Financial Overview of an organisation

Financial Overview of an organisation - B11050 Carborundum...

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B11050 Carborundum Universal Limited Assignment 3: Valuation of Debentures and Shares Long-term debt instruments Issued By Carborundum Universal Limited: 11.70% Secured Non-Convertible Redeemable Debentures 1 @ 500 debentures of Rs. 1 million each issued for cash at par redeemable in 2 equal annual instalments commencing from 1st January 2013 Secured by a pari-passu first charge on movable fixed assets of the Company, both present and future, and also a pari-passu first charge on the immovable properties, both present and future, relating to various manufacturing locations. Issued by Peer – Grindwell Norton Limited: No debentures issued 2 Issued by Peer – Orient Abrasives Limited: No debentures issued 3 Debenture Redemption Reserve 4 A provision that was added to the Indian Companies Act of 1956 during an amendment in the year 2000 stating that any Indian company that issues debentures must create a debenture redemption service to protect investors against the possibility of default by the company. Under the provision, debenture redemption reserves will be funded by company profits every year until debentures are to be redeemed. If a company does not create a reserve within 12 months of issuing the debentures, they will be required to pay 2% interest in penalty to the debenture holders. Only debentures that were issued after the amendment in 2000 are subject to the debenture redemption service. The debenture redemption reserve of Carborundum Universal Limited is at Rs 93.75 million as on 31.03.2011. 5 1 Schedule3 to Consolidated Accounts, Annual Report 2010-2011 Carborundum Universal Limited 2 Schedule3 to Consolidated Accounts, Annual Report 2010-2011 Grindwell Norton Limited 3 Schedule3 to Consolidated Accounts, Annual Report 2010-2011 Orient Abrasives Limited 4 http://www.investopedia.com/terms/d/debentureredemptionreserve.asp#axzz1aGUA6UzC 5 Schedule2 to Consolidated Accounts, Annual Report 2010-2011 Carborundum Universal Limited
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Listing Data 6 ISIN Descriptor Issuer Name Date of Issue Total Number of Bonds INE 120A0706 4 Carborundum Universal 11.70% 2014 Carborundum Universal Ltd 01-Jan-09 500 Face Value Coupo n % Redemptio n Date Day Count Issue Price Issu e Size Date of Listing 1000000 11.70% 01-Jan-14 Actual / Actual 1000000 5000 03-Feb-09 Yield to Maturity The debentures of Carborunum though listed are not traded. There is no market price available for them and hence yield to maturity cannot be calculated. 7
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Financial Overview of an organisation - B11050 Carborundum...

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