MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
INDIAN HUME PIPE COMPANY LIMITED |
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Registered Office : |
Construction House, 5 Wajcahnd, Hirachand Marg, Baallard Estate,
Mumbai – 400001, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.07.1926 |
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Com. Reg. No.: |
001255 |
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CIN No.: [Company
Identification No.] |
L51500MH1926PLC001256 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPI00092B |
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Legal Form : |
Public Limited Liability Company. The Company Shares are Listed on the
Stock Exchange. |
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Line of Business : |
Manufacturing, Laying and Jointing of Pipelines of various varieties
such as RCC pipes, Steel pipes, Prestressed concrete pipes, Penstock pipes,
Bar wrapped steel cylinder pipes (BWSC), Prestressed concrete cylinder pipes
(PCCP) etc. |
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 4802488 |
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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 well established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct 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 : |
Construction House, 5 Wajcahnd, Hirachand Marg, Baallard Estate,
Mumbai – 400001, |
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Tel. No.: |
91-22-22618091 |
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Fax No.: |
91-22-22656863 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Rajas R. Doshi |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Ajit Gulabchand |
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Designation : |
Director |
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Name : |
Ms. Jyoti R. Doshi |
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Designation : |
Director |
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Name : |
Mr. Rameshwar D. Sarda |
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Designation : |
Director |
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Name : |
Mr. N. Balakrishnan |
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Designation : |
Director |
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Name : |
Ms. Anima B. Kapadia |
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Designation : |
Director |
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Name : |
Mr. Vijay Kumar Jatia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. B. M. Raul |
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Designation : |
Company Secretary |
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Name : |
Mr. P. D. Kelkar |
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Designation : |
General Manager |
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Name : |
Mr. S. K. Soman |
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Designation : |
General Manager |
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Name : |
Mr. P. R. Bhat |
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Designation : |
General Manager |
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Name : |
Mr. S. G. Khaladkar |
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Designation : |
General Manager |
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Name : |
Mr. B. S. Narkhade |
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Designation : |
Chief Auditor |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
3378577 |
69.74 |
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Directors, Director’s Relative and Associates |
15379 |
0.32 |
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General Insurance Companies |
11516 |
0.24 |
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Public Financial Institution (UTI) |
83 |
0.00 |
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Nationalised and Other Banks |
13929 |
0.29 |
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NRIs |
11625 |
0.24 |
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Public |
1413608 |
29.18 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing, Laying and Jointing of pipelines of various varieties
such as RCC pipes, Steel pipes, Prestressed concrete pipes, Penstock pipes,
Bar wrapped steel cylinder pipes (BWSC), Prestressed concrete cylinder pipes
(PCCP) etc. |
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Products : |
¨
Prestressed
Concrete Cylinder Pipe ¨
Bar Wrapped
Steel Cylinder Pipe ¨
Prestressed
Concrete Monoblock Sleeper For Railways |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Concrete pipes |
MT |
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441186 |
212723 |
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Steel pipes, Specials and Structural |
MT |
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28900 |
17162 |
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Sleepers |
MT |
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37638 |
5827 |
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Air Riffle Divn |
MT |
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22000 |
20405 |
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GENERAL INFORMATION
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Customers : |
State Government's Water Supply
Departments
City
Corporations §
§
§
Corporation §
Coimbatore Municipal Corporation §
Delhi Municipal Corporation §
State
Government's Industrial Development Corporations §
Gujarat Industrial Development Corporation §
Maharashtra Industrial Development Corporation §
Madhya Pradhesh State Industrial Development
Corporation City Industrial Development Corporations of all States Large Industries Water Supply Schemes §
