MIRA
INFORM REPORT
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Report Date : |
19.10.2007 |
IDENTIFICATION DETAILS
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Name : |
KAJARIA CREAMICS LIMITED |
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Registered Office : |
A-27 and
28, Sikandrabad Industrial Area, Sikandrabad, District Bulandshahr, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.12.1985 |
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Com. Reg. No.: |
20-7595 |
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CIN No.: [Company
Identification No.] |
L26924U1985PLC007595 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELK05579A |
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PAN No.: [Permanent
Account No.] |
AABCK1613R |
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Legal Form : |
Subject
is a public limited company. The company’s shares are listed on the stock
exchanges. |
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Line of Business : |
Manufacturer
of Tiles |
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 5664080 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. The
company’s products which are sold under the brand KAJARIA has been well
received. Financial position is satisfactory. Payments are usually correct and
as per commitments. The
company can be considered normal for business dealings usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
A-27
and 28, Sikandrabad Industrial Area, Sikandrabad, District Bulandshahr, |
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Tel. No.: |
91-11-26946409 |
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Fax No.: |
91-11-26946407/26949544 |
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E-Mail : |
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Website : |
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Head
Office / Corporate
Office : |
J-1/B-1
(Extn), Mohan Co-operative Industrial Estate, Mathura Road, New Delhi-110044,
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Tel. No.: |
91-11-26946409 |
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Fax No.: |
91-11-26946407/26949544 |
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E-Mail : |
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Works 1 : |
A-27
and 28, Sikandrabad Industrial Area, Sikandrabad, District Bulandshahar, |
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Works 2 : |
19KM
Stone, Bhiwadi- |
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Regional
Office : |
Mumbai No. 201-208, Bonanza, 2nd Floor, Shri
Mathuradas Vasanji Road, (Andheri-Kurla Road), JB Nagar, Andheri (East),
Mumbai-400059 Tel No : 91-22-28203506/28203507 Fax : 91-22-28203509 E-mail : mum@kajariaceramics.com Kolkata Tel No : 91-33-24754820/24762647/24763179 Fax No : 91-33-24748012 E-mail : kol@kajariaceramics.com Ahmedabad 202, Anand Mangal II, Behind
Femina Town, C.G. Road, Navangpura, Ahmedabad, Gujarat, India Tel : 91-79-26465515/26465516 Fax : 91-79-26566669 E-mail : ahm@kajariaceramics.com
Chennai
28, Tel No :
91-44-28144323/28144324 Fax No : 91-44-28144323 E-mail : chn@kajariaceramics.com
No. 52, 2nd Floor, Tel No : 91-484-2396433/2393364 Fax No : 91-484-2396433 E-mail : coc@kajariaceramics.com
Pune
601-A, D.S.K. Gandharv Hights,
Ganesh Khind Road, Shivaji Nagar, Pune-16, Maharashtra, India Tel No. : 91-20-4050462/4050463 Fax No : 91-20-4050464 E-mail : pune@kajariaceramics.com
ERNAKULAM OFFICE BHUBANESHWAR OFFICE
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DIRECTORS
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Name : |
Mr.
A.K. Kajaria |
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Designation : |
Chairman
and Managing Director |
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Date of Birth/Age : |
58 years |
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Qualification : |
B. SC. BSME, |
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Experience : |
30 years |
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Date of Appointment : |
01.01.1987 |
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Last Employments : |
Managing Director
– Kajaria Export Limited |
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Name : |
Mr.
D.D. Rishi |
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Designation : |
Joint
Managing Director |
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Name : |
Mr.
R.P. Goyal |
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Designation : |
Director
cum chairman |
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Name : |
Mr.
J.C. Mendiratta |
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Designation : |
Chairman |
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Name : |
Mr.
R.K. Bhargava |
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Designation : |
Director |
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Name : |
Mr.
R.R. Bagri |
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Designation : |
Director |
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Name : |
Mr.
Chetan Kajaria |
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Designation : |
Wholetime
Director |
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Name : |
Mr.
