MIRA
INFORM REPORT
|
Report Date : |
28.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
BIRLA PRECISION TECHNOLOGIES LIMITED (w.e.f 04.01.2008) |
|
|
|
|
Formerly Known
As : |
BIRLA KENNAMETAL LIMITED |
|
|
|
|
Registered
Office : |
B-15/4, MIDC Industrial Area, Waluj, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
13.10.1986 |
|
|
|
|
Com. Reg. No.: |
11-041214 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 64.056 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29220MH1986PLC041214 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NSKB01779B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB2046A |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer, Exporter of Industrial
Engineering Goods, Machine Tools. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 47000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealing at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
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 : |
B-15/4, MIDC Industrial Area, Waluj, |
|
Tel. No.: |
91-240-2554300/2554301/2554945 |
|
Fax No.: |
91-240-2554302 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plant Location : |
Tool Holder
Division: B- 15/4, M.I.D.C., Waluj,
Tool Division: B-l5/3/l, M.I.D.C.,Waluj,
Aurangabad- 431133, Maharashtra, India 62/63, M.I.D.C., Satpur, Nashik
- 422007, Foundry Division
: B-l5/3/2, M.I.D.C.,Waluj,
Aurangabad- 431133, Maharashtra, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Yashovardhan Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. M.S. Arora |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. PVR. Murthy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shailesh Sheth |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.S. Adige |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Augustine Kurias |
|
Designation : |
Director |
|
|
|
|
Name : |
Smt. Avanti Birla |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Ms. Lovelina Cecil Faroz |
|
Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
|
|
|
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
80,749 |
0.25 |
|
|
17,293,844 |
54.00 |
|
|
- |
- |
|
|
17,374,593 |
54.25 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
17,374,593 |
54.25 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,222 |
- |
|
|
56,741 |
0.18 |
|
|
57,963 |
0.18 |
|
|
|
|
|
|
6,719,626 |
20.98 |
|
|
|
|
|
|
4,894,358 |
15.28 |
|
|
2,866,753 |
8.95 |
|
|
114,703 |
0.36 |
|
|
857 |
- |
|
|
107,377 |
0.34 |
|
|
6,469 |
0.02 |
|
|
14,595,440 |
45.57 |
|
Total Public shareholding (B) |
14,653,403 |
45.75 |
|
Total (A)+(B) |
32,027,996 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
32,027,996 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Exporter of Industrial
Engineering Goods, Machine Tools. |
||||||||
|
|
|
||||||||
|
Product: |
|
PRODUCTION STATUS As on 31.03.2011
|
Particulars |
Installed
Capacity |
|
Drills |
19067000 |
|
Reamers |
175600 |
|
Taps |
580000 |
|
Cutters |
126400 |
|
Tool
Bits |
422300 |
|
Machine
Tool Accessories |
477600 |
|
Precision
Components |
200000 |
|
|
|
|
Total |
21048900 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
ICICI
Bank ·
Bank
of Maharashtra ·
Bank
of Baroda ·
Oriental
Bank of Commerce |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs. in Millions)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Chaturvedi and Shah Chartered Accountant |
|
Address : |
714-715, Tulsiani Chambers,
212, Nariman Point, Mumbai - 400 021, |
|
|
|
|
Enterprises owned or
significantly influenced by Key Management personnel or their relatives: |
·
Ashok Birla Apollo Hospital Private Limited ·
Asian Distributors Private Limited ·
Birla Bombay Private Limited. ·
Birla Capital & Financial Services Limited ·
Birla Edutech Limited ·
Birla Electricals Limited ·
Birla Energy Infra Limited ·
Birla Global Corporate Private Limited ·
Birla Infrastructure Limited ·
Birla Pacific Medspa Limited ·
Birla Power Solutions Limited ·
Birla Research and Lifesciences Limited ·
Birla Shloka Edutech Limited ·
