1. Summary Information
|
|
|
Country |
|
|
Company Name |
TULSI EXTRUSIONS LIMITED |
Principal Name 1 |
MR. OMPRAKASH S. JHAVAR |
|
Status |
Satisfactory |
Principal Name 2 |
MR. SANJAYR.TAPARIA |
|
|
|
Registration # |
11-081186 |
|
Street Address |
Plot No. N-99, MIDC Area, Jalgaon – 425003, |
||
|
Established Date |
16.09.1994 |
SIC Code |
-- |
|
Telephone# |
91-257-2272732 / 22122776 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-257-2210052 |
Business Style 2 |
|
|
Homepage |
Product Name 1 |
Rigid PVC pipes |
|
|
# of employees |
Not Available |
Product Name 2 |
HDPE pipes |
|
Paid up capital |
Rs.124951000 /- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and
Promoter Group-25.36% Public
shareholding-74.27% Custodians-0.37% |
Banking |
Punjab National Bank AXIS Bank |
|
Public Limited Corp. |
YES |
Business Period |
17 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Ba [46] |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Related
Party |
-- |
Gopal Extrusions Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
650,245,000 |
Current Liabilities |
140,337,000 |
|
Inventories |
402,998,000 |
Long-term Liabilities |
671,271,000 |
|
Fixed Assets |
336,837,000 |
Other Liabilities |
41,600,000 |
|
Deferred Assets |
0 |
Total Liabilities |
853,208,000 |
|
Invest& other Assets |
263,655,000 |
Retained Earnings |
675,576,000 |
|
|
|
Net Worth |
800,527,000 |
|
Total Assets |
1,653,735,000 |
Total Liab. & Equity |
1,653,735,000 |
|
Total Assets (Previous Year) |
1,163,172,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
1,099,261,000 |
Net Profit |
62,152,000 |
|
Sales(Previous yr) |
802,624,000 |
Net Profit(Prev.yr) |
15,749,000 |
MIRA
INFORM REPORT
|
Report Date : |
21.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
TULSI EXTRUSIONS LIMITED |
|
|
|
|
Registered
Office : |
Plot No. N-99, MIDC Area, Jalgaon – 425003, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
16.09.1994 |
|
|
|
|
Com. Reg. No.: |
11-081186 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.124.951 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29120MH1994PLC081182 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NSKT01296B |
|
|
|
|
Legal Form : |
Public Limited Liability
company. The company’s Share are Listed on the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of
Rigid PVC pipes and fittings , HDPE pipes, etc. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba [46] |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3200000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
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 usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered / Corporate Office : |
Plot No. N-99, MIDC Area, Jalgaon – 425003, |
|
Tel. No.: |
91-257-2272732 / 22122776 |
|
Fax No.: |
91-257-2210052 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Laisoning Office |
709, 7th Floor Janki Centre, 29, Shah Industrial Estate, Off. |
|
Tel. No.: |
91-22-26742090,26731222 |
|
Fax No.: |
91-22-26742073 |
|
|
|
|
Unit -I |
Plot No N-99/100/109,
M.I.D.C. Area, Jalgaon- 425 003 |
|
Tel. No.: |
91-257-2272732 / 2212276 |
|
Fax No.: |
91-257-2210052 |
|
|
|
|
Unit -II |
Plot No H-16, M.I.D.C. Area, Jalgaon- 425 003, |
|
Tel. No.: |
91-257-2271265 / 2270572 |
|
Fax No.: |
91-257-2210052 |
|
|
|
|
Unit -III |
Plot No G-51/52, M.I.D.C. Area, Jalgaon- 425 003 |
|
Tel. No.: |
91-257-2210792 / 2211303 |
|
Fax No.: |
91-257-2210052 |
|
|
|
|
Branches : |
Located at
|
DIRECTORS
As on 20.09.2010
|
Name : |
MR. OMPRAKASH S. JHAVAR |
|
Designation : |
Chairman-Non Executive |
|
|
|
|
Name : |
MR. SANJAYR.TAPARIA |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
MR. GOPALDAS J. MAHESHWARI |
|
Designation : |
Director-Non Executive |
|
|
|
|
Name : |
MR. PRADIPJ. MUNDHRA |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
MR. JAIPRAKASH B. KABRA |
|
Designation : |
Director-Non Executive |
|
|
|
|
Name : |
