MIRA
INFORM REPORT
|
Report Date : |
08.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
VISAKA INDUSTRIES LIMITED |
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Registered
Office : |
Velumal Village, R.C. Puram Mandal, Medak District - 502300, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
18.06.1981 |
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Com. Reg. No.: |
01-003072 |
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Capital
Investment/ Paid-up Capital: |
Rs.158.809 Millions |
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CIN No.: [Company Identification
No.] |
L52520AP1891PLC003072 |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacture corrugated cement fiber sheets. |
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No. of
Employees: |
3818 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 11000000 |
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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 well established and reputed company having satisfactory track
record. Financially company has preformed well. Trade relations are reported
to be fair. Business is active. Payments are reported to be regular and as
per commitment. The company can be considered for normal 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
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A+ |
|
Rating Explanation |
Having adequate degree of safety regarding
timely servicing of financial obligation it carry low credit risk. |
|
Date |
April 2010 |
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Rating Agency Name |
CARE |
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Rating |
A1+ |
|
Rating Explanation |
Having very strong degree of safety regarding
timely payment of financial obligation it carry lowest credit risk. |
|
Date |
April 2010 |
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 : |
Velumal Village, R.C. Puram Mandal, Medak District - 502300, |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Corporate Office : |
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Tell No.: |
91-40-27813833/27813835/27892190
to 92 |
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Fax No.: |
91-40-27891833/27813837 |
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Factory 1 : |
A.C. Division Survey No.315, |
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Tell No.: |
91-8455-287740 |
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Factory 2 : |
A.C. Division Behind Supa Gas, |
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Factory 3 : |
A.C. Division Changsole Mouza, Bankibund, G.P.No. 4
Salboni Block, Midnapore West West Bengal – 721 147, |
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Factory 4 : |
A.C. Division – Survey No. 27/1 G. Nagenahalli Village, Kora Hobli Tumkur Taluk &
District |
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Factory 5 : |
A.C. Division Village Kannawan, P.S. Bacharawan Tehsil: Maharaj Ganj, Raibareli
District Uttar Pradesh – 229 301, |
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Factory 6 : |
A C Division Survey No. 179 and 180 Near Kanchikacharla, Jujjuru (Village) Mandal:
Veerula Padu, Krishna District Andhra Pradesh – 521 181, |
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Factory 7 : |
A C Division – 70/3A 70/3, Sahajpur, |
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Factory 8 : |
A C Division – Plot No. 1994,
2006 Khata No. 450, Chaka No. 727, |
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Textile Division: |
Survey No.179 and
180, |
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Tell No.: |
91-7115-239068 |
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Fax No.: |
91-7115-239065 |
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Email: |
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V-Boards and
V-Panels Division: |
Survey No. 95 and
96, Gajalapuram Village, Near Miryalguda P.O. Pedadevullapally Mandal,
Tripuraram Adjacent to Kukkadam Railway Station Nalgonda District Andhra
Pradesh – 508 207, India |
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Marketing
Office: |
Located at : ·
·
Kolkatta ·
Pune ·
·
·
Ernakulam ·
·
· Chennai |
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All |
Eastern Region: Located At: ·
·
·
·
·
Balasore ·
Sambalpur ·
·
Raigada ·
·
Siwan ·
·
Baruipur ·
Siliguri ·
Guwahati ·
Chennai ·
·
Hosur ·
Palakkad ·
Changanacherry ·
Kannur ·
Kollam ·
Mangalore ·
Hubli ·
Chandauli ·
Hathras ·
·
·
Ahmedabad ·
Valsad |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Bhagirat B. Merchant |
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Designation : |
Chairman |
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Name : |
Mr.Dr. G. Vivekanand, M.P. - |
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Designation : |
Vice Chairman |
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Name : |
Mr. P. Abraham, I.A.S. |
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Designation : |
(Retired) - Director |
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Name : |
Mr. V. Pattabhi |
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Designation : |
Director |
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Name : |
Mr. Nagam Krishna Rao - |
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Designation : |
Director |
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Name : |
Mr. Gusti J. Noria - |
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Designation : |
Director |
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Name : |
Mrs. G. Saroja Vivekanand - |
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Designation : |
