MIRA
INFORM REPORT
|
Report Date : |
16.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MURLI INDUSTRIES LIMITED |
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Formerly Known As : |
MURLI AGRO PRODUCTS LIMITED |
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Registered Office : |
101, Jai Bhawani Society, Wardhaman Nagar, Nagpur – 440 008,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
02.12.1991 |
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Com. Reg. No.: |
11-64271 |
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CIN No.: [Company
Identification No.] |
L01110MH1991PLC064271 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPM03894C |
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PAN No.: [Permanent
Account No.] |
AACCM1276B |
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Legal Form : |
Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and sale of solvent extraction medium and
craft paper. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 11000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having fine track.
Trade relations are fair. Business is active. General financial is good. Payments are reported as usually made as per commitments. The company can be considered good for any normal business dealings. |
LOCATIONS
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Registered Office : |
101, Jai Bhawani Society, Wardhaman Nagar, Nagpur – 440 008,
Maharashtra, India |
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Tel. No.: |
91-712-2769849 / 2768912 / 2683000 / 2765526 / 2769876 |
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Fax No.: |
91-712-2761145 / 2684422 |
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E-Mail : |
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Website : |
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Area : |
4000 Sq. ft. |
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Location : |
Rented |
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Corporate Office 1: |
1186, Radha Nivas, C. A.
Backroad, Bhavsar Chowk, Gandhibag, Nagpur - 440002, Maharashtra, India |
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Tel. No.: |
91-712-2760407/2767151 |
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Fax No.: |
91-712-2760407 |
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E-Mail : |
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Corporate Office 2 : |
Radha House, 239 East Wardhman Nagar, Nagpur – 400 008, Maharashtra,
India |
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Tel. No.: |
91-712-2683000 / 3050200 |
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Fax No.: |
91-712-2684422 |
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E-Mail : |
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Factory 1 : |
Solvent Unit : U-140/141 MIDC Industrial
Area, Hingna Road, Nagpur-440016, Maharashtra, India |
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Tel No.: |
91-7104-236611/236121 |
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Fax No.: |
91-7104-236131 |
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Factory 2 : |
Solvent Unit : Umerade Taluka |
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Tel No.: |
91-7116-243123 |
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Factory 3 : |
Paper Unit : Village Vadodra, Nagpur Bandara Road, 27 Km Mile Stone, Nagpur,
Maharashtra, India |
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Tel No.: |
91-7116-242566 |
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Factory 4 : |
Chandrapur District, Village Naranda, Chandrapur, India |
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Factory 5 : |
S. No. 60, Village Borgaon,
Dhukheda Road, Umred - 441 203, Nagpur, Maharashtra, India |
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Tel No.: |
91-7116-243123 |
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Factory 6 : |
Paper Division : S.N. 115, Village
Patansaongi, Nagpur-Saoner Road, Nagpur, Maharashtra, India |
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Tel No.: |
91-7113-276458 |
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Factory 7 : |
Duplex Paper Unit : S.N. 481 Village Vadoda,
Bhandara Road, 27th Km Stone, Nagpur, Maharashtra, India |
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Tel No.: |
91-7109-279146 |
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Factory 8 : |
News Print Unit : S. N. 485, Village
Vadoda, Bhandara Road, 27th Km Stone, Nagpur, Maharashtra, India |
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Factory 9 : |
Agro Unit – I MIDC Industrial Area,
Hingana Road, Nagpur |
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Factory 10 : |
Agro Unit – II Durkheda Road, Umred
Dist. Nagpur. |
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Factory 11 : |
Duplex Board Unit / Writing and Printing Paper Unit / Pulp Mill Unit /
Newsprint Paper Unit / 18 MW Power Unit Village Vadoda, Tahsil –
Kamptee, Dist. Nagpur |
DIRECTORS
|
Name : |
Mr. Nandlal Bankatlal Maloo |
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Designation : |
Managing Director |
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Address : |
