MIRA
INFORM REPORT
|
Report Date : |
26.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
PIDILITE INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Regent Chambers, 7TH Floor Jamnalal Marg, 208, Nariman
Point, Mumbai – 400021, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation
: |
28.07.1969 |
|
|
|
|
Com. Reg. No.: |
11-014336 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 507.650 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24100MH1969PLC014336 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMP06924B MUMP12411A |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
Manufacturing of
adhesives, sealants, art material and construction paint and chemical
products. |
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|
|
|
No. of Employees
: |
4223 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
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 55000000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
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Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well
established and a reputed company having good track. Financial position of
the company appears to be sound. Directors are reported to be experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ (Cash Credit) |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
27.12.2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
AI+ (Short term loans) |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
27.12.2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered
Office : |
Regent Chambers,
7th Floor, 208, Nariman Point, Mumbai-400021, Maharashtra, India |
|
Tel. No.: |
91-22-22822708 /
28367085 / 7089 |
|
Fax No.: |
91-22-22043969 |
|
E-Mail : |
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|
Website : |
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Administrative
Office: |
6th Floor, Vikas Deep, Laxmi Nagar, District Centre, Vikas
Marg, |
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|
|
Corporate
Office / Head office: |
Ramkrishna Mandir
Road, Office Mathuradas Vasanji Road, Andheri (East), Mumbai – 4000059,
Maharashtra, India |
|
Tel. No.: |
91-22-28357000 / 3083
1000, 91-22-67697000/7949 |
|
Fax No.: |
91-22-28357008 / 2835
7700, 91-22-28216007 |
|
E-Mail : |
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|
Factory : |
v
Plot No.
A-22, M. I. D. C. Mahad - 402309, District Raigad, Maharashtra, India Tel. No.
91-2145-232043/44/45/46 Fax. No.
91-2145-232054/232048 v
Plot
No. 78-79, G. I. D. C. Industrial Estate, Vapi - 396 195, District Valsad,
Gujarat, India Tel. No.
91-2638-230215/230521 Fax. No.
91-2638-230199 v
Plot
No. 23, G. I. D. C. Industrial Estate, Vapi 396 195, District Valsad,
Gujarat, India Tel. No.
91-2638-230520/231517 Fax. No.
91-2638-231085 v
Plot
No. 25,26,39,40 Jawahar Co-operative Industrial Estate, Kamothe, Panvel -
410206, District Raigad, Maharashtra, India Tel. No.
91-22-27421021/27421856 Fax. No.
91-22-2742332 v
Plot
No. 19, Taloja Industrial Estate, Taloja, District Raigad, Maharashtra, India Tel. No.
91-22-27410376/77 Fax. No.
91-22-27410376 v
Daman,
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|
|
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|
Branch Office
: |
Located
At: ·
Ahmedabad ·
Bangalore ·
Chandigarh ·
Chennai ·
New Delhi ·
Kanpur ·
Kolkata ·
Nagpur ·
Kochi ·
Hyderabad |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. B. K. Parekh |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. K. Parekh |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. M. B. Parekh |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. N. K. Parekh |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. R. M. Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. J. Jhaveri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bansi S.
