MIRA
INFORM REPORT
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Report Date : |
18.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
SRF POLYMERS LIMITED |
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Registered Office : |
C-8, Safdarjung Development Area, New Delhi, Delhi-110016 |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
28.03.2000 |
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Com. Reg. No.: |
104779 |
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CIN No.: [Company
Identification No.] |
U92199DL2000PLC104779 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS15442A, DELS20335A |
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PAN No.: [Permanent
Account No.] |
AAFCS9521A |
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Legal Form : |
A Public limited liability company. The company`s shares are Listed on
the Stocks Exchange. |
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Line of Business : |
Manufacturing of Engineering Plastics, Polyester Films, etc. It is
also engaged in fishnet business. |
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 3107315 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a reputed company having satisfactory track. It is a part
of Arun Bharat Ram Group, a medium sized industrial house of Northern India.
Trade relations are fair. Payments are reported as slow but correct. The company can be considered normal for business dealing at usual
terms and conditions. |
LOCATIONS
|
Registered Office : |
C-8, Safdarjung Development
Area, New Delhi, Delhi-110016
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Plant : |
ENGINEERING
PLASTICS BUSINESS ·
Manali Industrial Area, Manali, Chennai-600068 ·
Plot No. 14-C, Sector 9, Integrated Industrial Estate, Pantnagar,
Distt. Udham Singh Nagar, Uttarakhand Contact Details : 91-11-26531693-96 (Mr. Prashant Yadav) Email ids: prashant@srf.com, mgkmenon@srf.com, srihariji@srf.com INDUSTRIAL YARN
BUSINESS ·
Manali Industrial Area, Manali, Chennai-600068, Tamil Nadu. FISHNET BUSINESS ·
S1B, Amar Sindur, 43, Pantheon Road, Egmore, Chennai, 600008 Tel.: 91-44-42016692,91-44-42016693 Fax: 91-44-42028997 Email: tuflon@srf.com POLYESTER FILMS
BUSINESS ·
Plot No. 12, Rampura, Ramnager Road, Kashipur District, Udham Singh
Nager, Uttaranchal. |
DIRECTORS
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Name : |
Mr. Arun Bharat Ram |
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Designation : |
Chairman |
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Other Directorships : |
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Name : |
Mr. Ashish Bharat Ram |
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Designation : |
Director |
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Name : |
Mr. Rajat Lakhanpal |
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Designation : |
Whole-time Director And Company Secretary |
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Name : |
Mr. Kartikeya Bharat Ram |
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Designation : |
Director |
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Name : |
Mr. S. P. Agarwala |
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Designation : |
Director |
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Name : |
Mr. K Ravichandra |
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Designation : |
Director |
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Name : |
Nr. Vinod Kumar Kala |
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Designation : |
Director |
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Name : |
Mr. Mukul Khandelwal |
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Designation : |
Director |
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Name : |
Mr. Amitav Virmani |
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Designation : |
Director |
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Name : |
Dhirendra Datta |
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Designation : |
Additional Director |
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Name : |
Mr. Ritesh Kumar |
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Designation : |
Director-Nominee Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As On : 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
4798256 |
74.36 |
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Mutual Funds And UTI |
909 |
0.01 |
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Banks, Financial Institutions, Insurance Companies |
24755 |
0.38 |
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Central Government/ State Government(s) |
6665 |
0.10 |
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Foreign Institutional Investors |
250 |
- |
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Private Corporate Bodies |
383872 |
5.95 |
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Indian Public |
933891 |
14.48 |
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NRIs/ OCBs |
303620 |
4.71 |
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Other (including shares in transit) |
397 |
0.01 |
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Total |
6452615 |
100.00 |
As On : 31.03.2008
|
Category Of Shareholder |
Total 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 |
7 |
0.00 |
