MIRA
INFORM REPORT
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Report Date : |
28.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
GRATEX INDUSTRIES LIMITED |
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Registered Office : |
109 Kakad Udyog Bhavan, Off L J Road, Mahim, Mumbai – 400016,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11-32248 |
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Com. Reg. No.: |
23.02.1984 |
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CIN No.: [Company
Identification No.] |
L36998MH1984PLC032248 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG9004C |
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PAN No.: [Permanent
Account No.] |
AAACG1275A |
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Legal Form : |
A public limited liability company. The Company’s Shares are listed on
the Stock Exchange. |
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Line of Business : |
Manufacturers and Suppliers of PVC
Products |
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 97000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is low. It has some accumulated losses, which might take
some time to be wiped – off. Trade relations are fair. Payments are reported
as slow but correct. The company can be considered for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
109 Kakad Udyog Bhavan, Off L J Road, Mahim, Mumbai – 400016,
Maharashtra, India |
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Tel. No.: |
91-22-24376001 / 4376474 |
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Fax No.: |
91-22-24377013 |
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E-Mail : |
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Website : |
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Factory : |
Gratex House, Thane - Belapur
Road, Khairne, New Mumbai, Maharashtra. |
DIRECTORS
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Name : |
Mr. Baldev Sharma |
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Designation : |
Chairman & Managing Director |
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Name : |
Ms. Promila Sharma |
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Designation : |
Director |
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Name : |
Mr. K P Bharadwaj |
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Designation : |
Director |
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Name : |
Ms. Mona Menon |
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Designation : |
Director |
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Name : |
Mr. Karan Sharma |
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Designation : |
Director |
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Name : |
Mr. Pratap Menon |
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Designation : |
Director |
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Name : |
Mr. Pradeep Nagori |
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Designation : |
Director |
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Name : |
Mr. Gurvinder Singh Saggu |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Suppliers of PVC Products |
GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B.H. Patel and Company Chartered Accountants |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 29.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000 |
Equity Shares |
Rs. 10/- each |
Rs. 40.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3034800 |
Equity Shares |
Rs. 10/- each |
Rs. 30.348
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 |
30.300 |
30.300 |
30.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
[6.000] |
[7.900] |
[9.500] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
24.300 |
22.400 |
20.800 |
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LOAN FUNDS |
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1] Secured Loans |
2.700 |
1.700 |
2.700 |
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2] Unsecured Loans |
1.600 |
0.400 |
0.400 |
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TOTAL BORROWING |
4.300 |
2.100 |
3.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
28.600 |
24.500 |
23.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
10.800 |
11.300 |
11.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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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 |
12.200
|
10.400 |
10.500 |
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Sundry Debtors |
0.800
|
1.100 |
1.100 |
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Cash & Bank Balances |
0.100
|
0.000 |
0.100 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
15.500
|
13.800 |
13.100 |
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Total
Current Assets |
28.600
|
25.300 |
24.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
11.800
|
13.400 |
14.200 |
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Provisions |
0.000 |
0.000 |
0.000 |
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Total
Current Liabilities |
11.800
|
13.400 |
14.200 |
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Net Current Assets |
16.800
|
11.900 |
10.600 |
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MISCELLANEOUS EXPENSES |
1.000 |
1.300 |
1.700 |
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TOTAL |
28.600 |
24.500 |
23.900 |
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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 |
30.300
|
26.200
|
22.300
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Other Income |
0.100
|
0.000
|
0.200
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Total Income |
30.400 |
26.200 |
22.500 |
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Profit/(Loss) Before Tax |
1.900
|
1.600
|
[1.700]
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Provision for Taxation |
0.000
|
0.000
|
0.000
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Profit/(Loss) After Tax |
1.900
|
1.600
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[1.700]
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Expenditures : |
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Raw Materials |
16.300
|
9.800
|
12.300
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Excise Duty |
1.100
|
1.300
|
1.600
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Power & Fuel Cost |
3.000
|
3.000
|
2.800
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Other Manufacturing Expenses |
1.400
|
1.100
|
1.100
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Employee Cost |
4.600
|
5.200
|
4.500
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Stock Adjustments |
[1.600]
|
0.000
|
[2.600]
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Selling and Administration
Expenses |
2.200
|
2.800
|
2.600
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Miscellaneous Expenses |
0.500
|
0.500
|
1.100
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Interest & Financial Charges
|
0.400
|
0.300
|
0.200
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Depreciation |
