MIRA
INFORM REPORT
|
Report Date : |
16.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HYDERABAD INDUSTRIES LIMITED |
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Registered Office : |
Sanathnagar, Hyderabad – 500 018,
Andhra Pradesh, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.06.1955 |
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Com. Reg. No.: |
01-000656 |
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CIN No.: [Company
Identification No.] |
L99999AP1955PLC000656 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH00015B |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturers of well-diversified range of engineering goods
such as plant and machinery for A C products, slurry pumps, heavy-duty
screens, crushers, etc, used in mining and power plants. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD
5000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company of C K Birla Group. Available
information indicates high financial responsibility of the company. Financial
position is very good. Trade relations are fair. Payments are correct and as
per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. It can
be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
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Registered Office / Corporate Office : |
Sanathnagar, Hyderabad – 500 018,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23700600/1/37012 |
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Fax No.: |
91-40-23701227 / 23702400 |
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E-Mail : |
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Website : |
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Regional Marketing Offices: |
ANDHRA PRADESH Sanatnagar,
Hyderabad - 500 018, Andhra Pradesh E-mail : mo@hil.in NEW DELHI Himalaya House, 1st
Floor, 23, Kasturba Gandhi Marg, New
Delhi - 110 001 E-mail : deloff@hil.in,
hilmktg@vsnl.com
WEST BENGAL Birla Building ,
11th Floor, 9/1, R N Mukherjee Road, Kolkatta - 700 001. E-mail : koloff@hil.in MAHARASHTRA 96, Bajaj
Bhavan, 9th Floor, Nariman Point,
Mumbai - 400 021. Tel No. : 91-22 – 22021125 / 22027852 Fax: 91-22 - 2841107 E-mail : mumoff@hil.in CHENNAI Nutech Plaza , New
No 73, F-4, 1st Floor, Arcot Road, Kodambakkam, Chennai – 600024, Tamilnadu Tel No. 91-44 –
24804073 / 24721341 KOCHI 2nd Floor,
Kannankeri Estate, Shanmugham Road , Kochi - 682031 ( KERALA ) Tel No : 91-484 –
2373876 / 2369838 / 2352181 E-mail : marketing@mbplonline.com |
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Factory : |
·
Sanathnagar, Hyderabad - 500 018, Andhra Pradesh Tel
No. 91-40-3700601 Fax
No. 91-40-3701227 / 3702400 ·
Industrial Area, Jaisidih, Jharkhand Tel.
No. 91-6432-70216 / 260 / 22440 / 22359 / 70577 Fax
No. 91-6432-70277 ·
Sector 25, Faridabad -121 004, Haryana Tel. No. 91-129-5232031 Fax No. 91-129-5232914 E Mail : hilfbd@hydind.com ·
Plot No. 31, Main Jaipur Road, Dharuhera (Rewari) - 122 106, Haryana Tel. No. 91-1274-42167 / 42112
/ 42173 Fax No. 91-1274-42113 E Mail : hildhr@hydind.com ·
11-56, Thimmapur, Kothur Mandal, Mahaboobnagar
District - 509 325, Andhra Pradesh Tel
No. 91-8548-57124 / 57070 E Mail
: hiltim@hd2.dot.net.in ·
Plot No. 289, IDA, Kondapalli - 521 228, Krishna
District, Vijayawada, Andhra Pradesh Tel.
No. 91-866-872623 / 872624 Fax
No. 91-866-872503 E Mail
: hilvja@md3.vsnl.net.in ·
Kannigaiper Village, Periyapalem Road, Uthukottal
Taluk, Tiruvallur District - 601 102, Tamilnadu Tel.
No. 91-4116-68077 / 68115 Fax
No. 91-4116-68113 E Mail
: hil.aac@gnmds.globalnet.ems.vsnl.net.in
·
Musarane Works, 347, Musarane Village, Post : Met,
Via : Kudus, Taluq : Wada, District Thane - 421 312, Maharashtra ·
Sathariya, SIDA, Jaunpur Dist., - 222 022 (UP) ·
Thrissur, Mulangunnathukavu P.O., - 680 581 (Kerala) |
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Research
& development centre : |
7-2-1830/1, Behind FCI Godown, Erragadda, Hyderabad - 500 018,
Andhra Pradesh |
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Tel.
