MIRA
INFORM REPORT
|
Report Date : |
23.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
ION EXCHANGE INDIA LIMITED |
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|
|
|
Registered Office : |
ION House, Dr. E. Moses Road, Mahalaxmi, Mumbai-400011,
Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
06.03.1964 |
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Com. Reg. No.: |
11-014258 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.134.259
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74999MH1964PLC014258 |
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|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI04982F |
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|
PAN No.: [Permanent
Account No.] |
AAACI1726L |
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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 : |
Manufacture and sale of ion exchange resins, water
treatment plants and chemical additives. |
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|
|
|
No. of Employees : |
940 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5893668 |
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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 an old and established company having fine track. Financial
position of the company is good. Trade relations are reported as fair. Business
is active. Payments are reported to be regular and as per commitments. The company can be considered good. For normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office / Corporate Office : |
ION House, Dr. E. Moses Road, Mahalaxmi, Mumbai-400011, |
|
Tel. No.: |
91-22-24939520 / 523 / 525 / 31 / 32/24938737 / 39890909 |
|
Fax No.: |
91-22-24938737 |
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E-Mail : |
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Website : |
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Factory 1 : |
581-12-13, GIDC, Ankleshwar Industries Estate, Ankleshwar – 393002,
Bharuch, |
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|
|
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Factory 2 : |
R – 14, TTC, MIDC, Near |
|
Tel. No.: |
91) 22 3989 0909/ 3047 2400 |
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Fax No.: |
91) 22 2769 7918 |
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E-Mail : |
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|
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Head Office : |
6-3-659, 1st Floor, |
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|
|
|
Regional Offices: |
Located at :- · Kolkata, West Bengal · Chennai, Tamilnadu · Delhi ·
Mumbai, Maharashtra |
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|
|
|
Overseas Office : |
·
Pune, Tel. 91-212-27124284 / 27124062
Tel. 91-22-27632466/67/68 Fax 91-22-27631122 |
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|
|
|
Branches : |
Located at :-
|
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. G. S. Ranganathan |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. R. Sharma |
|
Designation : |
Vice Chairman and Managing Director |
|
|
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|
Name : |
Mr. M. R. Menon |
|
Designation : |
Director |
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|
Name : |
Mr. D. G. Rao |
|
Designation : |
Director |
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|
Name : |
Dr. V. N. Gupchup |
|
Designation : |
Director |
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|
Name : |
Mr. M P Patni |
|
Designation : |
Director |
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|
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|
Name : |
Mr. T. M. M. Nambiar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A K Marfatia |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. P Sampathkumar |
|
Designation : |
Additional Director |
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|
|
|
Name : |
Mr. Dinesh Sharma |
|
Designation : |
Director |
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|
Name : |
Mr. Aankur Patni |
|
Designation : |
Director |
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|
Name : |
Mrs.K J Udeshi |
|
Designation : |
Additional Director |
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|
Name : |
Mr. Shishir Tamotia |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Abhiram Seth |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Milind Puranik |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. N M Ranadive |
|
Designation : |
Vice President – Finance |
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|
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|
Name : |
Dr. S. V. Mahendale |
|
Designation : |
Vice President – Resin and Membrane
Division |
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|
|
|
Name : |
Mr. S. N. Iyenger |
|
Designation : |
Vice President – Standard Systems |
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|
Name : |
Mr. A. Mohapatra |
|
Designation : |
Vice President-HRD |
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Name : |
Mr. A. Popat |
|
Designation : |
Vice President-Corporate Marketing |
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|
Name : |
Mr. L V Keshav |
|
