |
|
(195.320) |
|
Other Income |
|
8.370 |
|
Operating Profit |
|
(186.950) |
|
Interest |
|
355.680 |
|
Exceptional Items |
|
NA |
|
PBDT |
|
(542.630) |
|
Depreciation |
|
93.510 |
|
Profit Before Tax |
|
(636.140) |
|
Tax |
|
NA |
|
Provisions and contingencies |
|
NA |
|
Profit After Tax |
|
(636.140) |
|
Extraordinary Items |
|
NA |
|
Prior Period Expenses |
|
NA |
|
Other Adjustments |
|
NA |
|
Net Profit |
|
(636.140) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
59.58 |
75.38 |
83.87 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
6.13 |
4.84 |
4.35 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
211.73 |
226.05 |
166.23 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
(1.40) |
(1.34) |
0.87 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
(0.16) |
(0.20) |
0.15 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.99 |
0.77 |
0.61 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
(28.67) |
3.57 |
1.55 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
(33.05) |
3.58 |
1.48 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
(17.12) |
2.30 |
1.12 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
(0.55) |
(0.93) |
1.05 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
(75.36) |
(71.44) |
(6.26) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
(21.36) |
(18.70) |
(2.16) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
889.97 |
(112.37) |
(6.80) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
0.68 |
0.91 |
1.18 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
0.62 |
0.81 |
1.05 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
(0.02) |
0.17 |
0.32 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
6.83 |
6.78 |
6.30 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
0.68 |
0.91 |
1.18 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 18.00/- |
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
1247.560 |
1247.560 |
1247.560 |
|
Reserves & Surplus |
3827.300 |
1119.930 |
(1544.800) |
|
Net
worth |
5074.860 |
2367.490 |
(297.240) |
|
|
|
|
|
|
Long Term borrowings |
2111.820 |
2259.830 |
1901.420 |
|
Short Term borrowings |
5575.410 |
5949.400 |
6030.360 |
|
Current Maturities of Long term debt |
178.140 |
245.000 |
590.700 |
|
Total
borrowings |
7865.370 |
8454.230 |
8522.480 |
|
Debt/Equity
ratio |
1.550 |
3.571 |
(28.672) |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
5513.320 |
3723.890 |
3510.480 |
|
|
|
(32.456) |
(5.731) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
5513.320 |
3723.890 |
3510.480 |
|
Profit |
(345.020) |
(2660.350) |
(2645.360) |
|
|
(6.26%) |
(71.44%) |
(75.36%) |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
1247.560 |
1247.560 |
|
(b) Reserves & Surplus |
|
(1477.88)0 |
1310.170 |
|
(c) Money received against
share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
(230.320) |
2557.730 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
1901.420 |
2259.830 |
|
(b) Deferred tax liabilities
(Net) |
|
462.210 |
462.210 |
|
(c) Other long term
liabilities |
|
497.940 |
675.790 |
|
(d) long-term provisions |
|
31.990 |
29.850 |
|
Total
Non-current Liabilities (3) |
|
2893.560 |
3427.680 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
6331.820 |
6207.180 |
|
(b) Trade payables |
|
1611.520 |
1654.730 |
|
(c) Other current liabilities |
|
2743.640 |
1176.610 |
|
(d) Short-term provisions |
|
122.420 |
256.070 |
|
Total
Current Liabilities (4) |
|
10809.400 |
9294.590 |
|
|
|
|
|
|
TOTAL |
|
13472.640 |
15280.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
5092.440 |
5424.830 |
|
(ii) Intangible Assets |
|
90.760 |
136.000 |
|
(iii) Capital work-in-progress |
|
1241.260 |
1244.080 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(v) Goodwill on Consolidated |
|
232.620 |
232.620 |
|
(b) Non-current Investments |
|
0.370 |
0.370 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
184.480 |
232.480 |
|
(e) Other Non-current assets |
|
5.540 |
467.000 |
|
Total
Non-Current Assets |
|
6847.470 |
7737.380 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
769.350 |
1016.820 |
|
(c) Trade receivables |
|
1118.410 |
1147.240 |
|
(d) Cash and cash equivalents |
|
59.130 |
104.980 |
|
(e) Short-term loans and
advances |
|
4677.780 |
5273.010 |
|
(f) Other current assets |
|
0.500 |
0.570 |
|
Total
Current Assets |
|
6625.170 |
7542.620 |
|
|
|
|
|
|
TOTAL |
|
13472.640 |
