MIRA
INFORM REPORT
|
Report Date : |
02.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
PIDILITE
INDUSTRIES LIMITED |
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Registered Office : |
Regent Chambers,
7th Floor 208, Nariman, Point , Mumbai – 400021, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
28.07.1969 |
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Com. Reg. No.: |
11-014336 |
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Capital
Investment / Paid-up Capital : |
Rs. 506.130 Millions |
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CIN No.: [Company
Identification No.] |
L24100MH1969PLC014336 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP06924B MUMP12411A |
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Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of
adhesives, sealants, art material and construction paint and chemical
products. |
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No. of Employees
: |
4130
[Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 4500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and a reputed company having good track. Financial position of
the company appears to be sound. Directors are reported to be experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. Payment are reported to be reported to be regular and as per
commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
|
Registered
Office : |
Regent Chambers,
7th Floor 208, Nariman, Point , Mumbai – 400021, Maharashtra,
India |
|
Tel. No.: |
91-22-22822708 /
28367085 / 7089 |
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Fax No.: |
91-22-22043969 |
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E-Mail : |
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Website : |
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Administrative
Office: |
6th Floor, Vikas Deep, Laxmi Nagar, District Centre, Vikas
Marg, |
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Corporate
Office / Head office: |
Ramkrishna Mandir
Road, Office Mathuradas Vasanji Road, Andheri (East), Mumbai – 4000059,
Maharashtra, India |
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Tel. No.: |
91-22-28357000 / 3083
1000 |
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Fax No.: |
91-22-28357008 / 2835
7700 |
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E-Mail : |
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Factory : |
v
Plot
No. A-22, M. I. D. C. Mahad - 402309, District Raigad, Maharashtra, India Tel. No.
91-2145-232043/44/45/46 Fax. No. 91-2145-232054/232048 v
Plot
No. 78-79, G. I. D. C. Industrial Estate, Vapi - 396 195, District Valsad,
Gujarat, India Tel. No.
91-2638-230215/230521 Fax. No.
91-2638-230199 v
Plot
No. 23, G. I. D. C. Industrial Estate, Vapi 396 195, District Valsad, Gujarat,
India Tel. No.
91-2638-230520/231517 Fax. No.
91-2638-231085 v
Plot
No. 25,26,39,40 Jawahar Co-operative Industrial Estate, Kamothe, Panvel -
410206, District Raigad, Maharashtra, India Tel. No.
91-22-27421021/27421856 Fax. No.
91-22-2742332 v
Plot No.
19, Taloja Industrial Estate, Taloja, District Raigad, Maharashtra, India Tel. No.
91-22-27410376/77 Fax. No.
91-22-27410376 v
Daman,
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Branches : |
“Paritosh”, 4thFloor, Near Darpan Academy, Usmanpura, Ahmedabad – 380018,
Gujarat, India Phone
No.: 91-790-30014700 Fax
No.: 91-790-27550927 H.V.S. Apartments, Phone
No.: 91-80-22263975 Fax
No.: 91-80-22281579
Plot No. 72, Industrial Area, Phase II, Phone
No.: 91-172-2642845 Fax
No.: 91-172-2642846
306 (Old No.:244), Lloyds Road, Gopalapuram, Chennai – 600086, Tamil
Nadu, India Phone
No.: 91-44-39114000 Fax
No.: 91-44-28351626
6TH Floor Vikas Deep, Laxmi Nagar District Centre, Vikas Marg, Delhi –
110092, India Phone
No.: 91-11-45529000 Fax
No.: 91-11-22422916 57-A, Co-operative Industrial Estate, Dada Nagar, (Udyog Nagar),
Kanpur – 208022, Maharashtra, India Phone
No.: 91-512-2240008 Fax
No.: 91-512-2297504
Everest House, 10th Floor, 46/C, Chowringhee Road, Kolkata – 700071,
West Bengal, India Phone
No.: 91-33-30514100 Fax
No.: 91-33-30514202 Plot No. 23/24, Sahu Layout, Khadgaon Road, Wadi, Nagpur – 440023,
Maharashtra, India Phone
No.: 91-7104-221094 Fax
No.: 91-7104-221081
|
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. B. K. Parekh |
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Designation : |
Chairman |
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Name : |
Mr. S. K. Parekh |
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Designation : |
Vice Chairman |
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Name : |
Mr. M. B. Parekh |
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Designation : |
Managing Director |
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Name : |
Mr. N. K. Parekh |
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Designation : |
Joint Managing Director |
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Name : |
Mr. R. M. Gandhi |
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Designation : |
Director |
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Name : |
Mr. N. J. Jhaveri |
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Designation : |
Director |
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Name : |
Mr. Bansi S.