No.: |
91-40-371 3418 / 19 |
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E-Mail
: |
DIRECTORS
|
Name : |
Mr. C.K. Birla |
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Designation : |
Chairman |
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Name : |
Mr. Krishnagopal Maheshwari |
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Designation : |
Director |
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Date of Birth/Age : |
9th January 1955 |
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Date of Appointment : |
4th February 1980 |
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Profile : |
Rich Experience in the fields
of business and management as he held various senior positions in several
companies and has been a director on the boards of reputed companies |
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Other Directorship: |
Orient Paper and Industries
Limited, Hindustan Motors Limited, National Engineering Industries Limited,
Century Textiles and Industries Limited, Birlasoft Limited, The Indian Smelting
and Refining Company Limited, Birla Associates Private Limited (Singapore),
Supercor Industries Limited (Nigeria), Nigeria Engineering Works Limited
(Nigeria), Birlasoft Inc., U.S.A., Birlasoft (U.K.) Limited (London),
Panafrican Paper Mills (E.A.) Limited (Kenya) |
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Name : |
Mr. Shreegopal Daga |
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Designation : |
Director |
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Date of Birth/Age : |
12th January 1940 |
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Date of Appointment : |
24th December 1975 |
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Profile : |
Expertise in the field of
administration and management as he has been on the Board of various
companies as a Director and Managing Director for several years. |
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Other Directorship: |
Air Conditioning Corporation
Limited, India Silica Magnesite Works Limited, Suhal Projects Limited, Swati
Projects Limited, Vinal Commercial Private Limited |
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Name : |
Mrs. Sultana N. Alladin |
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Designation : |
Director |
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Date of Birth/Age : |
31st May 1921 |
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Date of Appointment : |
20th July 1983 |
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Profile : |
Good Knowledge about the
affairs of the Company from its inception since she belongs to the family of
Alladins the promoters of the Company. |
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Name : |
Mr. P. Vaman Rao |
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Designation : |
Director
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Name : |
Mr. Yash Pau |
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Designation : |
Director |
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Date of Birth/Age : |
10th June 1940 |
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Date of Appointment : |
30th January 2001 |
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Profile : |
Expertise in the fields of
finance and management as he had held various senior executive positions in
LIC. |
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Name : |
Mr. O.P. Jagetiya |
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Designation : |
Managing Director & CEO |
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Qualification : |
B.E.( Hons.) MBA, ME |
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Date of Appointment : |
9-9-2003 |
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Other Directorship: |
Nagariuna Fertilizer & Chemicals Limited |
MAJOR SHAREHOLDERS
As
On 30.12.2006
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding
of Promoter and Promoter Group |
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Indian
Promoters |
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Individuals/Hindus
Undivided Family |
232696 |
3.12 % |
|
Bodies
Corporate |
2847902 |
38.16 % |
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Public
shareholding |
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Institutions |
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Mutual
Funds/UTI |
587820 |
7.88 % |
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Financial
Institutions / Banks |
66372 |
0.89 % |
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Central
Government/ State Government(s) |
305552 |
4.09 % |
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Foreign
Institutional Investors |
4500 |
0.06 % |
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Non-institutions |
