MIRA
INFORM REPORT
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Report Date : |
01.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
MAN ALUMINIUM LIMITED |
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Registered Office : |
102, Man House, S V Road, Vile Parle (West), Mumbai – 400056,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
08.07.2003 |
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Com. Reg. No.: |
141224 |
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CIN No.: [Company
Identification No.] |
U30007MH2003PLC141224 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM32243B |
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PAN No.: [Permanent
Account No.] |
AAFCM0088C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed of
the Stock Exchange. |
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Line of Business : |
Manufacturer and Exporter of
Aluminium Extruded Products |
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 1300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Financial positions are satisfactory. Payments are
reported as slow but correct. However, the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
102, Man House, S V Road, Vile Parle (West), Mumbai – 400056,
Maharashtra, India |
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Tel. No.: |
91-22-66477500 |
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Fax No.: |
91-22-66477600/ 601 |
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E-Mail : |
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Website : |
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Factory : |
Plot No.67, Sector 1, Pithampur Industrial Arrea, District Dhar, Near
Indore, Madhya Pradesh, India |
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Tel. No.: |
91-729-2253446/ 2253618 |
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Fax No.: |
91-729-2253287 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. R. C. Mansukhani |
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Designation : |
Chairman |
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Name : |
Mr. J. C. Mansukhani |
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Designation : |
Vice Chairman |
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Name : |
Mr. P. K. Tandon |
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Designation : |
Director |
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Name : |
Mr. R. R. Wadhwani |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Shareholding
of Promoter Promoter Group |
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Indian
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Individuals / Hindu Undivided Family |
961372 |
28.44 |
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Foreign |
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Individuals (Non-Resident Induviduals/ Foreign Individuals) |
414068 |
12.25 |
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Total
Shareholding of Promoter Promoter Group ( |
1375440 |
40.69 |
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Public
shareholding |
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Institutions |
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Mutual
Funds / Axis |
6684 |
0.20 |
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Financial
Institutions/Banks |
186047 |
5.50 |
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Foreign
Institutional Investors |
3670 |
0.11 |
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Non-Institutions |
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Bodies
Corporate |
143265 |
4.23 |
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Individuals
- |
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Individual
shareholders holding nominal share capital up to Rs.0.100 million. |
748766 |
22.15 |
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Individual
shareholders holding nominal share capital in excess of Rs. 0.100 million. |
100728 |
2.98 |
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Clearing
Members |
16841 |
0.52 |
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Non-
Resident Indians |
37665 |
1.11 |
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Foreign
Companies |
150218 |
4.44 |
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Sub
- Total |
1393884 |
41.24 |
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Shares
held by Custodians against which Depository Receipts have been issued. |
610980 |
18.07 |
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GROUND TOTAL |
3380304 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of
Aluminium Extruded Products |
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Products : |
Item Code No.: 7610 Products Descriptions:
Aluminium Extruded Sections/ Profiles |
GENERAL
INFORMATION
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No. of Employees : |
250 |
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Bankers : |
State Bank of India |
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Facilities : |
Note: Working Capital facilities by bankers are secured by first pari passsu
charge on all the movable assets of the company and second charge on the
immovable assets of the company.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rohira Mehta and Associates Chartered Accountant |
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Address : |
Mumbai |
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Group Companies : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3380304 |
Equity Shares |
Rs.10/- each |
Rs.33.803
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2008 |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
33.803 |
33.803 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
219.416 |
206.850 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
253.219 |
240.653 |
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LOAN FUNDS |
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1] Secured Loans |
|
5.921 |
22.361 |
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2] Unsecured Loans |
|
0.064 |
2.814 |
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TOTAL BORROWING |
|
5.985 |
25.175 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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259.204 |
265.828 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
106.506 |
100.875 |
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Capital work-in-progress |
|
0.013 |
0.289 |
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INVESTMENT |
|
20.119 |
0.000 |
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DEFERREX TAX ASSETS |
|
0.917 |
0.510 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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34.939
