MIRA
INFORM REPORT
|
Report Date : |
06.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
ELANTAS BECK INDIA LIMITED (w.e.f. 19.06.2007) |
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Formerly Known
As : |
BECK INDIA LIMITED
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Registered
Office : |
“Beck House”, Damle Path, Off. |
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Country : |
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Financials (as
on) : |
31.12.2011 |
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Date of
Incorporation : |
15.03.1956 |
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Com. Reg. No.: |
11-134746 |
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Capital Investment
/ Paid-up Capital : |
Rs.79.277 Millions |
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CIN No.: [Company Identification
No.] |
L24222PN1956PLC134746 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEB02788C |
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PAN No.: [Permanent Account No.] |
AAAACD0538M |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Insulation Varnishes, Unsaturated Polyester Resins, Other Paints, Varnishes and Epoxide Resins. |
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No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (68) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 7410000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and a reputed company having good track. Directors are reported to be an experienced and respectable businessmen. Financial position of the company appears to be sound. 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered / Corporate Office : |
“Beck House”, Damle Path, Off. |
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Tel. No.: |
91-20-30210600/ 30210614 |
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Fax No.: |
91-20-30210634/ 30210631 |
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E-Mail : |
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Website : |
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Head Office : |
407-A, ‘ |
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Tel. No.: |
91-22-22833255 / 22833224 / 24932654 |
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Fax No.: |
91-22-22873455 |
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E-Mail : |
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Factory : |
Technical Services 147, Tel. No. : 91-20-30610600 Fax No. : 91-20-30610601 E-mail : tsd@beckindia.com Plot No. 1 (A, B and C), GIDC Industrial Area, Ankleshwar
– 393 002, Plot No. D-1/3, MIDC, Lote-Parshuram, Taluka Khed - 415
722, District - Ratnagari, |
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Regional Offices: |
Bengaluru,
Kolkata, 403, World
Trade Centre, Tel.
No. : 91-11-23411664/ 23412940 Fax
No. : 91-11-23413408 E-mail
: ravi.kiran@beckindia.com Unit
708, 7th Floor, Om Tower, 32, Tel.
No.: 91-33-22271841 Fax
No. : 91-33-22271843 E-mail
: nirjhar.k@beckindia.com Marketing and Export Head
Office Beck
House, Damle Path, Pune – 411 004, Tel.
No. : 91-20-30210600 Fax
No. : 91-20-30210740 E-mail
: kedar.gokhale@altanachemie.com (Electrical
Insulation) E-mail
: rajanikant.salunke@altanachemie.com
(Construction Chemicals) 1176,
12th H.A.L. II Stage, Tel.
No. : 91-80-25281649/ 25283093 Fax
No. : 91-80-25280831 E-mail
: bhaskar.n@beckindia.com |
DIRECTORS
As on 18.04.2012
|
Name : |
Dr. Matthias Ludwig Wolfgruber |
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Designation : |
Chairman |
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Address : |
Hechenbergstradde 65, 84489, |
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Date of Birth/ Age : |
24.01.1954 |
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Date of Appointment : |
05.07.2004 |
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DIN No.: |
00427360 |
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Name: |
Dr. Wolfgang
Josef Schutt |
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Designation: |
Director |
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Address : |
Hoher weg 19a, 46348, |
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Date of Birth/Age : |
22.12.1964 |
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Qualification : |
1985-1993 -
Studies Chemistry (Chemistry Graduate with Doctorate) 1991-1995 -
Master of Business Administration |
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Date of Appointment : |
17.10.2005 |
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DIN No.: |
00428848 |
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Name : |
Mr. Rajeev Madhav Bhide |
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Designation : |
Managing Director |
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Address : |
Flat No. D 801, 10, Kastukunj, Bhosale Nagar, Pune, |
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Date of Birth/Age : |
06.11.1957 |
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Qualification: |
B.Com, F.C.A., Post Graduation D.M.M. |
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Experience: |
31 Years |
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Date of Appointment : |
01.08.2008 |
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DIN No.: |
00087264 |
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Last Employment: |
International Computers ( |
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Name : |
Mr. Ravindra Krishnaji Kulkarni |
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Designation : |
Director |
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Address : |
Samruddhi, Plot No.19, TPS VI, Santacruz, Mumbai – 400 030, |
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Date of Birth/Age : |
23.05.1945 |
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Date of Appointment : |
27.09.1990 |
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DIN No.: |
00059367 |
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Name : |
Mr. Suresh Narsappa Talwar |
