MIRA INFORM REPORT

 

 

 

Report Date :

22.04.2013

 

IDENTIFICATION DETAILS

 

Name :

BALMER LAWRIE AND COMPANY LIMITED

 

 

Registered Office :

Balmer Lawrie House, 21, Netaji Subhas Road, Kolkata – 700001, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

18.02.1924

 

 

Com. Reg. No.:

21-004835

 

 

Capital Investment/ Paid-up Capital:

Rs.162.861 Millions

 

 

CIN No.:

[Company Identification No.]

L15492WB1924GOI004835

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALB00200E

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufactures industrial packaging, barrels and drums, LPG cylinders, greases and lubricants, leather chemicals, functional additives and marine freight containers.

 

 

No. of Employees:

1417 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 2480000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having good track. Financial position of the company is good. Trade relations are fair. Business is active. Payments are regular and as per commitment.

 

The company can be considered good 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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

4/5 Fundamental Grade

Rating Explanation

It mean fundamental company is very strong it also indicate the good performance of the equity market

Date

August 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

Balmer Lawrie House, 21, Netaji Subhas Road, Kolkata – 700001, West Bengal, India

Tel. No.:

91-33-22225322 / 5314 / 2222 5218

Fax No.:

91-33-2248 3768 / 4558 / 2243 4477 / 4478 / 4479

E-Mail :

mukhopadhyay.c@balmerlawrie.com

Website :

www.balmerlawrie.com

 

 

SBU-Industrial Packaging :

149, Jackeria Bunder Road Sewree, Mumbai – 400015, Maharashtra, India

Tel. No.:

91-22-2413 2421

 

 

OFFICE AND PLANT LOCATIONS

 

Industrial Packaging:

Located At

 

·         Mumbai

·         New Delhi

·         Silvassa

·         Chennai

·         Kolkata

·         Asaoti

·         Baroda

·         Chittoor

 

 

Greases and Lubricants

Located At

·         Chennai

·         Kolkata

·         Silvassa

·         Mumbai

·         Kolkata

·         Kolkata

·         Mumbai

·         New Delhi

·         Secund- erabad

·         Vadodara

·         Bengaluru

·         Raipur

·         Chennai

·         Pune

·         Jaipur

·         Indore

 

 

Travel and Tours

Located At

 

·         Ahmedabad

·         Bengaluru

·         Vadodara

·         Hubaneswar

·         Chennai

·         Hyderabad

·         Kolkata

·         Lucknow

·         Mumbai

·         Thiruvanan- thapuram

·         Pune

·         Chandigarh

·         Deharadun

·         Bokaro

·         Port Blair

·         Goa

·         New Delhi

 

 

Logistics Services

Located At

 

·         Kolkata

·         Mumbai

·         New Delhi

·         Bengaluru

·         Chennai

·         Hyderabad

·         Ahmedabad

·         Kochi

·         Coimbatore

·         Karur

·         Lucknow

·         Pune

·         Thiruvanan- thapuram

·         Tuticorin

·         Vlsakha- patnam

·         Gwalior

·         Mangalore

·         Bhuban- eswar

·         Ludhiana

·         Goa

 

 

Performance Chemical:

Located At

 

·         Chennai

·         Delhi

·         Kanpur

·         Ranipet

·         Kolkala

·         Ambur

·         Vaniyambad

 

 

Tea:

·         Kolkata

 

 

Logistics Infrastructure:

Located At

 

·         Kolkata

·         Mumbai

·         Chenna

·         Coimbatore

 

 

Refinery and Oilfield Services:

·         Kolkata

 

 

DIRECTORS

 

AS ON 31.03.2012

 

Name :

Mr. Virendra Sinha

Designation :

Chairman and Managing Director

Date of Birth/Age :

13.07.1955

Qualification :

BA, MBA

Experience :

Has a working experience of 34 years during which he has developed expertise

in Marketing, International Trade especially in understanding operation of multimodal logistics hubs and container freight stations and in General Management.

Date of Appointment :

01.12.2006

 

 

Name :

Mr. Partha S. Das,

Designation :

Govt. Nominee Director

Date of Birth/Age :

16.12.1967

Qualification :

Bachelor of Technology Possesses the qualification of Certified Internal Auditor and Certified Information System Auditor

Experience :

Has a working experience of about 22 years during which he has developed expertise in the functions of audit including performance audit and exploration, distribution and marketing coordination pertaining to petroleum products. He is currently Director Distribution and Marketing Coordination) in the Ministry of Petroleum and Natural Gas.

