MIRA
INFORM REPORT
|
Report Date : |
31.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
20 MICRONS LIMITED |
|
|
|
|
Registered
Office : |
9-10, G.I.D.C. Industrial Estate, Waghodia, Baroda – 391760, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
29.06.1987 |
|
|
|
|
Com. Reg. No.: |
04-009768 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.143.310 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999GJ1987PLC009768 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDM04206G BRDM03839D BRD200030C |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of White Minerals |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2300000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. The
company has recorded an increase in its sales turnover and profits during
2012. However, trade relations are reported as fair. Business is active.
Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
(Long Term Bank Facilities) CARE BBB – |
|
Rating Explanation |
Moderate Credit Risk |
|
Date |
March, 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
(Short Term Bank Facilities) CARE A3
|
|
Rating Explanation |
Highest Credit Risk |
|
Date |
March, 2012 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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 : |
9-10, G.I.D.C. Industrial Estate, Waghodia, Baroda – 391760, Gujarat, India |
|
Tel. No.: |
91-2668-264077 |
|
Fax No.: |
91-2668262447 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
347, G.I.D.C. Industrial Estate, Waghodia, Baroda –
391760, Gujarat, India |
|
Tel. No.: |
91-2668-292290 |
|
Fax No.: |
91-2668-262447 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
134 - 135, Hindustan Kohinoor Industrial Complex, L.B.S. Marg,
Vikhroli (West), Mumbai 400 083, Maharashtra, India |
|
Tel. No.: |
91-22-25771325 / 2577 / 1350 / 32401006 |
|
Fax No.: |
91-22-25771333 / 1325 / 1350 |
|
E-Mail : |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Chandresh S. Parikh |
|
Designation : |
Chairman & Managing Director |
|
Qualification : |
Master of Science (Chemistry) |
|
|
|
|
Name : |
Mr. Rajesh C. Parikh |
|
Designation : |
Managing Director |
|
Qualification : |
B.E. (Mechanical), MBA (Finance) |
|
|
|
|
Name : |
Mr. Atil C. Parikh |
|
Designation : |
Joint Managing Director |
|
Qualification : |
B.E. (Chemical), MBA (Finance) |
|
|
|
|
Name : |
Mr. Sudhir R. Parikh |
|
Designation : |
Director [Finance] |
|
Qualification : |
Chartered Accountant |
|
|
|
|
Name : |
Mr. Naresh S. Makhija |
|
Designation : |
Nominee Director IDBI |
|
Qualification : |
B.Com, CAIIB |
|
|
|
|
Name : |
Mr. Ram A. Devidayal |
|
Designation : |
Director |
|
Qualification : |
MBA, M.Com |
|
|
|
|
Name : |
Mr. Pravinchandra M. Shah |
|
Designation : |
Director |
|
Qualification : |
M.Com, LLB, AICWA and ACS |
|
|
|
|
Name : |
Mr. Atul H. Patel |
|
Designation : |
Director |
|
Qualification : |
Graduate in Textile Engineering |
KEY EXECUTIVES
|
Name : |
Mr. Nikunj J. Savaliya |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee |
|
|
Name : |
Mr. Ram A. Devidayal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pravinchandra M. Shah |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Atul H. Patel |
|
Designation : |
Member |
|
|
|
|
Remuneration Committee |
|
|
Name : |
Mr. Pravinchandra M. Shah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Atul H. Patel |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Naresh S. Makhija |
|
Designation : |
Member |
|
|
|
|
Nomination and Compensation Committee |
|
|
Name : |
Mr. Chandresh S. Parikh |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rajesh C. Parikh |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Pravinchandra M. Shah |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Ram A. Devidayal |
|
Designation : |
Member |
|
|
|
|
Share Transfer and Investor's/Depositors'
Grievances Committee |
|
|
Name : |
Mr. Pravinchandra M. Shah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rajesh C. Parikh |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Sudhir R. Parikh |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Ram A Devidayal |
|
Designation : |
Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of
Shareholder |
No. of Shareholders |
Total Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
4,904,193 |
34.22 |
|
|
3,644,412 |
25.43 |
|
|
8,548,605 |
59.65 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
8,548,605 |
59.65 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
2,041,388 |
14.24 |
|
|
|
|
|
|
1,348,920 |
9.41 |
|
|
1,091,508 |
7.62 |
|
|
1,300,607 |
9.08 |
|
|
166,652 |
1.16 |
|
|
925,262 |
6.46 |
|
|
28,945 |
0.20 |
|
|
179,748 |
1.25 |