Mehta |
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Designation : |
Director |
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Name : |
Mr. Ranjan Kapur |
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Designation : |
Director |
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Name : |
Mr. Yash Mahajan |
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Designation : |
Director |
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Name : |
Mr. A. B. Parekh |
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Designation : |
Whole Time Director |
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Name : |
Mr. A N Parekh |
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Designation : |
Whole Time Director |
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Name : |
Mr. Bharat puri |
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Designation : |
Director |
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Date of Appointment : |
28.05.2008 |
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Name : |
Mr. D. Bhattacharya |
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Designation : |
Director |
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Name : |
J.L. Shah |
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Designation : |
Whole Time Director [up to 21.10.2009] |
KEY EXECUTIVES
|
Name : |
Ms. Savithri Parekh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
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|
|
|
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|
269159342 |
53.02 |
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|
85907932 |
16.92 |
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|
|
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|
2901606 |
0.57 |
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(B)
Public Shareholding |
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29037938 |
5.13 |
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|
28530 |
0.01 |
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8201926 |
1.62 |
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|
60348040 |
11.89 |
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Sub
Total |
94616434 |
18.64 |
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|
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|
5717877 |
1.13 |
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40584618 |
7.99 |
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8760817 |
1.73 |
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Total
Public Shareholding [B] |
55063312 |
10.85 |
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Total
|
507648626 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and
selling of branded consumer products like adhesives, sealants, art material and
construction paint and chemicals. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Dyestuffs |
M.T. |
3900 |
3144 |
20577C |
|
|
K.L. |
-- |
-- |
6380D |
|
Chemicals |
M.T. |
372109 |
260449 |
164138E |
|
|
K.L. |
37780 |
32260 |
42695F |
|
Others Nos. Lac |
-- |
-- |
-- |
1176G |
Notes:
* This being
technical matter, is as certified by the Management and relied upon by
Auditors.
A Class of Goods is
based on main classification given in the Industries (Development and
Regulation) Act, 1951.
B Excluding Resale
of Raw Materials / Packing Materials Rs. 95.53 million (Rs.210.41 million)
C Includes 17228
Tones (17721 Tones) produced in the factory of third party.
D Includes 5165 KL
(5315 KL) produced in the factory of third party.
E Includes 51755
Tones (38423 Tones) produced in the factory of third party.
F Includes 6970 KL
(5380 KL) produced in the factory of the third party. .
G Includes 1175 Nos. Lac (2332 Nos. Lac) produced in the factory of the
third party.
GENERAL INFORMATION
|
No. of Employees : |
4130
[Approximately] |
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Bankers : |
v
Indian Overseas Bank v
Corporation Bank v
ICICI Bank v
The Royal Bank of Scotland N.V. |
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Facilities : |
Notes: 1.
Secured Redeemable Non Convertible Debentures are
secured by way of mortgage and charge (by First pari passu charge) on the
immovable property in Gujarat and all movable properties of the Company. The Company has repurchased 11.9% Non-Convertible Debentures of 150
million and 10.2% Non-Convertible Debentures aggregating to 750 million
during the year. 600 Secured Redeemable Non Convertible Debentures with
interest @ 11.9% p.a. will be redeemed at par on 5th December 2013. 2.
Term Loan from Banks is secured by way of
hypothecation of all movable Plant and Machinery of the Company. 3.
Working Capital Loans from Banks are secured by
way of first charge on the stock of Raw Materials, Finished Goods, Packing
Material, Stock in Process, Bills Receivable and Book Debts and by way of
second charge on the entire Plant and Machinery of the Company including
Stores and Spares. Further, these loans are secured by way of an Equitable
Mortgage on the Land and Building of the Company’s unit at Kondivita, Mumbai.
Notes : Amount due within one year Rs.9.030 millions (Rs. 5.860 millions) |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chartered Accountants
Solicitors and Advocates |
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Significant
Influence: |
v Parekh Marketing
Limited v Kalva Marketing
and Services Limited |
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|
|
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Associate: |
v Vinyl Chemicals
(India) Limited |
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Controlling
Interest : |
v Nitin
Enterprises |
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|
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|
100% Subsidiary
: |
v Fevicol Company
Limited v Bhimad Commercial
Company Private Limited v Madhumala
Traders Private Limited v Pidilite
International Pte Limited v Pidilite Middle
East Limited v Pulvitec do
Brasil Industria e Comercio de Colas e Adesivos Limited v Pidilite USA Inc |
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75% Subsidiary : |
v Pagel Concrete
Technologies Private Limited |
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100% Subsidiary
of wholly owned subsidiary : |
v Jupiter
Chemicals (LLC) v P.T. Pidilite
Indonesia v Pidilite
Speciality Chemicals Bangladesh Private Limited v Pidilite
Innovation Centre Pte Limited v Pidilite Industries
Egypt – SAE v Pidilite Bamco
Limited v Pidilite South
East Asia Limited. v PIL Trading
Egypt (LLC) v Pidilite
Industries Trading (Shanghai) Company Limited |
|
|
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|
49% Subsidiary of wholly owned subsidiary and
having significant influence : |
v Bamco Supply
Services Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
700000000 |
Equity Shares |
Rs.1/- each |
Rs. 700.000 Millions |
|
|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
506134612 |
Equity Shares |
Rs.1/- each |
Rs. 506.130
Millions |
|
|
|
|
|
NOTES: Out of the above
1.
74,75,880 Equity Shares of Rs.1 each have been issued
for consideration other than cash pursuant to various schemes of amalgamation
in earlier years.
2.
47,94,81,646 Equity Shares of Rs.1 each have been
allotted as fully paid-up Bonus Shares by way of capitalisation of General
Reserve, Securities Premium Account and Capital Redemption Reserve.
3.
The equity shares of the face value of Rs.10 each
were sub-divided into ten equity shares of the face value of Rs.1 each w.e.f.
27th September 2005.
