BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
SURYA ROSHNI LIMITED |
Principal Name 1 |
MR. J. P. AGARWAL |
|
Status |
SATISFACTORY |
Principal Name 2 |
MR. RAVINDER KUMAR NARANG |
|
|
|
Registration # |
05-7543 |
|
Street Address |
PRAKASH NAGAR, SANKHOL, BAHADURGARH – 124 507, HARYANA |
||
|
Established Date |
17.10.1973 |
SIC Code |
-- |
|
Telephone# |
-- |
Business Style 1 |
MANUFACTURER |
|
Fax # |
-- |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
STEEL TUBES |
|
|
# of employees |
3954 |
Product Name 2 |
PIPES |
|
Paid up capital |
Rs. 370,040,000 |
Product Name 3 |
LAMPS |
|
Shareholders |
PROMOTER AND
PROMOTER GROUP-29.13% PUBLIC
SHAREHOLDING-70.87% |
Banking |
STATE BANK OF |
|
Public Limited Corp. |
YES |
Business Period |
38 YEARS |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Ba (50) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
-- |
|
SUBSIDIARY
|
-- |
SURYA GLOBAL STEEL TUBES LIMITED |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,170,110,000
|
Current Liabilities |
804,747,000
|
|
Inventories |
2,813,771,000
|
Long-term Liabilities |
6,635,939,000 |
|
Fixed Assets |
4,600,879,000 |
Other Liabilities |
558,116,000
|
|
Deferred Assets |
-- |
Total Liabilities |
7,998,802,000 |
|
Invest& other Assets |
984,513,000 |
Retained Earnings |
2,200,431,000 |
|
|
|
Net Worth |
2,570,471,000 |
|
Total Assets |
10,569,273,000 |
Total Liab. & Equity |
10,569,273,000 |
|
Total Assets (Previous Year) |
7,421,072,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
17,953,094,000 |
Net Profit |
451,729,000 |
|
Sales(Previous yr) |
14,890,798,000 |
Net Profit(Prev.yr) |
215,398,000 |
MIRA
INFORM REPORT
|
Report Date : |
25.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
SURYA ROSHNI LIMITED |
|
|
|
|
Registered Office
: |
Prakash Nagar, Sankhol, Bahadurgarh – 124 507, Haryana |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
17.10.1973 |
|
|
|
|
Com. Reg. No.: |
05-7543 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31501HR1973PLC007543 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MRTS01773C/DELS06442C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS3558C |
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|
|
|
Legal Form : |
A public limited liability company.
The company's shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Steel Tubes and Pipes, Lamps, Cold Rolled Strips/
Sheets, etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10281884 |
|
|
|
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. 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 |
LOCATIONS
|
Registered Office/ Works-Steel Division : |
Prakash Nagar, Sankhol, Bahadurgarh – 124 507, |
|
E-Mail : |
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|
Website : |
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Head Office : |
2nd Floor, |
|
Tel. No.: |
91-11-25810093/ 94/ 95/ 96 |
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Fax No.: |
91-11-25789560/ 41539762 |
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E-Mail : |
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Factory : |
Works lighting
division 7 K. M. Stone, Kashipur - Tel. No. 91-5947-75117 / 195 / 124 / 110 Fax No. 91-5947-75185 J-7, 8 and 9, Malanpur Industrial Area, Malanpur, District Bhind,
Madhya Pradesh Tel. No. 91-7539-83554 / 82347 / 83348 Fax No. 91-7539-83483 E Mail : srlmlpr@gwr1.dot.net.in Works steel
division Prakash Nagar, Sankhol, Bahadurgarh - 124 507, E Mail : srlakash@ndf.venl.net.in |
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|
|
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Branch Office: |
Located at: Ahmedabad, Bangalore, Mumbai, Bhubaneshwar, Kolkata, Chandigarh,
Delhi, Ghaziabad (Branch and Centralised Godown), Goa, Gwalior, Guwahati,
Hyderabad, Himachal Pradesh, Indore, Jabalpur, Jaipur, Jammu, Kanpur, Cochin,
Chennai, Madurai, Nagpur, Patna, Pune, Parwanoo, Raipur, Rohtak, Siliguri,
Varanasi, Vijaywada and Zirakpur |
DIRECTORS
As on 31.03.2009
|
Name : |
Mr. J. P. Agarwal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Ravinder Kumar Narang |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Urmil Agarwal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K. K. Narula |
|
Designation : |
Director |
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|
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|
Name : |
Mr. B. B. Chadha |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. M. G. Bakre |
|
Designation : |
IDBI Nominee |
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|
|
|
Name : |
