MIRA
INFORM REPORT
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Report Date : |
05.03.2011 |
IDENTIFICATION DETAILS
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Name : |
SALGUTI INDUSTRIES LIMITED (w.e.f. 10.09.2006) |
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Formerly Known
As : |
SALGUTI PLASTICS LIMITED |
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Registered
Office : |
1-2-288/6/4, Domalaguda, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
20.10.1984 |
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Com. Reg. No.: |
01-005048 |
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CIN No.: [Company Identification
No.] |
L25209AP1984PLC005048 |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of All Types of Plastics Such as Woven Sacks,
Polyethylene and Polypropylene Tapes, Fabric
Multifilament and Monofilaments. |
RATING & COMMENTS
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MIRA’s Rating : |
B (30) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 438000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
1-2-288/6/4, Domalaguda, |
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Tel. No.: |
91-40-27635939 / 27603580 / 27630629 |
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Fax No.: |
91-40-27635939 / 27630629 |
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E-Mail : |
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Factory : |
Survey No. 310 And 311, Gollaplly (Village), Jadcharla (Mandal),
Mahaboobnagar, Andhra Pradesh – 509301, |
DIRECTORS
As on 29.09.2010
|
Name : |
Mr. Vishnuvardhan Reddy Salguti |
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Designation : |
Managing Director |
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Address : |
S/O S. Gopal Reddy 1-2-288/6/4, Domalguda, |
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Date of Birth/Age : |
24.04.1958 |
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Date of Appointment : |
20.10.1984 |
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DIN : |
00051641 |
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Name : |
Mrs. Rajitha Reddy Salguti |
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Designation : |
Whole-time Director |
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Address : |
W/O S. Vishnuvardhan Reddy 1-2-288/6/4, Domalguda, |
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Date of Birth/Age : |
01.05.1962 |
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Date of Appointment : |
20.10.1984 |
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DIN : |
00051603 |
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Name : |
T.C. Karunkar |
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Designation : |
Additional Director |
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Address : |
B-5, Industrial Estate, Autonagar, Vijaywada, |
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Date of Birth/Age : |
11.01.1969 |
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Date of Appointment : |
0.1.12.2005 |
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Name : |
Mr. Gopal Reddy Salguti |
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Designation : |
Director |
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Address : |
S/O Late S. Butcha Reddy 1-2-288/6/4, Domalguda, |
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Date of Birth/Age : |
21.05.1932 |
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Date of Appointment : |
23.07.1992 |
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DIN : |
00051754 |
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Name : |
Mr. Velladi Ramakrishnan Vasudevan |
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Designation : |
Director |
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Address : |
S/O Late Dr. V.N. Ram Krishanan, Plot No.262, Kamalapuri Colony, |
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Date of Birth/Age : |
09.03.1937 |
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Date of Appointment : |
03.09.1992 |
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DIN : |
00093614 |
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Name : |
Mr. Mundla Lakshmikar Reddy |
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Designation : |
Director |
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Address : |
S/O Late M Navaneshwar Reddy, Plot No. 36, Navodaya Colony, Road No.
12, Banjarahills, |
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Date of Appointment : |
30.10.1999 |
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DIN : |
00493922 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 25.09.2010
|
Category |
Shares |
Percentage |
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Public Financial
Companies |
250000 |
3.32 |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
4000 |
0.05 |
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Bodies corporate |
2688475 |
35.67 |
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Directors or relatives of Directors |
1315350 |
17.46 |
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Other top fifty shareholders |
749975 |
9.95 |
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Others |
2528900 |
33.55 |
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Total |
7536700 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of All Types of Plastics Such as Woven Sacks, Polyethylene
and Polypropylene Tapes, Fabric
Multifilament and Monofilaments. |
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Products : |
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PRODUCTION STATUS AS ON (As on 31.03.2010)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Plastic Division |
M.T. |
5650.00 |
5533.96 |
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Textile Division |
M.T. |
1800.00 |
1290.00 |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
P Murali Mohana Rao Chartered Accountant |
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Address : |
6-3-655/2/3, Somajiguda, |
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PAN NO.: |
AAWPP7457L |
CAPITAL STRUCTURE
As on 27.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
12,000,000 |
Equity Shares |
Rs.10/-each |
120.000 million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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7,536,700 |
Equity Shares |
Rs.10/-each |
75.367 million |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
75.261 |
75.261 |
90.261 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
34.314 |
31.034 |
14.529 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
109.575 |
106.295 |
104.790 |
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LOAN FUNDS |
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1] Secured Loans |
281.340 |