AFTER : 26.07.2011
Authorised Capital : Rs. 700.000 millions
Issued, Subscribed & Paid-up Capital : Rs. 507.648
millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
506.130 |
506.130 |
253.070 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10889.130 |
8879.660 |
7083.080 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11395.260 |
9385.790 |
7336.150 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
859.370 |
2184.500 |
2593.090 |
|
|
2] Unsecured Loans |
2007.940 |
2029.800 |
2987.050 |
|
|
TOTAL BORROWING |
2867.310 |
4214.300 |
5580.140 |
|
|
DEFERRED TAX LIABILITIES |
409.660 |
415.360 |
440.870 |
|
|
|
|
|
|
|
|
TOTAL |
14672.230 |
14015.450 |
13357.160 |
|
|
|
|
|
|
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|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4409.710 |
4174.720 |
4345.540 |
|
|
Capital work-in-progress |
3330.840 |
2774.020 |
2387.470 |
|
|
|
|
|
|
|
|
INVESTMENT |
3997.400 |
5104.920 |
2407.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3544.400
|
2506.310
|
2288.930
|
|
|
Sundry Debtors |
2865.910
|
2387.590
|
2413.030
|
|
|
Cash & Bank Balances |
932.080
|
331.160
|
1270.760
|
|
|
Other Current Assets |
40.800
|
51.510
|
211.150
|
|
|
Loans & Advances |
872.020
|
963.910
|
868.930
|
|
Total
Current Assets |
8255.210
|
6240.480 |
7052.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1493.690
|
1114.280
|
1715.450
|
|
|
Other Current Liabilities |
2643.000
|
2187.650
|
525.710
|
|
|
Provisions |
1184.240
|
976.760
|
594.590
|
|
Total
Current Liabilities |
5320.930
|
4278.690 |
2835.750 |
|
|
Net Current Assets |
2934.280
|
1961.790
|
4217.050
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14672.230 |
14015.450 |
13357.170 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
23537.510 |
19322.460 |
17611.220 |
|
|
|
Other Income |
418.470 |
271.770 |
238.920 |
|
|
|
TOTAL (A) |
23955.980 |
19594.230 |
17850.140 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials |
12472.420 |
9958.160 |
10328.350 |
|
|
|
Other Expenses |
7064.540 |
5883.480 |
5417.620 |
|
|
|
TOTAL (B) |
19536.960 |
15841.640 |
15745.970 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4419.020 |
3752.590 |
2104.170 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4419.020 |
3752.590 |
2104.170 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
443.870 |
463.860 |
472.160 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
3975.150 |
3288.730 |
1632.010 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
936.240 |
397.510 |
168.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
3038.910 |
2891.220 |
1463.790 |
|
|
|
|
|
|
|
|
|
|
Prior year tax provision written back [net] |
0.000 |
43.730 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1006.320 |
779.130 |
720.270 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend on Preference Share |
0.000 |
0.000 |
0.750 |
|
|
|
Proposed Dividend on Equity Shares |
885.740 |
759.200 |
442.870 |
|
|
|
Tax on Dividend |
143.690 |
126.100 |
75.380 |
|
|
|
Transfer to Capital Redemption Reserve |
0.000 |
0.000 |
28.750 |
|
|
|
Transfer to Debenture Redemption Reserve |
42.310 |
322.460 |
257.180 |
|
|
|
Transfer to General Reserve |
1900.000 |
1500.000 |
600.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1073.490 |
1006.320 |
779.130 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2392.920 |
1838.460 |
1819.530 |
|
|
|
Other Earnings |
5.440 |
4.010 |
3.600 |
|
|
TOTAL EARNINGS |
2398.360 |
1842.470 |
1823.130 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2912.450 |
1888.760 |
2181.090 |
|
|
|
Capital Goods |
105.200 |
6.590 |
36.500 |
|
|
|
Others |
582.200 |
448.530 |
311.930 |
|
|
TOTAL IMPORTS |
3599.850 |
2343.880 |
2529.520 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.00 |
5.80 |
2.89 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2011 1st Quarter
|
|
Net Sales |
7699.000 |
|
Total Expenditure |
6168.200 |
|
PBIDT (Excl OI) |
1530.800 |
|
Other Income |
51.300 |
|
Operating Profit |
1582.100 |
|
Interest |
39.800 |
|
Exceptional Items |
0.000 |
|
PBDT |
1542.300 |
|
Depreciation |
115.600 |
|
Profit Before Tax |
1426.700 |
|
Tax |
349.600 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
1077.100 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
1077.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
12.69
|
14.76 |
8.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.89
|
17.02 |
9.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
31.39
|
31.58 |
14.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.35
|
0.35 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.75
|
0.95 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.55
|
1.46 |
2.49 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL PERFORMANCE
The Operating
Profit and Net Profit, for the year at Rs. 4945 millions and Rs. 3039 millions increased
by 20% and 5% respectively. Income Tax for the current year at Rs. 942 millions
is higher than Rs. 423 millions in the last year, due to completion of the
first five year tax holiday period for 3 manufacturing units located in
Himachal Pradesh.
Due to the
improvement in the economic conditions in India, as evidenced by the strong GDP
growth, sales growth was higher than last few year’s trend. The economic
revival in the developed markets in the world also resulted in growth in
exports, particularly in the second half of the year.
However, there has
been an increase in the input costs, largely in the last quarter, due to
firming up of commodity prices and that has put pressure on margins
particularly of Industrial Products.