Asiatic Engineering Services ( §
§
Indian Rayon & Industries Ltd, Berawal ( §
Industrial Water Supply Scheme Dhule, ( §
Ispat Profiles India Limited, Pune Cooperative Farmer's Societies - Lift Irrigation
Schemes §
Amoda Savada Lift Irrigation Scheme, Bhusawal §
Awasari Khurd Lift Irrigation Scheme Pune. §
Bhairaravanth Sahakari Pani Purvatha Yojana,
Mandi, §
Jai Kissan Lift Irrigation Scheme,
Chandori, §
Rahuri Sahakari Sakhar Karkhana Ltd. Water Supply
Scheme State Government' Irrigation Development. §
Andhra Pradhesh State Irrigation Development
Corporation, §
Canals Circle, Pellur, Ongole, Andhra Pradhesh. §
Irrigation Division, §
Minor Irrigation Division No. II ( Wambori),
Ahmednagar, §
Poona Irrigation vision, Pune. Railways for
Sleepers. §
Indian Railways §
Indian Railway Construction Co. §
Railways Institute for Technical & Economic
Services Hydro
Electric Power Projects. §
Chenani Hydro Electric Project, §
§
Idukki Hydro Electric Project, Kerala §
Koyna Hydro Electric Project, §
Kulekhani Hydro Electric |
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No. of Employees : |
1234 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. K. S. Aiyar and Company Chartered Accountants |
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Address : |
F – 7, Laxmi Mills, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
4844717 |
Equity Shares |
Rs.10/- each |
Rs.48.447
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 |
48.447 |
29.068 |
29.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1152.175 |
1099.185 |
895.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1200.622 |
1128.253 |
924.200 |
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LOAN FUNDS |
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1] Secured Loans |
287.370 |
295.985 |
161.100 |
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2] Unsecured Loans |
515.528 |
247.098 |
289.600 |
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TOTAL BORROWING |
802.898 |
543.083 |
450.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2003.520 |
1671.336 |
1374.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
282.808 |
192.682 |
147.300 |
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Capital work-in-progress |
7.890 |
1.961 |
04.200 |
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INVESTMENT |
273.881 |
486.539 |
377.800 |
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DEFERREX TAX ASSETS |
4.480 |
2.980 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1258.692 |
960.240 |
731.800 |
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Sundry Debtors |
159.080 |
160.273 |
129.900 |
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Cash & Bank Balances |
330.894 |
133.656 |
120.600 |
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Other Current Assets |
5.811 |
10.584 |
0.000 |
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Loans & Advances |
428.863 |
298.769 |
557.300 |
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Total
Current Assets |
2183.340
|
1563.522 |
1539.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
711.689 |
559.776 |
478.400 |
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Provisions |
37.190 |
16.572 |
215.600 |
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Total
Current Liabilities |
748.879 |
576.348 |
694.000 |
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Net Current Assets |
1434.461 |
987.174 |
845.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2003.520 |
1671.336 |
1374.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2560.872 |
2104.025 |
1762.600 |
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Other Income |
39.036 |
46.500 |
465.400 |
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Total Income |
2599.908 |
21505.250 |
2228.000 |
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Profit/(Loss) Before Tax |
99.426 |
98.062 |
566.2 |
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Provision for Taxation |
4.234 |
1.226 |
58.700 |
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Profit/(Loss) After Tax |
95.192 |
96.836 |
507.500 |
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Earnings in Foreign Currency : |
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Traveling and other expenses |
1.331 |
0.084 |
NA |
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Total Earnings |
1.331 |
0.084 |
NA |
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Imports : |
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Raw Materials |
Nil |
Nil |
NA |
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Stores & Spares |
Nil |
Nil |
NA |
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Capital Goods |
Nil |
3.293 |
NA |
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Total Imports |
Nil |
3.293 |
NA |
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Expenditures : |
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Cost of Goods Sold |
186.574 |
- |
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Raw Materials |
NA |
NA |
511.900 |
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Power and Fuel |
NA |
NA |
19.000 |
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Manufacturing Expenses and Other Expenses |
76.184 |
55.167 |
655.100 |
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Employees Remuneration and Welfare Expenses |
174.509 |
153.158 |
134.400 |
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Pipe Laying Expenses |
938.607 |
809.149 |
NA |
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Excise Duty and Taxes |
137.898 |
153.890 |
147.700 |
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Consumption of Raw Materials and Stores |
743.696 |
646.640 |
NA |
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Interest |
