MIRA
INFORM REPORT
|
Report Date : |
20.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SARASWATI
INDUSTRIAL SYNDICATE LIMITED |
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Registered Office : |
Radaur Road, Yamuna Nagar – 135 001, Haryana |
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Country : |
India |
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Financials (as on) : |
30.09.2007 |
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Date of Incorporation : |
23.01.1933 |
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Com. Reg. No.: |
05-97 |
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CIN No.: [Company
Identification No.] |
L23423HR1933PLC000097 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKS05672C |
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Legal Form : |
A Public Limited
Liability Company. The company’s
shares are listed on Stock Exchanges |
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Line of Business : |
Manufacturer and Traders
of Sugar, Ingots, Steel Casting, Pressure Vessel and Heat Exchanger, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 10845576 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company engaged in the business as manufacturers of
Crystal Sugar, Sugar Plants, Press and Vessels, High Pressure Reactors, Stainless
Steel Heat exchanger and fabricators of specialized items and hydraulic
pressures. Trade relations are reported as fair. Payments are reported as
slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Radapur Road, Yamuna Nagar – 135 001, Haryana, India |
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Tel. No.: |
91-1732-251700/223108/223391/95/307614 |
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Fax No.: |
91-1732-250991/251551 |
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E-Mail : |
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Website : |
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Corporate Office : |
A-4, Sector-24,
Noida – 201 301, Uttar Pradesh, India |
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Tel. No.: |
91-120-241 1289/
241 1290 |
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Fax No.: |
91-120-241 2250 |
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Factory : |
v
A-4, Sector 24,
Noida – 201301, Uttar Pradesh v Saraswati Corporate Centre, Yamuna Nagar –
135 001, Haryana v
Indian Sugar
& General Engineering Corporation, Yamuna Nagar, Haryana, India. v
ISGEC John
Thompson, Kolkata, West Bengal v
Uttar
Pradesh Steels, Muzaffar Nagar, Uttar Pradesh |
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|
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Plant Location : |
v
ISGEC Yamuna Nagar Plant –
135001, Haryana, India v
Uttar Pradesh Steels Village Nara, P. O. Mansurpur,
District Muzaffar Nagar - 251 203, Uttar Pradesh, India. v
Engineering, Procurement and Construction
Division ISGEC John Thompson A-4, Sector 24, Noida –
201301, Uttar Pradesh, India. v
ISGEC A-4,
Sector 24, Noida – 201301, Uttar Pradesh, India. |
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Branches : |
Located
at:- v
‘Raji
Building’, 1st Floor, 730, Anna Salai, Chennai - 600 006,
Tamilnadu v
‘Great
Social Building’ Sir P. M. Road, P.O. Box No. 1339, Mumbai - 400 001,
Maharashtra |
DIRECTORS
|
Name : |
Mr. C R Thompson |
|
Designation : |
Director |
|
Address : |
A-4, Sector 24, Noida – 201301, Uttar Pradesh, India |
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Age : |
76 years |
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Name : |
Mr. K. K. Vij |
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Designation : |
Director |
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Address : |
B-40, Geetanjali Enclave, New Delhi, India |
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Name : |
Mrs. Sujata
Vardarajan |
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Designation : |
Director |
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Name : |
Mr. Vinod K
Nagpal |
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Designation : |
Director |
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Address : |
15, Ishwar Nagar, New Delhi – 110065, India |
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Name : |
Mr. Lalit Mehra |
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Designation : |
Director |
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Address : |
128 Golf Link, New Delhi – 110003, India |
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Name : |
Mr. Tahir Hasan |
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Designation : |
Director |
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Name : |
Mr. Aditya Puri |
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Designation : |
Joint Managing Director |
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Address : |
D-860, New Friends Colony, New Delhi – 110065, India |
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Date of
Birth/Age : |
36 years |
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Qualification
: |
12 years |
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Experience : |
B. A. (Hons), B.A. (CANTAB), ECON from Cambridge University (U.K.) |
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Name : |
Mr. Ranjit Puri |
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Designation : |
Chairman & Managing Director |
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Audit
Committee |
Mr. K.K.
