MIRA
INFORM REPORT
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Report Date : |
02.10.2007 |
IDENTIFICATION DETAILS
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Name : |
ASSAM CARBON PRODUCTS LIMITED |
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Registered Office : |
Birkuchi, Guwahati – 781026, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.04.1963 |
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Com. Reg. No.: |
02-1206 |
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CIN No.: [Company
Identification No.] |
L23101AS1963PLC001206 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SHLA00244G |
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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 : |
Manufacturing and Marketing a variety of Carbon Products, which
include Carbon Brushes (Electrical), Carbon Blocks and Carbon Components,
etc. |
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 760400 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is well established company having satisfactory track. Director are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Financial positions is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions |
LOCATIONS
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Registered Office : |
Birkuchi, Guwahati – 781026, |
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Tel. No.: |
91-361-2640262/741 /2427651/2 |
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Fax No.: |
91-361-2640368 / 2422257 |
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E-Mail : |
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Website : |
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Corporate Office : |
Everest House, 46C, |
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Tel. No.: |
91-33-22887651/2 |
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Fax No.: |
91-33-22882258 |
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E-Mail : |
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Factory: |
·
Copper Powder Plant, ·
Materials & Brush Finishing, Patancheru, ·
Engineered Carbon Finishing, Taloja, |
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Branches: |
407, Meghdoot 94, Nehru
place, Tel No: 91-11-6431622 Fax No:91-11-6224011 Email: meclacpl@satyam.net.in Everest House, 8th
floor, 46/C, Tel No: 91-33-2887651/852 Fax No: 91-33-2882257 Email: www.pumpsourceindia.com |
DIRECTORS
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Name : |
Mr. N. G. Howard |
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Designation : |
Director |
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Name : |
Mr. Andrew Riley |
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Designation : |
Director |
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Date of Appointment : |
3rd December, 2003 |
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Name : |
Mr. S. G. Jones |
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Designation : |
Director |
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Date of Appointment : |
3rd December, 2003 |
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Name : |
Mr. Rodger F. New |
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Designation : |
Director |
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Name : |
Mrs. Anita Himatsingka |
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Designation : |
Director |
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Date of Appointment : |
20th September, 2003 |
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Name : |
Mr. M. K. Das |
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Designation : |
Nominee of A.I.D.C. Ltd |
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Name : |
Mr. D. Ray |
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Designation : |
Managing Director |
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Date of Birth/Age : |
54 years |
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Qualification : |
B. Tech (Hons.) –
Mech. Engineering Diploma in Maintenance Mgt. |
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Last Employment : |
European Fine
Blanking, |
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Date of Appointment : |
05/05/2003 |
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Name : |
Mr. Prabhat C. Goenka, |
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Designation : |
Executive Director |
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Name : |
Mr. R A Marno |
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Designation : |
Additional Director |
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Name : |
Mr. Jonathan Harvey |
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Designation : |
Director |
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Name : |
Mr. David Parr |
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Designation : |
Director |
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Name : |
Mr. H K Sharma |
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Designation : |
Nominee |
KEY EXECUTIVES
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Name : |
Mr. R. K. Agarwal |
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Designation : |
CFO & Secretary |
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Name : |
Mr. R. Himatsingka |
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Designation : |
Chairman |
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Name : |
Mr. P C Goenka |
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Designation : |
Chairman |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing a variety of Carbon Products, which include Carbon Brushes (Electrical), Carbon Blocks and Carbon Components, etc. |
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Products : |
· Electrical Carbon Brushes · Machines and Special Carbon Components · EG and RB Carbon Blocks ·
Carbon Thrust Pads and Axial
Bearings ·
Carbon Gland Rings ·
Carbon Vanes ·
Steam Joints ·
Carbon and Graphite Bearings · Sealing rings |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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EG, HC, NG and RB Carbon Blocks |
Kg. |
120000 |
113853 |
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MG and SG Carbon Blocks |
Kg. |
90000 |
20805 |
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Electrical Carbon Brushes |
No. |
1808000 |
2508599 |
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Mechanical and Special Carbon Blocks and Blanks |
Kg. |
30000 |
52042 |
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Machined and Special Carbon Components |
No. |
700000 |
3328723 |
