MIRA
INFORM REPORT
|
Report Date : |
21.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
KIRI INDUSTRIES LIMITED (w.e.f 28.03.2011) |
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Formerly Known
As : |
KIRI DYES AND CHEMICALS LIMITED (w.e.f. 10.03.2006) KIRI DYES AND CHEMICALS PRIVATE LIMITED |
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Registered
Office : |
7th
Floor, Hasubhai Chambers, Town Hall, Ellisbridge, Ahmedabad - 380006, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of Incorporation
: |
14.05.1998 |
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Com. Reg. No.: |
04-034094 |
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Capital
Investment / Paid-up Capital : |
Rs. 190.001
Millions |
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|
|
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CIN No.: [Company Identification
No.] |
L24231GJ1998PLC034094 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
AHMK01019E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Dyes, Dyes intermediates and Basic Chemicals. |
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No. of Employees
: |
300
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 15000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track records. There
appears some minor dip in the turnover and major dip in the profitability of
the company. However, networth appears to be satisfactory. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
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 |
FITCH |
|
Rating |
BBB+ Long term rating |
|
Rating Explanation |
This rating indicate that expectation of
default risk are currently low. The capacity for payment of financial
commitments is considered adequate |
|
Date |
30th April, 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 : |
7th
Floor, Hasubhai Chambers, Town Hall, Ellisbridge, Ahmedabad - 380006, Gujarat,
India |
|
Tel. No.: |
91-79-26574371/
72/ 73 / 40237444 |
|
Mobile No.: |
91-9925012884 [Mr. Dhyan V] |
|
Fax No.: |
91-79-26574373/
74 / 25834960 |
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E-Mail : |
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Website: |
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Location : |
Owned |
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Corporate Office/ Factory 1 : |
Dyestuff Division: Plot No. 299/1/A,
299/1/B and 10/8, Near Water Tank, Phase II, GIDC Estate, Vatva, Ahmedabad –
382445, |
|
Tel. No.: |
91-79-25894477/
25835297/ 26730802/ 40237444 |
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Fax No.: |
91-79-25834960/
26769529 |
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E-Mail : |
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Location : |
Owned |
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Factory 2 : |
Intermediates
Division: Block No. 396 / 399/ 403/ 404 EPC Canal Road,, Village: Dudhwada, Karakhadi,
