MIRA
INFORM REPORT
|
Report Date : |
21.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
PRISM CEMENT LIMITED |
|
|
|
|
Registered
Office : |
305, Laxmi Nivas Apartments, Ameerpet, Hyderabad-500016, Andhra
Pradesh |
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|
Country : |
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|
|
Financials (as
on) : |
31.03.2010 |
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|
|
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Date of
Incorporation : |
26.03.1992 |
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|
|
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Com. Reg. No.: |
01-014033 |
|
|
|
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Capital
Investment / Paid-up Capital : |
Rs.5033.600
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L26942AP1992PLC014033 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP04712B |
|
|
|
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PAN No.: [Permanent Account No.] |
AAACP6224A |
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|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock
Exchanges. |
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Line of Business
: |
Manufacturers of Portland Cement. |
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|
|
|
No. of Employees
: |
Not Available |
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 46000000 |
|
|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. The
company is doing well trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered good 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) |
|
|
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 : |
305, Laxmi Nivas Apartments, Ameerpet, Hyderabad-500016, |
|
Tel. No.: |
91-40-23319208 / 23396082 |
|
Fax No.: |
91-40-23319135 / 26100179 |
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E-Mail : |
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|
Website : |
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Corporate Office : |
Rahejas, |
|
Tel. No.: |
91-22-66754142 |
|
Fax No.: |
91-22-26001304 |
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|
|
|
Factory 1: |
Village Mankahari, Tehsil Rampur Baghelan, Satna-485111, |
|
Tel. No.: |
91-7672-275622/1/410260 |
|
Fax No.: |
91-7672-275303 |
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|
|
|
Factory 2: |
17-24, Near |
|
Tel No.: |
91-40-23420818/0828 |
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Fax No.: |
91-40-23420814 |
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Email: |
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Website: |
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Marketing Office: |
Located At:
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DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Rajesh G.
Kapadia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rajan B.
Raheja |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Manoj Chhabra |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Vijay
Aggarwal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Aziz H.
Parpia (upto May 5, 2010) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Satish B.
Raheja |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Akshay R.
Raheja |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Ganesh Kaskar |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. James Arthur
Brooks |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Ms. Ameeta A.
Parpia |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Aneeta S. Kulkarni |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
68,250,423 |
13.56 |
|
|
308,630,246 |
61.31 |
|
|
376,880,669 |
74.87 |
|
|
|
|
|
|
500 |
- |
|
|
500 |
- |
|
Total shareholding of Promoter and Promoter Group (A) |
376,881,169 |
74.87 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5,443,312 |
1.08 |
|
|
40,090 |
0.01 |
|
|
31,761,159 |
6.31 |
|
|
37,244,561 |
7.40 |
|
|
|
|
|
|
15,227,420 |
3.03 |
|
|
|
|
|
|
37,243,115 |
7.40 |
|
|
20,901,197 |
4.15 |
|
|
15,859,118 |
3.15 |
|
|
2,749,475 |
0.55 |
|
|
84,200 |
0.02 |
|
|
12,369,973 |
2.46 |
|
|
655,470 |
0.13 |
|
|
89,230,850 |
17.73 |
|
Total Public shareholding (B) |
126,475,411 |
25.13 |
|
Total (A)+(B) |
503,356,580 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Portland Cement. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity Per
Annum |
Actual
Production |
|
Cement |
Tonnes |
2000000 |
2568324 |
|
Ceramic Tiles |
Tonnes |
332720 |
214900 |
|
Ready-Mixed Concrete |
Cubic Meter |
5670000 |
2380538 |
Note:
- Not applicable due to the abolition of Industrial Licenses as per notification issued under the Industries (Development and Regulation) Act, 1951.
- As certified by Management and being a technical matter, relied upon by the Auditors.
- Out of the above production of cement, 43,770 tonnes (Previous period: 6,465 tonnes) have been used for captive consumption including 43,653 tonnes (Previous period 6,415 tonnes) for capital jobs. Out of above production of Ready mixed Concrete, rejection/wastage/slurry is 6,765 Cubic Meter. Captive Consumption of Concrete is 2,050 cubic meter (Previous period nil cubic meter).
- Cement Sales include handling/transit loss and samples - 100.39 tonnes (Previous period: 78 tonnes).
