MIRA
INFORM REPORT
|
Report Date : |
13.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ISGEC – DIVISION
OF 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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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 |
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Designation : |
Director |
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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 |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
35,78,180 |
48.55 |
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FIs, Banks & Mutual Funds |
68,320 |
0.93 |
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Others (Public) |
37,23,040 |
50.52 |
BUSINESS DETAILS
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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 v
Shell and Tube Heat
Exchangers v v
Pressure Vessels v v
Boiler Drums v v
Reactors v v
Columns and Towers v v
Boiler Pressure Parts v v
Galvanising Baths on Kettles v v
Fume Hoods Presses v v
Straight Side
Presses-Mechanical v v
Straight Side
Presses-Hydraulic v v
‘C’ Frame Presses-Mechanical Boilers v v
Dump Grate Boilers v v
Travelling Grate Boilers v v
Atmospheric Fluidised Bed
Combustion Boiler (AFBC) v v
Circulating Fluidised Bed
Combustion Boiler (CFBC) v v
Oil/Gas Fired Boilers v v
Waste Heats Recovery Boilers v v
Deaerators v v
Spares Steel
Castings v v
Hydro Turbine Castings v v
Gas Turbine Castings v v
Steam Turbine Castings v v
Valve Castings v v
Mn Steel Castings v v
Ni-Hard Castings v v
Pump Castings v v
General Castings Sugar
Plants and Machinery v v
Complete Cane Sugar Plants v v
High Performance Cane Mills v v
Process House Equipment v v
Bagasse Fired Boilers v v
Spares Iron
Castings v v
Castings for Pump and
Compressor Industry v v
Castings for Chemical and Dye
Stuff Industry v v
Castings for Soda Ash
Industry v v
Castings for Tool and Dies
Industry v v
Castings for Machine Tools
Industry v v
Castings for Steel Plant
Industry v v
Castings for Sugar Industry Liquified
Gas Containers General
Fabrication v 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) |
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Mechanical
Presses |
Nos. |
57 (77) |
|
Chlorine and Other Liquefied Gas
Containers |
Nos. |
7093 (7935) |
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Hydraulic Presses |
Nos. |
15 (16) |
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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
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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 v
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 |
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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 |
30.09.2007 |
30.09.2006 |
30.09.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
73.695 |
73.695 |
73.695 |
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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 |
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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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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 |
|
|
|
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Inventories |
2244.571
|
1690.170
|
1191.446
|
|
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Sundry Debtors |
2613.705
|
1821.162
|
1195.136
|
|
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Cash & Bank Balances |
105.616
|
159.886
|
105.926
|
|
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Other Current Assets |
2.055
|
0.667
|
0.184
|
|
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Loans & Advances |
1168.073
|
1066.854
|
387.152
|
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Total
Current Assets |
6134.020
|
4738.739 |
2879.844
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
3989.418
|
3685.567
|
1896.027
|
|
|
Provisions |
868.362
|
564.026
|
250.499
|
|
Total
Current Liabilities |
4857.780
|
4249.593 |
2146.526
|
|
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Net Current Assets |
6242.187
|
4161.031 |
733.318
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
|
|
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TOTAL |
3570.179 |
2469.389 |
2071.432 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.09.2007 |
30.09.2006 |
30.09.2005 |
|
|
Sales Turnover |
11397.758 |
8817.157 |
4402.870 |
|
|
Other Income |
162.705 |
33.699 |
0.000 |
|
|
Total Income |
11560.463 |
8850.856 |
4402.870 |
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|
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|
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|
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 |
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Earnings in Foreign Currency : |
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|
|
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Export Earnings |
230.090 |
123.311 |
652.504 |
|
Total Earnings |
230.090 |
123.311 |
652.504 |
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Imports : |
|
|
|
|
|
|
Others |
0.000 |
0.000 |
560.054 |
|
Total Imports |
0.000 |
0.000 |
560.054 |
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Expenditures : |
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|
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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 |
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.
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 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).