48.303 |
33.919 |
38.600 |
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Depreciation & Amortization |
31.886 |
27.377 |
20.800 |
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Office and Site Establishment |
109.825 |
118.109 |
NA |
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Total Expenditure |
2447.482 |
1997.409 |
1527.500 |
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SUMMARISED RESULTS
|
PARTICULARS |
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31.03.2007 Full Year |
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Sales
Turnover |
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|
3405.900 |
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Other
Income |
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|
53.800 |
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Total
Income |
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|
3459.700 |
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Total
Expenditure |
|
|
3149.970 |
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Operating
Profit |
|
|
310.500 |
|
Interest |
|
|
62.800 |
|
Gross
Profit |
|
|
247.700 |
|
Depreciation |
|
|
38.600 |
|
Tax |
|
|
42.700 |
|
Reported PAT |
|
|
167.100 |
|
Dividend (%) |
|
|
600.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
|
0.58 |
0.48 |
0.54 |
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Long Term Debt-Equity Ratio |
|
0.33 |
0.19 |
021 |
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Current Ratio |
|
1.80 |
1.60 |
1.41 |
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TURNOVER RATIOS |
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Fixed Assets |
|
4.60 |
4.64 |
4.75 |
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Inventory |
|
2.12 |
2.33 |
2.40 |
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Debtors |
|
14.85 |
13.63 |
16.16 |
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Interest Cover Ratio |
|
3.89 |
4.40 |
5.36 |
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Operating Profit Margin(%) |
|
10.11 |
11.02 |
12.92 |
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Profit Before Interest And Tax
Margin(%) |
|
8.77 |
9.63 |
11.74 |
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Cash Profit Margin(%) |
|
5.45 |
6.04 |
7.48 |
|
Adjusted Net Profit Margin(%) |
|
4.10 |
4.65 |
6.30 |
|
Return On Capital Employed(%) |
|
11.31 |
12.51 |
18.01 |
|
Return On Net Worth(%) |
|
8.35 |
8.96 |
14.89 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.404.75 |
|
Low |
Rs.398.50 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
¨
Free
¨
¨
Buildings
¨
Plant and Machinery and Equipment
¨
Office Equipment and Furniture
¨
Patents
¨
Vehicles
Director’s Report:
RECOGNITION BY
FORBES
During
the year, the Company was selected by Forbes Asia Magazine as one of the 200
'Best under a Billion' Companies in
In recognition of this achievement the Company was given an award by the
Forbes Magazine at the award function held on 10th November, 2005 at
FACTORIES/PROJECTS
During the period under report the Company has erected and commissioned a
new factory at Choutuppal in Andhra Pradesh to manufacture Bar Wrapped Steel
Cylinder pipes and PSC pipes. The operation of the factory has already commenced
during the year. Besides, for Varahi Hydroelectric Project a fabrication
workshop is erected at Varahi in
During the year the Company has closed down its Almatti Project in
HIGHLIGHTS OF OPERATIONS
The Company has achieved a sales turnover of Rs. 2342.100 millions as
compared to Rs.1945.900 millions for the previous year showing an increase of
Rs. 396.200 millions. The adjusted turnover (value of work at contract/sales
rate) for the year is Rs.2560.900 millions against Rs. 2104.00 millions for the
last year registering an increase of Rs.456.900 millions. The profit before tax
& prior year's charge is Rs.154.500 millions as compared to the profit
before tax of Rs.309.800 millions for the last year. The detailed highlights
relating to operations of the Company appears in the relevant section of the
Management Discussions & Analysis Report, elsewhere in this Annual Report.
The orders on hand as on the date of report are Rs. 3984.300 millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
1. INDUSTRY STRUCTURE &
DEVELOPMENT
We all know that water is a prime natural resource and a basic human need
for survival and existence. Indeed water is fundamental to our life. In view of
the vital importance of water for human & animal life, for maintaining ecological
balance and for economic and developmental activities of all kinds and
considering its increasing scarcity, the planning and management of this
resource and its optimal economical and equitable use has become a matter of
national importance.
Their Company has been in the business of manufacturing, laying and
jointing of pipelines of various varieties such as RCC pipes, Steel pipes,
Prestressed concrete pipes, Penstock pipes, Bar wrapped steel cylinder pipes
(BWSC), Prestressed concrete cylinder pipes (PCCP) etc., which provide
infrastructure facility and development for water supply project, water
treatment system, irrigation project, Hydro electric project, sanitation and
sewerage system or solid waster management system. For the past few years as a
part of nation building their Company has also been undertaking infrastructure
development programmes by way of executing on turnkey basis the combined water
supply projects i.e. undertaking the complete job of water supply from source
to distribution centres which apart from manufacturing, laying and jointing of
pipelines included construction of water pumping station, branch mains elevated
reservoirs, leading to development of complete system for water supply to
various towns and villages of India.