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Central Government/State Government(s) |
0 |
0.00 |
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Bodies Corporate |
4798249 |
74.36 |
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Financial Institutions/Banks |
0 |
0.00 |
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Any Other (specify) |
0 |
0.00 |
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Sub-Total |
4798256 |
74.36 |
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Foreign |
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Individuals (Non-Resident
Individuals/Foreign Individuals) |
0 |
0.00 |
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Bodies Corporate |
0 |
0.00 |
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Institutions |
0 |
0.00 |
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Any Other(specify) |
0 |
0.00 |
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Sub-Total |
0 |
0.00 |
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Total Shareholding of Promoter and Promoter Group |
4798256 |
74.36 |
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Public Shareholding |
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Institutions |
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Mutual Funds/UTI |
909 |
0.01 |
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Financial Institutions/ Banks |
834 |
0.01 |
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Central Government/State Government(s) |
6665 |
0.10 |
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Venture Capital Funds |
0 |
0.00 |
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Insurance Companies |
23921 |
0.37 |
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Foreign Institutional Investors |
250 |
0.00 |
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Any Other (specify) |
0 |
0.00 |
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Sub-Total |
32579 |
0.50 |
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Non-Institutions |
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Bodies Corporate |
383872 |
5.95 |
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Individuals- Individual shareholders holding nominal
share capital upto Rs.0.100 millions |
773217 |
11.98 |
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Individual shareholders holding nominal
share capital in excess of Rs. 0.100 millions |
160674 |
2.49 |
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Any other (specify) Non-Resident Indians |
303620 |
4.71 |
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Any other (specify) Clearing Member |
351 |
0.01 |
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Any other (specify) Trust |
46 |
0.00 |
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Sub-Total |
1621780 |
25.13 |
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TotalPublic Shareholding |
1654359 |
25.64 |
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Shares held by Custodians and against which Depository Receipts have
been issued |
0 |
0.00 |
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Grand Total |
6452615 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Engineering Plastics, Polyester Films, etc. It is
also engaged in fishnet business |
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Products : |
Products
Description ITC Code Synthetic Filament Yarn 54.02 Nylon Compounding Chips 39.08 Polyester Film 39.20 |
PRODUCTION STATUS
As On :31.03.2008
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Nylon Chip |
MT |
6600 |
6600 |
1391.62 |
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Nylon Compounding Chips |
MT |
14500 |
14500 |
6144.66 |
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Nylon Twine |
MT |
1440 |
1440 |
499.66 |
GENERAL
INFORMATION
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Customers : |
· Maruti Udyog Limited · Telco · Bajaj Auto Limited · Ford India Limited · Hyundai Motors India Limited · Fiat India Limited · Hero Honda Motors Limited · Yamaha Motors Limited · Whirlpool of India Limited · BPL · Phillips India Limited · Visteon |
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No. of Employees : |
2000 |
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Bankers : |
·
State Bank Of Patiala ·
ICICI Bank Limited . |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Thakur, Vaidyanath Aiyar and Company Chartered Accountants |
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Associates/Subsidiaries : |
SRF Polymers Investments Limited |
CAPITAL STRUCTURE
As On :31.03.2008
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
5000000 |
Preference Shares |
Rs.10/- each |
Rs.50.000 millions |
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Total |
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Rs.150.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6452615 |
Equity Shares |
Rs. 10/-
each |
Rs.64.526
millions |
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
64.526 |
64.526 |
64.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
556.937 |
696.866 |
641.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
621.463 |
761.392 |
705.600 |
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LOAN FUNDS |
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1] Secured Loans |
816.573 |
759.852 |
331.700 |
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2] Unsecured Loans |