Designation : |
Vice President-Rand D, Corporate Quality
and Environment Management |
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|
|
Name : |
Mr. R. S. Rajan |
|
Designation : |
Vice President-Consumer Products |
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|
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|
Name : |
Mr. Anil Khera |
|
Designation : |
Vice President Chemicals Division |
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|
|
|
Name : |
Mr. J.P. Pathare |
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Designation : |
Vice President International Division |
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|
Name |
Mr. Jayant Pimpale |
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Designation |
Vice President Materials |
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|
|
|
Name |
Mr. Sridharan Mahadevan |
|
Designation |
Vice President Human Resources |
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|
|
|
Name |
Mr. Manoj G. Shivdasani |
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Designation |
Vice President Projects |
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|
|
|
Name |
Mr. Souvik Ghosh |
|
Designation |
Vice President Heavy Industry Segement |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2,229,921 |
16.47 |
|
|
614,958 |
4.54 |
|
|
2,672,514 |
19.74 |
|
|
2,672,514 |
19.74 |
|
|
5,517,393 |
40.76 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
5,517,393 |
40.76 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
6,234 |
0.05 |
|
|
410 |
- |
|
|
194,730 |
1.44 |
|
|
156 |
- |
|
|
201,530 |
1.49 |
|
|
|
|
|
|
1,257,549 |
9.29 |
|
|
|
|
|
|
3,556,975 |
26.28 |
|
|
2,894,608 |
21.38 |
|
|
108,106 |
0.80 |
|
|
1,010 |
0.01 |
|
|
107,096 |
0.79 |
|
|
7,817,238 |
57.75 |
|
Total Public shareholding
(B) |
8,018,768 |
59.24 |
|
Total (A)+(B) |
13,536,161 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
13,536,161 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and sale of ion exchange resins, water
treatment plants and chemical additives |
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Products : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Ion Exchange Resins |
M3 |
13200 |
13505 |
|
Water Treatment Plants |
Nos. |
NA |
52926 |
|
Chemical Additives |
Tonnes |
10000 |
10918 |
Note:
- Installed capacities mentioned above have been determined based on
single shift by the company’s technical officials and have been accepted by
the auditors without verification, as it is a technical matter.
- There are licenses for other items for which there are no
manufactured goods.
- Due to innumerable types of consumer products manufactured by the
company, quantitative information has not been furnished.
- Sales quantity of ion exchange resins, chemical additives and water
treatment plants include quantity utilized for captive consumptions.
GENERAL INFORMATION
|
No. of Employees : |
940 (Approximately) |
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Bankers : |
·
Bank of India ·
Canara Bank ·
State Bank of India ·
Axis Bank Limited ·
Punjab National Bank ·
EXIM Bank ·
Indian Overseas Bank ·
Export-Import Bank of India ·
Indian overseas Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
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|
|
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Advocate and
Solicitors : |
Crawford Bayley and Company |
|
|
|
|
Membership : |
Confederation of Indian
Industry |
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|
|
|
Joint Venture : |
·
Ion Exchange Waterleau Limited |
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|
|
|
Subsidiaries : |
·
Ion Exchange Enviro Farms Limited ·
Watercare Investments (India) Limited ·
Aqua Investments (India) Limited ·
Ion Exchange Asia Pacific Pte. Limited, Singapore ·
Ion Exchange Asia Pacific (Thailand) Limited ·
IEI Environmental Management (M) Sdn. Bhd.,
Malaysia ·
Ion Exchange Environment Management (BD) Limited,
Bangladesh ·
Ion Exchange Infrastructure Limited ·
Ion Exchange LLC, USA ·
Ion Exchange and Company LLC, Oman ·
Ion Exchange WTS (Bangladesh) Limited |
|
|
|
|
Associates: |
·
Ion Exchange Services Limited ·
Aquanomics Systems Limited ·
IEI Water-Tech (M) Sdn. Bhd., Malaysia * ·
Astha Technical Services Limited ·
Total Water Management Services (I) Limited ·
Ion Exchange Financial Products Private Limited * ·
Global Composites and Structurals Limited |
* Associate Companies of Subsidiaries
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13425911 |
Equity Shares |
Rs.10/- each |
Rs.134.259
Millions |
|
|
|
|
|
Note:
Of the above:
1. 10,000 (2009-2010 : 10,000) Equity Shares of Rs. 10 each are allotted
as fully paid-up, pursuant to a contract, for consideration other than cash.
2. 20,65,184 (2009-2010 : 20,65,184) Equity Shares of Rs. 10 each are
allotted as fully paid-up Bonus Shares by capitalisation of Revenue Reserve/
Share Premium.
3. 9,600 (2009-2010 : 9,600) Equity Shares of Rs. 10 each, fully
paid-up, have been allotted to the shareholders of erstwhile Hydranautics
Membranes India Limited (HMIL) at the meeting of Board of Directors held on
15th May 2000, pursuant to the Scheme of Amalgamation of the erstwhile HMIL
with the Company.