0.600
|
0.600
|
0.600
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Total Expenditure |
28.500 |
24.600 |
24.200 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
6.000 |
8.400 |
9.000 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
6.000 |
8.400 |
9.000 |
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Total Expenditure |
5.200 |
7.400 |
9.400 |
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Operating Profit |
0.800 |
1.000 |
[0.400] |
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Interest |
0.100 |
0.100 |
0.000 |
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Gross Profit |
0.700 |
0.900 |
[0.400] |
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Depreciation |
0.100 |
0.100 |
0.200 |
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Tax |
0.000 |
0.000 |
0.000 |
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Reported PAT |
0.600 |
0.800 |
[0.600] |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
0.14 |
0.12 |
0.15 |
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Long
Term Debt-Equity Ratio |
0.14 |
0.12 |
0.15 |
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Current
Ratio |
2.14 |
1.82 |
1.85 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.50 |
1.31 |
1.14 |
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Inventory |
2.68 |
2.51 |
2.44 |
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Debtors |
31.89 |
23.82 |
12.39 |
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Interest
Cover Ratio |
5.75 |
6.33 |
[7.50] |
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Operating
Profit Margin(%) |
9.57 |
9.54 |
[4.04] |
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Profit
Before Interest And Tax Margin(%) |
7.59 |
7.25 |
[6.73] |
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Cash
Profit Margin(%) |
8.25 |
8.40 |
[4.93] |
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Adjusted
Net Profit Margin(%) |
6.27 |
6.11 |
[7.62] |
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Return
On Capital Employed(%) |
6.72 |
6.88 |
0.00 |
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Return
On Net Worth(%) |
5.90 |
6.04 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
History :
Subject was incorporated in the state of Maharashtra on 23-2-1984 as a
private limited company under the name of Gratex Decorative Industries Private
Limited. The company was converted into
a public limited company by passing a special resolution on 7.10.92 and
obtained certificate of change of name on 5th November, 1992. The name was changed from Gratex Decorative
Industries Limited to Gratex Industries Limited on 9th day of March,
1993 under the Companies Act.
Operations:
During the year, the Company has posted a Net Profit of Rs.1.923 Millions, as
compared to Rs 1.593 Millions in the previous year.
The Company is concentrating on upgrading the P&M by adding new &
latest technology Control Panels on GF Plant as well as on our RP Plant Additions
were also made by purchase of slitting machines for efficient edge trimming
& border cutting facility.
During the year the Company has put special emphasis on the infrastructure
development to build up the Wallpaper industry, by starting and conducting
courses for Wallpaper Installation Training. The Company has also worked on
anti-fungal testing of adhesives both with imported and local ingredients, with
this the Directors hope to minimize the fungus problems caused during the
monsoons.
The Directors propose to focus on high value brands like ethnic, special made
to order, & Imported Wallpapers.
The Directors are quite awake and are taking necessary steps to beat the
competition and prove our competitive competence to usher in Progress and
Prosperity to Gratex, its Employees and Shareholders.
Industry
Structure, Developments and Outlook:
Subject is the No.1 Wallpaper manufacturing Company in India and commands a
market share of 60% in its segment In addition to being well known in the industry
as a pioneer, its product commands a strong brand image GIL has been in the
forefront in launch of new designs which makes a life-style statement. Our
focus is also on the Industrial Consumer and this will significantly expand the
market base.
During the year, the Company has consolidated on the area of setting up the
infrastructure for efficient Warehousing of Imported Stocks and Network
Marketing on all India basis.
Subject is also focused on making its infrastructure strong by extending Karigar
Training Classes and Contractor / Sale Staff Training Programme by establishing
a formal Gratex Academy. The Company intends to train at least 50 Karigars per
annum, who would enter the Wallpaper Field every year.
Significant upgradation is also made by the Company by up-grading the Adhesives
used and providing technical back up support for post sales problems.
Opportunities
and Threats:
With Imports getting cheaper, more and more persons are entering into the
Wallpaper Business, due to which the flow of Imported Wallpapers is on the
rise. This would open up opportunities in market thereby making it
competitive.
Threat from imports, particularly from China and East Asian Countries, is
foreseen in future and having regard to their large capacities, is likely to
put some pressure on the prices in the domestic market. The Company is already
under pressure against rising PVC. DOP & Gas fuel prices.
Risks and Concerns:
During the year, the prices of fuel gas rose by 25%, thereby creating a significant
impact on the cost of Wallpapers. The increased input costs at present are to
be absorbed due to lower cost of importation.
The Company has taken up measures like raising the minimum run production
quantity, running 3 shifts with full load for continuous production, which has
helped in cost control upto 12% thereby retaining the competitive level.
Internal Controls:
The Company has a system of internal Controls to ensure that all its assets are
properly safeguarded and not exposed to risks arising out of unauthorized use.
The Internal Control system is supplemented by a programme of Internal Audits
to ensure that the assets are properly accounted for and the business
operations are conducted to adhere to laid down policies and procedures.
The Company has an Audit Committee of the Board of Directors which meets
regularly to review, inter aria, risk management policies, adequacies of
internal controls and the audit findings on the various segments of the
business.
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.18 |
|
UK Pound |
1 |
Rs.79.25 |
|
Euro |
1 |
Rs.62.90 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
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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 |
3 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
3 |
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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 |
|
--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
41 |
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. |
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 |
|