MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SAHYADRI INDUSTRIES LIMITED |
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Registered Office : |
39 / D, Gultekdi, J. N. Marg, Pune – 411 037, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.06.1994 |
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Com. Reg. No.: |
11-78941 |
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CIN No.: [Company
Identification No.] |
U26956PN1994PTC078941 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEN00756A |
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PAN No.: [Permanent
Account No.] |
AAACN5870A |
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Legal Form : |
Private limited liability company |
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Line of Business : |
To manufacture, assemble, purchase, sell, import, export and otherwise
deal in asbestos cement products such as roofing sheets, pressure pipes, Hume
pipes, plain sheets, asbestos pipes accessories of all these items and goods
of any kind made wholly or partly of asbestos and or cement. To manufacture, assemble, purchase, sell, import, export and otherwise
deal in PVC Pipes, GI pipes. To manufacture, buy sell, import, export, use, install, hire, let on
hire, repair, assemble, deal in or trade in wind mills, solar energy systems,
batteries and all kinds of conventional and non conventional power generation
plants, stations and to carry on business of generation, storing, supply,
distributions of all kinds of energies, power including electricity. Further
to avail all benefits and/or sell and/or transfer the same with or without
consideration to third parities as per Government policy. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4500000 |
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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 records. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
39 / D, Gultekdi, Jawaharlal Nehru Marg, Pune – 411 037, |
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Tel. No.: |
91-20-22644625 / 22644626 / 22644627 |
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Fax No.: |
91-20-22658888 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory 1 : |
Gat No. 322 / 323, Village Kedgaon, Tal. Daund, Dist.
Pune, |
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Area : |
8696 Sq. Mtrs. |
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Location : |
Owned |
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Factory2: |
Plot No.39,44,46 to 49, Block D-III, MIDC Chinchwad, Pune- 411019. |
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Tel No.: |
20-27473368 |
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Sales Offices : |
Located At : Nashik, |
DIRECTORS
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Name : |
Mr. Purshottam L. Patel |
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Designation : |
Whole Time Director |
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Address : |
Shreedarshan 584/2, |
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Date of Birth/Age : |
10.10.1942 |
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Date of Appointment : |
01.04.1997 |
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Name : |
Mr. Vallabhbhai L. Patel |
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Designation : |
Managing Director |
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Address : |
Shreedarshan 584/2, |
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Date of Birth/Age : |
27.09.1953 |
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Date of Appointment : |
30.06.1994 |
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Name : |
Mr. Jayesh P. Patel |
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Designation : |
Executive Director |
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Address : |
Shreedarshan 584/2, |
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Date of Birth/Age : |
09.01.1969 |
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Date of Appointment : |
15.01.1999 |
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Name : |
Mr. Satyen V. Patel |
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Designation : |
Director Commercial |
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Address : |
Shreedarshan 584/2, |
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Date of Birth/Age : |
17.03.1977 |
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Date of Appointment : |
01.08.1998 |
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Name : |
Mr. Dinyar Kasad |
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Designation : |
Wholetime Director |
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Address : |
Plot No. 3, Sector 27, PCNT, Nigdi, Pune-411037, |
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Date of Birth/Age : |
04.04.1943 |
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Date of Appointment : |
15.01.1999 |
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Name : |
Mr. Suresh Koshti |
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Designation : |
Director |
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Address : |
5, Kanchanganga Society, Bibewadi, Pune-411.37, |
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Date of Birth/Age : |
01.11.1947 |
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Date of Appointment : |
10.06.2005 |
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Name : |
Mr. Madhav Kulkarni |
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Designation : |
Director |
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Address : |
17/2, Vandan Karvenagar, Pune-411052, |
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Date of Birth/Age : |
01.11.1944 |
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Date of Appointment : |
10.06.2005 |
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Name : |
Mr. Suresh Uddhav Joshi |
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Designation : |
Director |
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Address : |
15, Akshay, Eknath Nagar, Pune-411037, |
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Date of Birth/Age : |
01.11.1944 |
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Date of Appointment : |
10.06.2005 |
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Name : |
Mr. Chirag Pravin Shah |
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Designation : |
Director |
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Address : |
40/1, Usha Apartments, Fatima Nagar, Pune-411013, |
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Date of Birth/Age : |
02.02.1979 |
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Date of Appointment : |
30.01.2006 |
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Name : |
Mr. Jaykumar Ganpatrao Awate |
