1. Summary Information
|
|
|
Country |
|
|
Company Name |
TULSI EXTRUSIONS LIMITED |
Principal Name 1 |
MR. OMPRAKASH S. JHAVAR |
|
Status |
Satisfactory |
Principal Name 2 |
MR. SANJAYR.TAPARIA |
|
|
|
Registration # |
11-081186 |
|
Street Address |
Plot No. N-99, MIDC Area, Jalgaon – 425003, |
||
|
Established Date |
16.09.1994 |
SIC Code |
-- |
|
Telephone# |
91-257-2272732 / 22122776 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-257-2210052 |
Business Style 2 |
|
|
Homepage |
Product Name 1 |
Rigid PVC pipes |
|
|
# of employees |
Not Available |
Product Name 2 |
HDPE pipes |
|
Paid up capital |
Rs.274,946,0000 /- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and
Promoter Group-25.51% Public
shareholding-74.12% Custodians-0.37% |
Banking |
Punjab National Bank |
|
Public Limited Corp. |
YES |
Business Period |
18 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Ba [43] |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Related
Party |
-- |
Gopal Extrusions Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1024,419,000 |
Current Liabilities |
411,444,000 |
|
Inventories |
693,786,000 |
Long-term Liabilities |
851,015,000 |
|
Fixed Assets |
418,880,000 |
Other Liabilities |
45,696,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
1,308,155,000 |
|
Invest& other Assets |
592,628,000 |
Retained Earnings |
1146,612,000 |
|
|
|
Net Worth |
1421,558,000 |
|
Total Assets |
2,729,713,000 |
Total Liab. & Equity |
2729,713,000 |
|
Total Assets (Previous Year) |
1,653,735,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
1578,688,000 |
Net Profit |
24,563,000 |
|
Sales(Previous yr) |
1003,683,000 |
Net Profit(Prev.yr) |
62,152,000 |
MIRA
INFORM REPORT
|
Report Date : |
24.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
TULSI EXTRUSIONS LIMITED |
|
|
|
|
Registered
Office : |
Plot No. N-99, MIDC Area, Jalgaon – 425003, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
16.09.1994 |
|
|
|
|
Com. Reg. No.: |
11-081186 |
|
|
|
|
Capital
Investment/ Paid-up Capital: |
Rs.274.946 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29120MH1994PLC081182 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NSKT01296B |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of
Rigid PVC pipes and fittings , HDPE pipes, etc. |
|
|
|
|
No. of
Employees: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD - 5686000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. There appears a dip in the profitability of the
company. 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 – 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 / Corporate Office : |
Plot No. N-99, MIDC Area, Jalgaon – 425003, |
|
Tel. No.: |
91-257-2272732 / 22122776 |
|
Fax No.: |
91-257-2210052 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Laisoning Office |
709, 7th Floor Janki Centre, 29, Shah Industrial Estate, Off. |
|
Tel. No.: |
91-22-26742090,26731222 |
|
Fax No.: |
91-22-26742073 |
|
|
|
|
Unit -I |
Plot No N-99/100/109,
M.I.D.C. Area, Jalgaon- 425 003 |
|
Tel. No.: |
91-257-2272732 / 2212276 |
|
Fax No.: |
91-257-2210052 |
|
|
|
|
Unit -II |
