MIRA INFORM REPORT

 

 

Report Date :

15.03.2011

 

IDENTIFICATION DETAILS

 

Name :

GMM PFAUDLER LIMITED (w.e.f. 09.09.1963)

 

 

Formerly Known As :

GUJARAT MACHINERY MANUFACTURERS

 

 

Registered Office :

Vithal Udyog Nagar, Karmsad-388325, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

17.11.1962

 

 

Com. Reg. No.:

04-001171

 

 

CIN No.:

[Company Identification No.]

L29199GJ1962PLC001171

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMG00528D

 

 

PAN No.:

[Permanent Account No.]

AAACG6977D

 

 

Legal Form :

A Public Limited Liability company. The company’s shares are listed on Stock Exchange.

 

 

Line of Business :

Manufacturers of Reactor Glass Line Reactors.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (61)

 

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 3677804

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealing 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)

India

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/ Factory :

Vithal Udyog Nagar, Karmsad-388325, Gujarat, India

Tel. No.:

91-2692-230516/ 230367

Fax No.:

91-2692-236570

E-Mail :

corporate@gmmpfaudler.co.in

worksko@gmmpfaudler.co.in

Website :

http://www.gmmpfaudler.com

Location :

Owned

 

 

Corporate Office/ Mumbai Sales Office :

1001, Penisula Towers, Pe ninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013, Maharashtra, India

Tel. No.:

91-22-66503900

Fax No.:

91-22-66503939

E-Mail :

sales@gmmpfaudler.co.in

 

 

Regional Offices :

Located at:

 

·         New Delhi

·         Chennai

·         Ahmedabad

·         Hyderabad

·         Bangalore

·         Vadodara

 

 

DIRECTORS

 

AS ON 31.03.2010

 

Name :

Mr. P Krishnamurthy

Designation :

Chairman cum Managing Director

 

 

Name :

Mr. Ashok J Patel

Designation :

Managing Director

 

 

Name :

Mr. Peter C Wallace

Designation :

Director

(President and Chief Executive Officer, Robbins and Myres Inc.)

 

 

Name :

Mr. Kevin J Brown

Designation :

Director

(Controller and Principal Accounting Officer, Robbins and Myres Inc.)

 

 

Name :

Dr. S Sivaram

Designation :

Director

(Director, National Chemical Laboratory, Pune)

 

 

Name :

Mr. Darius C Shroff

Designation :

Director

 

 

Name :

Mr. Tarak A Patel

Designation :

Executive Director – Sales and Marketing

 

 

Name :

Mr. Christopher M. Hix

Designation :

Alternate to Kelvin J Brown

 

 

KEY EXECUTIVES

 

Name :

Mr. Ashok C Pillai

Designation :

Chief Operating Officer

 

 

Name :

Mr. Amar Nath Mohanty

Designation :

Financial Controller

 

 

Name :

Ms. Mittal Mehta

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2010

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of promoter and Promoter Group

 

 

1) Indian

 

 

a) Individuals / Hindu Undivided Family

1310155

8.96

b) Bodies corporate

2036480

13.93

 

 

 

Any Others (Specify)

 

 

Trusts

253125

1.73

 

 

 

2) Foreign

 

 

Bodies corporate

7454400

51.00

 

 

 

(B) Public Shareholdings

 

 

1) Institutions

 

 

a) Financial Institutions/Banks

658

--

b) Insurance Companies

289350

1.96

 

 

 

2) Non – Institution

 

 

a) Bodies corporate

378649

2.59

 

 

 

b) Individuals

 

 

i. Individual Shareholders holding nominal share capital upto Rs.0.100 Million

1985662

13.58

ii. Individual Shareholders holding nominal share capital in excess Rs.0.100 Million

828350

5.67

 

 

 

c) Any other

 

 

i) Clearing Member

15820

0.11

ii) NRI

64835

0.44

 

 

 

Total

14617500

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Reactor Glass Line Reactors.

