MIRA INFORM REPORT
|
Report Date : |
03.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
CARBORUNDUM UNIVERSAL LIMITED |
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Registered
Office : |
Parry House, 43 Moore Street, Chennai – 600001, Tamil Nadu |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
21.04.1954 |
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Com. Reg. No.: |
18-000318 |
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Capital
Investment / Paid-up Capital : |
Rs.187.400
Millions |
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CIN No.: [Company Identification
No.] |
L29224TN1954PLC000318 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEC00173F |
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PAN No.: [Permanent Account No.] |
AAACC2474P |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacture of Coated and Bonded Abrasives in |
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No. of Employees
: |
4704 (Approximately) The total staff on rolls, of the Company (including joint ventures and subsidiaries) was 4704 with 2552 people in India. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
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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 25500000 |
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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 a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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 |
CRISIL |
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Rating |
A1+ (Short Term Debt) |
|
Rating Explanation |
Very Strong degree of safety and lowest
credit risk. |
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Date |
07.12.2011 |
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Rating Agency Name |
CRISIL |
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Rating |
A1+ (Bank Guarantee) |
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Rating Explanation |
Very Strong degree of safety and lowest
credit risk. |
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Date |
07.12.2011 |
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Rating Agency Name |
CRISIL |
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Rating |
AA+ (Cash Credit) |
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Rating Explanation |
High degree of safety and very low credit risk.
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|
Date |
07.12.2011 |
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 : |
Parry House, 43 Moore Street, Chennai-600001, Tamil Nadu, India |
|
Tel. No.: |
91-44-25211652/ 25306789/ 42216789/ 30006199 |
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Fax No.: |
91-44-25230706/ 42216149 |
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E-Mail : |
mmm@cumiho.rpgms.ems.vsnl.net.in |
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Website : |
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Factory : |
a) 655,
Thiruvottiyur High Road, P B No.2272, Tiruvottiyur, Chennai – 600019,
Tamilnadu, India Tel : 91-44-3924
9000 / 9001, Fax : 91-44-2573
0717 b) Plot No.48,
SIPCOT Industrial Complex, Hosur - 635126, Dharmapuri District, Tamilnadu, India Tel:
91-4344-304000/304067/304068, Fax:
91-4344-277060 c) Gopalpur
Chandigarh, P.O. Ganga Nagar, Kolkata - 700 132, West Bengal, India Tel :
91-33-32023243, Fax :
91-33-25386331 d) C-4 and C-5,
Kamarajar Salai, MMDA Industrial Complex, Maraimalai Nagar 603209
Kancheepuram District, Tamilnadu, India Tel :
91-44-30006301 / 6302 Fax :
91-44-27453097 e) F-1/2, F2 -
F5, SIPCOT Industrial Park, Pondur “A” Village, Sriperumbudur - 602105.
Kanchipuram District, Tamilnadu, India Tel:
91-44-30006400/6401, Fax :
91-44-30006410 f) K3, ASAHI
Industrial Estate, Latherdeva Hoon, Mangalore Jhabrera Road, PO Jhabrera
Tehsil Roorkee, District Hardwar
247667, Uttranchal, India Tel:
91-1332-398335, Fax
91-1332-398325 g) Plot No.77,
Bommasandra, Jigani Link Road, Jigani Industrial Area, Jigani, Bengaluru 526
106, Karnataka, India Tel :
91-80-27839041/42/43/44, Fax :
91-80-27839040 h) PB No.1
Kalamassery, Development Plot P.O, Kalamassery Ernakulam District - 683109,
Kerala, India Tel :
91-484-3023600, Fax :
91-484-2532019 i) PB No. 3
Nalukettu, Koratty 680 308, Trichur District, Kerala, India Tel :
91-480-3023017, Fax :
91-480-2732821 j) Bhatia Mines,
Bhatia Western Railway, District Jamnagar- 361 315, Gujarat, India Tel :
+91-2891-233464 k) P.B No.2 Okha
Port P.O., District Jamnagar- 361 350, Gujarat, India Tel :
91-2892-262063, Fax :
91-2892-262928 l) Plot No.7 and
18, Cochin Special Economic Zone (CSEZ), Kakkanad, Kochi 682037, Kerala,
India Tel : 91-484 –
3023735, Fax 91-484 –
2413376 m) Plot No.47,
SIPCOT Industrial Complex, Hosur, Dharmapuri District 635 126, Tamilnadu,
India Tel :
91-4344-304200/ 304286, Fax :
91-4344-276028 n) Super
Refractories Division, Plot No.102 and 103, SIPCOT Industrial Complex (Phase
II), Ranipet 632 403, Tamil Nadu, India Tel :
91-4172-306700, Fax :
91-4172-244982 o) Super
Refractories Division – Plant 2, Serkaddu Village, Vinnampalli Post, Katpadi
Taluk, Vellore District – 632 516, Tamil Nadu, India Tel : 91- 4172 –
306800/6802, Fax :91- 4172 –
306830 p) Plot Nos.