Plot No H-16, M.I.D.C. Area, Jalgaon- 425 003, |
|
Tel. No.: |
91-257-2271265 / 2270572 |
|
Fax No.: |
91-257-2210052 |
|
|
|
|
Unit -III |
Plot No G-51/52, M.I.D.C. Area, Jalgaon- 425 003 |
|
Tel. No.: |
91-257-2210792 / 2211303 |
|
Fax No.: |
91-257-2210052 |
|
|
|
|
Branches : |
Located at
|
DIRECTORS
|
Name : |
Mr. Omprakash S. Jhavar |
|
Designation : |
Chairman-Non Executive |
|
|
|
|
Name : |
Mr. Pradip J. Mundhra |
|
Designation : |
Managing Director |
|
Qualification : |
B.com |
|
Experience : |
22 Years |
|
|
|
|
Name : |
Mr. Sanjayr.taparia |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Gopaldas J. Maheshwari |
|
Designation : |
Director-Non Executive |
|
Name : |
Mr. Rajesh B. Jhunjhunwala |
|
Designation : |
Director-Non Executive |
|
Name : |
Mr. Jaiprakash B. Kabra |
|
Designation : |
Director-Non Executive |
KEY EXECUTIVES
|
Name : |
Mr. Omprakash S. Jhavar |
|
Designation : |
Chairman-Non Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
4516149 |
16.43 |
|
Bodies Corporate |
2498100 |
9.09 |
|
Sub Total (A)
(1) |
7014249 |
25.51 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Financial Institutions / Banks |
|
|
|
Foreign Institutional Investors |
|
|
|
Sub Total (B)
(1) |
|
|
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
3210079 |
11.68 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
12532031 |
45.58 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
3700051 |
13.46 |
|
|
|
|
|
Any other
(Specify) |
936087 |
3.40 |
|
Non Residents |
|
|
|
Clearing Members |
739498 |
2.69 |
|
Non Resident Indians |
196589 |
0.72 |
|
|
|
|
|
Sub Total |
20378506 |
74.12 |
|
|
|
|
|
Total Public
Share Holding |
20376248 |
74.12 |
|
|
|
|
|
Total (A) +(B) |
27367765 |
99.63 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
|
|
|
Public |
102113 |
0.37 |
|
|
|
|
|
Total (A) + (B) +(C) |
27494610 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Rigid PVC pipes and fittings , HDPE pipes, etc. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS As on 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
PVC Pipes |
MT |
NA |
22464 |
13917 |
|
Moulding |
MT |
NA |
1117 |
706 |
|
LLDPE/ HDPE |
MT |
NA |
6512 |
3374 |
Note: Installed capacity is as certified by the management but not verified by
the auditors being technical matter.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
·
Punjab National Bank, Jalgaon ·
AXIS Bank, Jalgaon ·
State Bank of ·
HDFC Bank, Mumbai |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Statutory Auditors : |
K.
K. Kabra and Company Chartered Accountant |
|
Address : |
Jalgaon, |
|
|
|
|
Internal Auditors : |
Badale
Mahale Lanke and Company Chartered
Accountants |
|
Address : |
Jalgaon, |
|
|
|
|
Related Party : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Share |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
27494610 |
Equity Share |
Rs.10/- each |
Rs.274.946
Millions |
|
|
|
|
|
Notes:
1. Of the above, 12500000 Equity Shares (FY 2010-11) of Rs. 10/- each are issued pursuant to Global Depository Receipts issued at a premium of Rs. 44/- per equity share.
2.