Vij-Chairman Mr. Vinod K.
Nagpal Mr. Lalit
Mehra |
KEY EXECUTIVES
|
Name : |
Mr. S. K. Khorana |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
35,78,180 |
48.55 |
|
FIs, Banks &
Mutual Funds |
68,320 |
0.93 |
|
Others (Public) |
37,23,040 |
50.52 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Traders
of Sugar, Ingots, Steel Casting, Pressure Vessel and Heat Exchanger, etc. |
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Products : |
It’s product
range includes :- Pressure
Vessels and Heat Exchangers v
Shell and
Tube Heat Exchangers v
Pressure
Vessels v
Boiler Drums v
Reactors v
Columns and
Towers v
Boiler
Pressure Parts v
Galvanising
Baths on Kettles v
Fume Hoods Presses v
Straight Side
Presses-Mechanical v
Straight
Side Presses-Hydraulic v
‘C’ Frame
Presses-Mechanical Boilers v
Dump Grate
Boilers v
Travelling
Grate Boilers v
Atmospheric
Fluidised Bed Combustion Boiler (AFBC) v
Circulating
Fluidised Bed Combustion Boiler (CFBC) v
Oil/Gas Fired
Boilers v
Waste Heats
Recovery Boilers v
Deaerators v
Spares Steel
Castings v
Hydro
Turbine Castings v
Gas Turbine
Castings v
Steam
Turbine Castings v
Valve
Castings v
Mn Steel
Castings v
Ni-Hard
Castings v
Pump
Castings v
General
Castings Sugar
Plants and Machinery v
Complete
Cane Sugar Plants v
High
Performance Cane Mills v
Process
House Equipment v
Bagasse
Fired Boilers v
Spares Iron
Castings v
Castings for
Pump and Compressor Industry v
Castings for
Chemical and Dye Stuff Industry v
Castings for
Soda Ash Industry v
Castings for
Tool and Dies Industry v
Castings for
Machine Tools Industry v
Castings for
Steel Plant Industry v
Castings for
Sugar Industry Liquified
Gas Containers General
Fabrication v
Custom Job
Work (Heavy Engineering Equipment as per client’s Desings and Drawings) |
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Exports : |
China, Japan, Germany |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual
Production |
|
Steel Structural,
Iron and Steel Pipes and Agricultural Implement |
MT |
940 (332) |
|
C. I. Castings |
MT |
1897 (1906) |
|
Mechanical
Presses |
Nos. |
57 (77) |
|
Chlorine and Other Liquefied Gas
Containers |
Nos. |
7093 (7935) |
|
Hydraulic Presses |
Nos. |
15 (16) |
|
Pressure vessels,
columns and heat exchangers |
MT |
5646 (4668) |
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Ingots |
MT |
537.620 (736.355) |
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Steel Castings |
MT |
3660.551 (3268.351) |
GENERAL
INFORMATION
|
No. of Employees : |
380 |
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Bankers : |
v
State Bank
of Patiala v
Standard
Chartered Bank v
State Bank
of Travancore v
State Bank
of Indore v
State Bank
of Hyderabad v
Punjab
National Bank v
Corporation
Bank v
Indian
Overseas Bank v
EXIMBank v
Induslnd
Bank v
HSBC Bank v
ICICI Bank Ř
State Bank
of Mysore |
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Facilities : |
Secured by pledge/hypothecation of inventories & by a charge on
book debts & other assets of the Company. Secured by first mortgage on immovable properties of the company's
unit located at Yamuna Nagar both present & future and hypothecation of
movable assets. Unsecured Loan Fixed Deposits – Rs. 193.854 millions |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S.S. Kothari Mehta & Company Chartered Accountants |
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Associates: |
Ř
Himachal
Polyolefines Limited |
|
Subsidiaries |
Ř
The
Saraswati Sugar Mills Limited Ř
Isgee Covema
Limited Ř
Isgee Export
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
85,00,000 |
Equity Shares |
Rs.10/- each |
Rs.85.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
73,69,540 |
Equity Shares |
Rs.10/- each |
Rs.73.695
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
73.695 |
73.695 |
73.695 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
2637.699 |
2024.801 |
1628.841 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
2711.394 |
2098.496 |
1702.536 |
|
|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
