MIRA INFORM
REPORT
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Report
Date : |
28.06.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered
Office : |
703/704,’SHILPI’, 7th Floor, Near Municipal
Market, |
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Country
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
16.04.1973 |
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Com.
Reg. No.: |
04-2260 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
AHMI00091A |
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PAN
No.: [Permanent
Account No.] |
AAACI3676F |
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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 : |
Manufacturer, Importer and Exporter of Gelatine,
DI-Calcium Phosphate and Ossein |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
RATING
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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
3200000 |
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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 satisfactory
track. Directors are reported as experienced, respectable and having
satisfactory means of their own. Their trade relations are fair. General
financial position is satisfactory. Payments are usually correct and as per
commitments. Your proposed business dealings of GBP 114000 can be
considered against D/A or D/P terms. |
LOCATIONS
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Registered
Office : |
703/704,’SHILPI’, 7th Floor, Near Municipal
Market, |
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Tel.
No.: |
91-79-26469514 |
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Head
Office : |
77/78, Mittal Chambers, 228, Nariman Point, Mumbai 400021,
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Factory: |
Plot No.1A, GIDC Industrial Estate, |
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Tel.
No.: |
91-22-22021874/ 22020341 |
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Fax
No.: |
91-22-22845522 |
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E-Mail
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Website
: |
DIRECTORS
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Name : |
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Designation
: |
Director |
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Name : |
Mr. D.R.Bharucha |
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Designation
: |
Director (upto 24.04.2006) |
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Name : |
Mr. M.D. Vora |
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Designation
: |
Director |
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Name : |
Mr. K. C. Dalal |
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Designation
: |
Director |
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Name : |
Mr. H Kawasaki |
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Designation
: |
Director (From 27.04.2005) |
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Name : |
Mr. S N Pittie |
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Designation
: |
Director (From 19.07.2006) |
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Name : |
Mr. Nalin Karsondas Vissanji |
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Designation
: |
Chairman |
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Name : |
Mr. Navinchandra R Mirani |
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Designation
: |
Managing Director |
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Name : |
Mr. Viren C Mirani |
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Designation
: |
Executive Director |
KEY EXECUTIVES
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Name : |
K. P. Vagadia |
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Designation
: |
Financial Controller – cum – Company Secretary |
BUSINESS DETAILS
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Line
of Business : |
Manufacturer, Importer and Exporter of Gelatine,
DI-Calcium Phosphate and Ossein |
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Products
: |
v Photographic Gelatine v Pharmaceutical Gelatine v Edible Gelatine v Technical Gelatine |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Ossein |
MT |
|
7800 |
4929.650 |
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Di-Calcium
Phosphate |
MT |
|
16500 |
9445.000 |
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Gelatine |
MT |
|
1320 |
1040.767 |
GENERAL INFORMATION
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No. of
Employees : |
119 |
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Bankers
: |
Sumitomo Mitsui Banking Corporation, Mumbai Union Bank of |
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Facilities : |
Secured Loans : (Rs. In millions)
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Banking Relations : |
Satisfactory |
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Auditors
: |
Mahendra N. Shah and Company Chartered Accountant |
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Address: |
E-3, Capital Commercial Centre, |
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Email: |
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Associates
: |
v SCIL Capital India Limited v K V Cotton Ginning & Pressing
Company Private Limited v KVS Software Private Limited v Khimji Visram & Sons (Guj) Private
Limited v Olive Finance & Investment P. Limited v Khimji Visram & Sons
(Partnership Firm) v Khimji Visram & Sons
(Commission Dept) (Partnership Firm) v Khimji Visram & Company.