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Bodies
Corporate |
817984 |
10.96 % |
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Individual
shareholders holding nominal share capital up to Rs 1 lakh |
2144368 |
28.74 % |
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Individual
shareholders holding nominal share capital in excess of Rs 1 lakh |
159056 |
2.13 % |
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Non
Resident Individuals |
154161 |
2.07 % |
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Foreign
Individuals |
8864 |
0.12 % |
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Corporate
OCB |
133288 |
1.79 % |
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TOTAL |
7462563 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of well-diversified range of engineering goods
such as plant and machinery for A C products, slurry pumps, heavy-duty
screens, crushers, etc, used in mining and power plants. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Asbestos Cement Sheets,
Accessories and Fittings. |
MT |
NA |
532000 |
531697 |
|
Asbestos Cement Sheets &
Pipe Plants, Steel Moulds, Size Separation & Size Reduction Equipments,
Power Driven Pumps, Spares & Accessories |
MT |
NA |
4400 |
2645 |
|
Jointings |
MT |
1700 |
1700 |
1366 |
|
Moulded Thermal Insulation
Articles |
MT |
NA |
NA |
|
|
Thermal Insulation Products
(Refractories) |
MT |
NA |
3500 |
2775 |
|
Cement |
MT |
NA |
60000 |
47 |
|
Hysil Powder (by product) |
MT |
NA |
NA |
69 |
|
Cranes & Traversors |
MT |
NA |
4200 |
-- |
|
Aerocon Panels (R&D) |
MT |
NA |
NA |
-- |
|
Prefabricated Building Panels |
|
230000 |
460000 |
16996 |
|
Exfoliated Vermiculite |
MT |
8000 |
8000 |
118 |
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Prefabricated Autoclave
Aerated Concrete Blocks (CuM) |
|
160000 |
100000 |
66880 |
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Steel Structures including
large diameter pipes & fittings (single shift basis) |
MT |
NA |
6000 |
213 |
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Steel Castings & Steel
Ingots |
MT |
NA |
6000 |
119 |
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Metallurgical Machinery &
Material Handling Equip. |
MT |
NA |
1500 |
-- |
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Earthmoving Machinery,
Excavators/Shovels (Nos.) |
|
NA |
100 |
1 |
GENERAL
INFORMATION
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No. of Employees : |
1859 |
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Bankers : |
State Bank of Hyderabad State Bank of India Central Bank of India State Bank of Indore State Bank of Mysore State Bank of Travancore |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
S. R. Batliboi & Company Chartered Accountants |
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Associates/Subsidiaries : |
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Membership : |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
9,500,000 |
Equity Shares |
Rs.10/- each |
Rs. 95.000 millions |
|
50,000 |
Preference Shares |
Rs.100/- each |
Rs. 5.000 millions |
|
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GRAND
TOTAL |
|
Rs.100.000
millions |
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
7,147,631 |
Equity Shares |
Rs.10/- each |
Rs.71.476 millions |
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Add: |
Forfeited Shares |
|
Rs.0.272 million |
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GRAND
TOTAL |
|
Rs.
71.748 millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
71.748 |
71.717 |
71.717 |
|
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2] Share Application Money |
3.149 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1248.777 |
772.827 |
709.012 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1323.674 |
844.544 |
780.729 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
390.788 |
835.740 |
1147.459 |
|
|
2] Unsecured Loans |
179.182 |
249.444 |
204.269 |
|
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TOTAL BORROWING |
569.970 |
1085.184 |
1351.728 |
|
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Deferred payment Liabilities |
27.882 |
31.932 |
0.000 |
|
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DEFERRED TAX LIABILITIES |
116.038 |
0.000 |
33.715 |
|
|
|
|
|
|
|
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TOTAL |
2037.564 |
1961.660 |
2166.172 |
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
1007.431 |
1018.821 |
1223.632 |
|
|
Capital work-in-progress |
235.445 |
6.801 |
1.887 |
|
|
Expenditure during constriction period |
12.961 |
0.000 |
|
|
|
|
|
|
|
|
|
INVESTMENT |
180.544 |
127.918 |
56.666 |
|
|
DEFERREX TAX ASSETS |
0.000 |
89.844 |
155.344 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
774.064
|
784.306 |
815.390 |
|
|
Sundry Debtors |
391.795