Mr. Mukesh Tripathi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. N. Bansal |
|
Designation : |
Deputy Managing Director (Finance and Corporate Management) |
|
|
|
|
Name : |
Mr. Vineet Garg |
|
Designation : |
Deputy Managing Director (Projects and Corporate Management) |
|
|
|
|
Name : |
Mr. Arvind Bansal |
|
Designation : |
Deputy Managing Director (Operations and Corporate Management) |
|
|
|
|
Name : |
Mr. Raju Bista |
|
Designation : |
Director (Corporate) |
KEY EXECUTIVES
|
Name : |
Mr. B. B. Singal |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. V. R. Majumdar |
|
Designation : |
Chief Advisor (LBG) |
|
|
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|
Name : |
Mr. N. K. Mayson |
|
Designation : |
Executive Director (Steel Division) |
|
|
|
|
Name : |
Mr. P. K. Pandey |
|
Designation : |
Chief General Manager (Kashipur) |
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|
Name : |
Mr. R. K. Jaggi |
|
Designation : |
Chief General Manager (Malanpur) |
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|
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|
Name : |
Mr. |
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Designation : |
Senior Vice-President (Sales and Marketing) - LBG |
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Name : |
Mr. S. K. Bhasin |
|
Designation : |
Vice-President - Pipe Division |
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Name : |
Mr. A. N. Banerjee |
|
Designation : |
Vice-President - CR Division |
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|
|
Name : |
Mr. Sanjay Goel |
|
Designation : |
Senior Vice-President (Corporate) |
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|
|
|
Name : |
Mr. Anil Bansal |
|
Designation : |
Vice-President (Commercial) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2217839 |
5.06 |
|
|
21882704 |
49.92 |
|
|
24100543 |
54.98 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
24100543 |
54.98 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1381 |
- |
|
|
1,528 |
-- |
|
|
1043906 |
2.38 |
|
|
250 |
- |
|
|
1047065 |
2.39 |
|
|
|
|
|
|
11681154 |
26.65 |
|
|
|
|
|
|
5598670 |
12.77 |
|
|
967276 |
2.21 |
|
|
436542 |
1.00 |
|
|
201227 |
0.46 |
|
|
233315 |
0.53 |
|
Trusts |
2000 |
-- |
|
|
18683642 |
42.63 |
|
Total Public
shareholding (B) |
19730707 |
45.02 |
|
Total (A)+(B) |
43831250 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
Total
(A)+(B)+(C) |
43831250 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Steel Tubes and Pipes, Lamps, Cold Rolled Strips/
Sheets, etc. |
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Products : |
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Exports : |
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Countries : |
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PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Steel division |
|
|
|
|
Pipes / Tubes |
MT |
Not yet assessed |
224311 |
|
Cold Rolled Strips / Sheets |
MT |
Not yet assessed |
62579 |
|
Cold Rolled Formed Sections |
MT |
Not yet assessed |
-- |
|
Lighting division |
|
|
|
|
GLS Lamps |
Million Nos. |
187.000 |
176.320 |
|
Fluorescent Tube Lamps |
Million Nos. |
62.800 |
44.197 |
|
Tubular Glass Shells |
Million Nos. |
73.000 |
72.502 |
|
Glass Shells for GLS Lamps |
Million Nos. |
576.900 |
459.437 |
|
Filament |
Million Nos. |
303.000 |
275.713 |
|
Cap-GLS Lamps |
Million Nos. |
325.000 |
223.761 |
|
Fluorescent Powder |
MT |
-- |
-- |
|
Lead Glass Tubings |
MT |
3400.000 |
3137.675 |
|
HPSV / HPMV
Lamps |
Nos. |
1800000 |
492676 |
|
CFL |
Million Nos. |
66.000 |
27.621 |
|
Tuber |
Million Nos. |
66.000 |
30.218 |
|
PCB |
Million Nos. |
51.600 |
13.421 |
|
CFL Shell |
M.T. |
1000.000 |
606.260 |
|
Caping Cement |
M.T. |
300.000 |
404.750 |
|
PVC Pipe |
M.T. |
17500.000 |
5.482 |
GENERAL INFORMATION
|
No. of Employees : |
3954 |
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Bankers : |
v State Bank of v Punjab National
Bank v IDBI Bank
Limited v
State Bank of |
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Facilities : |
Notes: 1) Term Loans
from Banks and financial Institutions secured by deposit of title deeds relating
to immovable assets of the company and further secured by hypothecation of
all company's movable assets. 2) Working
Capital Loans from Banks are secured against hypothecation of present and
future stock of raw material, stock in process, finished goods, spare and
stores, book debts etc., guaranteed by Managing Director of the company and
further secured by way of second charge on the company's Fixed Assets.