Birla Surya Limited ·
Birla Transasia Carpets Limited ·
Birla Urja Limited ·
Birla Viking Travels Private Limited ·
Birla Wellness and Healthcare Private Limited ·
Godavari Corporation Private Limited ·
Birla Integrated Textile Park Limited ·
Birla International Private Limited ·
Birla Kerala Vaidyashala Private Limited ·
Birla Lifestyle Private Limited ·
Melstar Information Technologies Limited ·
Nirved Traders Private Limited ·
Shearson Investments and Trading Company Private Limited ·
Zenith Birla (India) Limited ·
Birla Industries Group Charity Trust ·
Khopoli
Investments Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
600000000 |
Equity Shares |
Rs.2/- each |
Rs. 1200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32027996 |
Equity Shares |
Rs.2/- each |
Rs. 64.056 Millions |
|
|
|
|
|
Note:
The reconciliation of the number of shares outstanding is set out below:
|
Equity Shares |
As at 31st
March, 2012 |
|
|
|
No. of Shares |
Rs. In Millions |
|
At the beginning of the year |
32,027,996 |
64.056 |
|
Issued during the year |
- |
- |
|
Outstanding at the end of the year |
32,027,996 |
64.056 |
The Company has
only one class of equity shares having a par value of Rs. 2/- each holder of equity
shares is entitled to one vote per share. The Company declares and pay dividend
if any, in Indian rupees. The dividend proposed if any, by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting.
In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive any of the remaining assets of the Company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
The details of Shareholders holding more than 5% shares:
|
Equity Shares |
As at 31st
March, 2012 |
|
|
|
No. of Shares |
% held |
|
Equity shares of Rs. 2/- each fully paid |
|
|
|
Shearson Investment and Trading Company Private Limited |
8,742,586 |
27.30 |
|
Nirved Traders Private Limited |
2,943,338 |
9.19 |
|
Birla International Private Limited |
2,400,000 |
7.49 |
As per of the
company, including its register of shareholders / members and other
declarations received from shareholders regarding beneficial interest, the
above shareholding represents both legal and beneficial ownerships of shares.
2,06,23,810 Equity
Shares of Rs. 2/- each fully paid up pending allotment to the existing member
of amalgamated company on the record date to be fixed by the Board of Directors
of the Company in view of the scheme of amalgamation of Birla AccuCast Limited
and Birla Machining and Toolings Limited
with the Company
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 |
64.056 |
64.100 |
64.100 |
|
|
2] Share Suspense |
41.248 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1071.866 |
701.700 |
635.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1177.170 |
765.800 |
699.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
288.273 |
239.600 |
248.100 |
|
|
2] Unsecured Loans |
174.876 |
48.000 |
54.900 |
|
|
TOTAL BORROWING |
463.149 |
287.600 |
303.000 |
|
|
DEFERRED TAX LIABILITIES |
30.250 |
19.300 |
2.900 |
|
|
|
|
|
|
|
|
TOTAL |
1670.569 |
1072.700 |
1005.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
525.223 |
378.400 |
429.700 |
|
|
Capital work-in-progress |
36.551 |
47.300 |
37.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
399.660
|
358.700
|
282.900 |
|
|
Sundry Debtors |
458.085
|
346.600
|
280.900 |
|
|
Cash & Bank Balances |
172.442
|
146.000
|
122.400 |
|
|
Other Current Assets |
42.685 |
0.000 |
0.000 |
|
|
Loans & Advances |
649.997
|
130.100
|
107.200 |
|
Total
Current Assets |
1722.869
|
981.400
|
793.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
276.380
|
82.900
|
129.200 |
|
|
Other Current Liabilities |
174.073
|
143.200
|
69.400 |
|
|
Provisions |
163.621
|
108.300
|
56.100 |
|
Total
Current Liabilities |
614.074
|
334.400
|
254.700 |
|
|
Net Current Assets |
1108.795
|
647.000
|
538.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1670.569 |
1072.700 |
1005.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1934.286 |
1068.400 |
791.300 |
|