15280.000 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
4866.760 |
4577.830 |
|
|
Other Income |
|
41.260 |
32.720 |
|
|
TOTAL
|
|
4908.020 |
4610.550 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
3040.930 |
2450.230 |
|
|
Purchases of Stock-in-Trade |
|
0.000 |
146.320 |
|
|
Changes in inventories of
finished goods work-in-progress and Stock-in-Trade |
|
138.040 |
169.020 |
|
|
Employees benefits expense |
|
256.700 |
340.790 |
|
|
Other expenses |
|
2371.060 |
2697.250 |
|
|
TOTAL |
|
5806.730 |
5803.610 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST TAX
DEPRECIATION AND AMORTISATION |
|
(898.710) |
(1193.060) |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
1564.110 |
1250.270 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX DEPRECIATION AND AMORTISATION |
|
(2462.820) |
(2443.330) |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
381.420 |
385.540 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
(2844.240) |
(2828.870) |
|
|
|
|
|
|
|
Less |
TAX |
|
(75.560) |
(11.430) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
(2768.680) |
(2817.440) |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
(22.19 |
(22.58 |
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 |
Yes |
|
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 |
No |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
FINANCIAL HIGHLIGHTS
The total sales volume achieved by the Company had increased by 27.30% to 5.13 million cases during the financial year ended March 31 2017 as compared to 4.03 million cases during the financial year ended March 31 2016. Despite the increase in the sales volume the Company has incurred a net loss of ` 2645.36 million during the financial year ended March 31 2017 as compared to net loss of ` 2660.35 million during the financial year ended March 31 2016.
The losses incurred in the recent years are mainly due to high debt resulting in high interest costs and loss in sales volume emanating from lack of adequate working capital to fund the cost of goods. The Company has already taken various measures to increase the sales volume and reduction in costs wherever possible. The Company is actively exploring the possibilities of restructuring the existing debts selling of non-performing assets and considering the feasibility of raising additional capital from affiliates or other investors. While the macro economic situation continues to present challenges the Company with the support of its strong resilient business model and the effective implementation of the above plans is persistent with its efforts to generate long term growth.
OPERATIONAL REVIEW
Operations
The Company is among India’s leading alco-bev business companies with a wide range of brands across the IMFL spectrum comprising Whisky Brandy Rum Gin and Vodka with a predominant presence in South India and CSD stores. It has established its unique identity in the IMFL industry with its core competencies across manufacturing facilities wide distribution network and efficient marketing strategies.
During the financial year 2016-17 the Company faced
liquidity constraints coupled with an inability to achieve breakeven sales
volume due to constraints in the supply of Company’s brands in key profitable
States owing to shortage of working capital bottling capacity constraints in
the State of Tamil Nadu and decline in profitability due to moderation in
revenues higher finance costs and increased raw material costs. The Company is
making efforts to address these issues and improve its liquidity position to
meet the requirement of funds and effect payments of statutory dues borrowings
and business liabilities falling due.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC REVIEW
The first half of the year witnessed weak trade and investment activity subdued productivity higher commodity prices combined with increased political and policy uncertainty with events like Brexit and US Presidential Elections. However the second half of fiscal witnessed improvement across the developed nations. The US economy rebounded owing to increased consumer demand aided by a fiscal stimulus. This was further reflected in reduction in the rate of unemployment. Euro area has grown due to strong domestic demand and increased spending. Japan also showed signs of recovery during the first quarter of 2017 due to strong exports.