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|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
Statutory
Auditors Sastry K. Anandam and Company Chartered Accountants Cost Auditors R. J. Goel and Company (Lighting Division) H. R. Singal (Steel Division) |
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Subsidiaries : |
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Associates : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,98,00,000 |
Equity shares |
Rs.10/- each |
Rs.498.000 millions |
|
6,20,000 |
Preference shares |
Rs.100/- each |
Rs.62.000 millions |
|
|
Total |
|
Rs.560.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,78,31,250 |
Equity shares |
Rs.10/- each |
Rs.278.312 millions |
|
|
|
|
|
|
|
Forfeiture Reserve |
|
|
|
38,00,000 |
Forfeiture of Optionally Convertible Equity Warrants |
Rs. 64/- each |
Rs. 24.320 Millions |
|
|
|
|
|
|
45,70,000 |
Optionally Convertible Equity Warrants |
Rs. 59/- each |
Rs. 67.408 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 370.040
Millions |
Note - (Of the above shares 3,00,000 Equity shares of Rs.10/- each allotted as fully paid up Bonus shares by capitalisation of General Reserve during 1980-81, 86,47,500 Equity shares of Rs.10/- each during 1994-95 and 22,38,750 Equity shares of Rs. 10/- each during 1995-96 by capitalisation of securities premium account.)
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 |
370.400 |
260.013 |
260.013 |
|
|
2] Equity Warrants |
0.000 |
24.320 |
24.320 |
|
|
3] Reserves & Surplus |
2200.431 |
1724.446 |
1546.054 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2570.471 |
2008.779 |
1830.387 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5739.663 |
3830.529 |
3539.330 |
|
|
2] Unsecured Loans |
896.276 |
573.393 |
488.122 |
|
|
TOTAL BORROWING |
6635.939 |
4403.922 |
4027.452 |
|
|
DEFERRED TAX LIABILITIES |
558.116 |
506.466 |
476.534 |
|
|
|
|
|
|
|
|
TOTAL |
9764.526 |
6919.167 |
6334.373 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4600.879 |
3386.711 |
2846.473 |
|
|
Capital work-in-progress |
482.813 |
104.042 |
306.186 |
|
|
|
|
|
|
|
|
INVESTMENT |
501.700 |
160.750 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2813.771
|
1966.753 |
1905.825 |
|
|
Sundry Debtors |
1790.680
|
1447.620 |
1338.203 |
|
|
Cash & Bank Balances |
100.300
|
94.629 |
49.212 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
279.130
|
260.567 |
283.630 |
|
Total
Current Assets |
4983.881
|
3769.569 |
3576.870 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
370.474
|
165.180 |
144.873 |
|
|
Other Current Liabilities |
261.004
|
215.641 |
131.154 |
|
|
Provisions |
173.269
|
121.084 |
119.129 |
|
Total
Current Liabilities |
804.747
|
501.905 |
395.156 |
|
|
Net Current Assets |
4179.134
|
3267.664 |
3181.714 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9764.526 |
6919.167 |
6334.373 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
17953.094 |
14890.798 |
12723.745 |
|
|
|
Other Income |
8.649 |
5.808 |
99.463 |
|
|
|
TOTAL (A) |
17961.743 |
14896.606 |
12823.208 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
13061.099 |
11292.676 |
9519.018 |
|
|
|
Purchase for Resale |
677.810 |
304.843 |
228.120 |
|
|
|
Packing Material Consumed |
272.783 |
222.098 |
184.310 |
|
|
|
Land Purchase for Real Estate Division |
0.000 |
0.000 |
64.497 |
|
|
|
Manufacturing Expenses |
813.340 |
607.563 |
574.756 |
|
|
|
Employees Remuneration & Benefits |
890.883 |
651.671 |
569.014 |
|
|
|
Selling Expenses |
1181.112 |
746.624 |
828.714 |
|
|
|
Other Expenses |
263.983 |
213.935 |
158.899 |
|
|
|
Accretion/ (Decretion) to Stock |
(494.915) |