1418-C, Deshpande Layout, Wardhman Nagar, Central Avenue, Nagpur – 440
008, Maharashtra, India |
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Date of Birth/Age : |
07.04.1954 |
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Date of Appointment : |
02.12.1991 |
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Name : |
Mr. Sobhagmal Bankatlal Maloo |
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Designation : |
Non Executive Chairman |
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Address : |
1418-E, Deshpande Layout, Wardhman Nagar, Central Avenue, Nagpur – 440
008, Maharashtra, India |
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Date of Birth/Age : |
05.03.1941 |
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Date of Appointment : |
30.07.1999 |
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Name : |
Mr. Lalchand Bankatlal Maloo |
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Designation : |
Director |
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Address : |
1418-A, Deshpande Layout, Wardhman Nagar, Central Avenue, Nagpur – 440
008, Maharashtra, India |
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Date of Birth/Age : |
05.06.1960 |
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Date of Appointment : |
02.12.1991 |
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Name : |
Mr. Sunil Kumar Sobhagmal Maloo |
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Designation : |
Director |
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Address : |
1418-E, Deshpande Layout, Wardhman Nagar, Central Avenue, Nagpur – 440
008, Maharashtra, India |
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Date of Birth/Age : |
20.06.1969 |
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Date of Appointment : |
02.12.1991 |
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Name : |
Mr. Bajranglal Bankatlal Maloo |
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Designation : |
Director |
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Address : |
1418-B, Deshpande Layout, Wardhman Nagar, Central Avenue, Nagpur – 440
008, Maharashtra, India |
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Date of Birth/Age : |
01.05.1955 |
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Date of Appointment : |
02.12.1991 |
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Name : |
Mr. Bhargavaram Purushottam Ganu |
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Designation : |
Independent Director |
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Address : |
Plot No. 170, RPTS Road, Laxmi Nagar (West), Nagpur – 440 022,
Maharashtra, India |
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Date of Birth/Age : |
18.04.1942 |
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Date of Appointment : |
10.04.2006 |
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Name : |
Mr. Krishnamoorthy Melur Veera Kannan |
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Designation : |
Director |
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Address : |
Mahesh Building, 576-B, Jame Jamshed Road, Matunga, Mumbai – 400 019,
Maharashtra, India |
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Date of Birth/Age : |
17.11.1939 |
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Date of Appointment : |
10.04.2006 |
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Other Directorship : |
·
Advani Hotels and Resports (India) Limited CIN
No.: U99999MH1987PTC042891 ·
Kesar Enterprises Limited CIN
No.: U99999MH1995PTC007996 ·
Patel
Engineering Limited CIN
No.: U99999MH1949PTC007039 ·
Consolidated Construction Consortium Limited CIN
No.: U45201TN1997PTC038610 ·
Advani Pleasure Cruise Company Private Limited CIN
No.: U55101GA2000PTC002811 |
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Name : |
Mr. Yashpal Dhiman |
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Designation : |
Director |
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Address : |
Yash Plaza, Opp. Anand Gas Wardhman Nagar, Nagpur – 440 008,
Maharashtra, India |
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Date of Birth/Age : |
07.10.1955 |
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Date of Appointment : |
07.01.2002 |
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Name : |
Mr. Chandra Kishore Modi |
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Designation : |
Additional Director |
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Address : |
Flat No. 1202, Block No. 32, Seawoods Estate, Palm Beach Road, Nerul, Navi
Mumbai – 400 021, Maharashtra, India |
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Date of Birth/Age : |
18.08.1938 |
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Date of Appointment : |
02.03.2006 |
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Name : |
Mr. Arun Kedarnath Mago |
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Designation : |
Additional Director |
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Address : |
E-7, Nizamuddin West, New Delhi – 110 013, Delhi, India |
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Date of Birth/Age : |