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ISO-Graphite Components |
No. |
36000 |
122302 |
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Copper Moulding and Linking Powder |
Kg. |
45000 |
11500 |
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NH Coke |
Kg. |
130000 |
84277 |
GENERAL INFORMATION
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No. of Employees : |
250 |
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Bankers : |
· Standard Chartered Bank ·
State Bank of Address; · Andhra Bank Address: |
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Banking Relations
: |
Good |
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Auditors : |
Price Waterhouse Chartered Accountants |
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Fellow Subsidiaries : |
Morganite Carbon Limited |
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Associates : |
Ř
Morgan Crucible Company Plc, Ř Morgan Carbon Limited |
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Holding Company : |
Morgan Crucible Co. pic |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity shares |
Rs.10/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2830 |
Equity shares |
Rs.10/- each |
Rs. 0.028
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
28.300 |
28.300 |
28.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
161.800 |
123.400 |
106.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
190.100 |
151.700 |
135.100 |
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LOAN FUNDS |
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1] Secured Loans |
120.100 |
159.500 |
59.100 |
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2] Unsecured Loans |
17.100 |
15.600 |
16.500 |
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TOTAL BORROWING |
137.200 |
175.100 |
75.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
327.300 |
326.800 |
210.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
187.100 |
196.200 |
49.400 |
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Capital work-in-progress |
6.600 |
5.300 |
49.600 |
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INVESTMENT |
0.000 |
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 |
80.600
|
85.000 |
71.300 |
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Sundry Debtors |
167.000
|
120.400 |
126.000 |
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Cash & Bank Balances |
4.900
|
5.500 |
7.100 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
157.500
|
150.700 |
18.400 |
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Total
Current Assets |
410.000
|
361.600 |
222.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
141.400
|
108.800 |
90.100 |
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Provisions |
135.000
|
127.500 |
21.000 |
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Total
Current Liabilities |
276.400
|
236.300 |
111.100 |
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Net Current Assets |
133.600
|
125.300 |
111.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
327.300 |
326.800 |
210.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
477.100 |
416.300 |
445.800 |
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Other Income |
1.400 |
5.100 |
2.200 |
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Stock Adjustment |
1.800 |
12.600 |
[19.400] |
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Total Income |
480.300 |
434.000 |
428.600 |
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Profit/(Loss) Before Tax |
43.800 |
26.800 |
57.200 |
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Provision for Taxation |
5.400 |
10.200 |
20.700 |
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Profit/(Loss) After Tax |
38.400 |
16.600 |
36.500 |
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Expenditures : |
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Excise Duty |
28.200 |
49.300 |
53.000 |
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Power and Fuel |
42.600 |
37.900 |
31.200 |
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Other Manufacturing Expenses |
31.000 |
35.000 |
26.400 |
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Employee Cost |
113.500 |
111.900 |
110.000 |
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Selling Administration Expenses |
51.100 |
55.900 |
46.700 |
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Interest and Financial charges |
14.200 |
7.700 |
3.500 |
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Depreciation |
13.000 |
6.300 |
5.100 |
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Miscellaneous Expenses |
29.100 |
7.300 |
16.200 |
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Total Expenditure |
293.600 |
304.000 |
275.900 |
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QUARTERLY RESULTS
|
Year |
30.06.2007 |
|
Type |
1st Quarter |
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Sales Turnover |
88.700 |
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Other Income |
0.000 |
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Total Income |
88.700 |
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Total Expenditure |
84.100 |
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Operating Profit |
4.600 |
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Interest |
3.000 |
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Gross Profit |
1.600 |
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Depreciation |
3.300 |
|
Tax |
0.500 |
|
Reported PAT |
[-2.200] |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.91 |
0.87 |
0.51 |
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Long Term Debt-Equity Ratio |
0.47 |
0.45 |
0.13 |
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Current Ratio |
1.16 |
1.25 |
1.42 |
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TURNOVER RATIOS |
|||
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Fixed Assets |
1.63 |
1.93 |
3.26 |
|
Inventory |
5.76 |
5.33 |
5.62 |
|
Debtors |
3.32 |
3.38 |
3.92 |
|
Interest Cover Ratio |
5.33 |
4.48 |
17.34 |
|
Operating Profit Margin(%) |
18.59 |
9.80 |
14.76 |
|
Profit Before Interest And Tax
Margin(%) |
15.87 |
8.29 |
13.62 |
|
Cash Profit Margin(%) |
13.85 |
5.50 |
9.33 |
|
Adjusted Net Profit Margin(%) |
11.13 |
3.99 |
8.19 |
|
Return On Capital Employed(%) |
23.15 |
12.84 |
32.70 |
|
Return On Net Worth(%) |
31.07 |
11.58 |
29.61 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company, which is an associate of MNC company Morgan Crucible Company U.K., which holds controlling stake of 51% of the company, engaged in the business of Manufacturing and Marketing a variety of Carbon Products which include Carbon brushes (electrical), Carbon Blocks, Carbon Components, etc.
