MIRA INFORM REPORT

 

 

 

Report Date :

30.04.2008

 

 

IDENTIFICATION DETAILS

 

Name :

MURUGAPPA MORGAN THERMAL CERAMICS LIMITED

 

 

Registered Office :

P B No. 1570, Dare House Complex, 5th Floor, Extension 2, NSC Bose Road, Chennai – 600 001, Tamilnadu  

 

 

Country :

India

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

29.03.1982

 

 

Com. Reg. No.:

9622

 

 

CIN No.:

[Company Identification No.]

U26919TN1982PLC009622

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEM00400B

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturing of Ceramic Fibre Products.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 1200000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company of Murugappa Group, a 100 Years old industrial house.

 

Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position is good. Payments are correct and as per commitments.

 

The company is doing well. It can be considered good for any business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Ravi K. Shah

Designation :

Manager

Date :

30.04.2008

 

 

LOCATIONS

 

Registered Office :

P B No. 1570, Dare House Complex, 5th Floor, Extension 2, NSC Bose Road, Chennai – 600 001, Tamilnadu, India

Tel. No.:

91-44-25306877

Fax No.:

91-44-25345985

E-Mail :

venkat@ho.mmtel.co.in

Website :

http://www.murugappa.com  (Group Website)

 

 

Corporate Office :

Tiam House, Annexe, 3rd Floor, 28, Rajaji Salai, Chennai – 600 001, Tamil Nadu, India

Tel. No.:

91-44-521 7278

Fax No.:

91-44-521 3709

 

 

Factory 1 :
  • Main Factory :  26 & 27 SIPCOT Industrial Complex, Ranipet, Pin -  632 403, Tamil Nadu, India

      Tel. No. 91-4172-44313

 

  • 33, Smith Road, Chennai – 600 086, Tamil Nadu, India

 

 

DIRECTORS

 

Name

MR. Nigel G. Howard

Designation

Director

Date of Birth

24.07.1945

Address

Little Dene Nightingale Avenue, West Hoarsely, Surrey KT 2568 P England

Date of Appointment 

29.03.2004

 

 

Name

Mr. M. M. Murugappan

Designation

Chairman

Date of Birth

12.11.1955

Address

12, Boat Club Road, R. A. Puram, Chennai – 600 028, Tamil Nadu, India

Date of Appointment 

27.03.2001

 

 

Name

Mr. Ian William Robb

Designation

Director

Date of Birth

17.08.1959

Address

24, 03 Leonie Condotel, Singapore – 239192

Date of Appointment 

21.09.1998

 

 

Name

Mr. R. Srinivasan

Designation

Director

Date of Birth

10.09.1941

Address

126, Nandi Durg Road, Bangalore – 560 046, Karnataka, India

Date of Appointment 

29.03.2004

 

 

Name

Mr. George Kendall Steinbach

Designation

Director

Date of Birth

20.06.1950

Address

4462, Whistle Stop LN Douglas Ville, GA 30135, USA

Date of Appointment 

29.03.2004

 

 

Name

Mr. Sitharam Koka

Designation

Director

Date of Birth

12.06.1950

Address

3, IVth Avenue, Harrington Road, Chetpet, Chennai – 600 031, Tamilnadu, India

Date of Appointment 

29.03.2004

 

 

Name

Mr. Jeremy Richards

Designation

Director

Date of Birth

27.10.1953

Address

20 Ashburner Street, Manly NSW, Australia

Date of Appointment 

30.06.2004

 

 

Name

Ronald Corbett Wainwright

Designation

Director

Date of Birth

26.09.1951

Address

The Olives, High Street, Buxted, UK

 

 

KEY EXECUTIVES

 

Name :

Mr. A. Venrataraman

Designation :

Company Secretary

Address :

6/6, Kenwed, 2nd St. Mylapore, Chennai – 600 004, Tamil Nadu, India

Date of Birth/Age :

17.06.1963

Date of Appointment :

07.11.1995

 

 

 

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.03.2005

 

Names of Shareholders

 

No. of Shares

Carborundum Universal Limited

 

1430793

The Morgan Crucible Company Limited Plc. U.K.

 

1489200

Premset Private Limited

 

2

Kartik Investment Trust Limited

 

1

Kulasekharam Investment Private Limited

 

1

Santhanalakshmi Investments Limited

 

1

New Ambadi Investments Private Limited

 

1

E I D Parry (India) Limited 

 

1

Total

 

2920000

 

As on 31.12.2006

 

Names of Shareholders

 

Percentage of Holding

Bodies Corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Ceramic Fibre Products.

 

 

Products :

Ceramic Fibre Products

 

 

Exports :

 

Products :

All Products

Countries :

Europe, USA

 

 

Imports :

 

Products :

Raw Materials

Countries :

Europe

 

 

Terms :

 

Selling :

Credit upto 30 days basis

 

 

Purchasing :

L/C and Credit upto 30 to 60 days basis

 

 

GENERAL INFORMATION

 

Customers :
  • End Users
  • Petrochemicals

 

 

No. of Employees :

Around 120 (In Office – 20 and In Factory – 100)

Group Employs – around 60000 people  

 

 

Bankers :
  • Bank of Baroda, Main Branch, Tian House, Rajaji Salai – 600 001, Tamil Nadu, India

 

  • Standard Chartered Bank, NSC Bose Road, Dare House Complex, Chennai 600 001, Tamilnadu, India

 

  • Citi Bank

 