 

 

Products :

Product Description

ITC Code

Glasslined Equipments and Wiped film Evaporators

8419

Fluro-Polymer Products

390460

Nuitsche Filters

8421

 

 

Exports :

 

Products :

Reactor Glass Line Reactors

Countries :
  • USA
  • Germany

 

 

Imports :

 

Products :

Raw Material

Countries :
  • USA
  • Germany

 

 

Terms :

 

Selling :

L/C, Cash, Credit 

 

 

Purchasing :

L/C, Cash, Credit 

 

PRODUCTION STATUS AS ON 31.03.2010

 

Particulars

Unit

 

Installed Capacity

Actual Production
  • Autoclaves suitable for 3.5 atmosphere working pressure having capacity up to 10000 litres
  • Distilling plant varying in capacities form 100/1000 to 5000/10000 litres
  • Evaporating pans varying in capacity form 100 ltrs. To 20000 litres, crystallizing pressure filters, valves and condensers.

Litrs

6000

3487

 

 

 

 

 

·         Mild Steel equipments such as reaction vessels, storage tanks, fractionation towers, driers, heat exchangers, condensers, duting blenders and pressure vesslers

·         Stainless steel equipment such as reaction vessels, storage tanks, evaporating pans, absorption towers, fractionation towers,driers, heat exchangers, condensers, ducting blenders and pressure vessles

MT

*

417

 

 

 

 

 

Fusion seamed products and Isostatic moulded products consist of

  1. Carbon Steel PTFE Pipe
  2. Dip Pipe and sparger

Mtr. Nos.

 

7500

750

 

20

81

 

Notes:

 

  • Licensed capacity is not applicable in terms of Government of India’s Notification No. S.O.477 (E) dated 25th July,1991.
  • Installed capacities have been certified by the management of the Company and not verified by the auditors.
  • Installed capacities in respect of products not currently manufactured have not been given.
  • Production quantities in items 2 and 4 include job orders subcontracted to third parties and broad-banding of installed capacities.
  • The installed capacity of Mild Steel equipments and Stainless steel equipment is not determined and therefore not included in the above table.

 

GENERAL INFORMATION

 

Customers :
  • Alembic Limited, India
  • Hoechst Schering Agrevo Limited, India
  • Bayer India Limited, India
  • Cheminova India Limited, India
  • Chemplast Sanmar Limited, India
  • Cipla Limited, India
  • Colour-Chem Limited, India
  • Gharda Chemicals Limited, India
  • GE Plastics India Limited, India
  • Glaxo India Limited, India
  • Hindustan Inks and Resins Limited, India
  • Indian Organic Chemicals Limited, India
  • ICI India Limited, India
  • Emmellen Biotech Pharmaceuticals Limited, India
  • Manali Petrochemicals Limited, India
  • Novartis Enterprises Private Limited, India
  • Rallis India Limited, India
  • United Phosphorus Limited, India
  • Unichem Laboratories Limited, India
  • USV Limited, India
  • Wyeth Lederle Limited, India
  • Shinko Pantec, Japan
  • Synthomer Sdn Bhd, Malaysia
  • Glaxo Wellcome Manufacturing Private Limited, Australia
  • Globe Pharmaceuticals Limited, Bangladesh
  • Roche New Asiatic Vitamins Limited, China
  • General Electric Plastics, USA
  • General Electric Plastics, The Netherlands
  • Schering – Plough Limited, Singapore
  • Purolite International Limited
  • Hentiq 1799 Private Limited, South Africa
  • End Users

 

 

No. of Employees :

400 (In office 30 + In factory 370)

 

 

Bankers :

State Bank of India, Branch Anand, Gujarat, India

 

 

Facilities :

CC – Rs.200.000 Millions (Approximately)

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kalyaniwalla and Mistry

Chartered Accountant

Address :

Mumbai

 

 

Alternate Auditor Name :

Kantilal Patel and Company

Chartered Accountant

Address :

Ahmedabad

 

 

Unlimited Holding Company :

Robbins and Myers Inc.

 

 

Holding Company:

Pfaudler Inc.

 

 

Subsidiary Companies :

·         Karamsad Holdings Limited

·         Karamsad Investments Limited

·         GMM Mavag AG

·         Mavag AG

 

 

Fellow Subsidiaries :

·         Pfaudler Werke GmBh

·         Pfaudler Balfour Limited

·         Edlon PSI Inc.

·         Chemineer Inc.