|
|
Other Income |
87.073 |
22.100 |
12.300 |
|
|
|
TOTAL (A) |
2021.359 |
1090.500 |
803.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
(Increase)/Decrease in
Stock |
(11.689) |
7.800 |
0.200 |
|
|
|
Cost of Raw Materials and
Components Consumed |
737.339 |
0.000 |
0.000 |
|
|
|
Raw Materials Consumed |
0.000 |
311.700 |
289.300 |
|
|
|
Components Consumed |
0.000 |
18.400 |
11.200 |
|
|
|
Purchase of Finished
Goods for Trade |
25.023 |
20.900 |
6.200 |
|
|
|
Manufacturing Expenses |
0.000 |
183.700 |
131.100 |
|
|
|
Employees' Remuneration
and Benefits |
303.301 |
213.400 |
187.300 |
|
|
|
Administrative, Selling
and Other Expenses |
0.000 |
93.500 |
84.000 |
|
|
|
Other Expenses |
604.333 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
1658.307 |
849.400 |
709.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
363.052 |
241.100 |
94.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
78.515 |
31.500 |
24.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
284.537 |
209.600 |
70.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
87.964 |
57.400 |
55.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
196.573 |
152.200 |
15.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
76.042 |
86.300 |
5.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
120.531 |
65.900 |
9.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
419.900 |
354.000 |
127.000 |
|
|
|
|
|
|
|
|
|
Add |
NET SURPLUS FOR THE YEAR
ENDED 31ST MARCH 2010 TRANSFERRED FROM ZENITH BIRLA ( |
0.000 |
0.000 |
42.600 |
|
|
|
|
|
|
|
|
|
Add |
NET
SURPLUS AS PER SCHEME OF ARRANGEMENT OF TOOL DIVISION OF ZENITH BIRLA ( |
0.000 |
0.000 |
174.800 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
540.431 |
419.900 |
354.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of export manufacturing goods |
223.649 |
222.400 |
145.000 |
|
|
TOTAL EARNINGS |
223.649 |
222.400 |
145.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
47.943 |
8.200 |
117.200 |
|
|
|
Stores & Spares |
6.244 |
5.700 |
4.200 |
|
|
|
Capital Goods |
38.962 |
0.000 |
31.100 |
|
|
TOTAL IMPORTS |
93.149 |
13.900 |
152.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic EPS (Rs.) |
3.76 |
2.06 |
0.30 |
|
|
|
Diluted EPS (Rs.) |
2.29 |
2.06 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2012 1st Quarter |
|
Audited /
UnAudited |
|
|
UnAudited |
|
Net Sales |
|
|
441.110 |
|
Total Expenditure |
|
|
370.230 |
|
PBIDT (Excl OI) |
|
|
70.880 |
|
Other Income |
|
|
12.240 |
|
Operating Profit |
|
|
83.120 |
|
Interest |
|
|
18.250 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
64.870 |
|
Depreciation |
|
|
22.180 |
|
Profit Before Tax |
|
|
42.690 |
|
Tax |
|
|
14.230 |
|
Provisions and contingencies |
|
|
0.00 |
|
Profit After Tax |
|
|
28.460 |
|
Extraordinary
Items |
|
|
0.000 |
|
Prior Period
Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
28.460 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.96 |
6.04
|
1.19 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.16 |
14.25
|
1.90 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.74 |
15.51
|
1.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17 |
0.20
|
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.92 |
0.44
|
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.81 |
2.93
|
3.12 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
PERFORMANCE REVIEW
The Sales and Other Income of
the Company for the financial year 2011-12 stood at Rs.2021.359 Millions as
against last year's Rs. 1135.693 Millions. The Profit before tax is increased
to Rs.196.573 Millions as against Rs.152.197 Millions of last year. Profit
after tax stood at Rs.120.531 Millions as against Rs.65.918 Millions of last
year.
SCHEME OF
AMALGAMATION
The Scheme of
Amalgamation between Birla AccuCast Limited (BAL) and Birla Machining and
Toolings Limited (BMTL) with the Company and their respective shareholders has
been sanctioned by the Hon’ble High Court of Bombay on March 30, 2012. The
Scheme has been made effective from May 28, 2012.