260.672 |
172.604 |
175.042 |
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2] Unsecured Loans |
598.113 |
198.289 |
193.854 |
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TOTAL BORROWING |
858.785 |
370.893 |
368.896 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
3570.179 |
2469.389 |
2071.432 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1137.108 |
876.536 |
542.991 |
|
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Capital work-in-progress |
345.685 |
69.258 |
67.623 |
|
|
|
|
|
|
|
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INVESTMENT |
805.877 |
1026.645 |
721.998 |
|
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DEFERREX TAX ASSETS |
5.269 |
7.806 |
5.502 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2244.571
|
1690.170
|
1191.446
|
|
|
Sundry Debtors |
2613.705
|
1821.162
|
1195.136
|
|
|
Cash & Bank Balances |
105.616
|
159.886
|
105.926
|
|
|
Other Current Assets |
2.055
|
0.667
|
0.184
|
|
|
Loans & Advances |
1168.073
|
1066.854
|
387.152
|
|
Total
Current Assets |
6134.020
|
4738.739 |
2879.844
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
3989.418
|
3685.567
|
1896.027
|
|
|
Provisions |
868.362
|
564.026
|
250.499
|
|
Total
Current Liabilities |
4857.780
|
4249.593 |
2146.526
|
|
|
Net Current Assets |
6242.187
|
4161.031 |
733.318
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3570.179 |
2469.389 |
2071.432 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
11397.758 |
8817.157 |
4402.870 |
|
|
Other Income |
162.705 |
33.699 |
0.000 |
|
|
Total Income |
11560.463 |
8850.856 |
4402.870 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1072.153 |
674.308 |
267.134 |
|
|
Provision for Taxation |
373.037 |
223.726 |
94.576 |
|
|
Profit/(Loss) After Tax |
699.116 |
450.582 |
172.558 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
230.090 |
123.311 |
652.504 |
|
Total Earnings |
230.090 |
123.311 |
652.504 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Others |
0.000 |
0.000 |
560.054 |
|
Total Imports |
0.000 |
0.000 |
560.054 |
|
|
|
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Expenditures : |
|
|
|
|
|
|
Cost of goods sold
/ consumed |
6628.723 |
5180.624 |
|
|
|
Closing stock |
(1012.538) |
(1150.842) |
|
|
|
Manufacturing
Expenses |
3301.085 |
2939.527 |
|
|
|
Selling Expenses |
139.567 |
165.587 |
|
|
|
Salaries, Wages,
and other employee benefits |
725.940 |
525.001 |
|
|
|
Managerial
Remuneration |
121.084 |
75.370 |
4135.736 |
|
|
Interest |
27.895 |
28.381 |
|
|
|
Depreciation |
134.851 |
97.202 |
|
|
|
Auditor’s
Remuneration |
0.504 |
0.449 |
|
|
|
Provision for
Doubtful debts |
16.525 |
2.171 |
|
|
|
Other Expenses |
404.674 |
313.078 |
|
|
Total Expenditure |
10488.310 |
|
4135.736 |
|
KEY RATIOS
|
PARTICULARS |
30.09.2007 |
30.09.2006 |
30.09.2005 |
|
Debt Equity Ratio |
0.26 |
0.19 |
0.27 |
|
Long Term Debt
Equity Ratio |
0.16 |
0.10 |
0.16 |
|
Current Ratio |
1.13 |
1.12 |
1.37 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
6.75 |
6.69 |
4.15 |
|
Inventory |
6.11 |
6.43 |
4.65 |
|
Debtors |
5.42 |
6.14 |
4.18 |
|
Interest Cover
Ratio |
13.48 |
10.22 |
5.06 |
|
Operating Profit
Margin (%) |
10.75 |
9.12 |
9.32 |
|
Profit Before
Interest and Tax Margin (%) |
9.63 |
8.07 |
7.65 |
|
Cash Profit
Margin (%) |
6.93 |
5.91 |
5.63 |
|
Adjusted Net
Profit Margin (%) |
5.81 |
4.87 |
3.96 |
|
Return on Capital
Employed (%) |
38.35 |
32.92 |
16.09 |
|
Return on Net Worth (%) |
29.07 |
23.71 |
10.58 |
PERFORMANCE RATIO
|
PARTICULARS |
30.09.2007 |
30.09.2006 |
|
Income / Total Assets |
1.37 |
1.32 |
|
Net Profit Before
Interest And Tax / Capital Employed (%) |
30.81 |
28.46 |
|
Return On Net
Worth (%) |
25.78 |
21.47 |
|
Profit After Tax
/ Income (%) |
6.05 |
5.09 |
LOCAL AGENCY
FURTHER INFORMATION
History
A multi-product, multi-division and multi-location company, The Saraswati Industrial Syndicate manufactures crystal sugar, sugar plants, ingots and steel castings, pressure vessels and fabricates specialised items and hydraulic presses.