490.644 |
344.335 |
129.500 |
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TOTAL BORROWING |
1307.217 |
1104.187 |
461.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1928.680 |
1865.579 |
1166.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
826.315 |
222.673 |
82.400 |
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Capital work-in-progress |
0.000 |
417.477 |
104.900 |
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INVESTMENT |
786.910 |
786.910 |
786.900 |
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DEFERREX TAX ASSETS |
81.368 |
29.597 |
N.A. |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
318.268
|
394.933 |
336.200 |
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Sundry Debtors |
130.671
|
218.316 |
268.900 |
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Cash & Bank Balances |
32.443
|
108.101 |
38.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
264.998
|
88.094 |
111.800 |
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Total
Current Assets |
746.380
|
809.444 |
755.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
508.999
|
393.890 |
556.700 |
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Provisions |
3.294
|
6.632 |
5.900 |
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Total
Current Liabilities |
512.293
|
400.522 |
562.600 |
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Net Current Assets |
234.087
|
408.922 |
192.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1928.680 |
1865.579 |
1166.800 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS0 |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
1631.791 |
1566.249 |
1841.100 |
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Other Income |
65.535 |
84.795 |
35.000 |
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Total Income |
1697.326 |
1651.044 |
1876.100 |
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Profit/(Loss) Before Tax |
(188.920) |
60.180 |
60.300 |
|
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Provision for Taxation |
48.988 |
1.237 |
12.400 |
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Profit/(Loss) After Tax |
(139.932) |
61.417 |
47.900 |
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Imports : |
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Raw Materials |
831.627 |
669.709 |
N.A. |
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Stores & Spares |
8.422 |
0.185 |
N.A. |
|
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Capital Goods |
0.000 |
32.330 |
N.A. |
|
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Others |
0.000 |
0.000 |
N.A. |
|
Total Imports |
840.049 |
702.224 |
N.A. |
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Expenditures : |
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Administrative Expenses |
411.537 |
357.690 |
N.A. |
|
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Raw Material Consumed |
1251.611 |
1200.492 |
N.A. |
|
|
Increase/(Decrease) in Finished Goods |
51.531 |
(65.151) |
N.A. |
|
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Interest |
124.073 |
76.013 |
N.A. |
|
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Depreciation & Amortization |
47.494 |
21.820 |
N.A. |
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Total Expenditure |
1886.246 |
1590.864 |
N.A. |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2008
1stQuarter |
30.09.2008
2ndQuarter |
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Sales Turnover |
397.200 |
445.500 |
|
Other Income |
1.500 |
27.300 |
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Total Income |
398.700 |
472.800 |
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Total Expenditure |
434.440 |
466.100 |
|
Operating Profit |
-35.700 |
6.700 |
|
Interest |
45.600 |
51.200 |
|
Gross Profit |
-81.300 |
-44.500 |
|
Depreciation |
15.300 |
15.500 |
|
Tax |
0.200 |
-2.400 |
|
Reported PAT |
-64.000 |
-32.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
1.74
|
1.07 |
0.67 |
|
Long Term Debt Equity Ratio |
1.35
|
0.93 |
0.67 |
|
Current Ratio |
1.14
|
1.37 |
1.44 |
|
Turnover Ratios |
|
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Fixed Assets Ratio |
2.48
|
5.69 |
9.54 |
|
Inventory |
4.87
|
4.66 |
5.74 |
|
Debtors |
9.95
|
6.99 |
7.09 |
|
Interest Cover Ratio |
-0.52
|
1.79 |
1.87 |
|
Operating Profit Margin(%) |
-1.00
|
9.28 |
7.57 |
|
Profit Before Interest And Tax Margin(%) |
-3.74
|
8.00 |
7.05 |
|
Cash Profit Margin(%) |
-5.33
|
4.89 |
3.12 |
|
Adjusted Net Profit Margin(%) |
-8.06
|
3.61 |
2.60 |
|
Return On Capital Employed(%) |
-3.42
|
8.98 |
11.38 |
|
Return On Net Worth(%) |
-20.25
|
8.37 |
7.01 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject has been
created through the de-merger of three business of engineering plastics,
fishnet twine and polyester films from SRF Limited with effect from January 1,
2001.
Subject has been created following the demerger of the three
businesses-Engineering Plastics, Fishnet Twines and Polyester Films from
company with effect from 01.01.2001. The Engineering Plastics business caters
to the Nylon engineering plastics requirements of companies in the automobiles,
white goods, electrical goods, telecom cables, textile machinery and
electronics sectors. The polyester Films business deals with products that are
used by industries like packaging, metallising, cable and hot stamping foils.
