MIRA
INFORM REPORT
|
Report Date : |
07.03.2011 |
Note:
The corporate office of the company has been
shifted from 418/422 Creastive Industrial Estate, 72 1 M Hisgu, Narg Mumbai-100011,
IDENTIFICATION DETAILS
|
Name : |
BALKRISHNA INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
H-3/1, M.I.D.C., 'A' Road, Tarapur, Boisar - 401 506, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
20.11.1961 |
|
|
|
|
Com. Reg. No.: |
11-12185 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1961PLC012185 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB11319A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB3333J |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Paperboards, Tyres and Tubes and Synthetics. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 26431000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
H-3/1, M.I.D.C.,
'A' Road, Tarapur (Boisar), Thane - 401 506, |
|
Tel. No.: |
91-22-66663800 |
|
Fax No.: |
91-22-66663898 |
|
Email : |
|
|
Website: |
|
|
|
|
|
Corporate
Office: |
BKT House, C Wing, 15th Floor, Trade World,
Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400
013, Maharashtra, India |
|
Tel No.: |
91-22-66663800 extension 836/ 237 |
|
Fax No.: |
91-22-66663898 |
|
|
|
|
BKT ( |
BKT Europe Srl. Via Cesare Battisti, 42/A, 20057 Vedano AI
Lambro (MI) |
|
Tel No.: |
+39-039-2490128 |
|
Fax No.: |
+39-039-2492100 |
|
|
|
|
BKT ( |
BKT ( 15, Marlpit lane, Sutton Coldfield, |
|
Tel/ Fax No.: |
+44-121-6814241 |
|
Mobile No.: |
+44-79577-30529 |
|
|
|
|
BKT ( |
BKT- Tires, |
|
Tel No.: |
+1 -330-2521090 |
|
Toll Free |
+ 1- 888- 6600662 |
|
Fax No.: |
+ 1-330- 2521081 |
|
|
|
|
Plant: |
B-66, MIDC Industrial Estate, Waluj Industrial Area, SP-923, RIICO, Phase
III, Post Office Bhiwadi – 301 019, District Alwar, Rajasthan RIICO, Phase VIII, Chopanki, P.O. Bhiwadi, 301 109 Dist. Alwar. Rajasthan Wind Farm: Village Soda And
Mada, Tehsil, Fatehgarh, District Jaisalmer, Rajasthan Mould Plant: Plot No. TS-1, M.I.D.C, Phase No. II,
Dombivali (East), District Thane - 421 201, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Dharaprasad
R. Poddar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Arvind M.
Poddar |
|
Designation : |
Vice Chairman and
Managing Director |
|
Qualification: |
B.Com |
|
Date of
Appointment: |
01.08.2006 |
|
|
|
|
Name : |
Mr. Anurag Poddar |
|
Designation : |
Executive
Director (w.e.f. 22nd January, 2009) |
|
|
|
|
Name : |
Mr. Rajiv Poddar |
|
Designation : |
Executive
Director (w.e.f. 22nd January, 2009) |
|
|
|
|
Name : |
Mr. Sachin Nath
B. Chaturvedi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Subhashchand
Mantri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rameshkumar D. Poddar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Khurshed Doongaji |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Laxmidas
Merchant |
|
Designation : |
Director (w.e.f.
22nd January, 2009) |
|
|
|
|
Name : |
Mr. Ashok M.
Saraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rakesh N. Garodia (up to 28th
May, 2010) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay Asher |
|
Designation : |
Director (w.e.f 29th May, 2010) |
|
|
|
|
Name : |
Mr. Basantkumar
Bansal |
|
Designation : |
Whole Time
Director (w.e.f. 26th July, 2008) |
|
|
|
|
Management
Committee : |
Mr. Dilip M
Vaidya – Director (Technical) Mr. Rajiv Poddar Mr. Anurag Poddar
Ms. Khushboo
Poddar Mr. Basantkumar
Bansal |
KEY EXECUTIVES
|
Name : |
Mr. Vipul R. Shah |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Basant G
Bansal |
|
Designation : |
Chief Financial
Officer |
|
Qualification: |
B.Com, ACA |
|
Date of
Appointment: |
01.07.2002 |
|
|
|
|
Name : |
Mr. Madhusudan B
Bajaj |
|
Designation : |
Senior Vice
President (Technology) |
|
Qualification: |
B.Com, FCA |
|
Date of
Appointment: |
01.07.2002 |
|
|
|
|
Name : |
Mr. Anant V
Pandit |
|
Designation : |
Senior Vice
President (Technology) |
|
Qualification: |
B.Sc., B.Tech,
LPR |
|
Date of
Appointment: |
20.02.2003 |
|
|
|
|
Name : |
Mr. Kallol Sinha
Ray |
|
Designation : |
Senior Vice
President (Operations and Unit Head) |
|
Qualification: |
B.Sc. B.Tech |
|
Date of
Appointment: |
22.05.2006 |
|
|
|
|
Name : |
Mr. Shmbhu N
Dutta |
|
Designation : |
Senior Vice
President (Marketing) |
|
Qualification: |
B.Sc. PGDM |
|
Date of
Appointment: |
04.05.2004 |
SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
52,551,240 |
54.37 |
|
|
270 |
- |
|
|
52,551,510 |
54.37 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
52,551,510 |
54.37 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
15,656,430 |
16.20 |
|
|
2,000 |
- |
|
|
13,737,411 |
14.21 |
|
|
29,395,841 |
30.41 |
|
|
|
|
|
|
2,172,449 |
2.25 |
|
|
|
|
|
|
6,828,379 |
7.06 |
|
|
5,422,930 |
5.61 |
|
|
287,486 |
0.30 |
|
|
286,486 |
0.30 |
|
|
1,000 |
- |
|
|
14,711,244 |
15.22 |
|
Total Public shareholding (B) |
44,107,085 |
45.63 |
|
Total (A)+(B) |
96,658,595 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
96,658,595 |
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 : |
Manufacturing of
Paperboards, Tyres and Tubes and Synthetics. |
||||||||
|
|
|
||||||||
|
Products : |
Ř Paper / Paper Boards Ř Fabrics Ř Tyres Ř Tubes Ř Ř P L 801 -
Pneumatic Forklift / Material Handling Tyres Ř Skid Power H D
|
||||||||
|
|
|
||||||||
|
Exports to: |
v
v
U.S.A v
|
PRODUCTION STATUS (31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Tyres |
Nos. |
49.45 lacs |
39.40 lacs |
1883386 |
|
|
Nos. |
N.A. |
3.79 Lacs |
80727 |
|
Wind Power Generation (Captively consumed)
|
KWH/ Units |
N.A. |
5 MW |
7029984 |
GENERAL INFORMATION
|
No. of Employees : |
300 |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
v
Bank of v
Central Bank of v
State Bank of v State Bank of Travancore, Mumbai v Corporation Bank v ING Vysya Bank v Deutsche Bank AG, Mumbai v ABN Amro Bank v Standard Chartered Bank v Barclays Bank PLC v
State Bank of v IndusInd Bank v
The Royal Bank of |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
I Working
Capital Loans from Banks: Cash Credits,
Packing Credit, Bills Discounting and Buyers Credit: Secured by first
charge by way of hypothecation of stock of raw materials, stores and spares,
stock in process, finished goods, material in transit, book debts and other
movables on pari-passu basis and further secured by second charge on fixed
assets of the Company, both present and future, except certain fixed assets
on which exclusive charge created in favour of G.E. Capital Services India. II Term Loans
from Bank: Secured by
hypothecation by way of parri-passu charge on the all present and future
movable assets of the Company situated at Chopanki. Waluj and Bhiwadi units. III Term Loans
from Others a) DEG -
Deutsche Investitions-und Entwicklungsgesellschaft mbH Secured by
pari-passu first charge on entire fixed assets of the Company, situated at
Bhiwadi and Chopanki units and Wind farm at Jaisalmer, all in the state of
Rajasthan. b) G.E. Capital
Services India (In the previous year) Secured by exclusive first charge by
way of hypothecation of specific machineries purchased out of the proceeds of