The company had undertaken the expansion of the Titawi sugar factory and the
Mawana sugar factory. In 1995, the company's Indian Sugar and General
Engineering Corporation (ISGEC) was awarded the ISO 9001 certification by
Lloyds Register of Quality Assurance, UK.
In 1993, the company's subsidiary -- ISGEC Covema Plastics, was granted a letter of intent for setting up a 2500 TPA sugar plant at Kamoda in the Kurukshetra district of Haryana. The company exports to the UK, south-east Asian countries and to the eastern parts of Africa, west Asia and to the neighbouring countries. The company recently started exporting to Cambodia and Australia also.
During 1998-99, the company has signed a collaboration agreement with an
Italian Company, Belleli, for manufacture of High Pressure Reactors used in the
fertiliser and refinery industries.
Two major Press Lines were supplied to Krupp JBM Private Limited. During
1999-2000, which was a major achievement for the company as these were supplied
in a record period of time. The company also supplied a high pressure and
sophisticated Reactor to the Indian Oil Corporation, the order of which was
booked by their Italian collaborator but the fabrication was done in the
company's shops.
An agreement with M/s Foster Wheeler USA for transfer of latest Circulating
Fluidized Bed Boilers technology was signed in 2000-01.The Company has got
exports orders for Cupro Nickel and Chrome Ferrite Stainless Steel Heat
Exchanges.
Director’s
Report
The Directors are pleased to present their Seventy-fourth Annual Report on the business and operations of the company and financial results for the year ended September 30, 2007.
PLATINUM JUBILEE AND SPECIAL DIVIDEND:
In January 2008 the company completes its 75th year of existence. It was in
1933 that the first of the Company's business ventures, The Saraswati Sugar
Mills, came into being. As a mark of celebration and to convey gratitude
towards shareholders, the Board of Directors recommend a Platinum Jubilee
Dividend of Rs. 3 per share. This is in addition to a normal dividend of Rs. 7
per share.
FINANCIAL RESULTS:
(Rs. in millions)
Profit before Depreciation Rs.
1207.000 millions
Depreciation Rs. 134.900 millions
Profit for the year Rs. 1072.100 millions
For the 5th year in succession, new records for Sales, Profit as well as Order Booking were set. Sales were Rs. 12040.000 millions (previous year Rs. 9300.000 millions); Profits Rs. 1072.100 millions (previous year Rs. 674.300 millions).
The Financial Results of the subsidiary company, Saraswati Sugar Mills Limited, were very disappointing because of the low sugar price combined with a high price of sugar cane. There was a huge surplus of sugar in India and international prices were also very depressed. No silver lining is seen in the current year as All India production is expected to be significantly higher than domestic consumption. The working of the factory, on the other hand, was exceptionally good. They crushed 219 lac quintals of sugar cane (previous record 203.23 lac quintals).
DIVIDEND:
The Board is pleased to recommend dividend @ 100% including Platinum Jubilee
Dividend.
OPERATIONS:
In order to meet the growing demand for the company's products in India as well
as abroad, substantial expansion was undertaken at the company's plants at Yamuna
Nagar and Muzaffar Nagar.
The new plant at Dahej is likely to commence production by March 2008.