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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|
Name : |
N.M. Raiji and Company Chartered Accountant |
|
Address : |
Mumbai, |
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Branch Auditors : |
|
|
Name : |
N.I. Mehta and Company Chartered Accountant |
|
Address : |
Mumbai, |
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Subsidiaries : |
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Joint Ventures/ Associates: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
505000000 |
Equity Shares |
Rs.10/- each |
Rs.5050.000 Millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
Total |
|
Rs.5250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
503356580 |
Equity Shares |
Rs.10/- each |
Rs.5033.600
Millions |
Note:
- Out of the above equity shares, 20,51,06,580 shares were issued pursuant to a Scheme of Amalgamation of erstwhile H and R Johnson (India) Limited and RMC Ready-mix (India) Private Limited with the Company without payments being received in cash.
- Out of the shares issued pursuant to the scheme of the amalgamation, 1,23,51,600 shares are held in Trust for the benefit of the Company.
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 |
5033.600 |
2982.500 |
2982.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6661.400 |
3634.000 |
3195.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11695.000 |
6616.500 |
6177.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7432.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
583.700 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
8015.700 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
975.900 |
527.700 |
587.700 |
|
|
|
|
|
|
|
|
TOTAL |
20686.600 |
7144.200 |
6765.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
9911.300 |
3927.000 |
3855.200 |
|
|
Capital work-in-progress |
6212.300 |
1091.600 |
179.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
3266.700 |
2038.100 |
2587.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2742.400
|
769.000 |
903.500 |
|
|
Sundry Debtors |
2110.800
|
0.000 |
33.800 |
|
|
Cash & Bank Balances |
525.000
|
258.700 |
129.700 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1457.100
|
658.900 |
558.200 |
|
Total
Current Assets |
6835.300
|
1686.600 |
1625.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2936.000
|
351.100 |
|
|
|
Other Current Liabilities |
2116.400
|
747.100 |
1246.700 |
|
|
Provisions |
486.600
|
500.900 |
235.500 |
|
Total
Current Liabilities |
5539.000
|
1599.100 |
1482.200 |
|
|
Net Current Assets |
1296.300
|
87.500 |
143.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
20686.600 |
7144.200 |
6765.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
28379.800 |
6473.500 |
8764.500 |
|
|
|
Income From Joint Ventures-Dividend |
86.000 |
0.000 |
0.000 |
|
|
|
Other Income |
134.500 |
96.900 |
159.200 |
|
|
|
TOTAL (A) |
28600.300 |
6570.400 |
8923.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Operating Expenses |
16869.900 |
3275.700 |
3829.500 |
|
|
|
Personnel Expenses |
1348.800 |
260.400 |
354.300 |
|
|
|
Sales, Administration and Other Expenses |
5186.700 |
1236.000 |
1215.000 |
|
|
|
Exceptional Items |
188.700 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
23594.100 |
4772.100 |
5398.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5006.200 |
1798.300 |
3524.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
525.200 |
35.400 |
38.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4481.000 |
1762.900 |
3486.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
898.500 |
243.100 |
319.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3582.500 |
1519.800 |
3167.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1072.000 |
557.500 |
751.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2510.500 |
962.300 |
2416.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3584.000 |
3195.200 |
1129.700 |
|
|
|
DIVIDEND
ON OWN SHARES HELD THROUGH TRUST |
18.500 |
0.000 |
0.000 |
|
|
|
SURPLUS
ON AMALGAMATION |
484.900 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
TRANSITIONAL
ADJUSTMENT FOR AS-15 |
0.000 |
0.000 |
1.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
260.000 |
50.000 |
0.000 |
|
|
|
Transfer to Capital Redemption Reserves |
107.500 |
0.000 |
0.000 |
|
|
|
Preferences Dividend |
0.800 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
179.100 |
76.000 |
0.000 |
|
|
|
Tax on Proposed Dividend |
0.000 |
149.200 |
0.000 |
|
|
|
Interim Dividend |
1053.300 |
298.300 |
298.300 |
|
|
|
Tax on Interim Dividend |
0.000 |
0.000 |
50.700 |
|
|
BALANCE CARRIED
TO THE B/S |
4997.200 |
3584.000 |
