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MIRA INFORM REPORT
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Report
Date : |
15.01.2007 |
IDENTIFICATION DETAILS
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Name : |
MAN INDUSTRIES ( |
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Registered
Office : |
Man
House, 102, |
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Country
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
19.05.1988 |
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Com.
Reg. No.: |
11-47408 |
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CIN
No.: [Company
Identification No.] |
L99999MH1988PLC047408 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMM20899E |
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PAN
No.: [Permanent
Account No.] |
AAACM2675G |
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Legal
Form : |
A public limited liability company. The company's shares are listed on the
Stock Exchanges. |
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Line
of Business : |
Manufacturing of submerged arc welded pipes, aluminium
extruded sections / profiles and spirally welded tubes and pipes. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
11000000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Usually
correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established company
having fine track. Trade relations are fair. Financial position is good.
Payments are usually correct and as per commitments. The company can be considered
good for 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 |
Man House, 102, |
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Tel.
No.: |
91-22-66477500 / 2610 8888 |
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Fax
No.: |
91-22-66477600 / 01 |
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E-Mail
: |
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Website
: |
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Office
: |
1, Chandrageet, 120, |
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Tel.
No.: |
91-22-26201365-8
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Fax
No.: |
91-22-26203561 |
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E-Mail
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Website
: |
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Central
Office : |
Man House, 15 PU 3, Scheme 54, |
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Tel.
No.: |
91-731-559070 / 71 / 72 / 73 |
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Fax
No.: |
91-731-557891 / 92 |
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E-Mail
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Website
: |
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Overseas
Offices : |
Located at |
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Factory : |
Aluminium Division
Plot No.
67, Sector No. 1, Pithampur Industrial Area, Pithampur (Near Indore), Dhar
District, Madhya Pradesh Tel. No.
91-7292-253446 Pipe and Coating Division
Plot No.
257/258 B, Sector No. 1, Pithampur Industrial Area, Pithampur (Near Tel. No.
91-7292-253666 Pipe
& Coating Complex (Expansion Project) Village :
Khedoi, Taluka : Anjar, District : Kutch ( Tel. No : 91-2836-249160 |
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Flat No.
902, 9th Floor,
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No
54, |
DIRECTORS
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Name : |
Mr. R. C.
Mansukhani |
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Designation
: |
Chairman |
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Name : |
Mr. J. C.
Mansukhani |
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Designation
: |
Managing Director |
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Name : |
Mr. J. L.
Mansukhani |
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Designation
: |
Director |
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Name : |
Mr.
Sudatta Mandal |
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Designation
: |
Director |
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Name : |
Mr. Kirit
Damania |
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Designation
: |
Director |
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Name : |
Mr. Vijay
G. Kalantri |
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Designation
: |
Director |
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Name : |
Mr. Vijay
Ranchan |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Anil
Cherian |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Banks and
Financial Institution |
100 |
0.00 % |
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Foreign
Institutional Investor |
750677 |
2.91 % |
|
Mutual
Fund |
3328658 |
12.94 % |
|
Bodies
Corporate |
783622 |
3.04 % |
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Directors,
Relatives and Promoters |
9818153 |
38.14 % |
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Others |
11061227 |
42.97 % |
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Total |
25742437 |
100.00 % |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing of submerged arc welded pipes, aluminium
extruded sections / profiles and spirally welded tubes and pipes. |
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Products