|
432.511 |
354.265 |
|
|
Cash & Bank Balances |
66.681
|
43.105 |
47.878 |
|
|
Other Current Assets |
10.227
|
14.098 |
21.477 |
|
|
Loans & Advances |
278.659
|
191.057 |
290.555 |
|
Total Current Assets |
1521.426
|
1465.077 |
1529.565 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
768.446
|
613.935 |
830.641 |
|
|
Provisions |
151.797
|
157.501 |
5.461 |
|
Total Current Liabilities |
920.243
|
771.436 |
836.102 |
|
|
Net Current Assets |
601.183
|
693.641 |
693.463 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
24.635 |
35.180 |
|
|
|
|
|
|
|
|
TOTAL |
2037.564 |
1961.660 |
2166.172 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
4538.854 |
4108.067 |
3303.029 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
600.865 |
171.416 |
44.678 |
|
Provision
for Taxation |
223.985 |
74.000 |
(36.419) |
|
Profit/(Loss)
After Tax |
376.880 |
97.416 |
8.259 |
|
|
|
|
|
|
Export
Value |
37.049 |
31.009 |
31.137 |
|
|
|
|
|
|
Import
Value |
866.049 |
723.663 |
569.189 |
|
|
|
|
|
|
Total
Expenditure |
3831.132 |
3691.589 |
3267.141 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
1232.600 |
1009.500 |
1000.300 |
|
Other
Income |
17.000 |
10.700 |
18.100 |
|
Total
Income |
1249.600 |
1020.200 |
1018.400 |
|
Total
Expenditure |
1068.000 |
977.500 |
965.700 |
|
Operating
Profit |
181.600 |
42.700 |
52.700 |
|
Interest |
6.800 |
7.000 |
14.000 |
|
Gross
Profit |
174.800 |
35.700 |
38.700 |
|
Depreciation |
18.300 |
23.200 |
24.300 |
|
Tax |
54.000 |
5.500 |
11.200 |
|
Reported
PAT |
102.500 |
7.000 |
3.200 |
Notes
200606 Quarter 1 –
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
34.50 million Consumption of Raw Materials Rs 550.90 million Staff Cost Rs
90.40 million Carriage Outward (Net) Rs 135.80 million Other Expenditure Rs
212.40 million Tax indicate Provision for Taxation including Deferred Tax &
Fringe Benefit Tax Extraordinary Items indicate Provision for loss on onerous
contracts EPS is Basic Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. The results of the
quarter ended June 30, 2005 include figures of Malabar Building Products
Limited, which is merged with the Company w.e.f. April 01, 2005. The results
and EPS for the quarter ended June 30, 2005 have been recast accordingly. 2.
Pursuant to business transfer agreement, the Company has transferred its Heavy
Engineering Division to a party on July, 2005. The profit before tax for the
quarter ended June 30, 2006 includes profit of Rs 2.00 million from such
discontinuing operation. 3. Commercial production of Fibre Cement Sheeting
Plant in Eastern Uttar Pradesh has started from July 03, 2006. 4. Pursuant to
revision of Accounting Standard 29 regarding provision of loss on Onerous
Contracts, the Company has, at the quarter ended June 30, 2006 provided for Rs
44.00 million which has been shown under Exceptional Items in the quarter ended
June 30, 2006. 5. Previous years / period's figures have been regrouped /
rearranged /recast wherever necessary. 6. The above results were reviewed by
the Audit committee and taken on record by the Board of Directors of the
Company at its meeting held on July 21, 2006.
200609 Quarter 2 –
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
(127.30)million Consumption of Raw Materials Rs 640.40 million Staff Cost Rs
97.60 million Power & Fuel Rs 102.50 million Carriage Outward (Net) Rs
126.90 million Other Expenditure Rs 137.40 million Tax indicate Provision for
Taxation including Deferred Tax & Fringe Benefit Tax Extraordinary Items
indicate Provision for loss on onerous contracts EPS is Basic Status of
Investor Complaints for the quarter ended September 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 01
Complaints disposed off during the quarter 01 Complaints unresolved at the end
of the quarter Nil 1. The results of the quarter ended September 30, 2005
include figures of Malabar Building Products Limited, which is merged with the
Company w.e.f. April 01, 2005. The results and EPS for the quarter ended September
30, 2005 have been recast accordingly. 2. Pursuant to business transfer
agreement, the Company has transferred its Heavy Engineering Division to a
party on July 08, 2005. The profit before tax for the six months ended
September 30, 2006 is after adjusting loss of Rs 4.40 million from such
discontinuing operation. 3. Commercial production of Fibre Cement Sheeting
Plant in Eastern Uttar Pradesh has started from July 03, 2006. 4. Pursuant to
revision of Accounting Standard 29 regarding provision of loss on Onerous
Contracts, the Company has, at the six months period ended September 30, 2006
provided for Rs 39.10 million (after recouped loss of Rs 4.90 million from the
loss provided at the quarter ended June 30, 2006) which has been shown under
Exceptional Items in the results for the six months ended September 30, 2006.
