MIRA
INFORM REPORT
|
Report Date : |
07.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
ORIENT ABRASIVES LIMITED |
|
|
|
|
Registered Office : |
1307, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
12.11.1971 |
|
|
|
|
Com. Reg. No.: |
55-5854 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24299DL1971PLC005854 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
RKTO00158 E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACO0221C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers of Fused Aluminium Oxide Grains, Calcined Products, Bonded Abrasives, Refractories, Monolithics and Waste. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
|
|
|
|
Maximum Credit Limit : |
USD 6000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established company having satisfactory track. Trade relations are fair. Financial position of the company appears to be sound. Business is active. Payments are reported to be regular. The company can be considered normal for business dealings
at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DENIED BY
|
Name : |
Mr. Amit Srivastava |
|
Designation : |
Accounts Manager |
LOCATIONS
|
Registered Office : |
1307, |
|
Tel. No.: |
91-11-26449480/ 26462225/ 26425446/ 26425447/46425400 |
|
Fax No.: |
91-11-26443859/46425444 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
High Alumina Raw Materials (Abrasives Grains & Power Division ) GIDC Industrial Area, Porbandar -
360 577, Tel. No. 91-286-242913/241788/789/246064 Fax No. 91-286-242719 E Mail : oal@ad1.vsnl.net.in |
|
|
|
|
Factory 2 : |
Bonded Abrasives
Division: SP-148A, RIICO Industrial Area, Bhiwadi, District Alwar, |
|
|
|
|
Factory 3 : |
Refractories Division: SP – 148B, RIICO Industrial Area, Bhiwadi, Dist. Alwar, |
|
|
|
|
Factory 4 : |
13/1B, Mullathopu, Mamangam Post, |
|
|
|
|
Regional offices: |
Located at: ·
·
Mumbai, ·
Kolkata, ·
· Bhadravati |
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. Rajendra Kumar Rajgarhia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rama Shankar Bajoria |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Umesh Khaitan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tribhuvan Nath Chaturvedi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shri Gopal Rajgarhia |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
58 years |
|
Qualification : |
B. Tech. (Hons.), S. M. (MIT) |
|
Experience : |
34 years |
|
Date of Appointment : |
01.08.1973 |
|
|
|
|
Name : |
Mr. Sudhir Kumar Samarendra Narayan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prem Prakash Khanna |
|
Designation : |
Executive director |
|
|
|
|
Name : |
Mr. B. L. Gupta |
|
Designation : |
Sr. Vice President – Finance |
KEY EXECUTIVES
|
Name : |
Mr. Deepak C. S. |
|
Designation : |
Company Secretary |
|
Address: |
1307, |
|
Tel. No.: |
91-11-26449480/26425446/7 |
|
Fax No.: |
91-11-26443859 |
|
E-mail : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.12.2010
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
63,551,814 |
53.12 |
|
|
124,580 |
0.10 |
|
|
231,000 |
0.19 |
|
|
231,000 |
0.19 |
|
|
63,907,394 |
53.42 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
63,907,394 |
53.42 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
44,000 |
0.04 |
|
|
23,330 |
0.02 |
|
|
500 |
- |
|
|
67,830 |
0.06 |
|
|
|
|
|
|
12,243,941 |
10.23 |
|
|
|
|
|
|
26,655,217 |
22.28 |
|
|
15,619,155 |
13.06 |
|
|
1,145,663 |
0.96 |
|
|
521,707 |
0.44 |
|
|
81,015 |
0.07 |
|
|
542,941 |
0.45 |
|
|
55,663,976 |
46.53 |
|
Total Public shareholding (B) |
55,731,806 |
46.58 |
|
Total (A)+(B) |
119,639,200 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
119,639,200 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Trusts
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Fused Aluminium Oxide Grains, Calcined Products, Bonded Abrasives, Refractories, Monolithics and Waste. |
||||||||||
|
|
|
||||||||||
|
Products : |
· Fused Aluminium Oxide Grains · Calcined Products · Bonded Abrasives · Refractories · Monolithics · Ceramic Paper · Waste
|
||||||||||
|
|
|
||||||||||
|
Exports : |
|
||||||||||
|
Countries : |
v
v
The v
v
v
v
v
v
v
|
PRODUCTION STATUS (As on 31.03.2010);-
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Fused Aluminium Oxide Grains |
MT |
28500 |
26337 |
|
Calcined Products |
MT |
74250 |
51383 |
|
Refractories |
MT |
16000 |
12313 |
|
Monolithics |
MT |
28000 |
18412 |
|
Ceramic Paper |
Pcs |
20000 |
1449 |
|
Waste |
MT |
---- |
43752 |
Notes:
1. Production of Fused
Aluminum Oxide Grains 6,978 MT for captive consumption (Previous year 6,892
MT).
