MIRA
INFORM REPORT
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Report Date : |
23.02.2011 |
IDENTIFICATION DETAILS
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Name : |
SUKASO CERACOLORS PRIVATE LIMITED |
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Registered
Office : |
Plot No. 1275/1, Road No: 63/A, Behind Petrol Pump, Jubilee Hills, Hyderabad-500034,
Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
17.07.1990 |
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Com. Reg. No.: |
01-011490 |
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CIN No.: [Company Identification
No.] |
U26914AP1990PTC011490 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDS07834B |
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PAN No.: [Permanent Account No.] |
AAECS1736N |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer of ceramic colours. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (49) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 690000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered for normal 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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Mahesh Rayudu |
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Designation : |
Export Executive |
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Contact No.: |
91-9848389308 |
|
Date : |
22.02.2011 |
LOCATIONS
|
Registered Office/ Factory : |
Plot No. 1275/1, Road No: 63/A, Behind Petrol Pump, Jubilee Hills,
Hyderabad-500034, Andhra Pradesh |
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Tel. No.: |
91-40-23548514/23547869/23607891 |
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Mobile No.: |
91-9848389308 (Mr. Mahesh Rayudu) |
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Fax No.: |
91-40-23547859 |
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E-Mail : |
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Website : |
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Area : |
3500 sq. ft. (Owned) |
DIRECTORS
As on 25.09.2010
|
Name : |
Mr. Jayant Kumar |
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Designation : |
Director |
|
Address : |
Plot No. 150, Road # 71, Phase III, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
30.07.1945 |
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Date of Appointment : |
17.07.1990 |
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Name : |
Mrs. Suman Kumar |
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Designation : |
Director |
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Address : |
Plot No. 150, Road # 71, Phase III, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
28.07.1945 |
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Date of Appointment : |
16.07.1992 |
KEY EXECUTIVES
|
Name : |
Mr. Mahesh Rayudu |
|
Designation : |
Export Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 25.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Jayant Kumar |
|
129582 |
|
Somya Kumar |
|
1928 |
|
Kapil Kumar |
|
48490 |
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|
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Total |
|
180000 |
As on 25.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
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Directors
or relatives of directors |
|
100.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of ceramic colours. |
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Exports : |
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Products : |
Ceramic Colours |
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Countries : |
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Terms : |
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Selling : |
L/C / Cash / Credit (30 days / 60 days / 90 days) |
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Purchasing : |
Cash / Credit (30 days / 60 days / 90 days) |
GENERAL INFORMATION
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Customers : |
End Users and OEM’s |
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No. of Employees : |
70 (Approximately) |
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Bankers : |
Kotak Mahindra Bank Limited, 36-38 A, Nariman Point Bhavan, 227 D,
Nariman Point, Mumbai-400021, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Shriram Narayan Associates Chartered Accountant |
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Address : |
3-4-520/2, Barkatpura, Hyderabad-500027, |
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Tel. No.: |
91-40-27550251/27550252 |
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E-Mail : |
CAPITAL STRUCTURE
As on 25.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
180000 |
Equity Shares |
Rs.100/- each |
Rs.18.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
180000 |
Equity Shares |
Rs.100/- each |
Rs.18.000 Millions |
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 |
18.000 |
10.674 |
10.674 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
155.328 |
128.530 |
103.992 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
173.328 |
139.204 |
114.666 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
191.739 |
103.666 |
27.472 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
191.739 |
103.666 |
27.472 |
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|
DEFERRED TAX LIABILITIES |
6.319 |
7.019 |
5.639 |
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TOTAL |
371.386 |
249.889 |
147.778 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
