MIRA
INFORM REPORT
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Report Date : |
25.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
HYDRO S AND S INDUSTRIES LIMITED |
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Registered Office : |
Dhun Building, Third Floor, # 827, Anna Salai, Chennai-600002,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.11.1983 |
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Com. Reg. No.: |
18-10438 |
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CIN No.: [Company
Identification No.] |
U25209TN1983PLC010438 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES00014A |
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PAN No.: [Permanent
Account No.] |
AAACH0931N |
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Legal Form : |
A Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Manufacturers of Polypropylene Compounds and Cable Sheathing
Compounds. |
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 800000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and progressive company. In fact, it is
a subsidiary of Hydro, U.K. General financial position is satisfactory. Trade relations are fair.
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 : |
Dhun Building, Third Floor, # 827, Anna Salai, Chennai-600002, Tamilnadu, India |
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Tel. No.: |
91-44-28521736/ 28520292 |
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Fax No.: |
91-44-28520420 |
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E-Mail : |
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Website : |
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Factory 1 : |
15C,SIPCOT IndustrialComplex, Pudukkottai:622002 |
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Factory 2 : |
RS No. 38/1, Sedarapet Village, Villiyanur Commune, Pondicherry: 605111 |
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Factory 3 : |
RS15/15,Vazhudavur Road, Kurumbapet, Pondicherry: 605 009 |
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Tel. No.: |
91-413-2272155 |
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Fax No.: |
91-413-2277430 |
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E-Mail : |
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Marketing Offices : |
Located at : v Chennai v Gurgaon v Mumbai v Pune v Hyderabad v Bangalore v Coimbatore |
DIRECTORS
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Name : |
V. Srinivasan |
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Designation : |
Chairman |
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Name : |
Murali Venkatraman |
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Designation : |
Vice-Chairman |
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Name : |
Babulal M. Varma |
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Designation : |
Director |
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Name : |
V. Thirupathi |
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Designation : |
Director |
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Name : |
Narayan Sethuramon |
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Designation : |
Managing Director |
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Name : |
T. Dulip Singh |
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Designation : |
Director |
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Name : |
Dinshaw Keku Parakh |
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Designation : |
Director |
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Name : |
S.K. Subramanyan |
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Designation : |
Director (Finance
& Administration) & Company Secretary |
KEY EXECUTIVES
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Audit Committee |
V. Thirupathi (Chairman) Babulal M. Varma (Member) Murali Venkatraman (Member) |
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Remuneration
Committee |
Babulal M. Varma (Chairman) V. Thirupathi (Member) V. Srinivasan (Member) |
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Investors
Grievances Committee |
V. Srinivasan (Chairman) Murali Venkatraman (Member) |
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Name : |
S.K. Subramanyan |
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Designation : |
Compliance Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
4270624 |
65.44 |
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Non Resident Individuals |
94137 |
1.44 |
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Bodies Corporate |
346448 |
5.31 |
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FIs/ Mutual Funds/ Banks |
200 |
-- |
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Individuals |
1814220 |
27.81 |
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Total
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6525629 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Polypropylene Compounds and Cable Sheathing
Compounds. |
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Products : |
Products POLYPROPYLENE - Profitable Solutions in Plastics Polypropylene modified by the addition of reinforcements
such as talc, chalk, mica and glass fibre has enabled it to establish itself
as a metal substitute in engineering applications. Further sophistication
involving development of coupling systems, impact modifiers and technology
for improved surface finish has more recently led to rapid growth of second
generation grades in areas traditionally dominated by other engineering
plastics such as ABS, Polyamide, modified PPO, Polyester, Acetal and
Polycarbonate.
THERMOPLASTIC
ELASTOMERS - Profitable Solutions in
Plastics HSSIL manufactures a wide
range of thermoplastic elastomers under the HYPRENE brand name. These
products are manufactured under a strategic alliance with Advanced Elastomer
System, USA (AES) the worldwide leader in engineered TPEs. AES provides the
base material and technical support to HSSIL for manufacture of TPEs in
India.
PULTRUSION
- New Generation Fibre Glass
Gratings & Profiles The use of Plastics as a
substitute for wood and metal is increasing day-by-day world over due to its
excellent chemical, electrical and mechanical properties. It is in this
context that pultruded FRP composite stands out as a material for the future.
