Business
information report
1.
Summary Information
|
|
|
Country |
India |
|
Company Name |
KEMROCK INDUSTRIES AND EXPORTS LIMITED |
Principal Name 1 |
Mr. Kalpesh Patel |
|
Status |
Good |
Principal Name 2 |
Mr. Kaushik Bhatt |
|
|
|
Registration # |
04-16625 |
|
Street Address |
Village
Asoj, Taluka : |
||
|
Established Date |
18.11.1991 |
SIC Code |
-- |
|
Telephone# |
91-2668-281059 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-2668-281111 |
Business Style 2 |
Importer |
|
Homepage |
Product Name 1 |
Exporter |
|
|
# of employees |
150
(Approximately) |
Product Name 2 |
FRP |
|
Paid up capital |
Rs.
167,534,660/- |
Product Name 3 |
RESIN |
|
Shareholders |
Promoter
and Promoter Group - 39.96% Public
Shareholding - 60.04% |
Banking |
Allahabad Bank |
|
Public Limited Corp. |
Yes |
Business Period |
20 years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (62) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
Italy |
Top Glass SPA |
-- |
|
Note |
- |
||
2.
Summary Financial Statement
|
Balance Sheet as of |
30.06.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
5,755,776,000 |
Current Liabilities |
2,101,189,000 |
|
Inventories |
2,362,732,000 |
Long-term Liabilities |
9,176,293,000 |
|
Fixed Assets |
4,927,863,000 |
Other Liabilities |
263,298,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
11,540,780,000 |
|
Invest& other Assets |
4,203,232,000 |
Retained Earnings |
5,479,302,000 |
|
|
|
Net Worth |
5,708,823,000 |
|
Total Assets |
17,249,603,000 |
Total Liab. & Equity |
17,249,603,000 |
|
Total Assets (Previous Year) |
9,994,433,000 |
|
|
|
P/L Statement as of |
30.06.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
6,078,258,000 |
Net Profit |
529,677,000 |
|
Sales(Previous yr) |
3,642,067,000 |
Net Profit(Prev.yr) |
324,415,000 |
MIRA
INFORM REPORT
|
Report Date : |
09.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
KEMROCK INDUSTRIES AND EXPORTS LIMITED |
|
|
|
|
Registered
Office : |
Village
Asoj, Taluka : |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.06.2010 (15
Months) |
|
|
|
|
Date of
Incorporation : |
18.11.1991 |
|
|
|
|
Com. Reg. No.: |
04-16625 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.167.535
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L36999GJ1991PLC016625 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDK00913D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACK8810B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing,
Importing and Exporting of FRP Products. |
|
|
|
|
No. of Employees
: |
150
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 23000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. The company
is progressing well. 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 for business dealings at
usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/Head
Office : |
Village
Asoj, Taluka: |
|
Tel. No.: |
91-2668-281059/
281074/ 281088/ 281154/ 281158/ 281157 / 666200 |
|
Fax No.: |
91-2668-281111/
281159 / 666400 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Regional
Office/Factory 1: |
296/A,
G.I.D.C., Makarpura Industrial Estate,
Varodara - 390010, |
|
Tel. No.: |
91-265-2646010/2642449 |
|
Fax No.: |
91-265-2638261 |
|
E-Mail : |
|
|
|
|
|
Marketing
office: |
303,
Commerce Centre, B-27, Veera Industrial Estate, off. New |
|
Tel. No.: |
91-022-26736294/26736295 |
|
Fax No.: |
91-22-26736289 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
296/A,
GIDC, Industrial Estate, Makarpura, Vadodara – 390010, |
|
|
|
|
Factory 3 : |
Village
Asoj, Taluka Waghodia, District Vadodara – 391510, |
DIRECTORS
(AS ON 30.06.2010)
|
Name : |
Mr. Kalpesh Patel |
|
Designation : |
Chairman and Managing Director |
|
Qualification
: |
D.M.E., D.E.E. and D.P.T. |
|
|
|
|
Name : |
Mr. Kaushik Bhatt |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Navin Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tushar Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K K Rai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahendra R. Patel (appointed w.e.f. 03.06.2010) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mukund Bakshi (Ceased w.e.f. 28.08.2010) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. M. Hegde (Ceased w.e.f. 15.01.2010) |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Dinesh Patel |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mrs. Usha Moraes |
|
Designation : |
Chief Financial Officer |
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 |
|
|
|
|
|
|
|
|
4915861 |
38.97 |
|
|
4915861 |
38.97 |
|
|
|
|
|
|
|
|
|
|
125150 |
0.99 |
|
|
125150 |
0.99 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
5041011 |
39.96 |
|
|
|
|
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
855500 |
6.78 |
|
|
54620 |
0.43 |
|
|
910120 |
7.21 |
|
|
|
|
|
|
|
|
|
|
552844 |
4.38 |
|
|
|
|
|
|
1553815 |
12.32 |
|
|
302219 |
2.40 |
|
|
4254989 |
33.73 |
|
|
118873 |
0.94 |
|
|
41790 |
0.33 |
|
|
4093326 |
32.45 |
|
|
1000 |
0.01 |
|
|
6663867 |
52.82 |
|
|
|
|
|
Total
Public shareholding (B) |
7573987 |
60.04 |
|
|
|
|
|
Total
(A)+(B) |
12614998 |
100.00 |
|
|
|
|
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
- |
- |
|
|
- |
- |
|
|
4827200 |
- |
|
|
4827200 |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
17,442,198 |
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, Importing
and Exporting of FRP Products. |
||||||
|
|
|
||||||
|
Products : |
·
Safe-t-span
Pultruded Grating ·
Pultruded
HLC Grating ·
Moulded
Grating ·
Moulded
HLC Grating ·
Rigidex
·
Dyanform
Fiberglass Structural Shapes ·
Dyanrail
FRP Handrail and Ladder System ·
Stair
Solution ·
Equipment
Platform ·
Cable
trays- ladder type and Perforated type ·
Forklift
Pallets ·
Pallet
Containers ·
Custom
Moulded Articles |
PRODUCTION STATUS (AS ON 30.06.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
FRP Products |
Nos. |
-- |
2146229 |
|
Resins |
Kgs. |
-- |
22641213 |
GENERAL INFORMATION
|
No. of Employees : |
150
(Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Allahabad Bank · Andhra Bank · Axis Bank · Exim Bank · ICICI Bank · Indian Bank · Karur Vysya Bank · Punjab National Bank · State Bank of India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
H. K. Shah and
Company Chartered
Accountants |
|
Address : |
|
|
|
|
|
Joint Venture
Company: |
· Georgia-Pacific Kemrock International Private Limited · S. K. Polymers FZCO |
|
|
|
|
Subsidiaries : |
· Top Glass SPA, Italy · Kemrock Advanced Composites Limited · Kemrock Advance Reinforcements Limited · Kemrock Filament Windings Limited · Kemrock Infratech Limited · Kemrock Speciality Polymers Limited |