|
|
5,782,423 |
40.35 |
|
Total Public shareholding (B) |
5,782,423 |
40.35 |
|
Total (A)+(B) |
14,331,028 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
14,331,028 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionsBUSINESS DETAILS
|
Line of Business : |
Manufacturer of White Minerals |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· State Bank of India · IDBI Bank Limited ·
EXIM Bank Limited |
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Facilities : |
Notes: Maturity profile of
borrowings (as at March 31,2012) 1) Secured Borrowings The
company has availed secured term loans from Rs.553.871 Millions as against sanctioned
limit of Rs.901.138 Millions. The principal amount of the loans to each of
the lenders shall be repayable in equated monthly installments ranging over a
period from 48 months to 72 months. The repayment scheduled as per the
sanction terms for sanction amounts of loans is as under:
2)
Unsecured
Borrowings (Rs. In Millions)
Details of
securities The term loans obtained as
consortium loans are secured by way of 1 first pari-passu
charge over i
Plot No. 157, Mamura, Bhuj (admeasuring 3.20 acres) ii Plot
No. 172,174 and175, Vadadala, Baroda (admeasuring 03.00.01 hectares) iii
Plot No. F-75/76/82/85 andH-83/84, RIICO I.A., Swaroopganj, Rajasthan
(admeasuring 9,457.50 sq.mtrs.) iv
307/308, Arundeep Complex, Race Course, Baroda (admeasuring 1,405 super built
up area) v
134,135 1st Flr, Hindustan Kohinoor Ind.Complex, LBS Marg,Vikhroli (W),Mumbai
(admeasuring 870 sq.ft.) vi
Corporate office at plot no.347, GIDC, Waghodia vii
Plot no. 253-254 (area 3000 sq.mtrs.) and plot no.728 and729 (area 4061 sq mtrs),
GIDC, Waghodia viii
Plot no. F-140 (admeasuring 2304 sq.mtrs.), F-141 (admeasuring 2275
sq.mtrs.), F-142 (admeasuring 1950 sq.mtrs.), RIICO Industrial Area, Alwar,
Rajasthan. ix
Plot no.23 and24 (area 3.29 acre), SIPCOT Industrial Estate, Phase-II, Hosur,
Krishnagiri, Tamilnadu x
Plot no.104/3, village Puthur, Tirunvelli, Tamil Nadu (admeasuring 20,261
sq.mtrs.) xi Plant and machinery, both present and future, wherever situated at all factories and premises pertaining to above locations. 2 second pari-passu
charge over: current assets, both present and future, wherever situated, but pertaining to the division / factory / premises at Vadadala, Waghodia and Bhuj (all in Gujarat), Alwar and Swaroopganj (both in Rajasthan), Hosur and Tirunvelli (both in Tamil Nadu) and Vikhroli (W), Mumbai. 3 All the term loans are further collaterally secured by
personal guarantee of Chairman and Managing Director, Managing Director and
Joint Managing Director of the Company. 4 Term loans of Rs.17.630 Millions
(Previous Year: Rs.16.327 Millions) obtained for
acquisiton of assets (vehicles) are secured only by the hypothecation of the
respective assets financed. Details of securities The working capital finance
facilities are secured by way of: 1
First pari-passu charge over: current
assets, both present and future, wherever situated, but pertaining to the
division/factory/premises at Vadadala, Waghodia and Bhuj (all in Gujarat),
Alwar and Swaroopganj (both in Rajasthan), Hosur and Tirunvelli (both in
Tamil Nadu) and Vikhroli (W), Mumbai. 2
Second pari-passu charge on factories and premises and plant and machineries,
both present and future, wherever situated 3 The
working capital finance facilities are further collaterally secured by personal
guarantee of Chairman and Managing Director, Managing Director and Joint
Managing Director of the Company. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Manubhai and Company Chartered Accountants |
|
Address : |
Ahmedabad, Gujarat, India |
|
|
|
|
Enterprises where
control exists (subsidiaries): : |
·
20
Microns SDN BHD ·
20
Microns Nano Minerals Limited · 20 Microns FZE |
|
|
|
|
Enterprises where
significant influence exists : |
·
DMC
Limited (formerly known as Dispersive Minerals and Chemicals India Limited) ·
Bruno
Industrial Products Limited ·
Microns
Logistic Private Limited ·
Eriez
Finance and investment Limited ·
Aric
20 Microns Infracon Private Limited (formerly known as Eric Finance and
Investment Limited) ·
Platy
Minerals Private Limited (formerly known as Trio Techno Minerals Private
Limited) ·
Nanotech
Minerals India Private Limited ·
Ultra
Minechem Equipments Private Limited ·
20
Microns Foundation Trust. · 20 Microns ESOS Trust. |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,43,31,028 |
Equity Shares |
Rs.10/- each |
Rs.143.310
Millions |
Notes:
Rights, preferences
and restrictions attached to shares
i The
Company has only one class of shares referred to as equity shares having a par value
of Rs.10/-.