MR. RAJESH B. JHUNJHUNWALA |
|
Designation : |
Director-Non Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
4473503 |
16.27 |
|
Bodies Corporate |
2498100 |
9.09 |
|
Sub Total (A)
(1) |
6971603 |
25.36 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Financial Institutions / Banks |
38833 |
0.14 |
|
Foreign Institutional Investors |
377387 |
1.37 |
|
Sub Total (B)
(1) |
416220 |
1.51 |
|
|
|
|
|
2. Non Institutions
|
|
|
|
Bodies Corporate |
4594151 |
16.71 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
12005763 |
43.67 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
2332743 |
8.48 |
|
|
|
|
|
Non Residents |
|
|
|
NRI Rep |
149093 |
0.54 |
|
Clearing Members |
922924 |
3.36 |
|
(B) = (B) (1) +
(B) (2) |
20420894 |
74.27 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
|
|
|
Public |
102113 |
0.37 |
|
|
|
|
|
Total (A) + (B) +(C) |
27494610 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Rigid PVC pipes and fittings , HDPE pipes, etc. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS Ason 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
PVC Pipes and Fittings, HDPE/LLDPE Pipes & Fittings and Moulded Fittings |
MT |
-- |
24833.08 |
13473.69 |
|
|
|
|
|
|
|
Note: - Installed capacity is as certified
by the management but not verified by the auditors being technical matter. |
||||
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
·
Punjab National Bank, Jalgaon ·
AXIS Bank, Jalgaon ·
State Bank of
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Statutory Auditors : |
K.
K. Kabra and Company Chartered Accountant |
|
Address : |
Jalgaon, |
|
|
|
|
Internal Auditors : |
Badale
Mahale Lanke and Company Chartered
Accountants |
|
Address : |
Jalgaon, |
|
|
|
|
Related Party : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15,000,000 |
Equity Shares |
Rs.10/-each |
Rs.150.000 millions |
|
|
|
|
|
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12,495,100 |
Equity Shares |
Rs.10/-each |
Rs.124.951 millions |
|
|
|
|
|
|
|
|
|
|
[Of the above 1597500 shares (1597500) are alloted as fully paid by way
of bonus issue out of free reserves]
As on 20.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50,000,000 |
Equity Shares |
Rs.10/-each |
Rs.500.000 millions |
|
|
|
|
|
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
27,494,610 |
Equity Shares |
Rs.10/-each |
Rs.274.946 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
124.951 |
124.951 |
124.951 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
675.576 |
620.009 |
600.027 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
800.527 |
744.960 |
724.978 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
671.271 |
306.582 |
218.264 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
671.271 |
306.582 |
218.264 |
|
|
DEFERRED TAX LIABILITIES |
23.508 |
8.753 |
6.072 |
|
|
|
|
|
|
|
|
TOTAL |
1495.306 |
1060.295 |
949.314 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
336.837 |
126.244 |
63.800 |
|
|
Capital work-in-progress |
229.476 |
219.749 |
167.757 |
|
|
|
|
|
|
|
|
INVESTMENT |
19.628 |
14.783 |
15.017 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
402.998
|
188.326 |
186.105 |
|
|
Sundry Debtors |
491.680
|
397.422 |
286.999 |
|
|
Cash & Bank Balances |
40.751
|
85.794 |
64.776 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
117.814
|
66.207 |
142.168 |
|
Total
Current Assets |
1053.243
|
737.749 |
680.048 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
116.683
|
84.146 |
16.082 |
|
|
Other Current Liabilities |
23.654
|
11.175 |
9.595 |
|
|
Provisions |
18.092
|
7.556 |
14.972 |
|
Total
Current Liabilities |
158.429
|
102.877 |
40.649 |
|
|
Net Current Assets |
894.814
|
634.872 |
639.399 |
|
|
|
|
|
|
|
|
Pre operative Expenses |
0.000 |
46.522 |
45.122 |
|
|
IPO Expenses |
14.551 |
18.057 |
18.082 |
|
|
Old Preoperative Expenses |
0.000 |
0.068 |
0.137 |
|
|
TOTAL |
1495.306 |
1060.295 |
