MIRA
INFORM REPORT
|
Report Date : |
20.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
GULSHAN POLYOLS LIMITED |
|
|
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Registered Office : |
9th KM, |
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Country : |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
20.10.2000 |
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Com. Reg. No.: |
20-034918 |
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Capital Investment / Paid-up Capital : |
Rs.144.742 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24231UP2000PLC034918 |
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|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELG05217C |
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PAN No.: [Permanent
Account No.] |
AABCG3954F |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Calcium Carbonate and Sorbitol. |
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|
No. of Employees : |
1200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
||
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
Maximum Credit Limit : |
USD 5400000 |
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|
|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A (Long Term Bank Facilities) |
|
Rating Explanation |
Having adequate degree of safety regarding timely servicing of
financial obligation. It carry low credit risk. |
|
Date |
January 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Factory 1 : |
9th KM, |
|
Tel. No.: |
91-131-3295880 / 3295888 |
|
Fax No.: |
91-131-2661378 |
|
E-Mail : |
nishagupta@gulshanindia.com |
|
Website : |
|
|
|
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Corporate Office and Investor Cell : |
G-81, Preet Vihar, |
|
Tel. No.: |
91-11-49999200 |
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Fax No.: |
91-11-49999202 |
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|
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|
Factory 2 : |
Plot No. 762, Jhagadia Industrial Estate, Bharuch-393110, |
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Tel. No.: |
91-2645-226044/ 309585 |
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Fax No.: |
91-2645-226045 |
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E-Mail : |
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Factory 3 : |
Village |
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Tel. No.: |
91-1704-257561 |
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Fax No.: |
91-1704-257560 |
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|
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Factory 4 : |
Plot No.-10, 11
and Part of 9, Boregaon Industrial Growth Centre, Tehsil - Sausar, District Chhindwara,
Madhya Pradesh, India |
|
Tel. No.: |
91-7165-226020 |
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Factory 5 : |
E-21 and 22,
RIICO Growth Centre, Phase-II, Abu
Road, District Sirohi, Rajasthan, India |
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Marketing Office: |
Located at: ·
Mumbai ·
Delhi |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Dr. Chandra Kumar Jain |
|
Designation : |
Chairman cum Managing Director |
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|
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|
Name : |
Mr. Ajay Jain |
|
Designation : |
Non-Executive Independent Director |
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Name : |
Mr. K K Pandey |
|
Designation : |
Chairman and Non- Executive Independent Director |
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Name : |
Mr. A K Maheshwari |
|
Designation : |
Non-Executive Independent Director |
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|
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|
Name : |
Mr. A K Vats |
|
Designation : |
Whole Time Director |
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|
|
|
Name : |
Ms. Arushi Jain |
|
Designation : |
Whole Time Director |
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|
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|
Name : |
Ms. Aditi Pasari |
|
Designation : |
Whole Time Director |
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|
|
|
Name : |