The company set up a new plant at Patancheru,
Under Morgan’s globalisation programme, further sample
supplies were ordered by its factories in the
In 2000-01, the company has obtained ISO 9002 certification
from TUV Management Service,
In spite of some slow down in industry and failure of monsoon in certain parts of the country, the economy is growth oriented and moving in the right direction. Cement, Steel and Commercial Vehicles, amongst several other sectors have started looking up. All these would bring in increased business opportunity for the company during the current financial year.
Development of new generation grade of carbon material for both Electrical and Engineered Carbon by the company will further strengthen the business and increase market share specially in the fast growing Engineered Carbon Division.
OPERATIONS:
During the year under review, Sales of the Company stood at
Rs.416.257 millions and Net Profit at Rs. 16.633 millions, compared to
Rs.445.826 millions and 36.447 millions, respectively, during the previous
Financial Year 2004-05.
Net Sales was down mainly on account of a significant loss in sales of a
premium product of the Company due to unforeseen quality concerns. This also
caused fall in profit substantially. Net profit was also down On account of
increase in interest cost by Rs.3.907 millions and depreciation by Rs. 1.224
millions, on account of New Projects and Expansion Project undertaken by the
Company.
However, effective steps have been taken for addressing the said quality
concern, the positive impact of which on the performance of the Company will be
seen in the current year and onwards. Further, efforts towards cost reduction
together with improvement in productivity of the other products are also being
made for an improvement in the overall performance of the Company.
Capacity Expansion at Guwahati Unit was completed and commercial production
started from 1st February, 2006. Augmentation of Captive Power generation at
Guwahati during the year under review and debottlenecking exercise shall
contribute to the Sales and Profit from the current year onwards.
PROSPECTS/FUTURE
OUTLOOK:
The global economy recorded strong growth in 2005 in spite
of record high international crude oil prices. The performance of the global
economy is mainly driven by continued strong demand from the
However,
firming up of inflationary expectations, the probability of disorderly and
rapid adjustment of large and growing current account imbalances and the recent
volatility and re-pricing of risks in international financial markets are key
downsides to global growth prospects.
Indian
Economy also continued to maintain its recent phase of high growth in 2005-06
led by strong performance of industry and services sectors, and recorded an
average growth of over eight-per cent for the last three-years.
In-spite
of continued pressure from international crude oil prices, the inflation level
was lower than projected. The strong macroeconomic performance during 2005-06
was followed by robust export growth, sustained non-oil import demand,
continued fiscal consolidation, high domestic savings, buoyant investment
activity and acceleration in credit growth. In order to maintain and further
improve the current growth momentum various macroeconomic policy measures are
being initiated by the Government.
Government's
liberalised FDI policy coupled with thrust on infrastructure development,
Globalisation of Indian Capital Market, increase in per capita income with
resultant high per capita consumption and changing habits and tastes has made
India as one of the fastest growing global economy and on account of the same
its growth trend as witnessed in the previous three years is expected to be
maintained in the coming years too.
