MIRA
INFORM REPORT
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Report Date : |
20.01.2007 |
IDENTIFICATION DETAILS
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Correct Name : |
BINANI
CEMENT LIMITED |
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Registered Office : |
76, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.01.1996 |
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Com. Reg. No.: |
21-76612 |
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CIN No.: [Company
Identification No.] |
U26941WB1996PLC076612 |
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Legal Form : |
Closely
Held Public Limited Liability Company. |
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Line of Business : |
The company is engaged in manufacturing, selling and exporting of Cement and Clinker. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 : |
USD10000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Binani Industries Limited, Kolkata. It has satisfactory track. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
76, |
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Tel. No.: |
91-33-22882508
/ 09 |
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Fax No.: |
91-33-22882510 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Mercantile
Chambers, 12, J N Heredia Marg, Ballard Estate, Mumbai – 400001, |
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Tel.
No.: |
91-22-22640040/41/42/43/44 |
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Fax
No.: |
91-22-22640045 |
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E-Mail
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Website : |
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Mumbai
Office |
Feltham House, 10, J.N.
Heridia Marg, Ballard Estate, Mumbai – 400001, |
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Tel.
No.: |
91-22-22634951
/ 52 / 53 |
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Fax
No.: |
91-22-22634960 |
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E-Mail
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Area : |
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Transit
Office: |
55, |
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Tel.
No.: |
91-22-23894414
/ 23875522 / 23804453 |
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Fax
No.: |
91-22-23804452 |
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Project Office : Navi Mumbai |
901-903,
Mumbai
– 400614, |
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Tel.
No.: |
91-22-55902560
/ 65 / 66 |
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Fax
No.: |
91-22-27561771 |
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E-mail: |
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Website : |
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Marketing Office: |
Ø
703-704, Sakar II,
Ellisbridge, Ahmedabad - 380 006, Ø
A-309, Defence Colony, Ø
40, Gopal |
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Factory: |
Binanigram, Pindwara, District Sirohi – 307 025, Rajasthan |
DIRECTORS
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Name : |
Mr
Braj Binani |
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Designation : |
Chairman |
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Address : |
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Date of Birth/Age : |
Mr S
Padmakumar |
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Qualification : |
Director |
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Experience : |
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Date of Appointment : |
Mr Sushi
Bhatter |
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Director |
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Name : |
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Designation : |
Mr
arun Vishu Singnapurkar |
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Address : |
Director |
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Date of Birth/Age : |
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Qualification : |
Mr D
Sundararajan |
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Experience : |
Director
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Date of Appointment : |
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Mr
Bradley Dean Landes |
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Name : |
Nominee |
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Designation : |
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Address : |
Mr
Sanjal Vohra |
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Date of Birth/Age : |
Director |
KEY EXECUTIVES
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Name
: |
Mr. Sanjay R. Lotlikar |
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Designation
: |
Company Secretary |
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Name
: |
Mr. M. K. Chattopadhyaya |
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Designation
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Chief Financial Officer |
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Name
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Mr. S. S. Khandekar |
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Designation
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President |
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Name
: |
Mr. Deo Hirawat |
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Designation
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Joint President |
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Name
: |
Mr. S. C. Beri |
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Designation
: |
Joint President (Operations) |
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Name
: |
Mr. M. Mehta |
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Designation
: |
Vice President (Commercial) |
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Name
: |
Mr. Vinay Wadhwa |
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Designation
: |
Vice President (Marketing) |
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Name
: |
Mr K G
Sharma |
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Designation
: |
Dy.
