MIRA
INFORM REPORT
|
Report Date : |
01.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
ASTRAL
POLY TECHNIK LIMITED (w.e.f. 29.09.2006) |
|
|
|
|
Formerly Known
As : |
ASTRAL POLY TECHNIK PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
901, Parshwa
Towers, Opposite Rajpath Club, Sarkhej - Gandhi Nagar Highway, Ahmedabad –
380 054, Gujarat |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
25.03.1996 |
|
|
|
|
Com. Reg. No.: |
04-029134 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.112.381
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25200GJ1996PLC029134 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMA00853G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA9566C/
AABCA2951N |
|
|
|
|
Legal Form : |
Public limited
liability company. The company's
shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer
of CPVC Plumping Systems. |
|
|
|
|
No. of Employees
: |
300 (Approximately) |
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 4725000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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.
INFORMATION PARTED BY (General Details)
|
Name : |
Mr. Joshi |
|
Designation : |
Accountant |
|
Contact No.: |
91-79-30112100 |
|
Date : |
31.05.2011 |
LOCATIONS
|
Registered/ Corporate Office : |
901, Parshwa Towers,
Opposite Rajpath Club, Sarkhej - Gandhi Nagar Highway, Ahmedabad – 380 054,
Gujarat, India |
|
Tel. No.: |
91-79-26745077 /
30112100 |
|
Mobile No.: |
91-9810518031
(Mr. Rajeev Soman) |
|
Fax No.: |
91-79-26752214 /
26872214 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Plot
No.1253 and 1264, Village: Santej
Taluka, Kalol, Gandhinagar, |
|
Area: |
Owned |
|
|
|
|
Factory 2 : |
Khasra No. # 67-72, Village: Bated, P.O. Barotiwala,
District: Solan, Tehsil: Kasauli, |
|
Area: |
Owned |
|
|
|
|
Branch Office : |
Located at: · Mumbai · · |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. K
R Shenoy |
|
Designation : |
Chairman
(Independent Director) |
|
|
|
|
Name : |
Mr.
Sandeep P. Engineer |
|
Designation : |
Managing Director |
|
Address : |
59, |
|
Date of
Birth/Age : |
11.05.1961 |
|
Date of Appointment
: |
25.03.1996 |
|
|
|
|
Name : |
Mrs.
Jagruti S. Engineer |
|
Designation : |
Executive
Director |
|
Address : |
59, |
|
Date of
Birth/Age : |
15.07.1965 |
|
Date of
Appointment : |
25.03.1996 |
|
|
|
|
Name : |
Mr. Pradip N.
Desai |
|
Designation : |
Independent and
Non-Executive Director |
|
|
|
|
Name : |
Mr.
Nimish G. Dalal |
|
Designation : |
Non –
Executive Director |
|
Address : |
31905,
Standard Cora, |
|
Date of Birth/Age
: |
06.05.1971 |
|
Date of
Appointment : |
15.12.1996 |
|
|
|
|
Name : |
Mr.
Kyle A. Thomson |
|
Designation : |
Non –
Executive Director |
|
Address : |
102, |
|
Date of
Appointment : |
01.12.1997 |
KEY EXECUTIVES
|
Name : |
Mr. Nirav K. Shah |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. M.M. Vakil |
|
Designation : |
President |
|
|
|
|
Name : |
Mr. Hiranand Savlani |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Joshi |
|
Designation : |
Accountant |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5,435,348 |
24.18 |
|
|
3,151,634 |
14.02 |
|
|
8,586,982 |
38.20 |
|
|
|
|
|
|
2,591,768 |
11.53 |
|
|
3,164,482 |
14.08 |
|
|
5,756,250 |
25.61 |
|
Total shareholding of Promoter and Promoter Group (A) |
14,343,232 |
63.82 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
244,974 |
1.09 |
|
|
244,974 |
1.09 |
|
|
|
|
|
|
1,428,397 |
6.36 |
|
|
|
|
|
|
3,438,928 |
15.30 |
|
|
1,663,619 |
7.40 |
|
|
1,356,962 |
6.04 |
|
|
199,688 |
0.89 |
|
|
1,140,289 |
5.07 |
|
|
16,985 |
0.08 |
|
|
7,887,906 |
35.09 |
|
Total Public shareholding (B) |
8,132,880 |
36.18 |
|
Total (A)+(B) |
22,476,112 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
22,476,112 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of CPVC Plumping Systems. |