CAPITAL STRUCTURE
AS ON 30.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16753466 |
Equity Shares |
Rs.10/- each |
Rs.167.535
Millions |
|
|
|
|
|
AFTER AS ON
19.11.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17442198 |
Equity Shares |
Rs.10/- each |
Rs.174.422
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 (15 Months) |
31.03.2009 (12 Months) |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
167.535 |
110.150 |
101.300 |
|
|
2] Share Application Money |
61.986 |
55.125 |
89.268 |
|
|
3] Reserves & Surplus |
5479.302 |
2462.186 |
1841.545 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5708.823 |
2627.461 |
2032.113 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9173.423 |
6177.914 |
2643.544 |
|
|
2] Unsecured Loans |
2.870 |
5.897 |
7.710 |
|
|
TOTAL BORROWING |
9176.293 |
6183.811 |
2651.254 |
|
|
DEFERRED TAX LIABILITIES |
202.906 |
147.384 |
86.357 |
|
|
|
|
|
|
|
|
TOTAL |
15088.022 |
8958.656 |
4769.724 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4927.863 |
2814.587 |
2241.491 |
|
|
Capital work-in-progress |
3293.139 |
1553.039 |
117.458 |
|
|
|
|
|
|
|
|
INVESTMENT |
910.093 |
20.096 |
20.764 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2362.732
|
1965.085
|
1387.579
|
|
|
Sundry Debtors |
3156.649
|
2629.093
|
951.950
|
|
|
Cash & Bank Balances |
1751.354
|
868.740
|
445.419
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
847.773
|
142.822
|
209.281
|
|
Total
Current Assets |
8118.508
|
5605.740
|
2994.229
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
1920.537
|
888.953
|
628.316
|
|
|
Other Current Liabilities |
180.652
|
118.392
|
89.914
|
|
|
Provisions |
60.392
|
28.432
|
11.852
|
|
Total
Current Liabilities |
2161.581
|
1035.777
|
730.082
|
|
|
Net Current Assets |
5956.927
|
4569.963
|
2291.147
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.971 |
98.864 |
|
|
|
|
|
|
|
|
TOTAL |
15088.022 |
8958.656 |
4769.724 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 (15 Months) |
31.03.2009 (12 Months) |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6078.258 |
3642.067 |
2204.690 |
|
|
|
Other Income |
22.646 |
97.553 |
29.166 |
|
|
|
TOTAL (A) |
6100.904 |
3739.620 |
2233.856 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
3364.824 |
2388.125 |
1554.584 |
|
|
|
Manufacturing Expenses |
443.777 |
292.086 |
204.241 |
|
|
|
Provisions and Provisions to Employee |
360.314 |
216.313 |
107.562 |
|
|
|
Administration and General Expenses |
169.743 |
74.437 |
57.935 |
|
|
|
Selling and Distribution Expenses |
338.976 |
303.446 |
168.259 |
|
|
|
Increased / Decreased in stock |
(110.062) |
(554.404) |
(600.736) |
|
|
|
TOTAL (B) |
4567.572 |
2720.003 |
1491.845 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1533.332 |
1019.617 |
742.011 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
540.156 |
396.540 |
288.917 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
993.176 |
623.077 |
453.094 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
288.086 |
186.139 |
122.421 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
705.090 |
436.938 |
330.673 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
175.413 |
112.523 |
51.604 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
529.677 |
324.415 |
279.069 |
|
|
|
|
|
|
|
|
|
Less/ Add |
Prior Period
Income / (Expenses) |
(2.778) |
(6.199) |
-- |
|
|
|
|
|
|
|
|
|
Less |
Provision for
Final Dividend |
16.753 |
16.523 |
-- |
|
|
Less |
Provision for
Tax on Final Dividend |
2.783 |
2.808 |
-- |
|
|
Less |
Short Provision
for Final Dividend |
-- |
0.885 |
-- |
|
|
Less |
Short Provision
for Tax on Final Dividend |
-- |
0.150 |
-- |
|
|
Less |
Interim Dividend
|
11.015 |
-- |
-- |
|
|
Less |
Dividend Tax on
Interim Dividend |
1.872 |
-- |
-- |
|
|
Less |
Prior year Tax
Adjustment |
-- |
0.055 |
-- |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
743.543 |
485.748 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
50.000 |
40.000 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
1188.019 |
743.543 |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4168.053 |
2309.647 |
1243.859 |
|
|
TOTAL EARNINGS |
4168.053 |
2309.647 |
1243.859 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2893.282 |
1630.309 |
1277.001 |
|
|
|
Machinery/ Equipment / Advances |
2130.520 |
895.218 |
133.805 |
|
|
TOTAL IMPORTS |
5023.802 |
2525.527 |
1410.806 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
45.05 |
29.43 |
29.96 |
|
|
|
Diluted |
42.67 |
26.38 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2010 |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1692.670 |
2089.750 |
2293.430 |
2937.250 |
|
Total Expenditure |
1221.680 |
1541.230 |
1613.490 |
2155.350 |
|
PBIDT (Excl OI) |
470.990 |
548.520 |
679.940 |
781.900 |
|
Other Income |
3.530 |
43.400 |
(7.300) |
5.430 |
|
Operating Profit |
474.540 |
591.930 |
672.640 |
787.290 |
|
Interest |
187.460 |
262.340 |
313.120 |
331.390 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
287.090 |
329.580 |
359.520 |
455.900 |
|
Depreciation |
95.260 |
114.770 |
92.890 |
118.240 |
|
Profit Before Tax |
191.830 |
214.820 |
266.630 |
337.650 |
|
Tax |
54.210 |
62.620 |
62.350 |
77.160 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
137.610 |
152.200 |
204.280 |
260.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
137.610 |
152.200 |
204.280 |
260.500 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 (15 Months) |
31.03.2009 (12 Months) |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.68
|
8.68
|
12.49
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.60
|
11.99
|
14.99
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.02
|
5.19
|
6.19
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.16
|
0.16
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.99
|
2.74
|
1.66
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.76
|
5.41
|
4.10
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The Companies total income increased from Rs.3739.600
Millions for year ended on 31st March, 2009 to Rs.6100.900 Millions for the period
ended on 30th June, 2010. During the year, the Companies profits before
depreciation, interest and taxation (PBIDT) increased from Rs.1019.600 Millions
for the year ended 31st March, 2009 to Rs.1533.300 Millions for the period
ended 30th June, 2010; its net profits for the period increased from Rs.318.200
Millions to Rs.529.600 Millions.