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Designation : |
Director |
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Address : |
H-16/2-22, Shri Rang Park, Parvati, Pune-411009, |
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Date of Birth/Age : |
09.10.1943 |
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Date of Appointment : |
30.01.2006 |
KEY EXECUTIVES
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Name : |
Ms. Poonam Chhatre |
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Designation : |
Company Secretary |
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Address : |
6, Ravindra Society, Padmavati, Pune-411009, |
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Date of Birth/Age : |
12.05.1976 |
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Date of Appointment : |
01.03.2005 |
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Name : |
Mr. R. Ramkumar |
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Designation : |
Company Secretary |
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Address : |
Old No.3, New No.5, |
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Name : |
Mr. Mayuresh Purshottam Vaze |
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Designation : |
Company Secretary |
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Address : |
826, Sadashiv Peth, Kanitkar Path, Pune-411030, |
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Date of Birth/Age : |
15.12.1973 |
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Date of Appointment : |
11.12.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Purshottam L Patel |
644800 |
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Mr. Vallabhbhai L Patel |
1307800 |
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Mr. Jayesh P Patel |
521300 |
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Mr. Satyen P Patel |
153400 |
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Mr. V L Patel (HUF) |
1300 |
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Mrs. Parvati V Patel |
117000 |
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Mr. Jignesh V Patel |
66300 |
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Mr. Vipul V Patel |
1300 |
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Mr. P L Patel (HUF) |
1300 |
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Mrs. Bharati P Patel |
521300 |
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Mr. Chetan P Patel |
521300 |
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Mr. Vipul Patel |
65000 |
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Mrs. Geeta Patel |
455000 |
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Mrs. Harsha Patel |
520000 |
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Mrs. Purna Patel |
520000 |
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Mrs. Shilpa Patel |
541450 |
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Mrs. Tilochana Patel |
541450 |
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Total |
6500000 |
BUSINESS DETAILS
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Line of Business : |
To manufacture, assemble, purchase, sell, import, export and otherwise
deal in asbestos cement products such as roofing sheets, pressure pipes, Hume
pipes, plain sheets, asbestos pipes accessories of all these items and goods
of any kind made wholly or partly of asbestos and or cement. To manufacture, assemble, purchase, sell, import, export and otherwise
deal in PVC Pipes, GI pipes. To manufacture, buy sell, import, export, use, install, hire, let on
hire, repair, assemble, deal in or trade in wind mills, solar energy systems,
batteries and all kinds of conventional and non conventional power generation
plants, stations and to carry on business of generation, storing, supply,
distributions of all kinds of energies, power including electricity. Further
to avail all benefits and/or sell and/or transfer the same with or without
consideration to third parities as per Government policy. |
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Products : |
v
Asbestos Sheets and Accessories v
Fibre |
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Exports : |
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Products : |
Asbestos Cement Sheets |
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Countries : |
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Imports : |
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Products : |
Fibre |
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Countries : |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C |
GENERAL INFORMATION
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No. of Employees : |
625 |
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Customers : |
End User |
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Bankers : |
v
The Cosmos Co-operative Bank Limited, Vijay
House, v
The United Western Bank Limited, v
Oriental Bank of Commerce, v The Cosmos Co-operative Bank Limited, 269/270, Shaniwar Peth, Pune-411030 v
Corporation Bank, v Indian Overseas Bank, Wonderland, Camp, Pune v
HDFC Bank, v
Central Bank of v ICICI Bank, Someshankar Chambers, Survey No. 46, Plot No.1, Kaka Halwai Estate, Opposite Citi Pride Multiplex, Pune Satara Road, Pune- 411 0090 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Parag Patwa & Associates Chartered Accountants |
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Address : |
313, |
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Parent Company : |
Poonam Roofing Products Limited Manufacturing asbestos, cement, corrugated sheets and
accessories |
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Associates/Subsidiaries : |
Swastik Asbestos Products Limited Manufacturers of AC pipes and accessories |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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11000000 |
Equity Shares |
Rs.10/- each |
Rs.110.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
9561500 |
Equity Shares |
Rs.10/- each |
Rs.95.615
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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95.615 |
102.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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229.773 |
85.525 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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325.388 |
188.025 |
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LOAN FUNDS |
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1] Secured Loans |
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536.632 |
108.645 |
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2] Unsecured Loans |
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241.044 |
115.568 |
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TOTAL BORROWING |