5. Previous years / period's figures have been regrouped / rearranged /recast
wherever necessary. 6. The above results were reviewed by the Audit committee
and taken on record by the Board of Directors of the Company at its meeting
held on October 27, 2006.
200612 Quarter 3 –
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
(168.10)million Consumption of Raw Materials & components Rs 687.30 million
Staff Cost Rs 94.30 million Power & Fuel Rs 98.10 million Carriage Outward
(Net) Rs 126.30 million Other Expenditure Rs 127.80 million Tax indicate
Provision for Taxation including Deferred Tax & Fringe Benefit Tax
Extraordinary Items indicate Provision for loss on onerous contracts Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 01
Complaints disposed off during the quarter 01 Complaints unresolved at the end
of the quarter Nil 1. The results of the quarter ended December 31, 2005
include figures of Malabar Building Products Limited, which is merged with the
Company w.e.f. April 01, 2005. The results and EPS for the quarter ended
December 31, 2005 have been recast accordingly. 2. Pursuant to business
transfer agreement, the Company has transferred its Heavy Engineering Division
to a party on July 08, 2005. The profit before tax for the nine months ended
December 31, 2006 is after adjusting loss of Rs 11.40 million from such
discontinuing operation. 3. Pursuant to revision of Accounting Standard 29
regarding provision of loss on Onerous Contracts, the Company has, at the nine
months period ended December 31, 2006 provided for Rs 28.80 million (after
recouped loss of Rs 10.30 million from the loss provided at the quarter ended
December 31, 2006) which has been shown under Exceptional Items in the results
for the nine months ended December 31, 2006. 4. Previous years / period's
figures have been regrouped / rearranged /recast wherever necessary. 5. The
above results were reviewed by the Audit committee and taken on record by the
Board of Directors of the Company at its meeting held on January 31, 2007.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.84 |
1.66 |
1.92 |
|
Long Term Debt Equity Ratio |
0.44 |
0.92 |
1.06 |
|
Current Ratio |
1.16 |
1.16 |
1.12 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.41 |
2.10 |
1.67 |
|
Inventory |
5.88 |
5.20 |
3.90 |
|
Debtors |
11.12 |
10.56 |
9.45 |
|
Interest Cover Ratio |
13.04 |
2.79 |
0.40 |
|
Operating Profit Margin (%) |
15.96 |
10.13 |
4.42 |
|
Profit Before Interest and Tax Margin (%) |
14.20 |
8.08 |
1.98 |
|
Cash Profit Margin (%) |
9.99 |
4.77 |
0.59 |
|
Adjusted Net Profit Margin (%) |
8.22 |
2.72 |
(1.86) |
|
Return on Capital Employed (%) |
34.78 |
17.02 |
3.11 |
|
Return on Net Worth (%) |
36.80 |
15.04 |
(8.47) |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.221.00/- |
|
Low |
Rs.213.90/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Hyderabad Industries (HIL), a C K Birla group company was
incorporated as Hyderabad Asbestos Cement in Jun. '46 and was renamed to the
present one in Nov.1985. HIL is into the business of producing Building
Products , Engineering goods and Industrial products. It is the largest
manufacturer & exporter of A C Roofing sheets in India. It is also a market
leader in this product in India. It came out with its first public issue in
1946. The Company having its works in Hyderabad, Thimmapur, Vijayawada in
Andhra Pradesh, Faridabad and Dharuhera in Haryana, Jasidih in Jharkhand,
Uttarapara in West Bengal, Kannigaiper Village in Tamilnadu and Wada in
Maharashtra.
HIL markets its product AC Sheets under the well known brand Charminar A C
sheets. HIL is also the largest manufacturer of calcium silicate, insulation
blocks, pipe sections and jointings for gasketing, thereby meeting the critical
needs of the fertiliser, engineering and chemical industries.
The company manufactures a well-diversified range of engineering goods such as
plant and machinery for A C products, slurry pumps, heavy duty screens,
crushers, etc, used in mining and power plants. Its engineering division offers
expertise on setting up A C roofing sheet projects on a turnkey basis. Its
heavy enginnering division manufactures hydraulic excavators (in technical
collaboration with Mannesmann Demag Baumaschinen, Germany), cranes, steel
castings, steel part equipments, etc.