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Exports
to : |
Middle East and |
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Imports
from : |
Europe and |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Aluminium Division (Sections) |
MT |
6000.000 |
3035.006 |
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Pipes Division |
MT |
425000.000 |
173913.237 |
GENERAL INFORMATION
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No. of
Employees : |
1000 |
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Bankers
: |
v
State Bank of v
State Bank of v
Bank of v
ICICI Bank Limited, Nariman Point Branch, Mumbai, v State
Bank of v
UTI Bank Ltd., v Corporation
Bank, IFB, Fort, Mumbai v ABN Amro
Bank, Nariman Point, Mumbai |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Rohira
Mehta & Associates Chartered Accountants Mumbai |
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Associates
: |
MAN Group of Companies |
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Membership
: |
Confederation of Indian Industry. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
3,00,00,000 |
Equity
Shares |
Rs.10 each |
Rs. 300.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
25742437 |
Equity
Shares |
Rs.10 each |
Rs. 257.424 Millions |
|
900000 |
Application
Money |
|
Rs. 9.000 Millions |
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|
Total |
|
Rs. 266.424 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 |
266.424 |
199.116 |
189.117 |
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2]
Reserves & Surplus |
2485.850 |
740.716 |
597.188 |
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NETWORTH
|
2752.274 |
939.832 |
786.305 |
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LOAN
FUNDS |
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|
1]
Secured Loans |
2485.612 |
1547.357 |
560.050 |
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|
2]
Unsecured Loans |
23.996 |
80.875 |
28.587 |
|
TOTAL
BORROWING
|
2509.608 |
1628.232 |
588.637 |
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|
DEFERRED
TAX LIABILITIES |
261.861 |
203.678 |
125.544 |
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TOTAL
|
5523.743 |
2771.742 |
1500.486 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
2453.798 |
1881.349 |
883.936 |
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Capital work-in-progress
|
10.885 |
305.545 |
70.553 |
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INVESTMENT
|
2.750 |
3.030 |
3.774 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
1154.197 |
631.445 |
121.578 |
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Sundry Debtors
|
1005.743 |
1155.160 |
623.386 |
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Cash & Bank Balances
|
1567.419 |
290.546 |
42.993 |
|
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Other Current Assets
|
0.000 |
0.000 |
0.000 |
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Loans & Advances
|
1230.120 |
216.082 |
67.493 |
Total Current Assets
|
4957.479 |
2293.233 |
855.450 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
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Current Liabilities
|
1901.169 |
1587.925 |
190.653 |
|
|
Provisions
|
0.000
|
124.789
|
124.992
|
Total Current Liabilities
|
1901.169
|
1712.714
|
315.645
|
|
Net
Current Assets
|
3056.310 |
580.519 |
539.805 |
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MISCELLANEOUS EXPENSES
|
0.000 |
1.299 |
2.418 |
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TOTAL
|
5523.743 |
2771.742 |
1500.486 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
9304.486 |
4992.716 |
4154.801 |
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Profit/(Loss) Before Tax
|
513.259 |
289.330 |
593.476 |
Provision for Taxation
|
162.848 |
|
200.231 |
Profit/(Loss) After Tax
|
350.411 |
183.158 |
393.245 |
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Export Value
|
4171.522 |
1112.111 |
284.293 |
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Import Value
|
3471.564 |
1407.468 |
1354.263 |
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Total Expenditure
|
8635.574 |
4635.272 |
3481.028 |
QUARTERLY
|
PARTICULARS |
|
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
|
Sales Turnover |
|
2083.000 |
2926.300 |
|
Other Income |
|
0.000 |
0.000 |
|
Total Income |
|
2083.000 |
2926.300 |
|
Total Expenditure |
|
1844.400 |
2596.800 |
|
Operating Profit |
|
238.600 |
329.500 |
|
Interest |
|
60.000 |
101.000 |
|
Gross Profit |
|
178.600 |
228.500 |
|
Depreciation |
|
37.100 |
43.900 |
|
Tax |
|
26.400 |
11.700 |
|
Reported PAT |
|
104.300 |
148.200 |
Notes
200606
Quarter 1 –
1. The above financial results have been taken
on records by the Board of Directors at their meeting held on 29th July 2006.
2. The above figures have been subjected to the limited review conducted by the
auditors of the company. 3. There were 0 complaints pending at the beginning of
the Quarter, 39 were received during the quarter, 39 resolved and 0 complaints
were pending at the end of the quarter. 4. Previous period figures have been
regrouped and re-arranged wherever necessary. 5. The production at Anjar Plant
was affected for approximately 3 weeks due to a breakdown. The plant has since
resumed normal production. 6. The Board of Directors have approved the
de-merger scheme of Aluminum Division subject to necessary approvals.