35,37, 48-51, Adhartal Industrial Estate, Jabalpur - 482 004, Madhya Pradesh,
India Tel :
91-761-3265004 / 5005, Fax:
91-761-2680678 q) Maniyar
Hydroelectric Works, Maniyar P.O., Vadasserikara, Pathanamthitta District 689
662, Kerala, India Tel :
91-4735-274223, Fax :
91-4735-274223 r) 29- Jigani Industrial Area, Jigani – Anekal Taluk, Bengaluru
560105, Karnataka, India Tel : 91-80-27825805 |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. M.M. Murugappan |
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Designation : |
Chairman |
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Date of Birth/ Age : |
56 years |
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Name : |
Mr. K. Srinivasan |
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Designation : |
Managing Director |
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Date of Birth/ Age : |
54 years |
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Name : |
Mr. Subodh Kumar Bhargava |
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Designation : |
Director |
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Date of Birth/ Age : |
70 years |
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Name : |
Mr. T.L. Palani Kumar |
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Designation : |
Director |
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Date of Birth/ Age : |
62 years |
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Name : |
Mr. Sridhar Ganesh |
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Designation : |
Director |
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Date of Birth/ Age : |
61 years |
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Name : |
Mr. Shobhan M. Thakore |
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Designation : |
Director |
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Date of Birth/ Age : |
64 years |
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Name : |
Mr. M. Lakshminarayan |
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Designation : |
Director |
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Date of Birth/ Age : |
65 years |
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Name : |
Mr. Sanjay Jayavarthanavelu |
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Designation : |
Director |
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Date of Birth/ Age : |
43 years |
KEY EXECUTIVES
|
Name : |
Mr. S. Dhanvanth Kumar |
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Designation : |
Company Secretary |
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Management
Committee: |
· K Srinivasan, Managing Director · V Ramesh, President - Abrasives · P L Deepak Dorairaj, Senior Vice President (Operations) - Abrasives · Rajesh Khanna, Senior Vice President - Ceramics · N Ananthaseshan, Senior Vice President - Electrominerals · R Rajagopalan, Senior Vice President - Refractories and Prodorite · M Muthiah, Senior Vice President - Human Resources ·
Sridharan Rangarajan, Chief Financial Officer |
MAJOR SHAREHOLDERS/ SHAREHOLDING PATTERN
(AS ON 30.06.2012)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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|
11650372 |
6.22 |
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|
67241364 |
35.88 |
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|
78891736 |
42.10 |
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Total shareholding of Promoter and Promoter Group (A) |
78891736 |
42.10 |
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(B) Public Shareholding |
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|
19697243 |
10.51 |
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|
22912 |
0.01 |
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|
9541310 |
5.09 |
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|
27877079 |
14.88 |
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|
57138544 |
30.49 |
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|
7397155 |
3.95 |
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|
29151571 |
15.56 |
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|
14002469 |
7.47 |
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|
821703 |
0.44 |
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|