3195.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
160.800 |
38.600 |
|
|
|
|
Sales of Carbon Credits |
11.400 |
0.000 |
NA |
|
|
|
Interest Income |
6.300 |
0.000 |
|
|
|
TOTAL EARNINGS |
178.500 |
38.600 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
271.300 |
183.200 |
|
|
|
|
Raw Materials |
122.800 |
0.000 |
NA |
|
|
|
Capital Goods |
1308.400 |
0.000 |
|
|
|
|
Traded Goods |
80.400 |
0.000 |
|
|
|
TOTAL IMPORTS |
1782.900 |
183.200 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.11 |
3.23 |
8.10 |
|
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 |
7238.200 |
7526.100 |
8422.600 |
10616.400 |
|
Total Expenditure |
6146.400 |
7117.300 |
7792.500 |
9419.400 |
|
PBIDT (Excl OI) |
1091.800 |
408.800 |
630.1000 |
1197.000 |
|
Other Income |
36.800 |
54.200 |
15.000 |
7.900 |
|
Operating Profit |
1128.600 |
463.000 |
645.100 |
1204.9000 |
|
Interest |
123.600 |
170.200 |
318.100 |
399.700 |
|
Exceptional Items |
30.200 |
0.000 |
(20.600) |
0.000 |
|
PBDT |
1035.200 |
292.800 |
306.400 |
805.200 |
|
Depreciation |
223.500 |
250.500 |
313.500 |
345.500 |
|
Profit Before Tax |
811.700 |
42.300 |
(7.100) |
459.700 |
|
Tax |
252.700 |
(3.700) |
(3.300) |
103.000 |
|
Profit After Tax |
559.000 |
46.000 |
(3.800) |
356.700 |
|
Net Profit |
559.000 |
46.000 |
(3.800) |
356.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.77
|
14.65 |
27.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.62
|
23.47 |
36.14 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.39
|
27.07 |
57.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.23 |
0.51 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.16
|
0.24 |
0.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23
|
1.05 |
1.10 |
LOCAL AGENCY FURTHER INFORMATION
OPERATING RESULTS
The Scheme of Amalgamation ("the Scheme") of H. and R. Johnson (India) Limited and RMC Ready-mix
(India) Private Limited (Transferor Companies) with the Company was sanctioned
by the Hon'ble High Courts of Judicature at Bombay and Andhra Pradesh on
January 22, 2010 and February
4, 2010, respectively. The Scheme became effective on March 3, 2010 and is
operative from April 1, 2009, the appointed date fixed in the sanctioned
Scheme. Pursuant to the Orders, the entire undertaking and business of the
Transferor Companies, as going concerns, stood transferred and became vested
with the Company. Previous period figures are for nine months, while the
current year figures include operations of the Transferor Companies consequent
to the amalgamation. The current year figures are, therefore, not comparable
with previous period.
OPERATIONS
The gross sales and other income for the year ended March 31, 2010 was
Rs. 30109.200 Millions. The profit before tax was Rs. 3582.500 Millions and the
net profit was Rs. 2510.500 Millions .
SUBSIDIARY AND
JOINT VENTURE COMPANIES
Pursuant to the Scheme, the subsidiaries and joint venture companies of
the erstwhile H. and R. Johnson (
Subsidiaries
Raheja QBE General Insurance Company Limited, the insurance JV Company
with QBE Holdings (AAP) Pry Limited, is in growing stage and has introduced
significant number of liability products including other general insurance
policies approved by the IRDA during the year.
- Silica
Ceramica Private Limited, the vitrified tile Company in Andhra Pradesh,
has completed one full year of manufacturing operations and has been
running at a utilisation level of over 90% since the last quarter of the
year. During the year, the Company increased its stake in the Joint
Venture from 50% to 65.7%.
- H and R
Johnson (
- Lifestyle
Investments Private Limited (LIPL) is an overseas wholly owned subsidiary.
LIPL issued 60,05,000 preference shares of 1 GBP each and redeemed
53,45,884 preference shares of 1 GBP during the year.
- Porselano Tiles
Limited, the wholly owned subsidiary of the Company, is yet to commence
business.
Joint Ventures (JV)
- Ardex Endura
(
- Sentini
Cermica Private Limited, the mid-segment glazed floor tile JV Company in
Andhra Pradesh has been consistently operating at full capacity.
- Antique
Granito Private Limited, the vitrified tile JV Company in Gujarat has
installed and commissioned a new Multi-Colour charging system (Magic
Brush) enabling the plant to manufacture value-added, full-body effect
products. During the year, Antique Granito Private Limited has acquired a 50%
stake in Umiya Ceramics Private Limited. Utriiya Ceramics has an
installed capacity of 7.26 million m2 per annum of ceramic vitrified tiles
at
- Milano
Bathroom Fittings Private Limited, the bath fittings JV at Baddi, Himachal
Pradesh, has been consistently operating at full capacity.