266.519 |
260.300 |
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2] Unsecured Loans |
67.500 |
62.520 |
69.074 |
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TOTAL BORROWING |
348.840 |
329.039 |
329.374 |
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DEFERRED TAX LIABILITIES |
27.195 |
24.861 |
21.035 |
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TOTAL |
485.610 |
460.195 |
455.199 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
232.518 |
247.075 |
260.017 |
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Capital work-in-progress |
8.593 |
1.342 |
0.298 |
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INVESTMENT |
1.787 |
1.725 |
1.674 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
103.625
|
83.859 |
87.644 |
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Sundry Debtors |
136.037
|
129.068 |
115.287 |
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Cash & Bank Balances |
1.132
|
1.085 |
0.956 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
37.352
|
33.796 |
33.127 |
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Total
Current Assets |
278.146
|
247.808 |
237.014 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
34.045
|
37.602 |
44.972 |
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Other Current Liabilities and Provision |
5.135
|
4.524 |
3.827 |
|
Total
Current Liabilities |
39.180
|
42.126 |
48.799 |
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Net Current Assets |
238.966
|
205.682 |
188.215 |
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MISCELLANEOUS EXPENSES |
3.746 |
4.371 |
4.995 |
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TOTAL |
285.610 |
460.195 |
455.199 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
713.779 |
683.694 |
478.468 |
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Other Income |
2.176 |
11.959 |
13.351 |
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TOTAL (A) |
715.955 |
695.653 |
491.819 |
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Less |
EXPENSES |
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Cost of Goods Sold |
558.359 |
540.283 |
371.774 |
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Manufacturing, Selling and Administrative
Expenses |
98.920 |
92.838 |
78.913 |
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Miscellaneous Expenses Written Off |
0.624 |
0.624 |
0.624 |
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TOTAL (B) |
657.903 |
633.745 |
451.311 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
58.052 |
61.908 |
40.508 |
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Less |
FINANCIAL
EXPENSES (D) |
35.735 |
40.404 |
27.700 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
22.317 |
21.504 |
12.808 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
15.578 |
15.482 |
13.965 |
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PROFIT BEFORE
TAX (E-F) (G) |
6.739 |
6.022 |
(1.157) |
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Less |
TAX (I) |
1.126 |
0.633 |
0.000 |
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PROFIT AFTER TAX
(G-I) (J) |
5.613 |
5.389 |
(1.157) |
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|
Less |
Provision for
FBT |
0.000 |
0.058 |
0.066 |
|
|
Less |
Provision for
deferred income tax |
2.334 |
3.826 |
4.600 |
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|
Profit After
Deferred Income Tax and FBT |
3.279 |
1.505 |
(5.823) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
13.432 |
11.927 |
17.750 |
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BALANCE CARRIED
TO THE B/S |
16.711 |
13.432 |
11.927 |
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Earnings Per
Share (Rs.) |
0.74 |
0.20 |
(0.77) |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
182.560 |
213.790 |
204.680 |
|
Total Expenditure |
166.800 |
195.60 |
184.980 |
|
PBIDT (Excl
OI) |
15.760 |
18.190 |
19.700 |
|
Other Income |
0.000 |
0.150 |
0.020 |
|
Operating
Profit |
15.760 |
18.340 |
19.720 |
|
Interest |
9.850 |
10.590 |
11.030 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
5.910 |
7.750 |
8.690 |
|
Depreciation |
4.030 |
5.650 |
7.060 |
|
Profit
Before Tax |
1.880 |
2.100 |
1.630 |
|
Tax |
1.000 |
0.850 |
0.900 |
|
Reported PAT |
0.880 |
1.250 |
0.730 |
|
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 |
0.880 |
1.250 |
0.730 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.78
|
0.77 |
(0.24) |
|
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|
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Net Profit Margin (PBT/Sales) |
(%) |
0.95
|
0.88 |
(0.24) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.32
|
1.22 |
(0.23) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.06 |
(0.01) |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.54
|
3.49 |
3.61 |
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|
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Current Ratio (Current Asset/Current Liability) |
|
7.10
|
5.88 |
4.86 |
LOCAL AGENCY FURTHER INFORMATION
Rs. in million
|
No. |
Particulars |
Unaudited |
|
|
Quarter Ended
31.12.2010 |
Year to date
Figures 31.12.2010 |
||
|
1 |
Sales / income form operations |
204.676 |
601.028 |
|
2 |
Other income |
0.020 |
0.167 |
|
3 |
Total Expenditure |
|
|
|
|
Consumption in raw material |
157.218 |
467.194 |
|
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Staff cost |
9.379 |
26.188 |
|
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Other expenses |
18.385 |
54.002 |
|
4 |
Interest |
11.026 |
31.459 |
|
5 |
Depreciation |
7.060 |
16.742 |
|
6 |
Net profit/ (loss) after interest and depreciation |
1.628 |
5.610 |
|
7 |
Provision for taxation |
0.150 |
0.300 |
|
8 |
Deferred tax |
0.750 |
0.245 |
|
9 |
Net profit / (loss) |
0.728 |
2.860 |
|
10 |
Paid up Equity share capital (Face value of Rs.10/-each) |
75.261 |
75.261 |
|
11 |
Basic and Diluted EPS for the period
for the year to dated and for the previous year (not to be annualized) -- Basic EPS |
0.09 |
0.38 |
|
|
Agreegated of non-promoters shareholding Number of Shares Percentage of Shareholding |
3154600 45.68 |
3154600 45.68 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2009
|
Particulars |
31.12.2010 Quarter |
31.12.2010 6th Month |
|
Income (Net Sales / Income from each segment) |
|
|
|
a) Plastics |
157.813 |
462.427 |
|
b) Textiles |
46.863 |
138.600 |
|
b) Other |
0.000 |
0.000 |
|
Total Operating Income |
204.676 |
601.027 |
|
Less : Inter Segment Revenue Net Sales / Income Operations |
0.000 |
0.000 |
|
Net Sales / Income Operations |
204.676 |
601.027 |
- The above
unaudited results were taken on the record by the bard of directors at
their meeting held on 27.01.2011
- The company
received no request during the quarter ended 31.12.2010 from share holders
no complaints were pending at the beginning or end of the quarter.