2. Production of
Calcined Products includes 36,980 MT for captive consumption (Previous year
39,664 MT).
3. Production of Refractories
includes 6 MT for captive consumption (Previous year 18 MT)
4. Production of
Monolithics includes 3,231 MT for captive consumption (Previous year 5,910 MT).
5. Production of
waste includes 519 MT used for captive consumption (Previous year 247 MT).
GENERAL INFORMATION
|
Customers : |
v Wheel Manufacturers v Refractory Manufacturers v Ceramic Industries v Steel and Cement Industries v Zinc and Copper Smelters |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
No. of Employees : |
600 |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Bankers : |
v
UCO Bank, v HDFC Bank v
State Bank of v CITI Bank v ICICI Bank |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Facilities : |
Notes: 1. The rupee term
loan is secured by first pari passu charge on the movable fixed assets of the
Company. The loan is further secured by mortgage of immovable properties of
the Company. 2. The Foreign
currency term loan amounting Rs. 54.696 millions (Previous year Rs. 92.610
millions) is secured by first pari passu charge on the movable fixed assets
of the Company. The loan is further secured by mortgage of the immovable
properties of the Company. Foreign currency
term loan amounting Rs. 38.431 millions (Previous Rs. Nil) is secured by
hypothecation of stocks of raw materials, finished and semi-finished goods
and book debts of the Company. The Loan is further secured by second pari
passu charge on the entire fixed assets of the Company including mortgage of
immovable properties of the Company. 3. Cash credit
facilities from banks are secured by hypothecation of stocks of raw
materials, finished and semi-finished goods and book debts of the Company.
These facilities are further secured by second pari passu charge on the entire
Fixed Assets of the Company including mortgage of all immovable properties of
the Company. 4. Term Loans
amounting to Rs. 169.710 millions (Previous year Rs. 211.527 millions) and
Cash Credit Facilities amounting to Rs. 322.417 millions (Previous year Rs.
350.059 millions) are also personally guaranteed by Managing Director of the
Company.
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Banking Relations
: |
Good |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Auditors : |
S. R. Batliboi and Company Chartered Accountants |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Associates/Subsidiaries : |
v
Orient
Iron and Steel Company Address: Kolkata, Line of Business: Manufacturer of steel shots v
Perfectpac Limited v
Madhushree Properties Private Limited v
Unifrax India Limited v
Rajgarhia Leasing and Financial Services Private
Limited v
Pyramid Abrasives Private Limited v
AJR Fiscal Private Limited v
Orient Abratech Private Limited v
Faridabad Paper Mills Limited v
APM Industries Limited v
Orient Abratool Private Limited v
Hindustan General Industries Limited v
Orient Coated Private Limited v
HGI Finance and Leasing Limited v
Orient Steel and Industries Limited v
Rovo Marketing Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000 |
6% Redeemable Cumulative Preference shares |
Rs.100/- each |
Rs.40.000 millions |
|
120000000 |
Equity shares |
Rs.1/- each |
Rs.120.000 millions |
|
|
Total |
|
Rs.160.000
Millions |
Issued, Subscribed :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119659200 |
Equity shares |
Rs.1/- each |
Rs.119.659
millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119639200 |
Equity shares |
Rs.1/- each |
Rs.119.639
millions |
|
Add : |
Shares Forfeited |
|
Rs.0.013
millions |
|
|
|
Total |
Rs.119.652 millions |
Notes:
Of the above:
104,684,300 (Previous year 44,864,700) Equity shares of Re. 1/- each are allotted
as fully paid bonus shares by capitalization of Capital Redemption Reserve,
Securities Premium and General Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
119.652 |
59.833 |
59.833 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1385.520 |
1076.266 |
848.805 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1505.172 |
