MIRA
INFORM REPORT
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Report Date : |
20.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
KALPANA INDUSTRIES LIMITED |
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Registered Office : |
2B, Pretoria Street, Kolkata 700071, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
03.09.1985 |
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Com. Reg. No.: |
039431 |
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CIN No.: [Company
Identification No.] |
L19202WB1985PLC039431 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALK03269A |
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PAN No.: [Permanent
Account No.] |
AABCK2239D |
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Legal Form : |
A Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer and Seller of PVC and XLPE Compounds and Embroidery of Fabrics. |
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 1700000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Directors are reported as experienced,
respectable and resourceful industrialist. Their trade relations are fair.
Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
2B, Pretoria Street, Kolkata 700071, West Bengal, India |
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Tel. No.: |
91-33-22823744 / 45 / 8818 |
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Mobile No.: |
91-9831888638 |
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Fax No.: |
91-33-22823739 / 24553193 |
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E-Mail : |
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Website : |
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Corporate Office : |
106, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (W),
Mumbai 400 053 |
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Tel. No.: |
91-22-67021470 - 2 |
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Fax No.: |
91-22-67021473 |
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E-Mail : |
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Factory 1 : |
168/151-58, Dabhel Industrial, Co-operative Society Limited, PO Dabhel
, Daman - 396210 |
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Tel. No.: |
91-260-2242684/1994 |
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Fax No.: |
91-260-2243799 |
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E-Mail : |
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Factory 2 : |
Bhasa 14, Bishnupur, Diamond Harbour Road,
24 Pgs. (S), W.B. 743 503 |
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Tel. No.: |
91-33-30925727-29 |
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Fax No.: |
91-33-24978208 |
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E-Mail : |
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Factory 3 : |
Survey No. 24/3, Vill - Demini, Demini
Road, Dadra, Dadra & Nagar Haveli – 39623 |
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Tel. No.: |
91-260-6544484 |
DIRECTORS
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Name : |
Mr. D. C. Surana |
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Designation : |
Chairman |
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Name : |
Mr. N. K. Surana |
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Designation : |
Director |
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Name : |
Mr. N. Guha |
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Designation : |
Director |
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Name : |
Mr. P. Ghosh |
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Designation : |
Director |
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Name : |
Mr. R. Dasgupta |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Manoj Kumar Jain |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller of PVC and XLPE Compounds and Embroidery of Fabrics. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
250 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
D. C. Dharewa and Company Chartered Accountants |
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Address : |
41, N. S. Road, Kolkata 700001 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11553600 |
Equity Shares |
Rs. 10/-
each |
Rs. 115.536 Millions
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
115.500
|
115.500
|
115.500
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
227.100
|
156.100
|
125.700
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
342.600 |
271.600 |
241.200 |
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LOAN FUNDS |
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1] Secured Loans |
505.000
|
194.900
|
74.800
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2] Unsecured Loans |
441.200
|
354.800
|
150.600
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TOTAL BORROWING |
946.200 |
549.700 |
225.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1288.800 |
821.300 |
466.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
489.000
|
306.300
|
212.900
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Capital work-in-progress |
1.500
|
22.100
|
2.400
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INVESTMENT |
0.300
|
0.300
|
0.300
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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 |
311.500
|
188.400
|
108.600
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Sundry Debtors |
656.800
|
474.700
|
284.000
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Cash & Bank Balances |
59.400
|
55.300
|
32.000
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
195.100
|
185.900
|
64.600
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Total
Current Assets |
1222.800
|
904.300 |
489.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
367.300
|
374.700
|
215.900
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Provisions |
57.500
|
37.000
|
22.300
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Total
Current Liabilities |
424.800
|
411.700 |
238.200 |
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Net Current Assets |
798.000
|
492.600 |
251.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1288.800 |
821.300 |
466.600 |
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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 |
3385.400
|
2118.600
|
1644.900
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Other Income |
11.800
|
8.100
|
20.100
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Total Income |
3397.200 |
2126.700 |
1665.000 |
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Profit/(Loss) Before Tax |
113.600
|
60.300
|
38.200
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Provision for Taxation |
15.600
|
8.800
|
8.900
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Profit/(Loss) After Tax |
98.000
|
51.500
|
29.300
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Expenditures : |
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Raw Materials |
2619.000
|
1647.100
|
1307.100
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Excise Duty |
329.700
|
233.900
|
167.800
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Power & Fuel Cost |
44.400
|
39.300
|
22.000
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Other Manufacturing Expenses |
51.500
|
42.500
|
26.500
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Employee Cost |
20.100
|
13.900
|
10.800
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Selling and Administration Expenses |
96.200
|
57.600
|
56.900
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Miscellaneous Expenses |
2.200
|
3.400
|
2.900
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Interest & Financial Charges |
85.300
|
42.200
|
24.800
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Depreciation |
28.200
|
18.200
|
14.500
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Increase/(Decrease) in Finished Goods |