Fishnet Twines is a
niche business where as leaders in the branded segment, the company sells fishnets,
fishing lines, spindles, tapes, nylon belts and straps as well as velcrotapes
to end users in India, Sri Lanka, Uganda and Nigeria.
The engineering plastics business has been certified with QS9000 and ISO
14001 certifications. The company’s venture into Polyester Films is yet another
extension of the group philosophy to strive to be the best. The financial year
1999-2000 was a turnaround year for Polyester Films business. The plant
operated at optimum capacity and production at 3264 MT was 36% higher than
1998-99.The company has achieved significant improvement in input-output ratio
with overall efficiency which was improved to 64% from 61% in 1998-99.
SRF has set up a new plant to cater to the Polyester Film business at the
Export Promotion Zone in Indore,Madhya Pradesh,which has increased the capacity
to 25000 Tonnes per annum.
The company is India's leading manufacturer of high quality Fishnet Twines. It
is being marketed under the brand name of Tuflon, the company’s Fishnet Twines
match international quality and come in constructions of 210 Denier and 110
Denier yarns.The company also offers Fishnet Twines made from monofilament
yarn.
The company has decided to set up a manufacturing facility for Fishnet Twine at
Manali Industrial area in Chennai with the capacity of 1800 MT per annum at a
cost of Rs. 98.000 millions.
Milestones
|
1970 |
Incorporation of
the Company |
|
1974 |
Commissioning of
Nylon Tyre Cord Fabric plant at Chennai |
|
1977 |
Introduction of
Fishnet Twines at Chennai |
|
1979 |
Introduction of
Nylon Engineering Plastics at Chennai |
|
1981 |
Commissioning of
Chafer and Belting Fabrics project at Tiruchirapalli, Tamilnadu |
|
1985 |
1] Takeover of Shriram
Bearings Limited., and Shriram Needle Bearing Industries Limited. 2] Commissioning
of Industrial Fabrics Plant at Tiruchirapalli
|
|
1986 |
1] Commissioning of
Coated Fabrics project at Tiruchirapalli 2] Commencement of
commercial production at SRF Nippondenso Limited. 3] Commencement of
operations at SRF Finance Limited. |
|
1989 |
Commencement of
commercial production of Florochemicals at Bhiwadi, Rajasthan |
|
1993 |
Adoption of Total
Quality Management (TQM) |
|
1994 |
1] Divestment of
equity in SRF Nippondenso Limited 2] Commencement of
Halon production based on in-house R&D at Bhiwadi 3] Commencement of
operations at SRF International Limited. |
|
1995 |
1] Acquisition of
Ceat's Nylon Tyre Cord & Fabrics plant at Gwalior, Madhaya Pradesh 3] Commencement of
Vision Care Project at Bangalore |
|
1996 |
Commencement of
Tyre Cord Fabric production at SRF Overseas plant in Dubai |
|
1997 |
Divestment of
equity in SRF Finance Limited |
|
1998 |
1] Divestment of
Ophthalmic Lenses business 2] Closure of SRF International
Limited. 3] Equity rights
issue taken out of Rs 430 miillions. |
|
1999 |
1] Acquisition of
DuPont Fibers Limited, subsequently renamed Nylon Tyrecord Fabric Limited. 2] ISO 9000
certification awarded to all SRF plants |
|
2000 |
Divestment of
Shriram Bearings Limited and Shriram Needle Bearing Industries Limited. |
|
2001 |
Capacity of Nylon
Tyre Cord Fabrics doubled, SRF becomes 7th largest merchant manufacturer in
the world. |
|
2002 |
1] Merger of Tyrecord
Fabric Limited with SRF Limited. 2] Polyster Films,
Fishnet Twines and Engineering Plastics businesses spun off a separate entity
– SRF Polymers Limited. |
|
2003 |
SRF emerges as the
5th largest Belting Fabrics manufacturer in the world. |
|
2004 |
SRF Acquires
Polyester Films Business. |
|
2004 |
SRF Industrial
Synthetics Business wins the Deming Award. |
Profile
The company has been created following the demerger of the three
businesses - Engineering Plastics, Fishnet Twines and Polyester Films from
company with effect from January 1, 2001. In 2002-03, SRF Polymers revenues
stood at Rs. 1482 millions.