37902 |
0.02 |
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|
8002 |
0.00 |
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|
775799 |
0.41 |
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51372898 |
27.41 |
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Total Public shareholding (B) |
108511442 |
57.90 |
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Total (A)+(B) |
187403178 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
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|
-- |
0.00 |
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|
-- |
0.00 |
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|
-- |
0.00 |
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Total (A)+(B)+(C) |
187403178 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Coated and Bonded Abrasives in India, Besides
Super Refractories, Electro Minerals, Industrial Ceramics and Ceramic Fibres |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
4704 (Approximately) The total staff on rolls, of the Company (including joint ventures and subsidiaries) was 4704 with 2552 people in India. |
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Bankers : |
·
State
Bank of ·
Standard
Chartered Bank ·
Bank
of America ·
The
Hongkong and Shanghai Banking Corporation Limited ·
ABN
Amro Bank N V ·
BNP
Paribas |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
ASV Ramana Tower, 52 Venkatnarayan Road,
T Nagar, Chennai – 600017, Tamilnadu, India |
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Tel No.: |
91-44-66885000 |
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Fax No.: |
91-44-66885050 |
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Direct Holdings : |
·
Net Access ( ·
Southern Energy Development Corporation Limited
[SEDCO] ·
Sterling Abrasives Limited [ ·
CUMI ( ·
CUMI International Limited (CIL) ·
Cellaris Refractories India Limited [CRIL] |
|
|
|
|
Holding Through Subsidiaries : |
·
CUMI ·
CUMI Middle East FZE [CME] ·
CUMI ·
CUMI Abrasives and Ceramics Company Limited ·
Volzhsky Abrasives Works [VAW] [subsidiary’s
subsidiary] ·
Foskor Zirconia (Pty) Limited [FZL] [subsidiary’s
subsidiary] |
|
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Associates : |
Laserwords Private Limited [Laserwords] |
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Joint Ventures : |
·
Murugappa Morgan Thermal Ceramics Limited [MMTCL] ·
Ciria India Limited [Ciria] ·
Wendt India Limited [Wendt] |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Re.1/- each |
Rs.250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
187395562 |
Equity Shares |
Re.1/- each |
Rs.187.400
Millions |
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|
a) Reconciliation of the shares outstanding at the beginning and at the
end of the reporting period
|
Particulars |
31.03.2012 |
|
|
Equity shares
with voting rights |
No of Shares |
Value of shares (Rs. In
Millions) |
|
|
|
|
|
Number of shares at the beginning of the year |
93470993 |
186.940 |
|
Add : Shares issued
against ESOP scheme during the year before “Share-split” |
156022 |
0.320 |
|
Total number of
shares before “Share-split” |
93627015 |
187.260 |
|
|
|
|
|
Number of shares consequent to “Share-split” |
187254030 |
187.260 |
|
Add : Shares
issued against ESOP scheme during the year after “Share-split” |
141532 |
0.14 |
|
Total number of
shares outstanding at the end of the year |
187395562 |
187.400 |
b) The shareholders, at
the Extra-Ordinary General meeting of the Company held on 20th September 2011,
approved subdivision of one equity share of Rs.2/- each into two equity shares
of Re.1/- each.
c) Terms / Rights
attached to Equity Shares
The Company has
only one class of equity shares having a par value of Re 1/- per share.
Each holder of
equity shares is entitled to one vote per share.
For the year ended
March 31, 2012, final dividend of Re.1 per share has been proposed by the Board
of Directors (Previous year Re.1 per share). An interim dividend of Re.1 per
share was declared at the meeting of the Board of Directors held on February 4,
2012 and the same has been paid (Previous year Rs.1.50 per share).
The dividends
proposed by the Board of Directors is subject to approval of the shareholders
in the Annual General Meeting.
