MIRA INFORM REPORT
|
Report Date : |
23.12.2008 |
IDENTIFICATION DETAILS
|
Name : |
HYDERABAD INDUSTRIES LIMITED |
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Registered
Office : |
Sanathnagar, |
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Country : |
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Financials (as
on) : |
31.03.2008 |
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Date of Incorporation
: |
23.06.1955 |
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Com. Reg. No.: |
01-656 |
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CIN No.: [Company
Identification No.] |
L74999AP1955PLC000656 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
HYDH00015B |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturers of well-diversified range of engineering goods
such as plant and machinery for A C products, slurry pumps, heavy-duty
screens, crushers, etc, used in mining and power plants. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit
Limit : |
USD 7600000 |
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Status : |
Good |
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Payment
Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company of C K Birla Group.
Available information indicates high financial responsibility of the company.
Financial position is very good. Trade relations are fair. Payments are correct
and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
|
Registered Office
/ Corporate Office
: |
Sanathnagar, |
|
Tel. No.: |
91-40-23700600/1/37012 / 23700601 /
23800601 / 23703852 / 23710807 |
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Fax No.: |
91-40-23701227 / 23702400 |
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E-Mail : |
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Website : |
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Regional Marketing Offices: |
ANDHRA
PRADESH Sanatnagar,
E-mail
: mo@hil.in Himalaya
House, 1st Floor, 23, Kasturba Gandhi
Marg, E-mail
: deloff@hil.in
E-mail
: koloff@hil.in 96,
Bajaj Bhavan, 9th Floor, Nariman Point,
Mumbai - 400 021. Tel No. : 91-22 – 22021125 / 22027852 Fax: 91-22 - 2841107 E-mail
: mumoff@hil.in CHENNAI Tel
No. 91-44 – 24804073 / 24721341 2nd
Floor, Kannankeri Estate, Tel
No : 91-484 – 2373876 / 2369838 / 2352181 E-mail : marketing@mbplonline.com
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Factory : |
·
Sanathnagar, Tel
No. 91-40-3700601 Fax No.
91-40-3701227 / 3702400 ·
Industrial Area, Jaisidih, Jharkhand Tel.
No. 91-6432-70216 / 260 / 22440 / 22359 / 70577 Fax
No. 91-6432-70277 ·
Sector 25, Tel. No. 91-129-5232031 Fax No. 91-129-5232914 E Mail : hilfbd@hydind.com ·
Plot No. 31, Tel. No. 91-1274-42167 / 42112
/ 42173 Fax No. 91-1274-42113 E Mail : hildhr@hydind.com ·
11-56, Thimmapur, Kothur Mandal,
Mahaboobnagar District - 509 325, Andhra Pradesh Tel
No. 91-8548-57124 / 57070 E
Mail : hiltim@hd2.dot.net.in ·
Plot No. 289, IDA, Kondapalli - 521
228, Krishna District, Tel.
No. 91-866-872623 / 872624 Fax
No. 91-866-872503 E
Mail : hilvja@md3.vsnl.net.in ·
Tel.
No. 91-4116-68077 / 68115 Fax
No. 91-4116-68113 E
Mail : hil.aac@gnmds.globalnet.ems.vsnl.net.in ·
Musarane Works, 347, ·
Sathariya, SIDA, Jaunpur Dist., - 222 022 (UP) ·
Thrissur, Mulangunnathukavu P.O., - 680 581
(Kerala) ·
Balasore, IDCO, Plot No. Z-2, IID Centre,
Somanathpur (Orissa) |
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Research and
development centre : |
7-2-1830/1, Behind FCI Godown, Erragadda, |
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Tel. No.: |
91-40-371 3418 / 19 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr.
C.K. Birla |
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Designation : |
Chairman |
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Name : |
Mr.
Krishnagopal Maheshwari |
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Designation : |
Director |
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Date of
Birth/Age : |
11.02.1922 |
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Date of
Appointment : |
16.10.1964 |
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Profile
: |
Rich
experience in the fields of Business and Management, as he held various senior
positions in several Companies and had been a Director on the Boards of reputed Companies. |
|
Other
Directorship: |
·
Kesoram
Industries Limited ·
Jayashree
Traders Private Limited |
|
|
|
|
Name : |
Mr.
