MIRA
INFORM REPORT
|
Report Date : |
25.05.2012 |
IDENTIFICATION DETAILS
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Name : |
KESORAM INDUSTRIES LIMITED VASAVADATTA CEMENT SECTION – PLANT OF KESORAM INDUSTRIES LIMITED |
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Registered
Office : |
9/1, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
18.10.1919 |
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Com. Reg. No.: |
21-003429 |
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Capital
Investment / Paid-up Capital : |
Rs.457.416 Millions |
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CIN No.: [Company Identification
No.] |
L17119WB1919PLC003429 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALK03134F |
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PAN No.: [Permanent Account No.] |
AABCK2417P |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Portland Cement, Artificial Filament
Viscose Rayon Yarn, Automobile Tyres (for bus and lorry), Automobile Tubes
(for bus and lorry) and Automobile
Flaps (for bus and Lorry) |
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No. of Employees
: |
9000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (60) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 52000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having good track. The
company has incurred some losses in the current year. However, financials of the
company appears to be strong and health. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and condirions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
9/1, |
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Tel. No.: |
91-33-22435453 / 22209454 / 22486607 / 22429454 |
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Fax No.: |
91-33-22109455 |
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E-Mail : |
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Website : |
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Factory : |
· Cement Sedam, District Tel No :- 91-8441-276005 / 277403 Fax No :- 91-8441-276139 E-mail :- communication@vasavadattacement.com
Storage and Packing Unit : Survey
No.296/7/4, Jinnaram Mandel, Medak Dist. - 502325, Basantnagar,
District Karimnagar, Andhra Pradesh-505187, Tel No :- 91-8728-228122/8125/8156 Fax No :- 91-8728-228160 Email: kesoram3@hd2.dot.net.in · Automobile Tyres and Tubes P. O.
Chanpur, Via Curuda, Balasore, Orissa-756056, Tel No :- 91-6782-254259/780/885 Fax No :- 91-6782-254225 E-mail :- btbls@cal2.vsnl.net.in
Gram : Khedimubarakpur, Tehsil : Laksar, Dist : Haridwar, Uttarakhand – 247663 Tel. No : 91-1332-255177 / 254409 Fax No: 91-1332-255099 ·
P.O. Nayasarai, Railway Station, Kuntighat,
Near Tribeni Dist. Hooghly, Tel. No : 91-33-26846431-34 / 26846457 Fax No: 91-33-26846461 E-Mail : kesoram@rayonworks.com ·
P.O. Adcconagar, Bansberia, Dist. Hooghly, Tel. No : 91-33-26346462 / 26346465 / 26346620 Fax No: 91-33-26346621 E-Mail : spunpipe@cal.vsnl.in · Heavy Chemicals 19, P.O. Balaram Dharma Sopan, Kolkata-700
116, West Phone: 033-2553-2879/5183 Fax: 033-2553-3860/2583-9218 E-mail: hhcl_fac@vsnl.net |
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Branches : |
· 10-3-316/A 1st Floor, S. D. Eye Hospital Road, Masab Tank, Hyderabad – 500 028, Andhra Pradesh, India Tel.No: 91-40-23342296/8056 Fax No: 91-40-23344109/7821 Email: hyderabad@vasavadattacement.com
· 10-3-316/A, 2nd Floor, S. D. Eye Hospital Road, Masab Tank, Hyderabad – 500028, Andhra Pradesh, India Tel.No: 91-40-23348896/7843/7613 Fax No: 91-40-23344109/7821 ·
Shivam Chambers, 53, Tel.No: 91-33-22814813/4717/18/19/20 Fax No: 91-33-2281-4874 Email: ho@birlatyre.com
·
8th Floor, Tel.No: 91-33-22131680/89 (10 lines) Extn: 1863/1854 Fax No: 91-33-22421931 E-Mail : hhc_ho@vsnl.net ·
“Industry House”, 10, Tel. No: 91-33-22824721-24 Fax No.: 91-33-22828879 E-Mail : rayon@cal.kesoramrayon.co.in ·
Industry House”, 10, Tel. No: 91-33-22822476-78 Fax No.: 91-33-22829370 E-Mail : kesospun@cal.vsnl.net.in |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Basant Kumar
Birla |
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Designation : |
Chairman |
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Name : |
Mr. Krishna Gopal
Maheshwari |
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Designation : |
Director |
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Name : |
Mr. Bhagwati
Prasad Bajoria |
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Designation : |
Director |
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Name : |
Mr. Pesi Kushru
Choksey |
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Designation : |
Director |
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Name : |
Mr. Amitabha
Ghosh |
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Designation : |
Additional
Director |
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Name : |
Mr. Prasanta
Kumar Malik |
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Designation : |
Director |
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Name : |
Mrs. Manjushree
Khaitan |
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Designation : |
Director |
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Name : |
K.C. Jain |
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Designation : |
Whole Time
Director |
KEY EXECUTIVES
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Corporate offices : |
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Name : |
Mr. |
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Designation : |
Chief Financial Officer and Sr. Joint President (Finance) |
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Name : |
Mr. S. K. Patodia |
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Designation : |
Company Secretary and Sr. Vice President (Commercial - |
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Name : |
Mr.Suresh Sharma |
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Designation : |
Senior Joint President(Commercial) |
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Name : |
Mr. Yashwant Mishra |
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Designation : |
Senior Joint President (Marketing - Cement Sections) |
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Name : |
Mr. G. K. Ojha |
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Designation : |
Senior Vice President (Secretarial) |
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Name : |
Mr. Vikash Agarwal |
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Designation : |
Senior Vice President (Taxation) |
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BIRLA TYRES SECTION : |
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Name : |
Mr. Praveen Mehta |
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Designation : |
Vice President (Sales) |
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Name : |
Mr. R K Shah |
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Designation : |
Vice President (Commercial) |
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Name : |
Mr. A K Uppal |
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Designation : |
Vice President (Marketing) |
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Name : |
Mr. P. K. Mitra |
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Designation : |
Vice President (Engineering) |
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Name : |
Mr. R C Singh |
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Designation : |
Vice President (Production) |
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Name : |
Mr. Anoj Agarwal |
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Designation : |
Vice President (Works) |
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Name : |
Mr. Anupam Dutta |
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Designation : |
Vice President (Technical) |