Under
this positive and growth oriented Economic and Industrial Scenario, the
management of your Company, with the continued technical support from its
Foreign Principals is confident about Company's improved performance in the
future.
Future
Plan of Action
The Company has embarked upon an expansion and modernization programme, wherein, not only it shall achieve enhanced capacity in all product segments, but also modernize old processes and introduce new technology and new products.
The company’s fixed assets of important value include Land and Development (Freehold), Buildings, Plant and Machinery, Furniture, Office and Service Equipment and Transport Vehicles
Trade reference:
Ř M. M. Associates
Ř Nana Udyog
Ř Viprasone Electro N Carbon
Ř Vidyut Carbon Products (Private) Limited
Ř Emic Motors Private Limited
Generic Names Of Three Principal Products/Services Of The Company
(as per monetary terms)
Item Code No : 854520-02 Carbon Blocks
(ITC Code)
Item Code No. : 854520-01 Carbon brushes
(ITC Code)
Item Code No. : 848590-00 Mechanical and Special
(ITC
Code)
Carbon Blocks and Blanks
Assam Carbon Products, which is an associate of MNC company Morgan Crucible Company UK, which holds ca controlling stake of 51 % of Assam carbon, engaged in the business of manufacturing and marketing a variety of carbon products which include carbon brushes (electrical), carbon blocks, carbon components, etc.
ACPL set up a new plant at Patancheru, Andhra Pradesh, to manufacture
metal and silver impregnated materials and components. The company has
technical collaborations with Mitsubishi Heavy Industries, Japan, Mitsubishi
Corporation,
Under Morgan's globalisation programme, further sample supplies were ordered by
its factories in the
In 2000-01, the company has obtained ISO 9002 certification from TUV
Management Service,
Inspite of some slow down in industry and failure of monsoon in certain
parts of the country,the economy is growth oriented and moving in the right
direction. Cement,Steel and commercial vehicles,amongst several other sectors
have started looking up. All these would bring in increased business
opportunity for the company during the current financial year.
Development of new generation grade of carbon material for both
Electrical and Engineered Carbon by the company will further strengthen the
business and increase market share specially in the fast growing Engineered
Carbon Division.
WEBSITE DETAILS:
Assam Carbon Products limited , Part of One
billion Pound, Morgan Plc,
Their
range include Axial bushes and thrust pad assembly for submersible pump ,
Morganite grade carbon brushes , Pantograph, SIG Contact and finished Carbon
Seals for mechanical seals. Various other products like Vane, Gland Ring, Steam
Joints, Bush Bearings etc. in resin and metal impregnated grades of Carbon and
Graphite
Performance of Submersible Pumps is Mainly depends on thrust pad assembly and axial bushes. A careful selection of materials of construction of contact surface reduces starting current and improves efficiency of Motor. Worldwide carbon is best suited material for thrust pad and axial bushes. Carbon's tribological properties make it best alternative over other materials like ferro asbestos, polyamide, PTFE ,
LTB etc. Efficiency
of the pumps improves by 5 to 7% which qualifies a submersible pump
manufacturer to go for IS standard. IS 8034 and IS 9283 demands for more than
60% efficiency.
Their CY10C resin impregnated grade is worldwide accepted grade for thrust pad.
Antimony impregnated MY10K, MY3D/MY10D copper lead impregnated are also used for
high HP rated motor. All Carbon Grade retain the basic properties thus making
them as unique engineering material and suited for thrust pad and axial bearing
which may operate in conditions beyond the limit of other materials. Their
Carbon withstand unpredictable load, help the pumps to run in dry condition,
Motor does not seize even after prolonged rest, generate low heat etc. These
grades are manufactured only at Assam Carbon Products Ltd India
and exclusively marketed by ACPL
only.
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.39.79 |
|
|
1 |
Rs.81.23 |
|
Euro |
1 |
Rs.56.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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 |
|