However the positive turnaround of the advanced economies got overshadowed by the sluggish growth in the key emerging markets and developing economies (EMDEs). Brazil remained mired in a deep recession. Weak activity was reported in fuel and non-fuel commodities exports in parts of the Middle East and Turkey due to tension created by geo-political factors. It was only India and China that reported strong growth.
The Indian economy emerged as the fastest growing economy amongst the G-20 Nations with 7.1% growth in FY17. The growth was primarily driven by lower fiscal deficit moderate inflation and higher consumption. The growth momentum is expected to continue in the coming fiscal largely driven by well-regulated monetary and fiscal policies and Government’s reforms and initiatives towards encouraging domestic productivity and ease of doing business.
The global economic growth is projected by the World Bank to increase to 2.9% in FY18. Business activities are projected to pick up in both advanced economies and EMDEs supported by a recovery in commodity prices manufacturing trade and investment with reduced inflationary pressure.
GLOBAL SPIRITS MARKET
The global spirit market is segmented across Brandy Gin
Vodka Rum flavoured spirits Tequila natural spirits and Whisky and is largely
dominated by premium and super premium brands. By geography it has been
segmented into North America Europe Asia-Pacifi c and Rest of the World (RoW).
North America and Europe are considered as mature markets and due to this
reason the concentration of the manufacturers is shifting away from these
regions. Asia Pacific is the fastest growing region for alcoholic beverages
market. Due to this the manufacturers are focusing on penetrating developing
countries such as India China among others.
However there are a few restraints for the market as well. The major players are constantly competing among themselves to gain the maximum market share. This poses as a threat for the entry and sustenance for any new player trying to operate in the market. Other restraints include the increase in the price of raw materials availability of substitutes (non-alcoholic beverages) and rules and regulations posed by the Government
Inspite of these restraints the global spirits volume during the year was bolstered by an uptick in the Gin Tequila and Whisky categories. According to IWSR Forecast 2016- 2021 Global Review Report the global alcohol market is projected to grow by over 1 billion cases with an annual consumption to 29.3 billion cases by the year 2021.
There are various factors driving this growth such as growing global population increasing demand for premium products innovative marketing campaigns by vendors and rising disposable income of middle-class. Consumption of alcoholic beverages has also become a status symbol and hence people are ready to pay for quality premium brands.
Overall the increasing consumption of alcoholic beverages in countries such as India Brazil China and Russia is anticipated to fuel the global market and the industry is expected to grow even further in the future.
IMFL MARKET TRENDS IN
INDIA
India is the 3rd largest liquor market globally. The Indian alcoholic beverage market is broadly segmented as Spirits (IMFL and Country Liquor) Beer and Wine. IMFL market has been further bifurcated into Whisky Rum Brandy Vodka and Gin. IMFL industry offers immense growth opportunities triggered by increasing population and disposable income along with increasing social acceptance.
The IMFL market size in India is expected to grow to 299 million cases (mcs) in 2017 and is expected to reach 337 mcs by 2020. In 2017 the industry volume is expected to increase by 4.7%.
GROWTH DRIVERS
Indian IMFL market is one of the fastest growing industries globally with sales value and volume expected to witness CAGR value of 8.4% and 4.7% during the period 2017-21.
The growth will be
driven by:
Rising social acceptability: There is a fundamental positive change in the pattern of drinking among people in India. As conventional rules for alcohol use weakened drinking changed from ritualistic and occasional to become a part of routine everyday social meetings and entertainment.
Rising affluence: High per capita income of the consumers is pushing the industry to newer heights. The top two categories i.e. elite and affluent account for 27% of the total consumption which is anticipated to reach 40% by 2025. Today Indian middle class is moving to an upper income group with changing lifestyles luxury preferences and ability to pay more for premium products.
Rapid urbanization: Urbanized metros and tier-2 cities are fuelling the growth of the IMFL industry. By 2025 approximately 40% of India’s population is expected to migrate to cities and will account for over 60% of the total consumption expenditure.