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Name : |
Mr. Arindam Gupta |
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Designation : |
Vice President (Production) |
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Name : |
Mr. S. C. Sood |
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Designation : |
Vice President (Commercial) |
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Name : |
Mr. Kanti Chaudhury |
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Designation : |
Vice President (Production) |
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Name : |
Mr. R. V Prasad |
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Designation : |
Vice President (Engineering) |
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VASAVADATTA CEMENT SECTION : |
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Name : |
Mr. D S Bindra |
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Designation : |
President |
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Name : |
Mr. P R Sharma |
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Designation : |
Joint President |
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Name : |
Mr. C K Jain |
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Designation : |
Joint President (O and M and TPH) |
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Name : |
Mr. O P Sharma |
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Designation : |
Vice President (Commercial) |
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Name : |
Mr. I K Purohit |
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Designation : |
Vice President (Sales and Marketing) |
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Name : |
Mr. R K Gandhi |
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Designation : |
Vice President (Production and Quality Control) |
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Name : |
Mr. B. K. Sharma |
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Designation : |
Vice President (Mechanical) |
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Name : |
Mr. Rajesh Garg |
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Designation : |
Vice President (Mines) |
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Name : |
Mr. S. G. Karwa |
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Designation : |
Vice President (Finance and Accounts) |
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RAYON AND TRANSPARENT PAPER SECTION : |
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Name : |
Mr. J P Bohra |
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Designation : |
Joint President (Finance) |
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Name : |
Mr. S C Tripathy |
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Designation : |
Senior Vice President (Technical) |
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Name : |
Mr. A. K. Kejriwal |
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Designation : |
Senior Vice President (Marketing) |
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HINDUSTHAN HEAVY
CHEMICALS SECTION :- |
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Name : |
Mr. M L Bhattacharya |
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Designation : |
Senior Vice President (Works) |
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Name : |
Mr. H. R. Dudhoria |
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Designation : |
Vice President (Commercial) |
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KESORAM CEMENT SECTION : |
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Name : |
Mr. S V Tapadia |
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Designation : |
Joint President (Finance and Administration) |
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Name : |
Mr. Mahesh Agarwal |
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Designation : |
Vice President (Technical) |
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Name : |
Mr. Ch. S. Nageshwar Rao |
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Designation : |
Vice President (PQC) |
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Name : |
Mr. Ashok Ostwal |
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Designation : |
Vice President (Sales and Marketing) |
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SPUN PIPES
SECTION : |
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Name : |
Mr. Sadhan Sarkar |
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Designation : |
Dy. General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
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|
|
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|
540,347 |
1.18 |
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|
11,864,512 |
25.94 |
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12,404,859 |
27.12 |
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Total shareholding of Promoter
and Promoter Group (A) |
12,404,859 |
27.12 |
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(B) Public Shareholding |
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|
194,450 |
0.43 |
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|
438,744 |
0.96 |
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|
7,140,153 |
15.61 |
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|
627,396 |
1.37 |
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8,400,743 |
18.36 |
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|
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4,778,202 |
10.45 |
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7,059,956 |
15.43 |
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3,792,340 |
8.29 |
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2,265,343 |
4.95 |
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522,665 |
1.14 |
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1,742,678 |
3.81 |
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|
17,895,841 |
39.12 |
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Total Public shareholding (B) |
26,296,584 |
57.49 |
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Total (A)+(B) |
38,701,443 |
84.61 |
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(C) Shares held by Custodians and
against which Depository Receipts have been issued |
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|
|
-- |
-- |
|
|
7,041,875 |
15.39 |
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|
7,041,875 |
15.39 |
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Total (A)+(B)+(C) |
45,743,318 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Portland Cement, Artificial Filament
Viscose Rayon Yarn, Automobile Tyres (for bus and lorry), Automobile Tubes
(for bus and lorry) and Automobile
Flaps (for bus and Lorry) |
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Products : |
· Cement · Rayon and Transparent Paper · Refractory · Spun Pipes and Foundries · Textile
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PRODUCTION STATUS (As On 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
(a) Installed Capacity |
Actual
Production |
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M. Tone |
15120 |
12410 |
5354* |
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M. Tone |
6000 |
5045 |
2291 * |
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M. Tone |
16500 |
6205 |
1274 * |
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M. Tone |
9750 |
8200 |
2404 * |
|
M. Tone |
3200 |
3200 |
-- |
|
M. Tone |
2400 |
18700 |
13912 * |
|
Vii Purified Hydrogen Gas |
M3 |
3024000 |
1620000 |
398446 * |
* Production is inclusive of internal consumption.
(a) Installed capacities have been certified by the Company’s Technical Experts. Furthermore, the installed capacity of the Transparent Paper Section is also as per Company’s application to the Government of India for C.O.B. Licence.