4. 6,71,700 (2009-2010 : 6,66,700) Equity Shares, 5,78,675 (2009-2010 :
5,78,675) Equity Shares, 7,28,000 (2009-2010 : 7,14,500) Equity Shares and
7,01,950 (2009-2010 : 20,400) Equity Shares have been allotted to the directors
and employees under Employees Stock Options Scheme – ESOS - 2001, ESOS - 2003,
ESOS - 2005 and ESOS - 2008 respectively upto 31st March 2011.
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 |
134.259 |
127.258 |
126.924 |
|
|
2] Stock Options Outstanding |
27.975 |
43.214 |
30.683 |
|
|
3] Reserves & Surplus |
1311.183 |
1174.557 |
1128.620 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1473.417 |
1345.029 |
1286.227 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
136.720 |
376.342 |
549.585 |
|
|
2] Unsecured Loans |
260.843 |
130.558 |
239.024 |
|
|
TOTAL BORROWING |
397.563 |
506.900 |
788.609 |
|
|
DEFERRED TAX LIABILITIES |
45.095 |
35.839 |
33.359 |
|
|
|
|
|
|
|
|
TOTAL |
1916.075 |
1887.768 |
2108.194 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
568.225 |
583.621 |
636.249 |
|
|
Capital work-in-progress |
14.725 |
4.819 |
5.663 |
|
|
|
|
|
|
|
|
INVESTMENT |
299.392 |
254.389 |
102.414 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
384.165
|
393.546
|
376.001
|
|
|
Sundry Debtors |
2655.595
|
2395.544
|
2129.553
|
|
|
Cash & Bank Balances |
168.646
|
99.831
|
57.479
|
|
|
Other Current Assets |
2.043
|
2.796
|
2.493
|
|
|
Loans & Advances |
597.335
|
635.697
|
812.705
|
|
Total
Current Assets |
3807.784
|
3527.414
|
3378.231
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2074.273
|
1804.911
|
1457.345
|
|
|
Other Current Liabilities |
602.224
|
609.744
|
500.162
|
|
|
Provisions |
97.554
|
67.820
|
56.856
|
|
Total
Current Liabilities |
2774.051
|
2482.475
|
2014.363
|
|
|
Net Current Assets |
1033.733
|
1044.939
|
1363.868
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1916.075 |
1887.768 |
2108.194 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5706.891 |
5002.737 |
4269.905 |
|
|
|
Other Income |
92.449 |
48.344 |
94.872 |
|
|
|
TOTAL (A) |
5799.340 |
5051.081 |
4364.777 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
4128.259 |
3533.092 |
2959.030 |
|
|
|
Operation and other expenses |
1357.524 |
1266.346 |
1212.347 |
|
|
|
TOTAL (B) |
5485.783 |
4799.438 |
4171.377 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
313.557 |
251.643 |
193.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
59.629 |
91.304 |
101.838 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
253.928 |
160.339 |
91.562 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
59.974 |
58.236 |
54.199 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
193.954 |
102.103 |
37.363 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
72.656 |
35.981 |
22.926 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
121.298 |
66.122 |
14.437 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
240.382 |
200.007 |
200.499 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
12.200 |
3.400 |
0.000 |
|
|
|
Proposed Final Dividend |
26.851 |
19.088 |
0.000 |
|
|
|
Tax on Dividend |
4.459 |
3.244 |
0.000 |
|
|
|
Dividend |
0.929 |
0.013 |
14.849 |
|
|
|
Tax on Dividend |
0.015 |
0.002 |
0.078 |
|
|
BALANCE CARRIED
TO THE B/S |
317.226 |
240.382 |
200.008 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
910.647 |
746.988 |
972.015 |
|
|
|
Freight and other recoveries |
7.025 |
6.637 |
13.269 |
|
|
|
Commission received |
0.000 |
0.000 |
0.638 |
|
|
TOTAL EARNINGS |
|
|
985.922 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
661.178 |
485.969 |
490.746 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.13 |
5.20 |
1.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st Quarter |
30.09.2011 2nd Quarter |
31.12.2011 3rd Quarter |
|
|
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
1329.400 |
1598.900 |
1548.100 |
|
Total Expenditure |
1262.100 |
1529.000 |
1479.500 |
|
PBIDT (Excl OI) |
67.300 |
69.900 |
68.600 |
|
Other Income |
10.600 |
11.200 |
11.600 |
|
Operating Profit |