109.900 |
69.325 |
36.720 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
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INVESTMENT |
32.294 |
12.816 |
11.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
112.238
|
143.087 |
93.309 |
|
|
Sundry Debtors |
107.925
|
85.372 |
29.680 |
|
|
Cash & Bank Balances |
8.616
|
9.391 |
12.973 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
63.558
|
34.640 |
35.113 |
|
Total
Current Assets |
292.337
|
272.490 |
171.075 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
45.583
|
73.291 |
42.402 |
|
|
Other Current Liabilities |
3.567
|
13.469 |
10.466 |
|
|
Provisions |
13.995
|
17.982 |
18.550 |
|
Total
Current Liabilities |
63.145
|
104.742 |
71.418 |
|
|
Net Current Assets |
229.192
|
167.748 |
99.657 |
|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
371.386 |
249.889 |
147.777 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
623.269 |
503.038 |
271.476 |
|
|
|
Other Income |
NA |
19.101 |
10.511 |
|
|
|
TOTAL (A) |
NA |
522.139 |
281.987 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
|
393.394 |
170.987 |
|
|
|
Manufacturing expenses |
|
26.305 |
22.770 |
|
|
|
Administrative expenses |
NA |
37.042 |
39.615 |
|
|
|
Selling expense |
|
8.971 |
9.567 |
|
|
|
Increase / decrease in stocks |
|
(5.385) |
(21.679) |
|
|
|
TOTAL (B) |
NA |
460.327 |
221.260 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
65.780 |
61.812 |
60.727 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
21.538 |
15.391 |
4.758 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
44.242 |
46.421 |
55.969 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4.290 |
2.522 |
2.027 |
|
|
|
|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
39.952 |
43.899 |
53.942 |
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|
|
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Less |
TAX (H) |
NA |
16.700 |
16.196 |
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|
|
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|
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|
PROFIT AFTER TAX
(G-H) (I) |
NA |
27.199 |
37.746 |
|
|
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|
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
84.635 |
55.050 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
4.400 |
5.500 |
|
|
|
Provision for Dividend Tax |
NA |
2.274 |
2.274 |
|
|
|
Provision for Dividend |
NA |
0.386 |
0.387 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
104.774 |
84.635 |
|
|
|
|
|
|
|
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|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
229.147 |
276.043 |
NA |
|
|
|
|
|
|
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|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
264.995 |
166.753 |
170.666 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
NA |
NA |
NA |
|
Expected Sales (2010-2011) : Rs.750.000 Millions
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
NA
|
5.21 |
13.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.41
|
8.73 |
19.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.93
|
12.84 |
25.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.32 |
0.47 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.47
|
1.50 |
0.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.63
|
2.60 |
2.40 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
45.583
|
73.291 |
42.402 |
Financial Results:
The year was a very difficult year for the
economy in general and the infrastructure sector in particular civil construction,
housing, real estate etc., experienced a significant slowdown of activity. This
in turn affected the ceramic (Tile and Sanitary ware) Industry. The products of
the company are predominantly purchased by the ceramic industry and therefore
the company was affected adversely.
In addition the pressures from increased
competition particularly From China and Liberalization of duty free imports
continued this year, too. The Company continued its concentration on export
market. The world wide recession has forced all international players to drop
process by shrinking their margins. The company registered an increase in
exports over last year by a whopping 49.29% but reduced margins. Resultantly,
the year witnessed an increase of Sales Turnover by 19.39% over that of last
year by diversifying into Zircon Opacifier Business. The Company concentrated
to reduce the expenses wherever possible. The Profit from its main line oF
activity this year is 616% of the turnover as against 8.73% last year. This is
to be viewed in light of fact that material consumed this year constitutes
78.21% of the pales vis-ŕ-vis 72.86% last year.
Sales:
The Company has registered sales of Rs.608.838
millions in the financial year 2009-10 as against Rs. 503.038 millions in the
previous year. The Domestic Turnover this year has been 373.663 millions as
against 193.530 millions last year due to addition of new products
unfortunately, the increase is very meager due to financial crisis in real
estate market. Since this was anticipated, the company had already shifted its
focus on the new products and international market. It is evident from this
years export turnover figures that the shifting of emphasis has been prudent.
The exports (including merchant exports of Rs.58.023 millions) registered a
turnover of 235.210 millions as against 309.508 millions last years. This year
they hope to overcome the recession and competition and continue to add new
products.