GENERAL INFORMATION
|
No. of Employees : |
9000 (Approximately) |
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Bankers : |
· Axis Bank Limited ·
Bank of · Citibank N.A. · DBS Bank Limited · HDFC Bank Limited · ICICI Bank Limited · Induslnd Bank Limited · ING Vysya Bank Limited · Punjab National Bank ·
State Bank of ·
State Bank of · Standard Chartered Bank · The Royal Bank of Scodand N.V. ·
The Hongkong and ·
YES Bank Limited. |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Messrs Price Waterhouse Chartered Accountants |
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Related Parties : |
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Parties where
control exists Joint venture : |
Gondkhari Coal Mining Limited |
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|
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|
Mangalam Cement Limited |
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|
|
|
Synergy Enterprises |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.500.000 Millions |
|
400000 |
Redeemable Cumulative Second Preference Shares |
Rs.100/- each |
Rs.40.000 Millions |
|
66000000 |
Ordinary Shares |
Rs.10/- each |
Rs.660.000 Millions |
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Total
|
|
Rs.1200.000 Millions |
Issued, Subscribed
& Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
45743318 |
Ordinary Shares Out of the above:- 575435 shares of Rs.10 each allotted as fully paid up without payment being received in cash pursuant to a scheme of amalgamation 5949480 shares of Rs.10 each allotted as fully paid Up bonus shares by way of capitalization Of Reserve 400000 shares of Rs.10 each – Rs.3.75 per Share received in cash and balance Credited as bonus by way of capitalization Of Reserve |
Rs.10/- each |
Rs.457.433 Millions |
|
Less: |
Allotment Money receivable |
|
Rs. 0.017 millions |
|
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Total
|
|
Rs. 457.416 millions |
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 |
457.416 |
457.416 |
457.416 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12545.091 |
14944.993 |
12843.632 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13002.507 |
15402.409 |
13301.048 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
23718.316 |
18637.152 |
15362.689 |
|
|
2] Unsecured Loans |
16274.448 |
14772.035 |
6056.500 |
|
|
TOTAL BORROWING |
39992.764 |
33409.187 |
21419.189 |
|
|
DEFERRED TAX LIABILITIES |
3864.234 |
3284.382 |
1261.475 |
|
|
|
|
|
|
|
|
TOTAL |
56859.505 |
52095.978 |
35981.712 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
36917.196 |
34318.206 |
18043.473 |
|
|
Capital work-in-progress |
4378.132 |
4128.332 |
8648.527 |
|
|
|
|
|
|
|
|
INVESTMENT |
658.154 |
514.336 |
617.810 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
11185.484
|
9161.941
|
5890.612
|
|
|
Sundry Debtors |
6313.429
|
5428.886
|
3801.705
|
|
|
Cash & Bank Balances |
736.444
|
804.488
|
568.552
|
|
|
Other Current Assets |
318.899
|
301.337
|
223.641
|
|
|
Loans & Advances |
4027.147
|
2874.621
|
2132.411
|
|
Total
Current Assets |
22581.403
|
18571.273 |
12616.921 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6001.289
|
3843.593 |
|
|
|
Other Current Liabilities |
1524.669
|
1442.651 |
|
|
|
Provisions |
149.422
|
149.925
|
313.894
|
|
Total
Current Liabilities |
7675.380
|
5436.169
|
3945.019
|
|
|
Net Current Assets |
14906.023
|
13135.104
|
8671.902
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
56859.505 |
52095.978 |
35981.712 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
53978.767 |
47306.546 |
38777.220 |
|
|
|
Other Income |
1616.240 |
1307.150 |
759.398 |
|
|
|
TOTAL (A) |
55595.007 |
48613.696 |
39536.618 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Ram Materials and Finished Goods |
29933.306 |
22322.347 |
16535.171 |
|
|
|
Manufacturing, Selling and Administrative Expenses |
22061.027 |
18718.089 |
16583.022 |
|
|
|
TOTAL (B) |
51994.333 |
41040.436 |
33118.193 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3600.674 |
7573.260 |
6418.425 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2398.257 |
1090.312 |
1208.721 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1202.417 |
6482.948 |
5209.704 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2725.863 |
1728.003 |
1118.561 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(1523.446) |
4754.945 |
4091.143 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
578.678 |
2381.571 |
303.733 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(2102.124) |
2373.374 |
3787.410 |
|
|
|
|
|
|
|
|
|
|
Transfer to/(from) Debenture Redemption Reserve (Net ) |
(612.500) |
1012.500 |
250.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
0.000 |
240.000 |
447.816 |
|
|
|
Proposed Dividend |
148.666 |
148.666 |
148.665 |
|
|
|
Interim Dividend |
102.922 |
102.922 |
102.922 |
|
|
|
Tax on Proposed Dividend |
24.117 |
24.692 |
25.265 |
|
|
|
Tax on Interim Dividend |
17.094 |
17.492 |
17.491 |
|
|
BALANCE CARRIED
TO THE B/S |
(1782.423) |
827.102 |
2795.251 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3393.162 |
3750.367 |
2541.671 |
|
|
TOTAL EARNINGS |
3393.162 |
3750.367 |
2541.671 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
8592.224 |
4399.318 |
3446.101 |
|
|
|
Stores & Spares |
113.248 |
107.789 |
274.582 |
|
|
|
Capital Goods |
1424.461 |
3247.058 |
1624.274 |
|
|
TOTAL IMPORTS |
10129.933 |
7754.165 |
5344.957 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(45.95) |
51.88 |
82.80 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
15406.100 |
12868.600 |
15644.600 |
15528.200 |
|
Total Expenditure |
14826.700 |
13587.400 |
16508.200 |
15432.600 |
|
PBIDT (Excl OI) |
579.400 |
(718.800) |
(863.600) |
95.600 |
|
Other Income |
57.500 |
32.200 |
3.800 |
428.700 |
|
Operating Profit |
636.900 |
(686.600) |
(859.800) |
524.300 |
|
Interest |
796.400 |
917.800 |
1015.100 |
1126.200 |
|
Exceptional Items |
0.000 |
112.200 |
0.000 |
0.000 |
|
PBDT |
(159.500) |
(1492.200) |
(1874.900) |
(601.900) |
|
Depreciation |
737.800 |
738.000 |
738.600 |
759.600 |
|
Profit Before Tax |
(897.300) |
(2230.200) |
(2613.500) |
(1361.500) |
|
Tax |
(232.200) |
434.000 |
142.900 |
(3649.800) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(665.100) |
(2664.200) |
(2756.400) |
(2288.300) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(665.100) |
(2664.200) |
(2756.400) |
(2288.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(3.78)
|
9.78 |
10.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.82)
|
10.05 |
10.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.56)
|
8.99 |
13.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.12)
|
0.31 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.67
|
2.52 |
1.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.94
|
3.42 |
3.20 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
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 |
GENERAL REVIEW
The Company’s turnover has increased about 15% to Rs.57500.000 Millions compared to Rs.50200.000 Millions in previous year. The growth is mainly due to increase in sales of Tyre Section which standalone registered a growth of about 27% from Rs.28500.000 Millions to Rs.36090.000 Millions. Current year was a tough period as the Company faced challenges, where Tyre Section went through sharp hikes in raw material cost and Cement exhibited a sluggish trend for most part of the year.