Repayment of capital in the event of liquidation will be in proportion
to the number of equity shares held.
d) Details of shares held by shareholders holding more than 5% of the aggregate
share in the Company
|
Particulars |
31.03.2012 |
|
|
|
No of Shares
held |
% of Holding |
|
|
|
|
|
Murugappa Holdings Limited |
55432284 |
29.58% |
|
Nalanda India Fund Limited |
16793362 |
8.96% |
|
Parry Agro
Industries Limited |
-- |
-- |
|
Face value per share |
Re.1/- |
|
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 |
187.400 |
186.940 |
186.710 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6178.540 |
5095.300 |
4101.930 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6365.940 |
5282.240 |
4288.640 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
870.320 |
1557.660 |
2648.060 |
|
|
2] Unsecured Loans |
97.500 |
88.840 |
176.350 |
|
|
TOTAL BORROWING |
967.820 |
1646.500 |
2824.410 |
|
|
Long Term Lease
Liability |
0.000 |
0.000 |
13.940 |
|
|
DEFERRED TAX LIABILITIES |
425.300 |
420.580 |
415.300 |
|
|
|
|
|
|
|
|
TOTAL |
7759.060 |
7349.320 |
7542.290 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3853.290 |
3732.120 |
3457.220 |
|
|
Capital work-in-progress |
272.540 |
142.160 |
330.640 |
|
|
|
|
|
|
|
|
INVESTMENT |
1345.680 |
1640.560 |
1718.360 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1876.880
|
1548.040
|
1191.540
|
|
|
Sundry Debtors |
1847.160
|
1772.180
|
1600.220
|
|
|
Cash & Bank Balances |
104.230
|
78.160
|
61.320
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
703.780
|
520.000
|
429.500
|
|
Total
Current Assets |
4532.050
|
3918.380
|
3282.580
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
791.300
|
834.590
|
720.690
|
|
|
Other Current Liabilities |
1206.580
|
1110.420
|
315.150
|
|
|
Provisions |
246.620
|
138.890
|
210.670
|
|
Total
Current Liabilities |
2244.500
|
2083.900
|
1246.510
|
|
|
Net Current Assets |
2287.550
|
1834.480
|
2036.070
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7759.060 |
7349.320 |
7542.290 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11253.730 |
9252.880 |
7310.100 |
|
|
|
Income from Work Bills and Services |
0.000 |
0.000 |
71.060 |
|
|
|
Other Income |
154.880 |
189.870 |
238.160 |
|
|
|
TOTAL |
11408.610 |
9442.750 |
7619.320 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4283.010 |
3645.810 |
|
|
|
|
Purchases of stock-in-trade |
462.540 |
353.240 |
|
|
|
|
Changes in inventories of finished goods, work-in-process and
stock-in-trade |
(165.380) |
(219.430) |
6180.510 |
|
|
|
Employee benefits expense |
1076.000 |
946.590 |
|
|
|
|
Other Expenses |
3398.660 |
2714.580 |
|
|
|
|
TOTAL |
9054.830 |
7440.790 |
6180.510 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2353.780 |
2001.960 |
1438.810 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
174.200 |
203.380 |
238.690 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
2179.580 |
1798.580 |
1200.120 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
435.530 |
399.880 |
353.420 |
|
|
|
|
|
|
|
|
|
Add/ Less |
Exceptional
Items |
149.880 |
244.660 |
(5.000) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1893.930 |
1643.360 |
841.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
427.220 |
400.780 |
261.570 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
1466.710 |
1242.580 |
580.130 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
1640.260 |
1602.080 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
750.000 |
300.000 |
|
|
|
Tax on Debenture Redemption Reserve |
NA |
31.250 |
31.250 |
|
|
|
Dividend |
NA |
260.450 |
210.670 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
1841.170 |
1640.290 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2414.030 |
1941.800 |
1338.120 |
|
|
|
Royalty |
3.890 |
2.510 |
2.370 |
|
|
|
Dividend and Interest |
24.890 |
30.080 |
30.520 |
|
|
|
Management Fees |
40.870 |
29.780 |
22.470 |
|
|
TOTAL EARNINGS |
2483.680 |
2004.170 |
1393.480 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2156.370 |
1869.920 |
1362.110 |
|
|
|
Components and Spare Parts |
49.950 |
19.220 |
21.840 |
|
|
|
Capital Goods |
128.150 |
171.980 |
130.980 |
|
|
TOTAL IMPORTS |
2334.470 |
2061.120 |