Pultrusion is one of the innovative processing techniques for the manufacture
of FRP composites. |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Plastic Compounds |
MT |
18000 |
18000 |
12694 |
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FRP Pultruded Profiles |
Kgs |
30000 |
30000 |
18973 |
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Goods traded (High Sea) |
MT |
-- |
-- |
-- |
GENERAL
INFORMATION
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Customers : |
Customers
v Adept
Polymers Private Limited v BPL
Limited v Brite
Brothers Limited v Bharat
Industries v Champion
Plastics (India) Private Limited v Calcom
Vision Limited v English
Tool & Castings Private Limited v Fiat
India Limited v G.M.
Polymers v General
Motors Private Limited v Hyundai
Motors India Limited v Injecto
Plast Private Limited v Krishna
Maruti Limited v SL
Lumax Industries Limited v Machino
Plastics Limited v Maruti
Udyog Limited v Mutal
Mecaplast Limited v Motherson
Automotive Tech & Eng Limited v M.N.
Auto Products Limited v Omni
Matrix Private Limited v Paras
Wires Private Limited v Pentadaewha
Auto Parts Limited v Polyflex
(India) Limited v Polyplastics
v Poly
Craft v Pricol
Limited v Precision
Pipes & Profiles Company Limited v
Premium Mouldings & Pressings Private Limited v Primex
Plastics Private Limited v Rainbird
Pipe Products v Ramya
Plastics v Shaily
Engineering Plastics Limited v Shinhan
Plasto India Private Limited v Shremas
v Suparna
Plastics Private Limited v Sundaram
Auto Components Limited v SYC
India Limited v Tata
Auto Plastics Systems Limited v Tractor
And Farm Equipments Limited v TG Kirloskar
Automotive Private Limited v Toshi
Auto Industries Private Limited v Tubes
& Pipes India v Vbros
Auto Private Limited v Visteon
Automotive Limited v
Vipul - S Plastocrafts Private Limited v Bhagyalaxmi
Electroplast Private Limited v Kaveri
Pet and Polyforms Private Limited v Nilkamal
Plastics Limited v Supreme
Industries Limited v Sri
Lalitha Plastic Industries v Titan
Plast Private Limited v
V.S.N Plastics Private Limited v Aquamall
Water Solutions v Goldwyn
Limited v Indo
Matsushita Appliances Company Limited v KK
Plastics v Saba
Industries Private Limited v
Whirlpool of India Limited v Novar
India Limited v
Amararaja Batteries Limited |
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No. of Employees : |
400 |
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Bankers : |
v State Bank of
India, Chennai-600001 v Canara Bank,
Chennai-600002 |
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Facilities : |
Secured Loans
(Rs. In millions) :
Unsecured Loans
:
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P Srinivasan & Company Chartered Accountants |
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Address : |
Chennai-600017, Tamilnadu |
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Associates/Subsidiaries : |
v W S Industries
India Limited v W S
International Private Limited v Vensunar
Holdings Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
300000 |
16% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.30.000 millions |
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Total
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Rs.130.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6525629 |
Equity Shares |
Rs.10/- each |
Rs.65.626
millions |
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Forfeited share |
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Rs.0.024
millions |
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Total |
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Rs.65.281 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 |
65.281 |
65.281 |
65.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
135.643 |
118.403 |
123.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
200.924 |
183.684 |
188.900 |
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LOAN FUNDS |
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1] Secured Loans |
200.658 |
198.425 |
125.700 |
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2] Unsecured Loans |
1.882 |
1.899 |
3.100 |
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TOTAL BORROWING |
202.540 |
200.324 |
128.800 |
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DEFERRED TAX LIABILITIES |
42.112 |
40.762 |
0.000 |
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TOTAL |
445.576 |
424.770 |
317.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
165.336 |
184.436 |
130.900 |
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Capital work-in-progress |
2.859 |
0.766 |
0.000 |
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INVESTMENT |
25.987 |
2.919 |
3.500 |
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DEFERREX TAX ASSETS |
5.852 |
5.852 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
115.293
|
117.838 |
72.300 |
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Sundry Debtors |
191.517
|
177.772 |
180.200 |
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Cash & Bank Balances |