Taluka: Padra, District Vadodara, Gujarat, India |
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Tel. No.: |
91-2662-273444 |
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Fax No.: |
91-2662-273444 |
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E-Mail : |
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Factory 3 : |
Basic Chemicals
Division: Plot No. 552, 566, 567, 569, 570, 571, Village: Dudhwada, Karakhadi,
Taluka: Padra, District: Vadodara, Gujarat, India |
|
Tel. No.: |
91-2662–273724/ 25 |
|
Fax No.: |
91-2662-273726 |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Pravin
Amritlal Kiri |
|
Designation : |
Chairman |
|
Address : |
53, Manek Baug
Society, Ambawadi, Ahmedabad-380006, Gujarat, India |
|
Date of Birth/Age : |
01.11.1945 |
|
Qualification : |
B. Sc.
(Chemistry) |
|
Date of Appointment : |
14.05.1998 |
|
PAN No.: |
AIGPK7830A |
|
|
|
|
Name : |
Mr. Manish
Pravinbhai Kiri |
|
Designation : |
Managing Director |
|
Address : |
53, Manek Baug
Society, Ambawadi, Ahmedabad-380006, Gujarat, India |
|
Date of Birth/Age : |
26.12.1972 |
|
Qualification : |
B. E. (Ele. and
Comm.) MBA. ( |
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Date of Appointment : |
14.05.1998 |
|
|
|
|
Name : |
Mr. Shankar R Patel |
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Designation : |
Whole Time Director |
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|
Name : |
Mr. Ajay J. Patel |
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Designation : |
Non Executive Independent Director (upto 14.08.2012) |
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Qualification : |
M. D. (Radio Diagnosis), D.M.R.D. |
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|
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Name : |
Mr. Keyoor M. Bakshi |
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Designation : |
Non Executive Independent Director |
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Qualification : |
B. Com, LLB, FCS |
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|
Name : |
Ms. Harsha Bangari |
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Designation : |
Nominee Director (Export Import Bank of India) |
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|
Name : |
Mr. V. Anish Babu |
|
Designation : |
Nominee Director (IFCI Limited) (w.e.f. 13.02.2012) |
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Qualification : |
B.Com, F.C.A., A.C.S. |
KEY EXECUTIVES
|
Name : |
Mr. Suresh S. Gondalia |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
Total No. of Shares
|
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9043500 |
47.60 |
|
|
9043500 |
47.60 |
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|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
9043500 |
47.60 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1572766 |
8.28 |
|
|
2093991 |
11.02 |
|
|
3666757 |
19.30 |
|
|
|
|
|
|
2226933 |
11.72 |
|
|
|
|
|
|
1992800 |
10.49 |
|
|
1629745 |
8.58 |
|
|
440318 |
2.32 |
|
|
72848 |
0.38 |
|
|
131140 |
0.69 |
|
|
156327 |
0.82 |
|
|
77934 |
0.41 |
|
|
2069 |
0.01 |
|
|
6289796 |
33.10 |
|
Total Public shareholding (B) |
9956553 |
52.40 |
|
Total (A)+(B) |
19000053 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have
been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
19000053 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Dyes, Dyes intermediates and Basic Chemicals. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Actual Production |
|
Dyes |
Kgs. |
13614080.00 |
|
H Acid |
Kgs. |
3467100.00 |
|
Vinyl Sulphone |
Kgs. |
4341530.00 |
|
Acetanilide Flake |
Kgs. |
2838500.00 |
|
Other Chemicals (Dyes Intermediates) |
Kgs. |
9650805.00 |
|
Sulphuric Acid |
Kgs. |
8263825.00 |
|
Oleum 23% |
Kgs. |
1267300.00 |
|
Oleum 65% |
Kgs. |
3555910.00 |
|
Chloro Sulphonic Acid |
Kgs. |
1311520.00 |
|
Liquid SO3 |
Kgs. |
1089440.00 |
|
Others (Sulphuric Acid Plant) |
Kgs. |
2453040.00 |
GENERAL INFORMATION
|
No. of Employees : |
300
(Approximately) |
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Bankers : |
Ř
State
Bank of India Ř
Bank
of India Ř
Oriental
Bank of Commerce Ř
Export
Import Bank of India Ř
Standard
Chartered Bank Ř
Punjab
National Bank Ř
Indian
Bank |
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Facilities : |
The details of Loans guaranteed by Directors or others are set out
below : (Rs. in
millions)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
V.D. Shukla and Company Chartered Accountants |
|
Address : |
Ahmedabad, Gujarat, India |