General Manager (Marketing) |
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Name
: |
Mr. S. S. Khandekar |
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Designation
: |
President |
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Age
: |
55 Years |
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Qualification
: |
B. Tech, Diploma in operations Marketing from AIMA, Diploma in Marketing |
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Experience
: |
31 Years |
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Date
of Appointment : |
30.12.1996 |
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Previous
Employment : |
Joint Executive President, Central Cell, Vikram Cement |
BUSINESS DETAILS
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Line of Business : |
The company is engaged in manufacturing, selling and exporting of Cement and Clinker. |
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Products : |
The Generic Names of the Principal Products of the Company are as under :
Products
of the company include
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PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
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Cement (MT) |
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1650000 |
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GENERAL INFORMATION
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No. of Employees : |
Around 3000 |
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Bankers : |
Ø
Bank of Ø
Bank of Ø Allahabad Bank Ø IndusInd Bank Ø Punjab National Bank Ø The Jammu and Kashmir Bank Limited Ø The South Indian Bank Limited Ø State Bank of Travancore |
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Auditors : |
S R
Batliboi and Company Chartered
Accountants Mumbai |
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Subsidiaries : |
· Binani Zinc Limited · Goa Glass Fibre Limited · Binani Lead Limited · Binani Cement Factory LLC · BT Composite Limited |
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Associates : |
Ø Goa Glass Fibre Limited Ø Goodwill Equity and Finance Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
423899600 |
Equity Shares |
Rs. 10/- each |
Rs.
4238.996 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20310380 |
Equity
Shares |
Rs 10/- each |
Rs 2031.038 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
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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 |
2031.000 |
2170.700 |
2170.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
500.400 |
177.400 |
113.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2531.400 |
2348.100 |
2283.700 |
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LOAN FUNDS |
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1] Secured Loans |
5343.700 |
4878.600 |
4055.700 |
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2] Unsecured Loans |
118.200 |
212.500 |
127.900 |
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TOTAL BORROWING |
5461.900 |
5091.100 |
4183.600 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
7993.300 |
7439.200 |
6467.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4958.800 |
5249.600 |
5392.100 |
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Capital work-in-progress |
1000.200 |
51.600 |
50.600 |
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INVESTMENT |
0.000 |
231.600 |
232.500 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
335.500
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336.000 |
398.800 |
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Sundry Debtors |
2.300
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4.300 |
7.800 |
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Cash & Bank Balances |
1027.600
|
88.100 |
88.200 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1535.400
|
2221.800 |
856.100 |
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Total Current Assets |
2900.800
|
2650.200 |
1350.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
668.200
|
721.300 |
545.600 |
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Provisions |
198.300
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22.500 |
13.200 |
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Total Current Liabilities |
866.500
|
743.800 |
558.800 |
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Net Current Assets |
2034.300
|
1906.400 |
792.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
7993.300 |
7439.200 |
6467.300 |
PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
5888.200 |
5309.300 |
4718.500 |
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Profit/(Loss)
Before Tax |
580.800 |
70.000 |
44.800 |
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Provision
for Taxation |
51.200 |
5.500 |
3.400 |
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Profit/(Loss)
After Tax |
529.600 |
64.500 |
41.400 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
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2.16
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2.00 |
1.83 |
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Long Term Debt-Equity Ratio |
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2.16
|
1.95 |
1.79 |
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Current Ratio |
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3.45
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2.5 |
1.54 |
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TURNOVER RATIOS |
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Fixed Assets |
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0.73
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0.68 |
0.61 |
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Inventory |
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17.39
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14.40 |
11.54 |
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Debtors |
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1769.79
|
874.38 |
589.39 |
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Interest Cover Ratio |
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2.70
|
1.13 |
1.13 |
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Operating Profit Margin(%) |
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23.14
|
19.16 |
22.66 |
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Profit Before Interest And Tax
Margin(%) |
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15.80
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11.22 |
13.74 |
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Cash Profit Margin(%) |
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16.42
|
9.16 |
10.43 |
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Adjusted Net Profit Margin(%) |
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9.07
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1.22 |
1.50 |
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Return On Capital Employed(%) |
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11.96
|
8.54 |
9.93 |
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Return On Net Worth(%) |
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21.71
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2.79 |
3.17 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on
Subsequently, the name of the company was
changed to Binani Cement Private Limited on
Pursuant to the scheme of arrangement
approved by the Hon'ble High Court of Calcutta vide their order
The company commenced commercial production
from
Subject is a 100% subsidiary of Binani Industries Limited.