1514.930 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.83 |
6.65 |
6.21 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2012 |
|
Type |
|
|
1st
Quarter |
|
|
|
|
Unaudited |
|
Net Sales |
|
|
2736.500 |
|
Total Expenditure |
|
|
2340.200 |
|
PBIDT (Excl OI) |
|
|
396.300 |
|
Other Income |
|
|
106.400 |
|
Operating Profit |
|
|
502.700 |
|
Interest |
|
|
36.300 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
466.400 |
|
Depreciation |
|
|
121.000 |
|
Profit Before Tax |
|
|
345.400 |
|
Tax |
|
|
84.400 |
|
Provisions and
contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
261.000 |
|
Extraordinary
Items |
|
|
0.000 |
|
Prior Period
Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
261.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
12.86
|
13.16 |
7.61 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.83
|
17.76 |
11.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
22.59
|
21.48 |
12.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.31 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.50
|
0.71 |
0.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.02
|
1.88 |
2.63 |
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 |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
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 |
ECONOMIC OVERVIEW
The global
economic environment, which was tenuous during major part of year 2011, turned
sharply adverse during the second half. Consequently the global growth rate was
only 3.9 per cent compared to 5.3 per cent in the previous year. Sovereign risk
concerns, particularly in the euro area, after effects of the earthquake and
tsunami in Japan, unrest in certain oil-producing countries and downgrading by
rating agencies of the US economy were some of the developments which resulted
in weak global activity.
In India, the
economy grew by 6.9 per cent in 2011-12 (as per Advance Estimates), after
having grown at the rate of 8.4 per cent in each of the two preceding years.
With agriculture and services continuing to perform well, India’s slowdown can
be attributed almost entirely to weakening industrial growth. The index of
industrial production for 9 months grew by only 3.6 per cent compared to 8.2
per cent last fiscal year. During the year, the government found itself in the
heart of managing two conflicting demands viz. managing growth and price
stability. Inflation as measured by the wholesale price index was high during
most part of the current fiscal year. Monetary policy was tightened by the
Reserve Bank of India during the year to control inflation and curb
inflationary expectations.
COMPANY PERFORMANCE
REVENUE
The Abrasives and
Ceramics business registered a strong growth of 20 per cent and 30 per cent
respectively. The performance of the Electro minerals business was sedate
consequent to the lower sales of Brown Fused Alumina.
MANUFACTURING
Manufacturing
teams played a key role, helping the Company in the growth momentum through
effective production planning and order execution. Capacity additions, through
line balancing and establishment of additional lines, came in handy to cater to
the increased demand from customers. Several plants operated at peak
capacities.
Cost of key inputs
witnessed a steep increase resulting in increased cost pressures for the
Indian, Russian and South African operations. Escalation in cost of fuel
impacted profit margins in certain locations. Internal efficiency improvements
were undertaken to offset the cost push.
The operations of
the manufacturing locations in Tamil Nadu, India, came under pressure due to
the precarious power scenario in the state and the regulatory constraints
imposed on use of captive power sources.
PERFORMANCE OF BUSINESS SEGMENT ABRASIVES BUSINESS PROFILE As a consolidated
entity, this business comprises of the following major product groups viz.
bonded abrasives, coated abrasives (including nonwovens), super abrasives
(through a joint venture) and power tools. The operations are carried out
through thirteen manufacturing facilities located in India, Russia, China and
Thailand. The marketing entities located in North America, Middle East, China
and Thailand supports this business in getting an extended customer reach.
