MIRA
INFORM REPORT
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Report Date : |
09.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
ANIL PRODUCTS LIMITED |
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Registered Office : |
Anil Starch’s Premisesanil Road, Ahmedabad – 380025, Gujarat, India |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.07.1993 |
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Com. Reg. No.: |
019895 |
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CIN No.: [Company
Identification No.] |
L15490GJ1993PLC019895 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMA00074E |
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PAN No.: [Permanent
Account No.] |
AABCA3154H |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business : |
Manufacturer of Core Wet Milling Products. |
RATING &
COMMENTS
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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 2200000 |
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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 company having fine track. Trade
relations are fair. General financial position is good. Business is active.
Payments are reported as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
Anil Starch’s Premisesanil Road, P. O. Box 100009, Ahmedabad – 380025,
Gujarat, India |
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Tel No.: |
91-79-2203222 |
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Fax No.: |
91-79-22200731 |
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E-Mail : |
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Website : |
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Factory: |
301, Aniket, C. G. Road, Navrangpura, Ahmedabad – 380025, Gujarat,
India |
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Tel. No.: |
91-79-26424387/ 26424390 |
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Fax No.: |
91-79-66053886 |
DIRECTORS
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Name : |
Mr. Shripal C. Shah |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Amol S. Shah |
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Designation : |
Managing Director |
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Name : |
Mr. Kamal R. Sheth |
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Designation : |
Director |
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Name : |
Mr. Anish K. Shah |
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Designation : |
Director |
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Name : |
Mr. Indra J. Parikh |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Manan C. Bhavsar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage
of Shares |
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Promoters |
4346120 |
58.73 |
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Banks, FIs, Insurance
Companies |
339920 |
4.59 |
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Private Bodies Corporate |
593690 |
8.02 |
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Non Resident Indians |
320 |
0.01 |
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Indian Public |
2119950 |
28.65 |
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Total |
7400000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Core Wet Milling Products. |
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Products : |
Starch Products |
PRODUCTION STATUS (As on 31.03.2007)
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Particulars |
Unit |
Licensed
Capacity |
Actual Production |
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Chemicals |
M.T. |
93440 |
76049 |
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Processed Foods |
M.T |
38690 |
31118 |
GENERAL
INFORMATION
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Suppliers : |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
Ahmedabad, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7400000 |
Equity Shares |
Rs.10/- each |
Rs.74.000 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
74.000 |
74.000 |
74.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
367.673 |
319.401 |
303.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
441.673 |
393.401 |
377.300 |
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LOAN FUNDS |
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1] Secured Loans |
560.373 |
385.814 |
425.900 |
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2] Unsecured Loans |
121.453 |
126.681 |
99.000 |
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TOTAL BORROWING |
681.826 |
512.495 |
524.900 |
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DEFERRED TAX LIABILITIES |
73.004 |
56.126 |
0.000 |
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TOTAL |
1196.503 |
962.022 |
902.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
818.927 |
659.213 |
618.100 |
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Capital work-in-progress |
12.372 |
28.897 |
48.100 |
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INVESTMENT |
5.624 |
5.624 |
5.600 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
261.485
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394.086 |
304.300 |
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Sundry Debtors |
388.539
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163.959 |
318.600 |
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Cash & Bank Balances |
16.273
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13.346 |
11.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
181.504
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173.919 |
102.400 |
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Total
Current Assets |
847.801
|
745.310 |
736.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
458.709
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458.474 |
495.900 |
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Provisions |
29.571
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18.666 |
11.000 |
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Total
Current Liabilities |
488.280
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477.140 |
506.900 |
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Net Current Assets |
359.521
|
268.170 |
229.900 |
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MISCELLANEOUS EXPENSES |
0.059 |
0.118 |
0.500 |
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TOTAL |
1196.503 |
962.022 |
902.200 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2027.484 |
1715.684 |
1813.500 |
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Other Income |
17.174 |
6.814 |
22.600 |
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Total Income |
2044.658 |
1722.498 |
1836.100 |
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Profit/(Loss) Before Tax |
88.137 |
43.099 |
32.600 |
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Provision for Taxation |
33.371 |