|
36.034 |
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Sundry Debtors |
|
68.489
|
97.954 |
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Cash & Bank Balances |
|
8.688
|
6.597 |
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Other Current Assets |
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0.000
|
0.000 |
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Loans & Advances |
|
63.389
|
52.747 |
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Total
Current Assets |
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175.505
|
193.332 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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44.452
|
29.972 |
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Provisions |
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0.000
|
0.000 |
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Total
Current Liabilities |
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44.452
|
29.972 |
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Net Current Assets |
|
131.053
|
163.360 |
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MISCELLANEOUS EXPENSES |
|
0.596 |
0.794 |
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TOTAL |
|
259.204 |
265.828 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
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Sales Turnover |
|
427.234 |
400.781 |
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Other Income |
|
0.000 |
0.000 |
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Total Income |
|
427.234 |
400.781 |
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Profit/(Loss) Before Tax |
|
25.386 |
24.985 |
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Provision for Taxation |
|
8.866 |
8.399 |
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Profit/(Loss) After Tax |
|
16.520 |
16.586 |
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Import Value |
|
27.233 |
33.242 |
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Export Value |
|
104.343 |
138.575 |
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Expenditures : |
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Cost of Materials |
|
329.076 |
311.973 |
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Increase/(Decrease) in Finished Goods |
|
7.489 |
1.096 |
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Employee Cost |
|
12.482 |
10.213 |
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Interest and Financial Charge |
|
4.700 |
8.348 |
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Insurance Expenses |
|
39.354 |
36.010 |
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Other Expenditure |
|
8.747 |
8.156 |
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Total Expenditure |
|
401.848 |
375.796 |
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QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2008 1st Quarter |
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Sales Turnover |
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|
114.100 |
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Other Income |
|
|
0.000 |
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Total Income |
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|
114.100 |
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Total Expenditure |
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|
105.100 |
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Operating Profile |
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|
9.000 |
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Interests |
|
|
0.500 |
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Gross Profit |
|
|
8.500 |
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Depreciation |
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|
2.600 |
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Tax |
|
|
2.300 |
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Reported PAT |
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|
3.800 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2008 |
31.03.2007 |
|
Debt-Equity Ratio |
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|
0.06
|
0.10 |
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Long Term Debt-Equity Shares |
|
|
0.03
|
0.07 |
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Current Ratio |
|
|
4.19
|
5.09 |
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TURNOVER RATIOS |
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Fixed Assets |
|
|
3.78
|
3.57 |
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Inventory |
|
|
12.40
|
10.83 |
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Debtors |
|
|
5.28
|
3.98 |
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Interests Cover Ratio |
|
|
6.40
|
4.01 |
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Operating Profit Margin (%) |
|
|
8.83
|
10.65 |
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Profit Before Interests and Tax Margin (%) |
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|
6.85
|
8.54 |
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Cash Profit Margin (%) |
|
|
5.73
|
6.36 |
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Adjusted Net Profit Margin (%) |
|
|
3.75
|
4.26 |
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Return On Capital Employed (%) |
|
|
11.50
|
12.56 |
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Return On Net Worth (%) |
|
|
6.68
|
6.90 |
LOCAL AGENCY
FURTHER INFORMATION
MANAGEMENT
DISCUSSION AND ANALYSIS:
Business Review:
Company supplies various sections for industrial applications like
textile machinery, construction industry, chemical industry etc. The quality
and precision in these sections are of high importance and the company is
committed for providing both quality and service to these sectors. Aluminium
extrusion has two major inputs. One is aluminium billets and the other is
extrusion die. Both are important to get successful quality extrusions on
consistent basis. Although the possibilities of different shapes and profiles
are very large, still the process has some inherent limitations. Also for an
extruder it is a challenge to come out with newer and newer products. With its
plant located at Pithampur in Madhya Pradesh the company is a well reputed name
in the field of aluminium extrusion. Without compromising on the quality,
through their consistent research and development program they always bring
innovative ideas to market their products all around the globe. Utilizing the
best advanced technology in aluminium extrusion field, they make sure that each
product that leave their factory premises results in further business
enhancement of their clients.