Of the above, 2499510 Equity Shares (FY 2010-11)
of Rs. 10/- each are issued as bonus shares out of Profit and Loss
Appropriation Account
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 |
274.946 |
124.951 |
124.951 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1146.612 |
675.576 |
620.009 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1421.558 |
800.527 |
744.960 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
851.015 |
671.271 |
306.582 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
851.015 |
671.271 |
306.582 |
|
|
DEFERRED TAX LIABILITIES |
37.298 |
23.508 |
8.753 |
|
|
|
|
|
|
|
|
TOTAL |
2309.871 |
1495.306 |
1060.295 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
418.880 |
336.837 |
126.244 |
|
|
Capital work-in-progress |
280.864 |
229.476 |
219.749 |
|
|
|
|
|
|
|
|
INVESTMENT |
297.248 |
19.628 |
14.783 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
693.786
|
402.998
|
188.326 |
|
|
Sundry Debtors |
858.828
|
491.680
|
397.422 |
|
|
Cash & Bank Balances |
46.174
|
40.751
|
85.794 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
119.417
|
117.814
|
66.207 |
|
Total
Current Assets |
1718.205
|
1053.243 |
737.749 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
336.549
|
116.683
|
84.146 |
|
|
Other Current Liabilities |
74.895
|
23.654
|
11.175 |
|
|
Provisions |
8.398
|
18.092
|
7.556 |
|
Total
Current Liabilities |
419.842
|
158.429 |
102.877 |
|
|
Net Current Assets |
1298.363
|
894.814 |
634.872 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
14.516 |
14.551 |
64.647 |
|
|
|
|
|
|
|
|
TOTAL |
2309.871 |
1495.306 |
1060.295 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1578.688 |
1003.683 |
802.624 |
|
|
|
Other Income |
13.211 |
7.434 |
6.141 |
|
|
|
TOTAL (A) |
1591.899 |
1011.117 |
808.765 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Material Consumed |
1392.814 |
|
|
|
|
|
Manufacturing Expenses |
120.666 |
76.700 |
|
|
|
|
Employee Expenses |
70.181 |
34.773 |
|
|
|
|
Administrative and Selling Expenses |
152.187 |
88.764 |
|
|
|
|
|
1735.848 |
1026.331 |
|
|
|
|
Increase/ decrease in stock |
(328.077) |
(184.617) |
|
|
|
|
TOTAL (B) |
1407.771 |
841.714 |
739.611 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
184.128 |
169.403 |
69.154 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
107.437 |
59.692 |
39.251 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
79.691 |
109.711 |
29.903 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
30.238 |
16.064 |
6.772 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
46.453 |
93.647 |
23.131 |
|
|
|
|
|
|
|
|
|
|
Loss By Fire |
0.000 |
4.741 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
21.890 |
26.754 |
7.382 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
24.563 |
62.152 |
15.749 |
|
|
|
|
|
|
|
|
|
Less |
Short [Excess] provision of tax in earlier year |
4.184 |
(0.724) |
3.077 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
106.821 |
51.254 |
58.581 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
20.000 |
|
|
|
Dividend |
0.000 |
6.247 |
0.000 |
|
|
|
Tax on Dividend |
0.000 |
1.062 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
127.200 |
106.821 |
51.253 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2.313 |
Nil |
Nil |
|
|
|
Other Earnings |
1.242 |
Nil |
Nil |
|
|
TOTAL EARNINGS |
3.555 |
Nil |
Nil |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
Nil |
72.341 |
Nil |
|
|
|
Capital Goods |
11.848 |
Nil |
Nil |
|
|
TOTAL IMPORTS |
11.848 |
72.341 |
NIl |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.91 |
5.41 |
1.01 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
531.590 |
248.550 |
452.160 |
|
Total Expenditure |
455.600 |
205.470 |
400.710 |
|
PBIDT (Excl
OI) |
75.990 |
43.080 |
51.450 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating
Profit |
75.990 |
43.080 |
51.450 |
|
Interest |
34.400 |
29.180 |
41.570 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
41.590 |
13.900 |
9.880 |
|
Depreciation |
8.380 |
11.400 |
6.360 |
|
Profit Before
Tax |
33.210 |
2.500 |
3.530 |
|
Tax |
7.390 |
2.070 |
3.380 |
|
Reported PAT |
25.810 |
0.430 |
0.150 |
|
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 |
25.810 |
0.430 |
0.150 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.56
|
6.14
|
1.95 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.94
|
9.33
|
2.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.17
|
6.74
|
2.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.12
|
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.89
|
1.04
|
0.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.09
|
6.65
|
7.17 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Construction
of the firm |
Yes |
|
Premises
details |
Yes |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
No |
|
No.