Date of Appointment :

14.08.2012

 

 

Name :

Mr. K. Subramanyan

Designation :

Director (Finance)

Date of Birth/Age :

17.11.1952

Qualification :

B.Com., ACA

Experience :

34

Date of Appointment :

08.02.1980

 

 

Name :

Mr. Prem  Prakasj Sahoo,

Designation :

Director (Human Resource and Corporate Affairs)

Date of Birth/Age :

07.07.1955

Qualification :

BA (H) MA (PM and IR), LLB

Experience :

34 Years

Date of Appointment :

17.07.1987

 

 

Name :

Mr. Niraj Gupta

Designation :

Director (Service Business)

Date of Birth/Age :

17.07.1955

Qualification :

B.Com (H) ACA

Experience :

32 Years

Date of Appointment :

03.03.1980

 

 

Name :

Mr. Anand Dayal,

Designation :

Director (Manufacturing Business)

Date of Birth/Age :

13.12.1954

Qualification :

BA Dip in Mktg. Mgt.

Experience :

36 Years

Date of Appointment :

01.01.2008

 

 

Name :

Mr. Kashi C Murarka,

Designation :

Independent Director

 

 

Name :

Arun Seth,

Designation :

Independent Director

 

 

Name :

M. P. Bezbaruah,

Designation :

Independent Director

 

 

Name :

P. K. Bora

Designation :

Independent Director

Date of Birth/Age :

01.08.1942

Qualification :

Master Degree in English.

Retired IAS Offi cer.

Experience :

Has a working experience of 40 years during which he gained expertise in Development Administration and Financial Administration as also in Tea and Tourism industries.

Date of Appointment :

24.09.2009

 

Name :

Mr. Asish K. Bhattacharyya

Designation :

Independent Director

Date of Birth/Age :

11.04.1950

Qualification :

Member of the Institute of Chartered Accountants of India and Cost Accountants

of India.

M. Com, D. Phil Diploma in Management

Accounting (ICA).

Experience :

Has a working experience of 39 years during which he has acquired expertise in Accounting, Finance, Business Valuation and Corporate Governance.

Date of Appointment

24.09.2009

 

 

Name :

Mr. Abha Chaturvedi

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Amit Ghosh

Designation :

Company Secretary

Date of Birth.Age :

21.10.1954

Qualification :

B.Com.[Hons] ACA, ACS, LL.B

Experience :

31 Years

Date of Appointment :

13.8.2007 [On Deputation]

 

 

Name :

Mr. K Gopinathan

Designation :

Executive Director [Lubes and Chemicals]

Date of Birth/Age :

01.12.1952

Qualification :

B.Sc.(Engg.) Mech.

Experience :

35 Years

Date of Appointment :

03.07.1980

 

 

Name :

Mr. S Ravikumar

Designation :

Chief Operating Officer [Chemicals and R&D]

Date of Birth/Age :

01.05.1954

Qualification :

B. Tech. [Chem.] ME(Chem.)

Experience :

33 Years

Date of Appointment :

18.11.1983

 

 

Name :

Mr. H K Bhoklay

Designation :

General Manager [Strategic Planning and Jv Co-Ordntn]

Date of Birth/Age :

04.02.1955

Qualification :

B.Sc.(Hons) Agri. PG DIP in Mgmt

Experience :

34 Years

Date of Appointment :

02.05.1978

 

 

Name :

Mr. Ananda Sengupta

Designation :

General Manager [Operations]

Date of Birth/Age :

26.02.1956

Qualification :

BME, PGDBM PGDHRM

Experience :

32 Years

Date of Appointment :

16.07.2001

 

 

Name :

Mr. Murthy Ramkrishna

Designation :

Chief Operating Officer Logistics Infrastructure

Date of Birth/Age :

10.10.1954

Qualification :

B.Sc.(Hons); Ma In Social Sc Dip. PM&IR, LL.B.