ii Each
holder of equity shares is entitled to one vote per share which can be
exercised either personally or by an attorney or by proxy.
iii The
dividend proposed by the Board of Directors is subject to approval of the
shareholders in the ensuing general meeting except in the case of interim
dividend.
iv In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.
Details of
shareholders holding more than 5% shares in the Company:
|
Name of Shareholder |
31.03.2012 |
|
|
|
No. of Shares held |
% of holding |
|
Eriez Finance and Investment Limited |
3,644,412 |
25.43 |
|
Mr. Chandresh S. Parikh |
1,800,200 |
12.56 |
|
Mr. Rameshbhai B. Patel |
720,900 |
5.03 |
|
Gujarat Venture Capital Fund – 1995 |
-- |
0.00 |
|
Total |
6,165,512 |
43.02 |
Shares reserve for
issue under commitment to convert warrants into equity shares
i The shareholders in the Extra-ordinary general meeting held on April 23, 2012 approved the allotment of 15,00,000 warrants on a preferential basis to promoters and other investors as specified in the notice of the Extra-Ordinary General Meeting issued by the Company on March 23, 2012. Each warrant is convertible into 1 (one) Equity Share of the Company of the face value of Rs.10/- each at a premium of Rs.80/- per share. Each warrant being priced at Rs.90/- per share. On compliance of conditions of issue of warrants the warrants shall be converted in to 15,00,000 Equity Shares out of the unissued portion of share capital.
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 |
143.310 |
143.310 |
143.310 |
|
|
2] Share Application Money |
51.500 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
380.549 |
302.722 |
272.686 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
575.359 |
446.032 |
415.996 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1117.404 |
703.044 |
714.514 |
|
|
2] Unsecured Loans |
148.849 |
111.197 |
129.005 |
|
|
TOTAL BORROWING |
1266.253 |
814.241 |
843.519 |
|
|
DEFERRED TAX LIABILITIES |
109.220 |
104.794 |
98.766 |
|
|
|
|
|
|
|
|
TOTAL |
1950.832 |
1365.067 |
1358.281 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
740.061 |
703.374 |
612.898 |
|
|
Capital work-in-progress |
356.722 |
56.995 |
48.218 |
|
|
|
|
|
|
|
|
INVESTMENT |
73.792 |
71.928 |
71.928 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
480.616
|
390.995 |
327.610 |
|
|
Sundry Debtors |
443.335
|
395.549 |
286.773 |
|
|
Cash & Bank Balances |
77.949
|
72.845 |
64.332 |
|
|
Other Current Assets |
51.811
|
24.291 |
41.360 |
|
|
Loans & Advances |
226.513
|
205.575 |
101.120 |
|
Total
Current Assets |
1280.224
|
1089.255 |
821.195 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
216.017
|
232.806 |
158.360 |
|
|
Other Current Liabilities |
252.427
|
298.466 |
19.464 |
|
|
Provisions |
31.523
|
25.213 |
18.134 |
|
Total
Current Liabilities |
499.967
|
556.485 |
195.958 |
|
|
Net Current Assets |
780.257
|
532.770 |
625.237 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1950.832 |
1365.067 |
1358.281 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2637.973 |
2358.602 |
1766.305 |
|
|
|
Other Income |
39.046 |
15.509 |
32.098 |
|
|
|
TOTAL (A) |
2677.019 |
2374.111 |
1798.403 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
1416.919 |
1311.165 |
896.394 |
|
|
|
Changes in Inventories of Finish Goods |
(29.776) |
29.008 |
(15.399) |
|
|
|
Employee Benefit Expense |
199.879 |
178.313 |
163.362 |
|
|
|
Other
Expenses |
737.407 |
600.085 |
524.033 |
|
|
|
Exceptional
Items |
0.000 |
3.942 |
0.000 |
|
|
|
TOTAL (B) |
2324.429 |
2122.513 |
1568.390 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
352.590 |
251.598 |
230.013 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
140.852 |
106.161 |
80.404 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
211.738 |
145.437 |
149.609 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
63.180 |
53.330 |
47.505 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
148.558 |
92.107 |
102.104 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
40.750 |
37.088 |
29.130 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
107.808 |
55.019 |
72.974 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
228.809 |
191.447 |
172.012 |
|
|
TOTAL EARNINGS |
228.809 |
420.256 |
172.012 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Material & its Freight |
334.485 |
280.268 |
51.428 |
|
|
|