The stable Indian
Rupee and cost control measures taken by the Company have helped to maintain
the profitability at levels similar to that of the previous year. The exchange
rate of Indian Rupee was at Rs. 44.40 to a USD in March 2011 as compared to Rs.
44.97 to a USD in March 2010. Accordingly there was a nominal credit of Rs.
1.99 millions to carrying cost of depreciable assets and Rs. 8.05 millions was
credited to the Foreign Exchange Monetary Item Translation Account. Out of the
said Foreign Currency Monetary Item Translation Account, Rs. 1.07 Millios has
been amortized in the current year.
TERM FINANCE
The Company had
borrowed USD 17 million through an ECB Term loan amounting to Rs. 796.2
millions, repayable in 3 annual installments. During the year the Company has
repaid the 2nd of the 3 annual installments amounting to USD 5.67 millions
equivalent to Rs. 241.18 millions.
MANUFACTURING PLANTS
Health, Safety and
Environment activities continued during the year bringing greater focus on
safety and environment at all manufacturing units.
Continuous
improvement plans in the manufacturing units resulted in 400 plus Kaizens
leading to productivity and
process improvement.
Manufacturing
capacity of insulation tapes, Fevikwik and Fevicol were enhanced.
Technology and automation
projects initiated and completed on various lines like Fevigum, Fevicol,
M-seal, insulation tapes, Fevikwik and various industrial products.
INDUSTRY STRUCTURE
AND DEVELOPMENT
There is no
material change in the industry structure as was reported last year.
The Company
operates under two major business segments i.e. Branded Consumer and Bazaar
Products and Specialty Industrial Chemicals.
Products such as
Adhesives, Sealants, Art Materials, Construction and Paint Chemicals are
covered under branded Consumer and Bazaar Products segment. These products are
widely used by carpenters, painters, plumbers, mechanics, households, students,
offices, etc.
Specialty
Industrial Chemicals segment covers products such as Industrial Adhesives,
Synthetic Resins, Organic
Pigments, Pigment
Preparations, Surfactants, etc. and caters to various industries like
packaging, textiles, paints,
printing inks, paper, leather, etc.
In both the above
business segments, there are a few medium to large companies with national
presence, and a large number of small size companies that are active
regionally. There is growing presence of multinationals in many of the segments
in which the Company operates. The share of imports is less than 10 % of
domestic volumes in most of the product segments.
The “Other”
segment largely covers manufacture and sale of VAM. As mentioned earlier, due
to global demand supply situation it was viable to import VAM rather than
manufacture in-house and accordingly the plant remained
shut last year. Going
forward, in the near future, import of VAM is likely to remain more viable. The
Company is exploring alternate products which can be manufactured in the same
plant.
CURRENT YEAR OUTLOOK
During the current
year, due to the inflationary pressures, the Reserve Bank of India has been
steadily increasing interest rates. This is expected to adversely impact
overall economic growth and therefore could impact the demand for the Company’s
products, thereby impacting the sales growth.
Due to the steep
increase in commodity prices, input costs have gone up sharply. Though the
Company does pass on these increases by way of price increases, this could
impact margins as there is a lag between the cost increase and the price
increase.
The Company’s
major subsidiaries are in USA, Brazil, UAE, Thailand, Egypt and Bangladesh.
While all the units are expected to show improved performance, the business in
Brazil is vulnerable to high inflation and slowdown in growth rate. The
operations in Egypt and U.A.E. could be impacted by the local political
situation.
OUTLOOK ON
OPPORTUNITIES, THREATS, RISKS AND CONCERNS
Stable economic
growth in India will provide an opportunity to the Company to grow its business
and introduce differentiated products for meeting customer expectations. The
improving global economy will facilitate growth of
export oriented products.
Increasing
interest rates could slow down economic demand thereby impacting Company’s
sales in the current year. In addition input costs increases are likely to put
pressure on margins in the short term.
Though the Company
has strengthened its management structure in the overseas subsidiaries, due to
the political uncertainties in some countries and the small size of the
overseas operations, the performance in these units could be impacted by local
events.
MANAGEMENT DISCUSSION AND ANALYSIS
STANDALONE
FINANCIALS
The Company
achieved 21.8% growth in net sales.
Due to steady
domestic demand and a pick-up in exports in the second half of the year, sales
growth was higher than the last few years.
While
profitability of the Company was comparable with the last year, input costs
have increased in the last quarter.
During the year, a
provision of 250 million was made for diminution in value of investments in
Pidilite Middle East Limited “PMEL” (a 100% subsidiary). PMEL’s subsidiary,
Jupiter Chemicals LLC “Jupiter”, has been making losses due to adverse economic
conditions and during the year PMEL impaired its investment in Jupiter.
Consequently the Company reviewed the carrying value of its investments in PMEL
and as a matter of prudence, made a provision of 250 million towards diminution
in the value of investments. This provision has no impact on the consolidated
results of the Company.
Earnings before
interest, taxes, exceptional items and foreign exchange differences increased
by 22.7%, profit before tax and exceptional items (PBT) increased by 28.5% and
profit after tax (PAT) increased by 5.1%.
The Company’s
sales have grown at a CAGR of 17.85% over the last five years.