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777.676 |
224.213 |
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DEFERRED TAX LIABILITIES |
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33.830 |
18.141 |
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TOTAL |
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1136.894 |
430.379 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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473.290 |
142.840 |
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Capital work-in-progress |
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101.895 |
77.004 |
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INVESTMENT |
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2.463 |
26.342 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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402.376 |
63.416 |
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Sundry Debtors |
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74.782 |
58.593 |
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Cash & Bank Balances |
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132.171 |
53.901 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
369.731 |
163.467 |
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Total
Current Assets |
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979.060 |
339.377 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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285.622 |
100.046 |
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Provisions |
|
144.311 |
61.325 |
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Total
Current Liabilities |
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429.933 |
161.371 |
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Net Current Assets |
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549.127 |
178.006 |
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MISCELLANEOUS EXPENSES |
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0.807 |
0.561 |
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Preoperative Expenses |
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9.312 |
5.626 |
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TOTAL |
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1136.894 |
430.379 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
|
1111.237 |
498.065 |
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Other Income |
|
23.677 |
10.388 |
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Total Income |
|
1134.914 |
508.453 |
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Profit/(Loss) Before Tax |
|
172.465 |
70.370 |
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Provision for Taxation |
|
61.451 |
31.000 |
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Profit/(Loss) After Tax |
|
110.710 |
47.908 |
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Earnings in Foreign Currency : |
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Export Earnings |
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19.156 |
0.000 |
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Total Earnings |
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19.156 |
0.000 |
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Imports : |
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Raw Materials |
|
558.028 |
191.596 |
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Total Imports |
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558.028 |
191.596 |
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Expenditures : |
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Interest |
|
43.938 |
18.904 |
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Depreciation & Amortization |
|
47.447 |
39.706 |
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Other Expenditure |
|
400.267 |
157.853 |
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Total Expenditure |
|
491.652 |
216.463 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
|
9.75 |
9.422 |
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Net Profit Margin (PBT/Sales) |
(%) |
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15.52 |
14.13 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
11.08 |
12.02 |
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Return on Investment (ROI) (PBT/Networth) |
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0.53 |
0.37 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.71 |
2.05 |
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Current Ratio (Current Asset/Current Liability) |
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2.28 |
2.10 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
NEW SAHYADRI
INDUSTRIES LIMITED |
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Presented By |
Mr. S V Patel, Director |
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1) Date and description of instrument creating the change |
29.08.2003 Indenture of mortgage |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.144.500 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All piece and parcel of land lying and being situated at Gate No.14, Area 0, Hectare 81R and Gate No.15 Area 7, Hectare 60R at Village Kedgaon, Taluka Daund, District Pune |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest – 2% above PLR, i.e. 13.5% p.a. Margin- 25% on stock and book debts period - payable on demand The bank has parri passu charge over the assets of thecompan with other banks in consortium excluding those assets financed byu other baks/financiall institutions. |
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5) Name and Address and description of the person entitled to the charge. |
The Cosmos Co-operative Bank Limited 269/270, Shaniwar Peth, Pune-411030 Oriental Bank of Commerce Synagogue Street, Camp, Pune Corporation Bank Indian Overseas Bank Wonderland, Camp, Pune |
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6) Date and brief description of instrument modifying the charge |
Indenture of mortgage dated 29.03.2004 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Total limit extended up to Rs.192.500 millions by availing additional financial assistance for Rs.48 millions from Cosmos Co-operative Bank Limited and Indian Overseas Bank Limited, and the other banks, i.e. Corporation Bank Limited and Oriental Bank of Commerce are consenting parties to the same. |
INDUSTRY
The domestic cement industry with an installed capacity of 109.30 mn
tonnes (mn tpa) – consisting of 100.30 mn tpa in large plants and 9 mn tpa in
white and mini cement plants – and production of 83.16 mn tonnes (FY98) has a market
size of approx. Rs.140 bn. The industry is planning to add new capacity
(including expansion projects) aggregating 7.65 mn tpa in FY99, of which 5.85
mn tpa had been commissioned by November, 1998.