The Engineering
Plastics business caters to the Nylon engineering plastics
requirements of companies in the automobiles, white goods, electrical goods,
telecom cables, textile machinery, and electronics sectors.
Customers like Maruti, Telco, Bajaj, Ford, Hyundai, Fiat, Hero Honda, Yamaha,
Whirlpool, BPL, Phillips and Visteon are testimony to the high quality of products and services.
The Polyster Films
business deals with products that are used by industries like
packaging, metallising, cable and hot stamping foils. Currently, the company is
setting up a new plant to cater to the Polyester Film business at the Export
Promotion Zone in Indore, Madhya Pradesh, which will increase capacity to 25000
tpa by September 2004.
This will enable the SRF Group to deliver a wide range of
Polyester Film products to discerning clients like Paper Products and
Rollatainers.
Fishnet Twines
is a niche business where as leaders in the branded segment we sell fishnets,
fishing lines, spindles, tapes, nylon belts and straps as well as velcrotapes
to end users in India, Sri Lanka, Uganda and Nigeria.
Engineering Plastics
In 1979, the company pioneered into a relatively unknown area, of nylon
engineering plastics. The challenge was to initiate a mini-revolution of sorts,
converting more and more metal applications into plastics. The engineering
plastics business manufactures and markets TUFNYL range of Nylon 6 and Nylon 66
engineering plastic compounds and used as the raw material for various
applications in automobiles, white goods, electrical, textile machinery, and
electronics sectors.
The company’s Engineering Plastics Business has been certified with
QS9000 and ISO 14001 certifications. A sophisticated technology and getting
together a competent team of professionals to form an organisation geared
towards total quality are the essential prerequisites for success at the
Engineering Plastics business. At the company offer all this and more.
Polyester Films
The company’s venture into Polyester Films is yet another extension of
the group philosophy to strive to be the best. It was the intensity of
commitment on the one hand, and harmonious teamwork of our people on the other,
that empowered us to meet the challenge of reviving a moribund unit.
1999-00 was a
turnaround year for Polyester Films business. The plant operated at optimum
capacity and production at 3264 MT was 36% higher than 1998-99. Significant
improvement was achieved in input-output ratio with overall efficiency
improving to 64% from 61% in 1998-99.
Currently, the company is setting up a new plant to cater to the Polyester Film
business at the Export Promotion Zone in Indore, Madhya Pradesh, which will
increase capacity to 25000 tpa by September 2004.
Fishnet Twines
The company is India's leading manufacturer of high quality Fishnet
Twines. Marketed under the brand name of Tuflon, The company’s Fishnet Twines
match international quality and come in constructions of 210 Denier and 110
Denier yarns. SRF also offers Fishnet Twines made from monofilament yarn (both
N6 & N66) of the following constructions: 0.16; 0.20; 0.23; 0.28; 0.032 to
0.70.
Profile of Dr. Bharat Ram
He
was Born on the 15th of October, 1914 in Delhi, Dr. Bharat Ram is an
Economics graduate from St. Stephen’s College. After his graduation, he joined
DCM Limited in 1935 as an apprentice and rose to the position of Chairman and
Managing Director in 1958. Over the next quarter of a century DCM attained a
pre-eminent position in the Indian corporate sector riding on the wings of its
unique labour policies (it had an elected workman on the Board long before
empowerment became a buzzword) and its famed management training programmes.
Ranked among the top 10 conglomerates in India it diversified beyond its
traditional areas of textiles and sugar into emerging sectors like chemicals,
fertilizers, tyre cord, automobiles and electronics. After Dr. Bharat Ram’s
retirement in 1985 the conglomerate was divided into separate companies.
Presently
he is ‘Chairman Emeritus’ of DCM Limited, and Chairman of company. He is also
Chairman of Coromandel Fertilizers Limited.
Dr.