Managing Director |
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Name : |
Mr. M.P.V. Rao - |
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Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
K.V. Soorianarayanan |
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Designation : |
President (Corporate) and Company Secretary |
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Audit Committee: |
Mr. Bhagirat B. Merchant - Chairman Mr. P. Abraham, I.A.S. (Retired) - Member Mr. V. Pattabhi - Member Mr. Gusti J. Noria - Member Mrs. G. Saroja Vivekanand - Member |
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Remuneration
Committee: |
Mr. Bhagirat B. Merchant - Chairman Mr. P. Abraham, I.A.S. (Retired) - Member Mr.. Nagam Krishna Rao - Member |
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Shareholders
Grievances Committee: |
Mr. Nagam Dr. G. Vivekanand - Member Mrs.. G. Saroja Vivekanand - Member Mr.. M.P.V. Rao - Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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|
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|
5979255 |
37.65 |
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|
5979255 |
37.65 |
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Total shareholding of Promoter and Promoter Group (A) |
5979255 |
37.65 |
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(B) Public Shareholding |
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|
2118 |
0.01 |
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|
199921 |
1.26 |
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|
378198 |
2.38 |
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|
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|
3342629 |
21.05 |
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|
4134794 |
26.04 |
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|
1645320 |
10.36 |
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|
198717 |
1.25 |
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|
2105 |
0.01 |
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|
21712 |
0.14 |
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|
174900 |
1.10 |
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|
9321460 |
58.70 |
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Total Public shareholding (B) |
9901697 |
62.35 |
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Total (A)+(B) |
15880952 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
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Total (A)+(B)+(C) |
15880952 |
100.00 |
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(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacture corrugated cement fiber sheets. |
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PRODUCTION STATUS As on 31.03.2012
|
Particulars |
Installed
Capacity |
|
Cement asbestos products |
7,52,000 MT |
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Flat Products |
48000 MT |
|
Textiles |
28 MTS M/CS |
GENERAL INFORMATION
|
No. of Employees : |
3818 (Approximately) |
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Bankers : |
·
State Bank of ·
State Bank of · IDBI Bank Limited ·
Axis Bank Limited |
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Facilities : |
Rs.
In Millions
Short Term
Borrowing: Working capital Loans from State Bank of India and State Bank of Hyderabad
(under consortium arrangement) are repayable on demand which are secured on
pari-passu basis by hypothecation of the Company's entire movable assets
including stocks, all raw materials, work in- process, stores & spares,
finished goods and book debts, present and future, and personal guarantee of
the Vice-chairman. Unsecured short term loans from banks represent Rs. 332.220 Millions
of buyers credit availed from Kotak Mahindra Bank and HDFC Bank repayable in
six months from the date of availment and Rs.100.000 Millions of short term
loan from YES bank repayable on 30th May, 2012. These loans are backed by the
personal guarantee of Vice-Chairman of the Company.
Long Term
Borrowing: Term Loans are secured by first charge and equitable mortgage on all Immovable properties of the company, both present and future and a first charge by way of hypothecation of all movable assets (save and except book debts), both present and future, subject to prior charges created in favour of the company's Bankers for Working Capital requirements. The loans are also secured by the personal guarantee of the Vice chairman. There are no amounts repayable outstanding beyond 12 months from the balance sheet date. Loans from others represent Rs.10.290 Millions obtained from
Life Insurance Corporation of Deferred payment liabilities represent sales tax deferment relating to Cement Asbestos unit at patancheru. This loan is interest free and repayable at Rs. 20.018 Millions in the year 2019-20 and Rs. 2.107 Millions in the year 2020-21. Public deposits represent deposits accepted from public carrying interest varying from 11% to 12%. The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits which matured and remained unpaid as on the balance sheet date. The company has taken an asset on finance lease which is
repayable on quarterly installment basis. The rate of interest is arrived
based on the periodic lease payments which worked out to 12.66% per annum. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
M. Anandam and
Company Chartered Accountant |
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Address : |
7 ‘A’, S.P. Road,
Secunderabad – 500 003, |
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Other entities
under control: |
Visaka Charitable Trust |