Mr. S. K. Tewari |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Ms. Nisha Gupta |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Rajesh Agarwal |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(1) Indian |
|
|
|
Individuals / Hindu Undivided Family |
1528425 |
18.09 |
|
Bodies Corporate |
4083474 |
48.33 |
|
|
204812 |
2.42 |
|
|
204812 |
2.42 |
|
Sub Total |
5816711 |
68.85 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5816711 |
68.85 |
|
|
|
|
|
(1) Institutions |
|
|
|
Financial Institutions / Banks |
200 |
0 |
|
Sub Total |
200 |
0 |
|
(2) Non-Institutions |
|
|
|
Bodies Corporate |
463312 |
5.48 |
|
Individuals |
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
1650126 |
19.53 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
464987 |
5.5 |
|
Any Others (Specify) |
53068 |
0.63 |
|
Non Resident Indians |
52918 |
0.63 |
|
|
150 |
0 |
|
Sub Total |
2631493 |
31.15 |
|
Total Public shareholding (B) |
2631693 |
31.15 |
|
Total (A)+(B) |
8448404 |
100 |
|
|
0 |
0 |
|
(1) Promoter and Promoter Group |
0 |
0 |
|
(2) Public |
0 |
0 |
|
|
0 |
0 |
|
Total (A)+(B)+(C) |
8448404 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Calcium Carbonate and Sorbitol. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Sorbitol (70%) |
MT |
NA |
55000 |
51085.780 |
|
Calcium Carbonate |
MT |
NA |
138000 |
96198.300 |
GENERAL INFORMATION
|
Customers : |
FMCG ·
Colgate Palmolive ·
Hindustan Unilever Limited ·
Wipro Limited ·
ITC Limited ·
Shalimar Paints FOOD ·
Britannia Industries ·
Candico ·
Times Food ·
Yahoo foods ·
Henkel Teroson India Limited PAPER ·
ITC Limited ·
Shree Krishna Paper Mills Limited ·
ABC Paper Limited ·
Century Pulp and Paper Mills Limited PHARMA ·
Cadila ·
Torrent Pharma ·
Sanofi Aventis ·
RPG lifeline sciences FOOT-WEAR ·
Lakhani ·
Bairathi Shoes Limited ·
Relaxo Industries Limited ·
Bata India Limited I.P.B. PLASTICS WITH SCJ PLASTICS ·
Delton Cables Limited ·
Kalinga Cables Limited ·
Vito cables and Flexi tuff Industries Limited ·
Apollo Pipes Limited ·
Prince Pipe PRINTING ·
BASF Construction Chemical India Private Limited ·
U Flex Limited |
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No. of Employees : |
1200 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Shahid and Associates Chartered Accountant |
|
Address : |
Muzaffarnagar, Uttar Pradesh |
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|
|
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Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45000000 |
Equity Shares |
Rs.5/- each |
Rs. 225.000 Millions |
|
250000 |
0% Redeemable Preference Shares |
Rs.10/- each |
Rs. 2.500 Millions |
|
1450000 |
8% Redeemable Preference Shares |
Rs.100/- each |
Rs. 145.000 Millions |
|
|
TOTAL |
|
Rs. 372.500
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8448404 |
Equity Shares |
Rs.5/- each |
Rs. 42.242
Millions |
|
1025000 |
8% Redeemable Preference Shares |
Rs.100/- each |
Rs. 102.500 Millions |
|
|
TOTAL |
|
Rs. 144.742 Millions |
NOTES
RECONCILIATION OF SHARES OUTSTANDING AT THE BEGINNING AND AT THE END OF
YEAR ARE GIVEN BELOW:
|
PARTICULARS |
2011-12 |
|
|
NUMBERS |
RS. IN MILLIONS |
|
|
Equity Shares
outstanding at the beginning of the year |
84,48,404 |
42.242 |
|
Add: Equity
Shares Issued during the year - (b) |
0 |
0 |
|
Less: Equity
Shares bought back/ redeemed during the year |
0 |
0 |
|
Equity Shares
outstanding at the end of the year |
84,48,404 |
42.242 |
(a)
During the year ended 31st March, 2009, the Company
has allotted 21,35,407 Equity Shares of Rs. 5/- each fully paid-up to the share
holders of erstwhile Gulshan Sugars and Chemicals Limited pursuant to the
Scheme of Amalgamation without payment being received in cash.
(b)
During the year ended 31st March, 2011, the Company
has allotted 1,00,697 Equity Shares of Rs. 5/- each fully paid-up to the share
holders of erstwhile Salil Industries Limited pursuant to the Scheme of
Amalgamation without payment being received in cash.
(c)
Terms of Authorised Preference Share Capital has
been changed in last annual general meeting i.e. 25-09-2010 in which Dividend
rate varying from 0% to 10% and redemption period varing from 3rd
year to maximum 15th year from the date of the issue.
(d)
Terms of redemption of 10,25,000 issued Preference
Share @ 100/- each has been fixed, the period of redemption will be 12th year
from the date of its issue on 8% Dividend rate effective from 1st April, 2011.
