MIRA
INFORM REPORT
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Report Date : |
11.06.2007 |
IDENTIFICATION DETAILS
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Name : |
UNIPRODUCTS INDIA LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
2.12.1982 |
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Com. Reg. No.: |
014785 |
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CIN No.: [Company
Identification No.] |
U45201HR1982PLC014785 |
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Legal Form : |
Closely held Public Limited Liability company. The companys Shares
are listed on stock exchange. |
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Line of Business : |
Manufacturer of Automotive Components and Non-woven Fabric |
RATING & COMMENTS
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MIRAs 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 1155232 |
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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 : |
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Tel. No.: |
91-1274 249349 / 50 |
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Fax No.: |
91 1274 249347 |
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E-Mail : |
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Website : |
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Head Office : |
21, Community Centre, Friends Colony, |
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Tel. No.: |
91 11 - 6637920 / 6836278 / 6832108 / 6834890 / 6820346 |
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Fax No.: |
91 11 6820319 |
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E-Mail : |
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Administrative Office and Noida Plant : |
C 15, Sector 57, Noida 201307, Uttar Pradesh |
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Tel. No.: |
91 120 - 2585097 / 2585590 / 2587176 77 |
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Fax No.: |
91 120 2585031 |
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E-Mail : |
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Mumbai Office : |
Blue Diamond Co-Operative Housing Society, Unit No. 3 and 4, Juhu Tara
Raod, Santacruz (West), Mumbai 400049 |
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Tel. No.: |
91 22 - 56946523 / 56946524 |
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Fax No.: |
91 22 26606173 |
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E-Mail : |
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For transfer / demat / rematerialisation of shares, change of address
etc : |
MAS Services Private Limited AB 4, Safdarjung Enclave, |
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Tel. No.: |
91 11 26104142 / 26104292 |
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Fax No.: |
91 11 26181081 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Ashwan Kapur |
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Designation : |
Managing Director |
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Date of Birth/Age : |
50 Years |
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Qualification : |
Ph. D. ( |
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Experience : |
2 Years |
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Date of Appointment : |
01.08.1984 |
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Name : |
Mr. Chand Kishan Hazari |
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Designation : |
Director |
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Name : |
Mr. Govind Narain |
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Designation : |
Director |
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Name : |
Mr. V Lakshmikumaran |
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Designation : |
Director |
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Name : |
Mr. Bhaskar Dutta |
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Designation : |
Director |
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Name : |
Mr. Khushi Ram Rajora |
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Designation : |
IFCI Nominee |
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Name : |
Mr. Santosh Kumar Majumdar |
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Designation : |
SBI Noimnee |
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Name : |
Mr. M.M. Kohile |
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Designation : |
Director |
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Name : |
Mr. S. L. Kapur |
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Designation : |
Director |
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Name : |
Mr. A.P. Gandhi |
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Designation : |
Director |
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Name : |
Mr. P.R. Khanna |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Arun Seth |
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Designation : |
President |
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Date of Birth/Age : |
64 Years |
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Qualification : |
B.Sc. M.B.A. ( |
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Experience : |
42 Years |
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Date of Appointment : |
16.1..1984 |
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Name : |
Mr. Ravi Mehra |
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Designation : |
Chairman |
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Name : |
Mr. Rakesh Kumar Singh |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
536333 |
11.80 |
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Foreign promoter (OCB) |
2760216 |
61.0 |
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Persons acting in concert |
10000 |
0.02 |
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Banks / Financial institutions |
31571 |
0.7 |
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Private Corporate Bodies |
91413 |
2.0 |
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Non Resident Indians |
1431 |
0.0 |
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Indian Public |
714290 |
15.7 |
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Uniproducts ( |
380000 |
8.4 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturer of Automotive Components and Non-woven Fabric |
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Brand Names: |
Unitex |
GENERAL INFORMATION
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Customers : |
Carpet Tiles: §
M/s. Control Components India Pvt. Ltd., §
M/s. Gurdeo Dutta Construction, Mumbai §