Abrasives are used in a wide spectrum of industries, the key among them being automobile,
engineering, fabrication, wood working, home maintenance, construction and
infrastructure. The Company caters to customers located in over fifty countries
through its network of manufacturing facilities and marketing establishments.
It enjoys a leading position in India and Russia.
INDUSTRY SCENARIO The global
industry continues to be led by few players who have a complete portfolio of
abrasive products. There are also a large number of players specializing in
specific categories of abrasives.
The Indian
abrasives industry continues to be largely catered by two leading players.
There are a number of players specializing in select products. The market is
also catered to by imports, particularly from China. On a consolidated basis,
the Company has a leadership position in the Indian markets. Due to the soft
market conditions in many advanced economies, India is becoming the focus
market for major global players resulting in increased competition.
In the domestic
Russian market there are three major players. The Company is the market leader
in vitrified bonded abrasives. Imports service a sizeable portion of the
market.
CERAMICS BUSINESS PROFILE As a consolidated
entity, the ceramics business has three product lines viz. industrial ceramics,
super refractories and anti corrosives. Industrial ceramics business offers
alumina and zirconia products of technical ceramic grades addressing wear and
corrosion protection, electrical insulation, thermal protection and ballistic
protection applications. The super refractories product group supplies fired
and monolithic super refractories, refractory fibre and also refractory design
and installation services addressing the insulation / thermal resistance
requirements of industries. The refractory fibre and refractory design and
installation businesses are addressed through Murugappa Morgan Thermal Ceramics
Limited and Ciria India Limited. The anticorrosives product group offers acid
resistant cements, polymer concrete cells and various other products addressing
the anticorrosion requirements of industries.
The key user
industries for ceramics business are power generation and transmission, coal
washeries, grain handling, sanitary tiles and sanitary ware, ballistic protection,
cement, non ferrous metals, iron and steel industries, carbon black,
insulators, furnace building, glass, petro-chemical and construction
industries.
The operations are
carried out through eleven manufacturing facilities located in India and Russia.
The subsidiaries in Australia, Canada, Middle East, China and South Africa also
support this business in getting an extended customer reach. CUMI Australia
also provides installation cum service facilities.
The Company has
leadership positions in India and Australia and also a key position in Russia.
The Company caters to customers located in over thirty countries.
INDUSTRY SCENARIO
There has been no
material change in the ceramics industry structure in India, which is catered to
by a few major players. CUMI is a market leader in certain market segments. In
Australia, CUMI Australia is one of the leading players in the lined equipment
and industrial ceramic tiles industry. There are about a dozen players in the
industry, most of whom market products imported from China and USA.
The refractory
industry in Russia is a highly fragmented market with several players of varied
sizes. The Company is a minor player in the industry. There was no major change
in the industry structure during the year.
ELECTRO MINERALS BUSINESS PROFILE As a consolidated
entity, the major product groups of this business segment are fused alumina
(comprising brown and white alumina), silicon carbide and fused zirconia. The company
also manufactures a range of ‘specialities’ like semifriable, Azure-S, plasma
powders, etc., for niche markets. The operations are carried out through six
manufacturing facilities located in India, Russia and South Africa. Products
are sold to customers located in over 40 countries. Key user industries for
this business are abrasives, refractories and steel. The business also has a
captive mine and a captive power plant.
INDUSTRY SCENARIO
The market
structure in the global electro minerals business remained largely unchanged
with the Company continuing as one of the leading players in silicon carbide
and fused zirconia. In fused alumina, the company is largely a national player
with customers based in India. The Indian market continues to be catered by two
players. Apart from the domestic players, imported products have a visible
share in the market. There was no major change in the industry structure during
the year.
FINANCE
In India, inflation has been one of the
prime concerns for policymakers and businesses all through the year. Major part
of the financial year witnessed high inflation rates, which resulted in a high
interest rate regime.