CHANGE IN CAPITAL
STRUCTURE
Issue
and allotment of warrants and shares:
The Company, on 23rd December, 2009, had issued and
allotted 16,00,000 warrants
to RPM International Inc., USA for a cash price of Rs.360/- per
warrant (including a premium of Rs.350/- per warrant), on preferential basis, pursuant
to the terms and conditions of issue of
warrants. These warrants entitle
the holder thereof to exercise the option to convert these warrants into equal
number of equity shares (i.e., in ratio of I: I) within 18 months from the date
of allotment of warrants.
The Company, on 29th April, 2010, raised US$ 50 million
(Rs.2220.500 Millions) through issue of 48,27,200
Global Depositary Receipts (each representing one equity share of Rs.10/-
each) at an issue price of US$ 10.358 per
GDR. Pursuant to GDRs
Issue, the Company
issued and allotted
underlying 48,27,200 equity
shares of Rs.10/- each at a price of Rs.460/- per share (including a premium of Rs.450/- per
share).
Further, on 24th June, 2010, the Company had issued and
allotted 9,11,268 fully paid-up equity
shares of Rs.10/- each to M/s. RPM International Inc., USA against conversion
of their 9,11,268 warrants pursuant to the terms and conditions of issue of
warrants on preferential basis.
Consequent upon issue
and allotment, as aforesaid,
of 48,27,200 and 9,11,268
equity shares aggregating to 57,38,468 equity shares during
the year under report,
the paid-up share capital of
the Company increased from Rs.110.150 Millions to
Rs.167.535 Millions divided into 1,67,53,466 equity shares of Rs.10/-each.
Wholly
Owned Subsidiaries and Joint Venture:
During the year and till the date of this report, the Company has
formed and acquired subsidiary companies and created a joint
venture entity in order to create more business opportunities and to
make strategic investments.
Wholly
Owned Subsidiaries:
The Company has
incorporated on 24th June,
2010, five wholly
owned subsidiary companies with
the Office of Registrar of
Companies, Gujarat, with their
names as Kemrock Advanced Composites Limited; Kemrock Infratech Limited; Kemrock
Speciality Polymers Limited; Kemrock
Filament Windings Limited; and
Kemrock Advance Reinforcements
Limited having objects
of carrying on business relating
to windmill blades, EPC, resins, pipes and carbon fiber respectively. These
companies have also procured certificate of commencement of business, however,
are yet to commence its business.
Overseas
Subsidiary:
On 26th May,2010, the
Company has acquired 80% stake in Top Glass
S.p.A., one of the chief and highly qualified producers of
Pultruded Composite Profiles,
situated 20 Kms. north east of Milano, Italy.
Joint
Venture Company:
The Company has also entered into a 50:50Joint Venture with
SAERTEX Beteiligungsgesellschaft mbH and Company KG., Germany. The name of newly
formed 50:50 Joint Venture Company incorporated with the Registrar of
Companies, Gujarat, is Saertex-Kemrock India Private Limited. The company is
formed to manufacture various components for Indian and global aeronautical
industry.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMY
OVERVIEW:
2009-10 was largely an year of resurgence for the Indian
economy. As per the CSO (Central
Statistical Organization)
estimates, the growth in
Gross Domestic Product (GDP) was
7.4 per cent in 2009-10 as compared to a
level of 6.7 per cent in 2008-09. The economic
resurgence was spearheaded
by robust performance of manufacturing sector in wake of sustained government and consumer spending.
Indian economy is expected to perform with an increasing
trend in both the industrial and
agricultural sectors showing good
sign of
its positive journey and the
prospects of the Indian Composites industry is slated to be consistent with the
country's economic development in coming years.
COMPOSITES
INDUSTRY OVERVIEW:
Composites are new age products and are ideal replacement
for conventional materials such as
steel, aluminium and wood on account of its
durability, corrosion and maintenance
free character. The composites
are finding increased usage and
applications in more than 30,000 products.
The global composite
industry is estimated at about USD85
billion. North America and
Europe accounts for about three
quarters of the
composite industry's total
market. The Asia-Pacific region represents about 20 per
cent of the market and the rest for the world accounting for the remainder.
Indian composites industry has progressed at more than twice
the GDP growth rate, reflecting the
upbeat economy and strong
fundamental drivers for growth.
India is the fastest growing market
for composite materials, registering double-digit
growth during the past five
years. The Indian composites industry offers an
attractive value proposition based on its low cost manufacturing
base, world class automated processes
coupled with strong design and
product development expertise.
GLOBAL
OUTLOOK:
Market projections suggest that Asia will be leading the
growth in global composites industry,
with CAGR of more than 9 per cent by 2013 compared to global growth
of 4.9 per cent. At this growth rate, Asia will
represent around 40per cent of the total composites market.
* The major growth of
composites will be seen in the Aeronautics
industry from 15 per cent to 20 per cent mainly led by revival of air
transportation business and increased usage of composites, replacing
older generation air-crafts with
low weight composites. The Aeronautics industry is expected to grow at 6.4 per
cent per year in volume between 2005 and 2015.