7.000
|
[31.700]
|
[6.500]
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Total Expenditure |
3283.600 |
2066.400 |
1626.800 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
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Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
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Sales Turnover |
1037.300
|
998.700
|
1092.800
|
1353.900
|
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Other Income |
2.300
|
4.900
|
10.400
|
5.700
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Total Income |
1039.600
|
1003.600
|
1103.200
|
1359.600
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Total Expenditure |
968.000
|
922.600
|
997.900
|
1258.400
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Operating Profit |
71.600
|
81.000
|
105.300
|
101.200
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Interest |
19.500
|
19.400
|
21.000
|
17.200
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Gross Profit |
52.100
|
61.600
|
84.300
|
84.000
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Depreciation |
7.000
|
9.800
|
10.100
|
10.500
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Tax |
5.300
|
6.200
|
8.100
|
8.300
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Reported PAT |
39.800
|
45.600
|
66.100
|
65.200
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
2.44 |
1.51 |
0.80 |
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Long Term Debt-Equity Ratio |
1.93 |
1.39 |
0.59 |
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Current Ratio |
1.74 |
1.70 |
1.63 |
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Fixed Assets |
6.73 |
6.13 |
6.50 |
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Inventory |
13.54 |
14.27 |
21.56 |
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Debtors |
5.98 |
5.58 |
7.53 |
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Interest Cover Ratio |
2.33 |
2.43 |
2.54 |
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Operating Profit Margin(%) |
6.71 |
5.70 |
4.71 |
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Profit Before Interest And Tax Margin(%) |
5.88 |
4.84 |
3.83 |
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Cash Profit Margin(%) |
3.73 |
3.29 |
2.66 |
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Adjusted Net Profit Margin(%) |
2.89 |
2.43 |
1.78 |
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Return On Capital Employed(%) |
18.85 |
15.92 |
16.86 |
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Return On Net Worth(%) |
34.10 |
23.74 |
15.59 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE:
The Company achieved revenue of Rs. 3055.600 Millions this year which is 62% higher
than the revenues for, the previous year The profits of the Company after
providing for tax increased to Rs. 98.000 Millions as compared to the profit
after tax of Rs. 51.500 Millions in the last year. Income from exports
increased by 146%, from Rs. 205.700 Millions in the last year to Rs. 507.800
Millions in the year under review. The Company is planning to set additional
facilities in India and plans to set-up liaison offices at strategic
international locations in Middle East and other parts of South East Asia to
augment its growth-plan.
The detailed analysis of the Company's operations and segment-wise performance
is covered tinder 'Management Discussion & Analysis Report'.
MANAGEMENT DISCUSSION
AND ANALYSIS:
INDIA'S QUEST TO BECOME WORLD CLASS INDUSTRIAL HUB:
Chemical Compound
Sector:
India is experiencing unprecedented growth in the industrial
sector and the chemical compound sector is growing at a reasonable pace for
last couple of years after seeing some depression in last years of previous
decade. As their country's emphasis for infra structure development is
increasing, it is very clear that this segment will attract high level of
investment.
Additionally, in the Union Budget 2007-08 recommendations for
higher focus on the chemical compound sector with establishment of chemical
hubs in different part of India focuses on significant milestone as this will
herald the next wave of demand for creation of additional facilities in this
sector.
Industry Structure and
Development, opportunities and threats:
The Company performs in one business segment, i.e. Chemical
Compound segment, with four products, serving the following industrial sectors
wise.
Power Cable
Industries:
Power cable industries is growing at a reasonable pace for last
couple of years. As their country's emphasis for infrastructure development is
increasing it is very clear that this segment will attract high level of
investment. Their products are intermediate products and are used by cable
manufacturers. Since cable is the key raw material for Power Generation and
Transmission Industry and this industry will experience an unprecedented growth
due to policy initiatives, they expect robust demand in the Power Generation
and Transmission, distribution and steel and petro-chemical sector.
Compound for
packaging:
This is a sunrise sector and demand is increasing at a very rapid
pace. The reasons for such demands are primarily due to availability of raw
material, availability of machines and marketing push by basic polymer manufacturers.
Huge possibility of demand expansion lies in this sector.
Compound for pipe
industries:
Till now the demand for products in this sector is quite low to
the size of population. This market is currently dominated by imports. The
company is engaged in import substitution and developing inroads in this
market.
Footwear
industries:
In the footwear sector much growth is not expected as it is an
unorganized sector and in house capacity is available in most of the players in
this market, However, the company has been able to serve the demands of a few
organized players in this sector.
PRODUCT WISE OPERATIONAL
PERFORMANCE:
Product wise the company is engaged in manufacturing of the following
products, the performance of which is discussed in the following lines
PVC compound and Master
batches:
The Production of PVC Compound & Master Batches for the
current year was 17760.119 MT as against 17956.883 MT for the previous year.
The Turnover from PVC Compound & Master Batches was Rs. 995.894 Millions
this year as against Rs. 923.338 Millions for the last year.
PE compounds:
The production of PE Compound for the current year under review
stood at 32436.591 MT as against 18734 654 MT for the last year. The Turnover
was Rs. 1760.479 Millions this year as against Rs. 894.495 Millions last
year.
PVC soles and hawai
chappals:
The production for Soles & Hawaii Chappals for the year was
8.421 Millions pairs/kg. and the sale from this segment fetched Rs. 507.535
Millions. The production for Soles and Hawai Chappals for last year was 6.951
Millions pairs/kg. and the sale from this segment fetched Rs. 210.367
Millions.
OUTLOOK:
Future
outlook of the industrial sector where the company is operating is bright and
promising. With increased stress on the development of infrastructure, demand
for good quality of PVC and XLPE compounds have increased and the results of
the Company for the year reflect the impact of the same. The Company has been
continuously trying to grab new opportunities and the results under review is
the witness to the efforts made in the direction. The company has been
continuously improving its distribution channels, boosts up its sales promotion
activities and invests in facilities that would give it cost advantage over its
competitors.
The
Management of the company is very much familiar with both opportunities and
threats and will continue to work to maintain competitiveness by reducing costs
and improving quality as well as growth of sales of the company products.
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. 42.93 |
|
UK Pound |
1 |
Rs. 84.17 |
|
Euro |
1 |
Rs. 66.82 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|