Shreegopal Daga |
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Designation : |
Director |
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Date of
Birth/Age : |
12th January 1940 |
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Date of
Appointment : |
24th December 1975 |
|
Profile
: |
Expertise in the field of administration
and management as he has been on the Board of various companies as a Director
and Managing Director for several years. |
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Other
Directorship: |
Air Conditioning Corporation Limited,
India Silica Magnesite Works Limited, Suhal Projects Limited, Swati Projects
Limited, Vinal Commercial Private Limited |
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|
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Name : |
Mrs.
Sultana N. Alladin |
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Designation : |
Director |
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Date of
Birth/Age : |
31st May 1921 |
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Date of Appointment
: |
20th July 1983 |
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Profile
: |
Good Knowledge about the
affairs of the Company from its inception since she belongs to the family of
Alladins the promoters of the Company. |
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|
|
|
Name : |
Mr.
P. Vaman Rao |
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Designation : |
Director |
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Date of
Birth/Age : |
12.06.1928 |
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Date of
Appointment : |
22.12.1987 |
|
Profile
: |
Expertise in finance and administration since he had
held various Senior Executive
positions in the Sirpur Paper Mills Limited, for several years. |
|
Other Directorship: |
·
Sirpur
Paper Mills Limited ·
Hyderabad
Agencies Private Limited |
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|
|
|
Name : |
Mr.
Yash Pau |
|
Designation : |
Director |
|
Date of
Birth/Age : |
10th June 1940 |
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Date of
Appointment : |
30th January 2001 |
|
Profile
: |
Expertise in the fields of
finance and management as he had held various senior executive positions in
LIC. |
|
|
|
|
Name : |
Mr.
O.P. Jagetiya |
|
Designation : |
Managing Director and Chief Executive Officer |
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Qualification : |
B.E.( Hons.) MBA, ME |
|
Date of
Appointment : |
9-9-2003 |
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Other
Directorship: |
Nagariuna Fertilizer and Chemicals Limited |
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|
|
|
Name : |
Mr. Abhaya Shankar |
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Designation : |
Director |
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Date of
Birth/Age : |
26.03.1956 |
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Qualification : |
B.Tech (Mech) IIT MBA (PGDM) IIM, |
|
Date of
Appointment : |
01.02.2008 |
|
Profile
: |
His previous
assignment was in the capacity of Managing Director and Country Manager of
Tenneco Automotive India, which is a part of Tenneco Inc. USA, a USD 5 billion (Rs.20,000
Crore) revenue company headquartered in the and with a
global presence of approximately 80 facilities worldwide, and engaged in
design, development and manufacture of ride-control and emission control
products. Prior to this he
was heading the corporate office, as President, for Bharat Technologies
Group, engaged in automotive, information technology, electrical and sugar
related industries. Having worked in
him extensive
experience of highly professional, process and execution driven management practices. |
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Other
Directorship: |
Raygan Finvest Private Limited |
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|
|
|
Name : |
Mr. A V Ganapathy |
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Designation : |
Director |
MAJOR SHAREHOLDERS
(As on 30.09.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group |
|
|
|
Indian Promoters |
|
|
|
Individuals/Hindus Undivided Family |
213422 |
2.86 |
|
Bodies Corporate |
2985550 |
40.01 |
|
Foreign Promoters |
|
|
|
Individuals
(Non-Residents Individuals / Foreign Individuals) |
4444 |
0.06 |
|
Public shareholding |
|
|
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Institutions |
|
|
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Mutual Funds/UTI |
592139 |
7.93 |
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Financial Institutions / Banks |
4359 |
0.06 |
|
Central Government/ State Government(s) |
305552 |