200609
Quarter 2 –
Expenditure Includes (Increase)/Decrease in
stock Rs (56.10)million Cost of Goods Sold Rs 2429.80 million Staff Cost Rs
67.40 million Other expenditure Rs 155.60 million Tax Includes Provision for
Deferred Tax Rs 24.70 million Current Tax Rs 11.10 million Fringe Benefit Tax
Rs 0.60 million 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 21 Complaints disposed off during the
quarter 21 Complaints unresolved at the end of the quarter Nil 1. The above
financial results have been taken on records by the Board of Directors at its meeting
held on October 31, 2006. 2. Previous period figures have been regrouped and
re-arranged wherever necessary. 3. The Government of
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.13 |
1.29 |
1.17 |
|
Long Term Debt Equity Ratio |
0.68 |
0.90 |
0.70 |
|
Current Ratio |
1.26 |
1.03 |
1.16 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.04 |
2.75 |
4.01 |
|
Inventory |
9.19 |
13.19 |
27.81 |
|
Debtors |
7.59 |
5.59 |
9.21 |
|
Interest Cover Ratio |
2.91 |
5.26 |
8.17 |
|
Operating Profit Margin (%) |
11.42 |
8.56 |
15.48 |
|
Profit Before Interest and Tax Margin
(%) |
9.52 |
7.19 |
13.83 |
|
Cash Profit Margin (%) |
6.17 |
5.06 |
9.69 |
|
Adjusted Net Profit Margin (%) |
4.27 |
3.69 |
8.04 |
|
Return on Capital Employed (%) |
20.01 |
18.18 |
51.20 |
|
Return on Net Worth (%) |
19.07 |
21.34 |
64.36 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.211.00/- |
|
Low |
Rs.205.50/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on 19th May, 1988 at
Mumbai in
Subsequently, the name of the company was changed to the
present.
Man
Industries India (MIIL), manufacturer of SAW pipes, Spiral pipes and Aluminium
extrusions is part of Mumbai based 'The Man Group'.
Eventhough MIIL, which commenced its operations with manufacture of aluminium
extrusions, the company's diversification into manufacture of SAW/Spiral pipes
is presently contributing more to the company's turnover than the aluminium
extrusion division.
The company promoted by Rameshchandra Mansukhani and incorporated on March 19,
1988 has its aluminium extrusion plant at Pithampur, Madhya Pradesh. The pipes
division of the company which include both Saw Pipe manufacturing facility and
Spiral Pipe and Coating also located at Pithampur, MP near to the aluminiu
extrusion plant.
The company has Collaboration agreement with Chr. Haeusler,
The company tapped the Capital Market in Aug '89 to part finance its project to
manufacture 4000 tpa of aluminium extrusions in Pithampur and this project
commenced commercial production in May 1990. Again in Aug 1994 the company came
out with right issue to part finance its project involving expansion of
aluminium extrusion capacity and diversification into manufacture of SAW Pipes.
The capacity of the aluminium extrusion plant was expanded by putting up an
imported 1100-tpa press which started production in Oct.'95. The
expansion-cum-diversification was part-financed by a rights-cum-public issue in
Aug.'94. The company proposed two new projects for P E Coating of Pipes and
Spiral Pipe Mill within the existing vicinity of its saw pipes plant at
Pithampur is going in full swing and the commercial production was expected by
October, 1998.
The Company's Spiral Pipe Project was commissioned and commercial production
was started in April 99. Company also completed diversification of pipe
division. The Company had set up a 3-Layer Poly Ethylene Coating Plant at
Pithampur for coating of pipes manufactured inhouse and also carry out job work
of coating of pipes. The production was started as per the schedule.
The company is now eligible to bid for major trunk line projects both in
domestic and as well in international level as it has upgraded its facilities
to meet international standards. Further the company has also got certified
with ISO 9002.
Achievements made by the Man Group :
·
An
ISO 9001/14001/18001 Company
·
Largest
Exporters to
·
American
Petroleum Institute (API) Certification
·
Certified
by Engineers India Limited (EIL)
·
Government
recognized “Export House” status.
·
Recipient
of Export Excellence Award 1993 & 1994
·
Recipient
of Management Excellence Award in 1995
·
Recipient
of Rajeev Ratna Award in 1994
·
Recipient
of EEPC Award in 1996 & 1999
·
Recipient
of “Niryat Shree” Award of FIEO for 2001-2002
Operations:
During the year the company achieved net sales of Rs.8699.3 Millions an
increase of 75.80% over the corresponding period. On account of good export
order and healthy domestic market, both the manufacturing facilities of the
Company have backed the order very well and we expect the trend to
continue.
i) Pipe Division:
The performance of pipe division was satisfactory during the year under review.