949.314 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Manufacturing and Trading Sales |
1099.261 |
802.624 |
656.970 |
|
|
|
Other Income |
7.434 |
6.141 |
0.959 |
|
|
|
TOTAL (A) |
1106.695 |
808.765 |
657.929 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
701.722 |
484.441 |
477.658 |
|
|
|
Manufacturing Expenses |
84.513 |
53.205 |
32.621 |
|
|
|
Trading Expenses |
197.393 |
83.960 |
77.254 |
|
|
|
Personnel Expenses |
37.621 |
20.805 |
14.081 |
|
|
|
Administrative Expenses |
100.661 |
59.599 |
30.453 |
|
|
|
Increase decrease in stock |
[184.617] |
37.601 |
[67.624] |
|
|
|
TOTAL (B) |
937.293 |
739.611 |
564.443 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
169.402 |
144.356 |
93.486 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
59.692 |
39.251 |
29.946 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
109.710 |
105.105 |
63.540 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16.063 |
6.772 |
3.783 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
93.647 |
23.131 |
59.757 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
31.495 |
7.382 |
19.107 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
62.152 |
15.749 |
40.650 |
|
|
|
|
|
|
|
|
|
Less |
Short [Excess] provision of tax in earlier year |
[0.724] |
3.077 |
1.656 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
51.253 |
58.581 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
20.000 |
-- |
|
|
|
Proposed Dividend on equity shares |
6.247 |
0.000 |
-- |
|
|
|
Corporate Dividend Tax |
1.061 |
0.000 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
106.821 |
51.253 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
2033.920 |
8808.480 |
-- |
|
|
TOTAL IMPORTS |
2033.920 |
8808.480 |
Nil |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.41 |
1.01 |
|
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
|
Sales Turnover |
379.770 |
225.440 |
353.980 |
631.650 |
|
Total Expenditure |
308.780 |
182.370 |
309.630 |
606.030 |
|
PBIDT (Excl
OI) |
70.990 |
43.070 |
44.350 |
25.620 |
|
Other Income |
0.000 |
0.000 |
0.000 |
0.000 |
|
Operating
Profit |
70.990 |
43.070 |
44.350 |
25.620 |
|
Interest |
21.040 |
23.840 |
31.400 |
31.940 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
49.950 |
19.220 |
12.950 |
[6.320] |
|
Depreciation |
6.690 |
7.650 |
7.920 |
7.980 |
|
Profit
Before Tax |
43.250 |
11.570 |
5.020 |
[14.300] |
|
Tax |
9.610 |
6.410 |
3.390 |
5.740 |
|
Reported PAT |
33.640 |
5.160 |
1.630 |
[20.040] |
|
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 |
33.640 |
5.160 |
1.630 |
[20.040] |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.62
|
1.95 |
6.18 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.52
|
2.88 |
9.09 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.74
|
2.68 |
8.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.03 |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.04
|
0.55 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.65
|
7.17 |
16.73 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE AND
BUSINESS OPERATIONS
For the fiscal year 2009-10, the company achieved 37% growth of in sales
aggregating to Rs.109.926 millions as compared with that of previous year
Rs.80.262 millions. Also, during 2009-10, the total installed capacity
utilization was increased to 13473.69 metric tones from 9846.30 metric tonnes.
The production level increased due to reduction in down-time and increase in
production of new product ranges in moulded fittings and micro drip irrigation.
During 2009-10, the company's branches made trading of construction
input items like tore-steel, MS angles, MS channels, MS plates, cement etc.
which accounted for Rs.209.943 millions in comparison to trading turnover of
Rs.95.528 millions during 2008-09. The trading in construction input items
facilitated their entry in construction sector by offering the buyer /
contractor different product range from one point contact.
