1. Summary Information
|
|
|
Country |
India |
|
Company Name |
CARBORUNDUM UNIVERSAL LIMITED |
Principal Name 1 |
Mr. M.M. Murugappan |
|
Status |
Good |
Principal Name 2 |
Mr. K. Srinivasan |
|
|
|
Registration # |
18-000318 |
|
Street Address |
Parry House, 43
Moore Street, Chennai-600001, Tamil Nadu, India |
||
|
Established Date |
21.04.1954 |
SIC Code |
-- |
|
Telephone# |
91-44-25211652 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-44-25230706 |
Business Style 2 |
Seller |
|
Homepage |
Product Name 1 |
Abrasives-Bonded and Coated |
|
|
# of employees |
Not Available |
Product Name 2 |
Electrominerals |
|
Paid up capital |
Rs.186,940,000/- |
Product Name 3 |
Industrial Ceramics |
|
Shareholders |
Promoters and Promoter Group – 42.10% Public Shareholding – 57.90% |
Banking |
State Bank of India |
|
Public Limited Corp. |
YES |
Business Period |
58 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A (65) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Direct
Holding |
India
|
Net Access (India) Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,359,270,000 |
Current Liabilities |
1,339,460,000 |
|
Inventories |
1,548,040,000 |
Long-term Liabilities |
2,273,400,000 |
|
Fixed Assets |
3,732,120,000 |
Other Liabilities |
538,130,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
4,150,990,000 |
|
Invest& other Assets |
1,793,800,000 |
Retained Earnings |
5,095,300,000 |
|
|
|
Net Worth |
5,282,240,000 |
|
Total Assets |
9,433,230,000 |
Total Liab. & Equity |
9,433,230,000 |
|
Total Assets (Previous Year) |
8,788,800,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
9,125,660,000 |
Net Profit |
1,242,580,000 |
|
Sales(Previous yr) |
7,310,100,000 |
Net Profit(Prev.yr) |
580,130,000 |
MIRA
INFORM REPORT
|
Report Date : |
20.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
CARBORUNDUM UNIVERSAL LIMITED |
|
|
|
|
Registered Office : |
Parry House, 43 Moore Street, Chennai-600001, Tamil Nadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
21.04.1954 |
|
|
|
|
Com. Reg. No.: |
18-000318 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs.186.940 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L29224TN1954PLC000318 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEC00173F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACC2474P |
|
|
|
|
Legal Form : |
Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business : |
Manufacturing and Selling of Abrasives Grinders Like Grinding Wheels
and Coated Abrasives, Refractories such as Super Refractories (Fired) / (Castable),
Electrocast Refractories, Electrominerals such as white Aloxite Grains, Brown
Aloxite Grains, Silicon Carbide Grains, Calcined Bauxite, etc. |
|
|
|
|
No. of Employees : |
1584 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
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 21000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
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 normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Parry House, 43 Moore Street, Chennai-600001, Tamil Nadu, India |
|
Tel. No.: |
91-44-25211652 / 25306789 / 42216789 |
|
Fax No.: |
91-44-25230706 / 42216149 |
|
E-Mail : |
mmm@cumiho.rpgms.ems.vsnl.net.in |
|
Website : |
|
|
|
|
|
Factory : |
Abrasives a. 655, Thiruvottiyur High Road, P B No.2272, Thiruvottiyur,
Chennai-600019, Tamil Nadu, India Tel : 91-44-25733322 / 42211000 Fax : 91-44-25733499 / 25733280 / 25731027 b. Plot No.48, SIPCOT Industrial Complex, Hosur 635 126, Dharmapuri
District, Tamil Nadu, India Tel: 91-4344-276864 / 277059 / 276630 / 279855 / 279844 Fax: 91-4344-277060 c. Gopalpur Chandigarh, P.O. Ganga Nagar, Kolkata-700132, West Tel : 91-33-25384418 Fax : 91-33-25386331 d. C-4 and C-5, Kamarajar Salai, MMDA Industrial Complex, Maraimalai
Nagar 603 209, Kanchipuram District, Tamil Nadu, India Tel : +91-4114-253093 / 253195 Fax : +91-4114-253097 e. F-1/2, F2 - F5, SIPCOT Industrial Park, Pondur “A” Village,
Sriperumbudur - 602 105, Kanchipuram District, Tamil Nadu, India Tel: 91-44-37100204 Fax : 91-4114-253097 f. K3, ASAHI Industrial Estate, Latherdeva Hoon, Mangalore Jhabrera