1136.099 |
908.638 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
492.127 |
561.586 |
657.904 |
|
|
2] Unsecured Loans |
141.125 |
28.380 |
115.686 |
|
|
TOTAL BORROWING |
633.252 |
589.966 |
773.590 |
|
|
DEFERRED TAX LIABILITIES |
55.984 |
42.524 |
40.373 |
|
|
|
|
|
|
|
|
TOTAL |
2194.408 |
1768.589 |
1722.601 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1189.319 |
923.875 |
891.353 |
|
|
Capital work-in-progress |
133.202 |
23.977 |
39.031 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.027 |
0.027 |
0.027 |
|
|
DEFERREX TAX ASSETS |
3.398 |
4.249 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
658.051
|
613.005
|
532.434
|
|
|
Sundry Debtors |
576.059
|
594.748
|
527.321
|
|
|
Cash & Bank Balances |
25.955
|
19.774
|
26.697
|
|
|
Other Current Assets |
3.920
|
3.468
|
3.198
|
|
|
Loans & Advances |
134.726
|
97.832
|
110.869
|
|
Total
Current Assets |
1398.711
|
1328.827
|
1200.519
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
302.680
|
288.547
|
0.000
|
|
|
Other Current Liabilities |
60.208
|
380.720
|
321.914
|
|
|
Provisions |
167.361
|
131.646
|
86.415
|
|
Total
Current Liabilities |
530.249
|
512.366
|
408.329
|
|
|
Net Current Assets |
868.462
|
816.461
|
792.190
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2194.408 |
1768.589 |
1722.601 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3217.836 |
3020.094 |
2299.697 |
|
|
|
Other Income |
23.471 |
25.964 |
21.082 |
|
|
|
TOTAL (A) |
3241.307 |
3046.058 |
2320.779 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Goods purchase for resale |
253.877 |
297.024 |
238.235 |
|
|
|
Raw materials consumed |
918.707 |
893.034 |
728.119 |
|
|
|
Personnel Expenses |
277.551 |
243.860 |
209.906 |
|
|
|
Operating and other Expenses |
934.651 |
945.674 |
779.351 |
|
|
|
Decrease/(Increase) in Inventories |
43.592 |
(51.644) |
(55.496) |
|
|
|
(Gain)/Loss on derivative contracts |
(34.720) |
51.452 |
0.000 |
|
|
|
TOTAL (B) |
2393.658 |
2379.400 |
1900.115 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
847.649 |
666.658 |
420.664 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
51.573 |
79.150 |
71.598 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
796.076 |
587.508 |
349.066 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
108.061 |
97.126 |
79.218 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
688.015 |
490.382 |
269.848 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
176.365 |
171.940 |
75.097 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
511.650 |
318.442 |
194.751 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
312.395 |
284.934 |
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
300.000 |
200.000 |
|
|
|
|
Proposed Dividend on Equity Shares |
119.639 |
77.765 |
NA |
|
|
|
Corporate Dividend Tax |
19.872 |
13.216 |
|
|
|
BALANCE CARRIED
TO THE B/S |
384.534 |
312.395 |
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
311.399 |
342.492 |
|
|
|
|
Royalty |
2.338 |
1.367 |
|
|
|
TOTAL EARNINGS |
313.737 |
343.859 |
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
170.424 |
97.792 |
|
|
|
|
Stores & Spares |
39.386 |
28.193 |
|
|
|
|
Capital Goods |
2.203 |
3.580 |
NA |
|
|
|
Goods purchased for resale |
10.367 |
12.353 |
|
|
|
TOTAL IMPORTS |
222.380 |
141.918 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.28 |
2.66 |
3.26 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
863.490 |
828.360 |
961.940 |
|
Total Expenditure |
642.210 |
658.750 |
766.320 |
|
PBIDT (Excl OI) |
221.280 |
169.610 |
195.620 |
|
Other Income |
0.050 |
5.180 |
0.820 |
|
Operating Profit |
221.330 |
174.790 |
196.440 |
|
Interest |
12.030 |
18.090 |
19.680 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
209.300 |
156.690 |
176.760 |
|
Depreciation |
31.490 |
31.730 |
34.260 |
|
Profit Before Tax |
177.810 |
124.960 |
142.500 |
|
Tax |
56.070 |
28.370 |
41.860 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
121.730 |
96.590 |
100.640 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
121.730 |
96.590 |
