MIRA
INFORM REPORT
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Report Date : |
20.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
TATA
REFRACTORIES LIMITED |
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Registered Office : |
P.O.
Belpahar, District Sambalpur – 768 218, Orissa |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.09.1958 |
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Com. Reg. No.: |
15-349 |
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CIN No.: [Company
Identification No.] |
U26921OR1958PLC000349 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BBNT00014A |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturing and Selling of Refractories |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD
7250000 |
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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 having fine track. Financial
position is good. 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 : |
P.O. Belpahar, District Sambalpur – 768
218, Orissa |
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Tel. No.: |
91-657-2310 024 /
2231 087 |
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Fax No.: |
91-657-2310 818 /
2231 155 |
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E-Mail : |
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Website : |
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Head
Office : |
XLRI Campus, Circuit House Area(East), Jamshedpur-831 001,Jharkand,
India |
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Tel.
No.: |
91-0657-2231089, 2231336, 2231276, 2231331, 2225172 |
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E-Mail
: |
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Factory
1 : |
Belpahar, District – Jharsuguda-768 218, Orissa, India |
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Tel.
No.: |
91-6645-258800, 258381,258411 |
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Fax
No.: |
91-6645-258800, 258381,258411 |
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Factory
2 : |
District – Salem, Karuppur- 636012,
Tamil Nadu, India |
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Tel.
No.: |
91 427 448793 |
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Fax
No.: |
91 427 448793 |
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E-Mail
: |
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Domestic Marketing : |
Belpahar, District: Jharsuguda-768 218, Orissa, India |
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Tel.
No.: |
91-6645 – 252081, 250283, 250272, 250260 |
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Fax
No.: |
91-6645 – 252081, 250283, 250272, 250260 |
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E-Mail
: |
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Export Marketing : |
43, Chowringhee Road, Tata Centre, 11th Floor, Kolkata-700 071, West
Bengal, India |
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Tel.
No.: |
91 33 22885051 |
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E-Mail
: |
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OVERSEAS OFFICE |
Located at :- Malaysia |
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Branches
: |
Ø 24 Homi Mody Street, Fort, Mumbai – 400 001, Maharashtra Ø
`Tata Centre’, 11th
Floor, 43 Chowringhee Road, Kolkata –
700 071, West Bengal |
DIRECTORS
|
Name : |
Mr. J. Irani |
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Designation : |
Chairman |
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Name : |
Mr. C.
D. Kamath |
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Designation : |
Managing
Director |
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Name : |
Mr. A.
K. Chattopadhyay |
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Designation : |
Wholetime
Director |
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Name : |
Mr.
Maharaj Jai Singh |
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Designation : |
Director |
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Name : |
Mr.
Prem Sagar |
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Designation : |
Director |
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Name : |
Mr. T.
Mukherjee |
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Designation : |
Director |
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Name : |
Mr. R.
Sankaran |
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Designation : |
Director |
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Name : |
Mr. S.
Sarin |
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Designation : |
Director |
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Name : |
Mr. M.
R. Dash |
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Designation : |
Director |
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Name : |
Mr. A.
K. Chatterjee |
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Designation : |
Director |
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Name : |
Mr.
Koushik Chatterjee |
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Designation : |
Director |
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Name : |
Mr.
Koushik Chatterjee |
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Designation : |
Director |
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Name : |
Mr. P.
Sri Ramulu |
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Designation : |
Additional
Director |
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Name : |
Mr. S.
K. Sinha |
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Designation : |
Director |
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Name : |
Mr. G.
