MIRA
INFORM REPORT
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Report Date : |
16.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
THE
INDIAN SMELTING AND REFINING COMPANY LIMITED |
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Registered Office : |
Lal Bahadur Shastri Marg, Bhandup, Mumbai – 400 078,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
01.12.1932 |
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Com. Reg. No.: |
11-1910 |
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CIN No.: [Company
Identification No.] |
L74999MH1932PLC001910 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00194F |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturing of Copper, Brass, Bronze, Nickel Silver Sheets,
Strips and Foils and Non-Ferrous Alloys. |
RATING & COMMENTS
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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
2250000 |
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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 company having fine track. The company is a part of CK
Birla Group. Available financial information indicates high financial
responsibility of the company. Trade relations are fair. Payment are usually
correct and as per commitments. The
company can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office : |
Lal Bahadur Shastri Marg, Bhandup, Mumbai – 400 078,
Maharashtra, INDIA |
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Tel. No.: |
91-22-2578 4331 |
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Fax No.: |
91-22-2578 4180 |
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E-Mail : |
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Website : |
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Factory
1 : |
Roling Factory Lal Bahadur Shastri Marg, Bhandup, Mumbai – 400 078,
Maharashtra |
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Tel.
No.: |
91-22-2578 4331 / 5597 4300 |
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Fax
No.: |
91-22-2578 4180 |
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E-Mail
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Factory
2 : |
Casting Factory 1st Pokhran Road, Panchpakhadi, Thane – 400 606,
Maharashtra |
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Tel.
No.: |
91-22-2588 2801 / 5598 7101 |
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Fax
No.: |
91-22-5598 7107 |
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E-Mail
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DIRECTORS
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Name : |
Mr. C. K. Birla |
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Designation : |
Chairman |
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Address : |
Prakash Deep, 10th
Floor, 7, Tolstoy Marg, New Delhi – 110 110 |
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Name : |
Mr. Shishir Nevatia |
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Designation : |
Director |
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Address : |
Precious Metal Castings, Udyog
Bhavan, 250-D, Worli, Mumbai – 400 025 |
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Name : |
Mr. C. G. Joshi |
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Designation : |
Director |
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Address : |
IFTMC, 1st Floor,
Calcot House, 8/10, Tamrind Street, Fort, Mumbai – 400 001 |
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Name : |
Mr. A.
S. Narayanna |
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Designation : |
Director
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Name : |
Mr.
Athul Singhi |
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Designation : |
Managing
Director |
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Address : |
‘Tamrakoot’, LBS Marg, Bhandup,
Mumbai – 400 078 |
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Qualification : |
B.Sc. |
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Date of Appointment : |
01.10.1977 |
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Previous Employment : |
Bihar Alloy Steels Limited,
Ranchi, President (Finance) (9 years) |
KEY EXECUTIVES
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Name
: |
Mr. Sushil K. Bhandari |
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Designation
: |
President |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Copper, Brass, Bronze, Nickel Silver Sheets,
Strips and Foils and Non-Ferrous Alloys. |
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Products : |
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Brand Names : |
“Double Hammer” |
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Exports to : |
Brass Sheets and Strips, Copper Sheets and Strips to African,
Middle-East, South-East Asia, Bangladesh, Kuwait, Malaysia, Nigeria, Qatar,
Sri Lanka, UAE and USA |
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Imports from : |
Copper Wirebars / Cathodes, Zinc Ingots (Virgin), Copper Scrap
and Brass Scrap from Singapore, Switzerland and UK |
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Terms : |
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Purchasing : |
L/C, D/A or D/P terms |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Non-Ferrous Sheets and Strips in Coils or Straight Lengths |
M.T. |
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14730 |
10385 |
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S. G. Iron and Steel Castings |
M.T. |
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9000 |
8775 |
GENERAL
INFORMATION
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Customers : |
·
Automobile ·
Telecommunications ·
Power Generation ·
Electrical and Electronics ·
General Engineering |
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No. of Employees : |
5000 |
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Bankers : |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
M. M. Nissim & Company Chartered Accountants Mumbai, Maharashtra |
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Associates/Subsidiaries : |
·
Birla Financial Corporation Limited ·
Ken Electricals Limited ·
M. P. Birla Group |
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Major Group Companies : |
Hindustan Motors Limited Hyderabad Industries Limited Orient Paper & Industries Limited Orient Fans Limited National Engineering Industries Limited Birlasoft Limited Zamil Birla Technical Services, Saudi Arabia. New Oilfield & Allied Services, Nigeria. Pan African Paper Mills (EA) Limited, Kenya Total Turnover of the Group is INR 4500 Crore ( US$
1 billion ). |
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Memberships
: |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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1,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
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400,000 |
Preference Shares |
Rs. 100/- each |
Rs. 40.000 millions |
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Total
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Rs.