77.900 |
81.100 |
80.200 |
|
Interest |
14.500 |
19.400 |
18.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
63.400 |
61.700 |
61.400 |
|
Depreciation |
15.400 |
16.000 |
17.800 |
|
Profit Before Tax |
48.000 |
45.700 |
43.600 |
|
Tax |
15.500 |
14.100 |
13.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
32.500 |
31.600 |
30.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
32.500 |
31.600 |
30.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.09
|
1.30
|
0.33
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.39
|
2.04
|
0.87
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.43
|
2.48
|
0.93
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.07
|
0.03
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.18
|
2.24
|
2.18
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.37
|
1.42
|
1.68
|
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
Yes |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
HISTORY:
Subject, a leader in Indian water treatment Industry offers total
water management solutions for Industry, Homes and Communities. It is one of
the very few companies in the world with a range of technologies, products and
services that cover the entire spectrum of water and waste-water treatment. A
subsidiary of British Permutit till 1985, it became a wholly Indian company
when Permutit divested its holdings.
Subject has three decades of experience in the manufacture of ion exchange
resins and in the design and supply of treatment plants for water, process
liquid and waste water. The company which concentrated more on Industrial
sector occupies top slot in this sector. The company has also entered domestic
household segment with its well known Zero-B brand of drinking water purifiers
and water conditioners. Further it also entered public health sector, urban and
rural, for infrastructural and community level drinking water treatment.
Its product range includes water, process liquid and waste water treatment as
well as recycling plants, using various physico-chemical processes for setting,
clarification, filteration, disinfection, membrane and ion exchange technology,
ion exchange resins, polymers and polyelectrolytes for water and non-water
processes; boiler, cooling water and fireside treatment chemicals; Zero-B
(bacteria) water purifiers which provides bacteria-free drinking water
instantly and electro chlorinators for disinfecting water.
More than 2000 plants have been supplied in
The company has licensing agreements with some of the best known specialist
water treatment companies in the
The company provides comprehensive consultancy services including water
management surveys and detailed project reports, apart from a range of
technical services.
The company recently commissioned a second resin factory for anion manufacture.
The company has diversified into financial services through IEL Finance, a
subsidiary, which provides a wide spectrum of services in fund and fee-based
areas. Ion Exchange Enviro Farms, another subsidiary is into commercial
horticulture. On 19th Jan.'98, Ion Exchange Demag Limited, a 50:50 joint-venture
between Ion Exchange (I) and Mannesmann Demag of Germany was
incorporated.
Hydronautics Membranes India Limited and Ion Exchange Finance Limited (a
subsidiary of the Company) was amalgamated with the Company. The Company has
also decided to merge the businesses of Ion Exchange Environmental Services
Limited (both 100 % subsidiaries) with the company to rationalise operations,
reduce costs and increase profitability.
The company is planning to develop Oil Field Chemicals, Refinery Process
Chemicals, Chemicals for Pulp and Paper Mills and Ion Exchangers.
OPERATIONS
During the
financial year ended 31st March, 2011, the net profit after tax of the company
was Rs. 121.3 millions, an increase of 83.5% over the previous year’s net profit
after tax of Rs. 66.100 millions. The turnover was higher at Rs. 5910 millions
as compared to Rs. 5140 millions of the previous year, showing an increase of
15%.