* Another major sector of growth is Automobile industry
again led by Asia-Pacific as
compared to developed countries. The Asian-Pacific market
is expected to account for 51 per
cent of the composite industry in 2015
vs. 36per cent in 2006 in volume.
* Composites for windmill blade application are expected
to grow
at 9 percent in volume per year
between 2005 and 2015.
* According to the industry estimates, the market for
composite materials in India is expected
to grow at a CAGR of 17.4 per cent between
2009-2014 worth USD 1400 million.
KEY
DEMAND DRIVERS:
Advantage
Composites:
The
opportunities for the composite
market is manifold due to
increasing demand and the
persistent need of the industries to reduce energy use and costs
by producing increasingly light weight structures without affecting their strength. Its enormous light
weight and corrosion resistant materials and structures results in enormous
benefits and energy saving. Further, a relatively large
flexibility with regard to the manufacturing scope
is certainly considered to be a definite advantage of processors of
reinforced plastics.
There are many usages
of composite products but the major
application of composites is
on increasing trend in Wind
energy, infrastructure and transportation sector. Besides, the
Technology Information, Forecasting and
Assessment Council (TIFAC), an autonomous organization under
Department of Science and
Technology (DST) in India has launched a mission to
develop necessary technologies to
increase use of composites
in transport and building sector.
WIND ENERGY
Wind energy is a rapidly growing market segment for the
composites industry and is a fastest growing energy sector. On an
average, the global
wind energy market is
growing at a rate of 23 per cent
p.a., since last ten years.
A growing sensitivity for the environment and depleting reserves of fossil
fuels are all fueling the growth
of wind energy in 21st century. Further, the
Government support through incentive
schemes and strong research budget
allocation is an added advantage to the
growth of wind energy in Economy.
Most of the critical components of a wind turbine use
composites and the need for bigger size
turbines means more composite usage per turbine. Composites consumption in the
global wind energy market has grown 23 times in last 12 years.
Wind turbine requires
the manufacture of large
rotor blades, nacelles and
other components using wet
lay-up, VARTM, prepreg
lay-up and other processes.
The wind energy in India is growing at the CAGR of 16.6 per
cent. The Indian wind energy
sector has an installed capacity of 11807.00 MW (as on March 31,2010). In terms
of wind power installed capacity, India
is ranked 5th in the World.
The wind energy
market for composites is estimated to reach $4.3billion in
2013 according to anew market study.
RAILWAYS:
Composites, the wonder material with light-weight, high strength-to-weight ratio and
stiffness properties has witnessed an ever increased usage
in Railway industry where resultant performance improvement and
achievable cost reduction are significant. Weight savings of up to 50
per cent
for structural and 75 per cent
for non-structural applications
brings associated benefits of
high-speed, reduced power
consumption, lower inertia, less
track wear and the ability to carry greater pay-loads.
Composites find major
application in passenger coaches
for excellent structural properties and improved aesthetics.
Components of coaches are generally
made of glass fibre
reinforced with polyesters/epoxies and phenolic
resins. Its fire resistant properties ensure full safety to the
entire system. The improved design features and performance characteristics
of composite products have evoked keen
interest among Indian Railways in substituting the existing conventional
materials.
Today's performance
requirements for the global rail industry demand that trains
travel faster and carry more passengers and freight. Improved fire, smoke
and toxicity (FST)properties are
also desired for
enhanced safety as rail systems carry more people.
Since
requirement of replacement of
rail coaches is on a rising
trend, Indian Railways has
further stated that
there would be
a need of approximately 2,500 to 3,000 coaches per
year over the next few years.
The railways' annual
requirement is estimated
to be 4,500
coaches, including air-conditioned coaches, during the 11-Plan period
from 2007-12. Composites in the Indian
railway industry is growing at CAGR of 20 percent.
PULTRUSION
PRODUCTS:
Pultruded Composite
profiles are increasingly being used in a
variety of applications like
cooling towers, mobile towers,
structural process
equipment support etc. With the high
strength, low weight, non-corrosive features, fiber reinforced polymer (FRP) materials are
rapidly growing in demand, and
FRP pultrusion are leading the way. The
amount of energy required fabricating
FRP composite materials for
structural application with
respect to conventional materials such as steel and aluminium is lower and would work for
its economic advantage in the
end. Some of
the major applications are in oil platforms, chemical industry,
cable tray systems, ladders and scaffolding, cooling towers and telecom
towers. A composites application in the
cooling tower industry in India is growing at CAGR 17.1 per cent. The telecom industry in India
is growing at CAGR of 8 percent.
AEROSPACE:
The Indian aerospace
market has been witnessing steady growth in the
past decade on account
of success track
record of several
domestic and international aerospace
projects. India is expected to
procure USD 100 billion
in defense purchases over the next 10-12 years and the
statutory defense offset policy of 30 per cent is expected to provide
significant opportunities in Indian aerospace market. A survey
estimates the offset opportunities to
touch USD I I billion over
the next
5 years opening opportunities for carbon fiber
reinforced plastic (CFRP) parts.
Aircraft and rotorcraft
parts made from
high-performance composite
materials are superior to earlier
generation metals due to their increased
strength, reduced weight, and increased
service life. For these reasons, most
aircraft part designers choose to
create new parts out of
carbon-fiber-reinforced plastic
despite the challenges involved, namely that
the manufacture of CFRP parts is more complex than
traditional materials and can therefore make parts more costly to
produce.
Filament
Winding (Pipes and Tanks):
The filament winding
technology has established itself worldwide
as a very fast and
efficient method to manufacture
strong, lightweight composite products.
The filament wound
components namely pipes and tanks, are widely
accepted in most of the developed countries, are now fast catching up in
other parts of the world. The FRP/GRP
pipes are preferred for providing an economical solution to
severe corrosion problems in
addition to its light
weight and flame retardant
properties. Due to resistance to crude oil as
well as ability to
withstand relatively high
pressures, these FRP/GRP
pipes are gaining preference over the traditional pipes. The
advantages of FRP pipes are particularly the outstanding
longevity, the elasticity even with
specific rigidity and the possibility of special shaping.
The sewer pipe application in
India provides a great opportunity
for the composites industry.
The composite pipes
industry requirement in India is having
a share of about
32 per cent of the total
composites used in the Indian Composites Industry.