In Jul.'92, the company issued redeemable partly convertible debentures of Rs
160 on rights basis. In Dec.'95, it issued non-covertible debentures of Rs 100.
As a step towards further diversification into a new range of building
products, the company entered into a technical collaboration with Building
Technologies, Australia, to manufacture pre-fabricated building panels. It also
entered into a technical collaboration with Peiner Hebe and Transport Systems,
Germany, to manufacture tower cranes. The company was awarded a certificate of
merit by CAPEXIL for outstanding export performance in 1993-94.
PERFORMANCE
During the period under review the Fibre Cement Sheet Industry has
grown by over 12% but the Company could not share the growth of industry due to
non-availability of adequate stocks. Strike at Jasidih Unit of the Company
affected the production of Fibre cement sheets. However, better realization in
Building Products Segment coupled with cost control measures enabled the
Company to achieve good results. The competition among the manufacturers is
leading to pressure on prices. New entrants to the market are also putting
pressure on the prices to gain market share close to their plants. The Company
products enjoy the brand image and loyalty of customer since over 5
decades.
Autoclaved Aerated Blocks (AAC Blocks) and Aerocon Panels have entered this
year into a new era. Demand is very high for these products from various types
of customers. The Company is planning to expand its capacities in the near
future to meet the market demand for these products. Marketing of these
products by dissemination of information of various uses, applications and
inherent advantages of these products as cost effective and time saving
products gave good results. Emphasis of the Company on technical support,
guidance cost-benefit analysis of usage of these products to the customers has
helped to attract new customers to these products.
The production and sales of Thermal Insulation Products (Refractories) and
Process Plant and Machinery were satisfactory during the year under review. The
performance of Jointings has slowed-down due to severe competition from small
scale and un-organised sector.
EXPANSION
New fibre cement sheet plant set-up at Sathariya IDA in the state of Uttar
Pradesh is expected to commence commercial production in the first quarter of
current financial year. This would enable the Company to retain its market
share in the northern belt.
To maintain market leadership position and protect profitability, the Company
has decided to put up two new sheeting plants and a Blocks plant during
2006-07. This will entail a capital expenditure of about Rs.1000 Millions which
will be financed through internal accruals and borrowings.
INCREASE OF CAPITAL
In terms of the scheme of amalgamation of MBPL with the Company 29 fully
paid-up equity shares of Rs.10/- each of the Company for every 100 fully
paid-up equity shares of Rs.10/- each of MBPL are to be allotted to the
shareholders of MBPL. Accordingly the Company has put Rs.31,49,310/- in capital
suspense account to capitalise the same as and when shares are allotted to the
shareholders of MBPL. The shares which would be allotted to the shareholders of
MBPL shall rank pari passu in all respects with the existing equity shares of
the Company.
MANAGEMENT DISCUSSION AND ANALYSIS
Operating Results of the Company
During the year under review the Company has recorded a sales turnover (net) of
Rs.4502.894 Millions and PBIDT of Rs.742.676 Millions as against Rs.4079.588
Millions and Rs.521.873 Millions in the previous year.
Outlook for the Company
Fibre Cement Sheet is the main product of the Company contributing about 83% of
the total revenue. The Company also manufactures Aerocon Panels an in-house
developed product, Autoclaved Aerated Concrete Blocks etc., in the Building
Products Segment and Thermal Insulation Products and Jointings. The Company has
an Engineering Division in Hyderabad which deals in manufacture and supply of
plant and machinery and other related services.
During the year under review Malabar Building Products Limited (MBPL), promoted
by the Company in Joint Sector was amalgamated with the Company. MBPL operates
in the sheeting business and thus this merger offers synergic benefits of
consolidation.
Fibre Cement Sheet i.e. corrugated roofing sheet which is predominantly used
for roofing of industrial sheds, warehouses, poultry farms, houses of weaker
section people, is the most cost effective roofing material available in the
market. Considering various factors the demand for the product would continue
to grow. In the Fibre Cement Sheet industry the Company is one of the oldest
one and is having good brand image for its brand 'CHARMINAR' in the Indian
Market.