During the year, the Company’s cash
generation was strong. Long term external commercial borrowings were repaid as
per the schedule. No new long term borrowings were contracted. The Company
continued to retain its strong credit ratings ‘P1+’ for short-term borrowings
and ‘AA+ Stable’ for long-term borrowings – from CRISIL. In addition, Dun and
Bradstreet awarded ‘D&B Rating 1’ which indicates highest level of credit
worthiness. Healthy relationship was maintained with banks in India and abroad
and all debts were serviced on time.
Capital expenditure program of the year was funded from internal accruals. The Company had mainly resorted to foreign currency six months funding to finance its working capital needs which helped it to enjoy the benefit of lower interest rates. With the Indian entity enjoying a significant natural hedge, a cautious approach was adopted to hedging the remaining exposures.
BUSINESS OUTLOOK
Global growth is projected to drop from
about 4 percent in 2011 to about 3˝ percent in 2012 because of weak activity
during the second half of 2011 and the first half of 2012. However some
re-acceleration of activity is expected during the course of 2012 which is
expected to return growth to about 4 percent in 2013. The euro area is expected
to still remain sluggish as a result of the sovereign debt crisis and a general
loss of confidence, the effects of bank de-leveraging on the real economy, and
the impact of fiscal consolidation in response to market pressures. Because of
the problems in Europe, activity will continue to disappoint for the advanced
economies as a group, expanding by only about 1˝ percent in 2012. Real GDP
growth in the emerging and developing economies is projected to slow from 6Ľ
percent in 2011 to 5ľ percent in 2012 helped by easier macroeconomic policies
and strengthening foreign demand. With the increasing integration of the Indian
economy with the world, economic activity in India will also be impacted by
global developments. As per government estimates the growth rate of real GDP
for 2012-13 is expected to be 7.6% (+/- 0.25) per cent.
Given the above
background, the Company plans to continue to pursue its growth trajectory with
cautious optimism. The threats to growth and profits from the economy and
market place will be suitably addressed and counter balanced through
diversification of end uses, establishing new markets, opening up new customer
relationships, better cost management and operating efficiencies.
EXPORTS
Exports from
India, continued to grow at a rapid pace during the year. The Company
registered a 25 per cent growth, driven by strong performances in industrial
ceramics and abrasives.
The abrasives
business started yielding the benefits of the efforts taken in earlier years
with regard to development of strategic customer relationships and also the
product specific approach adopted for select geographies. As a result, exports
of abrasives increased by 42 per cent to Rs.477 million. Both bonded and coated
abrasives participated in the growth momentum.
International
sales of industrial ceramics grew by 55 per cent, from Rs.635 million to Rs.
983 million. With the state of the art facilities and technologies built up in
recent years, the business was able to make significant in roads into the
global wear ceramics and metallised ceramics markets. The initiatives taken to
establish presence in new markets in China, America and Europe paid rich
dividends resulting in a steady stream of orders.
The refractories
business also registered a 15 per cent growth in exports, aided by the spurt in
export of anticorrosive products and the associated project work. The
electrominerals business, which has been enjoying a good run in exports during
recent years, faced a slow down due to difficult market conditions. The
difficulties in the European economy lead to cuts in subsidies for the
photovoltaic industry resulting in a glut in the market and a downward spiral
in prices. The business managed to retain its major customers backed by
consistent quality and supportive pricing. New markets were also addressed in
China to reduce the dependency of the business on European markets. As a
result, the business managed to maintain exports at previous year levels of
Rs.772 million.
Export development
efforts across businesses was in the form of participation in leading trade shows,
country specific strategies for market entry and development, cultivation of
strategic relationships with large volume buyers, instilling customer
confidence through plant visits and fostering customer intimacy by customizing
products to meet proprietary and demanding specifications of key customers.
The various
approaches adopted during the current year will continue to be pursued next
year to maintain the growth momentum.
FIXED ASSETS
·
Land (Freehold/ Leasehold)
·
Building
·
Plant and machinery
·
Furniture and Fixture
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.52.70 |
|
|
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.