27.09.1944 |
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Date of Appointment : |
30.06.2007 |
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Name : |
Mr. Manghat Gopalan Mani |
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Designation : |
Additional Director |
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Address : |
Opp. Khare Town, P.O. 402, Abhogi Apartment, Dharampeth, Nagpur – 440
010, Maharashtra, India |
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Date of Birth/Age : |
29.05.1936 |
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Date of Appointment : |
12.07.2007 |
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Name : |
Mr. R P Gupta |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Gyanesh Verma |
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Designation : |
Company Secretary |
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Name : |
Mr. Tarun K Singh |
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Designation : |
Company Secretary |
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Address : |
101, Jai Bhawani Society,
Central Avenue, Wardhman Nagar, Nagpur – 440 008, Maharashtra, India |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter
and Promoter Group |
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Indian |
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Individuals/ Hindu Undivided Family |
5301963 |
55.35 |
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Non-institutions |
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Bodies Corporate |
3341277 |
34.88 |
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Individuals |
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i. Individuals -i. Individual shareholders holding nominal share
capital up to Rs 0.100 million |
644953 |
6.73 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 million |
284680 |
2.97 |
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Any Other (specify) |
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Clearing Member |
5605 |
0.06 |
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Non Resident Indian (Repat) |
122 |
0.00 |
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Total |
9578600 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and sale of solvent extraction medium and
craft paper. |
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Products : |
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Exports : |
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Countries : |
·
Srilanka ·
Bangladesh ·
Nepal |
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Imports : |
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Countries : |
·
USA ·
UK |
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Terms : |
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Selling : |
L/C, Cash and Credit (30 days / 60 days / 90 days) |
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Purchasing : |
L/C, Cash and Credit (30 days / 60 days / 90 days) |
PRODUCTION STATUS
(As on 31.03.2008)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
De-oiled Cake and Oil (Unit I) |
TPD |
300 |
44469.70 |
|
De-oiled Cake and Oil (Unit II) |
TPD |
800 |
78608.70 |
|
Refined Oil (Unit I) |
TPD |
70 |
13670.00 |
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Refined Oil (Unit II) |
TPD |
100 |
15854.60 |
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Duplex Paper Board |
TPD |
80 |
24756.70 |
|
Newsprint |
TPD |
80 |
32091.90 |
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Writing and Printing Paper |
TPD |
150 |
42080.00 |
|
Pulp Mill |
TPD |
200 |
15254.09 |
|
Power |
MWPH |
18 |
97263MW |
GENERAL
INFORMATION
|
Customers : |
Dealers |
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No. of Employees : |
700 |
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Bankers : |
·
Punjab National Bank BO MCB, Surya Nagar Branch, Kalmana Road,
Nagpur – 440 008, Maharashtra, India ·
Bank of Baroda Gokul Bhavan, Near City Post Office,
Itwari, Nagpur – 440 008, Maharashtra, India ·
Andhra Bank ·
Axis Bank ·
Bank of India ·
Bank of Maharashtra ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IndusInd Bank ·
State Bank of India ·
State Bank of Patiala ·
State Bank of Hyderabad ·
State Bank of Mysore ·
State Bank of Bikaner and Jaipur ·
SICOM Limited |
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Banking
Relations : |
Good |
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Auditors : |
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|
Name : |
Mr. Vijay Ramani Chartered Accountants |
|
Address : |
Demble Ramani and Company, Abhyankar Road, Sitabuldi, Nagpur – 440
010, Maharashtra, India |
CAPITAL STRUCTURE
(As on
31.03.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10242200 |
Equity Shares |
Rs.10/- each |
Rs.102.422
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
102.422 |
96.093 |
98.093 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2104.917 |
1234.603 |
600.377 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2207.339 |
1330.696 |
698.470 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5865.895 |
1726.319 |
1115.240 |
|
|
2] Unsecured Loans |