Cement sales have dropped about 3% due to lower cement
prices industry wide, especially in southern
The Company could manage the overall volume growth in various business segments, but the margins were adversely affected by sharp increase in input and distribution costs as well as higher depreciation cost by Rs.1000.000 Millions and higher interest cost by Rs.1300.000 Millions.
Work at Spun Pipe Section and Hindusthan Heavy Chemicals section continues to be under suspension.
CEMENT SECTIONS
1. Vasavadatta Cement
Operational performance of this section continues to be good and it has achieved highest-ever production of Cement during the year. The production figures of this Section are as under:
|
|
2010-11 (Metric Tons) |
2009-10 (Metric Tons) |
|
Clinker |
3920723 |
4298390 |
|
Cement |
4277698 |
4203373 |
Increase in the production of cement, though marginal, has been achieved despite sluggish demand conditions prevailing in the construction sector. New capacity additions by other companies have created a supply surplus situation, which has depressed the cement prices. Substantial increase in the cost of coal and raw materials has additionally increased pressure on the profit margins.
Shortage of rail wagons for movement of Cement has also hampered there Cement production, due to which clinker stock continued to remain high. This Industry considerably depends on railway for movement of its input as well as finished products to long-distance market. The shortage of wagons coupled with increase in freight charges by railway as well as road has increased the distribution cost.
This Section has been able to withstand severe competition coupled with depressed demand, due to its consistent quality, strong brand image and extensive distribution network.
Captive power generation was 444.33 million kwh during the year which has catered to about 97% of the total power requirement of the section. 71.13 million kwh of power generated from the power plants was sold to Gulbarga Electricity Supply Company Limited, as against last year’s 54.15 million kwh.
As a part of corporate social responsibility, the unit has continued to undertake various social welfare and development activities around the area of the unit such as Free Health Check up and Treatment Camps, Free Eye Camps, Blood Donation Camps, Dental Camps, Pulse Polio Camps, Fixing Street Lights, Fixing of Animal Trackers, Tree Plantation, Soil Testing and Agriculture Camps and other social activities.
During the year, the Unit has bagged the following prizes:
a) Limestone Mines of this Section bagged two first prizes in “Drilling and Blasting”, “Operation and Maintenance of mining machines” and three second prizes in “Overall performance”, “Loading and Transportation” and “Lighting and Electrical installation” from the Director General of Mines Safety during Mines Safety Week Celebrations.
b) Under National Safety Awards Scheme-2009, this Section was selected for Runners-up prize for “Lowest Injury Frequency Rate”, which will be presented by the Hon’ble President of India.
c) Won five first prizes and three second prizes in various categories from Indian Bureau of Mines during the Mines Environment and Mineral Conservation Week Celebrations, Gulbarga Zone.
d) Boiler of Unit No. I Captive Thermal Power Plant of this Section has been awarded second prize for “Safe Industrial Boiler” in the State Level Competition conducted by Karnataka State Safety Institute and Department of Factories and Boilers.
e) Awarded “Excellent Water Efficient Unit within the Fence” in the 7th National Award for Excellence in Water Management 2010 – organised by Indian Industries-Godrej Green Business Centre.
Apart from the above, one student of Vasavadatta Vidya Vihar has been given “Amul Vidyashree Award” instituted by Gujarat Co-operative Milk Marketing Federation Limited., for excellence in CBSE examination and also 16 Scouts and Guides have been awarded the coveted ‘Rajya Puraskar Award’ for the fourth consecutive year by the Hon’ble Governor of Karnataka. Industrial relations during the year were cordial.
2. Kesoram Cement
Production figures of this Section are as under:
|
|
2010-11 (Metric Tons) |
2009-10 (Metric Tons) |
|
Clinker |
893920 |
1161200 |
|
Cement |
1150486 |
1378833 |
Production of Clinker, Cement and Cement despatches were adversely affected mainly due to longer stoppage of one Kiln for replacement of existing 1978 model Cooler with LNV Cooler and replacement of cracked tiers of both the Kilns. In addition, the political agitations in the area further suppressed the Cement demand in the region.
Cement prices fluctuated in the market due to demand supply mismatch and also substantial increase in the cost of raw materials, coal, power and other inputs. Due to these reasons the performance of this Section got adversely affected.
Captive Thermal Power Plant of this Section generated 106.59 million kwh of Power, out of which 3.3 million kwh were supplied to APTRANSCO during shutdown. About 89% of the power requirement of the Cement Plant is met from the Captive generation and balance Power was purchased from APTRANSCO. This Section is considering feasibility of power generation by Waste Heat Recovery System which will give considerable advantage in cost of power generation.
The suit challenging the validity of imposition of Electricity Duty on captive power generation @ 25 paise per Unit from 17.07.2003 by the Government of Andhra Pradesh is still pending before the Hon’ble High Court of Andhra Pradesh.
This Section bagged National Award for Mines Safety for the year 2008 from Ministry of Labour and Employment, Director General of Mines Safety, Government of India, which will be presented shortly by the Hon’ble President of India.
Basantnagar Limestone Mines of this Section bagged first prize for “ Environment and Health Management” and two second prizes for “Heavy Earth Moving Machinery” and “Publicity, Propaganda and Innovations” from Director General of Mines Safety during Mines Safety Week Celebrations.
The said Mines also got first prize for “Waste Dump Management” and two second prizes for “Sub-Grade Mineral” and “Overall Performance State Level” from Indian Bureau of Mines during the Mines Environment and Mineral Conservation Week celebrations.
As part of corporate social responsibility, the Section is continuing the rural and community development activities in nearby villages, running of Agricultural Demonstration Farm, Model Dairy Farm, Vocational Training Centre for Youth and participating in other social welfare activities such as Pulse Polio Programme, Health Camps, Farmers’ Training, Animal Health Camps, Distribution of Agriculture Implements to poor farmers and Tricycles and Telephone Booths to Handicapped, etc.
Industrial relations were cordial during the year.