AWARDS
v “Moochwali”, the
commercial for Fevicol released last year as part of Golden Jubilee Year
celebrations, won Effie award 2010.
v The “Master Jee” radio
advertisement of Fevicol Marine won the Abby award at Goafest 2011.
v Fevicol was listed
under the prestigious “Power Brands” in India in 2010. Fevicol was also
conferred the status of “Masterbrand” by the CMO Council.
v Fevicol won the
Pitch India’s Top 50 Marketers Award 2010 in the Ageless brands category.
v Brand Equity
ranked Fevicol as the 41st most trusted brand in India which is an improvement
over the ranking of the previous year.
v Dr. Fixit won the
“Best Innovative Outdoor Award of 2011” from Exchange4media. An under
construction building at Western Express Highway, near Santacruz Airport was
wrapped with a message reading, “Wrap your house with this or else, Dr. Fixit.”
v Fevikwik won
Bronze in Creative in OOH at Goafest.
v Pidilite won the
Dun and Bradstreet – Rolta Corporate Award 2010 for the top Indian company in
the chemicals sector.
CONTINGENT LIABILITIES :
Contingent liabilities not provided for:
(Rs. in millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
i. Guarantees given by Banks in favour of Government and others |
53.930 |
48.980 |
|
ii. Guarantees given by Company |
596.650 |
647.000 |
|
iii. Disputed liabilities in respect of Income Tax, Sales Tax, Central Excise and Customs (under appeal) |
542.500 |
323.800 |
|
iv Claims against the company not acknowledged as debts. |
82.170 |
81.440 |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011
(STANDALONE)
(Rs. in millions)
|
Particular |
Unaudited |
|
|
Quarter
ended 30.06.2011 |
|
Gross
Sales / Income |
|
|
a. Net Sales / Income from Operations (Net of Excise and Discounts) |
7638.200 |
|
b. Other Operating Income |
60.800 |
|
Total
Income (a+b) |
7699.000 |
|
|
|
|
Expenditure |
|
|
a) (Increase) / Decrease in Stock in Trade and Work In
Process |
138.200 |
|
b) Consumption of Raw Materials (Net) |
2936.700 |
|
c) Purchase of Traded Goods |
337.600 |
|
d) Employee Cost |
664.800 |
|
e) Depreciation |
115.600 |
|
f) Other Expenditure |
2089.100 |
|
g)
Total Expenditure (a to f) |
6282.000 |
|
|
|
|
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
1417.000 |
|
|
|
|
Other Income |
51.300 |
|
|
|
|
Profit Before Interest and Exceptional Items (3+4) |
1468.300 |
|
|
|
|
Interest |
39.800 |
|
|
|
|
Profit After Interest but before Exceptional Items (5-6) |
1428.500 |
|
|
|
|
Exceptional Items |
-- |
|
|
|
|
Profit from Ordinary Activities before foreign exchange |
1428.500 |
|
|
|
|
Foreign Exchange Difference – Expenses / (Income) |
1.800 |
|
|
|
|
Profit from Ordinary Activities before tax |
1426.700 |
|
|
|
|
Tax Expense |
349.600 |
|
|
|
|
Net Profit from Ordinary Activities after Tax (9-10) |
1077.100 |
|
|
|
|
Extraordinary Item (net of expense) |
-- |
|
|
|
|
Net Profit for the period (11-12) |
1077.100 |
|
|
|
|
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
506.500 |
|
|
|
|
Reserves Excluding Revaluation Reserve |
-- |
|
|
|
|
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
a) Basic and diluted EPS before extraordinary items |
2.13 |
|
b) Diluted
EPS before extraordinary item |
2.07 |
|
d) Basic and diluted EPS after extraordinary items |
2.13 |
|
e) Diluted EPS
before extraordinary item |
2.07 |
|
|
|
|
Public
Shareholding |
|
|
-Number of Shares |
148515120 |
|
- Percentage of Shareholding |
29.32 |
|
|
|
|
Promoters
and Promoter Group Shareholding |
|
|
a)
Pledged/Encumbered |
|
|
- Number of Shares |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
|
|
|
|
b)
Non Encumbered |
|
|
- Number of Shares |
357968880 |
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
70.68% |
REPORTING OF SEGMENT WISE REVENUE, RESULTS AND CAPITAL
EMPLOYED
(Rs. in millions)
|
Particulars |
Unaudited
For
the Quarter ended 30.06.2011 |
|
Segment Revenue |
|
|
a)
Consumer and Bazaar Products |
6127.200 |
|
b)
Industrial Products |
1661.600 |
|
c)
Others |
34.000 |
|
Total |
7822.800 |
|
Less
: Inter Segment Revenue |
184.600 |
|
Net
Segment Revenue |
7638.200 |
|
|
|
|
Profit
before Interest and Tax |
|
|
a)
Consumer and Bazaar Products |
1586.100 |
|
b)
Industrial Products |
259.100 |
|
c)
Others |
(35.900) |
|
Total |
1809.300 |
|
Less
: i) Interest |
39.800 |
|
ii)
Other unallocable expenditure - |
342.800 |
|
|
|
|
Total
Profit Before Tax |
1426.700 |
|
|
|
|
Capital
Employed |
|
|
a)
Consumer and Bazaar Products |
3700.600 |
|
b)
Industrial Products |
1710.100 |
|
c)
Others |
442.300 |
|
d)
Unallocated |
6654.000 |
|
|
|
|
Total
Capital Employed |
12507.000 |
NOTES:-
1. The above results have been reviewed by the Audit Committee
and taken on record by the Board of Directors at their meetings held on 26th
July, 2011.