100.640 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
15.79 |
10.45 |
8.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.38 |
16.24 |
11.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
26.58 |
21.77 |
12.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.46 |
0.43 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77 |
0.97 |
1.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.64 |
2.59 |
2.94 |
LOCAL AGENCY FURTHER INFORMATION
The details of
Sundry Creditors:
Rs. In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors
|
|
|
|
|
(a)
total outstanding dues to Micro and small Enterprises |
3.484 |
13.541 |
NA |
|
(b)
total outstanding dues of creditors other than Micro and
small Enterprises |
299.196 |
275.006 |
NA |
|
Total |
302.680 |
288.547 |
NA |
HISTORY:
Subject is a manufacturer of fuses aluminium oxide grains. It
is also produces Slide gate refractory and Grinding wheels.
The company has three divisions viz, Abrasive grains division (at Porbandar,
Gujarat); Bonded Abrasive division(at Alwar Dist., Rajasthan) and Refractories
division(at Alwar Dist. Rajasthan and
The abrasive grains division manufactures calcined bauxite and aluminium oxide
which are important raw materials for refractories used by the steel industry.
The company has set up a Power plant at Porbandar with an installed capacity to
produce 4.2 MW of power for the captive consumption by its abrasive grains
division. This power plant was commissioned in August, 1998 and is now
operating at full capacity.
In the coming years Steel and Engineering industries are expected to perform well.
Which consumes company's products as raw materials.
OPERATIONS REVIEW
The performance of
the Company continues to be very satisfactory. The net profit registered an
increase of 61 percent from Rs. 318.400 millions to Rs. 511.700 millions while
the turn over grew from Rs. 3339.500 millions to Rs. 3460.500 millions.
Reduction in power and fuel costs and unrealised foreign exchange gain were the
main contributors to increase in profits.
The exports
declined from Rs. 342.500 millions to Rs. 311.400 millions on account of global
recession in the steel industry. The performance of abrasive grains division
improved despite suspension of its operation from 16.01.2010 to 10.02.2010,
following an order from Gujarat Pollution Control Board. The turn over of the
division increased from Rs. 1182.800 millions to Rs. 1209.000 millions.
The refractory
division also contributed to the improvement in the performance of the company
registering an increase in both turn over and profits.
The Company’s
thermal power plants (both coal based and furnace oil based) are operating
satisfactorily meeting the maximum of power requirement of the Abrasives Grains
Division.
During the year
the company ventured into green energy generation by installing four Wind Turbines
with a total capacity of 5.1 MW. Three turbines of 1.5 MW each are installed in
Rajasthan and one of 0.6 MW is installed in Karnataka. The power generated is
being sold to the respective state electricity boards. This activity will also
contribute to further improvement in the operation of the company.
FUTURE OUTLOOK
The future outlook
of the company is satisfactory. All the business segments of the company are
expected to yield better results.
The company has
placed orders and expects to install four more Wind Turbines of 1.5 MW capacity
in the current year. Three turbines are being installed in the state of
Karnataka and one in Rajasthan. The total capacity of power generation from
Wind Turbines would be 11.1 MW by the end of the current year.
FIXED DEPOSIT
As on the date of this report there is no unclaimed fixed
deposit in the Company.
POSTAL BALLOT
During the year,
Main Objects and the other objects of the Company were altered through conduct of
postal ballot process, to include generation of electric energy from
non-conventional energy sources.
The postal ballot
process commenced on 31.07.2009 with the decision taken in the Board Meeting
and concluded on 26.09.2009 with the declaration of results by the Chairman.