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Designation : |
Director |
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Address : |
10, Shiv Shanti Bhuvan, 146, |
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Date of Birth/Age : |
21.11.1937 |
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Date of Appointment : |
01.06.2009 |
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DIN No.: |
00001456 |
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Name : |
Mr. Pradeep Mallick |
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Designation : |
Director |
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Address : |
A/2, |
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Date of Birth/Age : |
20.11.1942 |
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Date of Appointment : |
28.03.2002 |
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DIN No.: |
00061256 |
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Name : |
Mr. Prashant Vithalrao Deshpande |
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Designation : |
Whole-Time Director |
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Address : |
301, Bhosale Mystiqa, 425 A, |
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Date of Birth/Age : |
19.02.1945 |
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Qualification: |
B.E. (Elec.), M.B.A., Post Graduation Power Systems |
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Experience: |
46 Years |
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Date of Appointment : |
23.03.2009 |
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DIN No.: |
00087591 |
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Last Employment: |
Crompton Greaves Limited, |
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Name : |
Mr. Sharadkumar Ramchandra Shetye |
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Designation : |
Whole-Time Director |
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Address : |
23, Jaladarshan, |
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Date of Birth/Age : |
08.11.1948 |
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Qualification: |
B.Tech (Chemical Engineering), D.B.M., M.M.S. |
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Date of Appointment : |
23.03.2009 |
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DIN No.: |
00087560 |
KEY EXECUTIVES
|
Name : |
Mr. Shirish Padmakar Dabir |
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Designation : |
Company Secretary and Head Legal |
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Address : |
A/3, Malkauns Society, Paud Phata, Karve Road, Pune District, Pune –
411 038, Maharashtra, India |
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Date of Birth/Age : |
27.12.1963 |
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Date of Appointment : |
03.04.2006 |
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PAN No.: |
AAUPD5814B |
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Name: |
Mr. Rajeev Bhide |
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Designation: |
Managing Director |
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Name : |
Mr. Prashant Deshpande |
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Designation : |
Marketing Director |
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Name : |
Mr. Sharadkumar Shetye |
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Designation : |
Manufacturing Director |
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Name : |
Mr. Sanjay Kulkarni |
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Designation : |
General Manager – Finance and Materials |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category
of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
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|
7020316 |
88.55 |
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|
7020316 |
88.55 |
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Total shareholding of Promoter and Promoter Group (A) |
7020316 |
88.55 |
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(B) Public Shareholding |
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|
|
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|
600 |
0.01 |
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|
50 |
- |
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|
102736 |
1.30 |
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|
103386 |
1.30 |
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|
|
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|
171851 |
2.17 |
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|
|
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|
512077 |
6.46 |
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|
90781 |
1.15 |
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|
29271 |
0.37 |
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|
29271 |
0.37 |
|
|
803980 |
10.14 |
|
Total Public shareholding (B) |
907366 |
11.45 |
|
Total (A)+(B) |
7927682 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
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|
- |
- |
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|
- |
- |
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Total (A)+(B)+(C) |
7927682 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Insulation Varnishes, Unsaturated Polyester Resins, Other Paints, Varnishes and Epoxide Resins. |
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Products : |
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PRODUCTION STATUS (As on 31.12.2011)
|
Particulars |
Unit |
Installed
Capacity |
Production
for sale (excluding
captive consumption) |
|
Wire enamels and Impregnating varnishes |
Metric Tonnes |
18.493 |
12.998 |
|
Synthetic Resins |
Metric Tonnes |
5.415 |
3.615 |
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Total |
|
23.908 |
16.613 |
Note: Installed capacity depends upon the product
mix and is certified by the Management and relied on by the Auditors as this,
being a technical matter.