FUTURE OUTLOOK
Indian economy is
seeing major investment in water and environment related Infrastructure. They
expect the momentum of such investments to pickup over coming years and the
company should benefit from this. Increased awareness and more stringent
regulations on pollution control and water conservation are also leading to increased
opportunities in the industry which the company will benefit from. While it is
expected that with continued focus of Government on development and growth the
Indian economy would grow at a good pace but rising inflation and global
economic slowdown may act as hindrances. The Company has expanded its ability
to serve the need of customers for the entire environment management solution
portfolio. Thus the Company along with its joint ventures and subsidiaries
offer solutions in the field of water, waste water, solid waste, air and
renewable energy to diverse set of customers ranging from Infrastructure to
household. Increased focus and improved efficiencies which will be brought
about by recent restructuring initiatives are expected to result in significant
improvement in financial performance of the Company. The company looks at the
future with cautious optimism.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
The Indian economy
performed in line with most expectations mainly due to large investment in Power
and Infrastructure projects. This led to higher investment in all industrial
segments during the last year. Given the significant gap in the infrastructure
demand and supply for water and sanitation facilities, the water treatment
industry is poised for decent growth over a sustainable period. The company is
uniquely placed to realize the growth opportunity with its ability to offer
wide range of technological solutions and services in this field. Fresh water
sources are under tremendous pressure due to rapid industrialization, growing
population and increasing pollution. Large investment planned in power plants
will further put stress on the fresh water availability for dinking and
agriculture. This has necessitated conservation of fresh water resources and
put thrust on recycling the waste water. Stringent pollution control norms have
forced the industry to consider zero discharge. Use of sea water into potable
water by desalination is being actively considered to augment dinking water
supplies, as well as for industrial use. This offers good growth prospects to
the Company, with its proven track record of successful design and installation
of recycle and sea water desalination plants in India and abroad. With more
industries and public utilities looking at outsourcing of water and environment
management, this is another growth opportunity for the Company which has most
extensive service, infrastructure and technological capability to offer
comprehensive services in this specialized area. Competition is also expected
to increase as number of multinational companies have entered in India looking
at the large business potential in water sector. However the company is
confident of maintaining its growth by improving cost competitiveness and
efficiency in execution of projects. The overall outlook appears positive and
the management remains confident of profitable growth in the long term.
B. HIGHLIGHTS OF
PERFORMANCE
Gross turnover for
the year 2010-2011 was Rs. 5910 millions. Profit after tax was Rs.121.300 millions
as compared to Rs. 66.100 millions in the previous year. The Turnover for the
year jumped by 15%. However, the profit after Tax showed a marked improvement
of more than 80 %.
C. SEGMENTWISE
OPERATIONAL PERFORMANCE
The business of
the company can be segmented into:
1. Engineering
2. Chemicals
3. Consumer
Products
Engineering
In this segment
the Company designs, manufactures and sells medium and large size equipment for
water and waste water treatment plants. The segment achieved turnover of Rs. 3620
millions compared to Rs. 3270 millions for the previous year. This segment
continues to grow at a healthy rate particularly in light of increased
investments in infrastructure projects and power plants. Margins were under
pressure due to rising input costs. This segment is expected to grow at healthy
rate as the company has a good order bank.
Chemicals
The segment
achieved turnover of Rs.1510 millions compared to Rs. 1200 millions of the previous
year. During the year sales in domestic markets improved while continuing
exports of resins to US, Europe and South East Asia. The Company is developing
new customers in far east Korea and Japan. Good margin growth is seen in water
treatment chemical business, but the margins in resin business were under
pressure due to steep increase in cost of key raw materials. The launch of new
products in mining and refinery process treatment as well as new applications
developed for speciality resins, are likely to give significant growth in the
coming years. The outlook for this segment is positive.
Consumer Products
The segment
achieved a turnover of Rs. 820 millions as compared to Rs.710 millions of the
previous year. The segment improved business volume with 19.4% growth in the
domestic segment. The Service business continued to grow for the fourth year in
a row though the growth rate declined to 9.3%. However, the consolidation of
the service initiatives improved the satisfaction levels of their customers
significantly in the course of the year. In the year under review, the domestic
water purifier business continued to attract new entrants resulting in intense
competition and ever-changing dynamics in the market place. The focus was on
increasing the productivity of the models by reducing the number of SKUs and
consolidating the product portfolio. At the same time, the
research/reengineering efforts continued to get new products / solutions ready
for the next year. The Company continues to invest in its “Zero B” brand which
has survived the onslaught from aggressive new
players in the category. The brand was recognized as “Best Complete
Domestic Water Solutions Provider” by Water Digest Awards in association with
UNESCO, WQA and PHDCCI. The brand has received the Water Digest Award for the
fifth consecutive year. The operating structure of the Division has been
reoriented to efficiently tap the ever-increasing opportunities in the market
and to nurture long-term relationships with existing / potential customers. In
the current year, the thrust will be on improving the Brand recall and
increasing the market share, through improved productivity of the sales
channels and enhanced customer services as well as popularization of its
specialised products. With greater focus in the “Hospitality and Health Care”
sector in the Institutional segment and “Retail” as well as ‘Direct Sales’
business in the Home segment, the Division aims for a bright future with decent
growth in sales as well as profitability. They continue to adapt their
technologies and products to suit the specific needs of the Rural consumers and
contribute towards creating awareness of safe drinking water and sanitation.