2. OPPORTUNITIES AND THREAT:
The population of the country is expected to reach a level of around 139
Crores by year 2025 (Source:- National Water Policy 2002) which will further
aggravate the scarcity of water to the people of
Growth of population and the expansion of economic activities inevitably
lead to increasing demands for water for diverse purpose, domestic, industrial,
agricultural, hydro-power, thermal power, navigation, recreation, etc. Domestic
and Industrial water needs have been largely concentrated in or around major
cities, however the demand in rural areas is expected to increase sharply as
the development programmes of State Governments improve the economic conditions
of the rural masses. Demand for water for hydro and thermal power generation
and for other industrial uses is also increasing substantially. As a result
water which is already scarce will become even scarer in future. This
underscores the need for the utmost efficiency in water utilisation and its
distribution. Through awareness of efficient water supply system and water
quality, they can keep their water supply adequate and provide clean & healthy
water for our children. It is their fundamental right. Hence there is a good
scope for many water supply projects coming up in near future and this auger
well for their Company.
Due to continued protection by the Government to the small scale manufacturers
who form part of unorganised sector and many of whom are not quality conscious
and also due to the subsidy in sales tax benefits which they enjoy, they are
considered as major threat/competition to their Company.
3. SEGMENT-WISE ACTIVITY:
The Company is considered a pioneer in the field of water industry, it
being in this line for last more than 79 years. The Company's presence is there
in almost all water supply related activities, viz. Urban & Rural Water Supply,
Penstock for Hydro Power Generation, Tunnel Lining, Large diameter Irrigation
pipelines, Head Works including pumping & machinery, Treatment Plants,
Overhead Tanks and other allied Civil Construction. The Company also supplies
concrete Railway sleepers to Indian Railways. The segment wise report is as
under:
(A) WATER SUPPLY AND SEWERAGE
PROJECTS:
(i) Some prominent Pipeline Project works Successfully Completed by their
Company during the year are:-
1. Combined Water Supply Scheme to Manur from TWAD Board, Tirunelveli of
the value of Rs.411.200 milliond.
2. Combined Water Supply Scheme from Junia to Bhinay in Rajasthan of the
value of Rs.254.600 millions.
3. Water Supply Schemes to Sriperumbudur from TWAD Board, Tamilnadu of
the value of Rs.132.700 millionss.
4. Sedappti Water Supply Scheme in Tamilnadu from M/s. Essar
Constructions Ltd. of the value of Rs.681 Lacs.
5. Kavali Water Supply Improvement Scheme from PHED, Andhra Pradesh of
the value of Rs.65.500 millions.
6. Sahebnagar Water Supply Scheme from HMWS & S Board,
7. Purushottapatanam-Gokavaram-Korukonda Water Supply pipeline from Sri
Sathya Sai Central Trust, Prashanthi Nilayam, Anantapur, Andhra Pradesh of the
value of Rs.29.200 millions.
8. Suryapet Water Supply and Improvement Scheme from PHED, Andhra Pradesh
of the value of Rs.24.400 millions.
9. Bellampally and Mandamarry Water Supply Improvement Scheme from PHED,
Andhra Pradesh of the value of Rs.20.500 millions.
10. Water Supply Improvement Scheme to
(ii) Company's work on many Pipeline Projects is Progressing Well and/or
Nearing Completion and the noteworthy amongst them are:-
1. Combined Water Supply Scheme to Nagapattinam from TWAD Board,
Thanjavur of the value of Rs.519.800 millions.
2. Guptha Lift Irrigation Scheme from Irrigation & CAD Department,
Nizamabad in Joint Venture with M/s. Koya & Co. Construction Pvt. Ltd.,
Bhoorathnam Construction, Taher Ali Industries and Kirloskar Brothers Ltd. of
the value of Rs.262.4 millions.
3. Trunk Sewer Mains for Bangalore Water Supply & Sewerage Board,
4. Combined Water Supply Scheme to Kayathar from TWAD Board, Kovilpatti
of the value of Rs.168.100 millions.
5. Tadipudi Lift Irrigation Scheme work from M/s. Koya & Co.
Construction Pvt. Ltd. of the value of Rs.160.000 millions.