Ojha |
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Designation : |
Director |
KEY EXECUTIVES
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Name
: |
Mr. C. S. Das |
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Designation
: |
Executive Vice President (Corporate) & Secretary |
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Name
: |
Mr. C. D. Kamath |
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Designation
: |
Managing Director |
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Date
of Birth/Age : |
59 Years |
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Qualification
: |
B. Tech. (Met.) |
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Experience
: |
36 Years |
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Date
of Appointment : |
01.02.1997 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Selling of Refractories |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
2,358 |
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Bankers : |
Ø Central Bank of India, Kolkata, West Bengal, India Ø Central Bank of India, 33, Netaji Subhas Road, Kolkata, West Bengal, India Ø
State Bank of India, Jamshedpur, India |
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Banking Relations : |
Good |
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Auditors : |
N. M. Raiji & Company Chartered
Accountants |
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Parent Company : |
The Tata Iron and Steel Company Limited Mr. R. N. Tata - Chairman Employees – 48821 |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
Ø Adityapur Toll Bridge Limited Ø Almora Magnesite Limited Ø Indian Steel Rolling Mills Limited Ø Jamshedpur Injection Power Limited Ø Kalimati Investment Company Limited Ø Kalinga Aquatics Limited Ø Kumardhubi Fireclay & Silica Works Limited Ø Kumardhubi Metal Casting & Engineering Limited Ø Metaljunction.com Private Limited Ø Neelachal Refractories Limited Ø Nicco Jubilee Park Limited Ø Rujuvalika Investments Limited Ø Stewarts and Lloyds of India Limited Ø T. M. International Limited Ø Tata Construction & Projects Limited Ø Tata Motors Limited Ø Tata Finance Limited Ø Tata Incorporated Ø Tata Korf Engineering Services Limited Ø Tata Metaliks Limited Ø Tata Press Limited Ø Tata Robin - Fraser Limited Ø Tata Ryerson Limited Ø Tata Services Limited Ø Tata Sons Limited Ø Tata Sponge Iron Limited Ø Tata SSL Limited Ø Tata Yodogawa Limited Ø The Tata Pigments Limited Ø Tinplate Company of India Limited Ø TKM Overseas Limited Ø TKM Transport Management Services Private Limited Ø
TRF Limited |
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Ø
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CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs.10/- each |
Rs.250.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20,900,000 |
Equity Shares |
Rs.10/- each |
Rs. 209.000 millions |
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 |
209.000 |
110.000 |
110.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1616.600 |
614.700 |
386.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1825.600 |
724.700 |
496.300 |
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LOAN FUNDS |
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1] Secured Loans |
803.400 |
371.600 |
408.600 |
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2] Unsecured Loans |
107.900 |
208.400 |
233.500 |
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TOTAL BORROWING |
911.300 |
580.000 |
642.100 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
2736.900 |
1304.700 |
1138.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1294.200 |
914.300 |
742.800 |
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Capital work-in-progress |
580.900 |
173.300 |
13.700 |
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INVESTMENT |
10.100 |
10.100 |
11.900 |
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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 |
676.800 |
682.400 |
606.200 |
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Sundry Debtors |
781.300 |
666.800 |
498.200 |
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Cash & Bank Balances |
34.800 |
92.800 |
22.00 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
846.000 |
450.000 |
273.900 |
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Total Current Assets |
2338.900 |
1892.000 |
1400.300 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
845.300 |
1192.700 |
673.200 |
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Provisions |
641.900 |
492.300 |
357.100 |
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Total Current Liabilities |
1487.200 |
1685.000 |
1030.300 |
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Net Current Assets |
851.700 |
207.000 |
370.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2736.900 |
1304.700 |
1138.400 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
4660.300 |
4048.400 |
3166.000 |
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Profit/(Loss)
Before Tax |
516.600 |
466.600 |
265.800 |
|
Provision
for Taxation |
162.600 |
176.000 |
100.400 |
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Profit/(Loss)
After Tax |
354.000 |
290.600 |
165.400 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.58 |
1.02 |
1.27 |
|
Long
Term Debt Equity Ratio |
0.25 |
0.40 |
0.51 |
|
Current
Ratio |
1.05 |
0.95 |
0.98 |
|
TURNOVER
RATIOS |
|
|
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|
Fixed
Assets |
1.97 |
2.04 |
1.87 |
|
Inventory
|
6.71 |
6.22 |
5.66 |
|
Debtors |
6.29 |
6.88 |
6.88 |
|
Interest
Cover Ratio |
13.39 |
14.85 |
6.37 |
|
Operating
Profit Margin (%) |
14.69 |
14.53 |
12.54 |
|
Profit
Before Interest and Tax Margin (%) |
12.25 |
12.49 |
9.94 |
|
Cash
Profit Margin (%) |
10.21 |
9.29 |
7.81 |
|
Adjusted
Net Profit Margin (%) |
7.77 |
7.26 |
5.22 |
|
Return
on Capital Employed (%) |
27.63 |
40.57 |
30.79 |
|
Return
on Net Worth (%) |
27.76 |
47.60 |
33.50 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 5th September 1958 at Sambalpur in Orissa having Company Registration Number 349.