FY’97 was a bad year for the cement industry as prices kept declining
throughout the year due to substantial capacity build up in the last few years.
Moreover, cost of production and freight cost increased putting pressure on the
operating margins. Government has freed grades A, B, C and D of coal from price
control. Price of grade D coal, which is used in the manufacture of cement, was
raised by 25 – 30% in April 1997.
Fiscal 98 ended with a production increase of 9 percent almost same as
recorded in the preceding year. The increase was concentrated in the second
half (13 percent) as against 5 percent growth in the first half. The Indian
cement industry is passing through a glut phase as increase in the aggregate
installed capacity has outpaced growth in demand. Capacity additions over
fical94-98 was about 25 million tonnes (a increase of 33 percent). While the
overall demand growth was decent at around 9 percent, the price realisation was
very poor. Lower realisation has adversely impacted the profitability of
industry which is compounded by the increase in the input cost such as freight,
power and coal, putting a squeeze on the margins. Cement prices, which weakened
substantially during 1997-98 shown signs of recovery in Q1FY99.
BUSINESS
The company is engaged in manufacturing of asbestos, cement and corrugated
sheets.
Website Details :
Subject is a well known group in Building Material Industry based at
Pune. The group founded by Late Shri. L. B. Patel, who ventured into the trade
to timber and building materials, sensing the Urban and Rural needs for
developing shelters to people of all income groups way back in 1947.
Excellence speaks through commitment. They at Swastik, are commited to value
added sales. They give high quality products to their big list of satisfied
Customers.
Both the units of Swastik put together has got a capacity of over 10 million
sq. metres per annum at present. Swastik group is professionally managed by
Experienced and highly qualified Executives supported by an online computerized
Management Information System. Swastik sheets reach their customers through
well-planned marketing strategy. It covers many states, i.e. from Rajasthan to
Kerala of India through a network of company depots and over 1000 stockists.
Clients
They, at Swastik, are committed to value added sales. The technology at
Swastik is consistently updated, well trained project sales Division, keep
close contact with Architects, Engineers for technical co-ordinations to ensure
the benefits of products and that they reach end users.
Swastik fibre cement products are manufactured using high quality cement and
imported fibre. All the raw materials are subjected to strict quality control
tests before being used in the process. The finished products are also
subjected to all relevant tests to ensure high quality consistency.
The company also regularly exports materials to
Products
They at Swastik
manufacture corrugated sheets required for roofing purpose and also the various
accessories required for roofing purpose. Thus SWASTIK has the entire range of
roofing systems, irrespective of the type of construction and place where it is
required and whatever be the climatic conditions.
Be it a North Light Roof or a Monitor Roof or a Hip Roof, SWASTIK has anything
and everything that is required for the roofing purpose.
The roofing accessories are designed to meet the most modern aesthetic
buildings and the accessories are capable to take care of the ventilation and
natural lighting arrangements without any power requirement and work round the
clock.
Inspite of the above large range of roofing accessories, in case any client
desires to have any special roofing
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.40.93 |
|
|
1 |
Rs.80.46 |
|
Euro |
1 |
Rs.54.76 |
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 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|