Profit before tax during 2009-10 was Rs.93.647 Millions as compared to
Rs.23.131 Millions during 2008-09, which shows an increase of 304%. This
phenomenal increase was mainly due to stability in raw material prices and
sales trend which had been adversely affected during 2008-09 due to severe
international economic recession. Additionally the company has been able to
penetrate into micro drip irrigation market along with increased ranges of
existing products, which resulted in increasing profits for current year.
NEW PROJECTS
The company is taking various growth options so as to enhance the
company's future revenue and for the expansion of its core businesses : Micro
drip Irrigation. The company continues its dedication to the slogan "Let's
nurture the green era...." and is preparing itself for offering a bigger
bouquet of the products to the market by adding CPVC pipes, Column submersible
pipes, flat inline drip irrigation system, mini sprinkler, soluble fertilizer,
crates, chairs, furniture and brass fittings in the coming financial year.
MANAGEMENT
DISCUSSION AND ANALYSIS (MDA)
The Indian economy exhibited clear momentum in recovery, and despite the
impact of a deficient monsoon on agricultural production, GDP growth for
2009-10 has been estimated at 7.2 per cent, up from 6.7 per cent recorded in
2008-09 as per CSO. However, Indian GDP totaled 970 billion U.S. dollars
increasing 7.4 percent during fiscal year 2009-2010, which ended at March 31,
2010, against earlier forecast of 7.2 percent as per Indian Ministry of
Statistics and Program Implementation.
The government adjusted up overall economic growth estimates on brisk
performance of agriculture, forestry and fishing, mining and quarrying as well
as manufacturing sectors. The growth rates of the above-mentioned three sectors
were hiked from negative 0.2 percent, 8.7 percent and 8.9 percent to 0.2
percent, 10.6 percent and 10.8 percent, respectively.
Relative to other emerging economies, the inherent strengths of
While the increase in CRR effected by the Reserve Bank in its Third
Quarter Policy Review of January 2010 led to some moderation in excess
liquidity, overall liquidity conditions remain comfortable as reflected in the
daily reverse repo operations.
The country strives to attain 8.5 percent growth of GDP in fiscal year
2010-2011 with the aim of realizing 9 percent growth in the following year. The
forecast for the agriculture sector growth was revised upwards to 4.0 per cent
from 3.5 per cent as per 'Survey of Professional Forecasters' conducted by the
Reserve Bank in March 2010.
Industry Structure
and Development:
The company is one of the emerging Agri-business companies in
The Company's product range includes Rigid PVC Pipes and Fittings, SWR
Pipes and Fittings, PVC Casing and Screen Pipes, HOPE Pipes and fittings, HOPE
Sprinkler System, LLDPE Pipes and fittings, ASTM Plumbing Pipes and fittings,
Elastomeric Sealing Pipes and Moulded Fittings.
The Pipe products manufactured by the Company are to suit the
requirements of application in farm irrigation, landscape, plumbing, cable
ducting, potable water supply schemes, sewerage and drainage systems,
construction industry, telecom industry, bore well for underground water
suction etc. ranging from 20mm diameter to 315mm diameters in all pressure
ratings. The Company operates in only one Industry Segment i.e. Plastic Pipe
Industry.
The company's primary focus is to play a catalyst in providing value
added long lasting solutions through its product and services to problems of
water security, food security and energy security. In line of company's word,
'Let's nurture the green era', the company's management is planning to train
and educate the farmers and locals through its well established network dealer
about importance of water resources and its best management along with optimum
utilization.
Outlook
Worldwide demand for plastic pipe is forecast to increase 4.6 percent
annually through 2012 to 8.2 billion meters, or 18.2 million metric tons. With
a population that exceeds 1 billion and low per capita consumption of plastics
of only 4 kg per year (as compared to 110 kg in the
(Source:
The demand for Pipes in agricultural sector will increase in leaps and
bounds because of various Government policies and reforms. Hence, there is an
ample opportunity for companies in agricultural product section. Similarly, the
government policies of continuing tax benefits on housing loan and increasing
number of residential complex, shopping malls, construction of hospitals and
growth in tourism will give a boost to companies related to construction
products.