- Figures for
the previous periods have been regrouped or reclassified to make the same
comparable with the current period figures.
- The above
results were reviewed by the audit committee and have been taken on record
by the board at its meeting held on 27.01.2011. Subject to limited audit
review by the statutory auditors.
Financial Results Review and Prospects :
Company’s sales turnover for 2009-2010 has
increased to Rs. 713.779 million form Rs.683.694 million recorded in 2008-09.
The profit before tax for the year stood at Rs. 6.739 million as compared to
the previous year’s level of Rs.6.022 million.
Management discussion and Analysis
Pursuant to clause of the listing agreement
management discussion and analysis report is given below :
Company’s product / services
- Plastic Division : The company manufacturing HDPE /PP Woven sacks for
packing of fertilizers and cement
- Textile division : The company manufacturing Cotton grey fabric for
garment and suiting and shirting suppliers
Industry Structure and development
Plastic Sector : Historically, only
metals were commercially available materials for use in demanding medical
application. Contemporary technology offers clear advantages over conventional
mode of production. Today, plastic is replacing metals in many medical devices.
Despite increasing acceptance of plastics by the industry. There is still
enormous scope for replacement of metal by performance plastics. These plastics
can provide various functional improvements at lower costs while meeting
biocompatibility requirements. Recent research in performance plastics shows
that there are newer materials. Which can withstand rough handling, multiple
cleaning, disinfection and sterilization cycles without significant loss of
properties. This also opens up new opportunities in single-use as well as
multi-use and reusable devices.
FIXED ASSETS :
- Land
- Building
- Plant and Machinery
- Electrical Equipment
- Furniture and Fixtures
- Computers
- Vehicles
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
L25209AP1984PLC005048 |
|
Name of the
company |
Salguti Industries
Limited |
|
Address of the
registered office or of the principal place of business in |
1-2-288/6/4,Domalaguda, |
|
This form is for |
Modification Of Charge |
|
Charge identification
(ID) number of the charge to be modified |
10034656 |
|
Type of charge |
|
|
Particular of
charge holder |
Andhra Bank, Sultan Bazar Branch, Koti, Email – Bmhydm0205@Andhrabank.Co.In
|
|
Nature of
instrument creating charge |
1. Composite Agreement 2. General Form Of Guarantee 3. Application To Open Irrevocable Documentary Credit 4. Confirmation Letters Regarding Deposit Of Title Deeds |
|
Date of
instrument Creating the charge |
03.09.2010 |
|
Amount secured by
the charge |
Rs.85.500 Million |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate Of Interest
- No Change In The Existing Terms And Conditions Terms Of
Repayment - No Change In The Existing Terms And Conditions ( However The
Fresh One Time Additional Flc Limit Of Rs.3.700 million Will Be Repaid Within
90 days) Margin - No
Change In The Existing Terms And Conditions (However The Fresh One Time
Additional Flc Limit Of Rs.3.700 million Sanctioned With 10% Cash Margin. Extent And
Operation Of The Charge - The Existing Limit Of Rs.81.800 million -Further
Enhanced To Rs.85.500 million (Fresh One Time Additional Flc Limit Of
Rs.3.700 million)By Hypothecation Of Stocks Of Lc And Extention Of Equitable
Mortgage Of Deposit Of Title Deeds Already Pledged With The Bank. Except The
Above There Are No Other Changes In The Existing Terms And Conditions. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
The Existing
Limit Of Rs.81.800 million Further Enhanced To Rs85.500 million (Fresh One
Time Additional Flc Limit Of Rs.3.700 million) By Hypothecation Of Stocks Of
Lc And Extention Of Equitable Mortgage Of Deposit Of Title Deeds Already
Pledged With The Bank. Except The Above There Are No Other Changes In The
Existing Terms And Conditions. |
|
Date of
instrument modifying the charge |
24/04/2009 |
|
Particulars of
the present modification |
The Existing
Limit Of Rs.81.800 million Further Enhanced To Rs.85.500 million (Fresh One
Time Additional Flc Limit Of Rs.3.700 million (Which Will Be Repaied In 90 Days)
By Hypothecation Of Stocks Of Lc And Extention Of Equitable Mortgage Of
Deposit Of Title Deeds Already Pledged With The Bank. Except The Above There
Are No Other Changes In The Existing Terms And Conditions. |
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.73.23 |
|
Euro |
1 |
Rs.62.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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.