Road, PO Jhabrera, Tehsil Roorkee, Hardwar District, Uttranchal-247667,
India Tel: 91-1332, 275846 / 224064 Fax : 91-1332 224062 g. Power Tools Division, Plot No.77, Bommasandra, Jigani Link Road,
Jigani Industrial Area, Jigani, Bangalore-526106, Karnataka, India Tel: 91-80-27839041/42/43/44 Fax : 91-80-27839040 Ceramics a. Plot No.47, SIPCOT Industrial Complex, Hosur-635126, Dharmapuri
District, Tamil Nadu, India Tel : 91-4344-276027 / 276418 Fax : 91-4344-276028 b. Plot No A-7/2 MIDC Area, Chikalthana, Tel : 91-240-2482568 Fax : 91-240 2482003 c. Super Refractories Division, Plot No.102 and 103, SIPCOT Industrial
Complex (Phase II), Ranipet-632403, Tamil Nadu, India Tel : 91-4172-244582 / 244197 Fax : 91-4172-244982 d. Super Refractories Division – Plant 2, Vinnampalli Post, Katpadi
Taluk, Vellore District – 632516, Tamil Nadu, India Tel : 91- 4172 – 255397/ 646030 Fax :91- 4172 – 255395 e. Plot Nos. 35,37, 48-51, Adhartal Industrial Estate,
Jabalpur-482004, Madhya Pradesh, India Tel : 91-761-2680398 / 6539996 Fax: 91-761-2680678 Electrominerals a. PB No.1 Kalamassery, Development Plot P.O, Kalamassery-683109,
Ernakulam District, Kerala, India Tel : 91-484-2541058/ 2540309/2540525 Fax : 91-484-2532019 b. PB No. 3 Nalukettu, Koratty-680308, Trichur District, Tel : 91-480-2732313 /2732061 Fax : 91-480-2732821 c. Maniyar Hydroelectric Works, Maniyar P.O., Vadasserikara,
Pathanamthitta District, Kerala-689662, Tel : 91-4735-274223 Fax : 91-4735-274223 d. Bhatia Mines, Bhatia Western Railway, Jamnagar District,
Gujarat-361315, Tel : 91-2891-233464 e. P.B No.2 Tel : 91-2892-262063 / 262065 Fax : 91-2892-262061 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. M.M. Murugappan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K. Srinivasan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Subodh Kumar Bhargava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T.L. Palani Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sridhar Ganesh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shobhan M. Thakore |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. Lakshminarayan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay Jayavarthanavelu |
|
Designation : |
Director |
|
|
|
|
Management
Committee: |
|
|
Name : |
Mr. K. Srinivasan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P.R. Ravi |
|
Designation : |
President – Industrial Ceramics |
|
|
|
|
Name : |
Mr. V. Ramesh |
|
Designation : |
Abrasives Chief Financial Officer |
|
|
|
|
Name : |
Mr. M. Muthiah |
|
Designation : |
Senior Vice President – Human Resources |
|
|
|
|
Name : |
Mr. P. L. Deepak Dorairaj |
|
Designation : |
Senior Vice-President (Operations) - Abrasives |
|
|
|
|
Name : |
Mr. N. Ananthaseshan |
|
Designation : |
Senior Vice-President - Electro Minerals Division |
|
|
|
|
Name : |
Mr. R. Rajagopalan |
|
Designation : |
Senior Vice-President - Refractories and Prodorite |
KEY EXECUTIVES
|
Name : |
Mr. S. Dhanvanth Kumar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category
of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
11643412 |
6.21 |
|
|
67241364 |
35.89 |
|
Sub Total |
78884776 |
42.10 |
|
|
|
|
|
Total Shareholding of Promoters and Promoter Group (A) |
78884776 |
42.10 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
19586994 |
10.45 |
|
|
24782 |
0.01 |
|
|
10670700 |
5.69 |
|
|
25333110 |
13.52 |
|
Sub Total |
55615586 |
29.68 |
|
|
|
|
|
|
6856487 |
3.86 |
|
|
|
|
|
|
|
|
|
|
30091101 |
16.06 |
|
|
14195344 |
7.58 |
|
|
|
|
|
|
1731268 |
0.092 |
|
|
35140 |
0.02 |
|
|
8002 |
-- |
|
|
1688126 |
0.90 |
|
Sub Total |
52874200 |
28.22 |
|
Total Public Shareholding (B) |
108489786 |
57.90 |
|
Total (A) + (B) |
187374562 |
100.00 |
|
(C) Shares held by Custodians
and against which Depositary Receipts have been issued |
-- |
-- |
|
(1)
Promoters and promoters Group |
-- |
-- |
|
(2) Public |
-- |
-- |
|
Sub Total |
-- |
-- |
|
Total (A)+(B)+(C) |
187374562 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millions BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Abrasives Grinders Like Grinding Wheels and