- Spectrum
Tiles Private Limited, the mid-segment wall tiles JV Company in
MANAGEMENT
DISCUSSION AND ANALYSIS
Business
Environment
The year 2009-10 witnessed buoyant and sustained growth of the Indian
economy. In the last five years, the GDP of the Indian economy has grown at an
average of 8.5% p.a. notwithstanding the significant dip in growth in 2008-09
on account of the global slowdown. This year, despite the setbacks and
challenges, the Indian economy has achieved a GDP growth rate of around 7%.
With this backdrop, the Company achieved a turnover of Rs. 29888.700
Millions with a profit after tax of Rs.
2510.500 Millions . The Board of Directors declared two interim dividends
aggregating to Rs. 2.50 per equity share during the year ended March 31, 2010.
The Scheme of Amalgamation of erstwhile H. and
R. Johnson (India) Limited and erstwhile RMC Ready mix (India) Private
Limited with Prism Cement Limited was approved by the High Courts of Judicature
at Bombay and Andhra Pradesh. The Scheme became effective on March 3, 2010 and
is operative from April 1, 2009, the appointed date fixed in the sanctioned
Scheme. From the said date the Company operates three divisions – Prism Cement,
H and R Johnson (
Cement Division
Overview
The Indian cement industry continued its buoyant performance and
registered cement consumption growth of about 13% on YoY basis. In the last two
financial years, the cement industry has registered a double-digit growth in
capacity addition compared to moderate growth of 3-7% registered during the
period FY 03-07. The strong drive in housing and infrastructure spending is
leading to a sharp rise in cement consumption.
Performance at a Glance
|
Particular |
12 Months Ended March 31, 2010 |
|
Production Lakh Tonnes |
25.68 |
|
Sales Volume (Cement) – Lakh Tonnes |
25.02 |
|
Net Revenue – Rs. Millions |
10209.300 |
|
PBDIT Rs. Millions |
3552.800 |
|
Power Consumption KWH/T |
72.3 |
Expansions
The Company's second cement plant adjoining the present plant location at
Satna with a proposed cement capacity of 3.6 MTPA is under progress. The
Company endeavours to commence commercial production in the last quarter of
2010. The Company also has plans to set up a cement plant in the Kurnool
District of Andhra Pradesh with a cement capacity of 4.8 MTPA. The Company is
awaiting certain clearances from the State Government after which further
activity shall take place. The Company has been allotted a Coal Block in the
Chhindwara District of Madhya Pradesh. The Mining Plan has been approved by the
Central Government and the Company has received clearance from the Ministry of
Environment and Forests. The Company is in the process of evaluating offers
from contractors and machinery suppliers.
Future Outlook
The key growth drivers like housing and infrastructure are continuing to
be robust which augurs well for the cement industry. Gains will be fueled by
rising Government investments in housing and infrastructure, driven by economic
growth and increasing per capita income levels. The planned infrastructure
projects of road, airports, ports and power generation should push cement
demand further. Cement continues to be one of the highly taxed products in the
country despite being a basic essential commodity for growth. Any move on the
part of the Government to hike tax rates further to garner more revenue may
impact the profitability of the industry.
H and R Johnson (
Overview
H and R Johnson (
Tiles
The global ceramic tiles industry is estimated to be 8.5 billion m2.
The per-capita consumption of ceramic tiles in
The size of bath products industry is approximately Rs. 37000.00
Millions comprising sanilaryware,
faucets, taps and bath fittings. As in case of tiles, there is a huge potential
for growth in
Kitchen
Kitchen is a nascent industry in
Performance at a glance
The sales revenue of the Division for the year ended March 31, 2010 was
Rs. 11876.300 Millions with a PBDIT of
Rs. 1758.000 Millions .
It was a year of uncertainty, starting with the economy in the shadows
.of recession but ending on a cheery note of recovery. With the Indian economy
improving in the second-half of the year, there was a revival in demand for
tiles, bath products and kitchens. Many projects which were put on hold due to
liquidity crunch re-started during the third and fourth quarters of the year.
Thus, there has been a noticeable improvement on the demand side during the
latter part of the year and it is expected to improve further in the current
year.