||||||
|
|
|
||||||
|
Products : |
·
Astral
FlowGuard CPVC o
Fittings
o
Pipes
·
Astral
Corzan o
Fittings
o
Pipes
·
Astral
Aquarius o
Fittings
o Pipes |
||||||
|
|
|
||||||
|
Agencies Held : |
K. B.
Mehta Construction Private Limited |
||||||
|
|
|
||||||
|
Terms : |
|
||||||
|
Selling : |
Cash and Credit ( 30-60-90-120 Days) |
||||||
|
|
|
||||||
|
Purchasing : |
Cash and Credit ( 30-60-90-120 Days) |
PRODUCTION STATUS (As on 31.03.2010)
INSTALLED
CAPACITY: 30867 (In MT)
|
Particulars |
Unit |
Actual
Production |
|
Pipes |
Mtrs. |
35946611 |
|
Fittings |
Pcs. |
76580798 |
|
Others |
Mtrs./ Pcs. |
8267535 |
|
|
|
|
GENERAL INFORMATION
|
Suppliers : |
(As on
31.03.2010) ·
Ferromatik Milacron ·
Vihan Engineering Private
Limited ·
Bhavmark Systems ·
Elgi Equipments Limited
·
Pimco Machines Private
limited ·
Neoplast Engineering Private
Limited ·
Jaiveer ·
Super Nova Engineers Limited
·
Savi Tools ·
Sunshine Weigh Systems
Private Limited ·
Deepak Poly Plast ·
Aqua Treat ·
Mathews International
Corporation [ ·
Vrijsons Engineers ·
Tower Tech Cooling Systems
Private Limited |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Customers : |
Wholesalers (As on
31.03.2010) Hospitals ·
·
·
National Hospital- Calicat ·
Hotels ·
The Oberoi, ·
Imperial- ·
Hotel Claridges, ·
Hotel Arif Castele, Nainital Academics
Institute ·
Indian ·
·
·
Government ·
Canadian Embassy- New ·
Embassy of ·
American Embassy – ·
British Commission, Technology Parks ·
Infocity, Ghandhinagar ·
Silicon Country, Resorts and Club ·
Shanku’s ·
Rajpath Club, Ahemdabad ·
Nanu Resorts, ·
Prakruti Resotrs, Construction
Houses ·
Hiranandani Construction Private Limited, Thane ·
G.L. Raheja Group, Bandra ·
Kukreja Construction Company, Chembur ·
Tata Housing Limited, Thane Industries: ·
Atul Limited, Valsad ·
Balrampur Chini Mills Limited, Uttar Pradesh ·
Cadila Pharmaceuticals Limited, Ahmedabad ·
Essar Steel Limited |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
300 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
v
Tamilnadu Mercantile Co-Operative Bank,
Ahmedabad, v Madhupura Mercantile Co-Operative Bank v
IDBI Bank, Near Lal Bungalow, Ahmedabad, v
Corporation Bank – v Corporation Bank – Mumbai, v
Corporation Bank – v
Corporation Bank – v
Corporation Bank – Rangoli Complex, Ahmedabad
– 390 006, v Corporation Bank – Industrial finance Branch, Rangoli Complex, 1st Floor, Opposite V. S. Hospital, Ellis Bridge, Ashram Road, Ahmedabad – 380 006, Gujarat, India v
Standard Chartered Bank, Abhijeet – II,
Mithakhali |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes:
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte
Haskins and sells Chartered Accountants |
|
Address: |
‘Heritage’, 3rd Floor, Near Gujarat Vidhyapith,
Off |
|
|
|
|
Companies and
firms in which Directors/Directors’ Relatives exercise control / significant
influence : |
·
Kairav Chemicals Limited ·
Astral Biochem Private Limited ·
Astral Technologies Limited ·
Saumya Polymers Private Limited Address: Ahmedabad, Activity: Manufacturer of CPVC Pluming Sytems. |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11238056 |
Equity Shares |
Rs.10/- each |
Rs.112.381
Millions |
|
|
|
|
|
(Of the above 4216354 Equity Shares were
allotted as fully paid-up bonus shares by capitalization of surplus in the
Profit and Loss 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 |
112.381 |
112.381 |
112.381 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1068.992 |
814.965 |
686.208 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1181.373 |
927.346 |
798.589 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
404.006 |
389.461 |
282.337 |
|
|
2] Unsecured Loans |
0.000 |
0.873 |
39.215 |
|
|
TOTAL BORROWING |
404.006 |
390.334 |
321.552 |
|
|
DEFERRED TAX LIABILITIES |
16.900 |
16.900 |
16.900 |
|
|
|
|
|
|
|
|
TOTAL |
1602.279 |
1334.580 |
1137.041 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
878.381 |
788.445 |
411.438 |
|
|
Capital work-in-progress |
61.554 |
60.115 |
171.576 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.527 |
0.523 |
0.007 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
697.267
|
495.379
|
264.912
|
|
|
Sundry Debtors |
674.311
|
412.841
|
329.013