4.09 |
|
Non-institutions |
|
|
|
Bodies Corporate |
612300 |
8.20 |
|
Individual shareholders holding nominal share capital up to Rs 0.100
million |
2232532 |
29.92 |
|
Individual shareholders holding nominal share capital in excess of Rs
0.100 million |
312487 |
4.19 |
|
Non Resident Individuals |
77778 |
1.04 |
|
Corporate OCB |
122000 |
1.63 |
|
|
|
|
|
Total |
7462563 |
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Manufacturers of well-diversified range of engineering
goods such as plant and machinery for A C products, slurry pumps, heavy-duty
screens, crushers, etc, used in mining and power plants. |
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Products : |
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PRODUCTION STATUS
(As on 31.03.2006)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Asbestos Cement Sheets,
ccessories and Fittings. |
MT |
NA |
532000 |
531697 |
|
Asbestos Cement Sheets and
Pipe Plants, Steel Moulds, Size Separation and Size Reduction Equipments, Power
Driven Pumps, Spares and Accessories |
MT |
NA |
4400 |
2645 |
|
Jointings |
MT |
1700 |
1700 |
1366 |
|
Moulded Thermal Insulation
Articles |
MT |
NA |
NA |
|
|
Thermal Insulation Products
(Refractories) |
MT |
NA |
3500 |
2775 |
|
Cement |
MT |
NA |
60000 |
47 |
|
Hysil Powder (by product) |
MT |
NA |
NA |
69 |
|
Cranes and Traversors |
MT |
NA |
4200 |
-- |
|
Aerocon Panels (R and D) |
MT |
NA |
NA |
-- |
|
Prefabricated Building Panels |
|
230000 |
460000 |
16996 |
|
Exfoliated Vermiculite |
MT |
8000 |
8000 |
118 |
|
Prefabricated Autoclave
Aerated Concrete Blocks (CuM) |
|
160000 |
100000 |
66880 |
|
Steel Structures including
large diameter pipes and fittings (single shift basis) |
MT |
NA |
6000 |
213 |
|
Steel Castings and Steel
Ingots |
MT |
NA |
6000 |
119 |
|
Metallurgical Machinery and
Material Handling Equip. |
MT |
NA |
1500 |
-- |
|
Earthmoving Machinery,
Excavators/Shovels |
Nos. |
NA |
100 |
1 |
GENERAL INFORMATION
|
No. of Employees
: |
1859 |
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Bankers : |
·
State Bank of ·
State Bank of ·
Central Bank of ·
State Bank of ·
State Bank of ·
State Bank of Travancore |
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Facilities : |
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Banking
Relations : |
Satisfactory |
|
|
|
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Auditors : |
S.
R. Batliboi amd Company Chartered Accountants |
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|
|
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Associates/Subsidiaries
: |
·
Malabar Building Products Limited ·
Hindustan Powerplus Limited ·
Birla Buildings Limited ·
Nigerian Asbestos Industries Limited ·
Nepal Metal Company Limited ·
General Motors India Limited ·
Orient Paper & Industries Limited
·
National Engineering Industries
Limited ·
Hindustan Motors Limited ·
Birla Soft ·
GMMCO |
|
|
|
|
Membership : |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9500000 |
Equity Shares |
Rs.10/- each |
Rs.95.000 millions |
|
50000 |
Preference Shares |
Rs.100/- each |
Rs.5.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.100.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7462562 |
Equity Shares Of the above Shares ·
175000 Equity Shares
allotted pursuant to Scheme of Arrangement for transfer of Heavy Engineering
Division ·
4693084 Equity Shares
allotted as fully paid-up Bonus Shares by capitalization of General Reserve ·
314931 Equity Shares
allotted as fully paid-up pursuant to Scheme of Amalgamation of Malabar
Building Products Limited |
Rs.10/- each |
Rs.74.626 millions |
|
|
Forfeited Shares |
|
Rs.0.272 million |
|
|
|
|
|
|
|
Total |
|
Rs.74.898 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 |
74.898 |
74.898 |
71.748 |
|
|
2] Share Application Money |
0.000 |
0.000 |
3.149 |
|
|
3] Reserves & Surplus |
1435.192 |
1343.168 |
1248.777 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1510.090 |
1418.066 |
1323.674 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
703.142 |
541.621 |
390.788 |
|
|
2] Unsecured Loans |
204.918 |
191.354 |
179.182 |
|
|
TOTAL BORROWING |
908.060 |
732.975 |
569.970 |
|
|
Deferred payment
Liabilities |
9.747 |
20.169 |
27.882 |
|
|
DEFERRED TAX LIABILITIES |
163.054 |
134.990 |
116.038 |
|
|
|
|
|
|
|
|
TOTAL |
2590.951 |
2306.200 |
2037.564 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1292.241 |
1294.265 |
1007.431 |
|
|
Capital work-in-progress |
218.249 |
39.551 |
235.445 |
|
|
Expenditure during constriction
period |
11.654 |
0.939 |
12.961 |
|
|
|
|
|
|
|
|
INVESTMENT |
94.551 |
95.694 |
180.544 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1134.775
|