The Division continued to strengthen its brands and build its
distribution network. The major marketing activities during the year were
merchandising, sales promotions for the trade network and advertising in
various media. On the distribution front, warehouse operations were started in
4 cities during the year. This takes the total number of warehouses to 33
across the country which enables to cater effectively to the market
requirements by shortening the lead time for order servicing. The Division has
also appointed 16 Johnson Kitchen Franchisees with 19 counters across the
country and is in the process of scaling-up the activities further. Innovation being one of its ore values, the Division launched some
trend-setting innovative products. Marbonite StainFree tiles exhibit enhanced
stain resistance when compared to ordinary vitrified polished tiles. Most common
household stains can
be cleaned-off with water or commercially available acids, provided they
are cleaned immediately. Endura Scratch-Free is an ideal product for use in
high-traffic areas and areas susceptible to abrasion like offices, malls,
hotels, etc. When tested as per ISO 13006 standards, Endura ScratchFree tiles
exhibit much higher level of scratch and abrasion resistance as compared to
ordinary glazed floor tiles. Johnson GermFree wall tile is another innovative
offering which protects and prevents the growth of fungus and bacteria. Johnson
GermFree tiles have been shown to reduce the bacteria count of common bacteria
such as Escherichia Coli, Staphylococcus Aureus, Pseudmones Aeruginosa, etc.,
when tested against Japanese standards JIS Z 2801-2000 to a level of greater
than 95%. Johnson Germ Free helps promotes better hygiene and reduces
the possibility of infections and
diseases.
Ceramic World Review, a reputed magazine published from
Future Outlook
With the healthy growth of the Indian economy and the industries that
the Company operates in, it is well-positioned to continue the growth in future
also. Moreover, bulk of the products are targeted towards the affordable
housing segment which is likely to continue growing at a healthy rate. The
robust distribution network, strongbrand equity, wide-spread manufacturing locations
and a comprehensive product portfolio of tiles, baths and kitchens enable the
Company to enjoy a distinct competitive advantage over others in the market.
Expansions / Upgrade
In line with the efforts to introduce cutting-edge manufacturing technology,
a state-of-the-art Inkjet Printing System has been installed at the Pen Plant
in the month of May, 2010. It is aimed at producing high-end, value-added Wall
and Floor Tiles. This is the largest Inkjet Printing System for the tile
industry in
RMC Ready-mix (
Overview
The RMC Division is engaged in supplying ready mixed concrete and
aggregates required by the construction industry. As at March 31, 2010, the
Division operated 59 concrete plants and 7 aggregate quarries in different
locations across the country. The Division has a pan-India presence and is
respected as a leading supplier of ready mixed concrete.
Performance at a Glance
|
Particular |
12 Months Ended March 31, 2010 |
|
Sales Volume in Lakh M 3 |
23.72 |
|
Net Revenue Rs. in Millions |
6799.100 |
|
PBDIT Rs. in Millions |
402.000 |
The RMC markets were badly affected in the wake of recessionary conditions
prevailing during the year 2008-09 resulting in fall in demand in real estate
sector and reduced construction activities in the Division's primary markets.
Despite adverse market conditions, better profitability was achieved by
prudent cost control and taking efforts to increase volume from the current
operating plants and closing unviable plants. Two commercial plants were added
during the year to its existing operations.
Expansion
During the year, the Division enlarged its scope of operations and has
commenced operating a Mega Project Vertical in view of the large infrastructure
construction work expected to be put in place to meet the requirements of the
power, water, irrigation and infrastructure sectors. The Mega Project Vertical
will offer dedicated site project
solutions to the construction industry. The Division has planned to
increase its size of operations in the coming years and is actively pursuing
certain projects in the RMC and Aggregates Verticals. Some of these projects
will become operational during 2010-11.
Future Outlook
The ready mixed concrete industry is 15 years old and has been on a fast
track growth mode over the last few years. The anticipated construction boom
and developments in the residential, commercial and infrastructure space will
offer great opportunities to the Division. The growth for RMC will come through
higher penetration in more areas of construction. At present, around 8-10% of
the total concrete manufactured in the country is obtained through the RMC route
whereas internationally this figure is in the region of 60-70%. It is expected
that this will undergo change and going ahead the penetration will be more and
faster.