Rising young population: Changing demographics is further expected to boost the Indian alcohol market with over 65% population below 35 years. Moreover estimated median age of the country’s population was pegged at 27 years in the year 2014. (Source - Future Markets Insight)
Change in drinking behaviour: Today more women and youth prefer alcohol breaking the traditional way of drinking behaviour. This is leading to a rapid rise in alcohol consumption across the country.
Changing Family Structures: Over the past two decades India is witnessing a gradual shift from joint to nuclear family. The decision makers in nuclear families are young and their consumption decisions are inclined more towards better lifestyle.
Increasing alcohol availability: Increased and better transportation facilities contribute to wider alcohol availability in India. Moreover variety of alcohol brands and types are easily available in Government-licensed outlets Government shops private licensed retail chains restaurants and bars.
COMPANY OVERVIEW
Introduction
The Company is among India’s leading alco-bev business
companies with a wide range of brands across the IMFL spectrum comprising
Whisky Brandy Rum Gin and Vodka with a predominant presence in South India and
CSD stores. It has established its unique identity in the IMFL industry with
its core competencies across manufacturing facilities wide distribution network
and efficient marketing strategies. The Company aims to enrich its product mix
with a sharp focus on premium brands that enjoy excellent consumer preference
owing to their quality and value addition.
BUSINESS PERFORMANCE
Despite a constrained environment in the industry TI is committed to explore growth opportunities by focusing on its premium segment.
Operations Review
During FY17 the sales volume increased by 27.30% to 5.130
million cases as compared to 4.030 million cases in FY16. Region-wise TI has
registered sales volume of 4.060 million cases in southern region 0.190 million
cases in eastern region 0.080 million cases in western region and 0.800 million
cases in exports and institutions segment. Segment-wise Brandy contributed 82%
followed by Rum Whisky Vodka and Gin segments which have contributed 11% 5% and
2% respectively to the overall sales volume of the Company. TI registered
37.45% increase in sales volume of its premium brand Mansion House Brandy
reporting 3.56 million cases during this year against 2.590 million cases in
the previous year. The Company faced challenges in the
supply of TI’s brands in key profitable States owing to shortage of working
capital.
Financial Performance
Revenue from operations (net of excise duty) of TI during FY17 on consolidated basis stood at INR 4866.760 million (inclusive of MVAT and CST refund of INR Nil) as compared to INR 4577.830 million (inclusive of MVAT and CST refund of INR 258.920 million) during the FY16. Despite the increase in the sales volume the Company has incurred a net loss of INR 2768.680 million during the FY17 as compared to net loss of INR 2817.440 million during the FY16.
The losses incurred in the recent years are mainly due to high debt resulting in high interest costs and loss in sales volume emanating from lack of adequate working capital to fund the cost of goods. The Company has already taken various measures to increase the sales volume and to reduce costs wherever possible and is actively exploring the possibilities of restructuring the existing debts selling of non-performing assets and considering the feasibility of raising additional capital from affiliates or other investors.
Nearly 47% of the secured debt of the Company has been taken over by Edelweiss Asset Reconstruction Company Limited with whom a long-term debt restructuring schedule to service the principal and interest is being discussed. The Company is confident that persistent efforts and strategies will gradually result in improved productivity and efficiency in the coming years.
Marketing and
Branding
TI has further strengthened its brand portfolio by initiating new marketing activities and deriving maximum value from the portfolio of its legacy brands that includes Mansion House Brandy and Courrier Napoleon Brandy – Red and Green. Some of these initiatives include:
- Revamping the packaging of the Mansion House Brandy to provide a better look and vibrancy to the brand;
- Conducting brand promotion initiatives and introducing celebration pack of Courrier Napoleon Brandy - Green in Puducherry and Karnataka resulting in better demand and sale of the brand in the market; and Foraying into digital promotions to increase the awareness of TI’s brands amongst the younger generation through non e-commerce digital/social media platforms with the generic name “Mansion House” of its marquee brand “Mansion House French Brandy”.
INFORMATION
TECHNOLOGY
Technology is the foundation for process and operational efficiency within the organization. TI’s strong data-driven platform derived from renowned and trusted software and hardware platforms is the key towards seamless business operations.