1151.394 |
774.064
|
|
|
Sundry Debtors |
478.871
|
389.179 |
391.795
|
|
|
Cash & Bank Balances |
162.842
|
64.647 |
66.681
|
|
|
Other Current Assets |
35.968
|
31.250 |
10.227
|
|
|
Loans & Advances |
184.690
|
188.460 |
278.659
|
|
Total
Current Assets |
1997.146
|
1824.930 |
1521.426 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
918.989
|
817.501 |
768.446
|
|
|
Provisions |
103.901
|
131.678 |
151.797
|
|
Total
Current Liabilities |
1022.890
|
949.179 |
920.243
|
|
|
Net Current Assets |
974.256
|
875.751 |
601.183
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2590.951 |
2306.200 |
2037.564 |
|
PROFIT & LOSS
ACCOUNT
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Sales
Turnover |
1761.300 |
1292.900 |
|
Other
Income |
12.500 |
11.200 |
|
Total
Income |
1773.800 |
1304.100 |
|
Total
Expenditure |
1469.900 |
1077.700 |
|
Operating
Profit |
303.900 |
226.400 |
|
Interest |
18.700 |
17.300 |
|
Gross
Profit |
285.200 |
209.100 |
|
Depreciation |
24.700 |
26.400 |
|
Tax |
89.700 |
63.300 |
|
Reported
PAT |
170.800 |
119.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
2.89
|
3.15 |
8.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.54
|
5.08 |
13.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.66
|
7.16 |
23.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.16 |
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.28
|
1.19 |
1.13 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.95
|
1.92 |
1.65 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject, a C K Birla group company was incorporated as Hyderabad
Asbestos Cement in Jun. '46 and was renamed to the present one in Nov.1985.
Subject is into the business of producing Building Products , Engineering goods
and Industrial products. It is the largest manufacturer and exporter of A C
Roofing sheets in
Subject markets its product AC Sheets under the well known brand Charminar A C
sheets. Subject is also the largest manufacturer of calcium silicate,
insulation blocks, pipe sections and jointings for gasketing, thereby meeting
the critical needs of the fertiliser, engineering and chemical industries.
The company manufactures a well-diversified range of engineering goods such as
plant and machinery for A C products, slurry pumps, heavy duty screens,
crushers, etc, used in mining and power plants. Its engineering division offers
expertise on setting up A C roofing sheet projects on a turnkey basis. Its
heavy enginnering division manufactures hydraulic excavators (in technical
collaboration with Mannesmann Demag
In Jul.'92, the company issued redeemable partly convertible debentures of Rs
160 on rights basis. In Dec.'95, it issued non-covertible debentures of Rs 100.
As a step towards further diversification into a new range of building
products, the company entered into a technical collaboration with Building
Technologies,
DIVIDEND
The Directors recommends for consideration of the Shareholders, at the ensuing
Annual General Meeting, payment of dividend, on the Equity Share of Rs. 10/- each
C @ Rs. 5/- per Equity Share.
PERFORMANCE
The
During the year the national demand for the Fibre Cement
Sheets has grown by about 15% over the previous year. The Fibre Cement Sheet
Industry has faced challenge on account of over supply position and higher
input cost. This has led to the pressure on margins on Fibre Cement Sheets. The
Fibre Cement Sheet Industry is expected to grow about 15% during the year. Despite
lower margins, the Fibre Cement Division continued its positive contribution to
the Company.
The market growth for Autoclaved Aerated Concrete Blocks (AAC Blocks) and
Aerocon Panels was satisfactory during the year. Due to its inherent advantages
of high quality, strength, light weight and thermal insulation properties
coupled with technical support, guidance, cost-benefit analysis of usage of
these products, the Company attracted various customers and received
encouraging response from the market during the year. These products are
gaining customer confidence due to their advantages against other
substitutes.
Production and Sales of Thermal Insulation products have
increased by 16% and 9% respectively over the previous year. In view of
increased demand, the Company is in the process of increasing its manufacturing
capacity to cater to the growing demand.
NEW
PROJECTS
During the year the Company has set up a new Fibre Cement Sheet Plant at
Somnathpur Industrial Estate, Balasore, in the state of Orissa with a capacity
of 125000 MT per annum. The requisite clearances from Ministry of Environment
and Forests and State Pollution Control Boards have been obtained and the
commercial production is expected to start shortly.