Thermo-setting
Resins Industry:
Thermo-setting resin (the 'matrix') is one of the two
important components of any Composite
product (the other being fiber, a reinforcement).
The Global
Thermosetting resin industry is around USD 9.00 billion.
The Resin market will show a corresponding growth as the Composites
market.
Indian resin
industry is largely
unorganized and is
geographically fragmented.
Unsaturated (thermoset) polyester is expected to remain the
main resin and account for 80 percent of
all demand because of its low cost and
excellent properties. Vinyl
esters are expected to grow in importance
where higher levels of corrosion and temperature resistance are
mandated. Epoxy resin usage
is expected to be determined by the fact that they have the highest mechanical properties of all major
resins used, but are also higher-priced
and difficult to
process. Phenolic resin usage
is expected to
be in applications where enhanced
fire, smoke and toxicity reduction is required. Hence, it can be expected that in the Indian market
also, phenolic resins for FRP products
would be used in specialized applications.
The thermo-set resin market for Composites application is
estimated to be 1,20,000 TPA in India,
with a CAGR of > 20 percent
p.a. Unsaturated polyester resin market
in India is the
largest with as hare of 80 per cent
in composites, followed by Epoxy resins and Phenolic resins.
The Company is a
leading manufacturer of thermo-set resins
and also a manufacturer of Composites. Being
vertically integrated, it is in a unique position to offer customized solutions
to other end-use industry as well, thus giving it a competitive edge.
Carbon
fibre – the next big thing! :
Carbon Fiber is an extremely strong thin fiber about 0.005-0.010
mm in diameter and composed
mostly of carbon atoms. It is known for its excellent tensile strength, low weight, low thermal expansion,
heat resistance and chemical
resistance. Superior to the other
high performance fiber,
the property of crystal alignment makes the fiber strong. These fibers
are used as reinforcing moulds, heat
insulating materials and as a raw material
for the manufacture and
design of special utility components
of aviation machine, space
rockets, commercial and
defense aerospace industries, Industrial applications
such as wind energy, high speed
transportation, marine, civil
engineering, fuel cells and tanks etc. The market for these applications is growing at an average
rate of 10 per cent to 30per cent.
Among global market segments, industrial application market
is the largest with 60 per cent of the total carbon fiber market,
Aerospace ranks second with 20per cent and sporting goods ranks third
accounting for the balance of 20 per
cent. According to a survey, global carbon fiber market is estimated to
reach$2.4 billion in 2014.
The usage of carbon
fiber in specialized segments such as high
end luxury cars, sports
cars, formula I racing
cars, aircraft, space
vehicles, rockets,
industrial rollers, wind
turbine blades and golf
shafts is well accepted.
Because of its properties, the
demand for carbon fibers
has increased. Presently carbon fiber market is going
through a phase of huge gap in
demand and supply. The shortage
of carbon fiber is caused by a
booming aerospace industry, and the fact that new passenger aircraft being built
contain far higher levels of
carbon fiber than was previously the case. In the industrial segment, the wind
energy market is also causingdem and for
carbon fiber.
Geographically the demand for carbon fiber is the highest in
Europe, and is forecasted to reach 52
per cent by 2015, compared to 18 per cent for
Asia, 15 per cent for US and 15
per cent for Japan.
COMPANY OVERVIEW:
About the company:
They are company one of the largest manufacturers of composites products in India. The
Company provides the largest
portfolio of composite
products and delivers
both ready and customised solutions
that are ideal
replacements for traditional materials prone to corrosion and maintenance. The
Company's product range includes
Windmill Blades, Rail
Coach Interiors and
Exteriors, Cable Management
Systems, Pultruded profiles, Gratings, Piping Systems, Lighting Poles, Access Systems and
Thermosetting Resins; and now Carbon Fibre.
Company incorporated in 1991, is headquartered at Vadodara,
Gujarat and have established
a prominent position across domestic
and international markets, including product presence in over 50
countries. It is listed on BSE, NSE and LuxSE.
CHANGE
IN FINANCIAL YEAR:
The financial year 2009-2010 of the Company was extended by
3 months upto 30th June, 2010
and hence the accounts of the Company have been prepared for the period of
fifteen months.
Major
performance highlights:
* The Company crossed the Rs.6 bn turnover mark
* Total production of composites increased by 122.34%
* Total operational revenues (net) increased to Rs.6078.300 Millions
for the 15 months ended 30th June, 2010
* EBIDTA increased to Rs.1533.300 Millions
* Net profits increased to Rs.529.700 Millions
* EPS (basic) increased to Rs.450.500 Millions
Major
developments during the period:
The Company turned on a new leaf in its operations by
undertaking two major initiatives during the year. The Company achieved
successful completion of its expansion
programme and established its carbon fibre unit at Vadodara. On the other hand, the Company also expanded inorganically by
acquiring majority stake in Top
Glass S.p.A, an Italian company, also being
one of the premier glass
companies in the world, with presence across key European and South American
markets.
CARBON
FIBER:
The Company has set
up its first and also India's first
commercial scale integrated carbon
fiber manufacturing facility to produce
aerospace and commercial grade
carbon fiber for
defense, aerospace, wind
energy, infrastructures, automobile, offshore and sports sectors.
Honourable Dr. A.RJ. Abdul Kalam, distinguished former
President of India, inaugurated the state-of-the-art facility at Vadodara, in
presence of eminent scientists and dignitaries on 9th May 2010.
This fully integrated plant, which includes polymerization, wet spinning
and carbonization was established with
technology know-how from
CSIR- National Aerospace Laboratory, Bangalore, with an
initial capacity of 400tonnes per annum.
The Company will manufacture carbon fibre composites and prepregs for advanced composites applications,
which would serve the defense,
aerospace, wind energy,
transportation and infrastructure sectors. Carbon fibre reinforced composites have high strength and
stiffness and are also very light weight. With the commissioning of this unit,
the Company completes its most coveted project
since its inception. This would propel the Company
to greater heights in the coming
years. The carbon fibre capability
will be a strategic
fit to Company's
existing operations, augmenting
resin production, technical fabric capability and mouldingability.