The Company has about 24% of the market share in this industry. This industry
has registered a good growth of over 12% in the previous year attracting the
existing players to expand their capacities and new entrepreneurs to enter into
the industry. Economic boom in the country led by various factors and
Government's thrust on building infrastructure may further boost the growth
prospectus of the industry in the coming years. Further, the Government's
stance to rural housing and building-up of storage facilities for farmers may
enhance the demand for the sheet. Higher prices of steel, zinc etc., would
continue to provide economic rationale for demand shift from GI sheets to fibre
cement sheets. Over-all, the industry outlook is optimistic.
As informed earlier the Company has set-up a green field sheet manufacturing
plant at Sathariya Industrial Development Area in the state of Uttar Pradesh.
Commercial production of this unit is due to commence in the first quarter of
current financial year. With this the Company's capacity for sheeting will
become about 652,000 MTA.
To enable the Company to participate in the growth of this market and protect
its market share, proposals of capacity addition at existing locations as well
as new locations are being evaluated. Capacity creation has become essential to
strengthen cost competitiveness and protect profitability.
The marketing strategy adopted by the Company for AEROCON
Panels and AAC Blocks has paid rich dividends. The products are getting popular
now. Production facilities at existing location are being augmented to meet the
market demand. In addition, new plant locations are also being evaluated.
The Company has exited the Heavy Engineering business. The Heavy Engineering
Division located at Uttarapara, Kolkata has been disposed off. There are some
residual activities to be completed in relation to this business. These
however, are not likely to have any significant financial implications.
BUSINESS
The company is engaged in manufacturing and marketing of various
products like Fibre Cement Products, Insulation Products, Earth Moving
Equipments, etc. and also provides Technical & Management Services.
The product range includes fibre cement corrugated and plain
sheets, autoclaved aerated concrete blocks, access flooring systems, calcium
silicate insulation product, jointing material for automobile gaskets, plant
& machinery for fibre cement products, AAC blocks, etc.
Subject markets its product AC Sheets under the well-known brand
"Charminar" A C sheets. It
is also the largest manufacturer of calcium silicate, insulation blocks, pipe
sections and jointings for gasketing.
It also manufactures a well-diversified range of engineering goods
such as plant and machinery for A C products, slurry pumps, heavy duty screens,
crushers, etc. used in mining and power plants. Its' engineering division offers expertise on setting up A C
roofing sheet projects on a turnkey basis.
Its' heavy engineering division manufactures hydraulic excavators (in
technical collaboration with Mannesmann Demag Baumaschinen, Germany), cranes,
steel castings, steel part equipments, etc.
FIXED
ASSETS
The company’s fixed assets of important value includes Freehold
Land, Leasehold Land, Buildings, Vehicles, Plant & Machinery, Furniture,
Fittings & Office Equipments, Vehicles and Railway Sidings.
AS PER WEBSITE
COMPANY PROFILE
Hyderabad
Industries Limited is a flagship Company of the C.K.Birla group of Companies,
established in the year of independence i.e., 1947. HIL has blazed a pioneering
path in the building products industry. HIL has led the cement industry for
well over five decades. Today HIL is a multi product, multi locational
organization with a formidable network of branches, depots, stockists and
personnel spread all over India.
HIL being backed by the ornagisational and technical expertise of the Birlas,
also has a Board of directors comprising experienced personnel from Business,
Finance and Industry. The Board is chaired by Mr.C.K.Birla.
HIL’s product range include Fibre Cement roofing sheets in the name of
CHARMINAR, Autoclaved Aerated Concrete Blocks and Panels called AEROCON,
Calcium Silicate insulation product called HYSIL, Jointing material for Gaskets
and Plant and machinery for these products.
Product
CHARMINAR AC ROOFING SHEETS
AEROCON PANELS
AEROCON HQ BUILDING BLOCKS
AEROCOOL ROOF BLOCK FOR COOL INDOORS
FLEX-O-BOARD
CALCIUM SILICATE BLOCKS AND
PIPE-COVERINGS
AEROCON PANELS
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.44.07 |
|
UK
Pound |
1 |
Rs.86.17 |
|
Euro |
1 |
Rs.57.97 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|