The Company is setting-up a new Fibre Cement Sheet plant at
During the year, the Company is expanding its manufacturing capacity of Thermal
Insulation Products from 3500 MT to 6000 MT per annum, by installing an
additional line at its Dharuhera factory to cater to the growing demand in the
market for such products.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Operating Results of the Company
During the year the Company has recorded a Net Sales turnover of Rs. 4827.000
millions and PBIDT of Rs. 400.500 millions as against Rs. 4397.000 millions and
Rs. 395.700 millions in the previous year. The Net Sales for the year 2007-08
grew by 10%. The PBIDT for the year as percentage of Net Sales was at 8% in
2007-08.
Outlook for the Company:
The Company's business consists of the following product lines:
(A) Building Product Segment:
1. Fibre Cement Sheets (Asbestos as well as Non Asbestos)
2. Autoclaved Aerated Concrete Blocks (Light Weight Bricks)
3. Aerocon Panels:
(B)
Thermal Insulation Products
1. Calcium Silicate Insulating Materials:
During the year the Fibre Cement Sheets continued to be major contributor to
Company's turnover. The Company is the largest manufacturer and seller of Fibre
Cement Sheets in
The demand for Fibre Cement Sheet is growing at 15% per annum and to retain the
market share the Company has set up a new plant at Somanathpur Industrial
Development Area, Balasore (Orissa) and the commercial production is expected
to start shortly. In view of the said addition, the Company's production
capacity will be about 8 lac MT per annum.
A new Fibre Cement Sheet Plant with a capacity of 125000 MT per annum is being
set-up in the existing location at
The economy of the country moved decisively to a higher growth phase and registered
a GDP above 8% for the year 200708. Due to steep increase in the prices of GI
Corrugated Sheets, the demand for Fibre Cement Sheets is expected to grow
around 15% in coming years. In order to participate in the aforesaid growth
opportunities and to retain the substantial share in the market, the Company is
planning to set-up new plants at strategic locations and increase the
production capacities of existing plants. The new plants being set-up by the
Company at the said locations would not only enhance the availability of its
products at the reach of the customer but also reduce the production and
distributions costs. The Company is also strengthening its market and
distribution network.
The market for AAC Blocks is also growing in consonance with the growth of the
construction industry. The Company is setting-up a new AAC Block Plant by first
quarter of 2009-10 in the western part of the country. Efforts are also being
made to maximise the production capacity of its Chennai plant.
As expected, the Aerocon Panels, the new generation building product, continues
to be the preference of Architects and Builders, at various cities. The sales
of Aerocon Panels are increasing and it is expected that this trend will
continue in future.
The demand for Thermal Insulation Products is expected to be good in future as
the new projects of end-user customers of the said products i.e., cement,
petrochemical, fertilizer plants etc., are in progress at various parts of the
country. The Company has initiated steps to increase the production to 6000 MT
per annum by adding one more line and the same is likely to be operational by
July 2008.
BUSINESS
SEGMENT ANALYSIS:
The Company's business can broadly be classified into two segments i.e.
Building Products and Thermal Insulation Products. The Cement Grinding Unit
(Non-Core activity) was sold during the year.
(a) Building Product Segment:
This segment consists of Fibre Cement Sheets, Autoclaved Aerated Concrete
Blocks, Aerocon Panels, Fibre Cement Boards, etc. Fibre Cement Sheet is the
main product accounting for about 84% of Company's sales.
Production and Sale of Fibre Cement Sheets during the year under review have
been 660180 MT and 650330 MT respectively.
A Fibre Sheet Plant has been set up at Balasore (Orissa) and the commercial
production is expected to start shortly. The product available from this
facility will help the Company in reducing freight cost and also service the
eastern markets more effectively and optimise the production cost.
The Company has decided to expand its
The pressure on prices of Fibre Cement Sheets will continue due to over supply
situation in the country. The Company believes that due to inherent advantages
offered by the product over the substitutes the demand growth will be in double
digits. The Company is confident of attaining a respectable share in the future
growth with its recognised and established brand image of CHARMINAR, efficient
marketing infrastructure and product distribution network.
The AAC Blocks and Aerocon Panels gained popular acceptances. A new plant for
AAC Blocks is to be established in the western part of the country and the same
is expected to commence production in the first quarter of the financial year
2009-10.
(b) Thermal Insulation Products:
Thermal Insulation Products service the industrial segments namely cement,
power, petrochemical, fertilizer plants etc.