AUDITED
FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2011
Rs.
in Millions
|
Particular |
Audited
|
|
|
Year
Ended 31.03.2011 |
|
|
|
|
Sales |
35569.400 |
|
Less : Excise
duty |
2017.000 |
|
Net sales |
33552.400 |
|
Income from Joint
Venture - Dividend |
83.800 |
|
Other Income from
operations |
250.900 |
|
Total income |
33887.100 |
|
Expenditure |
|
|
Consumption of
raw materials |
8153.400 |
|
Purchase of
traded goods |
7259.900 |
|
Stores and spares
consumed |
797.400 |
|
Power and fuel |
4282.000 |
|
Employees cost |
1728.000 |
|
Freight outward |
3323.900 |
|
(Increase) / decrease
in stock in trade and work in progress |
(250.100) |
|
Depreciation and
amortisation |
1133.000 |
|
Other expenditure |
5181.100 |
|
Total expenditure |
31608.600 |
|
Profit from
operations before other income, finance cost, tax and exceptional items |
2278.500 |
|
Other income |
30.100 |
|
Profit before
finance cost, tax and exceptional items |
2308.600 |
|
Finance cost |
1011.600 |
|
Profit before tax
and exceptional items |
1297.000 |
|
Exceptional items
: |
|
|
Profit / (Loss) on
sale of assets / investments |
9.600 |
|
Amalgamation
expenses |
0.000 |
|
Profit before tax |
1306.600 |
|
Tax expenses |
(348.700) |
|
Net profit after
tax |
957.900 |
|
Share of minority
interest |
0.000 |
|
Net profit |
957.900 |
|
Paid-up equity share
capital (Rs. 10/- per share) |
5033.600 |
|
Reserves
excluding revaluation reserves |
7044.700 |
|
EPS (Rs. Basic
and diluted |
1.95 |
|
Debt Service
Coverage Ratio |
1.20 |
|
Interest Service
Coverage Ratio |
3.41 |
|
Public
shareholding |
|
|
Number of shares |
126475411 |
|
Percentage of
shareholding |
25.13 |
|
Promoters and
promoter group shareholding |
|
|
Pledged / encumbered |
|
|
Number of shares |
-- |
|
Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
-- |
|
Percentage of
shares (as a % of the total share capital of the Company) |
-- |
|
Non-encumbered |
|
|
Number of shares |
376881169 |
|
Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
|
Percentage of shares
(as a % of the total share capital of the Company) |
74.87 |
Note:
- The Company had paid Interim Dividend @
Re. 1.00 per share aggregating to Rs.587.000 millions (including dividend distribution
tax). The Board recommends that the said Interim Dividend be treated as
Final Dividend.
- As listed debt securities have been
issued during the year, ratios for the year ended March 31, 2011 only have
been disclosed. The formula used for calculation of Ratios are as under:
(a) Debt Service Coverage Ratio = Profit before
Depreciation, Interest and Tax / [Interest + Principal repayment of long term
loans (excluding prepayment of Rs.613.900 millions)]
(b) Interest Service Coverage Ratio = Profit
before Depreciation, Interest and Tax / Interest and other related cost.
- Earning per Share (EPS) has been
computed considering equity share capital without own shares held through
Trust.
- Figures of the previous year have been
regrouped wherever necessary.
- There were no complaints pending at the
beginning of the quarter ended March 31, 2011. During the said quarter,
the Company received 5 investor complaints, all of which have been
redressed.
- The above statement has been reviewed
by the Audit Committee and approved by the Board of Directors at its
meeting held on April 29, 2011.
SEGMENT
OF ASSETS AND LIABILITIES
Rs.
in Millions
|
Particular |
Audited
|
|
|
Year
Ended 31.03.2011 |
|
|
|
|
SHAREHOLDERS’ FUNDS |
|
|
(a) Capital |
5033.600 |
|
(b) Reserves and
Surplus |
7044.700 |
|
LOAN FUNDS |
11698.400 |
|
DEFERRED TAX
LIABILITY |
1321.100 |
|
MINORITY INTEREST |
0.000 |
|
TOTAL |
25097.800 |
|
|
|
|
GOODWILL ON
CONSOLIDATION |
0.000 |
|
FIXED ASSETS |
19442.200 |
|
INVESTMENTS |
3543.100 |
|
DEFERRED TAX
ASSET |
0.000 |
|
|
|
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
(a) Inventories |
3712.900 |
|
(b) Sundry
Debtors |
2646.200 |
|
(c) Cash and Bank
balances |
600.000 |
|
(d) Loans and
Advances |
2757.000 |
|
|
|
|
Less: Current Liabilities and Provisions |
|
|
(a) Liabilities |
7046.700 |
|
(b) Provisions |
556.900 |
|
NET CURRENT ASSETS |
2112.500 |
|
|
|
|
TOTAL |
25097.800 |
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.44.99 |
|
|
1 |
Rs.72.60 |
|
Euro |
1 |
Rs.64.01 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--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 |
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 |
|
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.