6. From H.M.W.S.& S.Board, Hyderabad in Joint Venture with M/s. Tapi
Prestressed Products Ltd. for supply of PSC/MS water supply trunk main from
outlet of Prashashan Nagar GLSR near Film Nagar to Lingampally HLR of the value
of Rs.155.100 millions.
7. Soganuru Lift Irrigation Scheme work from Irrigation & Command
Area Development (CAD) Department, Yemmiganur, Kurnool District of the value of
Rs.153.500 millions.
8. Tadipudi Lift Irrigation Scheme from Irrigation & CAD Department,
Dowlaiswaram in Joint Venture with M/s. Nagarjuna Construction Company Ltd.,
Mather & Platt India Ltd. and SMC Infrastructure Pvt. Ltd. of the value of
Rs.127.600 millions.
9. Purander Lift Irrigation Scheme of Maharashtra Krishna Valley
Development Corporation from M/s. IVRCL Infrastructures #r Projects Ltd.,
Hyderabad of the value of Rs.127.500 millions.
10. Pulachinta Lift Irrigation Scheme work from Irrigation & CAD
Department, Yemmiganur, Kurnool District of the value of Rs.122.100 millions.
11. Nalgonda Water Supply Scheme (package - II) from Panchayat Raj
Department, Andhra Pradesh of the value of Rs.88.700 millions.
12. Nalgonda Water Supply Scheme in Andhra Pradesh from M/s. Larsen &
Toubro Ltd. of the value of Rs.84.000 millions.
13. Augmentation Water Supply Scheme to Doddaballapur from M/s. East
Coast Constructions & Industries Ltd.,
14. Uppal Sewer Main Work from HMWS & S Board,
15. Chitradurga Water Supply Scheme in Karnataka from East Coast
Constructions #r Industries India Ltd. (ECCIL) of the value of Rs.46.900
millions.
16. Pipeline for
17. RCC Pipe line for M/s. Nila Baurat Engg. Ltd.,
18. RCC pipes for Duplicate A Main (Sewer) from HMWS & S Board,
19. PSC pipes for Saiganga Lift Irrigation Scheme from Irrigation
Department, Ahmednagar of the value of Rs.27.000 millions.
20. Tadepalligudem Water Supply Improvement Scheme from Superintending
Engineer,
(iii) Some of the New Orders secured by their Company during the year
are:-
1. From TWAD Board, Western Region, Coimbatore for Combined Water Supply Scheme
to 6 town panchayats and 1399 rural habitations in Pattinam and Seerpalli in
Namakkal District of the value of Rs.672.300 millions.
This turnkey project involves execution of PSC Pipes 350 mm to 800 mm
(Total length of 87.36 Kms), DI pipes 2.8 Kms, AC pipes 123.25 Kms and PVC
Pipes 1258.77 Kms, reservoirs, electrical & mechanical works and other
components.
2. From H.M.W.S. & S.Board,
3. From Irrigation and CAD Department, Yemmiganoor for supply of PSC/MS
Pipes for Lift Irrigation Scheme under Guru Raghavendra Project namely Duddi,
Madhavaram and Basala Doddi near Mantralayam, Kurnool District of the value of
Rs.5,99.900 millions.
4. From I.V.R.C.L. Infrastructurals & Projects Limited for supply of
PSC pipes for Bisalpur Dudu Water Supply Project (Transmission - Main II) in
Rajasthan of the value of Rs.2,7.000 millions.
5. From P.H.E.D. Region,
6. From
7. From Larsen & Tourbro Ltd., Chennai for Combined Water Supply
Scheme to Coastal habitations of the value of Rs.161.500 millions.
8. From M/s. Hindustan Construction
9. From Maharashtra Krishna Khore Development Corporation for Wangana
Lift Irrigation Scheme of the value of Rs.130.000 millions.
10. From
11. From
12. From
13. From TWAD Board RWS Division, Theni for Water Supply Improvement
Scheme to C. Pudupatti and other village panchayats in Cumbum Union of the
value of Rs.73.100 millions.
14. From TWAD Board, Urban Project Division, Nagarkoil for CWSS to
Villukuri & 53 rural habitations involving PSC, HDPE and PVC pipes of the
value of Rs.72.500 millions.