5.536
|
3.284 |
8.900 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
46.550
|
34.552 |
41.200 |
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Total
Current Assets |
358.896
|
333.446 |
302.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
94.899
|
88.177 |
104.900 |
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Provisions |
18.455
|
14.472 |
14.400 |
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Total
Current Liabilities |
113.354
|
102.649 |
119.300 |
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Net Current Assets |
245.542
|
230.797 |
183.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
445.576 |
424.770 |
317.700 |
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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 |
814.719 |
703.362 |
690.500 |
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Other Income |
21.033 |
1.700 |
3.900 |
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Total Income |
835.752 |
705.362 |
694.400 |
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Profit/(Loss) Before Tax |
31.369 |
9.153 |
34.200 |
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Provision for Taxation |
5.200 |
5.400 |
4.900 |
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Profit/(Loss) After Tax |
26.169 |
3.753 |
29.300 |
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Total Earnings |
20.847 |
7.575 |
NA |
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Imports : |
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Raw Materials |
105.216 |
162.220 |
NA |
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Capital Goods |
1.478 |
22.590 |
NA |
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Total Imports |
106.694 |
184.81 |
NA |
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Expenditures : |
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Cost of Goods Sold |
667.524 |
565.114 |
NA |
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Manufacturing Expenses |
NA |
NA |
5.700 |
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Administrative Expenses |
NA |
NA |
32.400 |
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Raw Material Consumed |
NA |
NA |
452.700 |
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Salaries, Wages, Bonus, etc. |
27.377 |
24.855 |
22.000 |
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Miscellaneous Expenses |
NA |
NA |
5.100 |
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Interest |
17.396 |
11.858 |
13.600 |
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Power & Fuel |
NA |
NA |
18.100 |
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Depreciation & Amortization |
15.889 |
13.851 |
13.200 |
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Other Expenditure |
76.196 |
80.232 |
97.400 |
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Total Expenditure |
804.382 |
695.910 |
660.200 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1st Qtr.) |
30.09.2006 (2nd
Qtr.) |
31.12.2006 (3rd
Qtr.) |
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Sales Turnover |
241.300 |
241.700 |
239.200 |
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Other Income |
5.800 |
0.600 |
1.000 |
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Total Income |
247.100 |
242.300 |
240.200 |
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Total Expenditure |
223.800 |
228.200 |
227.300 |
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Operating Profit |
23.300 |
14.100 |
12.900 |
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Interest |
5.300 |
5.200 |
5.200 |
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Gross Profit |
18.000 |
8.900 |
7.700 |
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Depreciation |
4.000 |
4.000 |
4.000 |
|
Tax |
1.400 |
1.300 |
1.100 |
|
Reported PAT |
12.600 |
3.200 |
2.200 |
200606 Quarter 1
Notes
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs
(15.126)million Consumption of Raw Materials Rs 213.334 million Staff Cost Rs
6.720 million Other Expenditure Rs 18.957 million Status of Investor Complaints
for the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 03 Complaints disposed off
during the quarter 02 Complaints unresolved at the end of the quarter 01 1. The
Company has identified Reinforced Polypropylene as the only reportable segment.
2. The above results approved by the Board of Directors at their meeting held
on July 26, 2006 is subject to Limited Review by the Auditors.
200609 Quarter 2
Notes:
EPS is Basic & Diluted Status of Investor Complaints for the quarter
ended September 30, 2006 Complaints Pending at the beginning of the quarter -
01 Complaints Received during the quarter - 02 Complaints disposed off during
the quarter - 02 Complaints unresolved at the end of the quarter - 01 1. The
Company has identified Reinforced Polypropylene as the only reportable segment.
2. The above results were subjected to Limited Review by the Auditors and
approved by the Board of Directors at their meeting held on October 31, 2006.