DETAIL OF SHAREHOLDER HOLDING MORE THAN 5 PERCENT SHARES OF THE COMPANY
AS ON REPORTING DATES ARE GIVEN BELOW:
|
PARTICULARS |
2011-12 |
|
|
NUMBERS OF
SHARES HELD |
PERCENTAGE OF
HOLDINGS |
|
|
Gulshan Holding
Private Limited |
40,83,474 |
48.33% |
|
Dr. C.K. Jain |
9,57,022 |
11.33% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
144.742 |
144.742 |
144.742 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1223.062 |
1070.189 |
938.343 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1367.804 |
1214.931 |
1083.085 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
351.112 |
405.498 |
422.737 |
|
|
2] Unsecured Loans |
37.877 |
37.563 |
57.563 |
|
|
TOTAL BORROWING |
388.989 |
443.061 |
480.300 |
|
|
DEFERRED TAX LIABILITIES |
63.125 |
68.900 |
81.035 |
|
|
|
|
|
|
|
|
TOTAL |
1819.918 |
1726.892 |
1644.420 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1056.748 |
954.181 |
980.402 |
|
|
Capital work-in-progress |
34.356 |
91.654 |
50.581 |
|
|
|
|
|
|
|
|
INVESTMENT |
4.748 |
3.684 |
4.184 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
233.868
|
251.210
|
184.568
|
|
|
Sundry Debtors |
385.236
|
485.132
|
398.728
|
|
|
Cash & Bank Balances |
252.323
|
98.951
|
98.083
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
103.980
|
114.325
|
66.788
|
|
Total
Current Assets |
975.407
|
949.618 |
748.167 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
114.334
|
147.124
|
118.165
|
|
|
Other Current Liabilities |
30.554
|
35.150
|
7.127
|
|
|
Provisions |
106.453
|
89.971
|
37.507
|
|
Total
Current Liabilities |
251.341
|
272.245 |
162.799 |
|
|
Net Current Assets |
724.066
|
677.373
|
585.368
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
23.885 |
|
|
|
|
|
|
|
|
TOTAL |
1819.918 |
1726.892 |
1644.420 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2728.137 |
2587.812 |
2200.921 |
|
|
|
Other Income |
11.186 |
6.898 |
6.580 |
|
|
|
TOTAL (A) |
2739.323 |
2594.710 |
2207.501 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of
Stock-in-Trade |
9.626 |
13.121 |
0.000 |
|
|
|
Cost of
Materials Consumed |
1061.654 |
982.434 |
769.901 |
|
|
|
Employee
Benefits Expenses |
92.218 |
84.471 |
70.536 |
|
|
|
Manufacturing
Expenses |
803.091 |
783.385 |
575.550 |
|
|
|
Other Expenses |
366.489 |
381.054 |
0.000 |
|
|
|
Excise Duty |
0.000 |
0.000 |
117.808 |
|
|
|
Administrative Expenses |
0.000 |
0.000 |
46.268 |
|
|
|
Selling and Distribution Expenses |
0.000 |
0.000 |
257.137 |
|
|
|
Changes in
Inventories |
24.596 |
(24.453) |
16.369 |
|
|
|
TOTAL (B) |
2357.674 |
2220.012 |
1853.569 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
381.649 |
374.698 |
353.932 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
32.745 |
42.732 |
54.649 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
348.904 |
331.966 |
299.283 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
132.796 |
144.184 |
150.259 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
216.108 |
187.782 |
149.024 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
36.977 |
24.790 |
20.101 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
179.131 |
162.992 |
128.923 |
|
|
|
|
|
|
|
|
|
Less |
Prior Period
Expenses |
NA |
NA |
0.198 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
485.870 |
|
|
|
|
|
|
|
|
|
Add |
Balance
brought forward from Amalgamated Company |
NA |
NA
|
10.619 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
150.000 |
|
|
|
Dividend |
NA |
NA |
10.435 |
|
|
|
Tax on Dividend |
NA |
NA |
1.773 |
|
|
BALANCE CARRIED
TO THE B/S |
NA
|
NA |
463.006 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
313.176 |
304.152 |
170.402 |
|
|
TOTAL EARNINGS |
313.176 |
304.152 |
170.402 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Stores & Spares |
1.173 |
2.544 |
0.319 |
|
|
TOTAL IMPORTS |
1.173 |
2.544 |
0.319 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
20.07 |
19.29 |
15.22 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
|
1st
Quarter |
|
Net Sales |
677.750 |
|
Total Expenditure |
565.800 |
|
PBIDT (Excl OI) |
111.950 |
|
Other Income |
4.900 |
|
Operating Profit |
116.850 |
|
Interest |
15.930 |
|
Exceptional Items |
0.000 |
|
PBDT |
100.920 |
|
Depreciation |
35.160 |
|
Profit Before Tax |
65.770 |
|
Tax |
9.240 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
56.530 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
56.530 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.54
|
6.28 |
5.84
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.92
|
7.26 |
6.77
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.63
|
9.86 |
8.62
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.15 |
0.14
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.51
|
0.65 |
0.59
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.88
|
3.49 |
4.60
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
REVIEW OF OPERATIONS
The Sales and
Other Income for the financial year were Rs 2914.607 Millions (Previous year
Rs. 2761.175 Millions). The Depreciation for the year was Rs 132.796 Millions
(Previous year Rs. 144.184 Millions). The Cash Accruals were Rs. 311.927
Millions (Previous year Rs. 307.176 Millions). The Net Profit after tax was Rs.