It is running about 3 month late because construction was hampered by heavy rains. This plant will manufacture heavier and bigger machinery than is possible at Yamuna Nagar plant. The new plant will cater substantially to the export market.
The second office in Noida was started to handle increased business of Boilers
and Sugar Machinery an a small design office has also been started in Chennai
in October 2007.
The overseas offices in Europe and North America are starting to bring in
significant business.
Export billing stood at Rs. 1450.000 millions (Previous year Rs. 1240.000
millions).
Management Discussion
& Analysis:
The market for Capital Goods continues to boom. They are, however, facing stiffer competition in the export market due to appreciation of the Rupee.
Company increased its Sales over the previous year by 29%. Order booking was
also more and healthy increase in sales turnover is expected in the coming
year.
1. Segment Analysis and Review:
a) Manufacturing of heavy capital
goods:
The items include Boilers, Pressure Vessels, Heat Exchangers, Hydraulic and Mechanical Presses, and Castings. Besides the manufacturing facilities located at Yamuna Nagar (Haryana) and Muzaffar Nagar (UP), they are also setting up another manufacturing unit at Dahej (Gujarat), which is expected to be operational by March 2008. The new facility will manufacture Pressure Vessels and other equipments heavier than they can presently manufacture at Yamuna Nagar. Since Dahej plant is located on the Coast, it will facilitate easier transportation of export orders, and also enable us to supply equipment faster to customers in They stern and Southern India.
During the year, the Pressure Vessels business grew because of continuing boom
in the Oil, Gas and Petrochemical sector around the world.
The Presses business grew because of expansion of capacity by its customer
industry - Automobile Components. They also booked a prestigious Export Order
for a large Press to be supplied to Germany.
The Steel Castings business continued to grow because of increased orders for complex castings from the Power Sector in India and abroad. The Iron Castings business is witnessing a temporary slump as some customers have deferred their expansion plans.
Considering the increase in business in the product lines,
they continued investments in increasing the capacity.
b) Engineering Procurement and Construction
Business:
In this line of business, the company sets up Boiler units and Sugar plants. It
also undertakes to commission these plants and takes guarantees for their
performance and efficiency.
The boiler business mainly supplies to industries like Sugar, Cement, Agro based (biomass) projects Steel, Metallurgical, Paper, Chemical & Textiles. They were able to book good orders from the domestic market as well as large orders from Export Markets. Order booking in Sugar Machinery business was dismal as the Sugar industry in the country is passing through a phase of excess production.
1. Contingent Liabilities:
a) Claims against
the Company not acknowledged as debts (including sales tax under dispute) Rs.
71.576 millions (Previous Year Rs. 60.304 millions).
b) Guarantees
furnished by the bankers on behalf of the Company for Rs. 2715.697 millions.*
(Previous Year Rs. 2229.373 millions) and counter indemnity furnished by the
Company to bankers for the same amount.
* Includes
Performance Bank Guarantees given on behalf of subsidiary company Isgec Covema
Limited Rs. 19.132 millions (Previous Year Rs.25.407 millions).
c) C Forms due
against Sales Tax for the Assessment Years 1996-97 to 2004-05 Rs. 228.019
millions (Previous Year Rs. 107.315 millions.)