Coated Abrasives, Refractories such as Super Refractories (Fired) /
(Castable), Electrocast Refractories, Electrominerals such as white Aloxite
Grains, Brown Aloxite Grains, Silicon Carbide Grains, Calcined Bauxite, etc. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Abrasives |
|
|
|
|
Bonded |
Tonne |
19640 |
15328 |
|
Coated |
In million sqm |
17.86 |
9.04 |
|
Industrial
Cloth |
Metre |
4500000 |
2451886 |
|
Ceramics |
|
|
|
|
Industrial
Ceramics |
Tonne |
5870 |
3598 |
|
Refractories |
Tonne |
36450 |
26057 |
|
Electrominerals |
|
|
|
|
Grains |
Tonne |
25340 |
22706 |
GENERAL INFORMATION
|
No. of Employees : |
1584 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
# - includes amounts repayable within one year, Rs.346.290 millions
@ includes amount repayable within one year-Nil |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Chennai, |
|
|
|
|
Memberships : |
Confederation of Indian Industry |
|
|
|
|
Direct Holdings : |
|
|
|
|
|
Holding Through Subsidiaries : |
|
|
|
|
|
Associates : |
Laserwords Private Limited [Laserwords] |
|
|
|
|
Joint Ventures : |
|
CAPITAL STRUCTURE
After 05.08.2011
Authorised Capital : Rs.250.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.187.384 Millions
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125,000,000 |
Equity Share |
Rs.2/- Each |
Rs.250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
107,195,232 |
Equity Share * |
Rs.2/- Each |
Rs.214.394 |
|
13,839,000 |
Less: Shares bought
back from the shareholders pursuant to the offer for buy-back of shares made
in 2000-01 |
Rs.2/- Each |
(27.680) |
|
114761 |
Add: 114761 shares allotted during the year under Employee Stock Option Scheme 2007 93,470,993shares (previous year 93,356,232) of Rs.2 each
fully paid |
Rs.2/- Each |
0.230 |
|
|
Total |
|
Rs.186.940 Millions |
NOTE
* Includes
- 893,565 shares of Rs.2 each allotted as fully paid up for consideration other than cash pursuant to contracts
- 2,339,295 shares of Rs.2 each allotted to shareholders of amalgamated companies
- 82,825,120 shares of Rs.2 each allotted as fully paid up
bonus shares by capitalization of share premium and general reserve
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
186.940 |
186.710 |
186.710 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5095.300 |
4101.930 |
3721.850 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5282.240 |
4288.640 |
3908.560 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2184.560 |
2648.060 |
2872.760 |
|
|
2] Unsecured Loans |
88.840 |
176.350 |
593.410 |
|
|
TOTAL BORROWING |
2273.400 |
2824.410 |
3466.170 |
|
|
Long Term Lease
Liability |
14.250 |
13.940 |
13.550 |
|
|
DEFERRED TAX
LIABILITIES |
420.580 |
415.300 |
368.230 |
|
|
|
|
|
|
|
|
TOTAL |
7990.470 |
7542.290 |
7756.510 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3732.120 |
3457.220 |
3500.870 |
|
|
Capital work-in-progress |
153.240 |
330.640 |
208.660 |
|
|
|
|
|
|
|
|
INVESTMENT |
1640.560 |
1718.360 |
1721.710 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1548.040
|
1191.540
|
1165.470 |
|
|
Sundry Debtors |
1772.180
|
1600.220
|
1529.640
|
|
|
Cash & Bank Balances |
78.160
|
61.320
|
343.210
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
508.930
|
429.500
|
393.130
|
|
Total
Current Assets |
3907.310
|
3282.580
|
3431.450 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
934.400
|
720.690
|
587.600 |
|
|
Other Current Liabilities |
405.060
|
315.150
|
305.030
|
|
|
Provisions |
103.300
|
210.670
|
213.550
|
|
Total
Current Liabilities |
1442.760
|
1246.510
|
1106.180 |
|
|
Net Current Assets |
2464.550
|
2036.070
|
2325.270
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7990.470 |
7542.290 |
7756.510 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9125.660 |
7310.100 |
6519.000 |
|
|
|
Income from Work Bills and Services |
71.490 |
71.060 |
59.140 |
|
|
|
Profit on |
0.00 |
0.000 |
291.400 |
|
|
|
Other Income |
337.360 |
238.160 |
223.330 |
|
|
|
TOTAL (A) |
9534.510 |
7619.320 |
7092.870 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
3999.050 |
3141.370 |