2.
The Statutory Auditors have carried out a "Limited
Review" of the standalone financial results for the quarter ended 30th
June, 2011.
3. The Company
has opted to publish Standalone as well as Consolidated financial statements.
The Consolidated financial results prepared as per Accounting Standard (AS-21) comprise the results of Pidilite
Industries Limited (Holding Company), 18 subsidiary companies and one associate
Company.
4. The Central
Government vide Notification No G.S.R 225 ( E) dated 11th May 2011 has extended
the earlier notification No G.S.R 225 (E) dated 31.03.2009 to treat foreign
exchange difference relating to assets as adjustments in the carrying value of
such depreciable assets. Accordingly, the Company has credited the gain of
Rs.0.200 million in the current quarter to the carrying cost of the depreciable
assets.
5. Unallocated
Capital Employed as at 30th June 2011 includes a) Capital Work in Progress of
Rs. 3262.900 millions (Rs. 2775.400 millions) of Synthetic Elastomer Project
presently under implementation b) Short term investments in units of mutual
funds / term deposits with banks Rs. 2770.000 millions (Rs. 3343.000 millions).
6. The Company raised US $ 40 million from issue of Zero
Coupon Foreign Currency Convertible Bonds (FCCB) in December 2007. After
payment of US$ 0.99
million for certain issue related expenses, the Company has utilized US $ 24.49
million for investment in equity capital of its overseas subsidiaries, US$
13.32 million for capital equipments, US $ 0.75 million for buyback of FCCB and
finance cost of US$ 0.43 million. The balance amount is kept with banks.
7. During the
quarter, FCCBs aggregating US$ 0.9 million have been converted into equity
shares, resulting in increase of paid up capital of the Company by 349388
equity shares of Re. 1 each. Since the conversion has happened before the
record date for the payment of dividend, the holders of these shares will be
entitled to dividend of financial year 2010-11, Accordingly Dividend @ Rs. 1.75
per share aggregating Rs. 0.611 million has been provided in the quarter.
8. In terms of Clause 41 of the Listing Agreement,
details of number of investor complaints for the quarter ended 30th June 2011
beginning - nil, received - 4, disposed of - 4 and pending - nil.
9. Previous period's figures are regrouped wherever
necessary.
Fixed Assets
- Goodwill
- Buildings
- Plant and Machinery
- Trademark
- Copyrights
- Furniture and Fixtures
- Vehicles
WEB SITE DETAILS
PROFILE
Subject is an India-based holding company. The Company operates in three
business segments: Consumer and Bazaar Products, Industrial Products and
Others. Consumer & Bazaar Products consist of adhesives, sealants, art
materials and construction chemicals. These products are used by carpenters,
painters, plumbers, mechanics, households, students and offices. The Company’s
industrial chemicals products include Organic Pigments and Preparations, Industrial
Adhesives and Industrial Resins. It caters to industries, such as packaging,
textiles, paints, printing inks, paper and leather. Others consists of the
Vinyl Acetate Monomer (VAM) manufacturing unit, which demerged into the Company
effective April 1, 2007. During the fiscal year ended March 31, 2011 (fiscal
2010), the Company introduced Fevicol Marine, DDL XT Booster and Dr. Fixit LW+.
During fiscal 2010, the Company acquired a polyester putty brand, Metaplast.
For the nine months ended 31 December 2010, subject revenues increased 20% to
RS20.46B. Net income increased 15% to RS2.63B. Revenues reflect an increase in
income from Consumer and Bazaar Products division and higher income from
Industrial Products business. Net income was partially offset by an increase in
consumption of raw materials, higher employees cost and an increase in packing
material consumption..
N. K. PAREKH -
JOINT MANAGING DIRECTOR, EXECUTIVE DIRECTOR
Shri. N. K. Parekh is Joint Managing Director, Executive Director of
Pidilite Industries Limited. He is Director of the company since 1969. He is a
qualified Technologist for Dyes and Intermediates and a qualified Chemical
Engineer (B.Sc., B.Sc. (Tech), M. S. Chem Engg (U.S.A)] and has experience in
the industry for over 44 years. He is also a Director of Vinyl Chemicals
(India) Ltd, Fevicol Company Limited, Parkem Dyes and Chemicals Private
Limited, Ishijas Chemicals Private Limited. The Vacuum Forming Company Private
Limited, Kalpaj Sales and Agencies Private Limited, Pargro Investments Private
Limited and Dr. Fixit Institute of Structural Protection and Rehabilitation (a
Company u/s 25 of the Companies Act, 1956).
R. M. GANDHI -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Shri. R. M. Gandhi is Independent Non-Executive Director of Pidilite
Industries Limited since 1989. He holds Master Degree in Law. He is a
practising Advocate and Solicitor of High Court at Mumbai and has over 47 years
experience in legal field. He is also a Director of Aarti Industries Limited,
Aarti Drugs Limited, Unichem Laboratories Limited and Vinyl Chemicals (India)
Limited. He chairs the Audit Committee of Aarti Industries Limited, Aarti Drugs
Limited and of Vinyl Chemicals (India) Limited and also chairs
Shareholders/Investors Grievances Committee of the company and Unichem
Laboratories Limited. He is also a committee member of Shareholders/Investors
Grievances Committee of Vinyl Chemicals (India) Limited. He serves on the Audit
Committee of Unichem Laboratories Limited.