MANAGEMENT DISCUSSION AND ANALYSIS General ReviewThe Company was incorporated in the year 1971 in New Delhi The Company has
three business divisions namely the Abrasives Grains Division (AGD) at
Porbander,
Thereafter the
Company established the Bonded Abrasives Division in 1980 at Bhiwadi, Rajsthan,
which was divested in the year 2006-07. The Refractory Division was set up in
the year in 1985 at Bhiwadi, Rajasthan.
The Company also
has a Power Division that generates electricity for captive consumption, which
was expanded in 2007-08 with the addition of a 9 MW coal based thermal power
plant. During 2009-10 the Company ventured into green energy projects by
setting up 4 wind turbines of a total generation capacity of 5.1 MW and the
capacity shall be further increased in the current year.
BUSINESS DIVISIONS/SEGMENTSAs mentioned above, the Company has three major business segments in terms of the nature of output i) Fused Aluminium Oxide Grains including Calcined Products and ii) Refractories and Monolithics and iii) Electricity (Power Division), which have been elucidated in the following paragraphs Abrasives Grains DivisionThe Abrasives Grains Division at Porbander is the first manufacturing unit set up by the Company. The Division manufactures calcined bauxite and fused Aluminium oxide abrasive grains. Raw bauxite and calcined alumina are the basic raw materials used for the manufacture of abrasive grains. Raw bauxite is procured from mines owned by the Company and others and calcined alumina is purchased from aluminium companies. A portion of these products is captively consumed by the Refractory Division at Bhiwadi and are also sold in the domestic market. Refractory DivisionThe unit manufactures various types of continuous casting and slide gate refractories, low cement castables etc. which are exclusively consumed in the steel plants. The Refractory Division exports a fair share of its output to various overseas customers. The major export customers are based in Egypt , Turkey , Indonesia , Italy , Pakistan , Kingdom of Saudi Arabia , Sultanate of Oman, Greece , Spain , Nigeria , Azerbaijan , Malaysia , Bulgaria , Thailand , Iran , Germany Power Division
The Company has a
total thermal power plant capacity of 18 MW out of which 9 MW is based on coal
and 9 MW on furnace oil. The thermal power plant based on coal is more
economical and is operated at full capacity. The electricity from this power
division is meant for captive consumption by the manufacturing division at
Porbander. Besides, as mentioned elsewhere, the Company set up wind mills of
total power generation capacity of 5.1 MW during the year. The power generated
by these plants are sold to the respective state power distribution companies.
FINANCIALS AND INTERNAL CONTROL
The gross turnover
of the Company during the year ended 31.03.2010 increased to Rs. 3460.500
millions. Gross profit and net profit were Rs. 688.000 millions and Rs. 511.700
millions respectively. The gross profit increased by 40% while the net profit
surged by 61%.
The Company has an
adequate internal control system which is commensurate with its size and which
adopts the
best practices
prevalent in the industry. Besides conducting internal audit at regular
intervals and implementing the measures suggested from time to time there is a
statutory audit committee comprising of independent directors in place to
oversee the internal control processes in the Company. The Company has also
received ISO 9001 : 2000 certification for the plant at Bhiwadi.
The enterprise
resource planning system (ERP) implemented in January, 2008 at Bhiwadi to
integrate the operations of various divisions of the Company in a phased manner
is operational and is yielding the desired results.
HUMAN RESOURCESThe Company believes in the strength of human resources and that it is the best form of business capital which needs to be explored and utilised to full potential. At the company, constant efforts are made in developing human resources by providing necessary training and taking care of employee welfare. The Company endeavors to keep the employees' motivation level high by providing congenial work atmosphere and rewarding/remunerating adequately. There are cordial relations between the management and the employees. CONCERNS AND FUTURE OUTLOOK
The demand for
abrasive grains will continue to be stable in future while that for
refractories is likely to be higher. This is in view of the emphasis laid by
the Government on core infrastructure development paving way for increased
production of steel.
Since the abrasive
grains division is a power intensive unit, the cost of production largely depends
on the cost of fuel which is very inconsistent.
Except for the
above concerns, the future of these manufacturing divisions looks encouraging.