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|
Wholly Owned
Subsidiary : |
Ř Kiri
International (Mauritius) Private Limited Ř Dystar Global
Holdings (Singapore) Pte. Limited (formerly known as Kiri Holding Singapore
Private Limited) Ř Synthesis
International Limited Ř SMS Chemicals
Company Limited Ř Kiri Peroxide
Limited |
|
|
|
|
Step down
subsidiary : |
Ř Kiri Investment
and Trading Singapore Private Limited Ř DyStar Colours
Distribution GmbH Ř DyStar Nanjing
Colours Company Limited Ř DyStar Pakistan
(Private) Limited Ř DyStar Singapore
Pte Limited Ř DyStar South
Africa (PTY) Limited. Ř DyStar Taiwan
Limited Ř Color Solutins
International (Shanghai) Company Limited (formerly known as DyStar Textile
Services (Shanghai) Company Limited) Ř DyStar Thai
Limited Ř DyStar UK
Limited Ř DyStar Wuxi
Colours Company Limited Ř PT DyStar
Colours Indonesia Ř Boehme Asia
Limited Ř DyStar –
Anilinas Texteis Lda. Ř DyStar
(Shanghai) Trading Company Limited Ř DyStar Benelux
S.P.R.L. Ř DyStar Chemicals
Israel Limited Ř DyStar China
Limited Ř DyStar de
Mexico, S. de R.L. de C.V. Ř DyStar France
S.A.R.L. Ř DyStar Hispania,
S.L. Ř DyStar India
Private Limited Ř DyStar Industria
e Comercio de Produtos Quimicos Ltda. Ř DyStar Italia
S.r.l Ř DyStar Japan
Limited Ř DyStar Kimya
Sanayi ve Ticaret Limited Ř DyStar Korea
Limited Ř DyStar Boehme
Africa (Pty) Limited Ř Texanlab
Laboratories Private Limited Ř Dystar
(Hangzhou) Chemical Company Limited (formerly known as Boehme Republic of
China (Hangzhou) Chemical Auxiliary Company Limited) Ř DyStar Denim
GmbH Ř DyStar
Acquisition Corporation Ř DyStar Americas
Holding Corporation Ř DyStar LP USA Ř Boehme Filatex
Canada Inc. |
|
|
|
|
Joint Venture : |
Lonsen Kiri Chemical Ind. Limited |
|
|
|
|
Associate
Company : |
Kiri Infrastructure Private Limited |
|
|
|
|
Entity Controlled by Key Managerial
Personnel : |
Unique Dyechem |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 Millions |
|
15,00,00,000 |
Preference Shares |
Rs. 10/- each |
Rs. 1500.000 Millions |
|
|
Total |
|
Rs. 2000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19,000,053 |
Equity Shares |
Rs.10/- each |
Rs. 190.001
Millions |
|
|
|
|
|
The reconciliation
of the number of shares outstanding as at 31.03.2012 and 31.03.2011 is set out
below:
|
Particulars |
31.03.2012 |
|
Number of shares at the beginning |
19,000,053 |
|
Add: Equity Shares issued during the year |
-- |
|
Number of shares at the end |
19,000,053 |
The details of
shareholders holding more than 5% shares as at 31.03.2012 and 31.03.2011 are
set out below:
|
Name of the shareholders |
No. of shares |
% held as at
31.03.2012 |
|
Mr. Pravin Kiri |
7638843 |
40.20 |
|
Mr. Manish Kiri |
1859391 |
9.79 |
|
GMO Emerging Markets Fund |
1231731 |
6.48 |
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 |
190.001 |
190.001 |
150.001 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3600.205 |
3836.099 |
1302.259 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3790.206 |
4026.100 |
1452.260 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4522.464 |
3545.906 |
1557.455 |
|
|
2] Unsecured Loans |
306.428 |
172.100 |
1738.458 |
|
|
TOTAL BORROWING |
4828.892 |
3718.006 |
3295.913 |
|
|
DEFERRED TAX LIABILITIES |
223.119 |
190.838 |
136.850 |
|
|
|
|
|
|
|
|
TOTAL |
8842.217 |
7934.944 |
4885.023 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2953.454 |
2697.367 |
1777.157 |
|
|
Capital work-in-progress |
948.069 |
168.618 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1663.608 |
1433.049 |
1182.673 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1586.736
|
1575.892 |
1454.634
|
|
|
Sundry Debtors |
2659.017
|
2117.541 |
658.653
|
|
|
Cash & Bank Balances |
31.478
|
105.343 |
119.405
|
|
|
Other Current Assets |
134.147
|
127.370 |
13.964
|
|
|
Loans & Advances |
983.061
|
1271.667 |
952.694
|
|
Total
Current Assets |
5394.439
|
5197.813 |
3199.350
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
972.852
|
1032.776 |
780.760
|
|
|
Other Current Liabilities |
1130.907
|
492.158 |
370.524
|
|
|
Provisions |
13.594
|
36.969 |
123.032
|
|
Total
Current Liabilities |
2117.353
|
1561.903 |
1274.316
|
|
|
Net Current Assets |
3277.086
|
3635.910 |
1925.034
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.159 |
|
|
|
|
|
|
|
|
TOTAL |
8842.217 |
7934.944 |
4885.023 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5345.380 |
5724.218 |
3408.468 |
|
|
|
Other Income |
25.028 |
41.608 |
64.927 |
|
|
|
TOTAL |
5370.408 |
5765.826 |
3473.395 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3617.819 |