179.131 Millions (Previous year Rs.162.992 Millions).
An amount of Rs.
40.000 Millions has been transferred to General Reserve Account. There have
been no material changes and commitments affecting the financial position of
the Company occurred between the end of the financial year and the date of this
report. The Company has not given any shares to any of the employees under
Employees Stock Option Scheme.
The company has no
subsidiary or holding Company. During the year the business and affairs of the
Company have been carried out in its normal course and no significant events
have taken place, which are harmful to the business of the Company. There was
no Buy-back Scheme of shares taken up by the Company during the year.
NEW BUSINESSES
In March 2012, the
Company has set up a new plant for Grounded Calcium Carbonate at Abu Road,
Rajasthan. Further, the facilities for producing the IMFL are being set up at
Boregaon, District Chhindwara Madhya Pradesh and operations of bottling is
expected to commence in August 2012.
MANAGEMENT'S DISCUSSION AND ANALYSIS
Subject is an
industry leader operating in two business segments of inorganic chemicals.
Subject is a market leader in 70% Sorbitol globally and domestic market
leadership besides being a major producer of Calcium Carbonate. Subject has
built these businesses on the platform of strong understanding of chemistry and
intimate knowledge of customer needs. This focus on Chemistry and customer has
helped Subject, develop unique competitive advantages for each of its
businesses. A strong reinforcement of this belief has been recognition by
industry through several awards the Company received during the year.
BUSINESS ENVIRONMENT
FY 2011-12 has
been a challenging year with unprecedented economic uncertainty in Europe,
geopolitical upheaval in the Middle East and a slowing down of economic growth
across Asia. These events had a profound effect on demand and margin outlook
for industrial products in the world. In many ways, they are still feeling the
after-shocks of the financial meltdown of 2008 and 2009 with leading economics
continuing to suffer from low growth and the resultant adverse impact on demand
for most products and services. They have been successful in insulating and
de-risking their portfolio of businesses by following a prudent operating
discipline.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company is
engaged in the business of producing Sorbitol and Calcium Carbonate. Sorbitol
is a water soluble polyhydric alcohol having sweet taste and high stability
besides properties of humectancy and plasticizing. It finds application as
input material in various industrial sectors such as Tooth Paste,
Pharmaceuticals, Vitamin-C, Cosmetics, Paper and Paints etc. Calcium Carbonate
(CaCO3) finds application as input material in various industrial sectors such
as Tooth Paste, Pharmaceuticals, and PVC products, Rubber, Plastic, Polymer,
Cable, Leather, Paper and Paints etc. The Calcium Carbonate Industry comprises
organized and un-organized sectors. The un-organized sector consists of small
and tiny units which are out of the purview of paying Excise Duty etc. The
Company is the single largest producer of Sorbitol and Calcium Carbonate in the
Country in the organized sector, which meets the requirements of all the
customers in the various industries, and the customer's list includes top
corporations in Tooth Paste, Pharmaceuticals, Paper and Paints etc. The
consumer industry i.e. Tooth Paste, Pharma, Cosmetic, Paint etc have shown
growth which may lead to further improved business and margins to the company.
The Sales and Other Income for the financial year were Rs. 2914.607 Millions
(Previous year Rs. 2761.175 Millions). The Net Profits after tax were Rs.
179.131 Millions (Previous year Rs. 162.992 Millions). The Depreciation for the
year was Rs. 132.796 Millions (Previous year Rs. 144.184 Millions). The cash
accruals were Rs. 311.927 Millions (Previous year Rs. 307.176 Millions).
The Company is
proud to bring in India the international trend currently prevalent in the
global paper industry and has set up an India's first Onsite Percipated Calcium
Carbonate (PCC) plant in the paper industry. To meet the increased demand of
Activated Calcium Carbonate (ACC) the Company has also set up an Activated
Calcium Carbonate (ACC) Plant at Ponta Sahib (Himachal Pradesh) heralding a new
era in Calcium Carbonate industry and opening new vistas for growth.