GENERAL INFORMATION
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No. of Employees : |
800 (Approximately) |
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Bankers : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
BSR and Company Chartered Accountants |
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Address : |
703 Godrej Castlemaine, Next to Ruby Hall, |
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Income-tax
PAN of auditor or auditor's firm : |
AAAFB9852F |
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Internal Auditors: |
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Name : |
Mahajan and Aibara Chartered Accountants |
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Address: |
1, Chawla House, 62, |
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Solicitors: |
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Name : |
Talwar Thakore and Associates |
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Address: |
3rd Floor, Kalpataru Heritage, 127, |
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Holding Company : |
ELANTAS GmbH (88.55%) |
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Fellow Subsidiary : |
v
BYK-Chemie GmbH v
ELANTAS Beck GmbH v
ELANTAS UK Limited v
ELANTAS PDG Incorporation v
ELANTAS Deatech Srl v
ELANTAS Tongling Company Limited v
ELANTAS Camattini S.P.A. v
ELANTAS Zhuhai Company Limited v
ELANTAS Isolantes Electricos Do Brasil LTDA v
BYK Chemie Asia Pacific PTE Limited v
ACTEGA AG |
CAPITAL STRUCTURE
As on 31.12.2011
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 |
|
7927682 |
Equity Shares |
Rs.10/- each |
Rs.79.277 Millions |
|
|
|
|
|
Of the above:
a) 78,529 equity
shares of Rs.10 each are allotted as fully paid-up pursuant to a contract
without payment being received in cash;
b) 840,000 equity shares
of Rs.10 each have been issued pursuant to the Scheme of Amalgamation with
erstwhile Schenectady India Limited without payment being received in cash;
c) 5,628,010
equity shares of Rs.10 each are allotted as fully paid-up by way of bonus
shares by capitalisation of reserves;
d) 7,020,316
equity shares of Rs.10 each are held by the holding company ELANTAS GmbH, a
wholly owned subsidiary of ALTANA Chemie GmbH.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
79.277 |
79.277 |
79.277 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1773.906 |
1567.850 |
1285.374 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1853.183 |
1647.127 |
1364.651 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
12.881 |
14.129 |
15.091 |
|
|
|
|
|
|
|
|
TOTAL |
1866.064 |
1661.256 |
1379.742 |
|
|
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
332.977 |
321.319 |
321.232 |
|
|
Capital work-in-progress |
146.243 |
36.305 |
3.386 |
|
|
|
|
|
|
|
|
INVESTMENT |
803.567 |
594.470 |
546.147 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
383.699 |
483.440 |
321.120 |
|
|
Sundry Debtors |
378.099 |
348.413 |
269.727 |
|
|
Cash & Bank Balances |
122.127 |
153.684 |
134.687 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
87.700 |
71.594 |
48.755 |
|
Total
Current Assets |
971.625
|
1057.131
|
774.289
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
215.258
|
194.300
|
116.742 |
|
|
Other Current Liabilities |
91.353 |
72.946 |
59.103 |
|
|
Provisions |
81.737 |
80.723 |
89.467 |
|
Total
Current Liabilities |
388.348
|
347.969
|
265.312
|
|
|
Net Current Assets |
583.277 |
709.162 |
508.977 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1866.064 |
1661.256 |
1379.742 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2667.827 |
2513.524 |
1949.004 |
|
|
|
Other Income |
81.951 |
63.068 |
68.951 |
|
|
|
TOTAL (A) |
2749.778 |
2576.592 |
2017.955 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
2339.706 |
2055.315 |
1519.901 |
|
|
|
TOTAL (B) |
2339.706 |
2055.315 |
1519.901 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
410.072 |
521.277 |
498.054 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST COSTS (D) |
0.682 |
0.327 |
0.307 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
409.390 |
520.950 |
497.747 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
49.980 |
47.621 |
36.829 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
359.410 |
473.329 |
460.918 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
112.029 |
149.391 |
144.720 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
247.381 |
323.938 |
316.198 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1079.251 |
829.169 |
586.329 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend (Final) |
35.675 |
35.675 |
35.675 |
|
|
|
Dividend Distribution Tax |
5.650 |
5.787 |
6.063 |
|
|
|
Transfer to General Reserve |
24.738 |
32.394 |
31.620 |
|
|
BALANCE CARRIED
TO THE B/S |
1260.569 |
1079.251 |
829.169 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
On account of exports at FOB Value |
112.418 |
70.419 |
57.491 |
|
|
TOTAL EARNINGS |
112.418 |
70.419 |
57.491 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
577.321 |
512.851 |
314.873 |
|
|
|
Capital Goods |
4.548 |
5.198 |
2.869 |
|
|
|
Purchase for resale |
2.942 |
7.226 |
11.003 |
|
|
TOTAL IMPORTS |
584.811 |
525.275 |
328.745 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
31.20 |
40.86 |
39.89 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2012 (1st
Quarter) |
|
Type |
|
|
Net Sales |
674.290 |
|
Total Expenditure |
588.670 |
|
PBIDT (Excl OI) |
85.620 |
|
Other Income |
43.010 |
|
Operating Profit |
128.630 |
|
Interest |
0.870 |
|
Exceptional Items |
0.000 |
|
PBDT |
127.760 |
|
Depreciation |
11.400 |
|
Profit Before Tax |
116.360 |
|
Tax |
20.800 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
95.560 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
95.560 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
9.00 |
12.57 |
15.67
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.47 |
18.83 |
23.65
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.55 |
34.34 |
42.07
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19 |
0.29 |
0.34
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.21 |
0.21 |
0.19
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.50 |
3.04 |
2.92
|
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 |
Yes |
|
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) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
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 |
PERFORMANCE:
The sales at
Rs.2667.827 millions for the year ended 31 December 2011 registered a 6 %
growth over the sales of Rs.2513.524 millions for the previous year ended 31
December 2010. However In terms of sales quantity, the tonnage sold during the
year ended 31 December 2011 has decreased by 3 % over the previous year.