·         Suzhou Pfaudler Glass Lined Equipments Company Limiteed

·         Robbins and Myres Singapore Private Limited

·         Glass Steel Parts and Services

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

25000000

Equity Shares

Rs. 2/- each

Rs.50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

14617500

Equity Shares

Rs. 2/- each

Rs.29.235 Millions

 

 

 

 

 

Of the above shares:

 

7454400 Equity Shares are held by Pfaudler Inc. USA, the holding company.

122400 Equity Shares have been issued for consideration other than cash.

8586500 Equity Shares have been issued as bonus shares, by cpaitalisation of reserves and share premium account.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Expected Sales (2010-2011) : Rs.1550.000 Millions

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

29.235

29.235

29.235

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

890.216

827.525

773.137

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

919.451

856.760

802.372

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

106.814

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

106.814

DEFERRED TAX LIABILITIES

33.272

37.545

37.607

 

 

 

 

TOTAL

952.723

894.305

946.793

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

280.522

295.455

293.776

Capital work-in-progress

7.732

4.189

4.264

 

 

 

 

INVESTMENT

119.477

111.981

89.552

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
404.172

464.588
457.875

 

Sundry Debtors
281.868

247.774
279.675

 

Cash & Bank Balances
30.435

29.132
17.112

 

Other Current Assets
0.000

0.000
0.000

 

Loans & Advances
206.791

215.737
229.153

Total Current Assets
923.266

957.231

983.815

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

191.878

193.453
180.326

 

Other Current Liabilities
167.189

262.266
224.266

 

Provisions
19.207

18.832
20.022

Total Current Liabilities
378.274

474.551
424.614

Net Current Assets
544.992

482.680
559.201

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

952.723

894.305

946.793

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1544.784

1466.810

1420.059

 

 

Other Income

27.022

35.223

53.700

 

 

TOTAL                                     (A)

1571.806

1502.033

1473.759

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Production

1100.494

1087.490

983.532

 

 

Operating Expenses

146.081

118.149

113.180

 

 

Selling, General and Administrative Expenses

118.074

93.216

109.894

 

 

TOTAL                                     (B)

1364.649

1298.855

1206.606

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

207.157

203.178

267.153

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

6.562

13.050

16.719

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

200.595

190.128

250.434

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

33.342

32.606

27.399

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

167.253

157.522

223.035

 

 

 

 

 

Less

TAX                                                                  (I)

56.677

55.248

67.452

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

110.576

102.274

155.583

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

538.837

494.675

402.577

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

11.058

10.227

15.600

 

 

Tax on distributed Dividend

6.956

6.956

6.956

 

 

Interim  Dividend

40.929

40.929

40.929

 

BALANCE CARRIED TO THE B/S

590.470

538.837

494.675

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

60.736

122.984

218.464

 

 

Commission Earnings

7.235

0.000

7.916

 

TOTAL EARNINGS

67.971

122.984

226.380

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

76.203

74.784

80.267

 

 

Stores & Spares

11.030

2.412

37.937

 

TOTAL IMPORTS

87.233

77.196

118.204

 

 

 

 

 

 

Earnings Per Share (Rs.)

7.56

7.00

--

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

289.480

325.730

380.400

 Total Expenditure

264.940

267.180

329.860

 PBIDT (Excl OI)

24.540

58.550

50.540

 Other Income

14.330

4.230

2.830

 Operating Profit

38.870

62.780

53.370

 Interest

2.540

1.640

2.000

 Exceptional Items

0.000

0.000

0.000

 PBDT

36.330

61.140

51.370

 Depreciation

8.130

8.840

8.760

 Profit Before Tax

28.200

52.300

42.610

 Tax

9.140

16.960

14.030

 Reported PAT

19.060

34.340

28.590

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

19.060

35.340

28.590

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
7.03

6.81
10.56

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
10.83

10.77
15.71

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
13.89

12.57
17.46

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.18

0.18
0.28

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
0.41

0.55
0.66

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
2.44

2.01
2.32

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

31.03.2008

Sundry Creditors

 

 

 

- Outstanding dues of micro, small and medium enterprises

0.665

7.759

5.979

- Other creditors

191.213

185.694

174.347

 

FINANCIAL REVIEW:

 

Sales and Other Income for the year at Rs.1571.810 millions reflected an increase of 4.6% over the previous year.  Profit before tax increased by 6.2% to Rs.167.250 millions from Rs.157.520 millions in the previous year. Profit after tax increased by 8.1% to Rs.110.580 millions over the previous year’s profit of Rs.102.270 millions. As a result, the earnings per share for the year increased to Rs.7.560 millions as compared to Rs.7.000 millions in the previous year. Effect of economic slow down inflation in the first half of the year had on adverse impact on the sales growth and profitability of the Company. However, second half of the year showed reasonable improvement both in sales and profitability. Decrease in the cost of basic raw material like Mild Steel and Stainless Steel Plates in the second half of the year had favorable impact on the profitability.

 

INVESTMENTS:

 

The Company had, in the year 2008, acquired Mavag AG of Switzerland, a leading supplier of highly engineered critical equipment for the pharmaceutical, bio engineering and fine chemicals industries. Both the Company and Mavag have progressed well in transfer of Mavag technology to the Company and sourcing of low cost components by Mavag from the Company. Mavag’s performance during the year was impacted due to the economic slow down in Europe, Mavag’s main market and the depreciation of Euro against the Swiss Franc. Mavag AG reported a loss of ` 13.13 million (CHF 292,332) for the year as against a profit of Rs.12.910 millions (CHF 284,117) in the previous year. The Board of Directors expects the European slowdown to continue during the current year with some improvement commencing in the second half of 2011.

 

The dispute regarding the registration of transfer of shares with Nile Limited has been settled and Nile ltd has transferred all the shares in the name of the Company (and its subsidiaries). These shares in Nile Limited will be disinvested by the Company and its subsidiaries within a period of 36 months other than through ‘block deals’. During the year the Company and its subsidiaries has sold 30,272 shares.

 

The Company’s current investment in mutual funds stood at a book value of Rs.46.670 million as at end of March 31, 2010. There were diminution of Rs.0.440 millions in the market value of these investments which has been provided for in the accounts during the year.

 

The Company has investments in equity shares of Skyline Millars Limited (formerly Millars India Limited) which are long-term investments and strategic in nature.

 

SUBSIDIARY COMPANIES:

 

The Company has four wholly owned subsidiary companies namely; Karamsad Holdings Limited, Karamsad Investments Limited, GMM Mavag AG and Mavag AG. The consolidated financial statements presented by the Company include financial information of its Subsidiaries prepared in compliance with applicable Accounting Standards.

 

The Ministry of Corporate Affairs, Government of India has granted exemption under section 212(8) of the Companies Act, 1956 from attaching the Balance Sheet, Profit and Loss Account and other documents of the Subsidiary Companies to the Balance Sheet of the Company. However the annual audited accounts of these subsidiaries will be me made available for inspection to the members of the Company, upon request, at the registered office of the Company.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT: 

 
COMPANY OVERVIEW:

 

The Company which was established in the year 1962, has a state of the art manufacturing facility spread over a 20 acre plot of land located at Karamsad in Gujarat State, about 45 km from Vadodara. The Company enjoys leadership position in design, manufacture and marketing of glass-lined reactor vessels, storage tanks, valves and pipe and fittings. The Company also undertakes design and fabrication of specialized chemical process equipment in Alloy steel. It has created for itself a niche position in the chemical process equipment market for proprietary products manufactured by it such as Agitated Nutsche Filters and Filter Dryers, Wiped Film Evaporators, EconoMix Mixing Systems, Thermal Control Units and PTFE lined pipes and fi ttings. Its access to the Mavag’s high end technology for top driven Spherical Dryers, Agitated Nutsche Filters and Filter Dryers for sterile applications and Magnetic Drive Agitators has complemented the Company’s position as a complete process solution provider for pharmaceuticals, bio pharmaceuticals, chemicals and allied segments.

 

INDUSTRY STRUCTURE AND DEVELOPMENT:

 

The Pharmaceutical, Agro-chemicals and Bio chemical Specialty Chemicals business which had witnessed a considerable slow down in past few years has begun to see growth. The pharmaceutical industry achieved above 15% growth during the year and is expected to continue the momentum. Further, India is becoming a base for contract manufacturing and research for the global market and is therefore expected to invest in capacity expansion in view of overall growing demand. This trend amongst these companies which represent a significant spread in our customer base, is expected to fetch attractive returns to the company in coming times.