1017.214 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
6883.109 |
1726.319 |
1115.240 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
307.333 |
221.089 |
|
|
Cement and Others |
0.000 |
329.058 |
72.653 |
|
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|
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TOTAL |
9090.448 |
3693.406 |
2107.452 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1749.514 |
1705.668 |
1219.567 |
|
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Capital work-in-progress |
4772.485 |
145.158 |
24.765 |
|
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INVESTMENT |
83.498 |
49.203 |
40.430 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2167.380
|
1357.216
|
801.799 |
|
|
Sundry Debtors |
292.150
|
332.948
|
274.990 |
|
|
Cash & Bank Balances |
53.624
|
47.736
|
50.012 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
589.789
|
787.091
|
217.204 |
|
Total
Current Assets |
3102.943
|
2524.991
|
1344.005 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
608.094
|
723.444
|
495.047 |
|
|
Provisions |
45.342
|
43.615
|
26.268 |
|
Total
Current Liabilities |
653.436
|
767.059
|
521.315 |
|
|
Net Current Assets |
2449.507
|
1757.932
|
822.690 |
|
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MISCELLANEOUS EXPENSES |
35.444 |
35.445 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9090.448 |
3693.406 |
2107.452 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
6491.801 |
5239.337 |
5104.633 |
|
|
Other Income |
23.108 |
11.289 |
17.239 |
|
|
Total Income |
6514.909 |
5250.626 |
5121.872 |
|
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|
|
|
|
|
|
Profit/(Loss) Before Tax |
701.421 |
472.641 |
291.180 |
|
|
Provision for Taxation |
158.485 |
61.571 |
11.171 |
|
|
Profit/(Loss) After Tax |
542.936 |
411.070 |
280.009 |
|
|
|
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|
|
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Earnings in Foreign Currency : |
236.541 |
113.937 |
NA |
|
|
|
|
|
|
|
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Export Turnover |
1619.602 |
1014.590 |
942.866 |
|
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Imports : |
|
|
|
|
|
Raw Materials |
639.995 |
789.437 |
NA |
|
|
Capital Goods |
11.888 |
1.900 |
NA |
|
|
Total Imports |
651.883 |
791.337 |
NA |
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Cost of goods sold |
4237.053 |
0.000 |
0.000 |
|
|
Manufacturing Expenses |
747.527 |
0.000 |
0.000 |
|
|
Selling Expenses |
213.198 |
0.000 |
0.000 |
|
|
Raw Material Consumed |
0.000 |
3044.480 |
3261.626 |
|
|
Consumption of stores and spares parts |
0.000 |
340.208 |
340.054 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
52.788 |
(47.336) |
|
|
Salaries, Wages, Bonus, etc. |
121.487 |
76.952 |
66.470 |
|
|
Managerial Remuneration |
6.920 |
3.660 |
3.660 |
|
|
Payment to Auditors |
0.200 |
0.200 |
0.200 |
|
|
Interest |
179.420 |
122.898 |
149.288 |
|
|
Insurance Expenses |
0.000 |
9.363 |
9.603 |
|
|
Administrative Expenses |
50.893 |
0.000 |
0.000 |
|
|
Power & Fuel |
0.000 |
370.561 |
341.306 |
|
|
Depreciation & Amortization |
256.790 |
183.986 |
204.666 |
|
|
Other Expenditure |
0.000 |
572.889 |
501.155 |
|
Total Expenditure |
5813.488 |
4777.985 |
4830.692 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Sales
Turnover |
1242.300 |
1104.900 |
|
Other Income |
1.500 |
0.400 |
|
Total
Income |
1243.800 |
1105.300 |
|
Total
Expenditure |
893.100 |
820.000 |
|
Operating
Profit |
350.700 |
285.300 |
|
Interest |
52.800 |
62.700 |
|
Gross
Profit |
297.900 |
222.600 |
|
Depreciation |
55.700 |
70.600 |
|
Tax |
30.000 |
30.000 |
|
Reported
PAT |
212.200 |
122.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
8.33
|
7.83 |
5.47 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.80
|
9.02 |
5.70 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.45
|
11.17 |
11.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.36 |
0.42 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.41
|
1.87 |
2.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.75
|
3.29 |
2.58 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
The Company achieved a turnover of Rs.6491.800 millions during the
period, as compared to Rs.5239.300 millions during the previous year. This
improved performance can be attributed to good demand for Soya products and
full effect of Writing Printing Paper Unit which has completed the second full
year of its operations. The Profit after Tax is Rs.542.900 millions against
Rs.411.000 millions in the previous year registering an increase of %. The Cash
accruals are at Rs.799.700 millions, which grew % over previous year’s
Rs.594.900 millions.
MANAGEMENT
DISCUSSION AND ANALYSIS STATEMNENT
Performance of the
Company
The company posted yet another year of impressive results, validating
the corporate strategy of creating of multiple drivers of growth. This performance
has to be viewed in the backdrop of a significantly challenging business
environment in Paper industry besides increase in the raw material cost of the
soybean seeds along with other input costs. Needless to add, the results must
give the shareholders great satisfaction and confidence for the years to
come.