15. From P.H.E.D.
16. From Maharashtra Jeevan Pradhikaran, Nasik for Malegaon Water Supply
Scheme for providing, lowering, laying and jointing of 1000 mm and 900 mm dia
Prestressed Concrete Cylinder Pipes (PCCP) and 800 mm dia BWSC pipes of the
value of Rs.55.900 millions.
17. From TWAD Board,
18. From Gomti Pollution Control Unit, U.P. Jal Nigam,
19. From H.M.W.S. & S. Board Khairathabad, Hyderabad in Joint Venture
with M/s. Bhooratnam Construction Company and M/s. Vishwa Infrastructures, for
supply of RCC Pipes from Chaderghat bridge to Saroornagar Nalah I & D Site of
the value of Rs.39.400 millions.
20. From TWAD Board, Northern Region, Vellore for Water Supply Scheme to
Arani Municipality of the value of Rs.15.600 millions.
(B) Power Projects:
During the year the Company has completed the fabrication of Calendria
and Digestors from M/s. Alfa Laval Ltd. Pune and fabrication work for Chimneys
and Vessels for M/s. Thermax Babcock & Willcox Ltd., Pune and Thermax Ltd.
(WWS), Pune of the value of Rs.22.200 millions.
The Company has received an order for fabrication and erection 3000 mm
& 4000 mm dia Penstock pipes along with the Civil work for Varahi
Hydroelectric Project of the value of Rs.326.000 millions A new fabrication
work shop is erected at Varahi in
(C) Railway Sleepers:
The Company has successfully completed the order from Ministry of
Railways for manufacture of enhanced quantity of 33,000 PSC Sleepers worth of
Rs.23.500 millions
During the year the Company has received an order for manufacture and
supply of 0.300 millions Nos. of B.G. Monoblock sleepers from the Ministry of
Railway of the value of Rs.259.500 millions
(D) Bar Wrapped Steel Cylinder (BWSC) Pies:
Many State Governments have started considering BWSC pipes in their
various water supply schemes. During the financial year 2005-06, the Company
has completed work for HMWS & S Board,
During the financial year 2005-06,
the Company has secured
1. From Panchayath Raj Engineering Department, Nalgonda for supply of
BWSC pipes for Nalgonda Rural Drinking Water Supply Project, Phase IV of the
value of Rs.87.400 millions.
2. From Public Health Department, Andhra Pradesh for supply of BWSC pipes
for Nizamabad Water Supply Improvement Scheme of the value of Rs.86.500
millions
3. From Panchayath Raj Engineering Department,
4. From Panchayat Raj Engineering Department,
5. From Panchayath Raj Engineering Department, Nizamabad for supply of
BWSC pipes for CPWS Scheme to Nyalkal and other habitations in Nizamabad
District of the value of Rs.66.100 millions
6. From Kerala Water Authority for supply of BWSC pipeline of the value
of Rs.4.700 millions for RSS to Enandimangalam in Kollam District. The supply
of BWSC pipes for this scheme has been completed by Company's Thanjavur factory
and the laying of pipes is under progress.
(E) Prestressed Concrete Cylinder
Pipes (PCCP):
Company's R & D Division has developed 'Prestressed Concrete Cylinder
Pipes' (PCCP) as per the Indian and International Standard Specifications.
During the year Company has received an order from Maharashtra Jeevan
Pradhikaran,
4. Outlook:
The Central Government has given emphasis on infrastructure development
in the country. Water supply has always been a very important infrastructure
activity for any populous location. For urban & rural water supply projects
the main customers have always been Public Health Engineering Department of
various State Government, Corporations, Municipalities, Water & Sewerage
Boards, etc. There is huge potential for water supply, sewage disposal, head
works, treatment plants, etc. In urban areas more than 40% of the population
does not have access to drinking water while in rural area more than 60-65% of
the population does not have access to drinking water.
Financial Performance with respect to Operational Performance:
For the year ended 31st March 2006, the Company has achieved an adjusted
turnover of Rs.2560.900 millions as compared to last year's turnover of
Rs.2104.0 millions and the profit before tax & before prior year's charge
is Rs.154.500 millions as against last year's profit of Rs.309.800 millions
Due to the sudden & unexpected increase in the price of the Company's
main Raw material i.e. cement, steel etc. the margins will remain under
pressure and in turn is likely to affect the profitability of the Company
during the current year.