the said loan.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
Jayantilal Thakkar
and Company Chartered
Accountants |
|
|
|
|
Internal Auditor : |
Dilip A. Jain and
Associates Chartered
Accountants |
|
|
|
|
Subsidiaries : |
v
Balkrishna Paper Mills Limited (100%) v
Balkrishna Synthetics Limited (100%) v
BKT Tyres Limited (80%) v
BKT Exim Limited (100%) Indirect
Subsidiary Companies Subsidiary Companies of BKT Exim Limited; i.e. BKT (EUROPE) Limited BKT EUROPE S.R.L and BKT ( |
|
|
|
|
Group Companies : |
Companies v
S.P. Finance and Trading Limited v
Balgopal Holdings and Traders Limited v
Vishal Furnishings Limited v
Poddar Brothers Investment Private Limited v
Sanchna Trading and Finance Limited v
SP Investrade ( v
SPG Realty Private Limited v
Poddar Bio-Diesel Private Limited v
Oxemberg Clothing Limited v
Siyaram Polycote Limited v
Oxemberg Fashions Limited v
Beetee Textile Industries Limited v
Santigo Textile Mills Private Limited v
Balkrishna Paper Mills Limited v
Balkrishna Synthetics Limited v
BKT Moulds Limited v
BKT Tyres Limited v
BKT Exim Limited v
SPG Power Limited v
SPG Infrastructure Limited v
Futuristic Concept Media Limited v
Seeom Fabrics Limited v
Paramount Minerals and Chemicals Limited v
Image Commercials Private Limited v
GRL International Limited v
Govind Rubber Limited v
Siyaram Silk Mills Limited v
Trendline Commercials Private Limited v Wavelink
Commercials Private Limited Partnership
Firms v
Fabwear Garment v
Tirupati Realty v
Balaji Realty v Shree Siyaram
Textiles |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
19331719 |
Equity Shares |
Rs.10/- each |
Rs.193.317
millions |
|
|
|
|
|
Of the above Shares:
i) 1,68,73,160 Equity Shares were allotted as fully paid up, by way of Bonus Shares by capitalization of Share Premium Account and General Reserve.
ii) 97,560 Equity Shares were allotted as fully paid up on conversion of convertible portion of partly convertible Debentures.
iii) 7,60,999 Equity Shares were allotted as fully paid up on conversion of Foreign Currency Convertible Bonds-FCCB.)
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 |
193.317 |
193.317 |
193.317 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6414.437 |
4484.960 |
3917.668 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6607.754 |
4678.277 |
4110.985 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2642.676 |
3310.905 |
3549.183 |
|
|
2] Unsecured Loans |
2000.606 |
1417.203 |
1799.244 |
|
|
TOTAL BORROWING |
4643.282 |
4728.108 |
5348.427 |
|
|
DEFERRED TAX LIABILITIES |
548.118 |
523.871 |
429.491 |
|
|
|
|
|
|
|
|
TOTAL |
11799.154 |
9930.256 |
9888.903 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6148.834 |
5345.550 |
4244.639 |
|
|
Capital work-in-progress |
588.700 |
747.170 |
1274.227 |
|
|
|
|
|
|
|
|
INVESTMENT |
807.265 |
322.258 |
341.070 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2030.526
|
1222.577
|
1864.801
|
|
|
Sundry Debtors |
2403.040
|
2190.811
|
1950.336
|
|
|
Cash & Bank Balances |
42.279
|
111.389
|
86.912
|
|
|
Other Current Assets |
0.287
|
0.609
|
0.470
|
|
|
Loans & Advances |
3696.470
|
2783.127
|
2944.628
|
|
Total
Current Assets |
8172.602
|
6308.513
|
6847.147
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
843.369
|
611.073 |
1059.486
|
|
|
Current Liabilities |
305.676
|
235.930
|
|
|
|
Provisions |
2769.202
|
1946.232
|
1758.694
|
|
Total
Current Liabilities |
3918.247
|
2793.235
|
2818.180
|
|
|
Net Current Assets |
4254.355
|
3515.278
|
4028.967
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11799.154 |
9930.256 |
9888.903 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13869.596 |
12523.351 |
9913.761 |
|
|
|
Other Income |
264.386 |
49.148 |
145.430 |
|
|
|
TOTAL (A) |
14133.982 |
12572.499 |
10059.191 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing, Trading and Other Expenses |
10171.910 |
10553.461 |
7740.173 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
(28.048) |
|
|
|
TOTAL (B) |
10171.910 |
10553.461 |
7712.125 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3962.072 |
2019.038 |