(Partnership Firm) v S.E. International |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
12500000 |
Equity Shares |
Rs. 10 Each |
Rs. 125.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
8480000 |
Equity Shares |
Rs.10 Each |
Rs. 84.800 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 |
84.800 |
84.800 |
84.800 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
728.733 |
725.142 |
723.216 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
813.533 |
809.942 |
808.016 |
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LOAN
FUNDS |
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1] Secured
Loans |
50.789 |
47.483 |
43.717 |
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2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
50.789 |
47.483 |
43.717 |
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DEFERRED
TAX LIABILITIES |
114.366 |
118.084 |
117.130 |
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TOTAL
|
978.688 |
975.509 |
968.863 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
486.914 |
505.812 |
478.380 |
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Capital work-in-progress
|
1.452 |
3.196 |
36.709 |
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INVESTMENT
|
135.220 |
141.221 |
231.575 |
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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
|
0.578 |
0.252 |
123.626 |
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Sundry Debtors
|
160.480 |
155.411 |
61.597 |
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Cash & Bank Balances
|
70.786 |
64.554 |
16.205 |
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Other Current Assets
|
17.881 |
8.189 |
1.090 |
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Loans & Advances
|
170.319 |
159.819 |
86.510 |
Total Current Assets
|
420.044 |
388.225 |
289.029 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
24.694 |
22.605 |
28.817 |
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Provisions
|
40.248 |
40.340 |
38.013 |
Total Current Liabilities
|
64.942 |
62.945 |
66.830 |
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Net
Current Assets
|
355.102 |
325.280 |
222.199 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
978.688 |
975.509 |
968.863 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales
|
573.255 |
510.925 |
479.232 |
Other Income
|
49.492 |
43.504 |
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Total
Income
|
622.747 |
554.429 |
479.232 |
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Profit/(Loss) Before Tax
|
3.681 |
9.514 |
8.506 |
Provision for Taxation
|
0.090 |
2.754 |
2.893 |
Profit/(Loss) After Tax
|
3.591 |
6.760 |
5.613 |
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Export Value
|
326.505 |
285.228 |
202.155 |
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Import Value
|
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Components-Spare parts
|
2.753 |
1.899 |
3.473 |
Capital Goods
|
9.213 |
3.309 |
26.743 |
Total
Imports
|
11.966 |
5.208 |
30.216 |
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Expenditure
|
|
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Consumption of Raw Material
|
334.101 |
305.423 |
224.155 |
Manufacturing, Administrative, Selling and Distribution
Expenses
|
243.307 |
1.985 |
211.805 |
Interest and Other Financial Charges
|
3.561 |
1.985 |
0.445 |
Depreciation
|
38.096 |
36.911 |
34.319 |
Total
Expenditure
|
619.066 |
545.240 |
470.724 |
SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 (Full year) |
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Sales Turnover |
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|
610.900 |
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Other Income |
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|
31.200 |
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Total Income |
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|
642.100 |
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Total Expenditure |
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|
608.400 |
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Operating Profit |
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|
33.700 |
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Interest |
|
|
2.600 |
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Gross Profit |
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|
31.100 |
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Depreciation |
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|
38.600 |
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Tax |
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|
2.600 |
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Reported PAT |
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|
(5.100) |
|
Dividend (%) |
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|
0.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.06 |
0.06 |
0.03 |
|
Long Term Debt-Equity Ratio |
0.06 |
0.06 |
0.03 |
|
Current Ratio |
2.24 |
1.86 |
1.73 |
|
TURNOVER RATIOS |
|
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Fixed Assets |
0.71 |
0.66 |
0.58 |
|
Inventory |
3.73 |
3.78 |
4.05 |
|
Debtors |
8.70 |
8.35 |
7.33 |
|
Interest Cover Ratio |
(1.06) |
2.05 |
4.25 |
|
Operating Profit Margin(%) |
5.82 |
7.78 |
8.18 |
|
Profit Before Interest And Tax
Margin(%) |
(0.64) |
0.78 |
0.39 |
|
Cash Profit Margin(%) |
5.63 |
7.29 |
7.93 |
|
Adjusted Net Profit Margin(%) |
(0.83) |
0.28 |
0.14 |
|
Return On Capital Employed(%) |
(0.44) |
0.48 |
0.20 |
|
Return On Net Worth(%) |
(0.60) |
0.19 |
0.07 |
LOCAL AGENCY FURTHER
INFORMATION
Operations :
During the year the Company has been able to increase the
sales of Ossein and maintain the sales of Gelatine. The margins were under
severe pressure due to increase in prices of Crushed Bones the major Raw
Material by about 8% and significant increase in the prices of Furnace
Oil by about 77%. Due to Continuous rise of prices of crude oil world over,
furnace oil prices in
As reported in preceding year, the Gelatine industry, world
over is under recession and growth is stagnant.
The continued impact of "Mad-Cow" disease and
corresponding stricter norms applied by consuming nations international market
have adversely affected the overall demand of Bovine Bone Gelatine. With all
these factors company continues to explore areas for development in newer
markets and other applications.
The impact of Avian Influenza •( bird flu) in South &
East Asian countries continued during the year and have directly resulted in
lowering sales of DCP by about 20%. Further due to outbreak of Avian Influenza in
The company has been able to increase average sale
realisation of all finished goods i.e. Ossein, DCP & Gelatine. But the
constant rising Bone prices and steep rise in fuel prices have offset the
benefits of better sale realisation of finished products.
In absolute terms rising prices of Furnace Oil alone has
eroded the gross margins by Rs.45 million considering prices prevailing in
previous year.
The directors have pleasure to inform that team from
International Inspection Agency - United States Food and Drug Administration
(USFDA) from
EXPORTS:
Overall Bovine Bone Gelatine sales & market perception
remained subdued on a global basis especially for food application which is
facing severe resistance. Photographic Gelatine also continues to reel under the
severe competition from the increasing sales of digital cameras & thereby
reduced film sales.