Machinery Spares |
0.897 |
1.526 |
1.481 |
|
|
|
Capital Goods |
4.486 |
1.550 |
0.000 |
|
|
TOTAL IMPORTS |
339.868 |
283.344 |
52.909 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
7.52 |
3.84 |
5.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.03
|
2.32 |
4.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.63
|
3.91 |
5.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.35
|
5.14 |
7.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.21 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.07
|
3.07 |
2.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.56
|
1.96 |
4.19 |
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
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 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] |
PAN of Director, if
available |
No |
|
32] |
Passport No of Director,
if available |
No |
|
33] |
Voter ID No of Director,
if available |
No |
OVERVIEW OF
ECONOMY
The world economy has been passing through stress. Financial turmoil in
Europe has affected other countries. This contagion has pushed up borrowing
costs and slowed growth in many parts of the world, and capital flows to
developing countries have fallen. As a result, and despite a strengthening of
activity in the United States and Japan, world trade has slowed down. Under
this scenario, the forecast for global economic growth has been revised
downward to about 2.5% in 2012. Indian economy also slowed down in 2011-12
mainly due to weak industrial growth. Inflation remained a major concern
constraining RBI to pursue tight monetary policy.
In this generally depressed scenario, the Company has achieved about 13%
growth in Gross sales value which stood at Rs.2677.019 Millions for the year.
The management has taken measures as part of its continuous improvements to
strengthen operations and viability. It has widened and improved the product
range and price points in domestic as well as international markets to enlarge
the customer base.
PERFORMANCE REVIEW
During the year under report, the Company has achieved a Total Revenue
of Rs.2677.019 Millions (Up by 12.76% from Rs.2374.112 Millions of the previous
year). The operations have resulted in a Net Profit before Depreciation,
Interest and Tax (PBDITA) of Rs.352.590 Millions (Up by 37.97% from Rs.255.541
Millions of the previous year).
FUTURE OUTLOOK
The Company has achieved a growth rate of 13% in Gross Sales during the
year. This growth rate is expected to continue alongwith higher profitability
and inspire the Company and its dedicated staff to focus more attention on all
its applications. The Current year and all-coming years would walk on the foot
prints with highest earnings and the continued support of effective sales
force, improvement in production facilities and implementation of innovative
ideas.
During the year, the Company vigorously followed steps to improve plant
efficiency, customers' satisfaction, cost reduction and exploitation of new
applications. The Company is still continuing to consolidate, relocate and
outsource manufacturing by constantly reviewing market scenario. Product
development is an ongoing process carried out in a well equipped R and D
Centre. This will enable the Company to review the range of products offered to
the Customers.
The Company is always looking on enhancing the interest of all the
stakeholders by better utilization of all its resources.
The Company expects robust growth in existing Products and contribution
of new products by adopting the following strategies:
·
Expansion of Mineral Portfolio by adding new
products;
·
Enhance value chain by launching new synthetic
minerals products by leveraging R and D strength;
·
Expand Geographical locations by acquiring Mines
and infrastructure facilities in Mineral rich countries in Middle East and
South East Asia.
MANAGEMENT DISCUSSIONS AND ANALYSIS
EXPORT
Minerals export from India is growing sharply
over few decades. Technology up gradation has given a great advantage to Indian
resources to compete with European and American suppliers. Further, export
opportunity has also increase due to foreign currency which becomes direct
incentive to exporter. In addition to that in Europe and USA strict Mining
rules and regulation has discouraged mining activity and as a result
International buyers have started their focus to source from India and China.