divisions of
saraswati industrial syndicate
Ř
ISGEC
Ř
Engineering
Procurement & Construction (EPC)
Ř
Steel Castings
(Uttar Pradesh Steels)
Ř
Saraswati
Sugar Mills
isgec john
thompson
Ř
More than 400
water tube boiler installations
Ř
Wide
Experience in Cogeneration, Captive Power applications
Ř
Technology for
Fossil and Biomass Fired Boilers
- Dump Grate
- Travelling Grate
- Atmospheric Fluidised Bed
- Circulating Fluidised Bed
Ř
Oil/Gas Fired
Boilers
Ř
World Class manufacturing
facilities
Ř
ISO 9001
Certified
infrastructure
Manufacturing
Facilities
Ř Crane Capacity – 150 tonnes
Ř
Shop Area
30,000 sq. mtrs ( 36000 sq. yards)
Forming
Capabilities
Ř
Rolling
Thickness – 200 mm (8 inches)
Ř
Dished End
Thickness – 125 mm (5 inches)
Drilling
Capabilities
Ř
Thickness –
300 mm (10 inches)
Welding
Ř Twin Wire Submerged Arc Welding
Ř
Submerged Arc
Welding
Ř
Metal Inert
Gas Welding
Ř
Tungsten Inert
Gas Welding
Ř
Shielded Metal
Arc Welding
Testing
Ř
Radiography upto
200 mm (8 inches) thickness
Ř
Tensile Test
including Elevated
Ř
Temperature
Testing upt 800C
Ř
Impact Testing
upto (-) 196C
Ř
Metallurgical
Microscope X-2000 and Photography facility
Ř
Ultrasonic
Testing
Ř
Magnetic
Particle Testing
Ř
Liquid
Penetrant Testing
Heat Treatment
Ř Four Oil Fired Furnances
Maximum size : 4500 mm x 4000 mm x 14500 mm (15 ft. x 13ft. x 48 ft.)
Ř
Local Stress
Relieving by Electrical Resistance Method
Codes
& Standards
Ř ASME Section 1
Ř
ISO 831
Ř
BS 1113
Ř
Indian
Standards
Engineering
Capabilities
Ř
In-house
Engineering facilities – Mechanical, Process, Structural, Electrical, Control
and Instrumentation
Ř
49 Designers
Ř
Fully
Computerized Design Office
Ř
Latest Design
Software
Ř
Stress
Analysis for critical components by Finite Element Method
Ř
Softwares –
Autocad, Autolisp, Cadworx, Ceasar, Staad, Amigo, MS Project – latest versions
Ř
Project
Management Capability
- Experienced Project Manager, Engineers,
Construction and Commissioning Personnel for efficient Project Management
and on time delivery
- M.S. Project based planning, scheduling
and monitoring
- Sequential supplies ensure organised
construction at site
accreditations
Ř
ISO 9001
Certified
Ř
ASME – ‘U2’,
‘U’ and ‘S’ Stamps
Ř
Lloyds Class I
It is in trade
terms with :
Fossil
Fuels
Ř
Indian
Aluminium Company, Hirakud, India
Ř
Nirma Limited,
Bhavnager, India
Ř
Indian Charge
Chrome Limited, India
Ř
Atul Products
Limited, Gujarat, India
Oil
and Gas
Ř
National
Fertilizers Limited, Nangal, India
Ř
Hindustan
Fertilizer Limited, Namrup, India
Ř
D.M.D.E.,
Secunderabad, India
Ř
National
Fertilizers Limited, Vijaipur, Guna, India
Ř
National
Organic and Chemicals Industrial Limited, (NOCIL), India
Ř
Indian
Petrochemicals Corporation Limited, Baroda, Gujarat, India
Ř
Indian Oil
Corporation Barauni Refinery, India
Bio
Mass Fuels
Ř
P.T. Indal
Kiat Pulp and Paper Corporation, Indonesia
Ř
Orient Paper
Mills, Amlai, India
Ř
Kamlapur
Sugar, Kamlapur, India
Ř
Lam Son Sugar
Factory, Vietnam
Ř
Sayarikatg
Gula Padang Terap (Kedah) Malaysia
Ř
Varinder Agro
Chemicals Limited, India
Ř
Nuchem
Limited, Tohana, India
Ř
Varam Power
Plant, India
Ř
Jyoti Bio
Energy, India
Ř
South Nyanza
Sugar Company, Awendo, Kenya
Cogeneration
Boilers
Ř Supreme Renewable Energy, Pennadam, India
Ř Gem Sugars, India
Ř The Mysore Sugar Company Limited, India
Ř Gayatri Sugar Mills, India
Ř Thiru Arooran Sugar Limited, India
Ř Cheyyar Co-operative Sugar Mills, India
Ř Shri Prabhulingeshwar Sugar Works Limited,
India
Ř Kothari Sugars and Chemicals Limited, India
joint venture
Presses ISGEC
France, SAS
saraswati
industrial syndicate
The company is a
Rs. 5000 millions, multi-product, public limited company, with interests in
Boilers, pressure Vessels, Heat Exchangers, Hydraulic and Mechanical Presses,
Steel and Alloys Steel Castings, Sugar Plant Machinery, Turnkey Project
Services for Sugar and Industrial Boilers as well as production of sugar.