22.775 |
14.900 |
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Profit/(Loss) After Tax |
54.766 |
20.324 |
17.700 |
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Earnings in Foreign Currency : |
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Export Earnings |
30.237 |
22.624 |
NA |
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Other Earnings |
0.000 |
0.000 |
NA |
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Total Earnings |
30.237 |
22.624 |
NA |
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Imports : |
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Stores and Spares |
6.367 |
0.812 |
NA |
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Capital Goods |
22.984 |
0.000 |
NA |
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Others |
0.000 |
0.000 |
NA |
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Total Imports |
29.351 |
0.812 |
NA |
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Expenditures : |
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Material Consumed and Purchases Goods Traded
In |
1320.865 |
1139.716 |
1471.400 |
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Employee’s Emoluments |
97.594 |
79.004 |
70.700 |
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Manufacturing Expenses |
442.416 |
381.958 |
99.000 |
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Interest and Financial Charges |
69.005 |
54.967 |
61.500 |
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Depreciation & Amortization |
26.641 |
23.754 |
20.000 |
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Other Expenditure |
0.000 |
0.000 |
80.900 |
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Total Expenditure |
1956.521 |
1679.399 |
1803.500 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2008 (Full Year) |
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Sales Turnover |
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2249.700 |
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Other Income |
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54.600 |
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Total Income |
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2304.300 |
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Total Expenditure |
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2045.500 |
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Operating Profile |
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258.800 |
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Interests |
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|
99.600 |
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Gross Profit |
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159.200 |
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Depreciation |
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|
36.700 |
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Tax |
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|
35.100 |
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Reported PAT |
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|
72.400 |
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Dividend (%) |
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|
75.000 |
KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
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1.43
|
1.35 |
1.35
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Long Term Debt-Equity Shares |
|
0.81
|
0.83 |
0.83
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Current Ratio |
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0.99
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1.03 |
1.05
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TURNOVER RATIOS |
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Fixed Assets |
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2.53
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2.51 |
2.67
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Inventory |
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6.57
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5.22 |
6.09
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Debtors |
|
7.79
|
7.56 |
6.08
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Interests Cover Ratio |
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2.28
|
1.78 |
1.53
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Operating Profit Margin (%) |
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8.54
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6.68 |
6.29
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Profit Before Interests and Tax Margin (%) |
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7.30
|
5.38 |
5.19
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Cash Profit Margin (%) |
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3.78
|
2.42 |
2.08
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Adjusted Net Profit Margin (%) |
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2.55
|
1.11 |
0.98
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Return On Capital Employed (%) |
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15.49
|
10.84 |
10.80
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Return On Net Worth (%) |
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13.12
|
5.27 |
4.78
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LOCAL AGENCY
FURTHER INFORMATION
Operations:
During the year better monitoring and systemic controls in various functional areas
has ensured greater operational efficiency. There has been a focus on improving
efficiency in the utilization of Manpower. Machinery, Money and Material. There
has been a conscious effort to control expenses, curb wastage of material and
to improve overall efficiency and productivity in all the departments and
functional areas. The improvement in demand supply position, change in product
mix and focused cost reduction measures have lead to improvement in overall
probitabitaly and productivity. All these measures have manifested in better
functioning of the Company with Improvement in are bottoming fine. In order to
streamline the working of the Company, it was decided to discontinue tire
manufacturing activities at the Karannagar Unit of the Company. Accordingly,
all the plant its and machineries lying at me Karannagar Unit were transferred
to main Plant of the Company at Anil Road, Ahmedabad. During the year under
report, the Company has achieved a gross turnover of Rs.2152.626 Millions as
compared to Rs.1823.213 Millions during the previous year and the operations
for the year have resulted into a net profit of Rs.54.766 Millions as against
Rs.20.324 Millions in the previous year. The net sales/income from operations
and not profit of the Company for the year increased by about 18.17% and
169.46% respectively in comparison to the previous year. The Directors expect
even better results for the current year.