Experience :

33 Years

Date of Appointment :

9.6.1980

 

 

Name :

Mr. Prabal Basu

Designation :

Senior Vice President (Finance)

Date of Birth/Age :

18.10.1963

Qualification :

B.Com.[Hons], ACA AICWA, ACS

Experience :

24 Years

Date of Appointment :

4.4.1988

 

 

Name :

Mr. K C Surendran

Designation :

Chief Operating Officer Logistics Services

Date of Birth/Age :

11.6.1953

Qualification :

B. Sc, PG Dip in Matls. Mgmt

Experience :

367Years

Date of Appointment :

2.5.1979

 

 

Name :

Mr. G N Mattoo

Designation :

Senior Vice President [Human  Services]

Date of Birth/Age :

25.02.1954

Qualification :

B. Sc, PG Dip in SW PG Dip Banking Admn MBA

Experience :

34 Years

Date of Appointment :

3.6.1988

 

 

Name :

Mr. Pulak Behari Pal

Designation :

Senior Vice President [Engineering and Projects]

Date of Birth/Age :

10.4.1953

Qualification :

BE (Hons) FIE, PGDBM

Experience :

36 Years

Date of Appointment :

16.09.1985

 

 

Name :

Mr. Pranab KR Ghosh

Designation :

Senior Vice President [new Initiatives]

Date of Birth/Age :

01.06.1953

Qualification :

B.Sc. AICWA

Experience :

38 Years

Date of Appointment :

01.04.1981

 

 

Name :

Mr. Manash Mukhopadhyay

Designation :

Senior Vice President [Information Technology]

Date of Birth/Age :

6.1.1955

Qualification :

B.Sc. (Hons), M. Stat. Dip. in Comp. SC.

Experience :

34 Years

Date of Appointment :

01.06.1993

 

 

Name :

Mr. Biswarup Chakraborti

Designation :

Senior Vice President  [Operations]

Date of Birth/Age :

14.02.1957

Qualification :

BE(Metallurgical) PGD IN SQC Dip. in MGMT

Experience :

31 Years

Date of Appointment :

04.05.1985

 

 

Name :

Pukhraj Sabharwal

Designation :

Chief Operating Officer [Tours and Travel]

Date of Birth/Age :

30.09.1954

Qualification :

BSC. [H], MA Dip in Business Admn Tvl. Course on IATA-UFTAA

Experience :

35 Years

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2012

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of promoter and Promoter Group

 

 

1) Indian

-

-

 

 

 

2) Foreign

-

-

 

 

 

(B) Public Shareholdings

 

 

1) Institutions

 

 

a) Mutual Funds

719847

4.42

b) Financial Institutions/Banks

10426

0.06

c) Central Government / State Government(s)

7485

0.05

d) Insurance Companies

1272103

7.81

c) Foreign Institutional Investors

195462

1.20

 

 

 

2) Non – Institution

 

 

a) Bodies corporate

10658564

65.45

 

 

 

b) Individuals

 

 

i. Individual Shareholders holding nominal share capital upto Rs.0.100 Million

2758169

16.94

ii. Individual Shareholders holding nominal share capital in excess Rs.0.100 Million

490196

3.01

 

 

 

c) Any other

173829

1.07

Director and their relative and friends

609

0.00

Clearing members

19989

0.12

Trusts

2450

0.02

Non resident Indians

150781

0.93

Sub Total (B) (2)

14080758

86.46

(B) = (B) (1) + (B) (2)

16286081

100.00

Total (A) + (B)

16286081

100.00

Shares held by custodians and against which depository receipts have been issued  (C)

-

-

Total (A) + (B) +(C)

16286081

-

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufactures industrial packaging, barrels and drums, LPG cylinders, greases and lubricants, leather chemicals, functional additives and marine freight containers.

 

 

Products :

Item Code No. (ITC Code)

7310.10

Product Description

Steel Drums and Barrel

Item Code No. (ITC Code)

2710.00

Product Description

Grease and Lubricating Oil

Item Code No. (ITC Code)

NA

Product Description

Travel Tours and Logistics

 

 

Brand Name :

BALMEROL

 

 

PRODUCTION STATUS [As on 31.03.2011]

 

Particulars

 

Unit

Installed Capacity

Actual Production

Greases and Lubricating Oils

 

M.T. / K.L.

58080

45486

Barrels and Drums

 

Nos.

4200000

3608719

Blended Tea including Bulk, Packets and Tea Bags

 

M.T.

3000

71

Leather Auxiliaries

 

M.T.

3498

6994

 

Note :

 

(i) Under the Industrial Policy Statement dated 24th July, 1991 and the notifications issued there under, no licensing is required for the Company’s products.

 

(ii) Installed Capacities are as certified by the Management.