Input costs,
showed an unprecedented rise during the year, thereby putting the company’s
contribution margins under severe pressure.
The combined
impact of, the virtually flat sales during the year, significantly higher raw
material procurement costs and, a weak economic climate during the year,
resulted in a marked decrease in Profit Before Tax.
INDUSTRIAL RELATIONS:
The Company had
reached amicable settlements with its workmen at Pimpri and Ankleshwar in 2010.
These wage settlements, which are for a three year period from 1 January 2010
to 31 December 2012, were negotiated separately for the two sites on the basis
of "Region cum Industry" principle.
During the year,
industrial relations continued to remain cordial.
The Board wishes
to place on record its appreciation to all employees for their continued
contribution to the performance of the Company.
MANAGEMENT
DISCUSSION & ANALYSIS REPORT:
The
year saw a certain domestic economic situation develop which adversely
influenced the performance of the Indian economy, especially of the
manufacturing sector. Whilst high inflation continued to prevail, expensive
crude oil, rising raw material prices and restricted credit availability
collectively resulted in depressing demand, slowing down Industrial production
and prospects of manufacturing growth fading as the year progressed.
On
the background of this landscape, the Company's growth prospects were also
severely affected and its margins remained under pressure, especially in the
second half of the year.. Consequently, its profits and profitability were
lower, as compared to the previous year.
The
Company however, continues to pay attention to its chosen focus areas of
Research and Development, innovation, technical modernization and supply chain
optimization in order to improve profitability, enhance competitiveness and
innovate its product offerings to customers.
SEGMENT WISE
PERFORMANCE:
Electrical Insulation
Systems:
Their
Electrical Insulation Systems (EIS) business, comprising the Business
Lines-Primary Insulation and Secondary Insulation, continues to be the mainstay
of the Company's business, accounting for 81 % of the total business of the
Company.
2011
was a turbulent year for the Indian Economy in general and for the Indian Power
Sector in particular. After two consecutive years of 8% plus growth, the GDP
growth for the current fiscal is optimistically projected at 6.8%, the lowest
in the last three years. The growth index for manufacturing segment is slated
to be just about 3.9% against an expansion of more than 7% witnessed during
last fiscal. To add to this, RBI's initiatives during 2010 and 2011 to contain
inflation by increasing bank rates for a record 13 consecutive times in about
20 months upto October 2011, also adversely affected the growth momentum by
tightening money supply, curbing investments and dampening demand.
The
power sector witnessed a sharp deceleration in growth during 2011. Almost all
major segments like rotating machines, alternators, transformers, winding wires
etc. remained subdued and under utilized during the year, particularly so, in
the second half of the year. The common observation across various segments
clearly indicates a sharp reduction in the electrical equipment enquiries and
postponement of capital projects. The market uncertainty was such that a
majority of their supply chain partners remained apprehensive building up
inventories. Even today, there is a marked uncertainty in the economic
environment which continues to cause industry to hold back expansion and growth
plans.
The
competition, particularly from overseas, on the other hand, continues to be in
an aggressive mode focusing its attention on the major equipment manufacturers
by offering attractive commercial terms for alternate systems.