2347.066 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
186.590 |
375.044 |
269.579 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3775.482 |
1643.994 |
2077.487 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
662.161 |
565.163 |
438.306 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3113.321 |
1078.831 |
1639.181 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1026.049 |
375.880 |
570.909 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2087.275 |
702.951 |
1068.272 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
658.561 |
585.878 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
208.728 |
494.609 |
NA |
|
|
|
Interim Dividend |
135.322 |
0.000 |
NA |
|
|
|
Proposed Final Dividend |
0.000 |
115.990 |
NA |
|
|
|
Tax on Dividend |
22.475 |
19.669 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
2379.311 |
658.561 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB Basis |
11792.933 |
10874.058 |
8410.648 |
|
|
|
Recovery towards Freight and Insurance on
Exports |
355.654 |
523.525 |
392.681 |
|
|
|
Recovery of Capital Expenditure |
6.791 |
2.478 |
0.000 |
|
|
|
Recovery towards |
4.437 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
12159.815 |
11400.061 |
8803.329 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5029.738 |
4058.231 |
3251.006 |
|
|
|
Stores & Spare Parts |
78.878 |
108.253 |
7.233 |
|
|
|
Capital Goods |
258.445 |
594.708 |
517.784 |
|
|
|
Traded Goods |
3.972 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
5371.033 |
4761.192 |
3776.023 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
107.97 |
36.36 |
54.61 |
|
|
|
- Diluted |
105.50 |
36.79 |
53.90 |
|
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
4576.300 |
4746.200 |
4950.000 |
|
Total Expenditure |
3706.500 |
3849.600 |
4098.600 |
|
PBIDT (Excl OI) |
869.800 |
896.600 |
851.400 |
|
Other Income |
4.90 |
82.100 |
14.600 |
|
Operating Profit |
874.700 |
978.700 |
866.000 |
|
Interest |
33.500 |
33.000 |
110.400 |
|
Exceptional Items |
0.0000 |
0.000 |
0.000 |
|
PBDT |
841.200 |
945.700 |
755.600 |
|
Depreciation |
179.000 |
186.400 |
189.800 |
|
Profit Before Tax |
662.200 |
759.300 |
565.800 |
|
Tax |
218.500 |
249.000 |
183.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
443.700 |
510.300 |
382.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
443.700 |
510.300 |
382.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
14.77 |
5.59 |
10.62
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
22.45 |
8.61 |
16.53
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.74 |
9.26 |
14.78
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.47 |
0.23 |
0.40
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.30 |
1.61 |
1.99
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.09 |
2.26 |
2.43
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, the world's premier manufacturer of pneumatic tyres for special
applications was incorporated on November 20, 1961. The company operates mainly
in the business segment of tires. They focus on the production of range of
off-highway tires that includes agricultural, industry, material handling,
forestry, lawn and garden, construction and earth moving tires. The company has
a worldwide distribution network ensuring extensive reach and penetration.
During the year 2002-03, the company acquired the Auto Tyre Plant of Govind
Rubber Limited at Bhiwadi in Rajasthan. During the financial year 2004-05, the
company launched Tractor Radial Tyres. The company expanded the production
capacity in Bhiwadi unit and Waluj unit to 42000 tpa and 18000 tpa
respectively. They also installed 5 MW Wind-Farm near Jaisalmer in Rajasthan
for captive usage. In February 2005, the company has set up a 100% subsidiary
company in
OPERATIONS:
The Company mainly
operates in one segment i.e. "tyres" with a focus on manufacture of
wide range of "Off-Highway Tyres". These specialty tyres are meant
for Agricultural, Industrial, Material Handling, Construction, Earthmoving
(OTR), Forestry, Lawn and Garden Equipments and All Terrain Vehicles (ATV). More
than 90% of their revenue is generated through exports.