Mehta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Ranjan Kapur |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Yash Mahajan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A. B. Parekh |
|
Designation : |
Whole Time Director |
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|
|
|
Name : |
Mr. A N Parekh |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Bharat puri |
|
Designation : |
Director |
|
Date of Appointment : |
28.05.2008 |
|
|
|
|
Name : |
Mr. D. Bhattacharya |
|
Designation : |
Director |
|
|
|
|
Name : |
J.L. Shah |
|
Designation : |
Whole Time Director [up to 08.11.2011] |
|
|
|
|
Name : |
Mr. Sanjeev Aga |
|
Designation : |
Director [w.e.f.29.07.2011] |
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|
|
|
Name : |
Mr. R Sreeram |
|
Designation : |
Whole Time Director [up to 08.11.2011] |
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|
|
KEY EXECUTIVES
|
Name : |
Ms. Savithri Parekh |
|
|
Designation : |
Company Secretary |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
270357342 |
53.16 |
|
|
85907932 |
16.89 |
|
|
356265274 |
70.05 |
|
|
|
|
|
|
2901606 |
0.57 |
|
|
2901606 |
0.57 |
|
Total shareholding of Promoter and Promoter Group (A) |
359166880 |
70.62 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18583605 |
3.65 |
|
|
703074 |
0.14 |
|
|
5879303 |
1.16 |
|
|
66762119 |
13.13 |
|
|
91928101 |
10.08 |
|
|
|
|
|
|
9484326 |
1.86 |
|
|
|
|
|
|
38988949 |
7.67 |
|
|
9013658 |
1.77 |
|
Any other (Specify) |
3032 |
0.00 |
|
Foreing Corporate Bodies |
3032 |
0.00 |
|
|
57489965 |
11.30 |
|
Total Public shareholding (B) |
149418066 |
29.38 |
|
Total (A)+(B) |
508584946 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
508584946 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
selling of branded consumer products like adhesives, sealants, art material
and construction paint and chemicals. |
||||||||
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|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Dyestuffs |
M.T. |
3900 |
3144 |
20577C |
|
|
K.L. |
-- |
-- |
6380D |
|
Chemicals |
M.T. |
372109 |
260449 |
164138E |
|
|
K.L. |
37780 |
32260 |
42695F |
|
Others Nos. Lac |
-- |
-- |
-- |
1176G |
Notes:
* This being
technical matter, is as certified by the Management and relied upon by
Auditors.
A Class of Goods
is based on main classification given in the Industries (Development and
Regulation) Act, 1951.
B Excluding Resale
of Raw Materials / Packing Materials Rs. 95.53 million (Rs.210.41 million)
C Includes 17228
Tones (17721 Tones) produced in the factory of third party.
D Includes 5165 KL
(5315 KL) produced in the factory of third party.
E Includes 51755
Tones (38423 Tones) produced in the factory of third party.
F Includes 6970 KL
(5380 KL) produced in the factory of the third party. .
G Includes 1175 Nos. Lac (2332 Nos. Lac) produced in the factory of the
third party.
GENERAL INFORMATION
|
No. of Employees : |
4223 (Approximately) |
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|
|
|||||||||||||||||||||
|
Bankers : |
v
Indian Overseas Bank v
Corporation Bank v
ICICI Bank v
The Royal Bank of Scotland N.V. |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
v
Haribhakti
and Company Chartered Accountants v
Wadia
Ghandy and Company Solicitors and Advocates |
|
Significant
Influence: |
v Parekh Marketing
Limited v Kalva Marketing
and Services Limited |
|
|
|
|
Controlling
Interest : |
v Nitin
Enterprises |
|
|
|
|
100% Subsidiary
: |
v Fevicol Company
Limited v Bhimad
Commercial Company Private Limited v Madhumala
Traders Private Limited v Pidilite
International Pte Limited v Pidilite Middle
East Limited v Pulvitec do
Brasil Industria e Comercio de Colas e Adesivos Limited v Pidilite USA Inc v Pagel Concrete
Technologies Private Limited |
|
|
|
|
75% Subsidiary : |
v Pagel Concrete
Technologies Private Limited |
|
|
|
|
100% Subsidiary
of wholly owned subsidiary : |
v Jupiter
Chemicals (LLC) v P.T. Pidilite
Indonesia v Pidilite
Speciality Chemicals Bangladesh Private Limited v Pidilite
Innovation Centre Pte Limited v Pidilite
Industries Egypt – SAE v Pidilite Bamco
Limited v Pidilite South
East Asia Limited. v PIL Trading