|
|
|
Cash & Bank Balances |
37.740
|
21.942
|
258.831
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
258.838 |
188.846
|
41.277
|
|
Total
Current Assets |
1668.156
|
1119.008
|
894.033
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
360.057
|
134.770
|
157.834
|
|
|
Current Liabilities |
473.564
|
384.249
|
64.110
|
|
|
Provisions |
172.718
|
114.497
|
118.078
|
|
Total
Current Liabilities |
1006.339
|
633.516
|
340.022
|
|
|
Net Current Assets |
661.817
|
485.492
|
554.011
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.005 |
0.009 |
|
|
|
|
|
|
|
|
TOTAL |
1602.279 |
1334.580 |
1137.041 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2901.880 |
1932.618 |
1358.152 |
|
|
|
Other Income |
52.281 |
54.269 |
35.225 |
|
|
|
TOTAL (A) |
2954.161 |
1986.887 |
1393.377 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
2157.838 |
1403.744 |
882.225 |
|
|
|
Manufacturing Expenses |
150.787 |
86.367 |
51.132 |
|
|
|
Personnel Costs |
87.549 |
65.619 |
54.280 |
|
|
|
Administrative Expenses |
41.222 |
38.685 |
28.049 |
|
|
|
Selling and General Expenses |
204.611 |
200.369 |
133.806 |
|
|
|
Increase/ Decrease in Stock |
(159.588) |
(85.318) |
(9.841) |
|
|
|
TOTAL (B) |
2482.419 |
1709.466 |
1139.651 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
471.742 |
277.421 |
253.726 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
48.421 |
53.119 |
26.867 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
423.321 |
224.302 |
226.859 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
86.043 |
61.749 |
32.606 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
337.278 |
162.553 |
194.253 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
56.998 |
20.648 |
23.562 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
280.280 |
141.905 |
170.691 |
|
|
|
|
|
|
|
|
|
|
Earlier year liability for employee benefit |
0.000 |
0.000 |
(0.328) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
409.778 |
281.021 |
123.806 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
22.000 |
0.000 |
0.000 |
|
|
|
Dividend |
|
|
|
|
|
|
- Interim Dividend |
11.238 |
0.000 |
0.000 |
|
|
|
- Proposed Final Dividend |
11.238 |
11.238 |
11.238 |
|
|
|
Corporate
Dividend Tax |
3.776 |
1.910 |
1.910 |
|
|
BALANCE CARRIED
TO THE B/S |
641.806 |
409.778 |
281.021 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Value of Export Sales |
54.440 |
35.921 |
14.519 |
|
|
TOTAL EARNINGS |
54.440 |
35.921 |
14.519 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Resin, Pipes and Fittings |
1038.047 |
761.954 |
441.029 |
|
|
|
Capital Goods |
33.391 |
56.817 |
12.355 |
|
|
TOTAL IMPORTS |
1071.438 |
818.771 |
453.384 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.94 |
12.63 |
15.19 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
711.460 |
997.730 |
986.390 |
1419.090 |
|
Total Expenditure |
620.580 |
860.530 |
868.870 |
1225.300 |
|
PBIDT (Excl OI) |
90.880 |
137.200 |
117.520 |
193.790 |
|
Other Income |
3.390 |
4.180 |
30.150 |
(4.460) |
|
Operating Profit |
94.270 |
141.380 |
147.670 |
189.330 |
|
Interest |
11.600 |
11.980 |
11.680 |
10.670 |
|
Exceptional Items |
12.020 |
(13.690) |
(9.050) |
13.160 |
|
PBDT |
94.690 |
115.710 |
126.940 |
191.820 |
|
Depreciation |
24.850 |
26.240 |
27.580 |
28.530 |
|
Profit Before Tax |
69.840 |
89.470 |
99.360 |
163.290 |
|
Tax |
16.100 |
21.320 |
15.530 |
33.080 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
53.740 |
68.150 |
83.830 |
130.210 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
53.740 |
68.150 |
83.830 |
130.210 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.49
|
7.14
|
12.25 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.62
|
8.41
|
14.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.24
|
8.52
|
14.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.18
|
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.19
|
1.10
|
0.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.66
|
1.77
|
2.63 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
360.057 |
134.770 |
157.834 |
|
|
|
|
|
TRADE REFERENCES: (As
on 31.03.2010)
·
Hiranandani Construction Private Limited, Thane
·
Balrampur Chini Mills Limited, Uttar Pradesh