Established way
back in 1933, the company started off by setting up the Saraswati Sugar Mulls
at Yamuna Nagar in Haryana, India. It is one of India’s largest sugar mills,
with a cane crushing capacity of 12,500 TPD.
The sugar plants
and machinery division of the company was playing a vital role in the
development of the sugar industry and is today, one of the major players in the
world, having set up a number of complete sugar plants, internationally.
The engineering business
of the company was by 1946, large enough to be spun off as a separate unit-
ISGEC.
The fast developing
market soon threw up opportunities that saw the company get into the
manufacture and supply of Heavy Engineering products like Pressure Vessels and
Heat Exchangers.
A spate of
collaborations and technical tie-ups with world leaders like, A. F. Craig and
Company, U.K., John Thompson, U.K. and acb-GEC Alsthom, France saw the
emergence of ISGEC on the world scene. The company’s ongoing collaboration withs
Foster Wheeler, U.S.A. has further strengthened its capacities.
1964 saw the
emergence of Isgec John Thompson, originally a joint venture with John Thompson
of U.K. Isgec John Thompson is today, a leading name engaged in the design,
sales and construction of a wide variety of Boilers and associated equipment.
In 1981 the company
took over Uttar Pradesh Steels, an Alloy Steel foundry based at Muzaffar Nagar,
in Uttar Pradesh, India, established with technical know-how from Kobe Steel of
Japan. UP Steels an ISO 9002 foundry, is internationally recognised and boasts
of a client list including names like GE Hydro, Canada.
With products
exported to as many as 41 countries, around the world, all product divisions of
the company are today well established internationally.
Fixed assets
v Land (Free and Lese)
v Building and Road
v Plant and Machinery
v Furniture and Fixture
v Vehicles
v Railway Siding
v Tramway Lines
v Office Equipment
v Live Stock
OPERATIONS
The shareholders
will be pleased to see the profit that has been reported.
Business has been
exceptionally good during the year. Sales have been 42% higher than the
previous year. The Board had reported that the order booking stood at a record
level one year ago. They are happy to inform the shareholders that the record
has been broken.
Expansion in
capacities is being implemented to meet the new challenge.
Economic
conditions in the country and overseas presented an opportunity, which the
company was quick to seize. They also presented problems in the form of acute
shortages and unexpected rise in prices of materials, both in India and
overseas. Staff turnover also increased because of better job opportunities in
the country and abroad, and manpower costs had to be increased sharply.
We had reported to
you, a year ago, about an industrial relations problem. I am happy to report
that the situation remained calm throughout the year and they hope that it will
remain calm in the future also.
Export billing
stands at Rs. 650.000 Millions. This was their total sales, domestic and
exports, about a decade ago.
They have been
increasing their presence in more and more countries. They have supplied
equipment to 61 countries. New customers were found, during the year, in Chile
and Honduras.
We have also
received an order from a German multinational company to supply 2 Presses to
their plant in China. They have earlier supplied a Press each to their plants
in Brazil and India. They now have 3 customers in China.
Important export
orders include two Bagasse Fired Boilers from Uganda and a Gas Fired Boiler
from Bangladesh. They have recently also booked an order for. a Complete Sugar
Plant in Kenya (after the close for the financial year).
Other important
export
The first orders for Steel Castings from GE,
China; Siemens, Czech Republic; Toshiba Hydro,
Japan; Toshiba
Power Systems, Japan and Alstom, Germany.
The first order
for Pressure Vessels from Chile.
The first orders
for Chlorine Containers from Argentina, Iran and Honduras.
Repeat orders for
Pressure Vessels from Oman.