BIRLA TYRES SECTIONS
The gross turnover of this Section for the year increased about 27% to Rs.36090.000 Millions from Rs.28500.000 Millions last year. The export sales for the year amounted to Rs.3200.000 Millions as against Rs.3610.000 Millions in the previous year.
Though the Section has recorded commendable sales growth but due to sharp increase in raw material prices particularly of natural rubber, profitability has been adversely affected.
At Haridwar Plant the operations were suspended for six days due to unprecedented floods and the profitability was further impacted due to 18 days lock-out at Balasore Plant.
Capacity expansion to increase the production of Truck/Bus Radial tyres by 85 MT/day at Haridwar (capital outlay: Rs.3500.000 Millions) and Passenger Car Radial tyres by 80 MT/day at Balasore (Capital outlay: Rs.4500.000 Millions) will be completed by 2nd quarter of 2011-12.
The Section continues to have the distinction of being
certified for ISO-9001, TS-16949, ISO-14001, SA-8000,
Relations with employees have been cordial and conducive to growth.
RAYON AND TRANSPARENT
PAPER SECTIONS
The year started with the VFY (Viscose Filament Yarn) demand
displaying signs of weakening with the inventory built up. The weakness
reversed during the 2nd Quarter due to increase in prices of other competing
fibres. Also the VFY production cost in
Production of T.P. (Transparent Paper) was marginally higher due to improved demand from the ‘Fireworks’ industry which is the main consuming sector of this product. The exports were 332 M.T. against 293 M.T. of last year.
Chemical business was some how satisfactory. Steep rise in
the price of
Owing to unprecedented increase in Pulp and
Section suffered. Also due to global shortage of Cotton Linter Pulp, the price of Rayon Grade Wood Pulp is showing strong trend of increase which coupled with recent abnormal increase in coal price may affect the profit of the Section adversely during the coming year. The sale prices of VFY and T.P. are almost at saturation level and further increase, if any, may spur substitution and subsequent fall in demand.
The technical performance of the Unit was satisfactory and relations with the employees were cordial during the year.
SPUN PIPES SECTION
Factory is under Suspension of Work on and from 2nd May 2008 because of day-to-day low production, quality problems and high rejections attributable to workmen. Several Bipartite and Tripartite meetings were held during the year. But, due to continued hostile attitude and rigid stand taken by a section of the workmen and their unions, the efforts made to reach a settlement were not successful. The blockade and barricade in front of the factory gate is still continuing. Finished goods and other material lying inside the factory could not be removed.
HINDUSTHAN HEAVY
CHEMICALS SECTION
The Production figures of the Section were as under:-
|
Products |
2010-11 |
2009-10 |
|
Caustic Soda |
5354 MT |
11663 MT |
|
Sulphuric Acid |
13912 MT |
19061 MT |
|
Hydrogen Gas |
398446 M3 |
753453 M3 |
Production was adversely affected due to restrictions imposed by Pollution Control Board on operation of Caustic Chlorine Plant during July, 2010 and a fire in Rectifier-Transformer during August, 2010. Presently, the Unit is under ‘Suspension of Work’ with effect from 8th December 2010 consequent upon an illegal strike by a section of contract workers from 1st December, 2010.
REPORT ON MANAGEMENT
DISCUSSION AND ANALYSIS
A. INDUSTRY STRUCTURE
AND DEVELOPMENT
·
CEMENT
Indian Cement Industry continues to be the second largest Cement producer in the world with installed capacity of
275.01 Million Tons and producing world-class quality Cement from State-of-the Art technology manufacturing facilities.
The Indian Cement Industry had a growth of only 5% in the year as compared to 12% in previous year due to slowdown in the housings sector, prolonged monsoon and delay in execution of infrastructure projects.
Cement Industry achieved the capacity utilization of about 75% as against 85% last year. This has dropped mainly due to substantial addition of capacity during the last three years. Capacity utilization in the Southern Region (where both the cement plants of the Company are situated) saw the highest capacity additions in the last three years and average utilization of 65%.
·
The Indian Tyre Industry is dominated by the organized
sector and consists of five major players – MRF, J.K. Tyres, Apollo Tyres,
Birla Tyres and Ceat Tyres, who together account for approximately 85% of the
industry’s turnover. These big five players are present in all product segments
except for two wheeler where only Ceat, MRF and Birla Tyres are present. These
companies have a presence in all the major segments of the tyre industry – the
replacement market, original equipment manufacturers (OEMs) as well as export.
Some of the global majors like Bridgestone and Goodyear also have their
operations in
Quite unlike the global tyre industry, which is dominated by
passenger car radial tyre sales, commercial vehicle tyres’ sales constitute 65%
of the turnover of the Indian tyre industry. Another point of difference
between Indian and the global tyre industry is the extent of radialisation in
the commercial vehicle segment. While globally it is around 80%. In
In anticipation of the next big radialisation wave, most manufacturers have either installed capacities or announced plans of doing the same, including Apollo, Birla, MRF, Bridgestone, J.K. Tyre and Michelin. Similarly, considering strong demand forecast in the passenger car segment, manufacturers across the board are making investments to maximize capacities.
The Indian Tyre Industry is equipped to meet the demand of the domestic market, besides generating surpluses for export.
·
RAYON AND
TRANSPARENT PAPER
The country has annual production capacity of about 40,000 tons of Viscose Filament Yarn and demand is estimated to be around 55,000 tons annually. The gap is met by imports. Hence there is scope of increasing indigenous production for which Indian industry is taking necessary steps for enhancing their production capacity. The boost in demand is due to high cost of imports and rising prices of competing yarn. Even the Section being only producer of Transparent Paper in the country, the demand is not increasing effectively. The high cost of production is making this product unviable in the long run. However the production and sales remained stable. The production was maintained according to the size of demand.
·
SPUN
PIPES
The Industry witnessed good demand for Ductile Iron pipes during the year. Cast Iron pipes continue to face very stiff competition from Ductile Iron pipes. As the Section is under Suspension of Work since 2nd May 2008, no comments are made under the heads “Opportunities and Threats, Segment wise Performance, Outlook and Risks and Concerns”.