NARENDRA J.
JHAVERI - INDEPENDENT NON-EXECUTIVE DIRECTOR
Shri. Narendra J. Jhaveri is Independent Non-Executive Director of
Pidilite Industries Limited since 1996. He obtained his Masters degree in
Economics from London School of Economics. He has a professional experience of
over 44 years in the fields of financial and corporate matters such as
investment banking, project finance, corporate finance, merchant banking,
business restructuring, venture capital and technology finance besides economic
and market research. He was with ICICI Limited. (since merged with ICICI Bank
Limited) since 1974 and worked as its Jt. Managing Director supervising all
operational areas. He was a founder chairman of ISec Limited. a joint venture
between ICICI and JP Morgan of USA during 1993-1995. He is a Director of Afcons
Infrastructure Limited. SKF India Limited, Siemens Limited, Usha Martin
Limited, Voltas Limited. Juniper Hotels Private Limited, Siemens Information
Systems Limited. Gujarat State Petronet Limited. Hindalco Industries Limited.
Ultra Tech Cement Limited. Siemens Medical Solutions Diagnostics Limited.
Phoenix Arc Private Limited, Edelweiss Capital Limited and Gujarat Venture
Finance Limited. He chairs the Audit Committee of Usha Martin Limited. Voltas
Limited. Afcons Infrastructure Limited. Siemens Medical Solutions Diagnostics
Limited and Edelweiss Capital Limited. He is a member of Audit Committee of SKF
India Limited, Juniper Hotels Private Limited. Gujarat State Petronet Limited.
Hindalco Industries Limited and also of the company.
Education
v M Economics,
London School of Economics
v M Economics,
Gujarat University
RANJAN M. KAPUR -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Education
v MA English,
University of Delhi
YASH PAUL MAHAJAN
- INDEPENDENT NON-EXECUTIVE DIRECTOR
Shri. Yash Paul Mahajan is Independent Non-Executive Director of
Pidilite Industries Limited since 2000. Shri Mahajan is a UK qualified
Chartered Accountant and is a Fellow Member of the Institute of Chartered
Accountants in England and Wales. He is the Managing Director of Swaraj Mazda
Limited, Director of Aptech Limited. and SEBI nominated Director of Ludhiana
Stock Exchange. He was associated with Punjab Tractors Limited. from April 1973
till May 2006 lastly holding position of Vice Chairman and Managing Director.
Before that Shri Mahajan had worked for 10 years in senior management positions
with two multinational corporates - Union Carbide India Limited and Balmer
Lawrie and Company Limited. He is specialized in Finance, Marketing, Material
Services and HRD functions. He is a member of Shareholder! Investor Relation
Committee of Swaraj Mazda Limited.
M. B. PAREKH -
MANAGING DIRECTOR, EXECUTIVE DIRECTOR
Sarva Shri. M. B. Parekh is Managing Director, Executive Director of
Pidilite Industries Limited. He is Director of Pidilite Industries Limited
since 1972. He is a qualified Chemical Engineer [B.Chem. Engg. (Bom), MS.Chem
Engg. (U.S.A)] and has experience in the industry for abOut 38 years. He is a
Managing Director of Vinyl Chemicals (India) Limited. as well as of the
company. He is a Director of Fevicol Company Limited. Kalva Marketing and
Services Limited. Harton Private Limited, Devkalyan Sales Private Limited,
Trivenikalyan Trading Private Limited. Pargro Investments Private Limited Excel
industries Limited and Dr. Fixit Institute of Structural Protection and
Rehabilitation (a company u/s 25 of the Companies Act, 1956).
Education
v MS Chemical
Engineering, University of Wisconsin
v B Chemical
Engineering, Mumbai University
A. N. PAREKH -
WHOLE-TIME DIRECTOR
Shri. A. N. Parekh is Whole-time Director of Pidilite Industries Limited
since July 1, 2005. He is a promoter director of the Company and has been
working with the Company since 1996. Shri A N Parekh is a Chemical Engineer
with qualification of B.S. Chem. Engg. (U.S.A.) and having total business
experience of 17 years. He joined the Company in Sales and Marketing Department
and was promoted to the position of Vice President and then to the position of
Sr. Vice President. He has been a Whole-Time Director of the Company since 1st
July 2005. He is a director of Parkem Dyes and Chemicals Private Limited,
Kalpaj Sales and Agencies Private Limited, Jess Trading Private Limited, Dr.
Fixit Institute of Structural Protection and Rehabilitation (a company u/s 25
of the Companies Act, 1956), Synapse Technologies Inc. USA, Wisdom Controls
Inc. USA, Jupiter Chemicals LLC, Dubai, Pidilite Industries Egypt (SAE),
Pidilite Speciality Chemicals Bangladesh Private Limited, Pidilite Bamco
Limited, Pidilite USA Inc. and Sarla Technologies Middle East LLC. He holds
3,584,910 Equity Shares in the Company as on 31st March 2011.
BHARAT PURI -
INDEPENDENT NON-EXECUTIVE DIRECTOR
Shri. Bharat Puri is Independent Non-Executive Director of Pidilite
Industries Limited with effect from 28 May 2008. He is a graduate in Commerce
and has completed his Masters in Business Administration from Indian Institute
of Management - Ahmedabad. He has experience of over 28 years in the field of
Sales and Marketing in FMCG Companies viz. Asian Paints and Cadbury both in
India and abroad. He is responsible for Strategy, Innovation and Market
Expansion as Senior Vice President Global Chocolates Category at Kraft Foods.