 

GENERAL INFORMATION

 

No. of Employees :

1417 (Approximately)

 

 

Bankers :

·         Allahabad Bank

·         Bank of Baroda

·         Canara Bank

·         HDFC Bank Limited

·         Indusind Bank Limited

·         Standard Chartered Bank

·         State Bank of India

·         The Hongkong and Shanghai Banking Corporation Limited

·         United Bank of India

·         Vijaya Bank

 

 

Facilities :

-

 

 

 

Banking Relations :

--

 

 

 

 

Statutory Auditors :

 

Name :

Messrs Vidya and Company

Address :

Centre Point, 21 Hemanta Basu Sarani Kolkata - 700 001

 

 

Branch Auditors :

 

Name :

Messrs Suri and Company.

Address :

No. 4(Old No. 55A) Chevalier Sivaji Ganesan Road (South Boag Road), Thyagaraya Nagar Chennai - 600 017, Tamilnadu, India

 

 

Name :

Messrs Om Prakash S. Chaplot and Company

Address :

101 Vatsalya Co-op Society, Vatsalya Building, Nr. RTO Office RTO Road, Andheri(W) Mumbai 400 053, Maharashtra, India

 

 

Name :

Messrs H. S. Rustagi and Company

Address :

4654/21, Daryaganj, II Floor New Delhi - 110 002, India

 

 

Internal Auditors :

 

Name :

Messrs Haribhakti and Company

Address :

Geetanjali Apartments Flat No. 7G, 7th Floor 8B, Middleton Street Kolkata - 700 071, West Bengal, India

 

 

Wholly owned Subsidiary :
  • Balmer Lawrie (UK) Limited

 

 

Holding Company:
  • Balmer Lawrie Investments Limited

 

 

Joint Venture:

·         Transafe Services Limited (formerly known as Indian Container Leasing Company Limited )

·         AVI-OIL India Private Limited

·         Balmer Lawrie (UAE) LLC

·         Balmer Lawrie-Van Leer Limited 

·         Avi – Oil India [Private] Limited

·         Balmer Lawrie Hind Terminals Private. Limited.

 

 

Subsidiary of Balmer Lawrie Van Leer Limited:

·         Proseal Closures Limited.

 

 

Joint Venture of Balmer Lawrie (UK) Limited :

·         PT Balmer Lawrie Indonesia

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

30,000,000

Equity Shares

Rs.10/- each

Rs.300.000 Millions

 

 

 

 

 

Issued, Subscribed and Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

16,286,081

Equity Shares

Rs.10/- each

Rs.162.861 Millions

 

 

 

 

 

Rights, Preferences and Restrictions attached to Shares

 

The Company has one class of equity shares having a par value of `10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion

to their shareholding

 

Details of Equity Shares held by the Holding Company

 

Particular

31.03.2012

 

Number of shares

%

Balmer Lawrie Investments Limited

10064700

61.80

 

There are no other individual shareholders holding 5% or more in the issued share capital of the company.

 

There has been no movement in the no. of shares outstanding during the year. Further, there has been no change in the number and class of shares issued by the company in the past five year.

 

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

162.861

162.861

162.861

2] Share Application Money

0.000

0.000

0.000

3] Reserves and Surplus

6026.239

5175.499

4456.742

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

6189.100

5338.360

4619.603

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

12.508

76.508

110.008

 

 

 

 

TOTAL

6201.608

5414.868

4729.611

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2280.407

1884.916

1749.743

Capital work-in-progress

57.197

325.812

218.975

 

 

 

 

INVESTMENT

454.225

572.412

439.412

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS and ADVANCES

 

 

 

 

Inventories
1233.509

1193.163
916.969

 

Sundry Debtors
3537.294

3091.899
2446.730

 

Cash and Bank Balances
3163.652

2669.750
2671.658

 

Other Current Assets
52.675

33.142
0.000

 

Loans and Advances
839.252

865.714
904.341

Total Current Assets
8826.382

7853.668

6939.698

Less : CURRENT LIABILITIES and PROVISIONS
 

 

 

 

Sundry Creditors
2252.266

2198.476
3664.244

 

Other Current Liabilities
2068.094

2037.735
74.437

 

Provisions
1096.243

985.729
879.536

Total Current Liabilities
5416.603

5221.940

4618.217

Net Current Assets
3409.779

2631.728

2321.481

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

6201.608

5414.868

4729.611

 

 

PROFIT and LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

 

SALES

 

 

 

 

 

Income

22840.741

20090.793

6608.602

 

 

Trading Goods

-

-

18.111

 

 

Turnkey Project

-

-

79.841

 

 

Services

-

-

9426.736

 

 

Other Income

530.987

408.009

592.557

 

 

TOTAL                                     (A)