The Amalgamation
Committee of the Board of Directors has allotted 2,06,23,760 Equity Shares of Rs.
2/- each on July 20, 2012 to the members of BAL and BMTL in the following
ratios:
BAL, 7 (Seven) Equity shares of the face value of Rs. 2/- each
credited as fully paid up of the Company for every 16 (Sixteen) Equity shares
of the face value of Rs. 10/- each credited as fully paid up held in BAL.
BMTL, 2 (Two) Equity shares of the face value of Rs. 2/- each
credited as fully paid up of the Company for every 3 (Three) Equity shares of
the face value of Rs. 10/- each credited as fully paid up held in BMTL.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL ECONOMY:
During the year, international economic conditions exhibited a marked improvement with the global economy getting into an early recovery mode. The recovery in aggregate demand has been more stable than that of industrial production. GDP for the 50 high-income and developing countries for which quarterly data are available indicates that aggregate demand continued to expand during the last half of 2010 and into the first quarter of 2011 - albeit at a slower and more sustainable pace than earlier. Inflation continued to remain a major concern for the policy makers. But the recent downgrading of US rating and the fears of extremely high national debt in the other European Countries makes the Western outlook cautious. But Indian economy being mostly domestic-growth driven is not likely to be affected much. In fact if the material prices drop because of negative western growth it could be beneficial for India in terms of cheaper imports and could bring down the inflation rate.
INDIAN ECONOMY:
The overall growth of Gross Domestic Product (GDP) at factor cost at constant prices, as per Advance Estimates was 8.5 per cent in 2010-11, representing an increase from the revised growth of 8 per cent during 2009-10.
INDUSTRY STRUCTURE
AND OPPORTUNITIES:
The Company is engaged in the business of manufacturing of wide range of precision cutting tools like masonry drills , TSTD , Taps , Tool bits , Cutters Reamers, AT3 Class tool holders, HSK tooling, Expanding Mandrels and Sleeves besides advanced products like hydro grip and shrink fit CNC tooling. These products are mainly used by automobile and engineering sectors. Tool Holders is an essential accessory for CNC machining centers.
The future of Cutting Tools and Tool Holder industry largely depends on the growth of commercial automobile and general engineering sector. As India is emerging as one of the key auto and engineering centers in the world, the demand for Cutting Tools and Tool Holders will increase.
CONTINGENT LIABILITIES NOT
PROVIDED FOR IN RESPECT OF:
(Rs.
In Millions)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Amount of duty saved under EPCG
Scheme against export obligations |
63.404 |
59.777 |
|
Sales Tax Demands in Appeals |
7.694 |
0.128 |
|
Entry Tax Demands in Appeals |
11.054 |
10.103 |
|
Income Tax Demands in Appeals |
9.976 |
0.000 |
|
Excise and Service Tax Demands in
Appeals |
1.570 |
0.000 |
|
Claim on account of PF not acknowledged
as debts |
0.401 |
0.401 |
|
Bank Guarantees / Letters of Credit |
63..266 |
8.904 |
|
Claims against Company not
acknowledged as debts |
2.088 |
1.200 |
The Scheme of Amalgamation
(SoA) of Birla Accucast Limited (BAL) and Birla Machining and Toolings Limited
(BMTL) with Birla Precision Technologies Limited ( the Company).
All assets and
properties, both movable and immovable, industrial and other licenses, all
other interests, rights and powers of every kind, etc. and all debts, liabilities, duties and
obligations of BAL and BMTL has been transferred to and vested in the Company
retrospectively with effect from 1st April, 2010 (the appointed date). The SoA
has accordingly been given effect to in these accounts.