Industry
Structure and Developments:
The Company operates in the single business segment of manufacturing
corn Wet Milling products. The financial year 2006-07 was a year of growth for
the Corn Wet Milling Industry (CWMI) the end user segments of CWMI also
witnessed substantial growth throughout the year because of the global buoyancy
and Hence most of the products of the CWMI were in good demand. Moreover,
because of the larger scale at operations that has been the order of the day
for most industries; the bottom lines of most industries have improved as well.
The CMWI in general and the Company in particular has also benefited to a large
extent by the overall national and global economic parameters as mentioned
above. Although, the domestic starch market continued to reel under pressure of
excessive competition, the major end user segments displayed a very bright
outlook. As a result of this, alongwith a reasonable growth in the topline of
the Company, there is a substantial increase in the profit before tax during
the year 2006-07. Moreover, the Company has focused on several initiatives for sustaining
and improving upon the bottomline. The Company has also put in a lot of effort
towards new product development and sustained growth in the future.
Review
of Operations:
The current year was a year of steady growth alongwith cost management and
efficiency improvements. The endeavor during the year was to get ready for
large scale growth in the coming years. As such, there has been a considerable
reduction in various costs and improvement in overall efficiencies. It is
because of these measures that the Company has been able to improve the
bottomline substaritially. Hence, not only have the gross sales increased from
Rs.1823.213 Millions to Rs.2152.626 Millions, the profit before tax has
increased from Rs.43.099 Millions In the previous year to Rs.88.137 Millions
the current year.
Future Outlook:
The upbeat outlook for the global economy in general and the Indian economy in
particular, is a pointer towards another good year for the CWMI. The bright
prospects envisaged by the end user industries like textile, food, pharma and
paper will surely lead to further increase in the demand of their products. The
Company is hopeful of consistently utilizing the production capacities created
during the last couple of years and also contemplates to increase these
capacities further. Various energy conservation measures have already been
taken to reduce the cost of power and fuel two of the major cost components.
The Company is also putting in lot of efforts in developing market shares of
the value added products. The Company is also planning to make investments for
capacity augmentation of value added products and efficiency improvement. With
all these steps which are being taken for further growth and improvement in the
margins of its products, their Company is confident of subsidential growth in
the top line as well as the bottom line during the year 2007-08 as well.
Contingent Liability not provided for in respect of: (As on
31.03.2007 Rs. In Millions)
|
Claims
against the company nor acknowledged as debts |
2.378 |
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Disputed
sales tax demands – matter under appear |
68.988 |
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Disputed
Excise Demand – matter under appear |
31.786 |
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Guarantees
of Rs.150.000 Millions (PY Rs.50.000 Millions) given by the company for loan
taken by others from banks. The
balance outstanding is |
140.800 |
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Guarantee
and Letter of Credit Facility Limits of Rs.52.500 Millions (Previous Year
Rs.42.500 Millions) |
42.251 |
Website Details:
Information Systems:
The systems and processes used to manage their business are
as important as the products and services offered to their customers. Keeping this
in mind, Subject has implemented an E.R.P. (SAP) to meet internal as well as
external needs and expectations more effectively and efficiently.
Besides the ERP implementatio, Comapny has also trained personnel
to effect continuous improvement in processes and other areas, using various
tools and techniques like 5S, Kaizen, Gemba-kaizen, CEDAC, etc.
Company maintains very high standards in ethical business
practices and corporate responsibilities. Company therefore is a responsible
business partner in various local communities and organizations to help fulfill
its responsibilities. As a concerned corporate citizen, Company constantly
strives to ensure a clean and green tomorrow.
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.43.37 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.68.08 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
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|
--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 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
|