·
HEAVY
CHEMICALS
The capacity utilization of Indian Caustic Soda Industry improved to around 80% during the year due to improvement of demand. The demand for the main product Caustic Soda and joint product Chlorine improved during the 3rd quarter and peaked towards the end of the year as imports were lower due to unfavourable price in international market.
Capacity utilization of Sulphuric Acid Plant was normal despite inflow of by-product material from zinc and copper smelters.
As the Section is under suspension of work since 8th December, 2010, no comments are made under the heads
Opportunities and Threats, Segment wise Performance, Outlook and Risk and Concerns.
B. OPPORTUNITIES AND
THREATS
·
CEMENT
In order to meet future demand for Cement, Industry has taken up large scale addition in capacity during the last three years and further substantial capacity addition is planned during next two years.
Demand for Cement from sectors such as Roads, Railways, Power Projects is expected to improve as Centre is planning for massive investments during Twelfth Plan. Government has been increasing its budget allocation substantially in High-ways, Roads for Rural Connectivity, mass Housing and urban Developments, etc.
Non-availability of adequate good quality Coal as well as Railway Wagons for transportation are the main threats, considering the continuous increase in Cement Capacity.
·
Opportunities
- The national thrust in road infrastructure and construction of expressways and national highways presents a range of opportunities for the tyre industry.
-
Early mover advantage in the rapidly growing
truck radial segment in
Threats
- Continued volatility of raw material prices.
- Currency fluctuation
·
RAYON AND
TRANSPARENT PAPER
Due to increase in cost of inputs,
Price increase of T.P. due to steep increase in cost of inputs is posing biggest threat of diversion to cheap imports and other substitutes. The recent regulatory restrictions in usage of plastic may provide an opportunity for increased usage of Transparent Paper.
C. OUTLOOK
·
CEMENT
Even-though
·
Fortune of tyre industry is linked to the automobile and transportation sectors. Future looks bright due to various economic fillips by the government, large infrastructure spending and a cautiously positive sentiment.
·
RAYON AND
TRANSPARENT PAPER
VFY demand should grow with increase in textile consumption
in
The outlook of the T.P. business remains positive in view of recent Government notification on the restricted use of plastics. However, the realization will be under pressure due to cheap imports.
CONTINGENT LIABILITIES:
Rs. In Millions
|
Particular |
31.03.2011 |
31.03.2010 |
|
(a)Guarantees given |
|
|
|
(i) to excise authorities |
1.173 |
1.173 |
|
(ii) by Banks on behalf of the Company |
646.201 |
703.855 |
|
(b) Claims against the Company not acknowledged as debts : |
|
|
|
Rates, Taxes, Duties etc. demanded by various Authorities |
1377.648 |
1209.400 |
|
Amount demanded by Provident Fund |
8.686 |
8.686 |
|
Authorities which is sub judice |
1386.334 |
1218.086 |
|
(c) Rates, Taxes, Duties etc. |
302.988 |
81.489 |
|
(d) Amount payable in connection with reorganisation of the Company in earlier year |
35.901 |
37.122 |
STATEMENT OF FINANCIAL RESULTS FOR THEQUARTER (UNAUDITED) AND THE YEAR
(AUDITED) ENDED 31-03-2012
Rs. In Millions
|
Sl. No. |
Particulars |
3 months ended 31.03.2012 (Unaudited) Refer note no 7 |
3 months ended 31-12-2011 (Unaudited) |
Current accounting year ended 31-03-2012 (Audited) |
||
|
1. |
|
|
|
|
||
|
|
a. |
Net Sales/Income from Operations |
15483.400 |
15480.800 |
59033.800 |
|
|
|
b. |
Other Operating Income |
44.800 |
114.800 |
174.800 |
|
|
|
Total |
15528.200 |
15595.600 |
59208.600 |
||
|
2. |
Expenditure |
|
|
|
||
|
|
a. |
Cost of materials consumed |
6941.100 |
9909.100 |
34240.200 |
|
|
|
b. |
Purchase of stock-in-trade |
185.200 |
218.100 |
521.900 |
|
|
|
c. |
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
1825.700 |
(143.200) |
1251.400 |
|
|
|
d. |
Employee benefits expense |
995.100 |
850.500 |
3346.800 |
|
|
|
e. |
Depreciation (net of transfer from revaluation reserve) and amortisation |
756.900 |
738.600 |
2974.000 |
|
|
|
f. |
Power and fuel |
1910.100 |
2149.400 |
7615.000 |
|
|
|
g. |
Packing and Carriage |
1274.900 |
1098.300 |
4666.700 |
|
|
|
h. |
Other Expenditure |
2300.500 |
2275.500 |
5845.800 |
|
|
|
Total |
16192.200 |
17096.300 |
63161.800 |
||
|
3. |
Profit / (Loss) from Operations
before Other Income,
Interest and Exceptional Items (1 - 2) |
(664.000) |
(1507.000) |
(3953.200) |
||
|
|
|
|
|
|
||
|
4. |
Other Income |
428.700 |
3.800 |
840.000 |
||
|
|
|
|
|
|
||
|
5. |
Profit / (Loss) before
Interest and
Exceptional Items (3
+ 4) |
(235.300) |
(1496.900) |
(3113.200) |
||
|
|
|
|
|
|
||
|
6. |
Interest |
1126.200 |
1116.600 |
4101.500 |
||
|
|
|
|
|
|
||
|
7. |