Information technology is the backbone for the Company assuming the centrestage for all business activities owing to SAP integrated operations. SAP enables complete business visibility to the Company Management across operations marketing and financial parameters.
Advanced Threat
Protection
Company has availed of Cloud E-mail Advanced Threat Protection service which will take care of ransomware malware email phishing and email spoofing attacks and shall ensure security to the Company by blocking advanced threats distinguishing stealthy irregularities and self-healing.
Backup
The Company is in the process of implementing a backup software for User data. This important initiative implementation will result in ensuring attendant benefits to the Company by reducing the business downtime ensuring unified data protection prevention of illegal access and optimization of network bandwidth backup time and storage.
INTERNAL CONTROL
SYSTEMS
The Company has effective efficient and adequate systems of internal controls which have been incorporated throughout the enterprise through SAP systems commensurate with the size and nature of the business. The Company’s Internal and Statutory Auditors review the adequacy of internal controls on a periodical basis and thus help mitigate/avoid fraud or any other discrepancies in the daily operational activities of the Company. The Audit Committee periodically reviews the findings of Internal and Statutory Auditors and advises the management with corrective policies and controls to be adopted by the Company consistent with the organizational requirements.
OUTLOOK
With economic activities improving in India along with rising income levels the IMFL industry is experiencing enhanced demand from aspiring and affluent consumer class. Despite a moderate growth during the year FY17 the long-term fundamentals for the Company remain positive.
Going forward with the consistent execution of its long-term strategy with greater focus on premium products brand development along with strengthening of distribution network your Company is on a steady path to recovery and remains an enduring and evolving Company in the IMFL space.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Short-term
borrowings |
|
|
|
From Directors and related parties |
1.250 |
31.990 |
|
From other parties |
554.010 |
452.560 |
|
Advances from subsidiary Company |
10.340 |
119.340 |
|
Total |
565.600 |
603.890 |
INDEX
OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G69282457 |
100123569 |
ANAND RATHI GLOBAL FINANCE LIMITED |
01/09/2017 |
27/11/2017 |
- |
50000000.0 |
4TH FLOOR SILVER METROPOLIS JAI COACH COMPOUNDOPPOSITE BIMBISAR NAGAR GOREGAON (EAST)MUMBAIMa400063IN |
|
2 |
G72856511 |
100020294 |
EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED |
30/03/2016 |
20/03/2017 |
- |
100000000.0 |
Edelweiss House Off. C.S.T RoadKalinaMumbaiMa400098IN |
|
3 |
G69545366 |
10557383 |
EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED |
25/03/2015 |
15/02/2017 |
- |
2000000000.0 |
Edelweiss House Off. C.S.T RoadKalinaMumbaiMa400098IN |
|
4 |
C35309301 |
10520768 |
IDBI Bank Limited |
30/08/2014 |
05/11/2014 |
- |
390000000.0 |
Corporate Banking Group224A 2nd Floor A WingMittal Court Nariman PointMumbaiMH400021IN |
|
5 |
C21330170 |
10520770 |
IDBI Bank Limited |
30/08/2014 |
- |
- |
500000000.0 |
Corporate Banking Group224A 2nd Floor A WingMittal Court Nariman PointMumbaiMH400021IN |
|
6 |
G72859721 |
10418834 |
EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED |
21/03/2013 |
20/03/2017 |
- |
650000000.0 |
Edelweiss House Off. C.S.T RoadKalinaMumbaiMa400098IN |
|
7 |
B71280846 |
10413248 |
HDFC BANK LIMITED |
07/03/2013 |
- |
- |
7700000.0 |
HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN |
|
8 |
G73647679 |
10272976 |
PNB INVESTMENT SERVICES LIMITED |
24/02/2011 |
30/03/2017 |
- |
5500000000.0 |
10 Rakesh Deep BuildingYusuf Sarai Commercial Complex Gulmohar EnclaveNew DelhiDe110049IN |
|
9 |
C53624417 |
10396612 |
Punjab National Bank |
22/12/2012 |
- |
19/05/2015 |
695000.0 |
BO Brady House Veer Nariman RoadFortMumbaiMH400023IN |
|
10 |
C53515433 |
10484182 |
Bank of India |
25/02/2014 |
- |
14/05/2015 |
1150000000.0 |
Nariman Point Large Corporate Branch92-93 Free Press HouseMumbaiMH400021IN |
STATEMENT OF STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH
JUNE 2017
|
|
|
Particulars |
quarter ended
30.06.2017 |
|
1 |
|
Income from
Operations |
|
|
|
|
Sales/Income from Operations (Gross) |
489.865 |
|
|
|
b) Other Operating Income |
7.435 |
|
|
Total Income from
Operations (Net) |
497.300 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Cost of Materials consumed |
270.572 |
|
|
b) |
Purchase of Stock-in-trade |
0.000 |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(12.531) |
|
|
d) |
Excise duty |
13.897 |
|
|
e) |
Employee benefit expenses |
51.963 |
|
|
f) |
Finance Costs |
332.077 |
|
|
g) |
Depreciation and amortization expense |
89.249 |
|
|
h) |
Other expenses |
360.286 |
|
|
Total Expenses |
1105.513 |
|
|
|
|
|
|
|
7 |
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items |
(608.213) |
|
|
8 |
Exceptional Items |
-- |
|
|
9 |
Profit /(Loss) from
ordinary activities before tax |
(608.213) |
|
|
10 |
Tax Expense |
-- |
|
|
11 |
Net Profit /(Loss)
from ordinary activities after tax |
(608.213) |
|
|
|
Other Comprehensive
Income |
|
|
|
(a). |
Items that will not be reclassified to profit and loss: |
|
|
|
|
i. Remeasurement
of the defined benefit gain (loss) |
(1.471) |
|
|
|
ii. Deferred
tax on Remeasurement of the defined benefit gain (loss) |
-- |
|
|
(b) |
Items that may be reclassified to profit and loss: |
-- |
|
|
|
Total Other Comprehensive
Income for the period |
(1.471) |
|
|
|
|
|
|
|
|
Total Comprehensive
Income for the period |
(609.684) |
|
|
12 |
Paid up equity share capital (Eq. shares of INR 10/- each) |
12475.60 |
|
|
13 |
Reserve excluding revaluation reserves |
|
|
|
14 |
|
Earnings per share (before/after extraordinary items) of Rs.10/- each |
|
|
|
|
Basic & Diluted |
(4.88) |
Note:
1. The above Results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on September 14, 2017.
2. The Company has adopted IND-AS with effect from April 01, 2017 with a
transition date of April 01, 2016.The financial results for all periods
presented have been prepared in accordance with recognition and measurement
principles laid down in the IND-AS 34: Interim Financial Reporting prescribed
under Section 133 of the Companies Act, 2013 read with relevant rules issued
thereunder and other accounting principles generally accepted in India.
3. The IND-AS compliant financial results for the quarter ended June 30, 2017
have been subjected to a limited review by the Statutory Auditors. The IND-AS compliant
figures of the corresponding quarter of the previous year have not been
subjected to a limited review by the Statutory Auditors. However, the
management has exercised necessary due diligence to ensure that such financial
results provide a true and fair view.
4. The statement does not include IND-AS compliant results for the preceding
quarter and previous year ended March 31, 2017 as the same are not mandatory as
per SEBI Circular dated July 05, 2016.
5. The Company is predominantly engaged in the business of manufacture and sale
of Indian Made Foreign Liquor (IMFL) and its related products, which constitute
a single business segment as per IND-AS 108: Operating Segments. Accordingly,
disclosure as per SEBI Circular dated July 05, 2016 is not applicable.