Egypt (LLC) v Pidilite
Industries Trading (Shanghai) Company Limited |
|
|
|
|
49% Subsidiary of wholly owned subsidiary and
having significant influence : |
v Bamco Supply
Services Limited |
|
|
|
|
Associates |
Vinyl Chemicals (India) Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
700000000 |
Equity Shares |
Rs.1/- each |
Rs. 700.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
507648826 |
Equity Shares |
Rs.1/- each |
Rs.507.650
Millions |
AS ON 24.07.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
700000000 |
Equity Shares |
Rs.1/- each |
Rs. 700.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
512642330 |
Equity Shares |
Rs.1/- each |
Rs.512.642
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
507.650 |
506.130 |
506.130 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
13264.510 |
10889.130 |
8879.660 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13772.160 |
11395.260 |
9385.790 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
600.000 |
600.000 |
2184.500 |
|
|
2] Unsecured Loans |
322.970 |
2026.610 |
2029.800 |
|
|
TOTAL BORROWING |
922.970 |
2626.610 |
4214.300 |
|
|
DEFERRED TAX LIABILITIES |
454.270 |
409.660 |
415.360 |
|
|
|
|
|
|
|
|
TOTAL |
15149.400 |
14431.530 |
14015.450 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4959.220 |
4409.710 |
4174.720 |
|
|
Capital work-in-progress |
3713.350 |
3267.720 |
2774.020 |
|
|
|
|
|
|
|
|
INVESTMENT |
3327.990 |
3997.400 |
5104.920 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3963.040
|
3544.400 |
2506.310 |
|
|
Sundry Debtors |
3261.180
|
2865.910 |
2387.590 |
|
|
Cash & Bank Balances |
2576.140
|
923.240 |
331.160 |
|
|
Other Current Assets |
107.010
|
49.640 |
51.510 |
|
|
Loans & Advances |
1151.760
|
936.240 |
963.910 |
|
Total
Current Assets |
11059.130
|
8319.430 |
6240.480 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1706.140
|
1428.900 |
1114.280 |
|
|
Other Current Liabilities |
4811.850
|
2853.620 |
2187.650 |
|
|
Provisions |
1392.300
|
1280.210 |
976.760 |
|
Total
Current Liabilities |
7910.290
|
5562.730 |
4278.690 |
|
|
Net Current Assets |
3148.840
|
2756.700 |
1961.790 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15149.400 |
14431.530 |
14015.450 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
28163.200 |
23670.220 |
1322.460 |
|
|
|
Other Income |
427.670 |
285.760 |
271.770 |
|
|
|
TOTAL (A) |
28590.870 |
23955.98 |
19594.230 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
14645.890 |
11856.180 |
|
|
|
|
Purchases of Traded Goods |
1316.060 |
1201.740 |
|
|
|
|
Change in inventories of Finished Goods |
(287.640) |
(585.500) |
15841.640 |
|
|
|
Employee Benefits Expenses |
2611.560 |
2264.610 |
|
|
|
|
Other Expenses |
5139.530 |
4499.470 |
|
|
|
|
TOTAL (B) |
23425.400 |
19236.500 |
15841.640 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5165.470 |
4719.480 |
3752.590 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
245.040 |
301.560 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4920.430 |
4417.920 |
3752.590 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
479.260 |
443.870 |
463.860 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
4441.170 |
3974.050 |
3288.730 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1096.110 |
935.140 |
397.510 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
3345.060 |
3038.910 |
2891.220 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1073.490 |
1006.320 |
779.130 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Final Equity Dividend |
965.140 |
885.740 |
442.870 |
|
|
|
Tax on Proposed Equity Dividend |
156.570 |
143.690 |
|
|
|
|
Transfer to Debenture Redemption Reserve |
243.400 |
42.310 |
257.180 |
|
|
|
Transfer to General Reserve |
1750.000 |
1900.000 |
600.000 |
|
|
|
Dividend on preference shares |
0.000 |
0.000 |
0.750 |
|
|
|
Tax on dividend |
0.000 |
0.000 |
75.380 |
|
|
|
Transfer to capital redemption reserve |
0.000 |
0.000 |
28.750 |
|
|
|
Total |
3115.110 |
2971.740 |
962.060 |
|
|
BALANCE CARRIED
TO THE B/S |
1303.440 |
1079.490 |
1006.320 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2643.160 |
2392.920 |
1838.460 |
|
|
|
Other Earnings |