Being the subsidiary of Tata Iron and Steel Company Limited (TISCO), the company has been engaged in producing Bricks & Shapes, Magnesia Carbon, Monolithics/ Castables (Fireclay, Basic, Silica, High Alumina, Insulating) and Bricks and Shapes and High Alumina.
During 2000-01, inspite of strong competition, the company has maintained its premier position in the Refractories Industry in successive years. The Sales Volume at 104246 MT during 2000-01, which is higher by 2% over the previous year and was record highest in the 43 years history of the company.
The company has emerged as the No. 2 dolomite refractories supplier in the world. Consequently the production of dolomite refractories during the year 2001 stood at 21008 MT, which is an all time record.
The exports during the year 2000-01, has registered a growth of 30% over the previous year as figures stood at Rs. 260.000 millions as against Rs. 200.000 millions in the previous year.
During 2000-01, the company has successfully installed BaaN ERP. This provides an integrated system for sales and distribution, production, finance, material management and human resources management. ERP will also play a vital role in quantitative business analysis and shall enable informed decision-making.
The company is a subsidiary of the Tata Iron & Steel Company Limited.
Subject has been accredited with ISO 9002 Certification.
It is in trade terms with :-
Ø Baljit Engineering Private Limited
Ø Bejon Engineering Company
Ø IB Valley Metal Forming (Private) Limited
Ø Jagannath Saw Mills
Ø Kalinga Packers Private Limited
Ø Sudarshan Utensil (Private) Limited
Ø Jaganath Plastic Packers Private Limited
Ø Chemco India
Ø Eleva Cast India
Ø Gajanan Minerals Private Limited
Ø Rourkela Minerals Company Private Limited
Ø U. P. Foundry
The company’s fixed assets of important value include land, buildings and road, plant and machinery, railway siding, furniture and fixtures, office equipment and vehicles.
Performance
Indian economy after showing an impressive GDP growth of 8.1 % in the first
half year of 2005-06, had a slow down in the second half of the year, and the
overall GDP growth is estimated to be 7.5% to 8%. The global steel industry
continued its march with another year of strong growth. Refractories Industry
also grew during the year, benefiting from this growth.
The year 2005-06 has been another record-breaking year for the operations of
their Company in terms of achieving highest ever revenues, production, sales
and exports as well as profits before and after taxes. It has also successfully
retained its leadership position as the country's largest refractories
manufacturer. The financial results demonstrate the effectiveness of their
strategies in this regard.
The Company's total revenues grew to Rs.4600 Millions from Rs.4040 Millions in
the previous year, registering a growth of 14%. The Company sold 207906 t. of
refractories (2004-05: 194504 t), an increase of 7% over the previous year. The
profit before taxes rose to Rs. 520 Millions against Rs. 470 Millions in the
previous year (an increase of 11%) and profit after taxes rose to Rs.350
Millions against Rs.290 Millions last year (an increase of 21 %). During the
year, prices of raw materials and fuels continued the previous year's rising
trends. Despite unprecedented increases in major input costs, the Company could
not realize higher prices for its finished products due to the threat of
imports, mainly from China. Therefore the excellent performance of the year was
once again obtained from high operational efficiencies resulting in enhanced
production and productivity levels, richer product mix, quality and process
improvements, efficient finance management, aggressive cost reduction
etc.
Exports
The initiatives pursued by the Company to establish a meaningful presence in
overseas markets have proved to be fruitful. The record breaking highest ever
exports of Rs. 510 Millions achieved during the year (compared to Rs. 370
Millions in the previous year - an increase of 38%) are a testimonial to these
efforts. Their exports account for over 20% of the total retractories exported
from India and cover 35 countries. The Company is aggressively pursuing a
policy of enhancing its export volumes.
