MIRA
INFORM REPORT
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Report Date : |
07.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHRI NATARAJ CERAMIC AND CHEMICAL INDUSTRIES LIMITED |
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Registered Office : |
Dalmiapuram, P. O. Kallakudi – 621651, District Tiruchirapalli, Tamil
Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.06.1973 |
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Com. Reg. No.: |
18-6372 |
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CIN No.: [Company
Identification No.] |
L24297TN1973PLC006372 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES12048B |
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Legal Form : |
Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of Bricks & Pavers, Refractory and Insulation Materials,
Miscellaneous Machine Tools, Temperature Sensors and Indicators and
Calibrators. |
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 650000 |
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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 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/ Factory : |
Dalmiapuram, P. O. Kallakudi – 621651, District Tiruchirapalli, Tamil
Nadu, India |
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Tel. No.: |
91-431-2467761 |
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E-mail : |
dalmiarf@eth.net |
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Head Office : |
4, Scindia House, Connaught Place, New Delhi – 110001, India |
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Tel. No.: |
91-11-23324136 |
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Factory 2 : |
Khambalia – 361305, District Jamnagar, Gujarat |
DIRECTORS
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Name : |
Mr. N. Gopalaswamy |
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Designation : |
Director |
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Name : |
Mr. R. L. Bhatia |
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Designation : |
Director |
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Name : |
Mr. P. D. Mathur |
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Designation : |
Director |
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Name : |
Mr. Barunjee |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Stoneware Pipes & Fittings, Bricks & Pavers,
Refractory and Insulation Materials, Miscellaneous Machine Tools, Temperature
Sensors and Indicators and Calibrators. |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Refractories |
MT |
61000 |
52443 |
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Stoneware |
MT |
12192 |
590 |
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Calcined Bauxite |
MT |
24000 |
22622 |
GENERAL
INFORMATION
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Bankers : |
UTI Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. S. Kothari Mehta & Company Chartered Accountants |
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Subsidiaries : |
Shri Chamundeswari Minerals Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2500000 |
Equity Shares |
Rs. 10/- each |
Rs. 25.000 millions |
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500000 |
Unclassified Shares |
Rs. 10/- each |
Rs. 5.000 millions |
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TOTAL |
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Rs. 30.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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800000 |
Equity Shares |
Rs. 10/-
each |
Rs. 8.000
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 |
8.000 |
7.997 |
8.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
158.120 |
122.058 |
95.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
166.120 |
130.055 |
103.200 |
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LOAN FUNDS |
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1] Secured Loans |
21.666 |
28.398 |
1.600 |
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2] Unsecured Loans |
12.500 |
14.801 |
17.100 |
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TOTAL BORROWING |
34.166 |
43.199 |
18.700 |
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DEFERRED TAX LIABILITIES |
12.270 |
12.170 |
0.000 |
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TOTAL |
212.556 |
185.424 |
121.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
71.062 |
75.462 |
59.900 |
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Capital work-in-progress |
0.015 |
0.085 |
0.0000 |
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INVESTMENT |
36.003 |
25.003 |
9.500 |
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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 |
84.531 |
69.589 |
55.300 |
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Sundry Debtors |
35.089 |
44.474 |
30.800 |
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Cash & Bank Balances |
4.446 |
2.428 |
12.600 |
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Other Current Assets |
1.131 |
1.405 |
0.000 |
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Loans & Advances |
17.039 |
13.399 |
16.400 |
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Total
Current Assets |
142.236 |
131.295 |
115.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities & Provisions |
36.760 |
46.421 |
62.600 |
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Total
Current Liabilities |
36.760 |
46.421 |
62.600 |
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Net Current Assets |
105.476 |
84.874 |
52.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
212.556 |
185.424 |
121.900 |
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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 |
375.813 |
366.654 |
324.900 |
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Other Income |
9.241 |
8.310 |
9.800 |
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Semi – Finished Goods / Stock Adjustment |
10.693 |
14.340 |
[11.400] |
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Total Income |
395.747 |
389.304 |
323.300 |