PRODUCT WISE PERFORMANCE
The Company
produces Sorbitol, and Calcium Carbonate. During the year, the company produced
a total of 50700 MT of Sorbitol and sweetner (previous year production of 51086
MT). The sales were at 50660 MT against previous year sales of 51796 MT.
The Company also
produced a total of 83396 MT of Calcium Carbonate against the production of
96198 MT during 2010-11. The sales were 86604 MT against sales of 93805 MT
during 2010-11.
The Company has
taken necessary steps to reduce operational costs such as reduction in power
costs, higher yield etc, which would make the product more competitive. The
customer has shown tremendous confidence in the product quality and service,
which the company would continue to consider its top priority.
OUTLOOK
The Company is
optimistic about its growth prospects in the future. During the year, the
Company explored exports markets for the products and achieved significant business.
It has ambitious plans to capture more new markets to expand the business.
Economic environment provides an opportunity to improve the business climate.
Indian economy with its strong macroeconomic fundamentals, positive investment
climate, encouraging corporate performance and continued institutional support
by foreign institutional investor, is poised for a higher growth.
The outlook for
Sorbitol and Calcium Carbonate industry is encouraging and dependent upon the
growth of the consumer industry. Improvement in overall economic scenario and
replacement of other costly products by Sorbitol and Calcium Carbonate holds
the key for steep growth of Sorbitol and Calcium Carbonate industry. The growth
in industrial output and increase in investment in core and infrastructure
sector should improve the sentiments of Economy. The growth in other sectors
would also follow which in turn would increase the prospects of the company.
Together with the GDP growth, the Company expects a reasonably good demand growth
from various quarters, which in turn would lift the company's future.
FINANCIAL AND OPERATIONAL PERFORMANCE
The Sales and
Other Income for the financial year were Rs. 2914.607 Millions (Previous year
Rs. 2761.175 Millions). The Net Profits after tax were Rs. 179.131 Millions
(Previous year Rs. 162.992 Millions). The Depreciation for the year was Rs.
132.796 Millions (Previous year Rs. 144.184 Millions). The Cash accruals were
higher at Rs. 311.927 Millions (Previous year Rs. 307.176 Millions) The earnings
include an amount of 111.86 lacs (Previous year Rs. 6.898 Millions) as other
Income, which comprised of dividend income of Rs. 0.068 Million and Interest of
Rs. 8.332 Millions. The Company spent an amount of Rs. 31.444 Millions on
Repairs and Maintenance of Plant and Machinery, which were necessitated to
maintain and upgrade the life of the equipments. The resource mobilization of
the Company during the year has been from cash accruals, existing cash and cash
equivalent, increase/ unutilized working capital limits from bank, and
realization and sale of Investment etc. The Company has repaid institutional
dues in time and without delay. The Company declared a dividend @ 25% on equity
shares and 8% on preference share capital of the company. An amount of Rs.
40.000 Millions was transferred to General reserves.
FIXED ASSETS
·
Land and Site Development
·
Building
·
Plant and Machinery
·
Office Furniture and Equipments
·
Vehicles
WEBSITE DETAILS
PROFILE
Subject is an ISO 9001:2008 certified, leading manufacturer of specialty
chemicals:
Starch Derivatives – Sorbitol 70% and Liquid Glucose
Calcium Carbonate - Precipitated, Activated, GCC, WGCC, Paper Grade and
more
Subject has six manufacturing facilities spread across
five states in India and an established sales-distribution network across the
globe. Manufacturing facilities are built over 150 acres of total land area.
Subject has commissioned 10MW co-gen Power Plants at
its various locations and employees over 1500 people.
Focus on quality is maintained through in-house microbiology laboratory,
including HPLC equipment.
Their esteemed client list includes Colgate Palmolive,
Hindustan Unilever Limited, Asian Paints. Company is listed in
Bombay Stock Exchange and is consistently dividend paying.
FINANCIAL
HIGHLIGHTS
·
Subject is listed in Bombay
Stock Exchange. Company has been consistently paying dividend
at the rate of 25% on face value of equity share.
·
Subject has attained Compounding Annual Growth Rate
(CAGR) of
15% since 2007.
·
In 2012, company’s turnover exceeds USD 60 million.