Profit / (Loss) after Interest
but before Exceptional
Items (5 - 6) |
(1361.500) |
(2613.500) |
(7214.700) |
||
|
|
|
|
|
|
||
|
8. |
Exceptional items |
-- |
-- |
(112.200) |
||
|
|
|
|
|
|
||
|
9. |
Profit / (Loss) from Ordinary
Activities before tax
(7 + 8) |
(1361.500) |
(2613.500) |
(7102.500) |
||
|
10. |
Tax Expense |
|
|
|
||
|
|
a. |
Provision for Current Tax |
(12.700) |
-- |
(12.700) |
|
|
|
b. |
Provision for Deferred Tax charge / (credit) |
(3636.800) |
142.900 |
(3292.100) |
|
|
|
c. |
Provision for Fringe Benefit Tax (Net) |
(0.300) |
-- |
(0.300) |
|
|
11. |
Net Profit / (Loss)from Ordinary Activities after tax (9 - 10) |
2288.300 |
(2756.400) |
(3797.400) |
||
|
|
|
|
|
|
||
|
12. |
Extraordinary Items (net of tax expense Rs. Nil) |
-- |
-- |
-- |
||
|
|
|
|
|
|
||
|
13. |
Net Profit / (Loss) for
the period (11 - 12) |
288.300 |
(2756.400) |
(3797.400) |
||
|
14. |
Paid-up Ordinary Share Capital (Face Value Rs.10.00 per share) |
2288.300 |
(2756.400) |
457.400 |
||
|
15. |
Reserves excluding Revaluation Reserve as per Balance Sheet of
previous accounting year |
457.400 |
457.400 |
8665.600 |
||
|
16. |
Earnings Per Share
(EPS) |
|
|
|
||
|
|
a. |
Basic and Diluted EPS before Extraordinary Items (Rs.) |
50.03 |
(60.26) |
(83.02) |
|
|
|
b. |
Basic and Diluted EPS after Extraordinary Items (Rs.) |
50.03 |
(60.26) |
(83.02) |
|
|
17 |
Public Shareholding |
|
|
|
||
|
|
– |
Number of shares |
26296584 |
26557099 |
26296584 |
|
|
|
– |
Percentage of shareholding |
57.49% |
58.06% |
57.49% |
|
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
||
|
|
a. |
Pledged /Encumbered |
|
|
|
|
|
|
|
- |
Number of shares |
Nil |
Nil |
Nil |
|
|
|
- |
Percentage of shares (as a % of the total shareholding of |
-- |
-- |
-- |
|
|
|
- |
Percentage of Shares (as a % of the total share capital of the
company) |
-- |
-- |
-- |
|
|
b. |
|
Non encumbered |
|
|
|
|
|
|
- |
Number of shares |
12404859 |
12144344 |
12404859 |
|
|
|
- |
Percentage of shares (as a % of the total shareholding of |
100% |
100% |
100% |
|
|
|
- |
Percentage of Shares (as a % of the total share capital of the
company) |
27.12% |
26.55% |
26.32% |
REPORT ON SEGMENT REVENUE, RESULTS AND
CAPITAL EMPLOYED
Rs. In Millions
|
|
Particulars |
3 months ended 31-03-12 (Unaudited) |
3 months ended 31-12-11 (Unaudited) |
Current accounting year ended 31-03-12 (Audited) |
|
|
1. |
Segment Revenue |
|
|
|
|
|
|
a. |
Tyres |
9740.100 |
10712.100 |
39224.400 |
|
|
|
|
|
|
|
|
|
b. |
Cement |
5862.500 |
4965.000 |
20604.500 |
|
|
|
|
|
|
|
|
|
c. |
Rayon, T.P. and Chemicals |
795.600 |
705.400 |
2829.600 |
|
|
|
|
|
|
|
|
|
d. |
Unallocated |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
TOTAL |
16398.200 |
16382.500 |
62658.500 |
|
|
|
Less : Inter segment revenue (at cost) |
1.900 |
0.500 |
7.300 |
|
|
|
|
|
|
|
|
|
|
Net Sales / Income from Operations |
16396.300 |
16382.000 |
62651.200 |
|
|
2. |
Segment Results Profit / (Loss) before Tax and Interest |
|
|
|
|
|
|
a. |
Tyres |
(1339.000) |
(1820.500) |
(6166.800) |
|
|
b. |
Cement |
13778.000 |
924.700 |
4393.200 |
|
|
c. |
Rayon, T. P. and Chemicals |
(173.000) |
(31.000) |
(129.900) |
|
|
d. |
Unallocated |
(5.900) |
(4.200) |
(16.600) |
|
|
TOTAL |
(140.100) |
(931.000) |
(1920.100) |
|
|
|
Less : |
|
|
|
|
|
|
a. |
Interest |
1126.200 |
1116.600 |
4101.500 |
|
|
|
|
|
|
|
|
|
i. |
Other Un-allocable Expenditure |
102.000 |
569.700 |
1181.200 |
|
|
ii. |
Other Un-allocable Income |
6.800 |
3.800 |
100.300 |
|
|
b. |
Other Un-allocable Expenditure (net-off other Un-allocable Income)
[(i)-(ii)] |
95.200 |
565.900 |
1080.900 |
|
|
Total Profit / (Loss) before Tax |
(1361.500) |
(2613.500) |
(7102.500) |
|
|
3. |
Capital Employed (Segment Assets-Segment Liabilities) |
|
|
|
|
|
|
a. |
Tyres |
35327.500 |
35164.700 |
35327.500 |
|
|
b. |
Cement |
16962.200 |
16504.000 |
16962.200 |
|
|
c. |
Rayon, T.P. and Chemicals |
1212.500 |
1331.600 |
1212.500 |
|
|
d. |
Unallocated |
58.600 |
64.700 |
58.600 |
|
|
TOTAL |
53560.800 |
53065.000 |
53560.800 |
|
Notes
1. Mark-to-market loss recognised in respect of outstanding derivative contracts is Rs.40.800 Millions. (Previous year Rs.51.100 Millions)
2. The Company's Spun Pipes and Foundries Unit continues to be under suspension of work (effective 2nd May,
2008).
3. a. Pending disposal (consented by the shareholders in March, 2006) of the Company's Hindusthan Heavy Chemicals Unit, the revenue/expenses of the unit (insignificant in term s of the Company's total revenue/expenses) have been and will be included in these and subsequent results till its disposal.
b. The Company had to declare suspension of work at the unit effective 8th December, 2010 in consequence of illegal strike/activities by workmen.
4. During the year, the Company has recognised deferred tax assets on business losses to the extent of deferred tax liability.