M/s. International Crops Research Institute for
Semi Arid Tropicals, §
M/s. MLS Business Service, Chennai §
M/s. New Bridge Business Centre, Gurgaon §
M/s. PNR Securities, Laminate
Wooden Floorings : §
Ameya Builder and Developers, Mumbai §
College plus, §
EMAAR MGF §
Hotel Bapylon, §
Hotel Grand Meridan, §
IOC, Ahmedabad §
Jaypee Hotel, §
NTPC, Nioda §
Sayaji Hotel Limite, Ahmedaba §
Sony World, Chennai §
Taj Mahal Hotel, Automotive: §
Honda §
Ford §
Mahindra §
Maruti Suzuki §
Tata §
§
GM |
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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 : |
S.N. Dhawan and Company Chartered Accountants |
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Address : |
C 37, Connaught place, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4525254 |
Equity Share |
Rs.10/- each |
Rs.45.252
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 |
45.252 |
41.452 |
41.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
243.556 |
225.138 |
217.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
288.808 |
266.590 |
258.700 |
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LOAN FUNDS |
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1] Secured Loans |
363.178 |
233.094 |
238.500 |
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2] Unsecured Loans |
51.944 |
76.150 |
43.300 |
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TOTAL BORROWING |
415.122 |
309.244 |
281.800 |
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DEFERRED TAX LIABILITIES |
37.338 |
25.706 |
0.000 |
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TOTAL |
741.267 |
601.540 |
540.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
524.379 |
464.192 |
322.000 |
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Capital work-in-progress |
56.377 |
37.304 |
143.800 |
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INVESTMENT |
8.190 |
0.000 |
0.000 |
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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 |
103.221
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100.621 |
76.700 |
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Sundry Debtors |
155.198
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122.215 |
110.000 |
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Cash & Bank Balances |
10.838
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11.725 |
11.500 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
52.164
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33.152 |
54.900 |
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Total
Current Assets |
321.421
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267.713 |
253.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
144.783
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152.988 |
168.100 |
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Provisions |
25.607
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17.261 |
14.100 |
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Total
Current Liabilities |
170.390
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170.249 |
182.200 |
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Net Current Assets |
151.031
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97.464 |
70.900 |
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MISCELLANEOUS EXPENSES |
1.290 |
2.580 |
03.800 |
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TOTAL |
741.267 |
601.540 |
540.500 |
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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 |
899.569 |
686.490 |
606.000 |
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Other Income |
4.802 |
10.793 |
08.000 |
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Total Income |
904.371 |
697.283 |
614.000 |
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Profit/(Loss) Before Tax |
46.670 |
30.223 |
02.500 |
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Provision for Taxation |
16.608 |
12.738 |
1.500 |
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Profit/(Loss) After Tax |
30.062 |
17.485 |
01.000 |
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Earnings in Foreign Currency : |
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Commission Earnings |
0.000 |
0.952 |
NA |
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Total Earnings |
0.000 |
0.952 |
NA |
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Imports : |
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Raw Materials |
25.895 |
8.643 |
NA |
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Stores & Spares |
10.664 |
11.188 |
NA |
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Capital Goods |
19.304 |
26.122 |
NA |
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Others |
32.580 |
37.633 |
NA |
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Total Imports |
88.443 |
83.586 |
NA |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
649.435 |
498.676 |
36.200 |
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Administrative Expenses |
75.162 |
67.126 |
52.800 |
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Raw Material Consumed |
456.309 |
359.196 |
310.800 |
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Increase/(Decrease) in Finished Goods |
(4.378) |
7.082 |
(09.400) |
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Managerial Remuneration |
2.836 |
2.580 |
0.000 |
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Interest |
29.488 |
20.206 |
14.600 |
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Depreciation & Amortization |
39.702 |
36.936 |
28.900 |
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Total Expenditure |
72.026 |
991.802 |
43.500 |
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QUARTERLY / SUMMARISED
RESULTS
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PARTICULARS |
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31.03.2007 |
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Sales
Turnover |
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1074.500 |
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Other
Income |
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11.500 |
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Total
Income |
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1086.000 |
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Total
Expenditure |
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9.3.700 |
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Operating
Profit |
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132.300 |
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Interest |
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32.400 |