Despite the crisis in
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2010
Rs. In Millions
|
|
Unaudited |
Unaudited |
|
Particulars |
For the Quarter Ended |
For the Half Year Ended |
|
Gross Sales/Income from operations |
887.882 |
1809.048 |
|
Less: Excise Duty |
67.671 |
130.484 |
|
a) Net Sales / Income from Operations |
820.211 |
1678.564 |
|
b) Other Operating Income |
8.146 |
13.281 |
|
Total Income |
828.357 |
1691.845 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and Work in Progress |
(5.780) |
(93.407) |
|
(b) Consumption of Raw Materials |
258.551 |
526.261 |
|
(c) Power and Fuel |
99.461 |
233.963 |
|
(d) Stores and spares consumed |
63.346 |
128.963 |
|
(e) Employees Cost |
80.964 |
161.692 |
|
(f) Purchase of traded goods |
80.383 |
148.586 |
|
(g) Depreciation |
31.733 |
63.218 |
|
(h) Unrealised foreign exchange loss/(gain) |
(5.196) |
0.664 |
|
(i) Other Expenditure |
81.829 |
189.053 |
|
Total Expenditure |
685.291 |
1358.993 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
143.066 |
332.852 |
|
Other Income |
(0.018) |
0.031 |
|
Profit/(Loss) before Interest and Exceptional items |
143.048 |
332.883 |
|
Interest |
18.094 |
30.125 |
|
Profit / (Loss) after interest before Exceptional items |
124.954 |
302.758 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
124.954 |
302.758 |
|
Tax Expenses |
|
|
|
Provision fro tax including differed tax |
28.366 |
84.437 |
|
Fringe benifit Tax |
0.000 |
0.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
96.588 |
218.321 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
96.588 |
218.321 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
119.652 |
119.652 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
Public Share
Holding |
|
|
|
Before Extraordinary
Items |
|
|
|
-Basic |
0.81 |
1.82 |
|
-Diluted |
0.81 |
1.82 |
|
After Extraordinary Items |
|
|
|
-Basic |
0.81 |
1.82 |
|
-Diluted |
0.81 |
1.82 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
55763806 |
55763806 |
|
- Percentage of shareholding |
46.61 |
46.61 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
63875394 |
63875394 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
|
- Percentage of Share (as a % of the total share capital of the company) |
53.39 |
53.39 |
Notes:
1 The above
financial results were reviewed by the Audit Committee and the Auditors and
were approved by the Board of Directors at its meeting held on 30.10.2010
2 One 1 5 MW wind
turbine was commissioned in Jaisalmer Rajasthan in last week of September 2010
and another in Kalmangi, Karnataka In the first week of October 2010 Two more
wind turbines of 1 5 MW each are expected to be commissioned Karnataka by
December, 2010
3 There were no
Investor complaints outstanding at the beginning oft he quarter during the quarter,
5 complaints were received and were disposed of
4 Previous
year/period figures have been regrouped, wherever considered necessary
5 The Company's
abrasives grams plant at Porbander remained closed for about a month pursuant
to a directive of the Gujarat Pollution Control Board
The plant was
resumed following an order of the Hon'ble High Court of Gujarat dated
14.09.2010 The writ petition in public Interest filed in the matter in the year
2006 against the Company was dismissed by the Hon'ble High Court vide an order
dated 11.10.2010
6 The Statement of
Assets and Liabilities as at 30.09.2010 is as given below
STATEMENTS
OF ASSETS AND LIABILITIES AS AT 30.09.2010
Rs.