23371.728

20498.802

16725.847

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed and Services Rendered

17952.731

15897.594

 

 

 

Purchases of Trading Goods

3.343

31.901

 

 

 

Employee Benefits Expenses

1408.223

1311.350

 

 

 

Other Expenses

1907.343

1382.821

15079.995

 

 

Changes in inventories of Finished Goods, Work-in-Progress and Trading Goods

(1.320)

(101.591)

 

 

 

TOTAL                                     (B)

21270.320

18522.075

15079.995

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

2101.408

1976.727

1645.852

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

46.920

45.062

-

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2054.488

1931.665

1645.852

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

151.761

121.277

116.062

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1902.727

1810.388

1529.790

 

 

 

 

 

Less

TAX                                                                  (H)

0.522

599.500

356.870

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1380.727

1210.888

1172.920

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2075.276

1656.518

1220.391

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

 

300.000

300.000

 

 

Proposed Final Dividend

NA

423.438

374.580

 

 

Corporate Tax on Dividend

 

68.692

62.213

 

BALANCE CARRIED TO THE B/S

NA

2075.276

1656.518

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Goods and components [FOB Basis]

109.304

103.170

68.412

 

 

Interest and Dividend

91.876

57.675

59.708

 

 

Services

64.721

64.901

25.022

 

 

Freight, Insurance, Exchange Gain and Miscellaneous items

1.296

1.962

0.462

 

TOTAL EARNINGS

267.197

2075.276

153.604

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

271.330

155.003

199.809

 

 

Stores and Spares

3.454

3.003

1.066

 

 

Capital Goods

7.940

24.506

16.078

 

TOTAL IMPORTS

282.724

182.512

216.953

 

 

 

 

 

 

Earnings Per Share (Rs.)

84.78

74.35

72.02

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2012

Type

 

 

1st Quarter

Net Sales

 

 

6643.100

Total Expenditure

 

 

6126.800

PBIDT (Excl OI)

 

 

516.300

Other Income

 

 

187.800

Operating Profit

 

 

704.100

Interest

 

 

9.500

Exceptional Items

 

 

0.000

PBDT

 

 

694.600

Depreciation

 

 

38.000

Profit Before Tax

 

 

656.600

Tax

 

 

200.300

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

456.300

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

456.300

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

5.91

5.91

7.01

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

8.33

9.01

23.15

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

17.13

18.59

17.61

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.31

0.34

0.33

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.88

0.98

0.99

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.63

1.50

1.50

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Check List by Info Agents

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

Yes

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

No

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

                                                       

 

BALMER LAWRIE (UK) Limited

Balmer Lawrie (UK) Limited (‘BLUK’) is a wholly owned subsidiary of the Company incorporated in the U.K. BLUK was earlier engaged in Leasing and Hiring of Marine Freight Containers and Tea Warehousing, Blending and Packaging. After exiting these businesses, the Company has been utilizing the proceeds to fund other business opportunities.

 

Accordingly, BLUK has to date invested approximately US $ 1.52 million -- equivalent to Indonesian Rupiah 14.20 billion – in PT. Balmer Lawrie Indonesia(PTBLI), representing 50% of the paid-up equity share capital of the joint venture company, formed to manufacture and market greases and other lubricants in Indonesia. The plant of PTBLI has since been commissioned in December 2011. The registered office of PTBLI is at Jakarta, Indonesia. After initial teething difficulties, PTBLI has started its manufacturing operations, but certain areas need improvisation to ensure improved performance.

 

Exemption from attaching accounts of the Subsidiary In the past the Ministry of Corporate Affairs, New Delhi had exempted the Company from attaching with the Company’s Accounts, the Annual Accounts of Balmer Lawrie (UK) Limited pursuant to Section 212(8) of the Companies Act, 1956. However, vide its General Circular No. 2/ 2011(Ref. No. 5/12/2007-CL-III) dated 8 February 2011, the Ministry of Corporate Affairs, Government of India stipulated that the provisions for attachment of the accounts of the subsidiary shall not apply if the conditions specified therein -- including consent of the Board of Directors of the concerned company by resolution, for not attaching the Balance Sheet of the subsidiary -- are duly fulfilled. It is hereby affirmed that these conditions have

been duly complied with by the Company and the consent of the Board for non-attachment of the subsidiary’s Annual Accounts had also been obtained on 29 March 2011 for the year ended on 31 March 2011 and thereafter for each successive financial year.