Thermal Insulation Products offer opportunities for growth and the same will be
pursued. Due to consistency and superior properties, company's products have
good acceptance vis-a-vis over those of competitors. Efforts will continue for
new applications to expand the market size. The Company is increasing the
production capacity of its Dharuhera works by installing one additional line to
be made operational during the month of July 2008 and production capacity will
be increased to 6000 MT per annum.
CONTINGENT
LIABILITIES (NOT PROVIDED FOR) IN RESPECT OF
|
The Central
Excise Department, Ranchi had, during 2004-05 raised demands of excise duty collectively
amounting to Rs.489.591 millions at one of the Company's units and levied
penalties aggregating to Rs.335.923 millions for earlier years on the
clearance of Asbestos Cement Products falling under Chapter Heading No.68.04
of the Schedule to the Central Excise Tariff Act, 1985, on the assumption
that fly-ash used in the manufacture of said products was less than 25% by
weight. The Company had
filed an Appeal before the Customs, Excise and Service Tax Appellate Tribunal
(CESTAT), Kolkata, against the aforesaid demands and CESTAT has stayed the
recovery of the amount. It has been legally advised that these demands are
unsustainable in law and there is no likelihood of any liability arising
against the Company. |
(As on
31.03.2008) Rs. in millions |
|
Certain expenses
aggregating to Rs.111.368 millions were disallowed by the Income Tax
Department while assessing the income for an earlier year and Income Tax
Department has reduced the amount of carried forward losses. The Company has,
while providing for income tax liability for subsequent years, has not
considered the above disallowances. If the appeal
filed by the Company is decided against the Company, the charge to Profit and
Loss Account by way of income tax provision would be higher by Rs.37.487
millions (excluding interest). The Company has been legally advised that
these disallowances are not tenable in law and there is no likelihood of any
liability arising against the Company. |
|
|
Demands raised
by Sales tax authorities, being disputed by the Company. |
19.347 |
|
Appeal filed by
the Company before the High Court of Judicature of Andhra Pradesh against the
decision of appeal in favour of the Income tax department pertaining to
wealth tax matter. |
5.698 |
|
Pending cases with
Income Tax Appellate Authorities where Income Tax Department has preferred
appeals |
Liability not
ascertainable |
|
Other claims
against the Company not acknowledged as debts. |
14.620 |
Based on favourable
decisions in similar cases, legal opinion taken by the Company, discussions
with the solicitors, etc., the Company believes that there is fair chance of
decisions in its favour in respect of all the items listed in (c) to (f) above
and hence no provision is considered necessary against the same.
FIXED ASSETS
·
·
·
Buildings
·
Railway Sidings
·
Plant and Machinery
·
Furniture, Fittings and Office Equipment
·
Vehicles
·
Softwares
WEB DETAILS
Subject
is a flagship Company of the C.K.Birla group of Companies, incorporated on 17th
June 1946. Subject has blazed a
pioneering path in the building products industry. Subject has led the cement
industry for well over five decades. Today Subject is a multi product, multi
locational organization with a formidable network of branches, depots,
stockists and personnel spread all over
Subject
being backed by the ornagisational and technical expertise of the Birlas, also
has a Board of directors comprising experienced personnel from Business,
Finance and Industry. The Board is chaired by Mr.C.K.Birla.
Subject’s
product range include Fibre Cement roofing sheets in the name of CHARMINAR,
Autoclaved Aerated Concrete Blocks and Panels called AEROCON, Calcium Silicate
insulation product called HYSIL, Jointing material for Gaskets and Plant and
machinery for these products.
NEWS
Merger of MBPL and
HIL
Pursuant to the Orders of Hon’ble High Court of judicature, Andhra
Pradesh at
Since, MBPL and HIL are engaged in similar lines of business, the
synergy from the combined resources of HIL and MBPL would lead to more economic
and efficient management, control, running and development of market potential,
optimum growth and development of both the companies in asbestos cement sheet
business.
Pursuant to the above scheme of amalgamation shareholders of MBPL are entitled
to receive shares in the HIL in the ratio of 29 (Twenty Nine) fully paid-up
equity shares of Rs.10/- each of HIL for every 100 (One hundred) fully paid-up
equity shares of Rs.10/- each of MBPL.
CMT REPORT [Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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 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.47.39 |
|
|
1 |
Rs.70.65 |
|
Euro |
1 |
Rs.66.33 |
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 |
|