Since most of the International players has their own manufacturing facilities
in India, it becomes easy for them to extend approval for their global use.
The opportunities for the Company are ahead to
increase its global business in the area of Calcined Kaolin, Talc, Mica and
Baryte. Company is supplying various fillers and extenders to 53 countries
across the globe.
Company has major breakthrough in Calcined
Kaolin in multinational Companies which may double the sales and contribute to
good profitability. The Company has been successful in attracting and creating
a strong base for future strategic alliances with major distribution in USA , Japan, Europe and Far East countries.
PAPER AND PLASTIC DIVISION (P AND P)
During the Year 2011-12 P and P division had
grown 11% in Value terms over previous year with growth in all the Industrial
segments viz. Paper, Plastics, Cosmetics etc. Paper segment contributed maximum
to the growth of division, with 40% growth over previous year and also slurry
business penetration with long term contractual business deals with the
customers had thrown open new segment with excellent potential for the business.
Division has started focusing on PVC segment during the year 2010-11 with
penetration in small pockets resulting in to PVC segment growth of 24% in value
terms during 2011-12 as compared to previous year. Division has started
focusing on Cosmetic application and achieved a growth of 190% as compared to
previous year.
In the PVC segment, during the year with the
concept marketing of specialty valued added products efforts has been made to
penetrate in major customers of Cable and Pipe segments and are looking forward
to have more inroads in the segment with good contribution in the years to
come.
Overall Paper and Plastic Division envisages
higher profitable growth compared to previous year growth with all segments of
the division. Paper, Plastics and Cosmetics looking for the great year ahead.
COATING AND CONSTRUCTION DIVISION (C AND C)
The year began with its own set of challenges
from rising inflation to regulatory uncertainties. Amidst this chaos sensed in
various industries, an optimistic approach was undercurrent and led to some
sort of erratic stability in the country, leading the year with a leveraged
growth and a tracked performance.
Speaking about the Coating and Construction
division, it is an ensemble of various interesting applications from Paints and
Coatings leading the chart, to other minor yet significant diverse applications
such as Adhesives and Sealants, Construction and Oil Well Drilling. This
division exemplifies the diversity that industrial minerals can offer to its
end users.
An average of 30% growth within this division
has been fetched from various applications that have significantly contributed
to the overall growth of the Company. Hedging the risk between multiple
applications, there have been some low key to exponential growth across the
table.
The Paint industry has shown great signs of
improvement in this year with additional capacities getting functional and
greater demand from the consumers. This industry which earlier worked in a
cyclical manner has now outdone themselves and is now a year round consistent
industry. This truly helps them forecast their supplies and plan their
production capacities accordingly. Apart from the traditional major Paint
customers, their focus on introducing and educating the Small Scale and Middle
Scale Paint Industry with their unique range of high end products has helped
them achieve a phenomenal growth in 2011-12 and is expected to follow the same
trend in the years to come.
The entire year has been pretty stagnant for
the construction Industry due to the lack of consumer buying and rising costs,
but by grabbing few new projects in this industry and introducing new products
for the industry, it helped them balance ourselves on their feet unlike others
who were literally crawling.
The field of Oil well drilling also has
conducted remarkable increase in the sales for the year that passed. A range of
new products for this industry have already been lined up and the results would
be visible in the next financial year. The Adhesives and Sealants industry has
also been a great contributor with limited players operating in this industry
and their entire range designed for them helps them grab a better market share.
Their new range of Ultrafine Calcium Carbonate
has truly penetrated within these industries and with new innovations always by
the stride, 20 Microns drives the passion to create a difference for its
customers with its new product innovations and continued drive to optimize
their customers product formulations.
Having introduced the unique concept of
Satellite Plants and Product Slurry concepts in the Indian Paint Industry in
2010-11, the idea has already been seeded and they await the fruits to ripen
anytime with the new generations plants being designed at customers end.
An exciting 2012-13 lies ahead of them with
lots of innovation, refurbished and new products, partial replacement of
products, their State of Art, Product Development Centre and New generation
Plants.