18.610 |
5.440 |
4.010 |
|
|
TOTAL EARNINGS |
2661.770 |
2398.360 |
1842.470 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3519.650 |
2912.450 |
1888.760 |
|
|
|
Capital Goods |
119.340 |
105.200 |
6.590 |
|
|
|
Others |
639.570 |
582.200 |
448.530 |
|
|
TOTAL IMPORTS |
4278.560 |
3599.850 |
2343.880 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
6.59 |
6.00 |
5.80 |
|
|
|
Diluted |
6.43 |
5.84 |
0.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2011 |
|
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
|
9124.500 |
8208.790 |
|
Total Expenditure |
|
|
7217.600 |
6818.380 |
|
PBIDT (Excl OI) |
|
|
1906.900 |
1390.410 |
|
Other Income |
|
|
140.200 |
121.440 |
|
Operating Profit |
|
|
2047.100 |
1511.850 |
|
Interest |
|
|
91.200 |
18.080 |
|
Exceptional Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
1955.900 |
1493.770 |
|
Depreciation |
|
|
123.700 |
128.160 |
|
Profit Before Tax |
|
|
1832.200 |
1365.610 |
|
Tax |
|
|
498.400 |
325.300 |
|
Provisions and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
1333.80 |
1040.310 |
|
Extraordinary Items |
|
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
1333.80 |
1040.310 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
11.70
|
12.68 |
14.75 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.77
|
16.79 |
248.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
22.96
|
23.76 |
21.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.35 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.57
|
0.49 |
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40
|
1.50 |
1.46 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
Yes |
|
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 |
No |
|
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) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
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 |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
Standalone Financials
The
Company achieved 18.9% growth in net sales.
Due to
the slowing down of Indian economy and weak economic conditions in US & Europe,
sales growth in the second half of the year was lower than that recorded in the
first half. Growth was impacted, largely in the Speciality Industrial Chemical
segment, where the growth was 9.5% as compared to 24.4% in the previous year.
The
Consumer and Bazaar Segment grew by 22.8%, in line with past trends.
Due to
steep inflation in costs, the Company had to increase prices. However, the
entire input cost increase was not passed on resulting in lower profitability
in the year.
During
the year, a provision of 96.900 million was made for diminution in value of
investments in the Company’s Brazilian subsidiary “Pulvitec Do Brasil Indústria
E Comércio De Colas E Adesivos Ltda.,”. The Company has estimated the fair
value of these investments and accordingly an impairment provision has been
taken. In addition a provision of 29.600 million was made for diminution in
value of investment in Pidilite Middle East Limited. “PMEL” (a 100%
subsidiary). PMEL’s subsidiary, Jupiter Chemicals LLC “Jupiter”, continued to
incur losses, though significantly reduced from last year. Therefore, in
addition to 250.000 million provision done last year, an additional provision
of 29.600 million was done in the current year. These provisions have no impact
on the consolidated results of the Company.
Earnings
before interest, taxes, exceptional items and foreign exchange differences,
increased by 8.10%, profit before tax (PBT) increased by 11.8% and profit after
tax (PAT) increased by 10%.
The
Company’s sales have grown at a CAGR of 18.2% over the last five years.
Consumer and Bazaar Products
Branded
Consumer and Bazaar Products Segment contributed 79% of the total net sales of
the Company and grew by 22.8%.
Net
sales of branded Adhesives and Sealants grew by 24% and contributed 51% of the
total sales of the Company. Construction and Paint Chemicals grew by 24.6% and
Art Materials and other products grew by 14%.
Consumer
and Bazaar Product sales have grown at a CAGR of 17.6% over the last 5 years.
Profit before interest and tax for the Consumer and Bazaar segment increased by
13%.