In spite of severe
global economic slowdown during the last financial year, the Company has
registered an overall growth of over 12% in its revenue compared to previous
year i.e. Net Turnover and other Income from Rs.12570.000 millions To
Rs.14130.000 millions.
In terms of gross
margin, the year is considered to be one of the best years for the Company,
mainly due to the lower input cost and better foreign exchange realization. The
gross profit has increased from Rs.1640.000 millions to Rs.3780.000 millions -
a phenomenal growth of over 130%. The Company enjoyed the benefits of low input
cost for the first half of the financial year, after which it has started
firming up.
The Company
continues to enjoy the status of "STAR TRADING HOUSE".
CAPITAL
EXPENDITURE
During the year,
with a view to streamline the manufacturing process and improve overall
efficiency at its all the locations, the Company has incurred Capital
Expenditure of Rs.1330.000 millions. This covers investment in new premises for
the Company's corporate office.
To meet the
growing demand for "BKT" tyres and to be in line with Company's
vision to become a key player worldwide in the field of "Off-Highway
Tyres" the Company has decided to set up a Green Field plant near sea-port
at Bhuj in the state of
In order, to meet
the growing demand the Company also plans to incur capital expenditure of
Rs.1500.000 millions during 2010-11.
OUTLOOK FOR THE
CURRENT YEAR 2010-11:
Though the atmosphere
of recession and uncertainties is still looming large across the globe, the
company saw signs of improvement in its business in the third quarter of last
financial year and witnessed good growth in the last quarter of previous year.
The company is aiming at sustainable growth by expanding its base - through
developing new product lines, venturing into new geographies and deeper
penetration into existing markets. To augment this growth plan, the company has
announced a major capital expenditure plan to increase its production base,
which will be commenced during current financial year.
The down side to
the current financial year is an unprecedented increase in input costs - be it
raw materials, freight or power and fuel. This volatility is mainly driven by
speculation and supported by excessive liquidity in the market place. To
resolve this, the Company has initiated price increase of its products, however
it may not be sufficient to fully absorb the effects of input cost increase. In
view of this Company's margins are expected to be under severe pressure.
SUBSIDIARY
COMPANIES:
The company has
following subsidiary companies: Balkrishna Paper Mills Limited (100%),
Balkrishna Synthetics Limited (100%), BKT Tyres Limited (80%), BKT Exim Limited
(100%), and Indirect subsidiary Companies i.e. subsidiary Companies of BKT Exim
Limited; i.e. BKT (EUROPE) Limited, BKT EUROPE S.R.L and BKT (USA) INC.
DIRECTORS:
Shri Rakesh N.
Garodia, Director resigned from the Board of Directors w.e.f. 29th May, 2010.
Shri Garodia was member of the Board since 2003. Shri Garodia has extended
sincere and dedicated service into the Company. The Directors take on record
their sincere appreciation for the valuable services rendered by him during his
tenure with the Company.
Shri Sanjay K.
Asher has been inducted as an Additional Director w.e.f. 29th May, 2010. The
Company has received notice from one of the Shareholder proposing the name of
Shri Sanjay K. Asher as the Director of the Company.
Shri Sachin Nath
B. Chaturvedi, Shri Khurshed M. Doongaji, Shri Ashok M. Saraf and Shri
Basantkumar G. Bansal retire by rotation and being eligible, offer themselves
for reappointment. Necessary resolutions for their re-appointment are placed
before the Shareholders. The Directors commend the resolutions.
Contingent
Liabilities In Respect of:
|
Particulars |
31.03.2010 (Rs. in
Millions) |
|
a) Guarantees
given by the Company's bankers on behalf of the Company against the Company's
indemnity |
112.304 |
|
b) Premium payable
on redemption of Foreign Currency Convertible Bonds 'Series B' |
66.341 |
|
c) Disputed claims for excise, sales tax
and service tax |
104.707 |
|
d) Disputed income tax demands |
81.081 |
|
|
|
(The outflow in respect
of contingent liabilities is totally uncertain as the same depends on the final
outcome of the disputes, wherever applicable)
FIXED ASSETS
·
·
·
Buildings and Roads
·
Plant and Machinery
·
Factory, Office and Other Equipments
·
Electric Installations
·
Furniture and Fixtures
·
Vehicles
·
Air Conditioners
·
Computer Software
WEBSITE DETAILS:
PROFILE:
Part of well known industrial conglomerate in India, namely
“Siyaram-Poddar Group” with group turnover of US$ 550 million, BKT today is one
of the world’s leading manufacturers of “OFF-HIGHWAY TYRES”. BKT has the widest
product range containing more that 1700 SKU’s (Stock Keeping Units) and is “One
Stop Shop” for off-highway tyre solutions.