It is a requirement to provide potable water to several areas of the
country, as also improve sanitation and develop housing construction at low
cost. Plastics play a key role in all these segments, which can improve the
quality of life of a majority of the country's population. The Company is a
prominent supplier of piping system to provide solutions in all these segments.
In
The company is thriving to increase its efficiency in operation,
expansion of product range and organic growth in marketing thereby building
sustainable competitiveness. The next geographical growth target is Gujarat,
The joint venture initiative with Tulsi Plastics SA (Pty) Limited
Durban, South Africa is being carried out in phased manner. Tulsi Plastics SA
(Pty) Limited is coming out of initial setting period and has reported good
demand for its products. In coming years, the company is expecting strengthening
of business relationship with
Company's Strength
and Growth Drivers
Quality of the
Company
The Company received an ISO-9001:2008 certificate in respect of its
quality management systems. The present certificate is valid till 16 March,
2013. The Company maintains quality at all stages of manufacturing process
starting from raw material procurement to manufacture of the finished product.
All of the Company's finished products are tested in its well equipped quality
control laboratory to ensure that they adhere to the laid down quality
standards. The Company also facilitates third party inspection upon the request
of its customers.
Marketing and
Distribution Network
Sales are made through direct marketing through the Company's network of
dealers and distributors and by the Company's sales personnel. Presently, the
Company has more than 900 dealers covering seven states viz. Maharashtra, West
Bengal, Madhya Pradesh, Rajasthan, Chattisgarh,
The Company has also appointed various dealers to facilitate the distribution
of its products. The Company has a team of experienced technicians, hydraulic
engineers and marketing personnel to assist the customers in selecting the
right pipes and providing after sales service.
Diversified
Product Mix
The Company has a product mix to cater to the increasing requirements of
its customers. Its product offerings include PVC Pipes, PVC fabricated
fittings, PVC casing and screen pipes, ASTM plumbing pipes and fittings, LLDPE
pipes and fittings, HOPE pipes and fittings, SWR Pipes and Fittings, Moulded
Fittings and elastomeric sealing pipes. These ranges of product are used in
irrigation sector, industrial sector, infrastructure and housing sector. The
Company believes that this range of products would allow its existing customers
to source most of their product requirements from a single vendor and also
enable it to expand their business from existing customers, as well as address
a larger base of potential new customers.
Flexible and
Scalable Production Facilities
The Management believes that the flexibility and scalability of the
Company's existing production facilities will help it to meet increased demand
for its products. The scalability of the Company's existing facilities enables
it to increase its production capacity through the installation of new
equipment and production lines. For example, the Company can increase the
capacity to produce PVC pipes and fiitings by upgrading critical equipment such
as screws/barrels and gear boxes, or if greater capacity enhancement is
required, by adding new extruders. The Company's flexible manufacturing
facilities enable it to produce a wide range of products with different
specifications, such as PVC / PE pipes with different diameters and working
pressure ranges and processed and dehydrated fruits and vegetables using
different organic feedstock. This flexibility assists the Company in meeting
the specific demands of its customers and reducing the impact of seasonal
changes in production volumes for specific products.
Experienced Management
Team
The Company has a management team with experience in different areas of
PVC pipes and fittings industry including production, quality control, sales,
marketing and finance. The management team is supported by workforce who has
deep experience in the industries in which it operates.
The Company's management team includes Managing Director, Mr. Pradip J.
Mundhra who has over 21 years of experience in the plastic industry and Mr.
Sanjay R. Taparia, who has 20 years of experience in trading and marketing of
PVC pipes and fittings. The management team also has long-standing
relationships with many of the major customers, distributors/dealers and
suppliers. Further, the Company has a strong local sales force, which together
with the management team gives the Company an excellent understanding of the
needs of the domestic
customers.