Gross turnover of the Company for the year 2007-08 grew by 23.90% to
Rs.6491.800 millions, driven by good top line growth across all business
segments of the company. Pre tax profit (before exceptional items) increased by
48.40% to Rs.714.290 millions, while post tax profit (before exceptional items)
at Rs.542.935 millions registered a growth of 32%. Inclusive of exceptional
item, the company’s profit after tax was Rs.542.935 millions. Cash flow from
the operations was Rs.799.726 millions during the year.
In order to sustain growth and to provide the sufficient fund for the
upcoming cement projects of the company the Board of Directors recommends
transferring the profit of Rs.54.293 millions to the Reserves for utilizing the
same for the future growth of the company as internal accruals.
BUSINESS SEGMENT
Solvent Extraction
Plant
The company has been among the leaders in delivering superior value to
consumers in terms of quality of products. Maintaining the customer focus,
several initiatives were launched during the year like new packaging system,
research and development for improving soya seeds etc. These efforts resulted
in growth of exports of the company’s products from Rs.10.145 millions to
Rs.16.196 millions, an increase of 60% over and above export turnover of the
products for the same period of last year.
Agro Unit I
During the period the Unit produced 44469.70 MT of Soya Deoiled Cake
(DOC) and 13670.00 MT of Refined Oil respectively as compared to 40370 MT and
13732 MT respectively during the previous year. The Unit recorded a turnover of
Rs.1510.228 millions during the year. Registering a growth of 48% over last
year. The turnover has registered increase mainly due to good demand of DOC in
the international market. The company achieved a remarkable growth in the
Profit before tax as well as profit after tax as compared to the last year’s
performance. The profit before tax of the company increased by 226% to
Rs.278.441 millions in 2008 from Rs.82.466 millions of last year. The Profit
after tax (PAT) also increased by 191% from Rs.72.666 millions in FY 2007 to
Rs.211.266 millions in the FY 2008.
Agro Unit II
Better demand for DOC in the international market resulted in all round
improved performance of this unit. During the period the Soya DOC and Refined
Oil Production were 78608.70 MT and 15854.60 MT as compared to 56867 MT and
14312 MT respectively in the previous year. The turnover of the Unit was
Rs.2019.507 millions during the year recording a growth of 61% over the
turnover of the last year for the same period accompanied by significant growth
in profits from this unit as well. The PAT of this unit increased from
Rs.91.803 millions to Rs.254.899 millions, a growth of 178% over the PAT of
last year for the same period.
PAPER SEGMENT
The paper business witnessed a mixed year with some segments of business
performing well and the others sliding a little. The Pulp Unit of the company
had a full year of operations.
Duplex Unit
Duplex paper segment of the industry had a slightly adverse year. In
line with the industry performance, this unit produced 24756.7 MT as compared
to 26530 MT in 2006-07 and contributed an amount of Rs.418.646 millions to the Company’s
Turnover. The turnover decreased marginally in comparison to last year.
Increase in raw material cost and lower realization impacted the profitability
of this unit to some extent. The profit reduced from Rs.8.537 millions to
Rs.6.750 millions.
Newsprint Unit
The Company manufacturers four varieties of Newsprint paper and caters
to the demand of new paper industry all over the country. During the year
Company manufactured 32091.90 MT of Newsprint Paper. The turnover of the Unit
was at Rs.702.695 millions. The Profit after tax of the unit increased
marginally in comparison to last year’s profit i.e. from Rs.66.994 millions to
Rs.74.188 millions in FY 2008.
Writing and
Printing Paper Unit
The Company is manufacturing various verities of Paper viz. Cream wove,
Map litho and Copier Paper. During the year Company produced 42080 MT of
writing printing paper. This paper segment registered a turnover of Rs.1224.517
millions as compared to Previous Year of Rs.1485.163 millions. The lower
turnover was because of a short period shut down to rectify a technical problem
in the plant. This also resulted in loss of Rs.65.474 millions during the year
While, the unit had a lower EBIDTA compared to last year, it is important to
note that the net loss is on account of depreciation charge.