of Employees |
No |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
- |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
No |
PERFORMANCE AND
BUSINESS OPERATIONS
Macro - economic environment witnessed a rather gradual uplift over the better part of the year, however, the Company continued to be challenged by the cautious dealers mindset resulting from the unprecedented economic recession of the year before. Improvement in sales mix has been seen in new areas, albeit at higher cost. For the fiscal year 2010-11, the sales of the Company grew by 57 % to Rs.1578.688 Millions as compared with that of previous year at Rs.1003.683 Millions
Due to continuous increase in the demand for the Company's products, the
Company has increased its capacity from 24,833 MT. to 30,093 M.T. showing an
increase of 21%. Further they are happy to inform you that during the year the Company was able to utilize its capacity
to the tune of 17,997 MT which is approx. 60% of the capacity as at the end of
the last year. The lesser capacity utilization is due to size change, mould
change, sales order of higher dimensions and frequent power cuts.
This year saw significant material cost inflation in the second half, driven primarily by spiraling crude oil prices. Prices of Resin and Granuels, which constitute 95% of their Material Cost Base, were adversely impacted. However, the Company continues to strive for operating cost optimization through a series of initiatives in product mix rationalization, vendor development and factory technological upgradation.
Resultantly, Profit before tax during 2010-11 was Rs.464.54
lacs as compared to Rs.936.47 lacs during 2009-10, which shows a decrease of
50.39%. The decrease was mainly due to higher interest rates, inflation,
additional discounts to dealers for price competition and firm commodity
prices. Moreover, the cost of transportation for new developed areas has also increased
due to increase in the fuel prices
SUBSIDIARY COMPANY
With a view to expand its business in Gulf Countries, the
Company has promoted a wholly owned subsidiary, Tulsi International (FZE) which
is incorporated in Hamriyah Free Zone at
Management Discussion
and Analysis (MDA)
As the world struggles with growth deficit due to higher
leverage and poor demographic profile of the developed world, Emerging economies
are reporting much stronger structural as well as cyclical rebound in growth.
India posted GDP growth of 8%+ CAGR in the 2003-2010 period and is poised for a much stronger structural progress as it boasts of an under-leveraged consumer and a productive demographic profile that adds 1 crore people to the earning population ever year. The one-billion plus population of India with average age of 25 relative to China's 30 years is at present massively under-penetrated for the demand it generates and thus makes a case for a massive potential demand for the second fastest growing economy.
The Economic Advisory Council's July 2010 Economic Outlook
had taken the view that Indian economy would grow by 8.5% in 2010-11. In the
event, growth in the first half of 2010-11 has been higher at 8.9%. The Council
had expected the rate of growth to moderate during second half of the year, but
the CSO Advance Estimates have placed full year growth at 8.6%. The Gross
Domestic product (GDP) in
GDP arising from the industrial sector showed very strong growth of 11.3% in the first quarter of 2010-11. In the second quarter of 2010-11, growth in GDP arising from industry declined to 8.9%. The principal factor that governed this change was the sharp drop in manufacturing GDP growth from 13% in the first quarter to 9.8% in the second.
In its Economic Outlook for 2011-12, Government of India has
pegged the
Industry Structure and Development:
The Company is one of the growing agriculture solution
providers and emerging Agri-business companies and in
The Company's bouquet of products includes Rigid PVC Pipes and Fittings, SWR Pipes and Fittings, PVC Casing and Screen Pipes, HDPE Pipes and fittings, HDPE Sprinkler System, LLDPE Pipes and fittings, ASTM Plumbing Pipes and fittings, Elastomeric Sealing Pipes, Crates, Column Pipes and Moulded Fittings.
The Pipe products manufactured by the Company are to suit the requirements of application in farm irrigation, landscape, plumbing, cable ducting, potable water supply schemes, sewerage and drainage systems, profile for building industry, construction industry, telecom industry, gas distribution, bore well for underground water suction etc. ranging from 20mm diameter to 315mm diameters in all pressure ratings. The Company operates in only one Industry Segment i.e. Plastic Pipe Industry.
The Company's primary focus is to play a catalyst in providing value added long lasting solutions through its product and services to problems of water security, food security and energy security. In pursuance of company's goal, 'Samridh kisan desh ki shaan' and `Let's nurture the green era', the company's management is planning to train and educate the farmers and locals through its well established network of dealers about importance of water resources and its best management along
with optimum utilization.