Future Strategic
Directions
Government allocation for Irrigation segment on the rise
Few years back, the Indian government initiated an Accelerated
Irrigation Benefit Programme (AIBP) to propel irrigation growth in
Assessing the need and potential of Micro/Drip Irrigation (Ml) in
The surface method of irrigation is the oldest and most widely used
method wherein a stream is diverted from the source to the field through
furrows and borders, allowing it to flow across the slope by gravity. However,
over 60-70% of the water released from the source is lost on the way due to
evaporation, seepage and conveyance losses, thus achieving only 30-40% water
efficiency. Conversely, Ml techniques like sprinklers and drip irrigation are
more efficient. Drip irrigation has achieved 80-90% efficiency levels.
The need of the hour is not only to economize water usage in agriculture
but also to bring more land under irrigation, reduce costs of irrigation and
increase the yield per unit area. Micro Irrigation techniques offer a solution
to these issues and indirectly also helps to reduce costs and improve
productivity.
The Drip irrigation technique, on account of the controlled application
of water, helps to maintain the soil moisture close to the field capacity thus
aiding growth and yield. The favorable growing condition aided by drip
irrigation helps crops mature earlier than the traditional methods. Substantial
increase in yield has been witnessed in different crops using drip irrigation.
Drip irrigation not only aids improvement in yield, but also helps
reduce usage of fertilizers and saves water. High crude oil prices and reliance
on fertilizer imports has been burdening the government on account of the high subsidies
extended to the Fertilizer sector. Given the recent surge in crude oil prices
leading to higher fertilizer prices, the fertilizer subsidy is envisaged at
around Rs.1,200,000 millions. Hence, higher acreage in
Increasing importance of irrigation, and the potential and need of micro
irrigation in the country has seen us to gearing up to capitalize and meet the
challenges of the unfolding opportunity in this space.
Roof Water
Harvesting
In
Expansion of product range
The Company's existing product portfolio comprises of PVC pipes and
fittings, Moulded fittings, PVC casing and screen pipes(CMC Pipe), ASTM
plumbing pipes and fittings, elastometric sealing pipes, LLDPE pipes and
fittings, HOPE pipes and fittings, Sprinkler Systems, Drip irrigation System
and SWR pipes and fittings. The Company further plans to expand its product range
by venturing into the manufacturing of CPVC pipes, Column submersible pipes,
flat inline drip irrigation system, mini sprinkler, soluble fertilizer, crates,
chairs, furniture and brass fittings.
Increasing geographical reach
The Company plans to increase its customer base in its existing domestic
markets and expand its business to new geographic locations viz. Gujarat,
Assam, Delhi, Uttar Pradesh, Uttranchal, Punjab, Haryana, Karnataka, interiors
of West Bengal etc. The Company plans to do this by utilising its marketing
skills and further expanding customer satisfaction by meeting orders in hand on
timely basis and maintaining its client relationships.
Expansion of customer base
The Company intends to cater to its customers in the macro-irrigation
sector, sprinkler irrigation, lift irrigation and construction sector by
expanding its product range in HOPE pipes, LLDPE pipes and injection-moulded
items.
Strengthen Relationship with Clients
The Company believes in maintaining long term relationships with its
clients. The Company endeavors developing relationship with its clients not
only in terms of increased sales but also in terms of varied offerings in the
Company's product mix. The Company aims to achieve this by adding value to its
client service through quality, speed and reliability of its product delivery
and resolution of various customer queries and complaints.
Maintaining cost competitiveness
The Company seeks to be a cost-competitive, high quality producer and is
focused on maintaining its cost competitiveness in the domestic market. There
are plans to further increase productivity and production while reducing costs
by continuing to invest in new equipment, improving the material management
system to minimize wastage and production losses, improving the working capital
cycle to reduce the interest costs, refinancing the higher cost debt with lower
interest debt and exploring ways to use the waste produced etc.
Focus on liquidity and reduction of finance cost
With growing businesses, not only in value and volume terms, but also
geographically, managing finance is becoming more and more critical. On a
continuous basis the Company is focused on having the limits and facilities
available to fund their future growth plan. They are equally focused on
bringing their interest cost down by changing the borrowing mix in line with
change in the market dynamics.