 

However, such accounts have been duly consolidated in terms of applicable Accounting Standards and have been shown translated into the Indian Rupee.

 

It is hereby confirmed that the annual accounts of the subsidiary company and the related detailed information shall be made available to the members seeking such information and the same shall also be kept available for inspection at the Registered Office of the Company.

 

 

REPORT ON JOINT VENTURES

 

AVI-OIL India Private Limited (AVI-OIL)

During 2011-12, Avi-Oil recorded a higher performance which culminated in the company blending 1,119 KL of lubricating oils, re-processing / re-packing 22 MT of greases and manufacturing 189 MT of synthetic ester base stocks. Avi-Oil registered gross sales of Rs. 410.000 Millions in the year as against Rs. 370.000 Millions achieved in the previous year. The better performance was achieved despite delay in placement of orders by customers and these orders largely materialized during the third quarter of the year Private

 

The year also witnessed Avi-Oil entering into several long-term Rate Contracts with major customers like Ministry of Defence, Hindustan Aeronautics Limited etc. for supply of aviation lubricants. The joint venture company also achieved a breakthrough in Civil Aviation Business by tying up with Go Airlines (India)Limited, which is the first airline in India to use ‘Turbo-nycoil 600’ aero-engine oil produced by the JV. It is learnt that the Airbus A320 fleet

of Go Air is progressively switching over to the newly introduced TN-600 Oil.

 

During the year, Avi-Oil continued to maintain its registrations with Director General Aeronautical Quality Assurance, Director General of Civil Aviation and other registrations. Besides the regular consents obtained for operating its plant from the Haryana State Pollution Control Board under the Air, Water and Hazardous Wastes

management Acts, Avi-Oil implemented and maintained an Environmental Management System, which is certified

for compliance under the international standard ISO- 14001-2004.

 

BALMER LAWRIE-VAN LEER Limited (BLVL)

BLVL’s net sales, inclusive of other income increased to Rs. 1889.300 Millions in 2011-12 from Rs. 1776.100 Millions, which is about 8% higher than the previous year. With the commencement of new facility at Dehradun, sales volume of Plastic Containers increased by 9% over the previous year. However, in quantitative terms, sale of steel drum closures was marginally impacted on account of lower export performance, which was because of economic slow-down in Europe, the USA and the Far- East. Profitability of plastic container too faced a set-back due to foreign exchange loss on imports of polymer and reduced production arising from acute power shortage in the Plastic Division at Chennai.

 

During the year 2011-12, the Profit was significantly lower as against that of previous year. The JV has taken several initiatives to step up efficiency at its manufacturing facilities to bolster performance in 2012-13.

 

Transafe Services Limited (TSL)

During the financial year 2011-12, TSL achieved a turnover of Rs. 755.300 Millions from operations which was marginally lower compared to the previous year. TSL closed the financial year 2011-12 incurring a loss of Rs. 10.1 Millions (as against Rs. 1620.000 Millions in the previous year). The major shortfall has been in TSL’s container manufacturing business viz., the Creative Containers Division, which has suffered in the absence of demand from the major buyers representing oil and natural gas exploration companies and private rail operators. For the financial year 2012-13, TSL has shifted its focus to the logistics activities in order to step up its profitability.

 

In line with the Corporate Debt Restructuring (CDR) mechanism approved by the Bankers of TSL in October 2010,TSL has repaid to the Banks about 2.5% of the total long-term loan outstanding during 2011-12.The CDR scheme envisages a ballooning repayment schedule under which Rs. 100.000 Millions representing 6.5% of the loan, would become repayable by TSL in 2012-13.

 

Balmer Lawrie (UAE) LLC (BLUAE)

Balmer Lawrie (UAE) LLC continued to face the effects of the recessionary conditions all around the world, difficult local market conditions, intense competition in certain product segments and customer expectations of lower prices during the year 2011.

 

Despite the above factors, BLUAE achieved satisfactory performance during the year 2011. Prices of CR Steel,

HDPE and Tinplate went up in comparison to the previous year but there was pressure from customers to reduce

product prices putting the margins under pressure. Competitor activities were quite intense thereby causing concern. Nevertheless, BLUAE is confident of meeting the challenge and maintaining its dominant position in the

market by taking suitable proactive strategies.

 

In particular, BLUAE is taking necessary steps to control wastage, improve efficiency and strengthen product quality so as to be more cost competitive. As in the past, BLUAE endeavors to maintain its dominant position by fulfilling customer’s needs and expectations, maintaining high business ethics and dependability as a reliable supplier at all times. In pursuit of these objectives, BLUAE continued to improve its facilities in the interest of achieving product/technology up-gradation.