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Aslesha Constructions Private Limited. |
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Associate Company: |
Visaka Thermal Power Limited |
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CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
|
500000 |
12% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
|
|
Total |
|
Rs.350.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15880952 |
Equity Shares |
Rs.10/- each |
Rs.158.810
Millions |
|
79408 |
Add: Shares forfeited
shares |
|
Rs.39.700
Millions |
|
|
|
|
Rs.159.207 Millions |
RIGHTS ATTACHED TO
EQUITY SHARES
The Company has only one class of equity shares having a face
value of Rs.10/- each. Each holder of equity share is entitled to one vote
per share. The Company declares and pays dividends in Indian Rupees. The
dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
The details of
shareholders holding more than 5% shares in the company
|
Name of the
shareholder |
31st
March 2012 |
|
|
|
No. of shares |
% of holding |
|
G Vivekanand |
5768116 |
36.32 |
|
Vigilance Security Services Private Limited |
1411836 |
8.89 |
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 |
159.207 |
159.207 |
159.207 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2705.550 |
2454.302 |
2198.072 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2864.757 |
2613.509 |
2357.279 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
956.616 |
1332.269 |
1165.491 |
|
|
2] Unsecured Loans |
559.513 |
234.519 |
454.858 |
|
|
TOTAL BORROWING |
1516.129 |
1566.788 |
1620.349 |
|
|
DEFERRED TAX LIABILITIES |
254.387 |
229.041 |
119.352 |
|
|
|
|
|
|
|
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TOTAL |
4635.273 |
4409.338 |
4096.980 |
|
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|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2444.451 |
2022.484 |
2077.602 |
|
|
Capital work-in-progress |
39.731 |
82.089 |
91.586 |
|
|
|
|
|
|
|
|
INVESTMENT |
150.585 |
149.668 |
22.982 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1555.492
|
1482.792 |
1166.668 |
|
|
Sundry Debtors |
739.585
|
694.842 |
507.661 |
|
|
Cash & Bank Balances |
538.798
|
538.544 |
608.720 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
269.572
|
414.887 |
782.573 |
|
Total
Current Assets |
3103.447
|
3131.065 |
3065.622 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
547.317
|
449.587 |
560.282 |
|
|
Other Current Liabilities |
429.927
|
465.785 |
11.587 |
|
|
Provisions |
125.697
|
60.596 |
588.943 |
|
Total
Current Liabilities |
1102.941
|
975.968 |
1160.812 |
|
|
Net Current Assets |
2000.506
|
2155.097 |
1904.810 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4635.273 |
4409.338 |
4096.980 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7504.491 |
6541.153 |
6384.100 (Gross Income) |
|
|
|
Other Income |
47.157 |
68.604 |
NA |
|
|
|
TOTAL (A) |
7551.648 |
6609.757 |
NA |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material consumed |
4478.829 |
3707.325 |
|
|
|
|
Purchase of stock in trade |
0.000 |
1.048 |
|
|
|
|
Employee benefits
expense |
418.988 |
335.007 |
|
|
|
|
Other expenses |
1867.104 |
1662.719 |
|
|
|
|
Changes in inventories |
(43.766) |
(45.497) |
|
|
|
|
TOTAL (B) |
6721.155 |
5660.602 |
NA |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
830.493 |
949.155 |
NA |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
141.683. |
102.222 |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
688.810 |
846.933 |
NA |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
176.437 |
164.009 |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
512.373 |
682.924 |
863.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
168.964 |
232.184 |
291.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
343.409 |
450.740 |
572.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
148.900 |
69.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
|
|
|
400.000 |
|
|
|
Dividend on Equity shares |
|
|
79.400 |
|
|
|
Corporate Dividend on tax |
|
|
13.400 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
148.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
600.625 |
410.022 |
263.955 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1751.194 |
1696.767 |
1375.173 |
|
|
|
Components Stores & Spares |
14.262 |
3.381 |
4.932 |
|
|
|
Capital Goods |
31.239 |
14.284 |
23.596 |
|
|
|
Others |
1796.695 |
1714.432 |
1403.701 |
|
|
TOTAL IMPORTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.62 |
28.38 |
36.03 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2012 |
|
|
|
|
1st
Quarter |
|
Net sales |
|
|
2819.980 |
|
Total Expenditure |
|
|
2307.220 |
|
PBIDT (Excl OI) |
|
|
512.760 |
|
Other Income |
|
|
11.760 |
|
Operating Profit |
|
|
524.520 |
|
Interest |
|
|
25.900 |
|
Exceptional terms |
|
|
0.000 |
|
PBDT |
|
|
498.620 |
|
Depreciation |
|
|
49.780 |
|
PROFIT BEFORE TAX |
|
|
448.840 |
|
Tax |
|
|
146.310 |
|
Provision and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
302.530 |
|
Extra ordinary items |
|
|
0.000 |
|
Prior Period Expense |
|
|
0.000 |
|
Net Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
302.530 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.55 |
6.82 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.83 |
10.44 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.24 |
13.25 |
16.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.26 |
037 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.91 |
0.97 |
1.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.81 |
3.21 |
2.64 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Constitution
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
No |
|
No.