Rishi Kajaria |
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Designation : |
Director |
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Name : |
Mr. Sonjoy
Sethee |
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Designation : |
Nominee-IFCI |
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Name : |
Mr.
R.C. Rawat |
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Designation : |
Vice
President (F and A) and Company Secretary |
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Name : |
Mr. D
P Bagchi |
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Designation : |
Director
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter’s Holding |
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Indian
Promoters |
34393615 |
46.74% |
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Foreign
Promoters |
--- |
---- |
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Sub Total |
34393615 |
46.74% |
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Non-Promoters Holding |
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Institutional
Investors : |
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Mutual Funds and UTI |
7751467 |
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Banks,
Financial Institution, |
37025 |
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Insurance
Companies |
1102753 |
28.24% |
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FIIs |
11890289 |
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Sub Total |
20781534 |
28.24% |
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Others |
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Private
Corporate Bodies |
10527329 |
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Indian
Public |
7335492 |
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NRI’s/OCB’s |
545610 |
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Sub Total |
18408431 |
25.02% |
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Total
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73583580 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
of Tiles. |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Unit |
Installed
Capacity |
Actual
Production |
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Tiles |
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Sq.mtrs |
26.400 |
19.450 |
GENERAL INFORMATION
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No. of Employees : |
1500 |
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Bankers : |
Ř
State Bank of Ř
Canara Bank Ř
State Bank of Ř
Oriental Bank of Commerce Ř
HDFC Bank Limited |
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Facilities : |
Note: 1. a) Debentures
from IFCI and Term loans from financial .institutions and Banks, except as stated
below in 1 (b) to He) and 2, are secured by 1st charge on immoveable and
moveable assets (present and future) of the company situated at Sikandrabad
Industrial Area (U P) and Village Gailpur (Rajasthan) (subject to prior
charges on movables in favour of banks) ranking paripasu with the charges
created in favour of participating financial institutions and Banks and
further guaranteed by the Managing Director of the Company. b) Term Loan
from HDFC of Rs. 15.88 million is secured against exclusive 1st charge on
specified area of land and building Constructed
thereon at Gailpur Factory of the company. c) Term Loan
from Rabo Bank of Rs.115.56 million is secured against exclusive charge on
all wind mills in on 1.25 MW wind power
plant in Rajasthan. d) Corporate
Loans of Rs. 150 million from State Bank of Against
subservient charge on fixed assets of the Company and further guaranteed by
the Managing Director of the Company.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
O. P.
Bagla and Company Chartered
Accountants |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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125000000 |
Equity shares |
Rs.2/- each |
Rs. 250.000 millions |
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1000000 |
Preferences Shares |
Rs. 100/- each |
Rs. 100.000 millions |
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Total |
Rs. 350.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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73583580 |
Equity shares |
Rs.2/- each |
Rs.147.170 millions
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
147.170 |
147.170 |
147.170 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1268.850 |
1209.030 |
1037.740 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1416.020 |
1356.200 |
1184.910 |
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LOAN FUNDS |
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1] Secured Loans |
3073.790 |
1920.770 |
1401.660 |
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2] Unsecured Loans |
249.880 |
105.000 |
50.160 |
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TOTAL BORROWING |
3323.670 |
2025.770 |
1451.820 |
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DEFERRED TAX LIABILITIES |
497.550 |
484.810 |
449.820 |
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TOTAL |
5237.240 |
3866.780 |
3086.550 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3550.460 |
2500.870 |
2402.850 |
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Capital work-in-progress |
29.800 |
316.760 |
61.820 |
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INVESTMENT |
64.600 |
44.600 |
44.600 |
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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 |
1189.780
|
659.460 |
499.590
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Sundry Debtors |
625.060
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509.180 |
416.360
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Cash & Bank Balances |
39.920
|
50.420 |
28.770
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Other Current Assets |
0.000
|
0.000 |
0.000
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Loans & Advances |
407.910
|
253.110 |
268.870
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Total
Current Assets |
2262.670
|
1472.170 |
1213.59 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
637.390
|
367.740 |
552.580
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Provisions |
32.900
|
99.880 |
83.730
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Total
Current Liabilities |
670.290
|
467.620 |
636.310 |
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Net Current Assets |
1592.380
|
1004.550 |
577.280
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5237.240 |
3866.780 |
3086.550 |
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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 |
4137.420 |
3308.530 |
2811.540 |
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Other Income |
9.750 |
8.100 |
0.000 |
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Increase / decrease in stocks |
425.480 |
140.500 |
0.000 |
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Total Income |
4572.650 |
3457.130 |
2811.54 |
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Profit/(Loss) Before Tax |
107.400 |
361.440 |
327.680 |
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Provision for Taxation |
30.670 |
79.730 |
76.870 |
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Profit/(Loss) After Tax |
76.730 |
281.710 |
250.810 |
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Earnings in Foreign Currency : |
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FOB Value of Exports |
521.880 |
263.390 |
182.910 |
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Total Earnings |
521.880 |
263.390 |
182.910 |
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Imports : |
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Raw Materials |
187.300 |
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Spares and consumables |
47.150 |
34.720 |
592.830 |
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Capital Goods |
617.320 |
22.120 |
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Traded goods |
600.960 |
359.540 |
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Total Imports |
1452.730 |
536.500 |
592.830 |
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Expenditures : |
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Administrative and other expenses |
142.500 |
107.780 |
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Purchases |
1049.890 |
504.440 |
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Raw Material Consumed |
1227.670 |
966.190 |
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Stored consumed |
106.010 |
81.420 |
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Salaries, Wages, Bonus, etc. |
285.540 |
208.030 |
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Power & Fuel |
748.050 |
602.030 |
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Repair and maintenance |
25.890 |
19.420 |
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Selling and distribution Expenses |
413.840 |
282.390 |
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Financial charges |
249.000 |
142.800 |
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Depreciation & Amortization |
216.840 |
181.200 |
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Total Expenditure |
4465.230 |
3095.700 |
2483.860 |
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QUARTERLY RESULTS
|
Year |
30.09.2007 |
30.06.2007 |
31.03.2007 |
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Type |
3rd Quarter |
2nd Quarter |
1st Quarter |
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Sales Turnover |
1176.000 |
982.400 |
1297.500 |
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Other Income |
12.000 |
1.300 |
3.000 |
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Total Income |
1188.000 |
983.700 |
1300.500 |
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Total Expenditure |
953.000 |
804.900 |
1243.000 |
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Operating Profit |
235.000 |
178.800 |
57.500 |
|
Interest |
96.300 |
84.300 |
77.200 |
|
Gross Profit |
138.700 |
94.500 |
[19.700 ] |
|
Depreciation |
67.300 |
63.100 |
52.600 |
|
Tax |
9.200 |
4.600 |
[5.800] |
|
Reported PAT |
49.600 |
22.800 |
[54.500 ] |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.93 |
1.37 |
1.34 |
|
Long Term Debt-Equity Ratio |
1.27 |
0.86 |
0.86 |
|
Current Ratio |
0.95 |
0.81 |
0.86 |
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TURNOVER RATIOS |
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Fixed Assets |
0.97 |
0.94 |
0.92 |
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Inventory |
4.72 |
6.07 |
6.28 |
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Debtors |
7.70 |
7.60 |
6.54 |
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Interest Cover Ratio |
1.43 |
3.53 |
3.14 |
|
Operating Profit Margin(%) |
13.12 |
19.48 |
20.23 |
|
Profit Before Interest And Tax Margin(%) |
8.16 |
14.33 |
15.27 |
|
Cash Profit Margin(%) |
6.72 |
13.16 |
13.44 |
|
Adjusted Net Profit Margin(%) |
1.76 |
8.01 |
8.49 |
|
Return On Capital Employed(%) |
8.77 |
16.75 |
18.02 |
|
Return On Net Worth(%) |
5.53 |
22.17 |
23.45 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject, started by Mr. Ashok Kajaria, a technocrat from
Subject came out with a public issue in Sep.'88 to set up a factory at
Sikandrabad, Uttar Pradesh. The Commercial production of this unit is commenced
in Aug.'88.