 

OPPORTUNITIES and THREATS:

 

The growing domestic market and projected positive global trends provide an opportunity to the company to penetrate the market. Growing agro chemical, fertilizer, petroleum and Bio-technology industries is also expected to provide a boost to the capital goods industry and build the order book for coming times.

 

There is more interest in the overseas market for our equipment. We expect with the improvement in the global economy, our Company will be well poised to take advantage of the export markets. Fluctuations in steel prices, Government policy on pharmaceutical pricing and domestic inflationary economic conditions may hamper the industry’s growth in future.

 

FINANCIAL PERFORMANCE:

 

The market environment that had slowed in the past during picked up from the second quarter of the year which witnessed 117% growth over the proceeding quarter and was followed by third quarter that witnessed 43% growth on quarter to quarter basis. Average performance in fourth quarter and sluggish sales in first quarter of the year however had an adverse impact upon the overall performance of the company. The growth witnessed by the Pharmaceutical and Specialty Chemicals during the year helped the company in sustaining the strong built-up of order book which is expected to show better performance in the Glasslined business. The Company made significant improvement in its Mixing systems segment during the year. The increased focus on this segment along with the continued focus in the Glasslined products business enabled the Company to show moderate growth for the year.

 

Rise in labor charges and increased provision for doubtful debts and legal expenses including those incurred towards settlement of dispute with Nile Ltd. FOREX losses adversely impacted the year’s profit to some extent.

 

SEGMENT WISE OPERATIONAL PERFORMANCE:

 

Chemical Process Equipment

 

This Division of the Company designs manufactures and markets GMM Pfaudler Reactor Systems product line which primarily includes glass-lined corrosion resistant reactors, storage vessels and alloy steel equipment.

 

This Division reported sales of Rs.1279.300 millions; marginally more than that of previous year contributing 83% to the total sales of the company. This Division of the Company continues to enjoy the number one manufacturer of glass-lined equipment in India. The profit from this segment was Rs.185.890 millions a increase of about 12% over the previous year. The capital employed for this division was Rs.491.190 millions increased by over 5% from the previous year level.

 

Mixing System

 

This Division designs, manufactures and markets EconoMix Agitators which provide solutions to customer’s mixing requirements. In addition to serving the CPI this Division also caters to the biotechnology, mining and waste water treatment industry. Sales of this Division of the Company increased by over 96% to Rs.162.900 millions from Rs.83.100 millions in the previous financial year. The profit from this segment was Rs.18.440 millions a increase of more than 109% over the previous year. This segment was most affected by the rise in input cost of the drive systems. Capital employed for this Division was Rs.43.140 millions increased by over 183% from the previous year.

 

Filtration and Separation

 

This Division’s primary business is design, manufacture and marketing of Agitated Nutsche Filter and Filter Dryers for separation of solids and liquid and Wiped Film Evaporators for separation of liquids and liquids. Mavag’s high end technology and products have greatly benefited this Division. The Company reported a sales of Rs.102.590 millions, a marginal decline of 3.3% over previous year in this Division. Profits however were lower by 11.5% at Rs.7.100 millions. Capital employed for this Division was Rs.36.890 millions increased by 192% from the previous year.

 

OUTLOOK:

 

Demand for company’s product and services have shown encouraging signs as reflected by the increase in order intake during first quarter of the current financial year 2010 - 11. The backlog as at end June 2010 stood at Rs.773.000 millions .Several initiatives taken by the Company in absorption of Mavag technology, bringing Mavag’s high end products to Indian customers, upgrading the facility for Non glass lined alloy products, product quality improvement programs and cost reduction projects are expected to improve the business environment of the Company.

 

Fixed Assets:

 

·         Freehold Land

·         Leasehold Land

·         Leasehold Improvement

·         Buildings

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

 

CMT REPORT (Corruption, Money Laundering and Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.15

UK Pound

1

Rs.72.58

Euro

1

Rs.62.95

 

 

SCORE and RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

61

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.