3240.213 |
|
|
|
|
Purchase of Stock-in-Trade |
146.863 |
916.889 |
|
|
|
|
Changes in Inventories of Finished goods, Work-in-Progress and
Stock-in-Trade |
(106.038) |
(165.584) |
|
|
|
|
Employee Benefits Expense |
214.292 |
135.008 |
|
|
|
|
Administrative Expenses |
89.187 |
47.461 |
|
|
|
|
Manufacturing Expenses |
422.587 |
331.918 |
|
|
|
|
Selling & Distribution Expenses |
112.176 |
120.284 |
|
|
|
|
Prior Period Adjustments |
2.154 |
1.625 |
|
|
|
|
TOTAL |
4499.040 |
4627.814 |
2807.994 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
871.368 |
1138.012 |
665.401 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
523.886 |
438.928 |
205.662 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
347.482 |
699.084 |
459.739 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
302.562 |
186.155 |
117.247 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE EXTRAORDINARY ITEMS AND TAX |
44.920 |
512.929 |
342.492 |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXTRAORDINARY
ITEMS |
218.412 |
128.388 |
6.057 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(173.492) |
384.541 |
348.549 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
62.402 |
54.039 |
99.531 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(235.894) |
330.502 |
249.018 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
946.327 |
665.478 |
455.286 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
16.530 |
12.500 |
|
|
|
Proposed Dividend |
0.000 |
28.500 |
22.500 |
|
|
|
Provision For Dividend Tax |
0.000 |
4.623 |
3.826 |
|
|
|
Debenture Redemption reserve |
80.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
630.433 |
946.327 |
665.478 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
1561.483 |
2397.879 |
1567.756 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
456.264 |
508.664 |
243.364 |
|
|
|
Machinery and Spares |
305.933 |
51.945 |
2.295 |
|
|
TOTAL IMPORTS |
762.197 |
560.609 |
245.659 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(12.42) |
19.86 |
16.60 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
|
|
1st Quarter |
2nd Quarter |
|
Sales Turnover |
1338.870 |
1259.990 |
|
Total Expenditure |
1223.730 |
1200.990 |
|
PBIDT (Excl
OI) |
115.140 |
59.000 |
|
Other Income |
15.110 |
8.610 |
|
Operating
Profit |
130.250 |
67.610 |
|
Interest |
165.290 |
234.220 |
|
Exceptional
Items |
0.000 |
0.000 |
|
PBDT |
(35.040) |
(166.610) |
|
Depreciation |
80.120 |
81.140 |
|
Profit
Before Tax |
(115.160) |
(247.750) |
|
Tax |
0.000 |
0.010 |
|
Provision and Contingencies |
0.000 |
0.000 |
|
Reported PAT |
(115.160) |
(247.760) |
|
Extraordinary Items |
(613.530) |
(465.400) |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
(728.690) |
(713.160) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(4.39) |
5.73
|
7.17
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.25) |
6.72
|
10.23
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.08) |
4.87
|
7.00
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.05) |
0.10
|
0.24
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.83 |
1.31
|
3.15
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.55 |
3.33
|
2.51
|
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 |
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 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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
REVIEW OF STANDALONE PERFORMANCE:
During the year,
the Company has recorded a total income of Rs. 5370.408 Millions as against Rs.
5765.826 Millions; a decrease of 6.86%; the performance was impacted as the
worldwide economy went through turmoil. Across the world, on account of
economic crisis in various countries, demand has gone sluggish and hence we
could see under utilization of our dyes production capacities making the same
as loss making units. Pile up of inventories on lack of demand has also added
to the wounds of the colours business. Profit before Finance Cost,
Depreciation, Tax and Prior period adjustments decreased from Rs. 1139.637
Millions to Rs. 873.522 Millions in the reporting year, a decline by 23.35% as
compared to the previous financial year. The sharp depreciation of Rupee as
against Dollar in FY 2011-12 had added to the adverse impact of the company’s
performance and for the first time in the company’s history it reported a Net
Loss. Out of the total Loss for the year 2011-12 of Rs. 235.894 Millions as
against a Net Profit of Rs. 330.502 Millions in the preceding financial year
2010-11, Rs. 218.412 Millions is on account of forex losses.