On
this background, with the demand pull virtually missing, the business of EIS
remained under pressure throughout the year. In fact, with demand contraction
during the year, the EIS business of the Company went down by a marginal 1.3%
in volume, while showing a 7.3% value growth over 2010 achievements. The
margins remained under pressure despite two back to back upward price revisions
by the Company consequent to rising raw material costs. This pressure was
magnified because of a sharp and severe depreciation in the Rupee towards the
last quarter of 2011. Inspite of these adverse developments, the Company has
maintained market leadership in the EIS segment.
Looking
ahead, although the business sentiments, for the time being continue to be
depressed, the Company believes that the market will begin to recover slowly
but surely. The Government of
Electronic
and Engineering Materials:
The
business segment primarily includes three major product lines and involves the
manufacture of a variety of performance oriented, speciality products and
solutions going into diverse electronic, electrical and engineering applications.
These are:
Ř
Electronic and
Electrical (EL) Compounds
Ř Speciality
Resins
Ř Construction
chemicals
As
was seen in case of Electrical Insulations Systems, this business segment too
was adversely affected due to high raw material costs, a week rupee and a
significant demand slow down, especially in the second half of the year.
Within this
business segment, the business of Electronic and Electrical Compounds is a
major thrust area for the Company and involves manufacturing insulating systems
having casting, potting and encapsulating applications with end-use in
electronic and electrical components and parts.
Focused
efforts targeted at attaining major growth and an improved market position were
taken by the management in this product line. These efforts encompassed
technical improvements through a systematic scale-up process as well as
enhancements in response time for new product and applications development. In
addition, certain new products were developed and added in this market which
helped expand our market and maintain leadership, particularly in auto
electrical sector. The response from the customers to such new products was
very encouraging.
The
expanded range of EL Compound products under development now include speciality
epoxy and polyurethane formulations and blend that can provide a menu of
critical features to the products such as strength, flexibility, thermal
conductivity, thermal shock and high glass transition temperature. Importantly,
in keeping with global environmental concerns, the Company's product
development initiatives are also aligned to offer a range of RoHS compliant
products and systems to its customers.
In
order to address concerns about continuing future availability of key raw
materials, efforts are being made to develop synthetic alternatives in place of
raw materials of natural origin.
The Company is
quite optimistic about the revival of the Indian manufacturing economy and the
emerging opportunities and business prospects in this business segment, as a
consequence.
CURRENT FUTURE AND
OUTLOOK:
India
Inc. stands precariously balanced at this juncture and while the past two years
performance has been much below expectations, the acceleration of growth and
progress in the coming years will largely depend on the following macro level
economic and socio-economic factors:
Ř
Government's
ability to manage and control Country's widening trade and fiscal deficits and
curb inflation
Ř
Increased spending
on the education sector and allowing greater participation of the private
sector in the areas of vocational training and skills development, leading to
enhanced employability and help address the problem of talent scarcity
Ř
Timely and well
planned enhancements to the country's infrastructure
Ř
Intervention
through bold policy reforms by a strong political leadership
Ř
Revival in
investment growth
As
regards the outlook in the near future, the current situation does not directly
indicate a quick economic recovery and certain key economic factors do not
point towards an early revival of the markets. Especially for the Company's
business, power sector reforms and implementation of new capacities remain
solely on paper as of now. Nevertheless, the fundamental strength of the Indian
economy and its potential for growth cannot be doubted and provide hope for
future business growth.
Under
the circumstances, the Company takes a cautious view of the immediate future,
but believes that growth opportunities will selectively arise over the next years.
Accordingly, it will continue to work on enhancing its competitiveness and
responsiveness to the dynamic business environment.
COMPANY
PERFORMANCE:
The Company's
performance during the year registered a de-growth in profitability as compared
to the previous year. Sales at Rs.2667.827 millions during the year ended 31
December 2011 showed a small increase of 6% over the previous year. However, in
terms of volume, sales were almost flat as compared to the previous year.
As stated earlier, significant downward
pressures on product margins brought about due to very severe increase in
procurement costs of a host of key raw materials, coupled with the overall
slowing down of the economy, resulted in a decrease in overall contribution
margins vis-a vis Year 2010. Despite a number of innovative steps taken by the
Company to reduce costs through value engineering, Profit before Tax at
Rs.359.410 Millions was lower than the previous year. Profit after Tax at
Rs.247.381 Millions was lower than previous year by 24%. Net Cash Flows from
operating activities during the year however, at Rs.347.097 Millions were
higher as compared to Rs.162.732 Millions, during the previous year mainly as a
result of significant and more efficient working capital management.