The division has concentrated on export market and there is a significant rise
in the export turnover as compared to last year. The order book has been
constantly increasing and the higher productivity at Anjar will help the
Company to achieve targeted growth.
ii) Aluminum Division:
Pursuant to the approval of the shareholders at the 17th Annual
General Meeting, we are initiating steps for the de-merger of the Aluminum
Division of the Company. The Aluminum business is expected to do well in coming
years due to robust demand in the global market.
GDR Offering:
The Company has successfully completed GDR offering of USD35 million at Dubai
International Financial Exchange. The Company has allotted 67,30,770 underlying
equity shares on 22nd March, 2006 against the GDRs representing one
equity share per GDR. The offer price was USD 5.2 per GDR. With the said
offering the equity capital of the Company increased to Rs.257.424 Millions
consisting of 2,57,42,437 equity shares of Rs.10 each.
Future Outlook:
The buoyant Oil and Gas industry and other infrastructure developments in the
domestic and international market provide ample opportunity for growth. Their
successful diversification into Pipe business and world class state of the art
manufacturing facilities bring rich dividends to the Company and its
stakeholders and is expected to continue in the future. With proper Government
support in terms of its industry friendly policies, we are able to increase their
share in the market and is expected to increase further on account of the
positive outlook of Indian and World Economy.
Outlook &
Opportunities:
The increased demand for oil and gas across the globe is the main driver for
higher demand for their product. It is anticipated that the demand on oil and
gas will grow all over which will result in higher demand for pipelines as the
efficient mode of transportation. Their growth model is built up on a strong
local presence and focus on export market. Exports have been the driver for their
growth and we expect it to remain robust. The company in the process of adding
many international clients and have opened door for new market
discoveries.
The successful expansion of Pipe manufacturing facility at Anjar has given
useful result to company in terms of scale of operation, reduced cost of
logistics, efficient handling of raw material and final product etc. In long
term, these advantages coupled with other advantages provided by the government
will help the company in long term.
Indian Companies now account for almost a quarter of the world's SAW pipe
production. The current global boom in oil and gas resulted a skyrocketing
demand for pipelines.
Line Pipe is a product, which has a designed life, depends on various factors
like the characteristics of the fluid being transported, service conditions and
operating pressures. The pipelines, which complete their designed life, are to
be replaced in phases. The market for new and replacement pipelines are
constantly growing and is expected to reach 200,000 km.
The Company is having world class manufacturing plants for the manufacture of
SAW pipes and the close proximity to monsoon free port at Kandla and also to
the fastest growing private
Subject has
been accredited with ISO 9002 Certification.
The company's fixed assets of important value include land,
factory building, office premises, plant & machinery, dies & patterns,
office equipments, electrical equipments, furniture & fixtures, vehicles,
computers, new office building, new office furnitures and terrace garden.
As Per Website Details
The Man
Industries (
The Man group has a track record of nearly 32 years
of successful performance from a trading firm to a professionally managed
manufacturing company. The group has strategically focused itself in the field
of infrastructure support by playing a prominent role in the SAW Pipe segment
of the Oil & natural Gas Industries, Power and Petro Chemical Industry.
The group under the leadership of Mr. R C
Mansukhani and J C Mansukhani is committed to quality products and also
treasures its employees who make it happen. Its vast organizational strength
comprises of dedicated and skilled team mates whose core competence lies in
making a good products, a better one.
The Company is fast expanding and currently coming up
with its new project in
CMT REPORT [Corruption, Money laundering & Terrorism]
The Public
Notice information has been collected from various sources including but not
limited to: The Courts,
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject
or any of its beneficial owners, controlling shareholders or senior officers as
terrorist or terrorist organization or whom notice had been received that all
financial transactions involving their assets have been blocked or convicted,
found guilty or against whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports /
filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM
as part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is
not known to have contravened any existing local laws, regulations or policies
that prohibit, restrict or otherwise affect the terms and conditions that could
be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.32 |
|
|
1 |
Rs.86.11 |
|
Euro |
1 |
Rs.57.38 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
56 |
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 |
|