2699.710 |
|
|
|
Employee Cost |
946.590 |
807.690 |
764.840 |
|
|
|
Other Costs |
2806.340 |
2279.340 |
2292.000 |
|
|
|
Accretion to Stock |
(219.430) |
(47.890) |
(94.140) |
|
|
|
TOTAL (B) |
7532.550 |
6180.510 |
5662.410 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2001.960 |
1438.810 |
1430.460 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
203.380 |
238.690 |
271.880 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1798.580 |
1200.120 |
1158.580 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
399.880 |
353.420 |
297.780 |
|
|
|
|
|
|
|
|
|
Add/( Less) |
Exceptional
Items |
244.660 |
(5.000) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1643.360 |
841.700 |
860.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
400.780 |
261.570 |
263.630 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1242.580 |
580.130 |
597.170 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1640.260 |
1602.080 |
1309.430 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
750.000 |
300.000 |
59.720 |
|
|
|
Tax on Debenture Redemption Reserve |
31.250 |
31.250 |
31.250 |
|
|
|
Dividend |
260.450 |
210.670 |
213.550 |
|
|
BALANCE CARRIED
TO THE B/S |
1841.170 |
1640.290 |
1602.080 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1941.800 |
1338.120 |
1345.750 |
|
|
|
Royalty |
2.510 |
2.370 |
1.830 |
|
|
|
Dividend and Interest |
30.080 |
30.520 |
20.670 |
|
\ |
|
Management Fees |
29.780 |
22.470 |
17.370 |
|
|
TOTAL EARNINGS |
2004.170 |
1393.480 |
1385.620 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1869.920 |
1362.110 |
1286.850 |
|
|
|
Components and Spare Parts |
19.220 |
21.840 |
13.390 |
|
|
|
Capital Goods |
171.980 |
130.980 |
153.120 |
|
|
TOTAL IMPORTS |
2061.120 |
1514.930 |
1453.360 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
13.29 |
6.21 |
6.40 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
2632.500 |
2838.000 |
2857.700 |
|
Total Expenditure |
2059.900 |
2234.700 |
2323.200 |
|
PBIDT (Excl
OI) |
572.600 |
603.300 |
534.500 |
|
Other Income |
58.800 |
26.800 |
1.100 |
|
Operating
Profit |
631.400 |
630.100 |
535.600 |
|
Interest |
46.800 |
45.100 |
41.600 |
|
Exceptional
Items |
0.000 |
0.000 |
251.500 |
|
PBDT |
584.600 |
585.000 |
745.500 |
|
Depreciation |
107.100 |
110.500 |
109.500 |
|
Profit
Before Tax |
477.500 |
474.500 |
636.000 |
|
Tax |
127.800 |
128.000 |
129.600 |
|
Reported PAT |
34.9700 |
346.500 |
506.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
34.9700 |
346.500 |
506.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
13.03 |
7.61 |
8.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.01 |
11.51 |
13.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.51 |
12.49 |
12.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31 |
0.20 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.70 |
0.95 |
1.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.71 |
2.63 |
3.10 |
LOCAL AGENCY FURTHER INFORMATION
ECONOMIC OVERVIEW
The
year 2010 witnessed the reemergence of the world economy from the throes of
recession caused by the global financial crisis of 2008-09. World economy
recorded a growth of 5% percent during the first half of 2010 and deceleratedto
about 3% percent during the second half. As fears of a global depression
receded in 2009, businesses at first slowed their rate of de-stocking, and then, as confidence improved, began
to rebuild depleted inventories. This
fostered a sharp rebound in industrial
production and trade,
which lasted through
the first half of
2010. As this phase
progressed, inventory rebuilding and,
as a consequence, industrial production and trade moved into
lower gear in the second half of last year. In the meantime, however, reduced
excess capacity, accommodative policies and further improvements in confidence
and financial conditions encouraged
investment and sharply reduced the rate
of unemployment. Consumption also
regained strength. Consequently, the recovery become more self-sustaining, risks of a double-dip recession in advanced
economies receded, and global activity
has started accelerating again.