INTERNAL CONTROL SYSTEMS:
The Company
has instituted a comprehensive system of internal controls aimed at
safeguarding its assets from unauthorised use as well as ensuring proper
authorisation of financial transactions. Standard Operating Procedures (SOP)
have been developed, documented and implemented in all the significant
operating and financial functions of the Company. Based on a system of checks
and balances, these SOPs provide a reasonably sound basis of assurance with
regard to propriety in usage, accounting and accounting controls, operations
monitoring, management information & reporting as well as statutory and
regulatory compliances.
The Board of Directors has appointed
an external accounting firm to undertake internal audits within the Company.
The internal auditors are empowered to examine and report to the independent
Audit Committee upon the adequacy of and compliance with the various
procedures, plans, policies and statutory requirements applicable to the
Company. The internal auditors are also responsible for assessing and reporting
on effectiveness of risk management, internal controls and governance process
within the Company.
Also, the
internal audit firm draws out an annual audit plan for verification in a manner
such that all key and critical areas of business are reviewed at least once in
2 years. This plan is formally approved by the audit committee.
The management duly considers and
takes appropriate measures in respect of the recommendations made by the
statutory auditors, internal auditors and the independent Audit Committee of
the Board of Directors.
TECHNICAL MANAGEMENT AND
INFRASTRUCTURE DEVELOPMENT:
The Company
believes that its leadership position in the electrical insulations industry is
an outcome of its long standing reputation, both, in
Such a
reputation has been built over many decades of customer satisfaction and the
Company strives to maintain it even today through technological superiority,
operational excellence and cost effectiveness.
At
Ankleshwar, a number of infrastructural modifications and additions have
resulted in decongestion and optimisation of the Resin Plant, thereby enhancing
production capacity of varnishes and thinners. Support infrastructure such as
new access roads to the storage and dispatch areas was also improved
significantly during the year.
At Pimpri,
steps were initiated to enhance production capacity in order to cater to the
market potential for epoxy filled systems. Their plans to build capacity to
satisfy the potential from new businesses in the E and EM segment were also
finalised.
Besides the
aforesaid, the Company undertakes, on an ongoing basis, technical improvements
in Plant engineering and manufacturing processes by benchmarking with its
overseas affiliates. Technical and Operations related focused groups
established under the stewardship of ALTANA/ELANTAS,
The Company
thus continuously strives to reduce running costs, lower energy consumption, enhance
plant effectiveness, improve EH and S Standards and raise product performance.
The waste treatment plant at Pimpri
was shifted during the year to a location adjacent to the production
facilities. This was coupled with technological improvements such that the
efficiency and treatment capability of the ETP has improved significantly.
Significant reduction in energy consumption for the ETP is also expected to
take place, as a consequence.
QUALITY, ENVIRONMENT MANAGEMENT AND OCCUPATIONAL
HEALTH AND SAFETY:
Quality,
Safety and Occupational Health and Environment Stewardship are the core values
of the Company, which continue to form the basis for all its decisions and
actions.
The
Company's accredited Integrated Management System (IMS), which encompasses the
management of Quality, Environmental and Occupational Health and Safety, was
subjected to a surveillance audit by TGV NORD during the year and the IMS
certification was successfully renewed.
The Company is fully committed to strengthen the process of Quality, Environment, Occupational Health and Safety Management. It implements reasonable and practicable steps to protect the health and safety of its employees and the community, as well as to ensure that its products and processes do not cause any adverse impact on environment. It believes that sustainable development is possible only through conscious steps taken to reduce energy consumption, adopt eco-friendly processes and avoid wasteful use of scarce natural resources.
STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED
31 MARCH, 2012.
[Rs. in millions, except for share data]
|
Particulars |
Three months ended |
|
March 31,2012 (Unaudited) |
|
|
PART I |
|
|
1) Income from operations |
|
|
a) Net
Sales / Income from operations (net of excise duty) |
670.298 |
|
b)
Other Operating Income |
3.987 |
|
Total Income from Operations (net) |
674.285 |
|
2) Expenses |
|
|
a) Cost of material consumed |
425.037 |
|
b) Purchase of Stock – in Trade |
0.585 |
|
c) Change in inventories of finished goods, work-in-progress and
stock-in-trade |
14.793 |
|
d) Employee Benefits Expenses |
34.855 |
|
e) Depreciation and Amortisation Expenses |
11.395 |
|
f) Other Expenses |
113.392 |
|
g) Total
Expenses |
600.057 |
|
3) Profit from
Operations before other Income and finance Costs |
74.228 |
|
4) Other Income |
43.005 |
|
5) Profit before
Finance Costs |
117.233 |
|
6) Finance Costs |
0.873 |
|
7) Profit from Ordinary
Activities before Tax |
116.360 |
|
8) Tax Expenses |
20.801 |
|
9) Net Profit
for the period |
95.559 |
|
10) Paid-up equity share capital |
79.277 |
|
(Face value of Rs.10/- each) |
|
|
11) Reserves excluding Revaluation |
-- |
|
Reserves as per balance
sheet of previous accounting Year |
|
|
12)Earning Per Share |
|
|
a) Basic and diluted EPS before Extraordinary items for the period,
for the year to date and for the previous year(not to be annualised) |
12.05 |
|
b) Basic and diluted EPS after Extraordinary items for the period, for
the year to date and for the previous year(not to be annualised) |
12.05 |
|
PART II |
|
|
A. Particulars
of Shareholdings |
|
|
1) Public Shareholding |
|
|
Number of Shares |
907366 |
|
Percentage of Shareholding |
11.45 |
|
2) Promoters and Promoter group |
|
|
a) Pledged/Encumbered |
|
|
Number of shares |
- |
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
- |
|
Percentage of Shares (as a % of the total share capital of the
Company) |
- |
|
b) Non-encumbered |
|
|
Number of shares |
7020316 |
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
100.00 |
|
Percentage of Shares (as a % of the total share capital of the
Company) |
88.55 |
SEGMENT- WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs.
in millions)
|
Particulars |
Three months ended |
|
March 31,2011 (Unaudited) |
|
|
1. Segment Revenue (Includes
Other Income allocable to segments) |
|
|
a. Electrical Insulations |
568.723 |
|
b. Electronic and Engineering Materials |
107.845 |
|
Total |
676.568 |
|
Less: Inter-segment Revenue |
|
|
Net Sales / Income
from Operations |
- |
|
|
676.568 |
|
2. Segment Results:
Profit/ (Loss) |
|
|
a. Electrical Insulations |
68.309 |
|
b. Electronic and Engineering Materials |
11.290 |
|
Total |
79.599 |
|
Less: Interest |
0.873 |
|
Add: Other Un-allocable Expenditure net of Un-allocable Expenditure |
37.634 |
|
Profit before Tax |
116.360 |
|
|
|
|
3. Capital Employed
|
|
|
a. Electrical Insulations |
654.721 |
|
b. Electronic and Engineering Materials |
177.695 |
|
c. Others |
1116.325 |
NOTS:
1. The unaudited
financial results for the quarter ended 31st March, 2012 have been
reviewed by the Audit Committee and approved by the Board of Directors at their
meeting held on 18th April 2012. The statutory auditors have carried
out a limited review and expressed an unqualified opinion.
2. The company
operates in two business segments, Electrical Insulations and Electronic and
Engineering Materials, as defined by Accounting Standard 17, ‘Segment
Reporting’ prescribed under the Companies (Accounting Standards) Rules, 2006.
3. The figures in
this statement have been regrouped where necessary.
CONTINGENT LIABILITIES NOT PROVIDED FOR:
|
Particulars |
31.12.2011 (Rs. in
millions) |
|
a) Claims against the Company not acknowledged as debts |
18.574 |
|
b) Excise duty matters |
12.715 |
|
c) Income tax matters |
8.549 |
|
d) Sales tax matters |
30.440 |
|
e) Guarantee in favour of Gujarat Industrial Development Corporation |
1.224 |
FIXED ASSTES:
Tangible Assets
v
v
v Buildings and Roads
v Plant and Machinery
v Furniture and Fixtures
v Motor Vehicles
Intangible Assets
v Goodwill
v Technical Know How
v Trademarks
v Computer Software
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.55.02 |
|
|
1 |
Rs.85.93 |
|
Euro |
1 |
Rs.68.96 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPTP |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
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 |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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.