Bharat Ram’s stature must be measured in the context of his times. India of the
1960s and 1970s was an avowed socialist country in which the private sector did
not enjoy the respect and confidence of the government. In fact it played
second fiddle to the public sector, which was supposed to occupy the
"commanding heights of the economy". It was in this context that Dr.
Bharat Ram became the voice and conscience-keeper of Indian business specially
after being elected President of FICCI in 1965. FICCI under his leadership came
to be regarded as the mouthpiece of businessmen and took on the task of forging
an active partnership with the government in areas of social concern. During
his tenure and later he also lectured widely throughout the country. These
lectures were eventually published as a book, titled "Glimpses of Industrial
India". It is noteworthy that the Government made a departure from
tradition in appointing him Chairman of Indian Airlines, a rare happening for
somebody from the private sector.
His
next major achievement was in bringing international recognition to Indian
business when he was elected as the first Asian President of the International
Chamber of Commerce (ICC) in 1969. His tenure brought prestige not only to
himself but to India’s business community as a whole. Once again his lectures
during this period were considered a landmark, specially as they were delivered
by an industrialist from the Third World. These were published as a book,
"From Istanbul to Vienna".
A
reading of Dr. Bharat Ram’s thoughts gives an insight into his grasp not only
of India’s economy as it was evolving but also the world of international trade
with which India was eventually destined to integrate in the nineties. Dr.
Bharat Ram is quintessentially a bridge builder between "what is" and
what is possible.
The
list of positions of honor that he has occupied and the accolades he has
received are too numerous to be listed here. The highlights, however, are
mentioned:
·
He
received the Padma Bhushan from the President of India in 1972 and was
the first Indian businessman in the country to be given an Honorary Doctorate
which was conferred by the Aligarh Muslim University. He was nominated a Member
of the National Commission on Labour, the educational panel of the Planning
Commission, All India Council of Technical Education, the Central Board of the
Reserve Bank of India and the National Council of Applied Economic Research.
·
In the
field of social work he has laboured tirelessly first as Vice Chairman and
later as Chairman of the Population Foundation of India (Formerly the Family
Planning Foundation) in trying to find answers to the India’s population
problem. He is also President of the Blind Relief Association.
·
He was
one of the finest golfers in the country in his younger days and continues to
play the game at the age of 84.
He is also famous for his keen interest in
roses and as President of the Rose Society of India was instrumental in
creating a National Rose Garden on Shanti Path, New Delhi.
Profile of Arun Bharat Ram
Mr. Arun Bharat Ram is a notable
figure in India’s corporate firmament. As past President of CII and the current
President of CII International, ABR as he is popularly known, has been the
principal architect of The company’s growth over the years. But the man who
today presides over the 7th largest Nylon Tyre Cord manufacturing company in
the world, cut his business teeth through sheer dint of hard work and ambition.
After his schooling at the Doon School in Dehradun, he graduated in Industrial
Engineering from the University of Michigan, USA.
After beginning his career in 1967
in Delhi with the Delhi Cloth & General Mills Co. Ltd, (now DCM Ltd.) he
set up SRF Ltd in 1971 to manufacture Nylon Tyrecord Fabric. In 1975, he was
appointed Managing Director and Vice Chairman in1988 of company. Since then the
company has come a long way diversifying into allied Nylon products such as
Engineering Plastics, Fishnet Twines and Industrial Fabrics. It has multiple
plants in and outside India. Growth has been supplemented through acquisitions
of Ceat’s tyre cord plant in 1995 and the DuPont Fibers Ltd. in1999. SRF is
today the market leader in nylon tyre cord in India besides emerging as one of
the top seven players in the world. It is also a major producer of Refrigerant
Gases and Fluoro Chemical products.
Through all this his avowed aim has
been to build a highly professional company which is a market leader in all its
businesses.
Mr. Arun Bharat Ram’s vision
stretches well beyond his own company. He has been on various
Government-Industry Committees and is the past President of the Association of
Synthetic Fibre Industry as well as on the Managing Committee of
Government-appointed Development Panel on Man-Made Fibre Industry. He has been
the Chairman of Indo-Korea Joint Business Council and was, before he became CII
President, Chairman of the Northern Region of Confederation of Indian Industry
(CII).