In spite of the above, the company achieved a higher
turnover due to expansion in export sales of Ossein which was attributed to a
new sales market in
during the period 2006-07 barring any unforeseen circumstances.
During September-05 the company was audited by the USFDA
(United States Food & Drug Administration) and the audit was completed
satisfactorily which is likely to result favorably for the export of gelatine
to
DOMESTIC:
Gelatine domestically remains stable. However, prices remain
under pressure due to increased supply. Gelatine growth within
DCP witnessed better sales volumes as well as realization
until Feb-2006 based on the overall growth of the Indian Poultry Industry. In
Feb-2006 India fell victim to the Avian Influenza which significantly affected sales
& volumes and the repercussions would be known during 2006-07.
OPPORTUNITIES:
In spite of all the above factors the company has been able
to increase sales of Photographic Gelatine over the previous year and it is
hoped that it would continue the trend during this year.
Research evidencing the safety of Bovine Bone Gelatine is
under way & the results are expected to be revealed soon. It is felt such
evidence would be positive and lead to the increased use of Bovine Bone Gelatine
for food applications.
OUTLOOK:
Considering the successful audits from Government
authorities as well as major customers which their company has passed in the
year 05-06, the same expected to result in to increased sales to better markets
resulting into increased realization.
FINANCIAL AND
OPERATIONAL PERFORMANCE :-
Turnover increased by 12% to Rs. 573.300 Millions during the
year ended 31st March 2006 as compared to Rs.510.900 Millions during the
previous year.
Gross Profit (earning before Depreciation and Taxes) for the
Current year was Rs. 41.800 Millions as against Rs. 46.400 Millions in the
previous year.
No dividend has been declared for the year ended 31st March,
2006.
FIXED ASSETS
The companies fixed assets includes Land (Leasehold), Land
(Freehold), Buildings, Plant and Machinery, Furniture, Fittings and Office
Equipments, Laboratory Equipments, Vehicles, Techincal Know How.
HISTORY
Incorporated in the early 1970’s, India Gelatine was
promoted by the Mirani family, Nichimen Corporation, and Konica Gelatine, both
of japan.
The company manufactures ossein and dicalcium phosphate.
Ossein is the basic raw material used for the production of photographic
gelatine, which in turn is used for producing photo films. Dicalcium phosphate
is a vital ingrdient for animal feeds. The entire producton of ossien is sold
to the japenese collaborators. 30% of the dicalcium phophate is exported to
The company’s new gelatine project at Vapi is nearing
completion. Major erection of plant and machinery including piping of all the
quipments is in progress. It hopes to start production around August 1996. The
company made a preferencial allotment to the promoters at a premium of Rs. 615
per share.
Company has awarded Top Export Award/Excellence Award for
the 21st Year in succession in recognition of its export achivement.
Gelatine produced by company is gradually getting well accepted by customer in
domestic market and Company taking very much efforts to higher specification as
regards quality .
Website Details :
PROFILE
Always sensitive to the march & needs of time, the 130 year old
multifaceted KVS group branched into the multi-potential product subject Established
in 1973, IGCL started its production in 1975 with the technical collaboration
& know-how from M/s. Konica Gelatine Corporation,
In the year 1975, the company started its production of
Ossein, the raw material for subject, which was exported to
GELATINE
Subject, known for centuries for its high nutritional value
is a highly versatile product. Compared to all the usual hydrocolloids, subject
offers a unique combination of neutral taste, easy digestibility, brilliant
clarity & reversible setting capacity.
Accepted as a foodstuff & not just as a food additive,
this biological product consists almost all 18 amino acids essential for human
nutrition.
PROPERTIES
Gelation &
Water-binding
Gelatine gel has excellent elasticity & smoothness. It
is also infinitely thermo-reversible. The gel melts slowly, hence it is a boon
to icecream industries with its superior melt-down properties.
Foaming
The excellent foaming abilities of Gelatine & film
forming properties are useful in the manufacture of marshmallows &
icecreams.
Emulsifying
The oil-soluble sections of the protein chain of Gelatine
has the ability to emulsify water in oils. This is highly beneficial to the dairy
industry.
Colloidal protection
against crystallization
As Gelatine is a colloid, it prevents crystallization. This
property helps the ice-cream texture by preventing it from becoming grainy.
Various uses of
Gelatine
With every new research, Gelatine is found to be of
increasing use in modern times. Today, it has changed the face of food,
pharmaceutical & photographic Industries
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.40.75 |
|
|
1 |
Rs.81.63 |
|
Euro |
1 |
Rs.54.79 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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 |
|