Pulp Mill Unit
The Pulp Mill of the company completed a smooth and full year of
operations. It is operating at about 40% capacity and catering to requirement
of superior quality of virgin pulp for the writing and printing paper unit. The
company produced pulp of 15254.09 MT of pulp during the last year. Bagasse and
wheat straw from the main raw materials for producing the pulp. This being the
first year of full operations, the unit performed quite well, registering a
turnover was Rs.255.021 millions. The unit pulp mill operations suffered a
minor loss after tax, mainly because of high depreciation charge. The unit had
an impressive EBIDTA of about 28%, giving them confidence about good
performance by pulp mill in the years to come.
Co-generation
(Power) Unit
During the year Total Power Generation during the current financial year
was 87437 MW with the turnover at Rs.361.185 millions showing a growth of 9%
over previous year. The Company has definitely taken a bold step towards Energy
Conservation and cost cutting on overheads. This unit is supplying power to
Paper Units for captive consumption, helping lower cost of power in producing
paper.
Cement Unit
The Company’s important business interest – Cement production, has shaped
very well since last reported. This unit of 3 mn tones capacity being set up at
a capital cost of Rs.8140 millions at Chandrapur should be ready to commence
production in the 3rd quarter of the FY 2008-09. It would be a
significant milestone in the corporate journey of the company. The Directors
have identified Cement as a thrust area for future development and growth the
company shall be making all the efforts to emerge as a significantly large
producer of quality cement in the country. It is towards this endeavour that
the company is creating reserves out of the profits of this year so as to meet
the future financial needs.
Speciality Board
Unit
The Company is setting up at a cost of Rs.820 millions a Special Board
Unit for manufacturing superior quality of duplex board. The work of setting up
the unit is progressing well it is expected that the production will start in
the 3rd quarter of the financial year 2008-09. This unit is likely
to be one of top five plants of the India. This plant will add significantly to
the revenue and bottom-line of the company.
TRADE REFERENCES
·
Indo Group Companies Private Limited – Nagpur
·
Indus Synergy Private Limited - Nagpur
WEB DETAILS
Profile
Murli agro Products Limited which has been rechristened as Murli Industries
Limited following the adoption of a special resolution as provided for in the
Company's Act, 1956 came into being on 2 nd December, 1991. Headquartered in
Wardhaman Nagar, heart of downtown Nagpur, the Company had originally launched
its operations with a Solvent Extraction Plant. Thanks to sound business
strategies employed by us and a competent work force they started tasting mega
successes in the early stages of the industrial operations themselves. This
prompted them to diversify into paper manufacturing and they set up a paper
plant in 1997. The Company became a Public Limited. Company entity in 1993. The
successes they achieved with a vengeance in all the subsequent moves helped
them overshadow the rivals and attain an enviable position in corporate world
in a relatively short span.
The commissioning
of two Captive co-generation Power Units with combined capacity of 18 MW which
marked a turn around in Company's fortunes saw an upswing in the production
activities by ensuring constant supply of power.
The promoters of
the Company are vastly experienced in the production and marketing of various
agro-based products like Soya de-oiled cake, Refined Edible Oil and paper
products like Duplex, News Print and Printing Paper and Printing Paper, Cream
Wove, Map Litho Paper, Copier, etc. The entire credit of the robust financial
health of the Company undoubtedly goes to their far-sightedness, prudent fiscal
management, proficiency in handling industrial operations on a massive scale
and a host of other attributes which are a pre-requisite for the success of any
business.
Management
Subject which is now a household name in India is steaming ahead with
its mega expansion programme with active involvement of its Directors who have
a huge wealth of experience behind them.
Being a force to
reckon with in the fields of paper, solvent extraction and power generation for
a considerable length of time is a huge achievement by any standard which has
been possible thanks mainly to sound managerial policies which are fine-tuned
periodically to suit the changing needs of business scenario. The company
achieved the turnover from Rs.1951.30 Million as on 31.03.2002 to Rs.5239.30
Million as on 31.03.2007 during last Five years. The profit after tax also
increased from Rs.31 Million to Rs.411 Million during these years. Market
capitalization increased was Rs. 176.90 Million as on 31.03.2002 and now it is
Rs.9578.60 Million as on 31.03.2007 which is a growth of 56 times over and
above of Market Cap as on 31.03.2002.