50.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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613,400 |
Equity Shares |
Rs. 10/- each |
Rs. 6.134 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
6.134 |
6.134 |
6.134 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
577.250 |
504.051 |
465.037 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
583.384 |
510.185 |
471.171 |
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LOAN FUNDS |
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1] Secured Loans |
156.964 |
125.006 |
125.717 |
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2] Unsecured Loans |
7.603 |
68.774 |
3.241 |
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TOTAL BORROWING |
164.567 |
193.780 |
128.958 |
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DEFERRED TAX LIABILITIES |
6.938 |
8.406 |
16.730 |
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TOTAL |
754.889 |
712.371 |
616.859 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
167.155 |
110.048 |
122.728 |
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Capital work-in-progress |
6.542 |
36.762 |
0.000 |
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INVESTMENT |
3.015 |
3.135 |
3.015 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
428.406
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356.001 |
260.898 |
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Sundry Debtors |
283.820
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271.581 |
271.928 |
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Cash & Bank Balances |
2.183
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2.038 |
2.545 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
40.102
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29.514 |
30.516 |
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Total Current Assets |
754.511
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659.134 |
565.887 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
145.080
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65.625 |
72.695 |
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Provisions |
31.254
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31.083 |
2.076 |
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Total Current Liabilities |
176.334
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96.708 |
74.771 |
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Net Current Assets |
578.177
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562.426 |
491.116 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
754.889 |
712.371 |
616.859 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover [including other income] |
1891.573 |
1491.091 |
1200.562 |
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Profit/(Loss)
Before Tax |
119.525 |
74.661 |
76.764 |
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Provision
for Taxation |
43.532 |
27.725 |
43.199 |
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Profit/(Loss)
After Tax |
75.993 |
46.936 |
33.565 |
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Export
Value |
296.922 |
155.087 |
149.157 |
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Import
Value |
49.218 |
16.118 |
20.344 |
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Total
Expenditure |
1743.453 |
1391.504 |
1147.840 |
KEY
RATIOS
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Debt-Equity
Ratio |
0.33 |
0.33 |
0.30 |
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Long
Term Debt-Equity Ratio |
0.33 |
0.33 |
0.30 |
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Current Ratio |
4.69 |
6.01 |
7.02 |
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TURNOVER
RATIOS |
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Fixed
Assets |
3.51 |
3.08 |
2.63 |
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Inventory |
5.41 |
5.53 |
5.16 |
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Debtors |
7.65 |
6.28 |
5.40 |
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Interest
Cover Ratio |
8.03 |
8.87 |
6.98 |
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Operating
Profit Margin(%) |
7.85 |
6.40 |
6.87 |
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Profit
Before Interest And Tax Margin(%) |
6.50 |
4.94 |
5.11 |
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Cash
Profit Margin(%) |
4.93 |
4.23 |
4.47 |
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Adjusted
Net Profit Margin(%) |
3.58 |
2.77 |
2.71 |
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Return
On Capital Employed(%) |
19.03 |
13.01 |
11.71 |
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Return
On Net Worth(%) |
13.91 |
9.72 |
8.10 |
LOCAL AGENCY
FURTHER INFORMATION
The company’s fixed assets of important value include land
(freehold and leasehold), buildings, plant and machinery, furniture and office
equipment and vehicles.