During the year under review, there was a renewed focus on increasing their presence
in the rural market, home to 70% of India’s population. This was undertaken by
creating awareness about safe drinking water and sanitation amongst rural
consumers, developing a sustainable distribution network and partnering with
the Government, Non Government Organizations (NGOs) and the local trade. In the
current year, the thrust will be on increasing their penetration and reach in
rural India.
Exports
During the year,
Company has achieved export turnover of Rs. 910 millions. Inspite of the
economical recession in few countries and the turmoil in the Middle East,
company was able to attain growth of nearly 22% in the international market. In
the current year company plans to consolidate its presence in the African and
Middle East market and is confident to maintain planned growth.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2011
(Rs. in Millions)
|
|
PARTICULARS |
QUARTER ENDED |
NINE MONTHS ENDED |
|
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
|
|
|
|
|
1. |
a) Sales /Income from
Operations |
1597.500 |
1645.800 |
4617.200 |
|
|
Less: Excise Duty |
54.700 |
49.900 |
151.200 |
|
|
Net Sales / Income from
Operations |
1542.800 |
1595.900 |
4466.000 |
|
|
b) Other Operating Income |
5.300 |
3.000 |
10.400 |
|
|
|
1548.100 |
1598.900 |
4476.400 |
|
2. |
Expenditure |
|
|
|
|
|
a) (Increase) /Decrease
in Stock-in-Trade and Work-in-Progress |
7.400 |
(26.300) |
(50.000) |
|
|
b) Consumption of Raw
Materials |
1019.800 |
1089.700 |
2982.700 |
|
|
c) Purchase of Traded
Goods |
58.200 |
77.600 |
204.700 |
|
|
d) Employees Cost |
158.900 |
160.400 |
474.000 |
|
|
e) Travelling Expenses |
47.500 |
45.600 |
130.100 |
|
|
t] Depreciation |
17.800 |
16.000 |
49.200 |
|
|
g) Other Expenditure |
187.700 |
182.000 |
529.100 |
|
|
Total |
1497.300 |
1545.000 |
4319.800 |
|
3. |
Profit from Operations
before Other Income and Interest (1-2) |
50.800 |
53.900 |
156.600 |
|
4. |
Other Income |
11.600 |
11.200 |
33.400 |
|
5. |
Profit before Interest
(3+4) |
62.400 |
65.100 |
190.000 |
|
6. |
Interest |
18.800 |
19.400 |
52.700 |
|
7. |
Profit Before Taxation
(5-6) |
43.600 |
45.700 |
137.300 |
|
8. |
Provision for Taxation
(Includes Deferred Tax) |
13.100 |
14.100 |
42.700 |
|
9. |
Net Profit after Taxation
(7-8) |
30.500 |
31.600 |
94.600 |
|
10. |
Paid up Equity Share
Capital [Face Value - Rs.10 per
share] |
135.400 |
135.200 |
135.400 |
|
11. |
Reserves excluding
Revaluation Reserves |
|
|
|
|
12. |
Basic and diluted EPS for
the period and for the previous year - Basic EPS (Rs.) - Diluted EPS (Rs.) |
2.25 2.22 |
2.34 2.28 |
7.00 6.83 |
|
13. |
Public Shareholding - Number of Shares - Percentage of Shareholding |
8,018,768 59.24% |
8,006,768 59.20% |
8,018,768 59.24% |
|
14. |
Promoters and Promoter Group
Shareholding a) Pledged / Encumbered - Number of Shares - Percentage of share (as % of the total shareholding of
promoter and promoter group) - Percentage of share (as % of the total share capital of
the company) (b) Non-encumbered |
- |
- |
- |
|
|
- Number of Shares |
5,517,393 |
5,517,393 |
5,517,393 |
|
|
- Percentage of share (as
% of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of share (as
% of the total share capital of the company) |
40.76% |
40.80% |
40.76% |
Notes:
1) The above results for the quarter ended
December 31, 2011 have been subjected to "Limited
Review” by
the Statutory Auditors of the Company as required under clause41 of the Listing Agreement.