In Millions
|
|
Particulars |
30.09.2010
(Unaudited) |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
(a) Share Capital |
119.652 |
|
|
(b) Reserves and Surplus |
1608.532 |
|
|
LOAN FUNDS |
878.174 |
|
|
Deferred Tax Liabilities |
85.921 |
|
|
|
2692.279 |
|
|
|
|
|
|
FIXED ASSETS |
1554.323 |
|
|
INVESTMENTS |
0.121 |
|
|
intangible Assets |
2.846 |
|
|
CURRENTASSETS,LOANSANDADVANCES |
|
|
|
Inventories |
757.459 |
|
|
Sundry Debtors |
645.845 |
|
|
Cash & Bank Balances |
28.343 |
|
|
Other Current Assets |
3.772 |
|
|
Loans & Advances |
127.256 |
|
|
|
1562.675 |
|
|
Less Current Liabilities and Provisions |
|
|
|
(a) Liabilities |
395.403 |
|
|
(b) Provisions |
32.283 |
|
|
|
1134.989 |
|
|
MISCELLANEOUS EXPENDITURE (NOT WRITTEN OFF OR ADJUSTED) |
-- |
|
|
PROFIT AND LOSS ACCOUNT |
-- |
|
|
|
2692.279 |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED REPORTING FOR THE QUARTER AND HALF YEAR
ENDED 30.09.2010
Rs. In Millions
|
|
Particulars |
For the Quarter Ended |
For the Half Year Ended |
|
1 |
Segment Revenue |
|
|
|
|
A. Fund
Aluminium Oxide Grains including calcined products |
269.420 |
618.475 |
|
|
B. Refractories
and monolithics |
622.637 |
1237.007 |
|
|
C. Power
Division |
76.174 |
187.116 |
|
|
Total |
968.231 |
2042.598 |
|
|
Add: Unallocated
corporate income |
0.046 |
0.095 |
|
|
Less: inter
segment revenue |
139.939 |
350.817 |
|
|
Net sales / income from operations |
828.338 |
1691.876 |
|
2. |
Segment results (Profit before interest and tax) |
|
|
|
|
A. Fund Aluminium
Oxide Grains including calcined products |
35.307 |
114.057 |
|
|
B. Refractories
and monolithics |
126.806 |
230.132 |
|
|
C. Power
Division |
(7.363) |
14.866 |
|
|
Total |
154.760 |
359.055 |
|
|
Add: Interest |
18.095 |
30.126 |
|
|
Less: Unallocated
expenditure net off unallocable income |
11.711 |
26.171 |
|
|
Profit before tax |
124.954 |
302.758 |
|
3. |
Capital employed |
|
|
|
|
A. Fund
Aluminium Oxide Grains including calcined products |
769.446 |
769.446 |
|
|
B. Refractories and
monolithics |
874.115 |
874.115 |
|
|
C. Power
Division |
975.854 |
975.854 |
|
|
D. Others |
(891.231) |
(891.231) |
|
|
Total |
1728.184 |
1728.184 |
TRADE TERMS
v Bajaj Chemicals Limited
v Dr. Khan Industrial Consultants Private Limited
v Forace Polymers Private Limited
v Perfect Pac Limited
v S. K. Fabricators Private Limited
v Neuman Auto Industries
v Ashoka Gears
v Glasstex
v Industrial Products
v Ardeek Engineering (Sau) Private Limited
v Ashok Kantilal Mistri
v Harji Kara Hansora and Sons
v Matangi Plastic Industries
v Perfect Gear Industries
v PLT Industries Private Limited
v Shree Chemical and Minerals
v Silverline Plastpacks Private Limited
v Vijay Industries
v Associated Engineers
v Chandra Prabhu Industries
v Patel Industries
v Shree Parvati Metals
v Techno Thermal Treators Private Limited
v Unison Engineers
v Vishwakarma Saw Mill and Gen. Industries
v Benson Engineers
v Dharamveer and Company
v Diamet Enterprises
FIXED ASSETS
v Land (Leasehold, Freehold and Improvement)
v Building
v Plant and Machinery
v Electric Installation and Fittings,
v Furniture, Fixture
v Office Equipments
v Vehicles
WEBSITE DETAILS:
PROFILE:
Subject was set up in 1974, in technical collaboration with Karborundum,
The Company offers a wide range of Refractory and Monolithic products for the
iron and steel industry and enjoy large domestic and international clientele.
An in-house R and D facility supports the division’s product development
initiatives. This makes Subject the preferred choice for quality products.
Headquartered in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.20 |
|
|
1 |
Rs.72.25 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
no |
|
--LITIGATION |
YES/NO |
no |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
no |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
no |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
no |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
TOTAL |
|
49 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.