  • Hongkong Bank

 

  • ANZ Grindlays Bank PLC, 19, Rajajai Salai, Chennai – 600 001, Tamilnadu, India

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

BSR and Company

Chartered Accountants

Address :

Wescare Towers, 16 Cenotaph Road, Teynampet, Chennai – 600 018, Tamilnadu, India

 

 

Holding Company :

Morgan Crucible Company PLC, UK

 

 

Subsidiaries :
  • E I D Parry (India) Limited
  • TI Cycles, Corborandum Universal Limited
  • TI Cycles, Tube Products Limited
  • Bundy Tubings Limited

(All Murugappa Group Companies)

 

 

Group Companies :

Murugappa Group Companies are:

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5,000,000

Equity Shares

Rs. 10/- each

Rs. 50.000 millions

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,920,000

Equity Shares

Rs. 10/- each

Rs. 29.200 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.12.2006

31.12.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

29.200

29.200

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

269.853

205.830

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

299.053

235.030

LOAN FUNDS

 

 

 

1] Secured Loans

 

33.393

0.000

2] Unsecured Loans

 

28.104

28.104

TOTAL BORROWING

 

61.497

28.104

DEFERRED TAX LIABILITIES

 

15.034

12.905

 

 

 

 

TOTAL

 

375.584

276.039

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

320.118

158.873

Capital work-in-progress

 

30.100

14.364

 

 

 

 

INVESTMENT

 

0.200

62.355

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

50.385

47.851

 

Sundry Debtors
 

113.812

90.064

 

Cash & Bank Balances
 

5.909

6.503

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

45.146

22.999

Total Current Assets
 

215.252

167.417

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

141.252

82.913

 

Provisions
 

48.834

44.057

Total Current Liabilities
 

190.086

126.970

Net Current Assets
 

25.166

40.447

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

375.584

276.039

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.12.2006

31.12.2005

Sales Turnover

 

601.455

507.886

Other Income

 

18.281

10.309

Total Income

 

619.736

518.195

 

 

 

 

Profit/(Loss) Before Tax

 

150.514

115.828

Provision for Taxation

 

0.000

0.000

Profit/(Loss) After Tax

 

150.514

115.828

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

 

158.304

122.999

 

Purchases made for re-sale

 

27.033

34.383

 

Consumption of stores and spares parts

 

23.293

17.818

 

Increase/(Decrease) in Finished Goods

 

3.781

4.353

 

Salaries, Wages, Bonus, etc.

 

31.311

24.581

 

Managerial Remuneration

 

3.357

2.650

 

Payment to Auditors

 

0.260

0.260

 

Interest

 

2.853

2.184

 

Insurance Expenses

 

3.337

2.478

 

Power & Fuel

 

80.405

58.787

 

Depreciation & Amortization

 

17.244

20.597

 

Other Expenditure

 

118.044

111.277

Total Expenditure

 

469.222

402.367

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.12.2006

31.12.2005

PAT / Total Income

(%)
 

24.28

22.35

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

24.28

22.35

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

26.60

28.74

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.50

0.49

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.89

1.71

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.13

1.31

 

 

LOCAL AGENCY FURTHER INFORMATION

 

FORM 8

 

Name of the company

MURUGAPPA MORGAN THERMAL CERAMICS LIMITED

Presented By

N Ebenezer, Company Secretary and Accounts Manager

1) Date and description of instrument creating the 

    change

Deed of hypothecation of book debts and deed of hypothecation of goods both dated 12.09.1994

2) Amount secured by the charge/amount owing on 

    the securities of charge

Rs. 1.000 million

3) Short particular of the property charged. If the

    property acquired is subject to charge, date of   

    the acquired of the property should be given

The whole of the stocks of raw materials, stock in process, finished goods, etc, and bad debts, receivables etc (hereinafter referred to as “said debts and assets”)

4) Gist of the terms and conditions and extent and

    operation of the charge.

Interest at 14.5% per annual (inclusive of interest tax)

The said facility is (secured by first charge by way of hypothecation of the said debts and assets)

5) Name and Address and description of the

    person entitled to the charge.

ANZ Grindlays Bank PLC

19, Rajajai Salai, Chennai – 600 001, Tamilnadu, India

6) Date  and brief description of instrument

    modifying the charge

Supplemental letter of hypothecation of goods to cover the total limit dated 23.01.1995 

7) Particulars of modifications specifying the terms

    and conditions or the extent of operations of the  

    charge in which modification is made and the

    details of the modification.

Charge modified under the aforesaid supplemental letter of hypothecation of goods to cover Rs. 13.500 millions as shown below :

Overdraft, bill discounting, packing credit, cheque purchase, letter of credit, guarantees.

 

As Per Web:

 

History

 

Subject is a JV of the Thermal Ceramics Division of Morgan Crucible Company plc, UK and CUMI, with Morgan holding a 51 per cent share.

 

Subject is in the business of engineered solutions for high temperature insulation, providing significant energy savings and productivity improvement. The company manufactures a complete range of ceramic fibre products and serves many industries including Iron & Steel, Aluminium, Metal Processing, Furnace Building, Power, Ceramics and Chemical Processing. The major focus is the domestic market in which MMTCL is the leader. The company’s new thrust area is to promote the fire resistance functionality of the product in process industries and building construction.

 

The major companies of the Group are:

 

 

 

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.40.22

UK Pound

1

Rs.79.94

Euro

1

Rs.62.83

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

72

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions