MIRA
INFORM REPORT
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Report Date : |
27.09.2007 |
IDENTIFICATION DETAILS
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Name : |
KATWA UDYOG LIMITED |
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Registered Office : |
215/2, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.03.1993 |
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Com. Reg. No.: |
14104 |
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CIN No.: [Company
Identification No.] |
-- |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRK01934C |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Cement |
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 : |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track records. Directors are reported as experience 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 : |
215/2, |
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Tel. No.: |
91-831-2483510 / 2484427 / 2484414 |
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Fax No.: |
91-831-2484421 |
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E-Mail : |
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Website : |
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Factory 1 : |
R. S. No. 346, |
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Tel. No.: |
91-8345-40137 |
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Fax No.: |
91-8354-40187 |
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Factory 2 : |
Nagnapur Industrial Area, 15/4, at Mudhol, Bagalkot – 587122, |
DIRECTORS
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Name : |
Mr. M. L. Bevinkatti |
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Designation : |
Director |
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Date of Birth/Age : |
24.06.1969 |
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Qualification : |
B.E. – |
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Date of Appointment : |
17.09.1993 |
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Name : |
Mr. H. D. Katwa |
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Designation : |
Chairman |
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Date of Birth/Age : |
01.06.1948 |
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Qualification : |
Promoter, 1st Generation Industrialist Self – employed |
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Date of Appointment : |
17.03.1993 |
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Name : |
Mr. Venkatesh H. Katwa |
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Designation : |
Vice Chairman |
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Name : |
Mrs. N. H. Katwa |
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Designation : |
Director |
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Date of Birth/Age : |
19.08.1956 |
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Qualification : |
Promoter |
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Date of Appointment : |
17.03.1993 |
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Name : |
Mr. Vilas Katwa |
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Designation : |
Managing Director |
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Qualification : |
B.E. – I. P. MBA [ |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr. Deepak Katwa |
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Designation : |
Director |
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Date of Birth/Age : |
19.09.1978 |
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Qualification : |
B. Com. MBA – |
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Date of Appointment : |
25.05.2007 |
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Name : |
Mr. Dinesh Kotecha |
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Designation : |
Director |
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Date of Birth/Age : |
18.04.1958 |
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Qualification : |
B. Com. [Hons] F. C. A. |
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Date of Appointment : |
26.07.2007 |
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Name : |
Mr. Govindraj Chitta |
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Designation : |
Director |
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Name : |
Mrs. Bharati Kamatgi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajesh Lakkat |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
1120332 |
21.864 |
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Persons acting in consult |
1729480 |
33.751 |
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Bodies corporate |
167614 |
3.271 |
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Indian public |
2106774 |
41.114 |
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Total |
5124200 |
100.000 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturers of Cement |
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Products : |
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GENERAL INFORMATION
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Suppliers : |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Prabhakar K. Latkan Chartered Accountants |
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Address : |
1083, Anantshyam Galli, |
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Associates/Subsidiaries : |
Katwa Finlease Limited Katwa Infotech Limited Katwa Construction Company Limited Katwa Oil Limited Katwa Finance and Investment Company Limited Katwa Inc. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5124200 |
Equity Shares |
Rs. 10/- each |
Rs. 51.242
Millions |
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 |
51.242 |
51.242 |
51.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
7.349 |
9.430 |
15.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
58.591 |
60.672 |
66.200 |
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LOAN FUNDS |
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1] Secured Loans |
36.039 |
20.544 |
11.200 |
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2] Unsecured Loans |
3.251 |
5.015 |
3.900 |
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TOTAL BORROWING |
39.290 |
25.559 |
15.100 |
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DEFERRED TAX LIABILITIES |
17.444 |
17.503 |
0.000 |
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TOTAL |
115.325 |
103.734 |
81.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
70.083 |
68.827 |
68.100 |
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Capital work-in-progress |
3.033 |
0.000 |
0.000 |
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INVESTMENT |
4.236 |
4.215 |
4.000 |
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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 |
19.233
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12.449 |
9.800 |
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Sundry Debtors |
0.270
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1.224 |
10.400 |
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Cash & Bank Balances |
2.224
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23.506 |
5.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
30.199
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4.977 |
6.000 |
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Total
Current Assets |
51.926
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42.156 |
31.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1.901
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0.698 |
18.200 |
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Provisions |
12.052
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10.766 |
4.000 |
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Total
Current Liabilities |
13.953
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11.464 |
22.200 |
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Net Current Assets |
37.973
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30.692 |
9.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
115.325 |
103.734 |
81.300 |
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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 |
84.536 |
75.016 |
80.900 |
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Other Income |
0.255 |
0.257 |
2.600 |
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Total Income |
84.791 |
75.273 |
83.500 |
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Profit/(Loss) Before Tax |
5.543 |
1.703 |
1.600 |
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Provision for Taxation |
1.628 |
1.448 |
0.100 |
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Profit/(Loss) After Tax |
3.915 |
0.255 |
1.500 |
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Expenditures : |
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Raw Material Consumed |
28.550 |
23.398 |
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Employees Remuneration and Benefits |
1.557 |
1.027 |
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Manufacturing Expenses |
44.445 |
44.770 |
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Bank Interest and Others |
1.381 |
1.154 |
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Depreciation & Amortization |
3.314 |
3.221 |
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Total Expenditure |
79.247 |
73.570 |
81.900 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2007 |
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Type |
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1 Qtr
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Sales Turnover |
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36.800
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Other Income |
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0.000
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Total Income |
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36.800
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Total Expediture |
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32.800
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Operating Profit |
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4.000
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Interest |
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1.100
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Gross Profit |
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2.900
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Depreciation |
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0.700
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Tax |
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0.000
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Reported PAT |
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2.200
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
4.62
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0.34 |
1.80 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.56
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2.27 |
1.98 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.54
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1.53 |
1.61 |
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Return on Investment (ROI) (PBT/Networth) |
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0.09
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0.03 |
0.02 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.91
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0.61 |
0.56 |
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Current Ratio (Current Asset/Current Liability) |
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3.72
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3.68 |
1.41 |
LOCAL AGENCY FURTHER INFORMATION
Fixed assets
- Land
- Building
- Plant and
Machinery
- Office
Equipments
- Vehicles
Operations
During the years under review the turn over has increased to Rs. 84.536
Millions as compared to turn over of Rs. 75.016 Millions in the previous year
showing as increase of 12.69 %. The profit after tax is Rs. 3.915 Millions as
compared to Rs. 0.255 Millions over 2005-2006.