While growth was visible across geographies, the
pace of economic growth was
geographically uneven. The
recovery broadly moved at two speeds
in emerging and developing economies, with appreciable differences
amongst each set of countries. In major advanced economies,
economic growth was modest, especially considering the depth
of the recession in earlier years, reaching
just 3 percent.
In contrast, many
emerging and developing economies witnessed robust growth,
reaching more than 7 percent in 2010.
In India,
the economy has emerged with remarkable
rapidity from the slowdown
caused by the global financial crisis. Growth in 2010-11 as per
the Advance Estimates
released in January 2011 is estimated
at 8.6%. Rebound in agriculture
and continued momentum in manufacturing, despite the deceleration in services,
helped to drive the economy. The slight
slowdown in industrial production in the later part of the year
was more
in the nature of a road bump than any indication of a long
term problem. On the demand
side, a rise in savings and investment and
pick-up in private consumption have resulted in strong
growth of the GDP Inflation however has remained a concern during a large part of the year,
mainly driven by food prices.
COMPANY PERFORMANCE
The growth in global revenues was particularly driven by the strong performances of the Indian and Russian operations and also moderate improvement recorded in the operations in South Africa and North America. The Australian operations which experienced strong growth during the past few years appeared to lose some of its momentum. Share of international operations in the overall revenue pie increased from 45 per cent to 47 per cent during the year depicting an increasingly international character which the Company`s businesses are assuming. On a standalone basis, the growth was even more pronounced, aided by the strong acceleration in the Indian economy. Growth in revenues was driven not only by robust performance in the domestic business but also by sales to international markets. While home sales grew by about 20 per cent, export growth was explosive with an increase of 43 per cent. The top line summary on a standalone basis for 2010-11 was as follows registering an impressive growth of 25 per cent:
PERFORMANCE OF BUSINESS SEGMENT
(Including information required to be given in the Management Discussion and Analysis Report) The market developments, current year performance and outlook for various business segments are elaborated below. ABRASIVES Business Profile This business comprises of the following major product groups viz. bonded abrasives, coated abrasives (including non-wovens), super abrasives (through a joint venture), and power tools. The operations are carried out through eleven manufacturing facilities located in India, Russia and China. The subsidiaries/ related entities located in North America, Middle East and Thailand support this business in getting an extended customer reach. On a consolidated basis, the Company continues to maintain a leadership position in the Indian market. In the Russian market, the Company is the market leader in bonded abrasives. Customers located in over 50 countries are also serviced through the network of subsidiaries and related entities. Abrasives are used in a wide spectrum of industries the key among them being automobile, engineering, fabrication, wood working, home maintenance, construction and infrastructure. Industry Overview The global industry continues to be lead by few players who have a complete portfolio of abrasive products. There are also a large number of players specializing in specific categories of abrasives. During the year, there was some consolidation in the global industry by acquisition of a strong European bonded and super abrasives player by another global abrasives player. The Indian abrasives industry continues to be catered largely by two leading players. There are a few smaller players specializing in select products. The market is also catered to by imports particularly from China. Many global abrasive manufacturers have entered the Indian market either through sales offices or manufacturing facilities. There are three major players in the domestic Russian industry. Imports service a sizeable portion of the market. There was no major change in the industry structure in this market. Market scenario CUMI`s Abrasives business started the year on a very robust note clocking a growth of 19 percent in the first quarter. With each oncoming quarter the sales tempo was enhanced, riding the wave of resurgence in the manufacturing sector in the Indian and Russian economies. While sales in the Indian market increased by 21 per cent, in the Russian market growth was more strident touching 79 per cent. All major product categories witnessed healthy growth rates. Sale of custom-built abrasives, which is a key indicator of the health of the manufacturing industry, registered a steep increase of 37 per cent. The Company was able to leverage the strong ties established with various direct customers through several decades of partnership by delivering quality products and extending its strong application engineering skills and capture the benefits of the buoyancy in demand. Sales into construction, fabrication, wood working and home maintenance segments which are largely addressed through the