(123.064) |
(215.614) |
|
|
|
TOTAL (B) |
16666.095 |
13916.346 |
11911.714 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1295.648 |
980.260 |
911.494 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
487.143 |
464.415 |
380.692 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
808.505 |
515.845 |
530.802 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
270.928 |
236.667 |
255.933 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
537.577 |
279.178 |
274.869 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
85.848 |
63.780 |
70.786 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
451.729 |
215.398 |
204.083 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1217.600 |
1053.707 |
901.621 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Equity Dividend |
55.662 |
31.202 |
39.002 |
|
|
|
Tax on Dividend |
9.244 |
5.303 |
6.628 |
|
|
|
Deferred tax Revision |
0.000 |
-- |
(8.633) |
|
|
|
Transfer to General Reserve |
60.000 |
15.000 |
15.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1544.423 |
1217.600 |
1053.707 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2193.137 |
3406.975 |
1966.541 |
|
|
TOTAL EARNINGS |
2193.137 |
3406.975 |
1966.541 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and purchases for trading |
496.692 |
207.398 |
358.085 |
|
|
|
Stores & Spares |
17.695 |
31.237 |
21.144 |
|
|
|
Capital Goods |
449.402 |
64.389 |
106.470 |
|
|
TOTAL IMPORTS |
963.789 |
303.024 |
485.699 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.23 |
8.28 |
7.85 |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2010 (Rs. In
Millions) |
30.09.2010 (Rs. In
Millions) |
31.12.2010 (Rs. In
Millions) |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
5081.900 |
5972.400 |
5974.000 |
|
Total Expenditure |
4760.800 |
5645.700 |
5618.100 |
|
PBIDT (Excl OI) |
321.100 |
326.700 |
355.900 |
|
Other Income |
1.600 |
1.800 |
3.000 |
|
Operating Profit |
322.700 |
328.500 |
358.900 |
|
Interest |
137.300 |
150.000 |
150.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
185.400 |
178.500 |
208.400 |
|
Depreciation |
87.200 |
82.100 |
77.000 |
|
Profit Before Tax |
98.200 |
96.400 |
131.400 |
|
Tax |
14.600 |
26.200 |
19.100 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
83.600 |
70.200 |
112.300 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
83.600 |
70.200 |
112.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.51
|
1.45 |
1.59 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.99
|
1.87 |
2.16 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.60
|
3.90 |
4.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.14 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.89
|
2.44 |
2.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.19
|
7.51 |
9.05 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Formerly known as Prakash Tubes, Surya Roshni has two
divisions -- the steel division and the lighting division. The steel division,
which commenced operations in 1974, manufactures electrical resistance welded
(ERW) steel pipes and tubes, and cold-rolled formed sections and profiles, and
cold-rolled (CR) strips. The lighting division, operating since 1983,
manufactures flourescent tube lamps (FTL), general lighting systems (GLS),
glass shells for GLS lamps, tubular glass shells, FTL filaments, GLS filaments,
and sodium and mercury vapour lamps. The lamps are sold under the Surya brand.
A backward intergration to manufacture lead glass tubings and an expansion of
capacities of the lighting division were undertaken in 1993. The company
recently completed a project to manufacture halogen lamps and decorative lamps.