Global
Industry Overview:
Globally it is expected that from the year 2005 to 2010, the annual growth for
aluminium extrusions would be somewhere around 4.9 percent. Talking of the
Chinese Aluminium Extrusion it has seen a phenomenal growth in the last 15
years. The United States Aluminium extrusion industry has shown strong growth
in the 1990's. In the year 2000 the total value of industry shipments was
pegged at $6.05 billion. In USA the primary consumer of extruded aluminium
products is the construction industry. However this trend is changing with
automotive industry taking to extruded aluminium products big way from the year
2000. The importance of extrusion industry can be gauged from the fact that out
of the total number of firms engaged in aluminium production nearly 36% are dealing
in extrusion. The US is also the leading country when it comes to per head
consumption of Extruded Aluminium products. Company has the following
competitive advantage in world market:
- Low labor and
land cost
- Sizeable
market support for further expansion
- Product
diversity and relatively easier financing
- Self
contained facility.
- Low packaging
Cost
Domestic
Industry Overview:
Aluminium extrusion presents an unlimited possibility in terms of shapes and
profiles. They find wide range of applications. Behind the high-rise buildings
and architectural structures lies one unifying force of Aluminium, this is
slowly but surely becoming one of the modern world's most versatile materials,
particularly in the form of extrusion in India. Aluminium Extrusions present us
unlimited possibilities in terms of shapes & profiles. They find wide range
of applications.
Future Outlook:
The following are important factors in guiding the functioning of
Company:
Competitive Excellence:
For competing with offshore imports, only price is not enough. What is needed
is superior quality, value-added services, customization and exemplary customer
service.
Process Integration:
There is need to have a total system approach in the aluminum extrusion
industry. Things like thermal alignment during the extrusion process gives rise
to performance improvements for getting increased productivity and reduce the
level of scrap. Conducting of profitability analysis throughout a business unit
also gives rise to operational efficiencies. To conclude the need of the hour
is to have a holistic approach toward the aluminium extrusion industry.
Attempts that are directed to isolate individual functions as discreet units
unperturbed by related activities would invariably result in failures and
loss.
Strategies for Success:
To succeed in the increasingly competitive world market for Aluminium extrusion
there is requirement to understand market drivers in the Aluminium Extrusion
Industry. Other than that, there is also a need for some well thought out
strategies for garnering market share and beat competitors which can be done by
adopting the following strategies:
- Shorter lead
time
- Look out for
niche market
- Lower the
production cost
- Value added
services
- Expand
production capacity
- Upgrade
extrusion equipment
- Pooled
research approach
- Export
oriented approach
Review
of Company's Operation:
Empowered with highly experienced engineers, speciality lies in the
manufacture of extraordinary, complex and intricate aluminium extrusion parts.
While very few extruders can handle a wide range of size, weight and tolerance
requirements, their aluminium extrusion products stands out as one of the best.
They offer complete assortment of aluminium extrusions that is custom
manufacture as they can provide everything need to create aluminum extrusion
structure or assembly. They offer aluminium extrusions for various
applications. In addition, they also provide customization to their range of
aluminium extrusions as per the client's requirements.
The Company offers aluminium extrusions materials conforming to International
standards, consistent metallurgical and mechanical properties, and the best
alloy for anodizing application, dimensional accuracy, and excellent surface
finish. They mostly manufacture different kinds of window parts to suit the
needs of their customers. Apart from their products used in industries like
automobiles, buildings, etc. they also specialize in producing aluminum parts
for the consumer products industry. These products can be used in industries
like electronic, furniture, luggage and home furnishings. They offer a wide,
range of aluminum extrusions for electric control panels in various sizes and
shapes used in electric devices and switchgears; they offer these control
panels extrusion in various specifications. The company further contributes to
the building industry by manufacturing aluminum fences that are used in malls
and other buildings. Fences are also used in the automotive industry as
conveyors. Production of fences is again completely customer oriented.
RESULTS OF
OPERATIONS:
The gross turnover of the Company for the 2007-08 is Rs.469.478 Millions as
against Rs.430.600 Millions in the previous year. The Net Profit before Tax is
Rs.25.386 Millions as against Rs.24.985 Millions in the previous year. The
Profit after Tax is Rs.16.520 Millions as against Rs.16.586 Millions in the
previous year.