INDUSTRY STRUCTURE
AND DEVELOPMENT:
The Chemical
Industry is one of the largest and oldest industries. It is crucial for the
economic development of any country, which provides products and enabling
technical solutions to all sectors of the economy. Global chemical industry has
been growing by 3.6% and is currently valued at $3.4 trillion. There has been
notable transition in the global arena during the last 2-3 decades in chemical
industries with a shifting in production from Europe and USA to Asia specially
in China, India, Taiwan, Thailand and Indonesia. India and China are now
preferred sources for supply of chemicals and related products to the global
market.
The Indian
Chemical Industry is growing annually by 3% with global chemical industry,
hence India is an emerging focus destination for Chemical Industry. The global chemical
companies want to join hands with Indian Business Community. The industry with
a large domestic demand potential as compared to other countries, contributes
more than 3% of the overall GDP and it helps the overall economic growth and
net foreign exchange earnings of the Country. If Indian chemical industries
effectively leverage its strengths and manage challenges, adopt their
strategies with advanced technology, enhance research capabilities, innovate
through backward and forward linkages and utilize production capacities to
ensure reduction in dependence on imports, then it can grow at 11% to reach
size of $224 billion by 2017.
The Company is a
leading global supplier of reactive dyes, dyes Intermediates in various forms
like standardized spray dried/tray dried, powder/granular. The Company is also
the leading supplier of basic chemicals in India and its product caters to the
various industries.
OUTLOOK AND
OPPORTUNITIES:
The global
economic slowdown has forced major players of other markets to divert their
supply to India. As a result, the domestic chemical sector is witnessing the
double impact of sluggish local demand as well as increased competition from
global and domestic players. The Contribution of chemical industry in GDP has
declined since past two years due to country’s inability to build
competitiveness required to meet global challenges, to develop domestic market
and through building latest in house research and development and low cost of
production. India has emerged as a global supplier of dyestuff, intermediates
and other chemicals and the industry is growing with steady demand from
domestic and export markets. However with the intention to take a leap forward,
the industry has to address the issues concerning clean environment and
simultaneously meet competitive pressures from global markets specifically from
its nearest neighbour, China.
The Company is a
leading player in chemicals industry. By virtue of the large scale facilities
and fully integrated operations from manufacturing of basic chemicals, dye
intermediaries and dyes, the Company derives benefits of economies of scales
and quality control. This along with the Company’s wide product range of
colours makes it a preferred partner for sourcing of dyes.
Being vertically integrated
from basic chemicals to dyes has also helped the Company to de-risk variations
in input cost thereby improving margins over a period of time. The Company
believes that its high level of modernization, trained work force and
managerial expertise results in a consistently high level of productivity.
Global buyers
today are increasingly looking to consolidating their sourcing strategy. This
would mean sourcing from fewer countries and fewer vendors. The Company,
therefore, is a preferred vendor because of its size, integrated operations and
modern facilities.
PERFORMANCE OF THE
COMPANY:
STANDALONE
FINANCIAL PERFORMANCE:
On account of
global slow down, depreciation in rupee and high finance cost, performance of
the Company has been affected this year.
i) Net Sales and
Other Income:
During the
financial year, the net sales and other income of the Company have gone down by
6.86% from Rs. 5765.826 Millions to Rs. 5370.408 Millions, which is due to
decrease in export turnover on account of global recession in dyes and
chemicals industries.
ii) Expenditure:
The total
expenditure increased by 1.38% from Rs. 5252.897 Millions to Rs. 5325.488
Millions for the financial year 2011-12. The increase in total expenditure is
mainly attributable to the increase in employee cost, manufacturing and
administrative expenses, financial cost and depreciation. The commissioning of
new plants has increased depreciation of the current year.
iii) Employee
benefit expenses:
During the year,
employee benefit expenses increased by 58.73% from Rs. 135.008 Millions to Rs.
214.292 Millions on account of recruitment of new employees for expansion
project of the Company.
iv) Finance Cost:
During the year,
finance cost increased by 19.36% as compared to the previous financial year.