Its backward integration project to manufacture ribbon glass shells, FTL tube
drawing lines, GLS filaments, FTL filaments, GLS caps and GLS chains, is under
implementation, out of which two GLS lamp groups, GLS lamp filament and
automatic FTL packing machine were completed in 1995-96. The technologies for
the above projects are from GB Glass,
MANAGEMENT
DISCUSSION AND ANALYSIS
PROFILE
A journey whose path has been set in the year 1973 from a small
tube making unit is recognized today by a name SURYA ROSHNI LIMITED both
domestically and globally. It took 37 years of utmost dedication, commitment
and deep faith that Surya emerged as a vast conglomerate in lighting and Steel
Tube Division . Indeed it is a glorious achievement that today we have the
largest ERP pipe manufacturing plant in India, a large cold rolling strip mill
at Bahadurgarh (Haryana) and two lighting units one each at Kashipur
(Uttarakhand) and Malanpur (MP) producing
fluorescent tube lights, GLS Lamps, CFL Lamps, HPSV Lamps ,
HPMV Lamps and metal Halide lamps. It is the only Lighting Company of India
with 100% backward integration.
In today's global economy quality indicates the parameter of
company's success. The company's success both domestic and globally is due to
adoption of higher level of quality controls and management which now becomes
the driving force of their success. Their Lighting sector is dedicated in
introducing innovative end-user-driven and energy-efficient solutions and
applications for lighting, based on a thorough understanding of the customer
needs. The company succeeded in bench-marking quality and innovation standards
by achieving the ISO 9002 in the year 1999. The company was awarded ISO-14001
and OHSAS-18001 certifications related to environment and safety respectively.
Company, has also obtained FIVE STAR Rating for Fluorescent Tube Lamps from
Bureau of
Energy Efficiency, India.
The company continues to be committed towards making best of
quality products at the affordable price through technology upgradation, value
proposition, deep concern for customer satisfaction and at the same time
ensuring human as well as environment safety and thus enhance value addition to
the investors and to the society as a whole. No doubt, they will generate value
for their capabilities beyond Indian borders and enable millions of India's
knowledge workers to deliver their services, for making Surya one of the
leading brand globally.
OUTLOOK
The Government is giving continuous thrust on housing and infrastructure
sector where Steel Tubes and Pipes are used. The existing refineries are
expanding their capacities and new refineries are coming into the scene. In
future also there seems to be a tremendous scope for export in ERW Pipes as
well as Cold Rolling particularly to Canada, USA and other European Countries.
In cold Rolling Mill Company, have plans to modernize skin pass mill no.3 to
double the output and to take care of the inventory in process. Company is
planning to install a high capacity slitter to take care of market needs. The
government spending on infrastructure development is also expected to increase
the demand of pipes every year. With the easy availability of finance and tax
incentives, it is
expected that housing sector will get a major boost. In view of the
same, the long term outlook of the Company remains positive. All these measures
will help in increasing the sale & profitability in the current financial
year.
With a general improvement in the power condition in urban as well as
rural sectors and increase in spending on infrastructure development in the
coming years, there is always an increase in demand of regular lighting
products Keeping in view the company undertakes substantial expansion of its
Kashipur Unit by setting up FTL , CFL , PCB, HID and PVC plants Apart from
saving operating and administrative cost , the new products will also be exempt
from the whole duty of excise or additional duty of excise for a period of 10
years from the date of eligibility of excise exemption of the same. The whole
Kashipur unit will also be eligible to get tax exemption benefits in accordance
with the provisions of Section 80-IC of the Income Tax Act, 1961. Full year
benefit will be reflected during the current year in terms of profitability and
growth.
Apart from this Union Government's Eleventh Plan power generation target
will also give boost to the demand of steel poles and towers, for increasing
efficiency in transmission and cutting down on transmission losses. The High
Mast Project of the Company with a planned installed capacity of 75000 MT per
annum ERW pipes and11000 MT per annum High Mast / Poles will be fully
commissioned to its total installed capacity by 15th JULY 2010.
Keeping the growing demands of Energy Saving Lamps and various
Governments drive in this direction, they have already manufacturing total
range of Energy Saving Lamps(CFL) and the Luminaire Business Group (LBG) of the
company is moving beyond just "Me - too" towards an exclusive range
of products :
• LED - Down Lighters / Street Lights
• Induction - Commercial / Industrial Luminaries Lamps
• Solar Street Lights
• Outdoor Designer Range - High end Street / Flood Lights
Further, company is in the process of setting - up a modern, world class,
in house Research & Development Centre in Noida for carrying out research
and development in the field of energy efficient Ligh Sources and Luminaires
and its applications including LED Lighting System.