Outlook
World plastic pipe demand is forecast to increase 7.3% annually to 20.3 million tons in 2015. More than two-thirds of all plastic pipe demand generated during the 2010-2015 period will be attributable to the Asia-Pacific region.
That type of growth would produce annual polymer consumption
of 12.5 billion kgs.
Reliance Industries Ltd.)
Drinking Water
The demand for Pipes in agricultural sector will increase in leaps and bounds because of various Government policies and reforms. Hence, there is an ample opportunity for companies in agricultural product section. Similarly, the government policies of continuing tax benefits on housing loan and increasing number of residential complex, shopping malls, construction of hospitals and growth in tourism will give a boost to companies related to construction products
It is a requirement to provide potable water to several areas of the country, as also improve sanitation and develop housing construction at low cost. Plastics play a key role in all these segments, which can improve the quality of life of a majority of the country's population. The Company is a prominent supplier of piping system to provide solutions in all these segments.
In
The company is thriving to increase its efficiency in
operation, expansion of product range and organic growth in marketing thereby
building sustainable competitiveness. The next geographical growth target is
Gujarat,
plan is made and being implemented with a view of cost reduction by adopting higher output/low power consumption technologies. These advanced technologies ensure best quality production with lesser dependency on manpower. The company's policy of bringing all manufacturing facilities under one roof for reduction in variable costs is being implemented in full swing.
Company's Strength and Growth Drivers
Quality of the Company
The Company received an ISO 9001:2008 certificate in respect of its quality management systems. The present certificate is valid till 16 March, 2013. The Company maintains quality at all stages of manufacturing process starting from raw material procurement to manufacture of the finished product. All of the Company's finished products are tested in its well equipped quality control laboratory to ensure that they adhere to the laid down quality standards. The Company also facilitates third party inspection upon the request of its customers.
Marketing and
Distribution Network
Sales are made through direct marketing through the
Company's network of dealers and distributors and by the Company's sales
personnel. Presently, the Company has more than 1100 dealers covering seven
states viz. Maharashtra, West Bengal, Madhya Pradesh, Rajasthan, Chattisgarh,
Gujarat, Tamilnadu,
The Company has also appointed various dealers to facilitate the distribution of its products. The Company has a team of experienced technicians, hydraulic engineers and marketing personnel to assist the customers in selecting the right pipes and providing after sales service.
Diversified Product
Mix
The Company has a product mix to cater to the increasing requirements of its customers. Its product offerings include PVC Pipes, PVC fabricated fittings, PVC casing and screen pipes, ASTM plumbing pipes and fittings, LLDPE pipes and fittings, HDPE pipes and fittings, SWR Pipes and Fittings, Moulded Fittings, Crates, Column Pipes and elastomeric sealing pipes. The products are primarily used in irrigation sector, industrial sector, infrastructure and housing sector. The Company believes that this range of products would allow its existing customers to source most of their product requirements from a single vendor and also enable it to expand its business from existing customers, as well as address a larger base of potential new customers
Flexible and Scalable
Production Facilities
The Management believes that the flexibility and scalability of the Company's existing production facilities will help it meet increased demand for its products. The scalability of the Company's existing facilities enables it to increase its production capacity through the installation of new equipment and production lines. For example, the Company can increase the capacity to produce its PVC pipes and fittings by upgrading critical equipment such as screws/barrels and gear boxes, or if greater capacity enhancement is required, by adding new extruders. The Company's flexible manufacturing facilities enable it to produce a wide range of products with different specifications, such as PVC / PE pipes with different diameters and working pressure ranges and processed and dehydrated fruits and vegetables using different organic feedstock. This flexibility assists the Company in meeting the specific demands of its customers and reducing the impact of seasonal changes in production volumes for specific products.