Increase in finance cost from Rs. 438.928 Millions to Rs. 523.886 Millions was
due to increase in term loans for expansion project and increase in interest
rate by the banks.
v) Manufacturing
Expenses:
During the
financial year, manufacturing expenses increased by 27.32% from Rs. 331.918
Millions to Rs. 422.587 Millions of previous financial year, due to increase in
power and Fuel cost and repair and maintenance cost as compared to that of
previous financial year.
vi) Profit before
Tax and Extraordinary items:
The Profit before
tax and extraordinary items has sharply decreased by 91.24% from Rs. 512.929
Millions to Rs. 44.920 Millions mainly due to increase in employee cost,
manufacturing and administrative expenses, financial cost and depreciation and
decrease in turnover of the Company as compared to the previous financial year.
vii) Loss/Profit
after tax:
During the year,
the Company has incurred a net loss of Rs. 235.894 Millions as compared to net
profit of Rs. 330.502 Millions that of previous financial year, mainly due to
derivatives and forward contract loss of Rs. 218.412 Millions, increase in
finance cost, depreciation, employee cost, manufacturing and administrative
cost and decrease in turnover as compared to the previous financial year.
viii) Non Current
Liabilities:
During the
financial year, the Non current liabilities has increased by 6.53% from Rs.
1753.608 Millions to Rs. 1868.088 Millions on account of issuance of non
convertible redeemable debenture and increase in deferred tax liabilities as
compared to the previous financial year.
ix) Current
Liabilities:
During the
financial year, the current liabilities has increased by 42.62% from Rs.
3717.139 Millions to 5301.276 Millions.
x) Non Current Assets:
The Non current
assets have increased by 25.78% from Rs. 4809.558 Millions to Rs. 6049.233
Millions as compared to the previous financial year mainly on account of
addition of fixed assets of expansion project and investment in subsidiary and
associate concern.
xi) Current
Assets:
The Current assets
has increased by 4.76% from Rs. 4687.289 Millions to Rs. 4910.337 Millions as
compared to the previous financial year mainly on account of increase in trade
receivables.
CONTINGENT LIABILITIES
(Rs. in millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Outstanding Letter of Credits issued by Banks. |
229.822 |
339.167 |
|
Guarantees given by Banks on behalf of the Company for various
purposes. * |
2528.623 |
3386.538 |
|
Corporate Guarantees given by the Company on behalf of the Joint
Venture Company. |
890.000 |
890.000 |
|
Corporate Guarantees given by the Company on behalf of wholly owned
Subsidiary Company. * |
886.527 |
1000.000 |
|
Disputed Income Tax / Excise matters for various assessment years for
which appeals are pending with Appellate authorities. |
188.644 |
144.352 |
* Out of the
above, the loans availed for Dystar Acquisition have been paid after 31st
March, 2012 in full for which the Company had given corporate guarantees
amounting to Rs. 3393.644 Millions.
FIXED
ASSETS
Ř
Land
Ř
Building
Ř
Plant
and Machinery
Ř
Electrification
Ř
Office
Equipment
Ř
Furniture
and Fixtures
Ř
Vehicles
WEBSITE DETAILS
PROFILE:
Subject, fully integrated manufacturer of Dyes, Intermediates and Chemicals has embedded the culture of enhancing life with the chemistry of colours in KIRI family.
Subject is one of the largest manufacturers and exporters of wide range of
Dyes, Intermediates and Chemicals from India. KIL is an accredited and
certified Key Contract Supplier to world’s top five Dyestuff majors across
Asia-Pacific, the EU and Americas.
Headquartered in Ahmedabad, KIL is an ISO 9001:2008-certified manufacturer
listed on BSE and NSE. A winner of CHEMEXCIL and GDMA performance awards, is a
preferred resource centre for one of the most extensive product lines in
textile dyes.
Subject's two stage backward integration improving stability of the prices of
finished products and improving bottom line of subject compared to other
competitors. Subject is the large batch size producers globally for dyes
manufacturing providing the lower unit cost of production.
Sophisticated quality control facilities and procedures ensuring Internationally
recognized quality of products, and producing the best brands of the world in
the premises has provided competitive advantage of deep penetrations for its
products to diversified markets globally along with multinational companies.