6. Reconciliation of the Net Profit/(Loss) on account of transition from
previous GAAP to IND-AS for the quarter ended June 30, 2016 is as under: (INR
in Million)
|
Particulars |
Quarter Ended |
|
|
June 30, 2016 |
|
|
Unaudited |
|
Net Profit/(Loss) after Tax as reported under Previous GAAP |
(606.638) |
|
Actuarial gain/(loss) in respect of defined benefit plan reclassified to Other Comprehensive Income |
1.401 |
|
Financial liabilities measured at amortised cost |
(2.393) |
|
Exchange fluctuation on financial liabilities |
0.252 |
|
Net Profit/(Loss)
After Tax as per IND-AS |
(607.378) |
7. The Company has tie-up arrangements in some States and in respect of such arrangements the turnover of Rs. 3,681.00 lacs and INR 1282.578 Million during the quarters ended June 30, 2017 and June 30, 2016 respectively has not been treated as 'Sales'. However, the surplus generated out of these arrangements is included in the 'Sales/ Income from Operations'.
8. The Company has been recognizing MVAT and CST subsidy on disbursement
instead of accrual basis from the quarter ended September 2015 onwards.
9. The Company has applied to the state government authorities for dual feed
permission for manufacture of ENA through molasses as well as grain at one of
its unit and permission is expected soon. In view of this, the management
believes that there is no impairment in value of its unit and hence, the
recoverable amount of the unit is not required to be estimated.
10. In lieu of advances given to certain parties amounting to INR 798.158
Million, immovable properties have been offered for which negotiations are in
process and hence, no provision is considered necessary in the books of
accounts.
11. The Company’s net worth has eroded, however, there is an improvement in
operational performance of the liquor business in terms of higher sales, market
share and margins. The Company is in the process of reviving the business in
the state of Tamil Nadu which will yield higher margins. These measures will
enhance the liquidity position of the Company resulting in production
efficiency. The promoters have the ability to organise additional financial
support in future, if required. The Company is also in active discussion with
the lenders on debt restructuring.
12. The previous period figures have been regrouped and reclassified wherever
necessary.
CONTINGENT
LIABILITIES:
(INR in million)
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
a) Corporate guarantees issued to banks on behalf of Subsidiary Company |
133.730 |
136.810 |
|
b) Bank guarantees issued on behalf of the Company |
84.860 |
85.050 |
|
c) In respect of disputed Income tax matters pending before the appropriate Income tax authorities contested by the Company |
|
|
|
A.Y. 2011-2012 |
0.000 |
253.830 |
|
A.Y. 2010-2011 |
0.000 |
273.790 |
|
A.Y. 2009-2010 |
36.690 |
36.690 |
|
d) In respect of disputed Sales tax matters pending before the appropriate tax authorities contested by the Company |
|
|
|
F.Y. 2010-2011 (MVAT) |
3.690 |
3.690 |
|
F.Y. 2010-2011 (Central Sales Tax) |
24.500 |
24.500 |
|
F.Y. 2009-2010 (Central Sales Tax) |
27.220 |
27.220 |
|
F.Y. 2008-2009 (TOT- Kerala) |
0.110 |
0.110 |
|
F.Y. 2008-2009 (VAT- Kerala) |
0.220 |
0.220 |
|
F.Y. 2007-2008 (TOT- Kerala) |
0.110 |
0.110 |
|
F.Y. 2007-2008 (VAT- Kerala) |
0.550 |
0.550 |
|
F.Y. 2006-2007 (Central Sales Tax) |
0.000 |
79.940 |
FIXED ASSETS
Tangible Assets
- Land
- Buildings
- Plant and Equipment
- Furniture and Fixtures
- Office Equipment
- Computers
- Electrical Installation and Fittings
- Motor car and Transport Vehicles
- Roads and Bridges
- Library Books
- Live Stock
- Leasehold Improvement
Intangible Assets
- Brands
- Software
- Product Development
CMT REPORT (Corruption Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized blocked frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] 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
|
INR |
|
US Dollar |
1 |
INR 64.02 |
|
|
1 |
INR 90.40 |
|
Euro |
1 |
INR 79.72 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Analysis Done by
: |
NYT |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at your
request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.