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Profit/(Loss) Before Tax |
55.929 |
40.837 |
20.600 |
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Provision for Taxation |
19.867 |
14.000 |
8.800 |
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Profit/(Loss) After Tax |
36.062 |
26.837 |
11.800 |
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Imports : |
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Raw Materials |
19.138 |
9.688 |
N.A. |
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Stores & Spares |
0.000 |
0.000 |
N.A. |
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Capital Goods |
0.000 |
0.326 |
N.A. |
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Others |
0.000 |
0.000 |
N.A. |
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Total Imports |
19.138 |
10.014 |
N.A. |
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Expenditures : |
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Raw Material Consumed |
122.616 |
127.433 |
99.500 |
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Excise Duty |
0.000 |
0.000 |
49.200 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
30.700 |
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Selling and Administration Expenses |
0.000 |
0.000 |
13.700 |
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Interest & Financial Charges |
0.000 |
0.000 |
0.700 |
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Consumption of stores and spares parts |
15.193 |
15.667 |
0.000 |
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Salaries, Wages, Bonus, etc. |
57.071 |
55.309 |
49.600 |
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Power & Fuel |
49.797 |
61.828 |
42.400 |
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Depreciation & Amortization |
8.401 |
6.998 |
7.300 |
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Other Expenditure |
86.740 |
81.232 |
9.600 |
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Total Expenditure |
339.818 |
348.467 |
302.700 |
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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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PAT / Total Income |
(%) |
9.11
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6.89 |
3.64 |
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Net Profit Margin (PBT/Sales) |
(%) |
14.13
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10.48 |
6.37 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
26.22
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19.75 |
11.77 |
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Return on Investment (ROI) (PBT/Networth) |
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0.33
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0.31 |
0.19 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.42
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0.68 |
0.78 |
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Current Ratio (Current Asset/Current Liability) |
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3.86
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2.82 |
1.83 |
STOCK PRICES
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Face Value |
Rs.10/- each |
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High |
Rs.80.00/- |
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Low |
Rs.80.00/- |
LOCAL AGENCY
FURTHER INFORMATION
History :
Shri Nataraj Ceramic & Chemical Industries (SNCCIL) was
incorporated in 1973 and belongs to the Dalmia group. It is engaged in the
refractories business with plants located at Khambalia in Gujarat and Punakulam
and Dalmiapuram in Tamilnadu. It has entered into a technical collaboration
with A Fleicshmann, Germany. In March, 1994, it expanded the refractory-making
capacity of its Khambalia plant to 28,000 tpa. Keeping in view the bleak
prospects, most assets of Punakulam works were disposed off at the best
possible price except for the land and building.
The market for high-aluminium refractories, the main product of the company, is
getting more and more competitive. The company is taking steps to upgrade the
manufacturing process and also develop new products which will give better
performances. It also manufactures stoneware. Shri Nataraj Investment and Shri
Chamundeshwari Minerals are subsidiaries of SNCCIL. The company has received
the ISO 9002 certification for its Dalmiapuram unit and is the first in the
refractory industry to get this certificate.
During 1997-98, the ISO 9002 accredition for the quality system with respect to
manufacture of all refractory products at its Dalmiapuram Works has been renewed
further for a period of three years.
The company is planning to introduce high performance refractories for Tunnel
Cars in Ceramic Industry.
OPERATIONS AND FUTURE OUTLOOK
The operation of the company remained satisfactory during the year. However, due to continued increase in input
costs and recent increase in petroleum prices, the margins of the company are
likely to come under pressure which could adversely affect the profitability of
the company in future.
Dalmiapuram Works :
The production of refractories at this unit, continues to be carried out
as per the agreement with Dalmia Refractories.
Due to lack of demand, Production and Sales of Stoneware Pipes was 590
MT and 456 MT respectively during 2005-06 as compared to 4056 MT and 3784 MT
last year.
Khambalia Works :
The production and dispatches details of refractories are as under : -
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2005-06 |
2004-05 |
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Production [MT] |
23238 |
26084 |
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Despatches [MT] |
22818 |
24832 |
Fixed Assets :
Land, Buildings, Plant & Machinery,
Furniture & Fixtures, Library and Vehicles.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.44.44 |
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UK Pound |
1 |
Rs.85.89 |
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Euro |
1 |
Rs.58.54 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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