trade channel also improved through the product management approach. Efforts were taken to improve brand visibility through road shows, end user meets and participation in regional level exhibitions. To harness the business opportunities arising from infrastructure development in India, special focus was given on project sales, particularly in thin wheels. During the year, the Company continued to pursue its strategy of addressing the complete market spectrum with an appropriate combination of brand and product. The product portfolio was continuously upgraded to suit the evolving demands and needs of customers. New product sales during the year was Rs. 605 million. The product basket was also critically reviewed periodically to promote a balance between healthy margins and product volumes. As a result, some low margin products were taken off the line. Traded products were used to address gaps in product portfolio and also where they offered a comparative advantage in terms of manufacturing cost. Generic product development especially in the areas of speciality resinoid products has given the lead over competition in terms of performance price parity. Growth in super abrasives and thin wheels was encouraging with the supply and development of a slew of new products. Product differentiation continued to remain the cornerstone of the Company`s competitive strategy. Sales of super abrasive and other products by the joint venture viz. Wendt India Limited grew by about 47 per cent, with the Company focusing on supply of precision components along with the traditional super abrasive tooling business, for select customers. The effective change in the joint venture partner is being challenged by the Company as it is in breach of contractual arrangements and legal requirements. In the power tools business the Company reinforced its position as a long term player. Sales increased by 55 per cent to Rs.110 million with several products getting continued patronage from end users. Relationships with several channel partners, who play a critical role in promoting these products were strengthened. Market presence was intensified in several states across India. The product portfolio was strengthened, both by addition of products hitherto not in the product basket and also by quality enhancement and value engineering of existing products. New sources for products were identified to offer value benefits and also to service the pipeline of new products planned for the next year. Manufacturing All abrasives plants functioned immaculately to cater to the volume requirements of the market. Given the strong off take from end users, the Indian facilities operated at near full capacity in industrial products. Construction of a new line for manufacture of non-woven abrasives in the Tiruvottiyur, India plant was completed towards the end of the year. The facility was set up with know how from international sources. In the last two years, the Company has been offering these products in a small way by sourcing them from third party manufacturers. By acquiring the capability to manufacture this product in house the Company will be able to offer the complete spectrum of abrasive products. In the bonded abrasives plant in Hosur, India manufacturing process for new varieties of castable wheels were developed and stabilized. Improved fast firing cycles were introduced in kilns for vitrified products which will yield benefits in terms of lower fuel consumption. The abrasives plant at Roorkee, India graduated into a reliable source for bonded and coated abrasives addressing the mass market segment. Production levels were stepped up substantially over last year. The individual disc coating facility has been fully stabilized for certain sizes. In Volzhsky, Russia re-layout of the manufacturing line was undertaken, in certain parts of the facility, to accommodate additional equipment designed to address the market requirements for specific categories of products. Automatic presses were put into operation for manufacture of small size vitrified wheels which has helped to widen the product portfolio. Further work has also been undertaken to increase capacity for manufacture of resinoid products. The business witnessed steep cost increase in key raw materials like abrasive grains, glass fabric disc etc. To counter the negative impact of this, targets for cost savings were undertaken and achieved. In spite of a double digit growth in cost of inputs, the business improved operating margins from 9 per cent to 14 per cent. This was made possible by improvement in internal efficiencies (like power and fuel consumption rates, raw material input-output norms, identification of alternate sources for inputs, development of alternate raw materials and recycling of materials) and externally on the market side by rationalizing prices through a segmented approach and also through general price increases. Since the overall mood was positive, the business was able to give effect to price increases smoothly. 2010-11 was a good year in terms of working capital management. Collections were uniformly good and by virtue of tight sales administration, receivables rates were improved. However inventory of certain raw materials was consciously kept high to tide over supply constraints in the market and also hedge against volatilities in prices.