MINING AT A GLANCE
The Company carries out its activity of
mineral excavation with the sole mission of providing High quality, cost
effective and time bound raw mineral supply to all production location to
fulfill uninterrupted supply of finish products to customer during 2011-12.
The basic aim and objective of the Company is
to bridge the gap between demand of non metallic white industrial minerals for
all industrial applications like Paint, Plastics, Paper, Rubber, Ceramics and
supply to accomplish its mission of become No. 1 Company brand image
“20MICRONS” in Mineral industries.
The Company has also participated in Global
Mining Summit in 2011 concurrently with International Mining and Machinery
Exhibition 2011 held at Kolkata, with a object of adoption of new mining
technology for soft and hard mineral mining.
In order to monitor physical and financial
performance of mining activity, a month-wise and quarter-wise annual action
plan is prepared and progress closely monitored as part of Company's endeavor
for backward integration to meet its critical raw material need.
CONTINGENT
LIABILITIES
(i) Claims against the company not
acknowledged as debt:
The Company does not have any claims
note acknowledged as debt as on the balance sheet date (Previous Year: Rs. Nil)
(ii) Other money for which the
company is contingently liable - Matter under dispute:
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Demand
of Sales Tax disputed in appeal. |
0.585 |
0.859 |
|
Claims
from Excise authorities not acknowledged as debt. |
14.768 |
14.868 |
|
Demand
of Income Tax disputed in appeal. |
20.931 |
16.824 |
|
|
|
|
(iii)
Guarantees and Letter of Credits:
-
Company has
given guarantee of Rs.125.000 Millions (Previous Year: Rs.125.000 Millions) on
behalf of subsidiary company.
-
Guarantee
given by Company’s Bankers in normal course of business Rs.3.119 Millions
(Previous Year: Rs.1.349 Millions).
-
Inland /
Foreign Letter of Credit issued by Bank Rs.37.259 Millions (Previous Year:
Rs.49.918 Millions).
FIXED ASSETS
·
Freehold
Land
·
Leasehold
Land
·
Office
Building
·
Leasehold
Office Building
·
Factory
Building
·
Plant
And Machinery
·
Vehicles
·
Furniture
· Office Equipments
WEBSITE DETAILS:
CORPORATE OVERVIEW
Subject was founded in 1987 in the bustling industrial
city of Vadodara to manufacture White Minerals of supreme quality. Ever since
then, Subject sustained efforts towards excellence and innovation has made it a
prominent name in the industrial arena.
Subject is India’s largest producer of white minerals
offering innovative products in the field of Functional fillers, Extenders and
Speciality chemicals. Based on a profound understanding of diverse industrial
requirements, the company has empowered its clients with customized products
based on their specific requirements. Their exceptional product quality is
equally matched with their excellence in problem solving capabilities and
technical customer service.
Owing to well-equipped laboratories and the
most advanced control instruments, Subject produces minerals of highest
standard of quality and consistency. A dedicated R and D center is the focal
point of innovations that leads to formation of advanced quality products.
Experienced and competent Chemists, Geologists and Engineers make up the workforce
at the R and D center and Quality control laboratory.
From textile, plastic, rubber, adhesive and
paints that add colour to the world, to Paper and Printing Ink that set thought
and life in motion, to the Agro-chemicals that runs the agriculture industry in
shape, Subject is reaching to the lives of millions, everyday.
Today, they are a multi-product company
catering to a cross section of industry across the globe. With the best
manufacturing practices and state-of-the-art R&D center, the international
business forms one-fourth of the Subject business with a strong presence in
more than 47 countries across Europe, Africa, Australia and Asia Pacific.
TIME LINE
1990 It
was investment in expanding the micronization process and R and D facilities.
1991 Further
expansion in capacities by 17000 TPA
1992 Acquired
Calcite Mines
1993 Implementation
of Total quality systems
1994 Further
expansion in production capacities by 17,000 TPA
1994 R&
D division of 20 Microns becomes a separate entity by itself.
1995 New
manufacturing location installed at Vadadla with 18,000 TPA capacity.
1996 New
manufacturing location installed at Hosur( South India) with 15,000 TPA
capacity.
1997 Diversified
Into Kaolin processing and installed a new plant at Bhuj.
1998 Acquired
Kaolin Mines and mining lease at bhuj.
1999 Installation
of Cryogenic super conducting magnet at bhuj site for kaolin processing.