Its’ products range includes ;-
·
Flash Light Cases
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Locks
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Levers
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Keys
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Novelties
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Copper Wirebars
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Cathodes
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Zinc Ingots (Virgin)
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Copper Scrap
·
Brass Scrap
As Pre Website
History :
The Indian Smelting and Refining Company Limited (IS), is a part
of CK Birla group, one of the largest industrial houses in India. In 1932, when
facilities for manufacturing were virtually lacking, Birla's bought a
non-ferrous foundry from an Englishman. From this humble beginning, IS has
become a leader in Indian non-ferrous metal industry with its well-known
"Double Hammer" brand products
As a step towards diversification IS set up a Casting Factory at
Thane in the year 1965.
The Roling Faktory is located in the picturesque suburb of Mumbai
at Bhandup.
The Company and the Group have scaled heights of
achievements with strong belief that management, an art, needs constant
improvement.
Innovations, Technological changes are key-stones of
the success story.
IS HAS THREE DIVISIONS :
1) Roling Faktory
(Bhandup, Mumbai)
Manufactures Copper, Brass, Phosphorbronze and Nickel
Silver Strips and Foils up to 0.04 mm thickness.
(Capacity 12000 Tons per annum.)
2) Casting Factory
(Thane)
Manufactures Sophisticated Ductile Iron Castings.
(Capacity 12000 Tons per annum.)
3) Casting Factory
(Pune)
A most modern and sophisticated Plant is expected to
commence Production in March 2006, for manufacturing of Ductile Iron
Castings through High Pressure Moulding
Line.
(Capacity 18000 Tons per annum.)
Beliefs :
They believe in total dedicated commitment for
excellence, perfection and quality.
They look forward to continuous improvement.
Motto :
Customer satisfaction with continuous improvement is
their motto.
Quality Certifications
The company has received Quality System certification
ISO 9001:2000 for manufacture and supply of Non-Ferrous semis and QS
9000:1998 for Ferrous castings from KPMG Quality Registrar,USA under the
American National Standards Institute -American Society for Quality
Control.
They have also been accredited by the Dutch Council
for Certification RVA with effect from 17th April 2003.
IS has become a leader in Indian non-ferrous industry
with its well-known "Double Hammer" brand products.
IS and the Group have reached great heights of
achievement because of strong belief that management, an art, needs constant
improvement to strengthen its base. Innovations, technological changes are the
key-stones for success.
They believe in total dedicated commitment to
Excellence, Perfection & Quality. They look forward to continuous improvement
and customer satisfaction is their motto.
IS has obtained self certification status for supplies
to Defence Organisations.
General & Operations
The Year 2004-05 witnessed a healthy rate of economic
growth in India. Reflecting satisfactory performance of engineering and
automobile sector, the Company achieved sales turnover of Rs. 1870 Millions
(Rs. 1490 Millions) and gross profits of Rs. 148.1 Millions (Rs. 99.600
Millions). The Company continued to adopt measures aimed at improving
productivity with stringent control on costs and concerted efforts towards
sales and realization.
Sustained efforts by the Company resulted in increase
in exports (including deemed exports) to Rs. 391.0 Millions (Rs. 190.800
Millions last year).
The Company's Casting Factory has embarked upon an
expansion, at new location, at Sanaswadi, near Pune at an outlay of approx. Rs.
600 Millions, entailing an increase in Casting capacity by 18,000 TPA to about
28,000 TPA overall. The new Plant with state-of-art technology is expected to
be operational by March 2006. The emerging enhanced volumes will enable Company's
business to strengthen in domestic and export market.
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 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
|
Indian Rupees |
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US
Dollar |
1 |
Rs.44.07 |
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UK
Pound |
1 |
Rs.86.17 |
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Euro |
1 |
Rs.57.97 |
SCORE &
RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
8 |
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OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
8 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
8 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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 |
|
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>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 |
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