CERAMICS Business Profile The ceramics business operates in three niche product groups viz. industrial ceramics, super refractories and anti corrosives. Industrial ceramics business offers alumina and zirconia products of technical ceramic grades addressing wear and corrosion protection, electrical insulation, thermal protection and ballistic protection requirements. The super refractories product group supplies fired and monolithic super refractories, refractory fibre and also refractory design and installation services addressing the insulation / thermal resistance requirements of industries. The refractoryfibre and refractory design and installation businesses are addressed through joint ventures. The anti corrosives product group offers acid resistant cements, polymer concrete cells and various other products addressing the anticorrosion requirements of end users. The key user industries for ceramics business are power generation and transmission, coal washeries, grain handling, sanitary tiles and ware, ballistic protection, cement, non ferrous metals, iron and steel industries, carbon black, cement, non-ferrous metals, iron and steel, insulators, furnace building, glass, petro-chemical and construction industries. The operations are carried out through eight manufacturing facilities located in India and Russia. The subsidiaries in Australia, Canada, Middle East, China and South Africa also support this business in getting an extended customer reach. CUMI Australia also provides installation cum service facilities. The Company is mainly a regional player with leadership positions in India and Australia and also a key position in Russia. The Company also exports to over 30 countries. Industry structure There has been no material change in the industry structure in India, which is catered to by 4-5 major players. CUMI is a market leader in certain market segments. In Australia, CUMI Australia is one of the leading players in the lined equipment and industrial ceramic tiles industry. There are about a dozen players in the industry, most of whom market products imported from China and USA. There was no major change in the industry structure during the year. Market scenario The Ceramics business grew by 27 per cent on a consolidated basis during the year. In industrial ceramics, the Company continued to pursue its business model of designing and manufacturing ceramic tiles in India and marketing them through the subsidiaries in Australia, Canada, South Africa and lately CUMI China in their respective markets and with other markets being handled directly by the Indian operations. Driven by the strong recovery in the Indian market and also the revival in many parts of the international markets, the business registered a strong growth. The growth was to some extent dampened by the decline in turnover in the Australian markets during the third and fourth quarters of the year owing to foods in Australia and the resultant slowdown in mining and bulk material handling segments. Further supplies from Chinese suppliers who competed on price continued to be intense. The business increased its share in the lined equipment business. Sales of composite liners in rubber, ceramic and steel was promising. Sales effort was strengthened by upgrading the installation facility and also by increasing the sales force. During the year, focused approach in servicing the Original Equipment Manufacturers (OEMs) in projects for coal and power and offering solutions to bulk material handling operators resulted in a 38 per cent growth in sales in India. Sales of wear protection products in international markets grew by 22 per cent owing to the improved performance of the North American and European markets. CUMI`s overseas subsidiaries played a key role in stepping up sales in South Africa and China. Initial supplies to new markets like Russia and Middle East have prepared the ground for future growth. Growth in engineered ceramics business was largely driven by exports which more than doubled on account of supply of structural ceramic parts for certain niche market segments where the Company has gained a strong foothold. Metallized ceramics business grew by 30 per cent and 50 per cent in domestic and exports markets respectively. In super refractories, sales of fired and monolithic products grew by over 31 per cent during the year in the Indian operations. Growth was driven primarily by the strong offtake from user industries. Sales growth was in excesss of 30 per cent both in Indian and export markets. In respect of the Russian operations, sales grew by 14 per cent, with the growth in international sales being off set by a marginal decline in sales to the Russian markets. The refractory fibre business registered a growth of over 27 per cent in revenues. Refractory design and installation services business registered a steep growth of 64 per cent driven by strong offtake from project orders in the petrochemical and fertilizer industries. In the Indian markets the uptrend in sales was largely driven by higher off take from iron and steel, glass, petro-chemical industries, power, chemical processing, steel and furnace building industries. The initiative to address turnkey orders paid rich dividends and helped to enhance revenues from project orders from these customer segments. Services of channel partners were engaged to supplement the sales effort. The company has enhanced its reach by widening its customer base in the domestic segment. Competition from imports affected few product categories. During the year, the Company was empanelled as an approved supplier by a leading international product licensor of refractories for petrochemical industry. Market development initiatives were in the form of participation in international fairs. Sales of anti-corrosive products were at last year levels. Sales of polymer concrete cells, particularly in the export market, was encouraging and helped to off set the lower order inflow on account of project sales Manufacturing The operating margins of the Ceramics business was maintained at last year`s levels despite intense competition particularly in large fixed price project orders, steep increase in prices of fuel and some increase in price of silicon carbide. Raw material costs for the high alumina ceramics however remained generally stable. Raw material consumption efficiencies were maintained at standard norms. With sales volumes and revenues registering an increase, operating profits were higher as a result of control on fixed costs. The wear resistant liner plant at Hosur, India operated at peak capacity and helped service the demand from domestic and overseas customers. Robust processes helped the business to deliver consistent products. With flexible manufacturing processes the business was able to deliver the required product mix. In order to meet increased demand for small tiles a state of the art high speed press was commissioned during the year. With this in place, the plant bolstered its capability to meet customer requirements for wear resistant tiles of varied geometries. In order to further enhance manufacturing capabilities, automation of additional processes were taken up. This coupled with six sigma quality initiatives helped the plant to deliver consistent and reliable products to customers. The plant also developed the capability to manufacture certain hi-tech products addressing climate control. Addition of capacity balancing equipments and robust processes enabled the metallized ceramics plant in Hosur, India to deliver consistent and reliable metallized cylinders to suit the stringent requirements of customers as also meet the escalating demand for volumes. At the engineered ceramics plant at Aurangabad, India, production processes were modified and stabilized and additional machines were put into operation for injection moulding and stabilized. The fired refractories plants in Ranipet, India and the newly set up plant in Serkadu, India improved capacity utilisation. The Jabalpur, India plant, continued to play a pivotal role in augmenting sales of monolithic refractories. During the year additional investments in equipment were made in this plant to augment capacity to manufacture high alumina refractories cement production. The anti-corrosives manufacturing facility at Serkadu, India which commenced operations last year functioned well. Work on establishing a line for manufacture of FRP composites has commenced and will be completed in 2011-12. Cost pressures in the refractory fibre business increased stress on profitability which was to a certain extent addressed through cost savings initiatives and price action at the customer end. In Russia, the nitride bonded silicon carbide refractories line which was set up with overseas technology functioned well. The products were tested at labs in Switzerland and was certified as comparable with in industry. First set of orders from a large aluminum producer was obtained.