Financial and
Operating Performance:
The total income of the Company for the year 2009-10 was Rs. 1106.696
millions compared to Rs. 808.765 millions during the previous year i.e. an
increase of 36.84% (Previous year 22.93%). The operating profit (PBDIT) for the
Company has increased to Rs.169.404 millions during the year as against Rs.
69.154 millions for the previous year i.e. increase by 144.96% (Previous
year-26.02%), mainly because of recovery from the recession which has rattled
the global economy during 2008-09. The earning per share(EPS) has improved from
Rs. 1.01 per share to Rs. 5.03 per share during current financial year. The
Company expects to earn further increased revenues in the near future. The
overall capacity utilization has decreased from 67.73% to 54.26% because of
installation of new products divisions, unusual power cuts, frequent moulds/die
head changes leading to loss of effective production hours etc.
The Company's working capital facilities with the banks have increased
during the year from Rs. 380.000 millions to Rs. 480.000 millions. In the
prevailing circumstances, the Company has managed the interest cost reasonably
well. The Company enjoys excellent relations with its Bankers and has been able
to negotiate various banking facilities favourably. The Company has also
availed during the year a term loan of Rs. 189.000 millions from Punjab National
bank and equipment lease financing from L and T Finance Ltd. to the tune of Rs.
20.000 millions.
The interest cost for the year is on higher side in absolute terms. The
net interest charges increased by 52.08% in the current year as compared to previous
year, mainly due to increase in interest rates, long term raised for growth
capex, increase in working capital utilization for growth etc.
The increase in debtors is commensurate to increase in sales. Net sales
in last quarter was about 35% of total sales for the year. Sundry debtors in
terms of number of days sales has gone up to 143 days as compared to 124 days
in previous year in spite of change in product mix e.g. higher sales mix of
Micro Irrigation in total sales which has longer collection cycle compared to
other products. The Company is planning for bill discounting and incentive
schemes to improve efficiency in receivable holding in next financial year.
CONTINGENT
LIABILITIES :
Contingent
Liabilities not provided for:
(Rs. in millions)
|
Particulars |
31.03.2010 Rs.
In Millions |
31.03.2009 Rs.
In Millions |
|
Bank Guarantee |
2.810 |
0.700 |
|
Capital Contracts remaining to be executed |
15.000 |
25.000 |
|
Claims not acknowledged as debts including show cause demand notice in
relation to excise and consumer court forum. |
9.783 |
0.162 |
|
Disputed Income tax Demands |
18.483* |
0.000 |
*Rs. 7.400 millions have already been deposited till March 31, 2010 and
the matter is subjudice with Appellant Authorities.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 31.12.2010
|
Particulars |
Quarter Ended 31.12.2010 [Rs. in millions] |
|
Income |
|
|
a) Net Sales / Income from Operations |
352.109 |
|
b) Other Operating Income |
1.872 |
|
Total Operating Income |
353.981 |
|
Expenditure |
|
|
(a) (Increase)/decrease in Stock in Trade |
[139.924] |
|
(b) Consumption of Raw Materials |
348.864 |
|
(c) Purchase of traded goods |
40.958 |
|
(d) Employees Cost |
24.019 |
|
(e) Administrative Expenses |
35.729 |
|
(f) Depreciation |
7.917 |
|
Total Expenditure |
317.563 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
36.418 |
|
Other Income |
0.000 |
|
Profit/(Loss) before Interest and Exceptional items |
36.418 |
|
Interest |
31.401 |
|
Profit / (Loss) after interest before Exceptional items |
5.017 |
|
Exceptional Items |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
5.017 |
|
Provision for Taxation |
|
|
- Current |
1.000 |
|
- Differed |
[0.876] |
|
- Fringe benifit Tax |
3.267 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
1.625 |
|
Extraordinary Items |