Unaudited Financial Results (Provisional) of
Three Months Ended On 31.12.2007
(Rs.
in Millions)
|
|
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
|
|
|
|
|
Corresponding |
Year to date |
Year to date |
|
|
|
|
|
|
|
3 Months |
figures for |
figures for |
Previous |
|
|
|
|
|
3 Months |
ended in the |
current |
the previous |
Accounting |
|
|
|
S. |
|
ended |
previous year |
Year ended |
year ended |
year ended |
|
|
|
No. |
Particulars |
31.12.07 |
31.12.06 |
31.12.07 |
31.12.06 |
30.09.2007 |
|
|
|
1. |
Gross Sales |
1783.000 |
2401.300 |
1783.000 |
2401.300 |
12038.700 |
|
|
|
2. |
Less: Excise Duty |
112.400 |
110.900 |
112.400 |
110.900 |
681.800 |
|
|
|
3. |
Net Sales / Income from Operations |
1670.600 |
2290.400 |
1670.600 |
2290.400 |
11356.900 |
|
|
|
4. |
Other Income |
67.900 |
32.600 |
67.900 |
32.600 |
203.600 |
|
|
|
5. |
Total Expenditure : |
|
|
|||||
|
|
(a) (Increase) / decrease in stock-in-trade |
(275.900) |
(15.800) |
(275.900) |
(15.800) |
138.300 |
|
|
|
|
(b) Materials |
1299.000 |
1659.900 |
1299.000 |
1659.900 |
8126.600 |
|
|
|
|
(c) Staff Cost |
216.700 |
165.000 |
216.700 |
165.000 |
725.900 |
|
|
|
|
(d) Other Expenditure |
308.800 |
264.600 |
308.800 |
264.600 |
1334.800 |
|
|
|
6. |
Interest |
10.700 |
7.800 |
10.700 |
7.800 |
27.900 |
|
|
|
7. |
Depreciation |
40.100 |
29.700 |
40.100 |
29.700 |
134.900 |
|
|
|
8. |
Profit/Loss(-) before tax (3+4-5-6-7) |
139.100 |
211.800 |
139.100 |
211.800 |
1072.100 |
|
|
|
9. |
Provision for Taxation |
|
|
|
||||
|
|
- Current Tax |
39.900 |
68.500 |
39.900 |
68.500 |
361.500 |
|
|
|
|
- Fringe Benefit tax |
2.900 |
1.700 |
2.900 |
1.700 |
9.000 |
|
|
|
|
- Deferred Tax |
6.900 |
(0.600) |
6.900 |
(0.600) |
2.500 |
|
|
|
10. |
Net Profit/Loss(-) (8-9) |
89.400 |
142.200 |
89.400 |
142.20 |
699.100 |
|
|
|
11. |
Paid up Equity Share Capital |
|
|
|||||
|
|
(Face value of share Rs.10/- each) |
73.700 |
73.700 |
73.700 |
73.700 |
73.700 |
|
|
|
12. |
Reserve excluding revaluation reserves |
|
|
|
||||
|
|
(as per Balance Sheet) of previous |
|
|
|
||||
|
|
accounting year to be given in column (5) |
|
2637.700 |
|
||||
|
13. |
Basic and diluted EPS for the period, for |
|
|
|||||
|
|
the year to date and for the previous year |
|
|
|||||
|
|
( not to be annualised) (Rs.) |
1.307 |
1.921 |
1.307 |
1.921 |
9.520 |
|
|
|
14. |
Non-Promoter Shareholding |
|
|
|||||
|
|
- Number of shares |
335294.800 |
336626.400 |
335294.800 |
336626.400 |
335294.800 |
|
|
|
|
- Percentage of shareholding |
4.550 |
4.568 |
4.550 |
4.568 |
4.550 |
|
|
Notes:
1. Being single segment Company, segment wise reporting is not required.
2. During the quarter one (1) investor complaint was received, which was attended by the company. No complaint is pending.
3. The above results for the quarter ended 31st December, 2007 were reviewed by the Auditors and Audit Committee and approved by the Board of Directors in its meeting held on 31st January, 2008.
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] 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. 42.64 |
|
UK Pound |
1 |
Rs. 83.00 |
|
Euro |
1 |
Rs. 66.00 |
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 |
YES |
|
--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 |
|