Subject has expanded the capacity in stages all this years. Started with mere
12000 tpa in 1988, the total installed capacity (of both the units at
sikandrabad and Alwar) has jumped to 160000 tpa by 1999. In 1995 the company
has increased the total capacity of Sikandarabad unit to 80000 tpa and in
1998-99 the company completed the new unit for manufacturing floor and wall
tiles at Village Gailpur in Alwar District of Rajasthan at a cost of Rs.980.000
milloins thus increasing the total capacity to 150000 tpa. Now in 2000-01, the
total capacity stood at 160000 tpa.
Subject becomes the first ceramic tile company in
Subject is adopting an nowel strategy/ concept i.e. mock bathrooms, kitchens,
and living rooms in organized retailing. It has also pumped in Rs.25 million in
Kajaria Plus Limited, thus making this marketing company of ceramic products it's
subsidiary. In Feb 2001, the company has also entered the Australian Market by
floating a subsidiary company in
The company has expanded the installed capacity of Ceramic Tiles during
the financial year 2003-04 by 2300000 SqM and with this expansion,the total
capacity has risen to 13800000 SqM.
DIRECTOR REPORTS:
Performance
review:
The Company addressed a challenging situation during the year under review. Even as sales increased, there was a decline in profits and margins. Their sales increased by 24 percent over 2005-06, touching Rs. 4,368 mn.; there was a 16 percent decline in EBIDTA to Rs. 573 mn. and a decline in their pretax profit from Rs. 361 mn. in 2005-06 to Rs. 107 mn. in 2006-07. The decline would have been sharper but for effective counter-measures during the later part of the financial year, the results of which should reflect in 2007-08. The growth in their revenue was partly the result of an 8.4 mn. sq. mt. increase in production arising out of their enhanced capacity and increase in sale of vitrified tiles imported by the Company. The gross block increased by 20 percent; since this incremental capacity was funded mainly through debt, there was a corresponding increase in their interest outflow by 74 percent during the year under review. However, the sharp increase in output could not be commensurately absorbed by the marketplace and their profit after tax declined to Rs. 77 mn. compared to Rs. 286 mn. in the previous year.
Corporate highlights
Capacity expansion: To cater to the widening market, we increased their capacity from 18 mn. sq. mt. to 26.4 mn. sq. mt. at a cost of around Rs. 1230.000 millions. The expansion was completed in the end of September 2006, the Company operated at 87 percent of its weighted average capacity in the financial year 2006-07. The project was funded through a debt of Rs. 800.000 millions and the rest through internal accruals.
New products: Following a careful study of changing market trends, the Company launched a boutique and exclusive collection of tiles at the end of the year. The Company also launched large-sized wall tiles in July, 2007 to, cater to the needs of the high-end
Outlook
An affluent middle-class, rising aspirations, easy financing and changing demographics are strengthening the demand for housing, estimated at around 25 percent a year. In turn, this demand is extending to the ceramic tiles industry. The outlook for the business continued to be optimistic for the following reasons:
° The country's total stock of commercial real estate is expected to grow by US$ 66 bn. to .US$ 366 ton. by
2010, mostly in organized retail.
« The potential for ceramic tiles is large, considering their
per capita consumption of 0.30 sq. mt. in
compared to more than 2.0 sq. mt for countries like
» Urban housing shortage stood at 8.89 mn. units at the beginning of the Tenth Plan (2002-07) while the cumulative requirement for the same period is pegged at 22.44 mn. units. Estimates for the housing requirements during the Eleventh Plan period (2007-12) are about 27 mn. houses in the urban areas and 47 mn. in rural areas.
" With increasing affluence, brand consciousness is driving the offtake of branded products, benefiting the unorganized sector. Subsidiary companies As required under Section 212 of the Companies Act, 1956, the audited statement of accounts relating to the subsidiary companies, together with enclosures, for the year ended March 31, 2007 are enclosed.
Fixed
assets
Ř
Land and Site Development
Ř
Building, Plant and Machinery
Ř
Furniture and Fixtures
Ř
Vehicles
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.81.41 |
|
Euro |
1 |
Rs.56.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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 |
|