A competent work
force, extensive modernisation, able supervision, etc. are among a host of
factors which are playing a critically important role in the process of
evolution of the company which the market watchers are also terming as
revolution the company is witnessing at the moment.
There is no
gainsaying the fact that the upcoming cement project, Specialty Board Unit as
well newly- launched Pulp Mill all will go a long way in giving a concrete
shape to the desire to win a place of prominence in the industrial sector
thereby making it a magnet for prospective investors.
Achievements
- Subject is recognized as one of Central
India's earliest organized corporate entities in what was at one point a
predominantly an unorganized sector.
- It has carved a niche for itself in
customized paper products segments.
- It achieved EBIDTA margin of 16.25%
(2006-07) which is one of the highest in Indian paper industry.
- They were the first to set up a large
Pulp Mill for captive virgin pulp availability; this backward integration
is expected to supply major portion of the company's overall raw material
needs. The company expects to meet approximately 40% of its raw material
needs from this backward integration.
- Subject became one of the TOP ten major
players in the Indian Paper Industry by producing 105,386 Tonnes of paper
in the year 2006-07.
- Subject has achieved turnover of Rs.500
million in the year 2006.
Subject is proud of enjoying one of Top ten players' position in India's
writing printing and Duplex Board and News Print and Printing Paper market
holding a market share of about 2%.
Exports
The Company is already in the Exports Market in a big way by directly
and indirectly exporting its products like Quality Paper of different
varieties, Deoiled cake and is enjoying the Status of EXPORT HOUSE since long.
During
the year ended on 31st March 2007, the Company achieved Exports of Rs.1014.59
Million out of total turnover of Rs. 5239.34 Million representing in percentage
terms Exports of about 20% of total turnover.
However,
the journey does not stop here and we have kept ambitious targets of
unquestionable supremacy in the Global Market to improve the share of Exports
Sales by improving on both Quality and volume, incessantly.
It
is heartening to note that they are installing imported ‘Speciality Board Unit’
adjacent to our factory in Vadoda and same is expected to produce 225 MT of SBS
(Solid Bleach Sulphate) Board on daily basis. The Paper produced at this Plant
will be superior version of SBS Board and will largely cater to Overseas Market
besides premium domestic Markets. This Plant will alone add more than Rs.1000
millions to the Export turnover of the Company after its commissioning which is
expected during the year 2007-08.
They have adopted following Strategies for improving the share of the
Global Market:
·
Enlarge and improve the share of different paper products by directly
exporting the products to various countries.
·
Constantly enriching the Quality of the various Paper products to command
premium in the Global Market.
·
Establish direct contact with the Large established Buyers and eliminate
middle man to establish long term relationship and improve upon the margins.
·
Establish own Logistics Centre and Clearing and forwarding activity to
serve better to the Overseas buyers and earn equitable margin for the Company.
·
Establish the MURLI Brand in the overseas Market by
regular campaigns especially after the commissioning of ‘Speciality Board
unit’.
·
Increase the share of Direct Exports of Deoiled Cakes/Meal by nominating
ship loads of Cargo.
·
Participate in the Fairs and Exhibitions.
·
Establish own ‘International Trading Division’ to
clinch the large deals in the overseas Market for various similar products of
the Company and other products purely for the purpose of Trading and ‘Add
Value’.
All these strategies will gradually enhance the share of the Sales in
the Global Market keeping with the trend of business which is witnessing
dismantling of national boundaries in the ever increasing free regime of Global
Trade and industry.
Existing Projects
·
Duplex Paper
·
News Print and Printing Paper
·
Writing and Printing Paper
·
Solvent
·
Pulp
·
Power
Future Projects
·
Cement
·
SBS Board
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 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.47.94 |
|
UK Pound |
1 |
Rs.72.07 |
|
Euro |
1 |
Rs.64.70 |
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 |
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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
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 |
|