Modernization and Expansion
The modernization and expansion programme, undertaken from the year 2003-04 in
order to increase production capacity as well as improve quality and
productivity and thus become globally competitive, has progressed well. The
Company has incurred a capital expenditure of Rs. 1640 Millions so far on this
programme. The total cash outflow for capital expenditure during the year is
Rs.1000 Millions and projects worth Rs. 490 Millions were completed and
commissioned. Major facilities commissioned during the year are:
v Binder Plant,
v Rotary Kiln-II in Dolomite Department,
v Packaging System in Dolomite Department,
v Shuttle Kiln in the Silica Department,
v High Temperature Tunnel Kiln Automation and
v 2-T Inclined Mixer Machines.
Other facilities will commence operations during the current
year.
Finance
As mentioned in previous year's report, the Authorised Share Capital of the
Company has been increased to Rs. 250 Millions. Last year 99,00,000 fresh
equity shares of Rs. 10/- each were issued to the existing shareholders on
Rights basis at a premium of Rs. 75/- per share. The Rights issue of shares was
fully subscribed, and these shares were allotted during the year under review.
Consequently, the Paid-up capital of the Company, as on 31st March, 2006, is
Rs.209.000 Millions compared to Rs.110 Millions in the previous year.
To part finance the expansion and modernization projects, the Company has
availed term loans of Rs.46 Millions during the year. As a result, the total
borrowings during the year have increased to Rs. 91 Millions against Rs. 58
Millions of the previous year.
Subsidiary Companies
The Company has formed TRL Asia Private Limited, a Special Purpose Company in
Singapore, which in turn has formed a Wholly Foreign Owned Enterprise (WFOE) in
China in the name of TRL China Limited. At present TRL Asia Private Limited is
a 100% Subsidiary of Tata Refractories Limited with Paid-up Share Capital of
SGD 2.00. Subsequently, TRL Asia Private Limited will be converted into a Joint
Venture Company with Tata Refractories holding 76% of the share capital and the
JV Partner holding the balance 24%. The main purpose of TRL Asia Private
Limited is to hold 100% ownership of TRL China Limited such that there is no JV
partnership in the latter. Accordingly, TRL China Limited is also a Subsidiary
of Tata Refractories Limited. TRL China Limited is in the process of setting up
a Plant in China to manufacture basic quality refractories such as Magnesia
Carbon Bricks and DBMC Bricks by taking advantage of availability of good
quality economical raw materials in the locality.
The first financial year of TRL Asia Private Limited ended on 31.03.2006 and
the first Accounts of the Company for the period from 02.11.2005 to 31.03.2006
are attached. The first financial year of TRL China Limited will end on
31.12.2006.
Website
Details :
Technical Partners
Ø
Krosaki, Japan
Ø
Mgc Bricks
Ø
Basic Monolithics
Ø
Slide Plates
Ø
Dolomitwerke , Germany
Ø
Dolomite Refractories
Ø
Stopinc, Switzerland
Ø
L.S. System For Slidegate
Ø
Monocon, U.K
Ø
Basic Spraying Mass
Ø
Lichtenberg, Germany
Ø
Coke Oven Repair Materials
Ø
A.P.Green, USA
Ø
Castables
Ø
Elkem Asa, Norway
Ø
Ceramite
News Details
TRL wins Golden Peacock Innovation Award – 2006
TRL
wins Golden Peacock Innovation Award
Tata
Refractories Limited has been selected as winner of the Golden Peacock
Innovation Award-2006 by the award Jury under the Chairmanship of Justice P N
Bhagwati, Former Chief Justice of India and Chairman, Golden Peacock Awards.
Out of
a total 243 applications received from all over the country, TRL emerged
as the
winner after a stringent assessment process based on an exhaustive set of
parameters. Out of total score of 1000 entries scoring over 80% were short
listed and presented to the Jury for their consideration.
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 |
|
US
Dollar |
1 |
Rs.44.25 |
|
UK Pound |
1 |
Rs.86.41 |
|
Euro |
1 |
Rs.58.10 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|