Financial Performance
The
Operating Profit and Net Profit, for the
year at Rs. 5343.000 million and Rs. 3345.000 million increased by 8% and 10%
respectively. Income Tax for the current year at Rs. 1051.000 million is higher
by 11.7%, due to completion of the first five year tax holiday period for one
manufacturing unit located in Himachal Pradesh. This is the fourth unit, out of
six, which has completed the first 5 year tax holiday period.
Business
performance in the first half of the current year was better than in second
half. The global economic situation affected exports, particularly of
Industrial products where the growth rates in the second half of the year
were
much below the past trends and significantly lower than what was recorded in
the first half of the year. However, the Consumer & Bazaar segment
maintained its growth in line with past trends. In addition, input prices
increased steeply which, coupled with the weakening of the Rupee vis a vis US
dollar, impacted margins.
The
Indian Rupee was at Rs. 50.87 to a USD as on 31st March 2012 as compared to Rs.
44.40 to a USD as on 31st March 2011. As a result, the exchange loss in the
year was Rs. 85 million as compared to a loss of Rs. 8.400 million last year.
The Company has opted to amortize the exchange rate difference on Foreign
Currency Convertible Bonds over the remaining period of the Bonds and
accordingly Rs. 55.500 million is carried forward in the balance sheet to be amortized
between April 2012 and November 2012.
Manufacturing Plants
EMS
(Environment Management System)/OHSAS (Occupational Health & Safety
Assessment System) Certification has been obtained for 18 manufacturing
locations.
Implementation
of these systems enables better control on safety management systems at the
units and is one of the indicators of good manufacturing practices.
During
the year the Company commissioned a manufacturing unit at Secunderabad for
manufacture of construction chemicals.
Manufacturing
capacity of emulsion polymers, Fevikwik, Steelgrip, stainers, white glues and
construction chemicals were enhanced
Subsidiaries - Overseas Subsidiaries
Total
revenue grew by 1.8% in constant currency terms. The business in USA reported a
2.5% decline in sales (in constant currency terms). However, due to actions
taken to improve margin and control costs, EBIDTA for the year was higher by
10%.
The
subsidiary in Brazil performed below expectations. Sales declined by 4.3% due
to competitive pressures. Due to inability to fully pass on cost increases, the
business reported significantly higher losses than last year.
The
subsidiary in Bangladesh strengthened its market position with sales growing by
20.2%. Profitability was
impacted
by increase in commodity cost and sharp depreciation of the currency. The
company is expanding its manufacturing facility to produce an additional range
of adhesives which are currently being imported from India.
The
subsidiaries in Thailand reported a 12.4% growth in sales despite weak economic
situation and floods in the country. Profitability improved during the year due
to actions taken to improve margins and reduce costs.
The
subsidiary in Dubai reported a 24.7% growth in sales, although on a lower base.
While losses were significantly reduced, the business still reported a cash
loss in the year.
The
operations in Egypt showed signs of recovery with sales growth of 63.3%.
However, margins were impacted due to steep increase in input costs.
Due to
the reasons mentioned above, the overseas subsidiaries, in aggregate, reported
losses higher than last year by 20%.
The
total investment in overseas subsidiaries as on 31st March 2012 stands at `
2767.37 million
Current Year Outlook
The current
year’s outlook is somewhat uncertain due to various factors like weakening
demand, high interest rates and high inflation.
In
addition, the volatility in currency rates impact input costs and due to a lag
between the cost inflation and price
increase,
margins could get impacted in the short term.
The
Company’s major subsidiaries are in USA, Brazil, Thailand, Egypt and
Bangladesh. Although initiatives are underway to improve performance of the
subsidiaries, they are likely to face difficulties due to weak economic outlook
in their respective markets. The business in Brazil remains susceptible to
competitive pressures and high inflation.
FIXED ASSETS
- Goodwill
- Buildings
- Plant and Machinery
- Trademark
- Copyrights
- Furniture and Fixtures
- Vehicles
- Office
Equipment
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 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.55.08 |
|
|
1 |
Rs.89.09 |
|
Euro |
1 |
Rs.72.61 |
|
Report Prepared
by : |
SPR |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.