Bankers Charges
Report as per Registry
|
This form is for |
Modification of charge
|
|
Charge
identification number of the modified |
10134932 |
|
Corporate
identity number of the company |
U26914AP1990PTC011490 |
|
Name of the
company |
SUKASO CERACOLORS
PRIVATELIMITED |
|
Address of the registered
office or of the principal place of
business in |
Plot No. 1275/1, Road No: 63/A, Behind Petrol Pump, Jubilee Hills,
Hyderabad-500034, Andhra Pradesh |
|
Type of charge |
Book Debts Movable Property
(not being pledge) Others Immovable
Property |
|
Particular of
charge holder |
Kotak Mahindra Bank Limited, 36-38 A, Nariman Point Bhavan, 227 D,
Nariman Point, Mumbai-400021, |
|
Email |
|
|
Nature of
description of the instrument creating or modifying the charge |
1. Supplementary
deed of hypothecation 2. Memorandum of
entry for mortgage by constructive delivery of title deeds |
|
Date of
instrument Creating the charge |
19.05.2009 |
|
Amount secured by
the charge |
Rs.194.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest WCDL - As deemed
fit by the bank at the time of disbursement. Terms of Repayment
WCDL - On demand
as per terms and conditions as deemed fit by the bank. Margin WCDL - On such
terms and conditions as deemed fit by the bank. Extent and
Operation of the charge 1. First and exclusive charge by way of Hypothecation
over the whole of the Borrower's present and
future current and movable
fixed assets in favour of KMBL to secure the facilities granted by the Bank
to the Borrower. 2. First and exclusive charge by way of mortgage of
immovable properties of the company in favour of Kotak Mahindra Bank; to
secure the repayment of facilities granted by the Bank to the Sukaso
Ceracolors Private Limited and S. J.
Marketing. |
|
Short particulars
of the property charged |
1. Current and
moveable fixed assets of company, as stated in Schedule to the Supplemental
deed of hypothecation. 2) All that piece
and parcel of the land admes 2.82 cents or 13,4688Sq. yards or 114421 sq.
mtrs and 1.00 cents or 4840 sq.yards
in P. No. 74 A,74/E situated in Sy No. 84/81 ANRICH Industrial Estate,
Bollaram, Bollaram Grampanchayat, Jinnaram Mandal, Medak, Andhra Pradesh. |
|
Particulars of
the present modification |
The Bank had
granted facilities of Rs.191.500 millions to the Borrower which was secured
by Hypothecation and mortgage of
current, moveable assets and immovable
property of the company on 26/12/2008. The Bank has now granted an additional
facility of Rs.2.500 millions and the
said charge is modified and extended
to the revised facility of Rs.194.000 millions. |
Fixed Assets:
- Plant and Machinery
- Vehicle
- Furniture and Fixtures
- Office Equipments
- Computes
AS PER WEBSITE DETAILS:
Profile:
Subject was founded with British Collaboration in the year 1993
with the aim of manufacturing ceramic colors. In 2007, Subject also started
manufacturing Zirconium Silicate Opacifier and Zircon Flours, using the dry
process method, thereby becoming the first Asian Company outside
Since its inception, Subject has been making every effort to offer world-class
raw materials for all kinds of ceramic products, be it sanitary wares, tiles,
tableware or decorative products.
With the introduction of new product lines and complementary solutions, Subject market capitalization has increased significantly, even in times of global economic turmoil, which illustrates the tremendous acceptance of its products in the market.
Milestone:
1991:
- Technical
Collaboration signed with a leading European pigment manufacturer
1995:
- First pilot
export order signed
- Electrically
fired kilns replaced with LPG fired kilns
1999:
- Export
revenues crossed 4% of total revenues
- Product range
extended
- Presence
extended to 5 countries in 2 continents
2003:
- Export
revenues crossed 11% of total revenues
- Massive
facility expansion undertaken
- Evolved
as the largest producer of Ceramic pigments in
2009:
- Export
revenues crossed 66% of total revenues
- Commenced
manufacturing of Zirconium Silicate and Zirconium Flour
- Partnerships
with several leading manufacturing houses established
- 2nd phase of
capacity expansion of Zirconium Silicate plant initiated
- 2 new offices
/ representatives established in 2 continents
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.45.20 |
|
|
1 |
Rs.73.07 |
|
Euro |
1 |
Rs.61.41 |
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 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--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.