Binani
Cement Limited, a subsidiary of Binani Industries Limited operates an 2 Million
tonne cement plant in the
The
company enjoys largest pie in the Rajasthan Cement market and it cement is also
marketed in neighbouring
The
company’s merger plans of Munga Holdings Limited effective from
The Acme of Performance
Binani Cement Limited is the outcome of the company's diversification
strategy in the core sector.
The cement division of Binani was hived off and transferred to Binani Cement
Limited, a wholly owned subsidiary of Binani Industries Limited, on
Commissioned in July 1997 with a capacity of 2.2 MTPA, the plant is strategicaly
located at Binanigram, Pindwara, a village in Sirohi in the state of Rajasthan.
The site is advantageous for its easy accessibility to superior grade limestone
mines from the Aravalli range of Pindwara belts. Its location meets the demand
of speedy deliveries, lesser freight cost, including the ease of operations of
both importing coal and exporting cement as it is in close proximity to the
Highlights :
Binani Cement Limited has leased large areas of mines, which is
guaranteed to last for about the next 70 years at current capacity levels.
- The plant
operates at 110% capacity and utilises 100% imported coal as fuel.
- The latest
pollution control devices like reverse air bag house with fibre bags,
electrostatic precipitators and other dust collectors has been installed
at all possible dust emission points.
- The company's
in-house R & D department has made a noteworthy improvement in the
production costs, along with power and coal consumption, which has won it
a 'National Award for Energy
Conservation'.
- It maintains
the perfect balancing ratio on inventories, dispatches and sales.
- An early bird
to receive ISO 9002 and ISO 14001
from KPMG; certification received in January 1999 and October 1999
respectively
Binani Industries Limited and its subsidiaries are into the manufacture
of:
- Zinc
- Cement
- Glass Fibre
- Low Pressure Moulding Compounds
merger
The application for merger Muga Holdings Limited (MHL) with the company under sections 391 to 394 of the Companies Act, 1956 was moved on 26.09.2000 before the Honourable Calcutta High Court. The Scheme of Arrangement was approved unanimously by both the companies on 01.11.2000. The formal written order approving the merger was issued by the Honoubale Calcutta High Court on 24.01.2001 which was filed on 01.02.2001 with the Registrar of Companies by both the Companies. Pursuant to the order, the company has applied for the listing of shares of the company at the Kolkata and Delhi Stock Exchanges. The company is required to issue 22899600 fully paid shares of Rs. 10/- each aggregating to Rs.228.996 millions to the shareholders of Munga Holdings Limited which will be done on completion of receipt of consents and related formalities which are expected to be completed during the year 2001/2002 period.
The company employs around 3000 persons in its set up.
The company's fixed assets of important
value include freehold land, leasehold land, buildings (including roads), plant
& machinery, mine exploration and developments, furniture, office
equipments and other equipments and transport equipments
The company enjoys following facilities from its’ bankers :-
(Rs. in millions)
|
Secured
Loans |
31.03.2001 |
31.03.2000 |
|
Term Loans :- |
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Financial Institutions |
2187.041 |
2180.116 |
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Interest Accrued and due |
98.120 |
199.079 |
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|
2285.161 |
2379.195 |
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Banks |
678.100 |
631.284 |
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Interest accrued and due |
7.321 |
9.719 |
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|
685.421 |
641.003 |
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Non Convertible Debentures |
146.668 |
180.000 |
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Interest Accrued and due |
6.813 |
0.105 |
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|
153.481 |
180.105 |
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Working Capital Loan / Cash Credit |
135.858 |
26.502 |
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Others |
-- |
0.130 |
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|
135.858 |
3226.935 |
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Unsecured Loans :- |
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From Holding Company |
42.043 |
9.887 |
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From Others |
12.500 |
25.000 |
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Total |
54.543 |
34.887 |
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.44.21 |
|
|
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.39 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|