of Employees |
Yes |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
Yes |
|
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
PAN
of Proprietor/Partner/Director, if available |
No |
|
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
External Agency
Rating, if available |
Yes |
TEXTILES BUSINESS
Margins: The Company manufactures value-added products, enjoying the highest margins in its segment.
Engineering excellence: The Company successfully produced dyed yarn at speeds higher than the equipment manufacturer’s recommendation.
Scale: The
Company enjoys attractive scale; it possesses the single largest twin airjet
equipment installation in
Standard: The
Company’s products figure in the top five percentile of Uster standards in the
world.
Niche: The Company selected to specialise in the niche segment of a commodity business (polyester spun yarns as well as products from 30s to 76s counts - double yarn).
Productivity: The Company’s twin airjet productivity is quoted as the benchmark by machinery manufactures (Murata of Japan).
Clientele: The Company’s domestic textiles clients comprise brand enhancing names like Siyaram’s,
Pantaloons, Harry’s Collection, Grasim, Donear, and Raymond, among others.
CORPORATE
Business mix: The Company’s business mix – textiles and building products – is generally counter-cyclical. The
Company’s products cater to a wide market, the product mix ranging from roofing to interior solutions.
Gearing: The Company is relatively under-borrowed; its gearing of 0.62 at the end of 2011-12 coupled with an
interest cover of 6 represent adequate fiscal comfort.
Low attrition: The Company enjoys rich experience and stability in its senior management (in excess of 15 years).
Technology: The
Company’s high-tech fibre cement plant is fully automated comprising
sophisticated technology; the yarn manufacturing unit comprises
state-of-the-art twin air-jet spinning technology from
Standards: The Company’s fibre cement plant is certified by the ISI. The V-Board division possesses HPSC
technology conforming to IS 14862- 2000. Visaka’s yarns are environment friendly and ÖEKO-TEX certified. The
Company has been certified for ISO
BUILDING PRODUCTS
DIVISION
Net turnover: `607 crore, 2011-12
Proportion of the Company’s turnover: 82%
CEMENT ASBESTOS
PRODUCTS
The Company’s presence in the building products segment is dominated by cement asbestos products (92% of
revenues), the other segments comprising flat products like V-Boards and V-Panels.
In
compare with alternative materials. For instance, the 24
gauge galvanised iron roofing material (generally considered the superior
product) used to be considerably more expensive earlier, justifying the use of
cement asbestos products. But over the last few years, the pricing difference
has narrowed and yet consumers prefer the latter on account of its superior
features. As a result, the industry grew 7.5% in 2011-12.
Market: Cement
asbestos products represent a convenient intermediate roofing product in rural
and semi-urban
The attractiveness of the space is indicated by its size and
sustainable scope: 70% of
More importantly, the under consumption is positioned to
correct itselfwith speed following the successful implementation of government
programmes like Indira Awas Yojna (allocation was increased 10.75% to `11,075
crore in Budget 2012-13) and Rural Housing Fund (allocation of Rs.40000.000
Millions in Budget 2012-13), placing a larger income in the hands of the rural
Indian.