The success story of BKT, begun in 1995 when it entered into production of
cross ply off-highway tyres, With the help of persistent and intensive market
research coupled with ever expanding production capabilities, BKT has made its
mark in the niche segments like Agricultural, Construction, Industrial,
Earthmover, ATV (All Terrain Vehicle) and Turf care applications.
BKT is continuously developing its production base and has expanded its product
range significantly. With three manufacturing plants and one In-house Hi-tech
Mould-manufacturing facility at different locations in
About 95% of the tyre production is exported, out of which 70% is sold in
Talking about OEM's, BKT supplies its products to major OEM's across the globe
in construction segment and has also been successful in making inroads to the
Agricultural OEM market.
Today BKT has presence in more then 100 countries across the globe with a
vision to attain global leadership in off highway tyre solutions.
MILESTONES
2008
BKT has Launched Earthmax Tyre.
2007
65 series
90 series
Row Crop Tyres
2006
Launch of:
1) Flotation Radial Tyres, Chopanki Factory (Green Field Project)
2)
2005
Launch of 70 series Tractor Radial Tyres.
2003
1) Production of ATV, Lawn and Garden and
Earthmover Tyres.
2) Launch of: Tractor Radial Tyres (85 series) and
2002
Established Bhiwadi Factory (
2001
Production of Flotation and MPR Tyres.
1996
1) Commenced exports to Europe,
2) Expansion program with an investment of US $50 million.
1995
Production of Off Highway Tyres commenced.
1988
Research and Development
R and D is always at the forefronts of BKT and it spends about 5-6% of its revenue on research and development. Radial OTR and Agri-Radial Tyre Technology has been developed in-house.
“One of their company’s continuous commitments is to always expand their range
of products. This is possible only with incessant Research and Development.
Their in house R and D department works tirelessly to continuously add new
products to their range” says Mr. Arvind Poddar, vice chairman and M.D.
Subject develops over 150 new sizes every year coupled with a low turn around
time of 8 to 10 weeks for new product development. BKT has a dedicated team of
professionals, who carryout design and development of new products, as per
specific customer needs / market feedback.
Through constant market research to keep abreast of customer needs and
technological trends, intensive R and D to discover and develop new patterns,
designs and styles an
The latest tire testing facilities including endurance-testing backs up the
in-house quality assurance and testing program. BKT conducts indoor and
outdoors tests and all such tests are based on strict international
regulations. Further BKT's tire testing and evaluation experts also seek
constant feedback from the market, resulting in continuous improvement. Agrimax
65 series tyres are awarded ‘Innovative product’ certification by UNACOMA,
UNAUDITED
(STAND-ALONE) FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER,
2010
(Rs.