ELECTRO MINERALS Business Profile The major product groups of this business segment are fused alumina (comprising brown and white alumina), silicon carbide and fused zirconia. The operations are carried out through 6 manufacturing facilities located in India, Russia and South Africa. Products are sold to customers located in over 40 countries. Key user industries for this business are abrasives, refractories and steel. The business also has captive mines and power plant. Industry Overview The market structure in the global electrominerals business remained largely unchanged with the Company continuing to be the second largest player in the silicon carbide segment of this business. In fused alumina, the company is mainly a national player focused on India. The Indian market continues to be catered by two players. Apart from the domestic players, imported products have a visible share in the market. In fused zirconia, the Company is the third largest manufacturer globally. The global industry is largely catered to by top five players. There was no major change in the industry structure during the year. Market scenario The domestic and international markets for electro minerals, was very buoyant both on account of supply constraints and also demand growth. The business recorded a growth of 25 per cent in revenues with the Indian operations achieving a growth of 34 per cent and the Russian operations by 24 per cent over last year. The South African operations grew by 21 per cent. The increase in sales was both on account of volume increase and also escalation in prices. The silicon carbide business in Russia benefited from the upturn in the local economy and also revival in the European markets. Exports increased by 22 per cent and domestic sales grew by 13 per cent. Sales volumes increased by 13 per cent. Prices for silicon carbide, which was firm in the early part of the year, stabilized later. Steps were taken to change the product mix to increase focus on value added products. In India, slow down in supplies from China helped the business in terms of improved price realization across the entire product range. Buoyancy in the manufacturing sector in India drove up demand for abrasives which in turn resulted in brown fused alumina sales (including captive supplies) increasing by 11 per cent. The upturn in the abrasives industry and the continued escalating requirements of the photovoltaic industry helped silicon carbide sales to achieve a steep increase of over 50 per cent. White fused alumina sales increased by about 25 per cent helped by the strong off take from refractory manufacturers. The Indian operations continued its focus on specialty products addressing select industries and developing and adapting products to meet the emerging needs of this industry. This helped the Indian operations double its international revenues and continue the stellar performance of the past. In South Africa, sales of fused zirconia and fumed silica witnessed a 11 per cent growth in volumes aided by the recovery in key user industries viz. refractories and steel. The appreciation of the South African currency diminished competitiveness. In the second half of the year the business witnessed a steep increase in input costs. To protect profitability, prices were increased which met with some resistance from key customers. As a result the growth in revenues was lower than expected. Efforts to widen the customer base have been initiated and the benefits of this would be seen in 2011-12.Initiatives have been undertaken to enter new markets. Manufacturing To meet the increased demand, volumes were increased at all locations by increasing throughputs from existing facilities. Silicon carbide business was faced with steep increase in price of raw petroleum coke. The cost push could not be fully passed on to customers and as a result the business witnessed a drop in margins. In the fused zirconia business, though off take increased, appreciation of the South African currency increased the stress on earnings and profitability. Steep escalation in sand prices hurt cost structure. Preliminary steps for capacity expansion has been taken. Investments have been made during the year in the silicon carbide fusion facilities in Volzhsky, Russia to enhance efficiencies and upgrade fusion technology. The first phase of the silicon carbide microgrit facility at Cochin Special Economic Zone, India commenced commercial production in April 2010. Subsequent phases are being implemented in a phased manner.
FIXED ASSETS
- Land
- Building
- Plant and machinery
- Vehicles
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.50.12 |
|
|
1 |
Rs.79.37 |
|
Euro |
1 |
Rs.66.00 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.