5. Claims have been lodged with the insurers on account of flood dam age against losses to stock, equipment and loss of profit at a Birla Tyres (Uttarakhand) Unit of the Company. On a prudential basis, aggregate claims amounting to Rs.380.100 Millions has been recognised in these Accounts. Against these claims, an amount of Rs.125.800 Millions h as already been realized and Rs.72.900 Millions i s realisableagainst confirmed orders for salvage. The balance amount of claim is being processed by the insurers for settlement. The Auditors, in their Report, have commented upon the appropriateness of the recognition of the claim. The Management is of the view that it has also kept in mind the consideration of prudence in recognising the income.
6. The Com pan y has initiated legal action against an erstwhile management official an d others in respect of certain transactions in one of its Units. A detailed follow up in vestigation in the matter has also been commissioned by the Company. The investigation being on going and the matter being sub judice, resulting adjustments and related disclosures, if any, that may be required, cannot be readily ascertained at this stage. Consequently, the Auditor's obervationsrelating to adjustments and related disclosures that may be required in these Financial Statements can be addressed only after the investigation is complete.
7. The results for the quarter ended 31st M arch, 201 2 are derived figure arrived at by subtracting the results for the nine month sended on 31st December 2011 from the audited results for the year ended 31st March, 201 2.
8. The time frame for completion of expansion of 80 M T/day capacity of the carradial project at Balasore and 85 M T/day capacity of truck radial tyre project at Uttarakhand are being extended to second half of 201 2-1 3.
Statement of Assets
and Liabilities as at 3 1st March, 2 0 1 2
Rs. In Millions
|
|
Particulars |
Current accounting year ended 31-03-2012 |
|
|
|
(Audited) |
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholders' funds |
|
|
|
(a) Share capital |
457.400 |
|
|
(b) Reserves and surplus |
8692.600 |
|
|
(c) Money received against share warrants |
- |
|
|
Sub-total - Shareholders' funds |
9150.000 |
|
|
|
|
|
2 |
Share application money pending allotment |
- |
|
_ |
|
|
|
3 |
Non-current liabilities |
|
|
|
(a) Long-term borrowings |
27557.700 |
|
|
(b) Deferred tax liabilities (net) |
572.100 |
|
|
(c) Other long-term liabilities |
- |
|
|
(d) Long-term provisions |
- |
|
|
Sub-total - Non-current liabilities |
28129.800 |
|
|
|
|
|
_ 4 |
Current Liabilities |
|
|
|
(a) Short-term borrowings |
13495.700 |
|
|
(b) Trade payables |
5278.500 |
|
|
(c) Other current liabilities |
8457.400 |
|
|
(d) Short-term provisions |
715.700 |
|
|
Sub-total - Current liabilities |
27947.300 |
|
I |
TOTAL - EQUITY AND LIABILITIES |
65227.100 |
|
B |
ASSETS |
|
|
1 |
Non-current Assets |
|
|
|
(a) Fixed assets |
42107.300 |
|
|
(b) Non-current investments |
663.600 |
|
|
(c) Deferred tax assets (net) |
- |
|
|
(d) Long-term loans and advances |
1562.300 |
|
|
(e) Other non-current assets |
22.100 |
|
|
Sub-total - Non-current assets |
44355.300 |
|
|
|
|
|
2 |
Current assets |
|
|
|
(a) Current investments |
|
|
|
(b) Inventories |
9951.600 |
|
|
(c) Trade receivables |
6724.400 |
|
|
(d) Cash and cash equivalents |
695.900 |
|
|
(e) Short-term loans and advances |
3117.300 |
|
|
(f) Other current assets |
382.600 |
|
|
Sub-total - Current assets |
20871.800 |
|
|
|
|
|
|
TOTAL - ASSETS |
65227.100 |
FIXED ASSETS
- Buildings
- Railway Siding
- Plant and Machinery
- Electric Power Sub-Station at Nangi
- Furniture
- Fixture
- Office Equipment
- Vehicles
- Livestock
WEBSITE DETAILS
History
The Company was incorporated on 18th October, 1919 under the Indian Companies
Act, 1913, in the name and style of Kesoram Cotton Mills Limited. It had a
Textile Mill at 42,
Growth
The First Plant for manufacturing of Rayon Yarn was
established at Tribeni, District Hooghly,
The plant for manufacturing of Transparent paper was also set up at the
same location at Tribeni, District Hooghly,
The Company diversified into manufacturing of Cast Iron Spun Pipes and
Pipe Fittings at Bansberia, District Hooghly,
The Company subsequently diversified into the manufacturing of Cement. In
1969, it established first Cement Plant under the name 'Kesoram Cement' at
Basantnagar, Dist. Karimnagar (Andhra Pradesh). To take advantage of favourable
market conditions, in 1986 another Cement Plant, known as 'Vasavadatta Cement'
was commissioned by it at Sedam, Dist. Gulbarga (Karnataka). The Cement
manufacturing capacities at both the plants were augmented from time to time
according to the market conditions, last being the commencement of commercial
production at Unit IV of Vasavadatta Cement having capacity of 1.65 million
metric ton.
As on 31.3.2011 Kesoram Cement and Vasavadatta Cement have annual Cement
manufacturing capacities of 1.5 million metric ton and 5.75 million metric ton
respectively.
The Company in March 1992, commissioned a plant at Balasore known as
Birla Tyres in Orissa, for manufacturing of 118 metric ton per day automotive
tyres and tubes in the first phase in collaboration with Pirelli Limited.,
U.K., a subsidiary company of the world famous Pirelli Group of Italy - a
pioneer in production and development of automotive Tyres in the world. The
capacity at the Balasore Plant stands augmented to 271 MT per day production
facility as on 31.3.2011.
A
The Company as on 31.3.2011 has the capacity to produce 823 MT/day of tyres,
tubes and flaps in the aforesaid two Plants.
It has small manufacturing capacities of various Chemicals at Kharda in the
State of West Bengal comprising of 12,410 mtpa of Caustic Soda Lye, 5,045 mtpa
of Liquid Chlorine, 6,205 mtpa of Sodium Hypochlorite, 8,200 mtpa of Hydrochloric
Acid, 3,200 mtpa of Ferric Alum, 18,700 mtpa of Sulphuric Acid and 16,20,000 m3
per annum of purified Hydrogen Gas.
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 : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
60 |
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.