Fixed Assets:
- Land
- Factory Building
- Building
- Plant and Machinery
- Dies and Patterns
- Office Equipment
- Electrical Equipment
- Furniture and Fixture
- Vehicles
- Computers
Website Details:
Introduction:
Subject is a secondary producer of
Aluminum in India. Company is a part of The Man Group and is demerged from Man
(India) Industries Limited with effect from March 24, 2007. It was incorporated
in 1988 with a project to manufacture Aluminium Extrusions. In a record time of
11 months the company commenced commercial production & today has the
distinction of being India's largest manufacturer & exporter of Aluminium
Extruded Products, comprising 50% of the country's exports.
Man (India) Industries an ISO
9001/14001/18001 accredited company is a manufacturer and exporter of large
diameter Carbon Steel Line Pipes for various high pressure transmission
applications for Gas, Crude Oil, Petrochemical Products and Potable Water. With
operations in India, US, Europe, UAE and South East Asia, Man (India)
Industries a listed company on Indian bourses continues to seek improvement in
its business, having set benchmarks to grades as standards in Aluminum and SAW
Pipe manufacturing.
Management Talk:
The Man Group has emerged out as a well diversified industrial conglomerate by the virtue of the vision and the dynamic leadership of its management. With a trading background of more than 32 years, the senior members of Mansukhani family ventured into manufacturing in the year 1988 with the Aluminium Extrusion Division and did not turn back there after. With the establishment of SAW Pipe Division in the year 1994 the Group has come a long way by consistently scaling new heights and building up impressive track record of exponential growth.
The Group steered by the Group Chairman, Mr. R. C. Mansukhani has always believed in achieving high output in every aspect of the business by adding values to work by strict adherence to the following key principles:
·
Efficient Planning and Optimization of Finance, Resources
and Manpower
·
Accurate Vision of Market Growth and Adequate Expansion
and Diversification
·
No compromise with Quality of Products and Services
·
Continuous Improvement in Systems to maintain Leading
Position in the Global Market
·
Total Customer Satisfaction
·
Continuous Employee Motivation
·
Healthy and Long Lasting Vendor Relations
Products Profile:
With an installed capacity of 8,000 tpa, the company's plant
located at Pithampur approx. 30 kms
from Indore in the state of Madhya Pradesh. Company produces a
comprehensive range of custom made shapes which find applications in different
areas. Some of the major segments of industries which their profiles find
application in export/domestic market are:
- Automobiles
- Automation
- AirConditioning
- Architectural
- Building & Construction
- Carpet Profiles
- Curtain Wall
- Doors
- Electrical
- Electronics
- Heavy Engineering
- Hinge / Handle
- HeatSinks
- Irrigation
- Ladder Profiles
- Lighting
- Luggage
- Road Transport
- Scaffolding
- Shutter
- Syntex
- Textiles
- Ventilation
- Windows
In addition to the said specific profiles, they also produce
a wide range of standard profiles for Domestic and Export market. A brief list
of the available standard nomenclature is :
- Round Bar
- Square Bar
- Special Bar
- Flat Bar
- Flat Bar (Half Round)
- Flat Bar (Full Round)
- Octagonal Bar
- Hexagonal Bar
- Angle (Equal)
- Angle (Unequal)
- Angle (with radius)
- Angle (with surration)
- Channel (Equal Thickness)
- Channel (Unequal Thickness)
- Special Channel
- Channel (Round Corners)
- Double Glass Channels
- Tee
- Aldrop Tee
- Special Tee (square Bulb)
- Special Tee (Bulb with radius)
- Beam (Uniform & Non Uniform)
- Round Tube
- Square Tube
- Rectangular Tube
- Square Tube (Round Corner)
- Rectangular Tube (Round Corner)
- Fluted Tube
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.46.94 |
|
UK Pound |
1 |
Rs.85.57 |
|
Euro |
1 |
Rs.67.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|