0.000 |
|
Net Profit/(Loss) for the period |
1.625 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
249.951 |
|
Reserves (Excluding Revaluation Reserves) |
0.000 |
|
Public Share
Holding |
|
|
Before
Extraordinary Items |
|
|
-Basic and Diluted |
0.08 |
|
After Extraordinary Items |
|
|
-Basic and Diluted |
0.08 |
|
Average of Public Share Holding |
|
|
- Number of Shares |
18644941 |
|
- Percentage of shareholding |
74.59% |
|
Promoters and Promoter group share holding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
|
b) Non-encumbered |
|
|
- Number of Shares |
6350159 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
25.41% |
UNAUDITED STANDALONE STATEMENT For Nine Months
Ended 31.12.2010
Rs. In Millions
|
Particulars |
Year
ended 31.03.2011 (Audited) |
|
Shareholder Funds |
|
|
a) Capital |
249.951 |
|
b) Reserve and Surplus |
1258.730 |
|
|
|
|
Loans Funds – Secured laon |
808.457 |
|
|
|
|
Deferred tax liability (Net) |
29.159 |
|
Total |
2346.297 |
|
|
|
|
Net Fixed Assets (including CWIP) |
675.935 |
|
|
|
|
Investments |
21.949 |
|
|
|
|
Current assets, loans and advances |
|
|
a) Inventories |
608.063 |
|
b) Sundry Debtors |
673.565 |
|
c) Cash and Bank Balances |
338.293 |
|
d) Loans and Advances |
159.747 |
|
|
|
|
Less: Current Liabilities and Provisions |
|
|
a) Liabilities |
157.827 |
|
b) Provisions |
15.207 |
|
|
|
|
Miscellaneous Expenditure (not written off or adjusted) |
41.779 |
|
Total |
2346.297 |
Notes:
1. The un-audited
results were reviewed by the audit committee and approved by the Board of
Directors in their respective meetings held on January 31, 2011.
2. The
results are subject to limited review by the statutory auditor.
3. The issue proceeds
have been utilized for the issue objects as per the following details:
|
(Rs.
In lacs) Sr. No. |
Particulars |
31.12.2010 |
31.03.2010 |
||
|
1.
|
Expansion
of Manufacturing Facilities: - Acquired
– Capital
work in Progress including advance |
129.746 131.370 |
124.494 131.370 |
||
|
2.
|
Meeting
Long term working capital requirements including General Corporate Purpose |
154.230 |
159.482 |
||
|
3.
|
Purchase
of branch offices |
6.000 |
6.000 |
||
|
4.
|
Issue
Expenses |
63.154 |
63.154 |
||
|
Total |
484.500 |
484.500 |
|||
4. The provision for Income Tax has
been provided on Minimum Alternate Tax(MAT).
5. The previous year sales and purchases has been shown net of
all tax including excise duty and corresponding effect of Rs. 49.166 millions
(Previous Qtr 31.12.09- Rs. 13.903 millions) has been made in previous year
figures to make the figures comparable with current year.
6. The Company has not provided for employee benefit as the
company follows the practice of accounting for the employee benefits as and
when paid. This is not in accordance with the Accounting Standard (AS) 15 on
“Employee Benefits” The liability towards gratuity premium will be made at the
end of year as per actuarial valuation.
7. The company has issued 12,500,000 equity shares of Rs.
10/- (Rupees Ten Only) each fully paid up at Rs. 10/- (Rupees Ten Only) per
share and premium of Rs. 44/- (Rupees forty four only) per share, as underlying
equity shares against 1,250,000 GDRs on August 23, 2010 and the total amount
raised by it was US$ 14.32 million or approx. INR 67.500 millions.
FIXED ASSETS :
- Air Condition
- Air Cooler
- EPBX
- Generator
- Vacuum
Cleaner
- Water Filter
- Weighing
Scale
- Weight &
Mgt.
- Welding
Machine
- Xerox Machine
- Chilling
Plant
- Cooling Tower
- ISI Testing
Equip.
- Machinery
- Magnet
- Water Pump
- Bore well
- Cycle
- Electric
Installation
- Fridge and TV
- Geyser
- Still Camera
- Type Writer
- Furniture
- Office
Equipment
- Water Heater
- DVD Player
- Fan
- Fax Machine
- Moulds
- Guest House
- Truck
- Car
- Vehicles
(2Wheeler)
- Computers
Software
- Factory Shade
- Goodwill
- Land
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.72.59 |
|
Euro |
1 |
Rs.64.01 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.