·
Subject has maintained EBDITA
over 16%
MANAGEMENT
DR. CHANDRA KUMAR JAIN, CHAIRMAN CUM MANAGING DIRECTOR (CMD)
Subject is conceived and promoted by Dr. C.K. Jain, who is a Sugar Technologist
and has been awarded a Doctorate Degree in Chemistry. He has incredible
administrational skills and more than 36 years of valuable experience of
indigenizing, developing and operating the specialty chemical industry
successfully. He is also promoter of Gulshan Mercantile Urban Co-operative Bank
Limited (GMUCB). Apart from business activities, Dr. Jain is an active
philanthropist.
MR. ASHWANI KUMAR VATS, WHOLE TIME DIRECTOR
Mr. Vats, Graduate with P.G. Diploma in Marketing and Management, has a vast
experience in the calcium carbonate industry and has been associated with the
Company for over 3 decades. He is presently designated as Whole Time Director
and is responsible for the operations, business development and marketing of
GPL, as well as day-to-day affairs of the company. Apart from the existing
PCC/GCC business activities, he is also responsible for developing the onsite
PCC business linked to the paper industry.
MR. SURESH KUMAR TEWARI, WHOLE TIME DIRECTOR
Mr. Tewari is M. Tech (Chemical Engineering) from Indian Institute of
Technology, Kanpur, PGD Project and Management from Punjab University, Patiala
(Punjab).He has been associated with GPL since 1989 and is presently designated
as Whole Time Director. He has over 30 years of experience in varied industrial
managing skills including Organics, Fertilizers, Caustic Soda/Soda, Power
House, PCC/GCC, Sorbitol and Distillery. His expertise includes preparation of
project plans and monitoring projects to ensure its execution within the time and
cost parameters. He is a keen strategist and planner with skills in
conceptualizing and effecting process initiatives that enhance plant efficiency
and productivity.
MRS. ARUSHI JAIN, WHOLE TIME DIRECTOR
Mrs. Jain is MS in marketing from City University of New York, USA. She is also
a Baking Technologist from American Institute of Baking, USA. She has been
associated with GPL since 1996 and is currently designated as Whole Time
Director. She is involved in operations and overall management of the company.
Mrs. Jain manages business policies, strategic decisions, business development
and day-to-day affairs of the Starch derivatives plant. She also has experience
in market research and baking industry. She has hosted culinary series on CNBC.
MRS. ADITI PASARI, WHOLE TIME DIRECTOR
Mrs. Pasari is MBA from Cardiff University, UK. She has the experience of
having conceived and set-up a packaging unit in Haridwar, under the umbrella of
GPL. She has been associated with GPL since 2009 and is currently designated as
Whole Time Director. She has supervisory responsibility for Finance and Human
Resources functions and leads various strategic initiatives in the smooth
operation of the company
SHRI K. K. PANDEY, NON-EXECUTIVE AND INDEPENDENT DIRECTOR
Mr. Pandey is a retired Senior Management professional. He has vast experience
and expertise in finance, banking and corporate management. He has played
leadership roles in various fields with his administrative skills during his
active tenure. His timely interventions and suggestions have contributed
significantly to the growth of Gulshan Polyols Limited. He has extensive
advisory experience on issues of strategy, driving performance improvement,
organization building and human capital development.
MR. AJAY JAIN, NON-EXECUTIVE AND INDEPENDENT DIRECTOR
Mr. Jain is a qualified Chartered Accountant and Company Secretary as well as a
fellow member of The Institute of Chartered Accountants of India and The
Institute of Company Secretaries of India. He has over 25 years of experience
in various facets of corporate management, such as finance, accounting, audit,
taxation and corporate affairs, and also has rich experience in areas of
corporate financing, management, corporate governance, audit, taxation and project
control. His analytical skills have resulted in enhancing the values of
operations.
MR. A.K MAHESHWARI, NON-EXECUTIVE AND INDEPENDENT DIRECTOR
Mr. Maheshwari is a qualified Chartered Accountant and Company Secretary as
well as a fellow member of The Institute of Chartered Accountants of India and
The Institute of Company Secretaries of India. He has more than 25 years of
rich experience in various Industries like Banking, Electronics, Iron and
Steel, Chemicals and Infrastructure (Power). He has held senior positions and
handled the entire gamut of Finance, Project Finance, Banking, Accounts,
Taxation, Legal and Statutory Compliances etc. He has been associated with GPL
for more than 16 years. He has worked in senior positions in Jindal, Indiabulls
and Bajaj Group. His advisory skills have appreciably contributed to the
success of the company.
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. 54.99 |
|
|
1 |
Rs. 87.21 |
|
Euro |
1 |
Rs. 70.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
53 |
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.