Experienced
Management Team
The Company has a management team with experience in
different areas of PVC pipes and fittings industry including production,
quality control, sales, marketing and finance. The management team is supported
by workforce who has deep experience in the industries in which it operates.
The Company's management team includes Managing Director, Mr. Pradip J. Mundhra
who has over 22 years of experience in the plastic industry and Mr. Sanjay R.
Taparia, who has 21 years of experience in trading and marketing of PVC pipes
and fittings. The management team also has long-standing relationships with
many of the major customers, distributors/dealers and suppliers. Further, the
Company has a strong local sales force, which together with the management team
gives the Company an excellent understanding of the needs of the domestic
customers.
Future Strategic
Directions
Government allocation for Irrigation segment on the rise
Few years back, the Indian government initiated an Accelerated Irrigation
Benefit Programme (AIBP) to propel irrigation growth in
Assessing the need and potential of Micro/Drip Irrigation (Ml) in
The surface method of irrigation is the oldest and most widely used
method wherein a stream is diverted from the source to the field through
furrows and borders, allowing it to flow across the slope by gravity. However,
over 60-70% of the water released from the source is lost on the way due to
evaporation, seepage and conveyance losses, thus achieving only 30-40% water
efficiency. Conversely, Ml techniques like sprinklers and drip irrigation are
more efficient. Drip irrigation has achieved 80-90% efficiency levels.
The need of the hour is not only to economize water usage in agriculture
but also to bring more land under irrigation, reduce costs of irrigation and
increase the yield per unit area. Micro Irrigation techniques offer a solution
to these issues and indirectly also helps to reduce costs and improve
productivity.
The Drip irrigation technique, on account of the controlled application
of water, helps to maintain the soil moisture close to the field capacity thus
aiding growth and yield. The favorable growing condition aided by drip
irrigation helps crops mature earlier than the traditional methods. Substantial
increase in yield has been witnessed in different crops using drip irrigation.
Drip irrigation not only aids improvement in yield, but also helps
reduce usage of fertilizers and saves water. High crude oil prices and reliance
on fertilizer imports has been burdening the government on account of the high
subsidies extended to the Fertilizer sector. Given the recent surge in crude
oil prices leading to higher fertilizer prices, the fertilizer subsidy is
envisaged at around Rs.1,200,000 millions. Hence, higher acreage in
Increasing importance of irrigation, and the potential and need of micro
irrigation in the country has seen us to gearing up to capitalize and meet the
challenges of the unfolding opportunity in this space.
Roof Water
Harvesting
In
Expansion of product range
The Company's existing product portfolio comprises of PVC pipes and
fittings, Moulded fittings, PVC casing and screen pipes(CMC Pipe), ASTM
plumbing pipes and fittings, elastometric sealing pipes, LLDPE pipes and
fittings, HOPE pipes and fittings, Sprinkler Systems, Drip irrigation System
and SWR pipes and fittings. The Company further plans to expand its product
range by venturing into the manufacturing of CPVC pipes, Column submersible
pipes, flat inline drip irrigation system, mini sprinkler, soluble fertilizer,
crates, chairs, furniture and brass fittings.
Increasing geographical reach
The Company plans to increase its customer base in its existing domestic
markets and expand its business to new geographic locations viz. Gujarat,
Assam, Delhi, Uttar Pradesh, Uttranchal, Punjab, Haryana, Karnataka, interiors
of West Bengal etc. The Company plans to do this by utilising its marketing
skills and further expanding customer satisfaction by meeting orders in hand on
timely basis and maintaining its client relationships.
Expansion of customer base
The Company intends to cater to its customers in the macro-irrigation
sector, sprinkler irrigation, lift irrigation and construction sector by
expanding its product range in HOPE pipes, LLDPE pipes and injection-moulded
items.
Strengthen Relationship with Clients
The Company believes in maintaining long term relationships with its
clients. The Company endeavors developing relationship with its clients not
only in terms of increased sales but also in terms of varied offerings in the
Company's product mix. The Company aims to achieve this by adding value to its
client service through quality, speed and reliability of its product delivery
and resolution of various customer queries and complaints.