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
Ř
ISGEC
Ř
Ř
Engineering Procurement &
Construction (EPC)
Ř
Ř
Steel Castings (Uttar Pradesh
Steels)
Ř
Ř
Saraswati Sugar Mills
isgec john thompson
Ř
Ř
More than 400 water tube boiler
installations
Ř
Ř
Wide Experience in
Cogeneration, Captive Power applications
Ř
Ř
Technology for Fossil and
Biomass Fired Boilers
- Dump Grate
- Travelling Grate
- Atmospheric Fluidised Bed
- Circulating Fluidised Bed
Ř
Ř
Oil/Gas Fired Boilers
Ř
Ř
World Class manufacturing
facilities
Ř
Ř
ISO 9001 Certified
infrastructure
Manufacturing
Facilities
Ř
Ř
Crane Capacity – 150 tonnes
Ř
Ř
Shop Area 30,000 sq. mtrs (
36000 sq. yards)
Forming
Capabilities
Ř
Ř
Rolling Thickness – 200 mm (8
inches)
Ř
Ř
Dished End Thickness – 125 mm
(5 inches)
Drilling
Capabilities
Ř
Ř
Thickness – 300 mm (10 inches)
Welding
Ř
Ř
Twin Wire Submerged Arc Welding
Ř
Ř
Submerged Arc Welding
Ř
Ř
Metal Inert Gas Welding
Ř
Ř
Tungsten Inert Gas Welding
Ř
Ř
Shielded Metal Arc Welding
Testing
Ř
Ř
Radiography upto 200 mm (8
inches) thickness
Ř
Ř
Tensile Test including Elevated
Ř
Ř
Temperature Testing upt 800C
Ř
Ř
Impact Testing upto (-) 196C
Ř
Ř
Metallurgical Microscope X-2000
and Photography facility
Ř
Ř
Ultrasonic Testing
Ř
Ř
Magnetic Particle Testing
Ř
Ř
Liquid Penetrant Testing
Heat
Treatment
Ř
Ř
Four Oil Fired Furnances
Maximum size : 4500 mm x 4000 mm x 14500 mm (15 ft. x 13ft. x 48 ft.)
Ř
Ř
Local Stress Relieving by
Electrical Resistance Method
Codes
& Standards
Ř
Ř
ASME Section 1
Ř
Ř
ISO 831
Ř
Ř
BS 1113
Ř
Ř
Indian Standards
Engineering
Capabilities
Ř
Ř
In-house Engineering facilities
– Mechanical, Process, Structural, Electrical, Control and Instrumentation
Ř
Ř
49 Designers
Ř
Ř
Fully Computerized Design
Office
Ř
Ř
Latest Design Software
Ř
Ř
Stress Analysis for critical
components by Finite Element Method
Ř
Ř
Softwares – Autocad, Autolisp,
Cadworx, Ceasar, Staad, Amigo, MS Project – latest versions
Ř
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
Ř
ISO 9001 Certified
Ř
Ř
ASME – ‘U2’, ‘U’ and ‘S’ Stamps
Ř
Ř
Lloyds Class I
It is in trade
terms with :
Fossil
Fuels
Ř
Ř
Indian Aluminium Company,
Hirakud, India
Ř
Ř
Nirma Limited, Bhavnager, India
Ř
Ř
Indian Charge Chrome Limited,
India
Ř
Ř
Atul Products Limited, Gujarat,
India
Oil
and Gas
Ř
Ř
National Fertilizers Limited,
Nangal, India
Ř
Ř
Hindustan Fertilizer Limited,
Namrup, India
Ř
Ř
D.M.D.E., Secunderabad, India
Ř
Ř
National Fertilizers Limited,
Vijaipur, Guna, India
Ř
Ř
National Organic and Chemicals
Industrial Limited, (NOCIL), India
Ř
Ř
Indian Petrochemicals Corporation
Limited, Baroda, Gujarat, India
Ř
Ř
Indian Oil Corporation Barauni
Refinery, India
Bio
Mass Fuels
Ř
Ř
P.T. Indal Kiat Pulp and Paper
Corporation, Indonesia
Ř
Ř
Orient Paper Mills, Amlai,
India
Ř
Ř
Kamlapur Sugar, Kamlapur, India
Ř
Ř
Lam Son Sugar Factory, Vietnam
Ř
Ř
Sayarikatg Gula Padang Terap
(Kedah) Malaysia
Ř
Ř
Varinder Agro Chemicals
Limited, India
Ř
Ř
Nuchem Limited, Tohana, India
Ř
Ř
Varam Power Plant, India
Ř
Ř
Jyoti Bio Energy, India
Ř
Ř
South Nyanza Sugar Company,
Awendo, Kenya
Cogeneration
Boilers
Ř
Ř
Supreme Renewable Energy,
Pennadam, India
Ř
Ř
Gem Sugars, India
Ř
Ř
The Mysore Sugar Company
Limited, India
Ř
Ř
Gayatri Sugar Mills, India
Ř
Ř
Thiru Arooran Sugar Limited,
India
Ř
Ř
Cheyyar Co-operative Sugar
Mills, India
Ř
Ř
Shri Prabhulingeshwar Sugar
Works Limited, India
Ř
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 v
Land (Free and Lese)
v v