The manufacture and sell high strength Portland cement of 43 grade IS
8112 and 53 grade IS 12269 under the brand “Jyoti” cement. The company is a
mini cement manufacturer that has accelerated its pace of growth through
expansion and acquisition. During the year necessary steps have been initiated
in this direction.
Capacity Expansion
and Acquisition
The Financial year 2006-07 has been good year
for the company. They have been there since 1993 as a mini cement plant,
Several / substantial additional mini cement manufacturing companies /
capacities came in to existence in
Along with came as opportunity for acquisition
of a sick cement unit nearby the
existing unit. The directors have taken a very futuristic view of the industry
and bidded for the same.
The company had funded the acquisition by unsecured
loans from promoters and bank borrowing taking advantages of the good dents
equity ratio. The part benefits from the above expansion and acquisition will
start getting reflected in the top line and bottom-line growth by the end of
this year
Merger of Katwa Construction Company Limited
To attain substance and scalability in
turnover and profitability it has been principally decided to merger the
unlisted group company namely “Katwa construction company limited” into the
existing company after getting all necessary statutory approval
Change of Name
The Company manufacturers and sells cement
under the brand name “Jyoti” cements. The Board of Directors feel that the
present name of the company is too generic an its does not capture and core
area of operations nor the brand name of
the product. Also as per description above about the merger of the group
construction company into the present company, it has been decided to change
the name of the company to “Jyoti Cement and Infra Limited”. The new name would
better reflect the brand and the business of the company.
Management Discussion and Analysis
Katwa Udyog Limited is a company promoted by
first generation enterprenurers from upcountry place, nonetheless all out
effort are made to comply with the laws of the land. The prime air is to create
wealth for the stakeholders but then the management is committed to
professionalism and transparency. Mr. Rajesh Lakkar a Associate member of the
Institute of company secretaries of
Cement Industry – Outlook and Opportunities
The cement industry has demonstrated the healthy
growth of 8.6 % in the last five year. With the Indian economy continuing its
growth path, cement consumption is expected to growth at 9-10 %. The increase
in industrial investment and expunction of higher spending on infrastructure
portend will fort the cement sector. The robust demand from residential and
commercial construction will continue to be major growth drives.
Indian cement Industry is cyclical in nature.
In the recent years. Cement prices and profitability of cement manufacturers
have fluctuated significantly demanding upon the over all supply and demand.
During the year under review the market of
cement remained buoyant. The company is pursuing cost control measures,
increase productivity, increasing efficiencies in manufacturing area and thrust
in sales and better price realization.
All around and buzzword is infrastructure and
housing and the cement is at the core for them. The supply is fast growing up
due to capacity expansion by nearly all the small and major cement manufacturers,
nut the demand for cement is still growing at the better pace resulting in
better realization to the cement producers.
The company had decided to o in for major
expansion at both of its factories – at Koladgi and newly acquired plant at
Lokapur. It already has sufficient land at both the places. The expansion has
already started at Kaladgi, which is expected to be completed by December 2007.
the production at Lokapur is expected to start at the third quarter of the
current year.
AS PER WEBSITE
Katwa
Udyog Limited, a reputed group in manufacturing cement, manufactures of
high strength Jyoti
cement. The company shares happiness of millions of people who
have made their dream homes come true by using Jyoti cement. Jyoti cement takes
every opportunity to present the benefits of technology and quality raw
material to the people of Karnataka, the western coast, and the southern
Jyoti cements mission is to manufacture high quality
Portland cement and help our society to build strong and durable structures in
every village and cities. We will make our cement avaliable at least possible
price through constant application of state-of-art technologies, effecient management
of resources and adoption of indigenous transportation system.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. |
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1 |
Rs. |
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Euro |
1 |
Rs. |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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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 |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
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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 |
|
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. |
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 |
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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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