2) The above results were reviewed by the Audit
Committee at a meeting held on January 25,2012 and were approved at the meeting of the Board of Directors held on January 25,2012.
3) The Board of Directors of the Company at
their meeting held on February 22,2011, had, subject to the
approval of the shareholders, accorded their approval for the proposal to
transfer its Project Division (covering domestic turnkey projects) as a going concern under a 'Slump Sale' basis to Ion Exchange Projects
and Engineering Limited, a wholly owned subsidiary
company being incorporated Subsequent to the above, on April 11,2011, the Company has received
approval of the shareholders for the transfer of the Project Division
(covering domestic turnkey
projects) byway of postal ballot The Company is in the process of completing all
the necessary formalities for the above mentioned transfer. The Project Division is being reported as a
part of Engineering segment under Segment disclosures.
4) During the nine months ended
December 31, 2011, 4000 shares have been allotted pursuant to options granted
under the Employees' Stock Option Scheme ESOS 2005 and 106,250 shares have been
allotted pursuant to options granted under the Employees' Stock Option Scheme
ESOS 2008. However no fresh options have been granted during the current
period.
5) Investors Complaints Status
As at October 1, 2011 Nil
Complaints Received 1
Complaints Redressed Nil
As at December31, 2011 1
6) Figures for the previous
period / year have been regrouped / rearranged wherever necessary.
QUARTERLY AND NINE MONTHLY REPORTING OF SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
(Rs. in Millions)
|
|
|
UNAUDITED |
||
|
|
PARTICULARS |
QUARTER ENDED |
NINE MONTHS ENDED |
|
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
1. |
Segment Revenue |
|
|
|
|
|
a) Engineering |
922.300 |
1001.900 |
2689.500 |
|
|
b) Chemicals |
455.200 |
436.200 |
1297.300 |
|
|
c) Consumer Products |
244.100 |
249.500 |
716.100 |
|
|
d) Unallocated |
6.100 |
4.800 |
15.600 |
|
|
Total |
1627.700 |
1692.400 |
4718.500 |
|
|
Less: Inter segment
revenue |
84.900 |
96.500 |
252.500 |
|
|
Net Sales / Income from
Operations |
1542.800 |
1595.900 |
4466.000 |
|
2. |
Segment Results
[Profit(+)/ Loss (-) before tax and interest from segment] |
|
|
|
|
|
a) Engineering |
27.000 |
51.000 |
105.700 |
|
|
b) Chemicals |
40.800 |
36.400 |
118.200 |
|
|
c) Consumer Products |
(1.200) |
(10.800) |
(8.900) |
|
|
Total |
66.600 |
76.600 |
215.000 |
|
|
Less: i) Interest
Expenses |
18.800 |
19.400 |
52.700 |
|
|
ii) Other unallocable
expenditure net of unallocable income |
8.900 |
14.800 |
36.400 |
|
|
Add: Interest Income |
4.700 |
3.300 |
11.400 |
|
|
Total Profit (+)/Loss (-)
Before Taxation |
43.600 |
45.700 |
137.300 |
|
3. |
Capital Employed (Segment
Assets - Segment Liabilities) |
|
|
|
|
|
a) Engineering |
650.700 |
704.400 |
650.700 |
|
|
b) Chemicals |
623.800 |
652.000 |
623.800 |
|
|
c) Consumer Products |
91.100 |
113.000 |
91.100 |
|
|
Total Capital Employed in
'Segments' |
1365.600 |
1469.400 |
1365.600 |
|
|
Add: Unallocable
corporate assets less corporate liabilities |
207.600 |
72.800 |
207.600 |
|
|
Total Capital Employed In
Company |
1573.200 |
1542.200 |
1573.200 |
Notes:
1. Segments
have been identified in line with the Accounting Standard on Segment Reporting (AS-17),
taking into account the Organisation structure as well as the differential
risks and returns of these segments.