 

Balmer Lawrie Hind Terminals Private Limited

During the year under report, the Company has entered into a 50:50 joint venture with Hind Terminals Private. Limited (‘HT’), an Indian logistics solution company, for the purpose of operating and maintaining a Container Freight Station (CFS), at Manali, Chennai (adjacent to its existing CFS).

 

The said joint venture, in the form of private company limited by shares, was incorporated on 5th December 2011, in Chennai under the Companies Act, 1956, in the name and style of Balmer Lawrie Hind Terminals Private Limited [BLHT]. BLHT has been incorporated with an authorized share capital of Rs. 50.000 Millions As on the date of reporting, the paid-up share capital of BLHT stands at Rs. 0.500 Million

 

The land has already been developed and fire fighting system has been installed. Customs notification (a prerequisite for CFS business) has been obtained and BLHT is gearing-up to commence its business during 2012-13.

 

MANAGEMENT DISCUSSION AND ANALYSIS

This Management Discussion and Analysis aims to provide to the valued Shareholders of the Company further insight into the performance of the Company during the financial year 2011- 12, in the context of the prevailing global and Indian economic conditions and also throws some light on the future prospects. The World economy, especially European nations, witnessed considerable ups and downs in 2011-12 in terms of their economic and business scenario. After staging a smart recovery in 2010, growth in the world economic output decelerated considerably in 2011 and stood at 3.9% for 2011 as per the April 2012 Report of the International Monetary Fund. A number of European economies are yet to come to terms with the debt crisis, though the European Union has designed and formulated a bail-out package for the debt ridden European economy.

 

The American economy was seen to be coming out of the clutches of global depression having grown by 1.9% in the first quarter of 2012. More importantly, the USA has been able to generate significant number of additional jobs, which could have a cascading effect upon other economies.

 

Growth rate in China was, however, affected due to lower imports by European countries.

 

Soaring price of petroleum products and volatility in energy sector were twin factors negatively affecting international business. Despite the aberrations, BRIC nations viz., Brazil, Russia, India and China were able to maintain their growth legacy within the band of 4.3% to 9% in the year under report.

 

India recorded a growth rate of 6.5% in 2011-12 as against 8.4% in 2010-11. Hardening of international crude oil prices, lower global demand for its products / services and inflationary pressures contributed to the fall. In particular, depreciation of the Indian rupee vis-ŕ-vis US dollar increased the cost of imports quite noticeably.

 

India too could not escape the problem of high interest cost due to escalating inflationary trends. The increased interest burden ate into the profits of the companies. With a view to combating inflation and to generate sustainable growth of the economy by boosting industrial output, the Government of India together with Reserve Bank of India (‘RBI’), has been initiating / adopting various monetary and non-monetary measures.

 

The global economic paradigm needs to be kept in focus while analysing the performance of Balmer Lawrie and Co. Limited in 2011- 12. The Company, being a diversified company, has presence in both manufacturing and service sectors, which serves as a cushion of safety in a dynamically changing environment. The Company always believes in delivering value-added products and services to its customers, harnessing available resources and minimising risks so as to enhance and maximise shareholders’ value. The performance pertaining to 8 (eight) Strategic Business Units (SBUs) of the Company is enumerated below.

 

 INDUSTRIAL PACKAGING [SBU-IP]

Industry Structure and Developments

SBU-IP offers a range of 165, 200 and 210 litre capacity mild steel drums and barrels from its six manufacturing locations spread across the country. The SBU is the largest manufacturer of steel barrels in the Industrial Packaging segment.

 

The Company manufactures and markets these containers through the Company’s pan-India marketing network to consumers in the lubricating oils and greases, transformer oil, agrochemicals, fi ne chemicals, paint, food products, chemicals and bitumen industry segments amongst others. The consumers are leading manufacturers in their respective industry segments and come from both public and private sectors; these containers are used for safe packing, transport and storage of their products.

 

Surplus capacities and a large number of manufacturers, leading to depressed margins, have characterised the operations of the Industrial Packaging industry. During the year under review, the SBU achieved its highest volume of sales in a year. The market share of the SBU increased during the year Private Cold rolled steel is the main input material used in the manufacture and prices thereof -- though higher than in the previous year – were, however, stable throughout the year Private

 

The barrel manufacturing plant commissioned at Chittoor in Andhra Pradesh in 2010-11 successfully catered to the localised demand during the year and improved logistics of the drums were appreciated by the end users.