·
Cadila Pharmaceuticals Limited, Ahmedabad
HISTORY
Subject was incorporated on March 25, 1996 as Astral Poly Technik
Private Limited, under the Companies Act, 1956. The name of the Company was
subsequently changed to Astral Poly Technik Limited vide fresh Certificate of
Incorporation dated September 29, 2006
The company is a manufacturer and provider of CPVC piping and plumbing systems
in
Over the years, the company has expanded and enhanced product lines to provide
continually improved services to the customers. As a manufacturer of CPVC pipes
and fittings for hot and cold water, industrial and pressure systems
application, the company had introduced a new product range in lead free PVC
pressure pipes and fittings in the year 2004. With a concept of providing a
one-stop source for all the plastic piping systems, the company also began
trading in products such as CPVC and PVC fittings, flanges and valves from
Spears (USA), solvent cements (adhesive solutions) for joining pipes and
fittings from IPSC (USA), underground specialty fittings from Hunter (U.K) and
CPVC and PVC plastic pipes of a larger diameter from Harvell Inc. (USA)
The Company has its production facilities at
The Company has received an ISO 9001:2000 certificate in respect of manufacture
and supply of CPVC and PVC pipes and fittings for plumbing systems and
industrial piping system. The raw material used by the company for
manufacturing CPVC products is certified by National Sanitary Foundation
(NSF).
The Company enjoys countrywide presence through its extensive distribution
network comprising of more than 120 Distributors and 2000 + retail outlets. The
products of the Company are very well accepted in all parts of the country
though southern and
FINANCIAL AND OPERATIONAL REVIEW
Continuing it's growth momentum, the Company, during the year, has
crossed a land mark figure of Rs.
3000.000 Millions in Sales (Gross). Net sales amounted to Rs. 2901.900 Millions compared to Rs. 1932.600 Millions in the previous
year recording a growth of 50%. The
EBITA has increased by 38% from Rs. 308.700 Millions to Rs.
427.500 Millions and Net Profit has increased by 98%. from Rs. 141.900
Millions to Rs. 280.300
Millions. Export Sales of the Company also increased from Rs. 37.995 Millions to Rs. 54.440 Millions recording a rise
of 43.28%.
PROJECT IMPLEMENTATION AND PERFORMANCE REVIEW
In the year 2008-09, the Company increased its installed capacity by 120% from 11,800 M.T. to 25,968 M.T. The Company has utilized the capacity
to the extent of 19,411 M.T. during
the year 2009-10 with a
utilization rate of 75%.
Further, looking to the growth of the Indian economy, particularly in the
segment in which the Company operates, the Directors feel that the industry
offers good potential for growth and hence decided to further increase the
capacity from 25,968 M.T. to 30,867 M.T. during the year. The
Company is planning to further increase its installed capacity during the year 2010-11.
Various products launched by the Company during the last year, such as
SWR Pipes, Underground Drainage Pipes, Foam Core Pipes etc. are getting very
good response from the local markets. The Company is planning to launch these
products on PAN INDIA basis during the current year 2010-11. Further during the
current year, the Company completed the trials of Manholes and Inspection
Chambers which will be shortly launched in the Indian Market. The Company
expects a good market for these new products.
They are proud to state that as of now, Astral is the only Company in
the Indian market whose CPVC products are approved by the NSF, signifying the
commitment of the Company to maintain the superior quality of its products and
its unique brand image.
ADDITIONAL INVESTMENT IN JOINT VENTURE
During the year, the Company has increased its stake in ASTRAL TECHNOLOGIES LIMITED -
SUBSIDIARY COMPANY
Astral Biochem Private Limited is a wholly owned
subsidiary of the Company. The subsidiary Company has already acquired land
admeasuring 67,796 Square Mtrs at GIDC-Dahej Dist: Bharuch and is looking
forward to setting up a suitable project during the coming years. During the
year, there was no activity in the subsidiary Company.