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Gross
Profit |
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99.900 |
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Depreciation |
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47.300 |
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Tax |
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06.800 |
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Reported PAT |
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34.300 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
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1.52 |
1.33 |
0.95 |
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Long
Term Debt-Equity Ratio |
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0.94 |
1.00 |
0.72 |
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Current
Ratio |
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0.88 |
0.99 |
1.08 |
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TURNOVER
RATIOS |
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Fixed
Assets |
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1.50 |
1.46 |
1.42 |
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Inventory |
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9.73 |
8.65 |
7.91 |
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Debtors |
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7.15 |
6.60 |
6.80 |
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Interest
Cover Ratio |
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2.38 |
2.47 |
1.21 |
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Operating
Profit Margin(%) |
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12.10 |
12.36 |
7.69 |
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Profit
Before Interest And Tax Margin(%) |
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8.10 |
7.55 |
2.92 |
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Cash
Profit Margin(%) |
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7.04 |
7.42 |
4.98 |
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Adjusted
Net Profit Margin(%) |
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3.04 |
2.61 |
0.21 |
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Return
On Capital Employed(%) |
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13.41 |
11.26 |
4.20 |
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Return
On Net Worth(%) |
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12.61 |
9.02 |
0.60 |
STOCK PRICES
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Face Value |
Rs.10.00 |
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High |
Rs.54.30 |
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Low |
Rs.53.15 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
- Land Freehold
- Leasehold
- Buildings
- Plant and
Machinery
- Office
Equipments
- Furniture and
Fixture
- Computer
Intangible Assets;
- Software
Directors Report:
OPERATIONS:
The
Company continues to record a strong growth in its sales all products sales
recorded a growth of 29% over the previous year. The Company's compound annual
growth rate in sales over the past 5 years has been 27%.
The pre tax profit of Rs. 46.670 millions is 54% higher than in the
previous year. Their commissioning of the state-of-the-art resin felt
manufacturing plant and the further addition of a needle loom enabled us to
diversify their product range, thereby providing us the opportunity to increase
production of value added products.
Their company continues to provide 'customer delight' through manufacture
of world class products at competitive prices. To ensure this, they focus
relentlessly on quality systems and cost reductions through VANE exercises,
energy audits and strict control on overhead costs.
FUTURE PROSPECTS:
Automotive growth is expected to even out during the fiscal 06-07,
although the long term outlook continues to be positive with a projection of 2
million cars being produced by the year 2010 or earlier. Almost all car
manufacturing units are planning capacity expansions to cater to the projected
demand. As suppliers of a diversified range of products to virtually all car
manufacturing companies in the country, their company is well placed to be a
part of this growth. They plan to focus on sale of high value added products in
order to improve their margins. The Company also expects to initiate its export
sales in the current year as auto companies across the world are looking at
DIVIDEND:
Company Directors are pleased to recommend a dividend of 20% for the year
ended 31st March, 2006.
CHANGE IN CAPITAL STRUCTURE:
Pursuant to the approval granted by the shareholders at the
Extra-ordinary General Meeting held on November 4, 2005, the Authorized Share
Capital of the Company has been increased from Rs. 60.000 millions to 120.00
millions. Further, the Board had allotted 3, 80,000 equity shares of Rs. 10/-
at face value to 'subject India Employees They fare Trust' which shares shall
be transferred to eligible employees under the subject Employees Stock Option
Plan ('the ESOP').
DELISTING OF EQUITY SHARES:
Pursuant to the shareholders approval obtained at the 21st Annual General
Meeting held on 22nd September, 2004, and in terms of the guidelines issued by
the Securities and Exchange Board of India for delisting of securities, the
Company's shares have been delisted from 'The Delhi Stock Exchange' w.e.f.
15.07.2005
JOINT VENTURE WITH JUKEN
TECHNOLOGY LIMITED,
During the year under review, their Company signed a shareholder's
agreement with Juken Technology Limited, a
MANAGEMENT
DISCUSSIONS AND ANALYSIS:
INDUSTRY STRUCTURE, DEVELOPMENT AND SEGMENT-WISE PERFORMANCE:
The Company's business is distributed bettheyen (i) OEM products which-
comprise moulded carpets, trims, roof liner fabric, NVH parts, and (ii)
Standard Products consisting of needle punch and tufted wall to wall carpets,
interlinings and laminate floorings. In the year 2005-06, the vast majority of
the Company's business was contributed to by OEM products. All products sale
for the year was Rs. 991.704 millions representing a growth of 29% over the
previous year. Given below is the segment-wise performance of the above product
categories:
OEM Products:
These recorded a sale of Rs. 868.963 millions during the year, an
increase of 35% over the previous year. This growth was achieved despite a
sales growth of only 6% in the passenger car segment. During the year, the
Company consolidated its position in the market of other products in the car
interiors. It also increased its share of business in its products range with
the various OEMs. Additionally, they continued to secure fresh business of new
model launches during the year.