in millions)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
31.12.2010 (Unaudited) |
31.12.2010 (Unaudited) |
|
|
1. (a) Gross Sales |
4975.800 |
14363.400 |
|
(b) Net sales/ Income from Operations (Net of Excise/ Discounts/ Returns) |
4929.300 |
14230.400 |
|
(c) Other operating income |
20.700 |
42.100 |
|
Total Income |
4950.000 |
14272.500 |
|
2. Expenditure |
|
|
|
a) (Increase)/decrease in stock in trade and work in progress |
18.700 |
[114.300] |
|
b) Consumption of raw materials |
3003.600 |
8684.500 |
|
c) Purchase of Traded Goods |
43.900 |
159.400 |
|
d) Employee cost |
128.800 |
378.800 |
|
e) Depreciation |
189.800 |
555.200 |
|
f) Power and Fuel |
187.300 |
561.300 |
|
g) Other expenditure |
698.800 |
1923.600 |
|
h) Total |
4270.900 |
12148.500 |
|
3. Profit/ (Loss) from operations before other income, Foreign
Exchange Differences interest and Exceptional items (1-2) |
679.100 |
2124.000 |
|
4. Other income |
14.600 |
30.200 |
|
5. Net Exchange Difference (Gain)/ Loss (Note No.2) |
17.500 |
[10.000] |
|
6. Profit / (Loss) before interest and Exceptional items (3+4-5) |
676.200 |
2164.200 |
|
7. Interest/ Finance Charges (net) |
110.400 |
176.900 |
|
8. Profit / (Loss) after interest but before Exceptional items (6-7) |
565.800 |
1987.300 |
|
9. Exceptional items |
-- |
-- |
|
10. Profit/ (Loss) from Ordinary Activities before tax (8+9) |
565.800 |
1987.300 |
|
11. Tax Expenses |
|
|
|
- Current |
175.900 |
638.700 |
|
- Deferred |
7.800 |
12.500 |
|
12. Net Profit/ (Loss) from Ordinary Activities after tax (10-11) |
382.100 |
1336.100 |
|
13. Extraordinary Item (Net of Tax expenses Rs. Nil) |
-- |
-- |
|
14. Net profit/ (loss) for the period (12-13) |
382.100 |
1336.100 |
|
15. Paid up equity share capital (Face value of Rs.10 per share) |
193.300 |
193.300 |
|
Reserves (excluding revaluation reserves as per Balance Sheet of
previous accounting year) |
-- |
-- |
|
16. Earning Per Share (Rs.) (not annualized) |
|
|
|
a) Basic |
3.95 |
13.82 |
|
b) Diluted |
3.95 |
13.82 |
|
17. Public shareholding |
|
|
|
- Number of shares |
44107085 |
44107085 |
|
- Percentage of shareholding |
45.63 |
45.63 |
|
18. Promoter and
Promoter Group Shareholding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of
Shares |
Nil |
Nil |
|
- Percentage of
Shares (as a % of total shareholding of promoter & promoter group) |
Nil |
Nil |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
Nil |
Nil |
|
b)
Non-Encumbered |
|
|
|
- Number of
Shares |
52551510 |
52551510 |
|
- Percentage of
Shares (as a % of total shareholding of promoter & promoter group) |
100 |
100 |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
54.53 |
54.37 |
Notes:
1. The above Unaudited (Stand-alone) results as reviewed by the Audit
Committee have been approved by the Board of Directors at its meeting held on
29th January 2011. The Auditors 0f the Company have canted out the
‘Limited Review’ of the above results.
2. The exchange difference represents difference ix foreign exchange
rates on all foreign currency denominated accounts outstanding at the period
year end.
3. Segment reporting as required by AS-17 is not applicable as the
Company operates is one single primary business segment i.e. Tyres.
4. Pursuant to the resolution passed in the Extraordinary General
Meeting of the company held on 03.12.2010, equity shares of the company of Rs.
10/- each were sub-divided into 5 Equity shares of Rs. 2/- each with effect from 22.12.2010.
Accordingly, the basic and diluted Earning per share has been restated for all
the corresponding periods to give effect of sub-division of share in accordance
with Accounting standard 20 “Earning Per Share”
5. During the quarter, the company has repaid FCCB of $ 22 Millions
pursuant to its redemption of due date (i.e. 30.12.2010)
6. Interest and finance charges include Rs. 76.400 Millions paid as
cumulative Interest @ 1.5% p.a. on compounded basis on redemption of FCCB of $
22 Millions.
7. The implementation of green filed tyre plant and Bhuj is progressing
as per schedule.
8. The unprecedentae4d increase in raw material prices, particularly
natural rubber, has impacted profitability of the company adversely.
9. The details of number of Investor complaints for the quarter,
Beginning – Nil, Received-2, Disposed-2, Pending –Nil
10. Figures of the previous periods/ year have been re-groped/
re-classified wherever necessary.
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.73.24 |
|
Euro |
1 |
Rs.62.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.