2.
Figures for the previous period / year have been
regrouped / rearranged wherever necessary.
Fixed Assets:
·
Land Including
·
Property Rights
·
Buildings on Leasehold Land
·
Buildings on Freehold Land
·
Ownership Blocks
·
Ownership Flat in Leasehold
·
Premises - DDA
·
Plant and Machinery
·
Vehicles
·
Furniture, Fixture and Office Equipments
·
Leased Assets
AS PER WEBSITE DETAILS:
PROFILE:
Subject pioneered water treatment in
If
they're at the forefront of the water management industry, it's because of a
sustained focus on:
- Technological
advancement through R and D - innovation is their hallmark as their numerous patents testify
- Affiliations
with the best specialist water treatment companies internationally.
- Human
resource development - melding technology with people trained to manage it
responsibly.
- Above all,
commitment to customer care, that goes far beyond the sale. Technical
service support is a key component of their solutions bouquet and their
service network is the largest in the Indian water treatment industry.
Total Water Management
They use their wide range of processes with an integrated
approach to deliver total solutions for every market - household, institutional,
commercial, industrial and public water supplies, urban and rural, in India and
overseas. Comprehensive services such as O and M and BOO/T enable us to meet
customer needs totally, offering end benefit conveniently and economically,
with single source responsibility.
Quality and Environmental Assurance
All operating units of the company are ISO 9001:2000 certified. Theirs was the
first subject resin manufacturing company in
The Widest Range Internationally
- Pretreatment, process water/liquid treatment, waste water
treatment, water recycle and product recovery using various
physico-chemical processes for settling, clarification, filtration, and
disinfecton, membrane and ion exchange technology.
- Ion exchange resins, membranes, polymers and polyelectrolytes for
water and speciality non-water applications
- Boiler and cooling water treatment chemicals
- Fireside chemicals and fuel additives
- Process chemicals for sugar and paper manufacture
- Specialised systems for removal of excessive fluoride, arsenic,
iron and nitrates from water. These along with disinfection systems have
been adapted to rural needs.
- Domestic and institutional drinking water purifiers and water
conditioners; central drinking water treatment systems.
- Sewage treatment and recycle systems
- Comprehensive services - rehabilitation and automation of plant,
BOO/T, O&M, consultancy, operator training, design engineering and
project management.
Hallmarks of Value Creation
- Strategic concept-to-completion guidance and consultancy
- 360o turnkey water management
- Assured supply and quality of water
- Superior price performance ratios and production efficiencies
- Single point responsibility enabling greater customer focus on core
business
- Lower cost and effective use of capital employed
- Creative ownership options
- Environmentally responsive solutions
Over 4 decades of experience
In its 40 years of experience, the company has provided
installations for diverse industries in
Reverse Osmosis System for TV picture
tube company:
- More than 35,000 plants in
- Over 400 major installations at thermal and nuclear power stations,
fertiliser factories, refineries, petrochemical and other industries.
- Over US$30 million worth projects in
- Exports of equipment, ion exchange resins, membranes and water
treatment chemicals to Japan, South East Asia, USA, Europe, Africa, Egypt,
Middle East, Russia, Bangladesh, Nepal, Mauritius and Sri Lanka
Alliances
Subject has associations with some of the best known specialist water
treatment companies in the world through which they have acquired
state-of-the-art technologies.
INTERNATIONAL ASSOCIATES
|
Licensing Agreements with |
||
|
|
|
Packaged Sewage Treatment Plant |
|
Elf Antar SA |
|
Oil Separators/Coalescers and
Drum Skimmers |
|
Eutech Instruments |
|
Water Quality Monitoring
Instruments |
|
Polymetrics |
|
Standard Reverse Osmosis System. |
|
Nordic Water Products |
|
Continuous Sand Filters |
|
Representative Agreements |
||
|
Triogen |
|
UV Sterilisers |
|
Ozonia |
|
Ozonators |
Joint Ventures
With Waterleau Belgium:
Environmental technologies and services encompassing liquid and gaseous
effluents, bio-solids and solid waste , air pollution control and recovery of
energy from waste from muncipal and industrial segments.
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.51.99 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.68.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
51 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.