2000 Introduced
a Pozzolanic material called Metacem as construction chemicals.
2001 New
manufacturing location installed at Alwar with 6000 TPA.
2002 New
manufacturing location installed at Tirunelvelli with 6000 TPA
2003 Modernization
and upgradtion of Vadadla plant to produce ultrafine calcium carbonates
2005 Started
manufacturing new products like Synthetic Barium sulphates, Aluminium
silicates.
2005 Started
new generation processing aids to promote better dispersions for our customers.
2006 Started
manufacturing new products like Inorganic Thickeners, Matting Agents,
Opacifiers
2007 Established
new territories and Sales channels in the European, North American and Latin
American continents
2008 20
Microns began its operations in Ipoh, Malaysia for Calcium Carbonate
2008 20
Microns Limited came out with an IPO and got listed on the BSE and NSE
2009 New
manufacturing location installed at Silvassa, with Wet Ground Calcium Carbonate
processing facilities and expansions happened at various locations from IPO
proceeds.
2010 SAP
implementation in 20 Microns Limited.
2011 20
Microns Limited R and D Centre gets recognized & approved by DSIR,
Government of India
PERFORMANCE REVIEW:
In a year marked with challenges and opportunities, the Company has achieved good financial results on a consolidated basis.
Revenues have grown by 39% to Rs. 2620.000 Millions which was translated in to higher profitability for the first 3 quarters of FY 2010-11 but due to various reasons like increase in freight inward and outward and increase in raw material prices, they could not achieve profit in last quarter of the year. However, they managed to achieve overall operational profit of Rs. 220.000 Millions against Rs. 167.000 Millions of the last year and Net Profit of Rs. 65.000 Millions against Rs. 60.000 Millions of the last year.
This average performance has helped us to reward their shareholders with a total dividend of Rs. 1.50/- per share, subject to approval of shareholders.
CAPACITY EXPANSION:
The Company has invested approx. Rs. 400.000 Millions in CAPEX to increase the capacities at various locations in the last 18 months. This will be translated in to increased sales realization in the year 2011-12 which will result in improved Operating and Net Profit for the year. Investment in increasing capacities will continue in next three years as the demand for their products is increasing and this should give us better turnover and profits for the years to come.
TECHNOLOGY:
The Company has modernized all its existing plants to reduce operating cost. The Company has also developed new products for the Paper and Construction Industry where they expect substantial growth in coming years. This will add to their operating profit.
TALENT MANAGEMENT:
The Company recognizes that talent management is a constantly evolving discipline which needs to engage with dynamic environment. Built on an entrenched set of core principles, the Company’s HR policies designed to ensure that it remains the employers of choice. Compensation packages have been revised to ensure that superior resources are sufficiently incentivized to join and stay with the Company. The Company also offers all unmatched canvas of professional opportunity for growth and development of each employee.
INFORMATION
TECHNOLOGY:
The Company believes an IT as a business enabler which can add a cutting edge difference to its capabilities. The Company has successfully implemented ERP system that enables online data capture and seamless integration of function within the business verticals.
SUSTAINABLE
DEVELOPMENT:
Sustainable development is the key to an organization to survive and thrive. Accordingly, they have set out a journey to achieve world class sustainable development through maximum utilization of Mining reserve with zero wastage plan, employee engagement and welfare measures.
OUTLOOK:
The Company believes that in the forthcoming year, it will continue to remain biggest supplier of white performance minerals to Coating, Plastic, Paper and Construction Industries. Some areas of opportunities are to increase in manufacturing capacities at North region by 300%, South by 200%, West by 200% and Bhuj by 100%.
DEVELOPMENT PROJECT:
Developmental business has been playing an increasingly strategic role in the growth of the Company. The Company has now introduced host of new high value products for Paper, Paint and Plastic Industries which should provide better margins for coming years.
Before concluding, I would like to appreciate efforts of all the employees of the organization for taking this Company to greater heights.
I would like to thank all my colleagues on the Board who have jointly steered the Company during the difficult period of FY 2010-11.
I am also thankful to all other stakeholders like shareholders, financial institutions, members of their supply chain and regulators for providing support to their efforts.
The Company is committed to value creation through profitable growth of its business and they reaffirm their commitment to uphold highest standards of Corporate Governance.
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.55.44 |
|
|
1 |
Rs.87.12 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|
47 |
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.