Portfolio diversification: In a price –sensitive business where the realisation of the end product is largely influenced by the price of competing products, the Company recognised that growth could be derived through a linear increase in the capacity of its principal product (cement asbestos) or a lateral extension into allied (urban-focused) and non allied (industry-focused) segments.
In view of this, the Company diversified into allied products (fibre cement boards, panels, among others used in cladding solutions, roofing, falls ceiling, patricians, among others), extending from a complete dependence on roofing products to building solutions. Besides, the Company graduated its personality from a rural consumer focus to urban and semi-urban marketing to architects, interior decorators, among others following its extension into the manufacture of sandwich panels, and fibre cement boards with the brand name V-Panel and V-Board.
Industry barrier: Even as cement asbestos products appear to be relatively low, entry into this space is restricted by technology, scale, branding and distribution. The conduct of manufacturers is cleared periodically by the Pollution Control Board and Central Environmental Ministry, followed by employee health and safety audits as well as the submission of reports. Over time, the ability of the large manufacturers with their strong balance sheets as well as their ability to create large capacities around a low capital cost per tonne may be considered as
deterrents to fresh industry entrants.
Raw materials:
The raw materials used in the manufacture of cement asbestos products comprise
cement (OPC), white asbestos fibre (chrysotile), wood pulp and fly-ash.
Chrysotile is imported from
Location: Freight
accounts for 10-12% of cement asbestos sales. Over 90% of
Branding and distribution: There is a need to enhance a trust-based visibility considering that the product needs to be purchased across large stretches and accounts for a high proportion of rural income. This makes it imperative for manufacturers to appoint dealers right down to village levels, making it possible to capture every demand upturn.
Seasonality: It has been observed that the April–June quarter is usually the best for the sale of cement asbestos products (followed by the January-March quarter). On the other hand, the July-September quarter is usually the weakest as construction is generally deferred to after the monsoons.
Corporate review
The Company possessed 7,52,000 TPA in installed capacity of
cement asbestos products. The Company’s revenues from this product accounted
for 75% of its total revenue for 2011-12 (73% in 2010-11). The Company retained
its position as the second-largest cement asbestos product manufacturer in
The division set a production target of 7,00,000 MT for 2011-12 and produced 6,54,198 MT as against 5,89,444 MT in 2010-11. The division achieved a capacity utilisation of 94%. Sales increased 12% from 5,83,691 MT in
2010-11 to 6,54,439 MT in 2011-12; market share grew from 16% to 18%.
Strengths
The division continued to deliver superior load bearing capacity over the recommended standard; it exceeded the
ISI requirement of 525 kgs per centimeter square with a performance of 650-700 kgs per centimetre square. The division’s production was supported by a field force of about 120 members servicing the needs of 6,000 plus pan-Indian retailers.
The Company’s products were available even in 5,000-member villages. The Company did not just market products; it provided material in small quantities with a quicker frequency. This made it possible for retailers to store less and enhance their working capital efficiency. The division strengthened its outdoors advertising, influenced decision makers, marketed the ‘perfect shelter’ concept and ensured that retailers had ready material at all times. The division engaged periodically with customers, architects, government engineers and farmers.
Outlook
The division expects to increase
production to 7,25,000 TPA in 2012-13.
FIBRE CEMENT SHEETS
(NON-ASBESTOS) – V-BOARDS AND V-PANELS
Net turnover: Rs.500.000 Millions, 2011-12
Proportion of the division’s revenue: 8%
Overview
In the last few years, the use of flat products (V-Panels and V-Boards) increased on account of their superior price-value over alternatives.
For instance, the market for particle boards and medium
density fibre boards in
enhance demand.
The Company’s building products division manufactures flat
products like V Boards and V-Panels. These products are cement fibre sheets
used wherever particle board and plywood are used in internal structures as
well as external prefab applications. The Company possesses an installed
capacity of 48,000 TPA, the second company in
Highlights, 2011-12
The Company possesses an all-India network of 130 distributors and intends to appoint 50 new distributors in 2012-13.
V-Boards: The production of this non asbestos product (4000 TPM) went on stream in 2008. The raw material of this product comprises cement, fly ash and cellulose fibre. The off take of cement bonded boards grew following enhanced product awareness, shift from timber products (due to advantages of fire, water and termite resistance over plywood and particle boards), higher affordability, maintenance-free, a low erection cost, functional use by carpenters, easy transportability (rather than be mixed on site) and safety in seismic zones.