Through the well focused vision of the management, company will able to
produce land mark results.
PERFORMANCE DURING
THE YEAR
During the year, the turnover of the Company increased to Rs.19389.300
millions
from Rs.16905.900 millions last year,
registering an increase of 14.69 %. The Profit After Tax is increased to Rs. 451.700
millions as
compared to Rs. 215.400 millions last year registering a growth of 109.70%
during this
period. The export turnover during the year under review is Rs.2454.500
millions as
compared to Rs. 3626.600 millions in previous year. The performance of various
divisions of the Company is given below:
STEEL DIVISION
During the year, the division has achieved a 23.42% remarkable growth in volume terms despite the low average raw material prices in comparison to last year. The turnover of the division is Rs. 13374.400 millions as compared to Rs 12267.400 millions in the last financial year, registering an increase of 9.02%. The export turnover of the division is Rs.2177.200 millions in comparison to Rs.3352.100 millions in the last financial year. During the last financial year, the company has started a series of Dealer, Retailer, Plumber & Architect / Builder / Consultants Conferences along with Press conferences & Brand awareness campaigns which has increased the demand potential substantially.
During the year the company has commissioned one hydrogen
annealing plant which has improved the quality of cold rolled
product. The Company have also commissioned sixth galvanizing plant
which has increased the capacity by 40000 MT per year. Solid State Welder and
Hydro testing Machine have been installed in Pipe Mill. To cater the power need
of the plant, company has ordered two 1.75 MW Gas Gen Set and out of which one
Gas Gen Set of 1.75MW has been installed during the year which has improved In- house
generation of power. The Gas Gen Set will contribute for emission reduction and the emission reduction
are used to meet the compliance requirement of the developed countries under
CDM.
LIGHTING DIVISION
Despite tough competition from other established market players and unorganised sectors, the Division has witnessed a remarkable growth in turnover. During the year under review, the turnover of the division increased to Rs.6014.100 millions as compared to Rs.4638.600 millions last year, an increase of 29.65 %. However, the export turnover during the year under review is Rs. 277.300 millions as against Rs.274.600 millions in previous year. Strategies are being continuously developed to give greater thrust to the exports.
During the year, Company has undertaken and completed substantial expansion in its Kashipur unit and the same has been inaugurated by Honorable Chief Minister of Uttarakhand on 25th March, 2010. Unit has set up new production facilities for manufacturing of FTL, CFL, PCB, HID, and PVC products in the said expansion. Apart from saving operating and administrative cost, the new products will also be exempt from the whole duty of excise or additional duty of excise for a period of 10 years from the date of eligibility of excise exemption of the same. The whole Kashipur unit will also be eligible to get tax exemption benefits in accordance with the provisions of section 80-IC of the Income- Tax Act, 1961.
During the year, Malanpur Unit has installed one CFL Line to produce T-3 Type Compact Fluorescent Lamps with capacity of 6 million pieces per annum .Unit added capacity in Cap Plant by installing new Furnace and adding one vitriting and one pinning machine. It also started PCB Production for CFL lamps with SMT/Auto Insertion Technology.
During the year, ERW unit of High Mast Division with a installed capacity of 25000 MT per annum has started commercial production.
SUBSIDIARY
Company has a non-listed Indian Subsidiary Company named as Surya Global Steel Tubes Limited and as on 31st March, 2010, the company had a total investment of Rs. 50,00,00,000 with 53.73%. equity shares in the same.
The Subsidiary Company has started its commercial production of spiral pipe project with capacity of 60000 MT in January, 2010 at Anjar, Bhuj ( State of Gujarat). Subsidiary Company has proposed to set up a new project for production of API grade ERW Pipe at Bhuj.
The Subsidiary has changed its financial year and closed their Accounts on 30th September, 2009.
FIXED
ASSETS:
v Land and Site
Development
v Building
v Plant and
Machinery
v Furniture and
Fixtures
v Vehicles
v Office Equipments
v Air conditioners
and Coolers
v Miscellaneous
Assets
v Temporary
Erections
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.44.30 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.69 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.