MANAGEMENT
DISCUSSION AND ANALYSIS STATEMENTS:
Industry Structure and Developments
Polymer Industry in
One of the specific market segments with which the Company is closely
connected is “Housing”. It has been estimated that the Indian middle class
population would increase from 50 million in 2007 to 583 million by 2025. One
estimate places the current short fall in dwelling units in the country at 25
million underlining a huge demand for housing in
As
Starting of manufacturing facilities at
Against the backdrop of the robust growth of the Indian economy and the
concomitant growth in the real estate and infrastructure sectors, the Company
is confident of maintaining its growth trajectory. This is borne out by the
fact that the Company has grown over 50% in top line even on a higher base
during the last financial year with a growth of 97% in bottom line. The Company
has been growing at 40% CAGR during the last 7 years.
Opportunities and Threats
When the Company increased the installed capacity in the year 2008-09
from 11,800 M.T. to 25,968 M.T., an increase of 120% it appeared to be a threat
to the Company since the Company was implementing a large capex plan during the
recession. However, as the economy recovered and came out of recession, the
Company was in readiness to meet the increasing demand from the market
delivering a top line growth of 50% backed by 75% capacity utilization.
As explained above, the huge shortages in housing persist in the economy
and government is supporting in a big way affordable housing. There is also
considerable emphasis on infrastructure spending. The growth in commercial
construction, malls and SEZ throughout the country offer great opportunity to
the Company for development of business. The increased awareness of CPVC
products both within and outside the country gives a boost to the replacement
demand for various products of the Company. In many old constructions where
metallic pipes need to be replaced because of the problems of corrosion,
scaling and rusting, CPVC pipes and fittings are used.
The increasing brand consciousness amongst the builders, architects,
plumbers and consumers will help the Company to perform better in the years ahead
supported by its concerted and continued efforts in brand promotional
activities.
The increasing imports of CPVC raw material a derivative of crude and
the fluctuations in the exchange rate of foreign currency could affect the
profitability of the Company. Volatility in crude prices will also affect the
raw material cost of PVC/CPVC resin.
Outlook
A distinct advantage which the Company is enjoying is its presence in
different segments of construction and infrastructure industry such as housing,
commercial construction, airports, hotels, malls, hospitals etc. With a
diversified demand base the Company expects to turn out robust results in the
coming years when the economy is expected to grow at the rate of 9 – 10 % p.a.
The Company continues its endeavors to increase its operational
efficiency and its innovativeness by bringing out new value added products in
the market thereby building sustainable competitive edge over others. The main
thrust of the Company is on product innovation and diversification. All out
efforts are made to reduce cost of production, to make the products more
competitive in the market. The Company's strategic alliance with Speciality
Process LLC,
To be competitive in the market the Company has to focus on reduction of
cost of its products and to take maximum advantage of incentives available in
the country for units established in the backward areas. With this end in view,
the Company is continuously increasing its production at Himachal Pradesh unit
which enjoys the benefits of lower Excise Duty, power at concessional tariff
and Income Tax.
The Company is focusing more and more on widening and deepening its
distribution channels. The Company firmly believes that a strong distribution
network is a key factor for the success and growth of the Company. Therefore,
the Company is continuously strengthening the network of distributors so much
so that today, there is not a single state in the country where Astral's
distributor is not present. Addition of innovative products under the brand
Astral will also enable the Company to have greater market access even with the
existing network of distributors.
As a part of its expansion drive the Company has recently purchased land
measuring approx. 44,000 Sqr. Yards at Dholka. The location is just 40 Km away
form the Corporate office of the Company situated at Ahmedabad. Exports to the
neighbouring countries such as
Astral is now in a position to provide the complete solution for
Plumbing which covers Drinking Water, Sanitation, Waste Water, Rain Water
Harvesting, Hot Water and Transportation of Chemicals etc.
Internal Controls and their adequacy
The Company has appropriate system of Internal Controls and procedures
commensurate with the size of the Company and its nature of business.
Independent Internal Auditors continuously review the adequacy and effectiveness
of the internal control systems on the on – going operations of the Company,
which provides reasonable assurance of adequacy and effectiveness, control,
governance and risk management procedures to the Audit Committee. The
recommendations of Internal Auditors and the Audit Committee are followed up
effectively for implementation.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
Particulars |
(As on 31.03.2010) Rs. In Millions |
|
Bank Guarantees |
2.394 |
|
Letters of Credit |
6.434 |
|
Export Obligations under EPCG Scheme (Duty Involved) |
0.689 |
|
Capital Contracts remaining to be executed |
60.787 |
FIXED
ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixture
·
Vehicles
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.45.03 |
|
|
1 |
Rs.74.43 |
|
Euro |
1 |
Rs.64.75 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--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.