Maintaining cost competitiveness
The Company seeks to be a cost-competitive, high quality producer and is
focused on maintaining its cost competitiveness in the domestic market. There
are plans to further increase productivity and production while reducing costs
by continuing to invest in new equipment, improving the material management
system to minimize wastage and production losses, improving the working capital
cycle to reduce the interest costs, refinancing the higher cost debt with lower
interest debt and exploring ways to use the waste produced etc.
Focus on liquidity and reduction of finance cost
With growing businesses, not only in value and volume terms, but also
geographically, managing finance is becoming more and more critical. On a
continuous basis the Company is focused on having the limits and facilities
available to fund their future growth plan. They are equally focused on
bringing their interest cost down by changing the borrowing mix in line with
change in the market dynamics.
Financial and
Operating Performance:
The total income of the Company for the year 2010-11 was Rs.1591.900 Millions compared to Rs.1011.117 l Millions during the previous year i.e. an increase of 57.44% (Previous year 36.84%). The operating profit (PBDIT) for the Company has increased to Rs.184.130 Millions during the year as against Rs.169.404 Millions for the previous year i.e. increase by 8.69% (Previous year 144.96%). The earning per share (EPS) during the current year has reduced to Rs. 0.91 per share from Rs. 5.03 per share during the last financial year. The Company expects to earn increased revenues to improve the earnings in the near future. The overall capacity utilization has increased from 54% to approx. 60%.
The Company's working capital facilities with the banks have increased during the year from Rs.480.000 Millions to Rs. 650.000 Millions. In the prevailing circumstances, the Company has managed the interest cost reasonably well. The Company enjoys excellent relations with its Bankers and has been able to negotiate various banking facilities favourably. The Company has also got sanction during the year a DPG limit of Rs.45.000 Millions from Punjab National bank and equipment lease financing from private financial institutions to the tune of Rs.20.500 Millions.
The interest cost for the year is on higher side in absolute
terms. The net interest charges increased by 80% in the current year as
compared to previous year, mainly due to the increase in Prime Lending Rate
(PLR) and Base Rate (BR) issued by the Reserve Bank of
The increase in debtors is commensurate to increase in sales. Net sales in last quarter was about 40% of total sales for the year. Sundry debtors in terms of number of days sales has come down to 146 days as compared to 156 days in previous year in spite of change in product mix e.g. higher sales mix of Micro Irrigation in total sales which has longer collection cycle compared to other products. The Company is planning for bill discounting and incentive schemes to improve efficiency in receivable holding in next financial year
CONTINGENT
LIABILITIES :
Contingent
Liabilities not provided for:
(Rs. in millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Bank Guarantee |
3.112 |
2.810 |
|
Capital Contracts remaining to be executed |
-- |
15.000 |
|
Claims not acknowledged as debts including show cause demand notice in
relation to excise and consumer court forum. |
11.111 |
9.783 |
|
Disputed Income tax Demands |
-- |
18.483* |
FIXED ASSETS :
- Air Condition
- Air Cooler
- EPBX
- Generator
- Vacuum Cleaner
- Water Filter
- Weighing
Scale
- Weight &
Mgt.
- Welding
Machine
- Xerox Machine
- Chilling
Plant
- Cooling Tower
- ISI Testing
Equip.
- Machinery
- Magnet
- Water Pump
- Bore well
- Cycle
- Electric
Installation
- Fridge and TV
- Geyser
- Still Camera
- Type Writer
- Furniture
- Office
Equipment
- Water Heater
- DVD Player
- Fan
- Fax Machine
- Moulds
- Guest House
- Truck
- Car
- Vehicles
(2Wheeler)
- Computers
Software
- Factory Shade
- Goodwill
- Land
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.56.29 |
|
|
1 |
Rs.88.26 |
|
Euro |
1 |
Rs.70.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
BYI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
43 |
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.