Education
v M Business
Administration, Indian Institute of Management, Ahmedabad
NEWS
PRESS RELEASE
CITY STUDENTS PAINT A NEW RECORD
New Indian Express
(India): 17 August 2011
CHENNAI, Aug. 17 -- Students of Sree Venkateshwara Matriculation Higher Secondary School painted their way to a new record on Tuesday. More than 3,500 students of the school came out with a Rajasthani Canvas Painting within a span of 60 minutes and created a new Limca Record.
Students from
Kelambakkam and Tiruporur branches of the school also participated in the
event, apart from the Mylapore school students.
The event was
sponsored and supported by Pidilite Industries with the aim of bringing out the
talents of students. More than 3,500 sets of paint, brushes and design sets
were used in the process and the students were given a training for more than a
week to accomplish the task. "The canvas painting is called minakari work,
which is a traditional art form of Rajasthan," said Shyamaladevi, a
teacher with Fevicryl, who trained the students.
"Minakari is
a traditional design, which resembles Rangoli. A team designated by the Limca
Book of Records consisting of an expert, a notary public and principal of
another institution will certify before the painting enters the records."
Inaugurating the
event, artist Thangavel appreciated the efforts of children in involving
themselves in such a tedious task. The event was also designed to coordinate
with the Independence Day to spread the message of national integration and
peace, according to the organizers. "Such events and programmes bring
peace, unity and harmony among the younger generations," said JM Jose,
Zonal Head of Pidilite Industries.
A panel of judges
headed by Ramadevi and Senthilkumar of Limca Book of Records was present to
approve the painting.
"A day
without classes is always fun. It's all the more fun if we get to play with the
paint," says Shruti, a Class 9 student. "It is an ideal break for us
from the monotonous classroom work and we have also learned a new design that I
can show off to my parents, siblings and other friends," she said.
MEGA PAINTINGS BY STUDENTS TO ENTER RECORD
BOOKS
United News of
India: 16 August 2011
Chennai, Aug. 16 -- In all 3,502 students of a private school in the city today created Rajasthan paintings on canvas in a bid to enter the Limca Book of Records. In all 3,502 students from Standard three to 12 of the Sri Venkateswara Matriculation Higher Secondary School, painted 3,502 varieties of paintings in a span of one hour, in a bid to create a new record. The previous record was done by 1750 students at a school in North India in 2006. Representatives of the Limca Book of Records were present when the students started painting on the canvas using acrylic paints and finished it in an hour s time. The entire programme was coordinated by Pidilite Industries, which provided them a week-long training on Rajasthan paintings. The school management had spent about Rs 0.350 million in its endeavour organised to commemorate its Golden Jubilee. Well known cartoonist Rahnu inaugurated the event which was aimed at showcasing the creative skills of the students in canvas paintings. Eminent artist Thangavel, who was also present, lauded the efforts of the students who painted their way to perfection. Pidilite Industries, which had organized similar events in various parts of Tamil Nadu, provided all logistics support and training for the event in which its Zonal Head (Sales and Marketing) J M Jose participated. School Correspondent Ms Vedha Srinivasan and Principal Ms Nagarathirama were also present on the occasion. UNI GV PA SB1332 Published by HT Syndication with permission from United News of India.
PIDILITE
INDUSTRIES LIMITED ANNOUNCES ALLOTMENT OF EQUITY SHARES PURSUANT TO CONVERSION
OF FOREIGN CURRENCY CONVERTIBLE BONDS
Aug 04, 2011
Pidilite Industries Limited announced that pursuant to the Offering
Circular dated December 03, 2007, the Company had issued and allotted 400 Zero
Coupon Foreign Currency Convertible Bonds (Bonds) of USD100,000 each
aggregating to USD40 million. Further the Company has informed that, the
Foreign Currency Convertible Bonds (Share Allotment) Committee at its meeting
held on August 04, 2011 has, in accordance with the terms of issue of the said
Bonds, allotted 1,94,104 equity shares to the investor who has exercised its
right to convert, into equity shares, five Bonds of USD100,000 each. There are
335 Bonds aggregating USD33.5 million outstanding, as on date.
PIDILITE
INDUSTRIES LIMITED ANNOUNCES ALLOTMENT OF EQUITY SHARES PURSUANT TO CONVERSION
OF FOREIGN CURRENCY CONVERTIBLE BONDS
Jul 29, 2011
Pidilite Industries Limited announced that pursuant to the Offering
Circular dated December 03, 2007, the Company had issued and allotted 400 Zero
Coupon Foreign Currency convertible Bonds (Bonds) of USD100,000 each
aggregating to USD40 million. Further the Company has informed that, the
Foreign Currency Convertible Bonds (Share Allotment) Committee at its meeting
held on July 27, 2011, has, in accordance with the terms of issue of the said
Bonds, allotted 8,92,880 equity shares pursuant to four conversion notices
received from investors who have exercised their right to convert, into equity
shares, the twenty three Bonds of USD100,000 each. There are 340 Bonds
aggregating USD34 million outstanding, as on date.
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. 48.87 |
|
|
1 |
Rs. 78.11 |
|
Euro |
1 |
Rs. 68.36 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
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 |
|
68 |
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.