ACQUISITION
OF TOP GLASS S.P.A., ITALY:
During the period
under review, the Company acquired 80 per cent share in Italy based Top Glass, S.p.A. With a
proven track record of more than four
decades in the business of different composite
profiles, Top Glass
has expertise in advanced and complicated technologies, which shall be
used by Kemrock for Indian and Asian market to increase its
market size. Having a customer base in
France, UK, Germany, China, Switzerland,
Portugal, USA, Brazil, Spain, this acquisition will open
the gateway for Kemrock
to enter effectively in European and US market,
which jointly accounts for three fourth
of composite market share in the world. With
low cost manufacturing base in India, Kemrock shall be able to supply
the final products in European market at the most competitive rates.
Currently, Top Glass
has two facilities where pultruded
profiles are produced. One in
Pioltello (near Linarte Airport in Milan), and another in Osnago (50km from Milan).
This acquisition will
help Kemrock to learn and adapt to
the needs of European
market from the rich experience of Top Glass. With this type
of synergy, Kemrock can
explore new applications and cater
to potential customers and sell
the goods under Top Glass brand in Europe and US.
In other words, this
acquisition would reinforce the Company's
reputation as a leader for composite manufacturer in Asia.
EXPORTS:
The Company exports
its products to more than
50countries. The export turnover during the year 2009-10 was
4281.700 Millions representing 68 per
cent of total turnover of the Company recording a growth of 58.47 per
cent over previous year.
FINANCIAL
PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The Company clocked a gross sales of Rs.6293.800 Millions
for the period ended 30th June 2010 (15
months from 1st April 2009 to 30th June 2010) as against Rs.3790.500 Millions
for the previous year (12 months from 1st April
2008 to 31st March 2009)
registering a growth of 66 per cent. The Profit After Tax for the year under review grew by 61.39 per cent
to Rs.705.100 Millions from Rs.436.900
Millions in the previous year.
The Company achieved
an operating profit (PBIDT) of Rs.1533.300 Millions for the
current year under
report as compared
to Rs.1019.600 Millions in previous year depicting an increase of
50.38 per cent.
Earning Per Share (Basic) for the year was Rs.45.05 per
share as against Rs.29.43 per share in previous year.
SEGMENT-WISE
AND PRODUCT-WISE PERFORMANCE:
The Company is
primarily engaged in the
manufacture of Fiber
glass Reinforced Polymer (FRP) Composites and Resins having
international and domestic
markets.
The total turnover of FRP Composites during the year under
report was Rs.4928.400 Millions
(current year) as against Rs.2216.600 Millions (previous
year) showing a growth of 122.34 per cent. However, Resin segment
reported a gross turnover of
Rs.1149.800 Millions as against Rs.1425.500 Millions in previous year.
The Company recorded an export turnover of Rs.4281.700
Millions representing 68 per cent of the total turnover during the current
year. Whereas, domestic turnover of the
Company for the current year stood
at Rs.2012.100 Millions representing 31.97 per cent of total
turnover.
SWOT
Analysis
Strengths:
* The largest manufacturer of new age composites in India
* Three decades of proven expertise and focus
* Access to educated and credible intellectual capital
* Competence to offer and develop wide range of composite
products
* Qualified management team
* A well-defined and scalable organization structure, capable
of supporting surging growth
* Preferred supplier to a world-renowned clientele
* Continuous innovation and quality control
Weakness:
* Operates in a business segment largely driven by
infrastructure spending; therefore any slowdown in economy may result in lower
demand
* Largely a sunrise industry; the consumers need to be
educated
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
|
Particulars |
30.06.2010 (15
months) |
31.03.2009 (12
months) |
|
|
|
|
|
Letters of Credit issued by Bank on behalf of the Company |
118.923 |
503.232 |
|
Guarantees issued by Bank on behalf of the Company |
99.633 |
5.818 |
|
Estimated amounts of Contracts remaining unpaid on Capital
Account |
79.059 |
417.236 |
|
Disputed Income Tax Demands (not acknowledged) against
which proceedings are pending before Income Tax Authorities |
6.223 |
1.675 |
|
Litigations against the Company |
2.185 |
2.185 |
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 31st
MARCH, 2011
Rs
In Millions
|
Sr. No. |
Particulars |
Unaudited Results for the Quarter ended |
Unaudited Results for the Nine months ended |
|
|
|
31.03.2011 |
31.03.2011 |
|
|
|
|
|
|
1 |
Gross Sales |
2342.427 |
6209.288 |
|
|
Less: Excise Duty/Service
Tax |
48.995 |
133.411 |
|
|
(a) Net Sales / Income from
Operations |
2293.432 |
6075.877 |
|
|
(b) Other Operating Income |
- |
- |
|
|
Total [1] |
2293.432 |
6075.877 |
|
|
|
|
|
|
2 |
Expenditure |
|
|
|
|
(a) (Increase) / Decrease in stock in trade
and work in progress |
(98.439) |
(389.541) |
|
|
(b) Consumption of Raw Materials |
1304.539 |
3581.803 |
|
|
(c) Purchase of traded goods |
- |
- |
|
|
(d) Employees cost |
99.063 |
294.025 |
|
|
(e) Depreciation |
928.93 |
302.923 |
|
|
(f) Other Expenditure |
308.329 |
890.114 |
|
|
Total [2] |
1706.385 |
4679.324 |
|
|
|
|
|
|
3 |
Profit from Operations before Other Income,
Interest and Exceptional Items [1 - 2] |
587.047 |
1396.553 |
|
4 |
Other Income |
(7.302) |
39.632 |
|
5 |
Profit before Interest and Exceptional
Items [3 + 4] |
579.745 |
1436.185 |
|
6 |
Interest |
313.119 |
762.918 |
|
7 |
Profit after Interest but before
Exceptional Items [5 - 6] |
266.626 |
673.267 |
|
8 |
Exceptional items |
- |
- |
|
9 |
Profit(+)/Loss(-)from Ordinary Activities
before Tax [7+8] |
2,66.626 |
673.267 |
|
10 |
Tax Expense |
62.347 |
179.178 |
|
11 |
Net Profit(+)/Loss(-)from Ordinary
Activities after tax [9-10] |
204.279 |
494.089 |
|
12 |
Extraordinary Items (net of tax expense Rs.