Indian Hume Pipe Company Ltd, incorporated in 1926 is part of Walchand
Harichand group. The company manufactures Hume Pipes, Hume Steel Pipes,
Pre-stressed Concrete Pipes, Bar Wrapped Steel Cylinder Pipes, Steel Penstock
Pipes, RCC Poles, Septic Tanks, RCC Lampposts and Manhole covers. It also
undertakes contracts for erection and commissioning of water supply and sewage
schemes for various state governments and municipal corporations , fabrication
and erection of penstocks for various power projects, and executes work
pertaining to lift irrigation Schemes. In addition, it also manufactures and
supplies PSC sleepers to the Railways.
In 1979, National Rifles was amalgamated with the company. The company
exited from Srilanka due to unsatisfactory business prospects by selling its
stake in it's subsidiary Industrial Hume Pipe Company, to one of the local
directors of the Subsidiary at par value.
During the year 1999-2000, the work of fabrication and erection of
Penstocks for Koyna Hydro Electric Project Stage-IV has been completed and
commissioned. Also, the work of erection of Steel Liners in pressure shafts
line of 6 for Narmada Project also has been completed.
In 1999-2000, IHP has closed its factory at
During the year 2001-02, the company has closed its factory at Nizamabad
and projects at
The company would go for buyback of shares as the directors of the
company have recommended the proposal of buy back 25% of the paid up share
capital.
The company has completed the transaction of Development agreement in
respect of its factory land at Antop Hill, Madala, Mumbai for a total
consideration of the Rs.39 Crores and about to handover the possession of the
land to developers.
Company Details:
Subject was established in 1926 with the object of manufacturing, popularising and marketing Hume Pipes and allied products. A small mechanical workshop was also established simultaneously for production of specialised equipment required for making Reinforced Concrete Cement Pipes. Over a period of time the company has developed Prestressed Concrete Pipes (Non-Cylinder), Prestressed Concrete Cylinder Pipes, Bar Wrapped Steel Cylinder Pipes, Hume Steel Pipes, Welded Steel Penstocks, Prestressed Concrete Railway Sleepers and specialised in execution of Turnkey Water Supply Projects.
Today the Company has a well spread out and wide network of over twenty
factories and forty projects in
The Company is actively involved in the strengthening of the nation's
infrastructure in varied fields viz. Water Supply, Irrigation, Drainage, Power
Generation and Rail transport by executing numerous turnkey pipeline projects
for Water Supply, Sewerage and Hydroelectric Power Generation and supplying
millions of sleepers for railways in
The Company is also manufacturing Air
Rifles & Pistols for promoting Target Shooting Sports.
These products have already established the company as a brand leader in
From a modest beginning seven decades ago, today the company is acknowledged as
a leader of the industry with an unbeatable track record of introducing the
following products.
Products Year
of Inception
Reinforced Cement Concrete Pipe
1926
Welded Steel Pipe 1932
Steel Penstocks 1956
Prestressed Concrete Pipe (Non Cylinder) 1957
Air Rifles & Pistols
1966
Prestressed Concrete Monoblock
Sleepers for Railways 1970
Bar Wrapped Steel Cylinder Pipe 1998
Prestressed Concrete Cylinder Pipe
1999
The Company has
:
20 factories spread across
1,234 employees inclusive
of 185 engineers.
Sales Turnover of over
Rs.2300 million.
Research and Development Division:
IHP's R&D division is recognised by the Ministry of Science and Technology and The Department of Scientific & Industrial Research (Government of India). It is the endeavor of R&D to develop new products and better methods of manufacture and installation of pipelines. R&D with constant feed back from the sites and factories continually works to improve the quality and value of the products and installation.
The following are specific areas in which the Company's R&D is involved:
New Product
Development
Import Substitution
Technology Upgradation
Evaluation of Alternate
Raw-materials
Design and Improvement of the
manufacturing process and quality of products
Improvement of Designs of Plant
and Machinery
Inspection of important
Raw-materials
The Company is a member of the following
engineering and trade organizations
§ American Concrete Pipe Association
§ Indian Water Works Association
§ Bureau of Indian Standards
§ Confederation of Indian Industries
§ Builders Association
§ Indian Merchant's Chamber
§
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.40.56 |
|
|
1 |
Rs.80.81 |
|
Euro |
1 |
Rs.54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
|
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
|
60 |
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 |
|