On 4th February, 2010, Subject acquired DyStar Group, through SPV Kiri Holding
Singapore Private Limited.
DyStar Group is the global market leader in Dyes, Dye solutions, Performance
Chemicals, new technologies and custom-manufacture of special Dyes and
Pigments. It provides products and services across the whole value chain in
numerous industrial sectors (apparel, hosiery, automotive, carpets, leather,
home upholstery, industrial fabrics, etc). The acquisition of Dystar, a
multinational German Company having worldwide market share of around 21% has
changed the dynamics, making Subject now a Global Conglomerate and a total
textile solution provider.
BOARD OF DIRECTORS:
Pravin A Kiri:
Promoter and Chairman:
A science graduate and veteran technocrat with 40 years’ leadership experience
in Dyestuffs and Chemical Industries. With highly evolved expertise in organic
structure synthesize of Dyes and Reactive Dyes, he heads manufacturing
activities, operational strategy, quality control and Research and Development
of KIL.
Manish P
Kiri,
Promoter and Managing Director:
An Engineer of Electronics and Communication and Master of Business
Administration from Michigan University, USA, he envisions the company’s future
forays and expansions, designs its marketing strategies and commandeers their
implementation, oversees overall sales and exports, customer relationship
management, expansion and maintenance of sales networks, new projects as well
as expansion plans, environment protection efforts along with sustainable
growth of the company. He was the force behind the company’s recent joint
venture (Lonsen Kiri Chemical Industries Ltd), and acquisition of DyStar (which
he heads today). An active member of the Gujarat Dyestuff Manufacturers’
Association since 2002, he served as its Honorary Secretary for two years, and
as President, for one year.
Shanker R
Patel:
Whole-time Director:
A science and law graduate and experienced Dyes and Chemicals entrepreneur with
30 years in the field. He is the current President of Gujarat Dyestuff
Manufacturers’ Association, and an Executive Committee Member of the Federation
of Industries Association (FIA), Ahmedabad, and the Ahmedabad and Vatva
Industries Association, Ahmedabad. He is also associated with various other
organizations, including the Gujarat Chamber of Commerce and Industries.
Yamal A Vyas:
Non Executive Independent Director:
A commerce graduate and finance expert with 25 years of professional
experience, he is a Fellow Member of the Institute of Chartered Accountants of
India, and an Associate Member of the Institute of Company Secretaries of
India. Also, a member of the Capital Market Sub-committee of the Gujarat
Chamber of Commerce and Industries, and a current managing committee member and
past president of the Ahmedabad branch of the Institute of Chartered
Accountants of India. Besides, he is a prolific writer of newspaper articles on
stock market / investments.
Keyoor M
Bakshi:
Non Executive Independent Director:
A commerce and law graduate with more than 30 years’ experience in Corporate
Law, Finance and Management, he is a practicing Company Secretary, Fellow
Member and past President for the year 2008 of the Institute of Company
Secretaries of India. He specializes in amalgamations, mergers and de-mergers,
acquisitions and takeovers, and corporate restructuring and planning.
Ajay J Patel:
Non Executive Independent Director:
A consulting radiologist with more than 30 years’ experience in Radiology and
international exposure in multidisciplinary fields, he is MD in Radio
Diagnosis, and a Diploma-holder in Medical Radio Diagnosis (DMRD).
Harsha B. Bangari:
Non Executive Independent Director (Nominee Director – Export Import
Bank of India):
A Commerce graduate and a member of The Institute of Chartered Accountants of
India. She joined Export-Import Bank of India (EXIM Bank) in 1995 and is
currently Deputy General Manager working with the EXIM Bank's Corporate Finance
Group handling Foreign Currency Resources of the Bank. Prior to joining the
Corporate Finance Group, she has worked with the EXIM Bank's Corporate Banking
Group handling activities including generation of credit proposals, project
appraisals for plain vanilla products as well as innovative structured financing
deals and the EXIM Bank's Risk Management Group.
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] 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. 54.91 |
|
|
1 |
Rs. 87.38 |
|
Euro |
1 |
Rs. 70.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.