The amalgamation
of BAL and BMTL with the Company has been accounted as per SoA approved by the
Honorable High Court of judicature at Bombay, vide its order dated, 30th March,
2012. Accordingly the assets, liabilities, debts and obligations of the BAL and
BMTL have been taken over at their book values as on 1st April, 2010 as
stipulated in the SoA. The amalgamation has resulted in transfer of assets,
liabilities, debts and obligations in accordance with the terms of the SoA at
the following summarized values:
|
Particulars |
BAL |
BMTL |
Total |
|
Fixed Assets (Net) |
156.460 |
7.725 |
164.185 |
|
Investment |
0.001 |
0.000 |
0.001 |
|
Capital Work in progress |
3.971 |
94.920 |
98.891 |
|
Current Assets, Loans and Advances |
174.969 |
213.951 |
388.920 |
|
Profit and loss account (Debit balance) |
295.395 |
204.899 |
500.294 |
|
Total Assets |
630.796 |
521.495 |
1152.291 |
|
Less:- |
|
|
|
|
Secured and Unsecured Loans |
197.520 |
17.833 |
215.353 |
|
Current liabilities and Provision |
119.776 |
28.306 |
148.082 |
|
Total Liabilities |
317.296 |
46.139 |
363.435 |
|
Net Assets Transferred |
313.500 |
475.356 |
788.856 |
|
Proposed issue of shares |
25.371 |
15.877 |
41.248 |
|
Transfer from Reserve on account of amalgamation |
|
|
|
|
Capital Reserve |
0.000 |
0.002 |
0.002 |
|
Securities Premium |
23.541 |
186.332 |
209.873 |
|
General Reserve |
0.000 |
169.950 |
169.950 |
|
Amalgamation Reserve |
264.588 |
103.195 |
367.783 |
“As per SoA total
of 2,06,23,810 equity shares of Rs. 2/- each will be issued by Birla Precision
Technologies Limited to the shareholders of BAL and BMTL respectively in the
following ratios:
(a) 7 Equity
shares of Rs. 2/- each of Birla Precision Technologies Limited will be issued
for every 16 Equity shares of Rs.10/- each held in BAL.
(b) 2 Equity
shares of Rs. 2/- each of Birla Precision Technologies Limited will be issued
for every 3 Equity shares of Rs 10/- each held in BMTL.
As per SoA the
debit balance of Profit and Loss account is first adjusted against the
“Amalgamation Reserve Account” and the balance of Rs.132.511 Millions has been
adjusted against the general reserve created post merger of Tools Division of
Zenith Birla (India) Limited. In terms of the SoA, the Equity Shares allotted
as above rank for dividend, voting rights and in all other respects pari-passu
with the existing Equity Shares of the Company. The Income accruing and the
expenses incurred by BAL and BMTL during the period 1st April, 2010 to 31st
March, 2011 being net surplus of Rs.5.878 Millions of BAL and Net deficit of
Rs.3.637 Millions of BMTL, resulting in Net Surplus of Rs. 2.241 Millions has
been adjusted in the statement of profit and loss. During the period between
the appointed date and the effective date (i.e. 28th May, 2012) BAL and BMTL
carried on the existing business in “trust” on behalf of the Company.
The title deeds
for leasehold land, building, licenses, agreements, loan documents, etc. are in
the process of being transferred in the name of the Company. Stamp duty and
other levies out of the SoA, if any, shall be accounted on determination and
completion of transfer formalities.
FIXED ASSETS
Tangible Assets
· Leasehold Land
· Buildings
· Plant and Machinery
· Furniture, Fixtures
· Office Equipments
· Vehicles
Intangible Assets
· Technical Knowhow
· Fee
· Software
AS PER WEBSITE DETAILS
COMPANY PROFILE
Subject the erstwhile Birla Kennametal Limited was
established in 1986, as a joint venture company between YBG and Kennametal Inc, USA In July
2007. YBG acquired the stake of Kennametal in the JV consequent upon which
Birla Kennametal was renamed as Subject. BPT continues to be a primary vendor
of Kennametal worldwide –
Leveraging its core competency of machining, forward integration into machining of precision components and castings was a natural progression and catering to global giants like Cummins, Knorr-Bremse, Husco International.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.26 |
|
|
1 |
Rs.86.23 |
|
Euro |
1 |
Rs.68.64 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.