This division reported its most impressive year in existence. Production increased from 32,254 MT in 2010-11 to 40,047 MT in 2011-12, sales increased from 28,985 MT to 36,377 MT during the period. EBIDTA increased quarter-on quarter and the division transformed from a loss of `343 lakhs in 2010-11 to a profit before tax of `129 lakhs in 2011-12. This turnaround was achieved on account of value engineering, access to new markets, significant increase in exports and an increase in realizations even as raw material costs steadied.
Following this performance, the Company decided to establish a second unit of 72,000 TPA near Pune, which is
expected to be commissioned in April 2013, reinforcing the Company’s position as one the largest producers of
the product in
V-Panels:
This non-asbestos product is ideal for use in interiors as it is created from cement, fly ash and polystyrene beads and positioned as dry wall substitute. The product is ideal for disaster-prone areas, is low on maintenance, enhances interior living area on account of its thinness and is ideal where real estate is expensive. Its weight is lower than bricks, quicker to erect, matches wall strength and axial load. The product is preferred on account of its weight ratio and dry wall concept. It is labour-efficient as it can be erected by a few of individuals. It can be reused at different locations. The Company possesses an installed capacity of 500 panels a day. Its customers comprise GMR, Punj Loyd, Shapoorji Pallonji, Soma Enterprises, TCS, Gujarat Ambuja Port, Eenadu Group, Coastal Projects, Uranium Corporation and Larsen and Toubro, among others. This division reported a modest net revenue of around Rs. 740.000 crore with a negligible loss in 2011-12
TEXTILE
PRODUCTS DIVISION
Net turnover: Rs. 1380.000 Millions , 2011-12
Proportion of the Company’s turnover:18%
Overview
During 2010-11, the cost of cotton fibre reached unprecedented levels due to scarcity. This had a cascading effect on the prices of all textile fibres and prompted a temporary switch to synthetic fibres.
In April 2011, the cotton fibre price crashed, influencing realisations for their synthetic yarns. Buyers held back, prices continued to drop throughout 2011-12 and this affected viability.
Following a 7.4% increase in the global end use demand for textile fibres in 2010, there was virtually no demand
growth in 2011.
Besides, the weakness in the European markets affected the business.
Corporate review
The division’s revenues and profitsdeclined during the year on account of a slowdown in the international markets. The fact that the division reported a reasonable profit is an index of its niche products, quality, efficiency and customer mix. The Company’s revenues from this division accounted for 18% of the total revenue for 2011-12 (22% in 2010-11).
The Company invested in state-of-the-art twin air-jet
spinning technology from Murata (
The Company has the distinction of being the largest global unit
with Murata equipment, reporting one of the highestefficiencies. A high process
control translated into lSO certification in 1995, Star Export House status in
2008. Yarns are environment-friendly and were certified as per demanding OEKO·
The Company’s yarn products are used to manufacture a range
of fabrics including shirting, suiting, fashion fabrics, upholstery and
embroidery laces. Its products are marketed to customers in
The Company’s air-jet yarns enjoy the advantages of low pilling, no singeing, excellent dye pick up, low picks per inch, low weaving cost, low value loss/fresher piece length, perspiration absorption, low shrinkage and smooth appearance value.
Highlights, 2011-12
Average realisations across production increased from `164 per kg in 2010-11 to `178 per kg in 2011-12
The division marketed products to brand-enhancing institutional clients like Siyaram, Pantaloons, Harry’s Collection, Grasim Industries Donear Suitings and Raymond Suitings; the Company also marketed products to weavers manufacturing apparel, suiting, shirting, industrial fabrics, upholstery and curtains
The division enhanced the polyester content in its yarn over expensive fibres like wool, cotton and silk Nearly 31% of the division’s production was exported to customers who converted the yarn into value-added fabrics used in sun umbrellas, Venetian blinds, table linen and automotive fabrics
The division exported to countries including the
The division manufactured nep-free black yarn for the first
time in
The division reported an increase in machine speed, quality and efficiency- a rare combination
Outlook, 2012-13
The global demand for textile fibres is forecast to grow by 3.4% per annum over the 10 years to 2020 to a size of
98.6 million tonnes. Within the total, cotton demand is expected to grow by 2% per annum but non-cotton fibre
demand is expected to grow at over twice that rate – by 4.1% per annum. The share of synthetic fibres will grow from 63.4% to 68.7%.