Significant developments taking place in their product ranges that are
likely to benefit us are:
* Vehicles requiring superior acoustic properties are showing preference
for their new, improved products.
* Nonwoven fabrics are increasingly being preferred over plastics for
trims in the luggage compartment.
* Phenolic felt is being replaced by more eco-friendly material in the
manufacture of parcel shelves.
Standard Products:
The Company continues to focus its growth efforts on tufted carpets and
laminate floorings imported by us and have achieved beneficial results in the
area. Simultaneously, it uses its strong distribution network in promoting its
indigenous needle punch carpets.
OUTLOOK ON OPPORTUNITIES:
The Indian economy is expected to continue its robust growth of over 8%.
It is projected that, by 2010 or earlier, the production of cars in
The Company sees continuing high growth opportunities in the flooring
products being imported by it and is looking at adding to these ranges to
achieve higher market penetration
Company Details:
Promoted by Ravi Mehra, owner of Uniproducts
UIL makes a wide range of needle punch and chemically bonded non-woven
products. The company markets its products under the Unitex brand name. It is a
market leader in wall-to-wall carpets, moulded car carpets and fusible and
non-fusible interlinings. The company is the largest supplier of moulded car
carpets to Maruti Udyog.
The company obtained the ISO 9002 certification from the Bureau of Indian
Standards, in Nov.'95. The company has arrived at an understanding with M/s
Kimberly Clark a multinational company for supply of thermo bonded cover stock
to them.
The company has entered into a Technical Know-how agreement with Rieter
Automotive Systems,
Subject is a manufacturer of non-woven fabrics in
Since the commencement of its commercial production in 1986-87, the company has
grown significantly in size and turnover, possessing TS 16949 and ISO 14001
certifications. Today, subject is a manufacturer of automotive components and
non-woven fabrics in
Subject activities
are as under:
Manufacturing wall to wall carpets
Environment friendly materials like jute in the
manufacture of its products
Manufacturing of microdot fusible interlinings
Manufacturing of moulded carpets, NVH components
and heatshields for automobiles
Import of
- Machine made tufted carpets
- Laminate wooden flooring
- Carpet Tiles
The Company obtain ISO 9001, QS 9000 and ISO
14001 certifications in its field of activities
Milestones:
|
1986 - 87 |
Set up the first fully integrated nonwoven
plant in the country, in technical collaboration with Uniproducts Canada Inc. |
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1992 |
Commenced production of moulded carpets
and trims for automobiles |
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1995 |
Started production of NVH parts for
automobiles. |
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1997 |
Awarded the QS 9000 certification |
|
1998 |
Commenced production of thermobond
non-woven fabrics |
|
1999 |
Commenced production of heat shields |
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2002 |
Acquired H P Pelzer India Pvt. Limited, a
part of the worldwide Pelzer Group's presence in |
|
2003 |
Commenced production "in house resin
felt" and polyurethane foam parts for automobiles |
|
2004 |
Commenced production of high quality needle
punch roof-lining and random velour fabrics from a state-of-the-art
manufacturing line imported from |
|
2005 |
Awarded the ISO / TS 16949: 2002 |
|
2005 |
Started production of thermoplastic felts
on a state-of-the-art manufacturing facility imported from |
|
2006 |
Commissioned a state-of-the-art latexing
line imported from |
|
2006 |
Awarded the MS 9000 certification |
|
2007 |
Awarded the OHSAS 18001 certification |
|
2007 |
Commissioned a state-of-the-art manufacturing
line from |
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 Intl
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 companys 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.40.91 |
|
|
1 |
Rs.80.46 |
|
Euro |
1 |
Rs.54.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--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 |
|
58 |
This score serves as a reference to assess SCs 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 |
|