Nil) |
- |
- |
|
13 |
Net Profit (+) / Loss (-) for the period
[11 - 12] |
204.279 |
494.089 |
|
14 |
Paid up Equity Share Capital (Face Value
Rs. 10/- per Share) |
167.535 |
167.535 |
|
15 |
Reserves excluding Revaluation Reserves as
per balance sheet of previous accounting year |
- |
- |
|
|
|
|
|
|
16 |
Earning Per Share (EPS) |
|
|
|
|
(a) Basic and diluted EPS before Extraordinary
items for the year and for the previous year (not annualized) |
|
|
|
|
- Basic
EPS for the period |
12.19 |
29.49 |
|
|
-
Diluted EPS for the period |
11.71 |
28.33 |
|
|
(b) Basic and diluted EPS after
Extraordinary items for the year and for the previous year |
|
|
|
|
(not annualized) |
|
|
|
|
- Basic
EPS for the period |
12.19 |
29.49 |
|
|
-
Diluted EPS for the period |
11.71 |
28.33 |
|
|
|
|
|
|
17 |
Public Shareholding |
|
|
|
|
- No. of Shares |
11,787,790 |
11,787,790 |
|
|
- Percentage of Shareholding |
70.36 |
70.36 |
|
|
|
|
|
|
18 |
Promoters and promoter group Shareholding |
|
|
|
|
(a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
3,069,500 |
3,069,500 |
|
|
- Percentage
of shares (as a % of the total shareholding of promoter and promoters group) |
61.81 |
61.81 |
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
18.32 |
18.32 |
|
|
|
|
|
|
|
(b) Non-encumbered |
|
|
|
|
- Number of shares |
1,896,176 |
1,896,176 |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoters group) |
38.19 |
38.19 |
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
11.32 |
11.32 |
SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED
(Rs
In Millions)
|
Sr. No. |
Particulars |
Unaudited Results for the Quarter ended |
Unaudited Results for the Nine months ended |
|
|
|
31.03.2011 |
31.03.2011 |
|
1 |
Segment Revenue |
|
|
|
|
FRP Products |
1972.188 |
5258.643 |
|
|
Resins |
468.702 |
1239.474 |
|
|
Total Segment Revenue |
2440.890 |
6498.117 |
|
|
|
|
|
|
|
Less : Inter Segment Revenue –
Results |
147.459 |
422.241 |
|
|
Net Sales / Income from Operations |
2293.431 |
6075.876 |
|
|
|
|
|
|
2 |
Segment Results |
|
|
|
|
FRP Products |
534.967 |
1336.129 |
|
|
Resins |
43.295 |
92.086 |
|
|
Total Segment Results |
578.262 |
1428.215 |
|
|
Less : Interest (Net) |
317.362 |
759.261 |
|
|
Less : Unallocable Expenses |
(5.726) |
(4.313) |
|
|
Total Profit Before Tax |
266.626 |
673.267 |
|
|
|
|
|
|
3 |
Capital Employed (Segment Assets – Segment Liabilities) |
|
|
|
|
FRP Products |
15241.828 |
15241.828 |
|
|
Resins |
995.033 |
995.033 |
|
|
Un-allocable |
(10064.472) |
(10064.472) |
|
|
Total |
6172.389 |
6172.389 |
NOTES:
·
The above results
have been reviewed by the Audit Committee and thereafter approved by the Board of
Directors of the Company at their meeting held on 10th May,
·
The segments have
been identified in accordance with the Accounting Standard on Segment Reporting
(AS-17) issued by the Institute of Chartered Accountants of India(ICAI).
·
The figures for the
previous year have been regrouped/ rearranged wherever necessary to make them
comparable.
·
Details of investor
complaints for the quarter ended 31st March, 2011: Beginning-Nil;
Received-Nil; Disposed off-Nil; Lying unresolved-Nil.
· The Company has opted to publish standalone financial results pursuant to an option available under clause 41 of the Listing Agreement
FIXED ASSETS
·
Land
·
Building
·
Plant
and Machinery
·
Furniture
·
Office
Equipments
·
Vehicles
WEBSITE DETAILS:
BUSINESS DESCRIPTION
Subject is an India-based company. KIEL is engaged in the manufacture of fiberglass reinforced polymer (FRP) composites and resins in India. It provides a portfolio of composite products and delivers both ready and customized solutions that are replacements for materials that are prone to corrosion and maintenance. The Company's product range includes windmill blades, rail coach interiors and exteriors, cable management systems, pultruded profiles, gratings, piping systems lighting poles, access systems and thermosetting resins and carbon fiber. It has set up a commercial scale integrated carbon fiber manufacturing facility to produce aerospace and commercial grade carbon fiber for defense, aerospace, wind energy infrastructures, automobile, offshore and sports sectors. The Company exports its products to more than 50 countries. In May 2010, the Company acquired 80% interest in Top Glass S.p.A. For the fiscal year ended 30 June 2010, Subject revenues totaled RS7.25B. Net income totaled RS550.3M. Results are not comparable since the company has not reported the corresponding prior year financials due to the yearend changed from March 2009 to June 2010 and the company is reporting consolidated financials for the first time. The Company is engaged in the manufacture of fiberglass reinforced polymer
HISTORY
2009 As the
growth of the composites industry globally has been dramatic, Kemrock has
strategically capitalized on this long term boom, creating a Global Composite Village.
2008 One of
the largest and most integrated GRP composite manufacturing facilities in the
World.
2007 KIEL
added BMC (Bulk Moulding Compounds) productions to its capability.
Commercial
production of filament would pipe, up to 1.4 meters (55 inches) in diameter.
In April
2007,in the face of severe competition from Indian based multi-nationals,
Offering
complete composite solutions to strategic partners around the world, making it
one of the largest and most integrated composite manufacturing facilities in
the World.
2006 Georgia
Pacific and KIEL formed Georgia Pacific Kemrock international private limited
to manufacture and supply thermosetting resins to the Indian sub-continent and
the GCC countries of the Middle East.