The global textile and clothing trade is expected to grow at a CAGR of 6.6% and reach USD 1 trillion by 2020.
While the export of textiles and clothing from China was USD
207 billion, India’s share was only USD 25 billion in 2010 (Source: Textiles
Intelligence). While the cost of labour is increasing in
The decline in cotton prices stopped and cotton fibre is stable. With the current forecast for a good cotton crop, the cotton fibre fluctuation is expected to moderate, which is expected to stabilize the yarn markets.
More importantly, the changing demographics with a rising share of adult users in affluent developing countries are strengthening the demand for textiles. The division expects to increase the customer base and enhance its presence in the technical textile segment, launch new products and enhance value addition with a corresponding increase inrealisations.
Cement Asbestos
Business:
Industry Structure
and Developments:
This industry is more than 74 years old industry in
Cement asbestos Products continue to be in demand because of the industry’s effort in making in roads into rural markets, its affordability, and other qualities such as corrosion resistance, weather and fire proof nature.
Currently there are 20 entities in the Industry with about 68 manufacturing plants throughout the Country. The products are marketed under their respective brand names mainly through dealers for the retail market and directly for projects and government departments. The total production for the year 2011 - 2012 was estimated at 4.800 Millions metric tones. The industry demand as measured by the total sales of the industry has been growing considerably over the years, the growth for the last year is about 7.5%.
Outlook:
Since many new entrants have come competition has become accute.
Boards Division
The total production for the period ended March 2012 was 40047 Metric tonnes as against production for the year ended March, 2011 of 32254 Metric Tonnes, and sales for the year ended on 31st March, 2012 was 36377 Metric Tonnes (including export of 16966 Metric Tonnes) as against 28985 (including export of 5274) Metric Tonnes for the previous year. The net turnover from this division was Rs.424.000 Millions for the year ended 31st March 2012 compared to Rs. 283.800 Millions in the previous year.
Outlook
The market characteristics for cement boards over the coming year look positive because of intense construction activity and shift of consumers from particle boards and plywood to cement reinforced sheets. Export market is also growing. In short this is a product of the future.
Sandwiched Panel Unit
Sandwiched Panels are in demand in the market, for use as Partition Material. The ‘Reinforced Building Board Sandwiched Panels’ are made of two fibre-reinforced cement sheets enclosing a lightweight core. These panels are fully cured at factory and are ready for installation. These panels are cheaper compared to masonary partitions / wood partitions and are also easy to fix and takes comparatively less time for installation.
The production during the year was 5957 metric tonnes as against 5040 during the previous year. Sales was 5279 metric tonnes as against 4473 metric tonnes during the previous year. The net Sales Turnover was Rs.74.009 Millions as against Rs.56.289 Millions during the previous year.
Synthetic Yarn
Business:
Industry Structure
and Developments:
The demand for Synthetic Yarn was dull during the year 2011–2012.
Outlook
Overall, the spinning Division expects to do well in 2012-13compared to the previous year due to stable raw material prices without undue fluctuation. Increased domestic consumption and weakened Indian Rupee should add up to a better performance.
Production and Sales
Volumes:
The production in the spinning unit during the year 2011 – 2012 was 8030 metric tonnes as compared to 8733 metric tones during the previous year. The sales were 7717 metric tonnes of yarn (including export of 2416 metric tonnes) during the year 2011 - 2012 as compared to 8750 metric tonnes (including export of 2363 metric tonnes) in the previous year.
Financial
Performance:
The net turnover of this division during the Current Year was Rs.1374.500 Millions compared to `143.27 during the previous year.