A mid-handicap golfer and a keen
musician who learnt music from the renowned maestro Pt. Ravi Shankar, he plays
the sitar whenever possible. Mr. Arun Bharat Ram belongs to a renowned family
of Delhi well known for its contribution in the field of education, art,
culture and sports. He is also a member of the Governing body of SPIC–Macay - a
society for the promotion of Indian Classical Arts. He has been a member of the
Governing body of The Doon School, Dehradun and is currently member of
governing body of Lady Shriram College (LSR). He has also been instrumental in
promoting the Shriram School in Delhi.
Mr. Arun Bharat is a member of the
CII World Economic Summit – India Advisory Council and has recently been
appointed by the Government to be the Co-Chairman of Indo-German Consultative
Group.
Profile of Mr. Vinod Kala
He is a 1986 IIM Ahmedabad alumnus. His expertise lies in the area of Organizational
Transformation, where he combines skills in Business Strategy, Financial
Engineering, Business Process Re-engineering, Creative Thinking, People
Development etc. He has played an active role in creating this transformation
drive in two large sized corporates in India.
He started a venture management company EVI (Emergent Ventures India
Private Limited) in March 2000, along with other like-minded professionals.
EVI’s mission is to facilitate start-ups, with global potential in the emergent
technologies of computing, telecommunication, networking etc. It is focused on
India/India-centered businesses and is driven by a strong desire on the part of
network members to contribute to India’s growth as a super-power in emergent
technologies.
EVI has facilitated the launch of many businesses creating software
products for next generation telecom networks, financial markets, and related
technologies.
Profile of Avinash Gaur
He was Born on 15.4.46, Avinash Kumar Gaur is a gold medallist from
Banaras Hindu University in B.Sc. (Chemical Engineering & Technical). He
did his M.S. (Chemical Eng.) from University of Washington, Seattle, U.S.A. in
1970. Mr. Gaur has vast experience of about 35 years in the industry.
Mr. Gaur started his career in Hindalco in 1968. He shifted to the
company in 1973. In 1984 he commissioned the Nylon – 66 manufacturing plant and
went on to firmly establish the business. He was Chairman Indian Plastic
Institute – Madras Chapter and is currently Vice President Governing council,
Fiber Research Institute - Chennai.
Press release
Mr.
Arun Bharat Ram appointed Chairman of CCPIT CCI Joint Trade Group
CII
and CCPIT (China Council for the Promotion of International Trade) have formed
a joint trade group to improve trade and investment climate between India and
China by sorting out issues of mutual interest. SRF Group, Vice Chairman, Mr.
Arun Bharat Ram will be leading this Joint trade Group.
The
entry of China into the World Trade Organization (WTO) will have a deep impact
on trade relations between Beijing and New Delhi. The joint trade group will
focus on multilateral and bilateral issues of interests to both the countries.
It will help China and India to emerge in a meaningful trade dialogue, which
will enhance market access, for both countries bilaterally and multilaterally.
The group's membership will comprise leading industry heads, trade experts and
government officials.
On
the Multilateral level the two sides can discuss issues that are being
deliberated at the WTO with specific focus on
- Trade and Labour
- Trade and Environment
- Anti -dumping and subsidies
- Government procurement and
- Services
On a Bi-lateral basis, the specific
sectors where the two sides may want to engage each other could be
- Information Technology
- Automobile
- Auto Components
- Textiles
- Agriculture and food products
- Tourism
- Power
- Telecommunications
Fixed Assets are: Freehold Land, Leasehold
Land, Road, Buildings, Plant and Machinery, Furniture And Fixture, Office
Equipments etc., Vehicles, Intangibles.
Operation
Review :
Gross sales increased by 2% to Rs. 1736.700 millions from
Rs. 1701.700 millions in the previous year. Operating profit decreased by 111%
to Rs.17.300 millions from Rs. 158.000 millions. Mainly on account of increase in
interest and depreciation.Profit before tax
decreased by 414 % to Rs (189.000) millions Rs 60.200 millions. Profit after
Tax decreased by 328 % to Rs (140.000)millions from Rs 61.400 millions.
Business-wise Review
A detailed
business wise review is being given in theManagement Discussion and Analysis
section of the annual
report.
Subsidiary Companies
SRF Polymers
Investments Ltd. the wholly-owned subsidiaryof the Company made a loss of Rs.
20.800 millions during the year2007^08 mainly on account of payment of interest
on loans.
Open-offer
During the year,
the promoters had made an open offer under the Substantial (Acquisition of
Shares & Takeovers) Regulations,1997 and acquired 490392 shares of the
Company taking their aggregate holding in the Company to 4798256 shares which
represents 74.36% of the paid up capital of the Company.
Industry Structure
and Developments.
Industrial Yarn
Business (IYB)
2007-08 has been a
year of transition with the Companychanging gears and moving from the
Networking Model toManufacturing Model. This did entail facing some
teethingtroubles in the beginning - while setting up processes, systemsand
quality parameters during plant stabilisation, but the real benefits in terms
of increased control over quality and deliver yare likely to accrue in the
coming years.
Additionally, the
year 2007-08 witnessed an unprecedented increase in the costs of inputs like
raw materials, energy and chemicals, which could not be passed on to the
customers.Since this coincided with the company's transition process,the
cumulative impact on the business has been very severe.But despite sucrra
difficult scenario, the Company managed to maintain its dominant market
position in the fishnet twine segment.
Recently, the unit
has also standardised on SRF Limited's yarn in its twine facility. With twine
facility getting its raw material from SRF Limited's Chips and Yarn
facility/the business will have a unique and complete value chain for the
fishnet product - frofn Caprolactum to Fishnet twine - which would give a
distinct competitive advantage.
Engineering
Plastics Business (EPB)
Engineering
Plastics business is poised to grow as the market improves and with the
commissioning of its Pantnagar plant,the Company will be able to increase
volumes in the next year.There were some initial setbacks which had delayed the
commissioning of the Pantnagar Plant considerably thereby impacting
profitability. These were more to do with external factors and not in our
control. In view of the growth recorded duririg the year by the major segments
like Automotive and Electrical, the Company relaunched a new polymer
PBT,enhanced its product range and also started exploring export markets. The
initial response from overseas has been encouraging for Polyamides.
Engineering
Plastics Business continues to enhance its skills in R&D1 and new product
development, thereby reducing cost of processing and developing high end
grades. The company has also undertaken the development work of Poly Carbonate
based Engineering Plastics. The expansion programme of the business is also
underway.
Opportunities and
Threats
It is expected
that the increase in costs will be absorbed by the market for Fishnet Twines in
the coming year. Further, the improvements in plant performance will also
contribute to the profitability of the business.With the product quality in
control, the business has decided to also focus on Industrial Yarn applications
outside the fishnet twine sector. In order to truly reflect its operating
business space,the fiame of the business has been changed from Fishnet Business
to Industrial Yarn Business. The hew applications exist in Industrial Fabrics,
filters, narrow woven webbings, hose pipes, ropes & cordages etc
.With more and
more Industrial goods (based on technical yarn)shifting to India, growth in
this sector is expected to be significant in the coming period.Growth in the
Engineering Plastics business will continue to be driven by automobile and
Electrical sector. It is also expected that a lot of Tier-l manufacturers will
look at India as a manufacturing base due to low cost and this will help the
market grow faster. Although the prevailing high interest rate might slow down
automobile growth, increased per capita consumption is expected to help
industry maintain its robust growth. The Company is confident to retain its
dominant position in the market by way of leveraging its reputation and
enhanced capacity.
Outlook for SRF
Polymers
The Company indeed
has the potential to grow in both the businesses. Opportunities and challenges
co-exist but the company is confident to chart its course of progress.
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.47.28 |
|
UK Pound |
1 |
Rs.73.43 |
|
Euro |
1 |
Rs.68.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
|