National
Aerospace Laboratories (NAL), a constituent of Council of Scientific and
Industrial Research (CSIR), is India's pre-eminent civil R and D establishment
in aeronautics and allied disciplines
2005 KIEL
began Production of Unsaturated Polyester and Vinyesters
Commenced
Production and
Established
a joint venture with Top Glass s.p.a. for manufacture of high end pultruded
products and lighting Poles.
2004 Obtain
ISO 9000-2001 certification
2003 Kemrock
Industries and Exports Limited moved from its limiting city location to a new
site at Asoj village, north east of Baroda.
KIEL
entered into a strategic alliance with Stoncor Group, Inc for the licensed
manufacture and supply of moulded and
pultruded grating along with pultruded standard structural shapes to
Fibergrate, Inc.
2002 KIEL
manufactured the cable racking on behalf of Fibergrate Inc., thereby beginning
their relationship.
1996 The
First Global Tie-up Creative Pultrusions, Inc.,
1995 Manufactured
Wind Mill Nacelle Covers for Suzlon Energy Limited
1981 Kemrock
Industries and Exports Limited began the manufacturing of moulded composites products
in 1981.
MANGEMENT
NAVIN PATEL -
NON-EXECUTIVE NON-INDEPENDENT DIRECTOR
Mr. Navin Patel is the Non-Executive Non-Independent Director of Kemrock Industries and Exports Limited. He holds Master in Mathematics and Computer Science. He has over 25 years of experience
K. K. RAI -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. K. K. Rai is the Non-Executive Independent Director of
Kemrock Industries and Exports Limited. He holds Bachelor of Arts and is a Member
of C.A.I.I.B. He is retired Banking Professional having 40 years of experience
and had held important portfolios during his employment. With Allahabad Bank,
he officiated as CMD for three quarters; acted as Executive Director pursuant
to selection as whole-time Director by Government of India. He has been a
director of Techno Electric and Engineering Company Limited, UB Engineering
Limited, V. S. T. Tillers Tractors Limited, Canara Bank Securities Limited.
NEWS
RPM INTERNATIONAL TO MAKE OPEN OFFER FOR
22.289% IN KEMROCK INDUSTRIES
13 May 2011
India, May 13 -- RPM International Inc, the US-based specialty chemicals group will make an open offer for Kemrock Industries and Exports to buy 22.289% equity, or 3.7 million shares, at Rs 539 per share of the company. The offer opens on July 07, 2011 and closes on July 26, 2011.RPM International which already holds 14.996% of the equity and 13.456% of diluted equity capital of Kemrock Industries will spend up to Rs 167.700 millions for the additional stake. Kemrock Industries & Exports manufactures and exports high-performance reinforced thermoset composites, commercially known as GRP/FRP Composites. It manufactures products for major industrial sectors and its product range comprises of gratings, poles, pipes, scaffolding (access system), pultruded profiles, cable management system, cage ladders, windmill blades and nacelle covers, railway interiors and exteriors, SMC/ FRP Doors, telecom towers etc.RPM International Inc., is a multinational holding company with subsidiaries that manufacture, market and sell various specialty chemical product lines, including high quality specialty paints, protective coatings, roofing systems, sealants and adhesives, focusing on the maintenance and improvement needs of both the industrial and consumer markets.
KONINKLIJKE DSM NV ANNOUNCES PARTNERSHIP FOR SPECIALTY RESINS WITH
KEMROCK INDUSTRIES AND EXPORTS LIMITED IN INDIA
Mar 01, 2011
Koninklijke DSM NV, the global Life Sciences and Materials Sciences company, announced that it will start a partnership with Kemrock Industries and Exports Limited in India for the production of specialty composite resins in India. DSM and Kemrock together will invest USD25 million in the joint venture. With this partnership DSM, one of the composite resins providers in the world, will structurally strengthen its presence in India and leverage its depth of technological knowledge and global customer relationships. Both partners will utilize and leverage each other's strengths whereby DSM will focus on the supply of specialized composite resin solutions to the fast growing Indian market while Kemrock will concentrate on the production of high end composite parts. DSM will hold 51% and Kemrock 49% in a joint venture, which will be based in Pune. In addition to the joint venture, DSM will establish its own local marketing and sales company for composite resins to serve the Indian domestic market
KEMROCK INDUSTRIES ANNOUNCES PARTNERSHIP FOR SPECIALTY RESINS WITH
DSM COMPOSITE RESINS
Mumbai, March 03, 2011:
Kemrock Industries and Exports Limited (KIEL), a leading manufacturer of
Reinforced polymer composites, today announced that the company has entered
into joint venture with Swiss-based € 9 billion DSM Composite
Resins AG for the production of specialty composite resins in India. DSM and
Kemrock together will invest USD 25 million in the joint venture.
With this partnership DSM, one of the leading composite resins providers in the
world, will structurally strengthen its presence in India and leverage its
depth of technological knowledge and global customer relationships. Both
partners will utilize and leverage each other’s strengths whereby DSM will
focus on the supply of innovative specialized composite resin solutions to the
fast growing Indian market while Kemrock will concentrate on the production of
high end composite parts.
DSM will hold 51% and Kemrock 49% in a joint venture, which will be based in
Pune. In addition to the joint venture, DSM will establish its own local marketing
and sales company for composite resins to serve the Indian domestic market.
Kalpesh Patel, Chairman and Managing Director, Kemrock said: “With this
alliance with DSM, Kemrock will strengthen its expertise in composites
manufacturing and provide customized solutions to the fast growing Indian and
global composites market.”
Nico Gerardu, Member of the DSM Managing Board and responsible for the
Performance Materials cluster, said: “This joint venture fits with all
four growth drivers of our strategy DSM in motion: driving focused growth and provides an
excellent opportunity to further grow our composite resins business in India.
In addition, this joint venture re-confirms our longstanding commitment to
India, a country that has become an important market for DSM. ”Michael Effing,
President, DSM Composite Resins, added: “We are excited to start working with
Kemrock Industries, a well-known and highly respected partner and market leader
in India in composite parts. We are convinced that our joint venture will play
an important role in the fast growing market for composites in India, as the
number of applications and markets continues to grow. Our composite resins for
instance do not only increase the yield of wind turbines, they can also replace
metal in automotive applications.”
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.49.38 |
|
|
1 |
Rs.79.19 |
|
Euro |
1 |
Rs.67.84 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.