200612 Quarter 3
Notes
EPS is Basic and diluted. Status of Investor Complaints for the quarter
ended December 31, 2006 Complaints Pending at the beginning of the quarter 01
Complaints Received during the quarter 02 Complaints disposed off during the
quarter 03 Complaints unresolved at the end of the quarter NIl 1. The Company
has identified Reinforced Polypropylene as the only reportable segment. 2. The
above results were subjected to Limited Review by the Auditors and approved by
the Board of Directors at their meeting held on 01.02.2007. 3. The Board of
Directors have approved settling up a Manufacturing Facility near Pune.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.05 |
0.88 |
0.65 |
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Long Term Debt-Equity Ratio |
0.27 |
0.21 |
0.12 |
|
Current Ratio |
1.18 |
1.25 |
1.30 |
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TURNOVER RATIOS |
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Fixed Assets |
3.33 |
3.20 |
3.10 |
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Inventory |
8.15 |
8.66 |
11.61 |
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Debtors |
5.15 |
4.60 |
4.57 |
|
Interest Cover Ratio |
1.65 |
1.67 |
3.51 |
|
Operating Profit Margin(%) |
5.17 |
4.48 |
8.83 |
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Profit Before Interest And Tax Margin(%) |
3.49 |
2.79 |
6.92 |
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Cash Profit Margin(%) |
2.77 |
2.15 |
6.15 |
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Adjusted Net Profit Margin(%) |
1.09 |
0.46 |
4.24 |
|
Return On Capital Employed(%) |
8.43 |
6.56 |
16.19 |
|
Return On Net Worth(%) |
5.41 |
2.04 |
16.40 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.36.30 |
|
Low |
Rs.36.30 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
OPERATIONS
During the fiscal year 2005-06, the company recorded a growth of 16% in
volume and value terms as compared to the previous year. However, the primary
raw material for the company, viz. Polypropylene was subject to extreme
volatility in its pricing. The reduction in the Customs duty at the end of the
year delayed grant of price increases by OEMs which consequently impacted the
margins. The automotive sector continues to remain the primary customer segment
for your Company's products. The sale of Thermoplastic Elastomer compounds
increased appreciably as compared to the previous year. The arrangement entered
into with M/s. Tosaf Compounds Limited, Israel last year started yielding
results with contribution to both top and bottom line.
During the year under review, your Company was appointed by ExxonMobil
Petroleum & Chemical, BVBA as an authorised distributor in India for their
"Santoprene" range of Thermoplastic Elastomers. Field trials are
underway to introduce various grades of these compounds into the market.
Long term wage settlement agreements were entered into with workers at
both the plant locations.
Company’s fixed assets include Freehold Land, Buildings, Leasehold Land,
Plant and Machinery, Electrical Installations, Technical Know how, Furniture, fixtures
and Office equipments and Vehicles.
Subject, a Madras-based company, is managed by chairman V
Srinivasan, manufactures and markets polypropylene compounds and cable sheathing
compounds. In 1997-98, 1373130 equity shares were issued to Hydro Polymers, UK,
enabling them to hold 51% stake in the company.
In 1993-94, it expanded by setting up a plant at Pondicherry, to cater to the
increasing market demands. It commenced production at the Pondicherry plant in
1995. During 1996-97, it expanded its installed capacity from 6000 mt to 8500
mt. In context of the increased off-take of Polypropylene products an expasion
capacity available in this division increased to 12,000 MT during the year
1999-2000.
In 1995, the company was awarded the ISO 9002 certification from Det Norske
Veritas, London, for quality systems at its Pudukottai plant.
Website Details :
Mission
v
To be the leading Thermoplastic Compounder in India by consistently
exceeding Customer's Expectations with innovative and high quality products and
services
Vision
v
To be the market leader in supply of polymer compounds to the automotive
and domestic appliance industries in India.
v
Satisfy all their key stakeholders.
v
Become an employer of choice in the industry by deploying progressive HR
practices and providing opportunities for employees for career and personal
development.
Website
Details :
News
and Events
Hydro S & S Stall at
the PLAST INDIA EXHIBITION, New Delhi.
Technical Session on Thermoplastic Elastomers conducted at
Chennai with Advanced Elastomers Systems (AES)
Mr. Joseph Halberstam, MD,
Tosaf Compounds Limited,ISRAEL, during visit to their manufacturing location.
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 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.41.29 |
|
UK Pound |
1 |
Rs.82.30 |
|
Euro |
1 |
Rs.56.20 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|