Internal Control
Systems and their Adequacy:
The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable Financial and Operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with roper authorization and ensuring compliance of internal policies. The Company has a well defined delegation of power with authority limits for approving revenue as well as capital expenditure. Processes for formulating and reviewing annual and long term business plans have been laid down to ensure adequacy of the control system, adherence to the management instructions and legal compliances. The Company uses ERP (Enterprise Resource Planning) system to record data for accounting and
connects to different locations for efficient exchange of information. This process ensures that all transaction controls are continually reviewed and risks of inaccurate Financial Reporting, if any, are dealt with immediately.
Material developments
in human resources industrial relations front:
The Company believes that Human Resource is its most valuable resource which has to be nurtured well and equipped to meet the challenges posed by the dynamics of Business Developments. The Company has a policy of continuous training of its employees both in-house as well as through reputed Institutes. The staff is highly motivated due to good work culture, training, remuneration packages and the values, which the company maintains.
The total number of people employed in the company as on 31.03.2012 is 3818. The Directors would like to record their appreciation of the efficient and loyal service rendered by the Company’s employees
FIXED ASSETS:
· Land Buildings
· Plant and Equipment
· Furniture and Fixtures
· Office Equipment Vehicles
· Data processing Equipment
AS PER WEB SITE
DETAILS
Profile
Subject was established in 1981 to manufacture corrugated cement fiber
sheets. With the initial production capacity of of 36,000 tons per year, the
first factory in Patancheru, Andhra Pradesh commenced the commercial production
of the cement sheets in 1985
The company diversified into textile yarn manufacturing in 1992. Visaka
took the unknown Airjet spinning technology as a challenge and successfully
established the factory in
With focus on growth plan, the company has now grown to the
position of second largest cement sheet manufacturer in
The spinning plant, with 28 MURATA Twinjet spinning machines, is the
world's largest installation of its kind, producing about 9,000 tons of yarns
per annum.
The non-asbestos fiber board and panel division was established in the
year 2009 to cater to the needs of modern construction designs. This division
has a capacity of producing 30,000 tons of sheets per year.
Visaka's turnover has touched Rs.6000.000 Millions during the financial year 2008-09.
For the last 25 years, Visaka has been steadily growing and has been
consistently paying dividends to its share holders. Visaka has been prompt in
repaying its debts to all the banks. Visaka continues its corporate social
responsibility and provides health, water and education to the
under-privileged.
Visaka's dedicated employees with commitment continue to shoulder the
successful operations of the company. The company is driven by established
processes and systems. There is no compromise on quality at any point of time.
Their continuing customers since the day of company's inception are the
testimony for Visaka's commitment to customers.
The company has further growth plans on its anvil and will continue to grow in the years to come.
MANAGEMENT:
Dr.G.Vivekanand is the promoter Vice Chairman of the company. Mrs.
Saroja Vivekanand is the promoter Managing Director of the company. The other
members of the board are:
Mr.B.B. Merchant is the non executive chairman of the company and is in
the board since 1983. Mr.Merchant is a Fellow of the Institute of Chartered
Accountants of India and was the president of the Bombay Stock Exchange
Mr.Abraham is retired I.A.S officer. He served the Government as
Commissioner of Industries Andhra Pradesh, Chairman, Maharashtra Electricity
board and was Secretary in ministry of power. He also worked for the Defence
and environment ministry.
Mr.V.Pattabhi is an independent consultant having 40 years of experience
in the cement sheet industry and retired Executive Vice President of
Mr.Gusti Noria is the Managing Director of Normak Fashions Limited.,
manufacturers of “Estelle” brand artificial jewellary. He is in the board since
2000.
Mr.Nagam Krishna Rao is in the board since 1994. He is a leading
Jewellary merchant in
Mr.M.P.V.Rao has over 35 years of experience in the Technical side of
cement sheets industry. He has been instrumental in economizing the operations
and increasing capacity in their Patancheru and Paramathi units. He has
developed the technology for increasing the productivity per machine to 10,000
tons per year, breaking the myth that a machine can not produce beyond 3000
tons.
The Managing Director is assisted by a team of qualified and experienced
professionals in various functions
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.55.52 |
|
|
1 |
Rs.88.49 |
|
Euro |
1 |
Rs.70.20 |
INFORMATION DETAILS
|
Report Prepared
by : |
BYI |
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 |
NO |
|
--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.