Building and Road
v v
Plant and Machinery
v v
Furniture and Fixture
v v
Vehicles
v v
Railway Siding
v v
Tramway Lines
v v
Office Equipment
v 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 30.06.2008
(Rs. in Millions)
|
|
Particulars |
3 Months ended 30.06.08 |
Corresponding 3 Months ended in the previous year 30.06.07 |
Year to date figures for current Year ended 30.06.08 |
Year to date figures for the previous year ended 30.06.07 |
Previous Accounting year ended 30.09.2007 |
|
1 |
Gross Sales |
2924.800 |
3365.100 |
7721.700 |
8675.200 |
12038.700 |
|
2 |
Less: Excise Duty |
184.900 |
237.700 |
474.000 |
529.100 |
681.800 |
|
3 |
Net Sales /
Income from Operations |
2739.900 |
3127.400 |
7247.700 |
8146.100 |
11356.900 |
|
4 |
Other Income |
100.900 |
59.900 |
289.300 |
115.800 |
203.600 |
|
5 |
Total Income |
2840.800 |
3187.300 |
7537.000 |
8261.900 |
11560.500 |
|
6 |
Expenditure : |
|
|
|
|
|
|
|
(a) (Increase) /
decrease in stock-in-trade and work in progress |
[200.900] |
239.900 |
[1054.900] |
[20.700] |
138.300 |
|
|
(b) Consumption
of raw materials |
1156.900 |
671.700 |
3087.200 |
2183.900 |
2890.000 |
|
|
(c) Purchase of
traded goods |
800.200 |
1494.300 |
2709.200 |
3886.300 |
5236.600 |
|
|
(d) Employees
cost |
236.200 |
193.300 |
705.900 |
537.600 |
725.900 |
|
|
(e) Depreciation |
54.200 |
35.200 |
138.300 |
96.000 |
134.900 |
|
|
(f) Other
expenditure |
533.900 |
265.300 |
1360.300 |
872.600 |
1334.800 |
|
|
(g) Total |
2580.500 |
2899.700 |
6946.000 |
7555.700 |
10460.500 |
|
7 |
Interest |
27.400 |
5.900 |
48.800 |
19.000 |
27.900 |
|
8 |
Exceptional items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
9 |
Profit(+)/Loss(-)
from Ordinary Activities before |
232.900 |
281.700 |
542.200 |
687.200 |
1072.100 |
|
10 |
Tax expense |
80.400 |
98.800 |
190.200 |
236.500 |
373.000 |
|
11 |
Profit(+)/Loss(-)
from Ordinary Activities after ta |
152.500 |
182.900 |
352.000 |
450.700 |
699.100 |
|
12 |
Extraordinary
items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
13 |
Net
Profit(+)/Loss(-) for the period (11-12) |
152.500 |
182.900 |
352.000 |
450.700 |
699.100 |
|
14 |
Paid up Equity
Share Capital (Face value of share Rs.10/- each) |
73.700 |
73.700 |
73.700 |
73.700 |
73.700 |
|
15 |
Reserve excluding
revaluation reserves as per Balance Sheet of previous accounting year. |
|
|
|
|
2637.700 |
|
16 |
Basic and diluted
EPS for the period, for the year to date and for the previous year ( not to
be annualised) (Rs.) |
21.42 |
26.20 |
49.47 |
63.07 |
95.20 |
|
17 |
Public
Shareholding |
|
|
|
|
|
|
|
Number of shares |
3352948 |
3355494 |
3352948 |
3355494 |
3352948 |
|
|
Percentage of
shareholding |
45.50 |
45.53 |
45.50 |
45.53 |
45.50 |
Notes:-
1.Being single segment Company, segment wise reporting is not required.
2.The Share Transfer Agents, M/s. Alankit Assignments Limited, had
informed that two complaints were received by them during the quarter and were redressed
promptly. No complaint is pending.
3.The above results for the quarter ended 30th June, 2008 were reviewed
by the Auditors and Audit Committee and approved by the Board of Directors in
its meeting held on 25th July, 2008.
4.Figures have been regrouped/rearranged where ever necessary.
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 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.48.72 |
|
UK Pound |
1 |
Rs.82.17 |
|
Euro |
1 |
Rs.65.90 |
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 |
|