The SBU continues to

 

Segment wise or Product wise Performance

2011-12 witnessed a substantial pick up in demand by the customers. As a consequence, the SBU recorded its highest physical sales, turnover and achieved targeted profit during the year.

 

Outlook

Indicative trends point to a slower growth in 2012-13. Based on the country achieving targeted GDP growth, the SBU expects its volume to grow further and its market share to remain stable in 2012 -13. It is pertinent to mention that equipment up gradation was effected during the year Private This would have a salutary impact since production capacity has been further augmented.

 

2. GREASES and LUBRICANTS [SBU-GandL]

Industry Structure and Developments

The major players in the lubricant industry are the PSU Oil Companies and the Multinationals who together have

a market share of about 73% with the balance 27% being shared by several organised and un organised players.

The Company operates as a Specialist Indian lubrication company. There are certain niche international players too, who operate only in selected segments. The market today comprises two segments viz., Automotive grades, which account for about 65% of the market and Industrial and Marine Grades, which make up the balance.

 

The lubricant industry has become extremely competitive due to the dominant market position of the PSU Oil Companies and the MNCs especially in the automobile / retail lubricating oil segments, on account of their brand value and reach. The automotive lubricant market is highly price sensitive and volume growth is slow due to longer drain intervals of lubricants in view of upgraded version of engines in 4-wheeler and 2-wheeler segments. Continuous hike in petrol prices has affected the sale of vehicles and portends to have a dampening effect on the automotive lubricant industry. The continuous rise in base oil price has also impacted the industry. In fact, over the last one year, the base oil price has shot up by 20% and the increasing trend continues.

 

 

Despite the challenges, the long-term outlook for the industry appears to be quite good because of growth of the Indian economy and increasing purchasing power in the hands of the consumers. In the Industrial lubricating oils and grease segment, the Company has emerged as a significant player and this would, therefore, continue to be a focus area for the Company.

 

Segment wise or Product wise Performance

The business of SBU: GandL can be broadly divided into:

 

(a) Processing Business

(b) Direct Sales

 

The processing business during 2011-12 has been down by around 12% compared to the previous year largely because the PSU Oil Companies, who were traditionally using the Company’s grease manufacturing facility, have begun switching to their own facility.

 

During the year under report, the SBU maintained volume of its direct sales business. Sales volume under the Balmerol brand was marginally higher in 2011-12 over the previous year. Severe price competition from the major players and sharp rise in the cost of base oil and additives impacted the all round performance of the SBU.

 

The direct sale segment may be categorized into [a] Industrial / Institutional sales, [b] Retail sales and [c] Export. In the Institutional sales category, the major customers are Railways, Defence, Steel Sector, Jute Sector, Coal Sector and Sponge Iron sectors.

 

SBU:G and L closed the financial year 2011-12 with a moderate to good performance recording its highest ever turnover and posting a growth of 16% over the previous year.

 

In Retail sector, the SBU posted a volume growth of more than 4% during 2011-12. The Company is laying additional thrust on this sector by way of various promotional campaigns and incentive schemes to accelerate growth.

 

Outlook

Despite a lack of positive vibes in the business environment, the SBU sees good scope for business growth. The focal area for orchestrating growth would be manufacture and supply of eco-friendly / bio-degradable lubricants and introduction of value-added specialty products for niche markets particularly for the steel and the automobile sectors.

 

The future is likely to see the Company pushing for a higher market share in the Retail segment as this segment is likely to become more attractive with the increased purchasing power in the hands of the middle-class. The Company is also negotiating tie-ups with a few auto majors for catering to their after- sales market.

 

 LOGISTICS SERVICES (SBU-LS)

Industry Structure and Developments

The total market size of the Logistics industry in India is estimated at US$ 90 – $100 billion. Logistics industry includes transportation, warehousing, freight forwarding and value added services. SBU-LS of the Company operates in the freight forwarding and value added services, which account for about 13% of the total industry revenue.

 

The Logistics industry, which is a sunrise industry, is characterized by large infrastructure investments, which are on the anvil for developing several new ports, airports, logistics parks, free trade zones, Inland Container Depots and Container Freight Stations, etc across the country. Emergence of organised Retailing in India, which requires streamlined supply network, is also fuelling growth of the industry. India is poised to become one of the major manufacturing hubs for automotive and pharmaceutical sectors; a natural fallout thereof could be increased demand for logistics services.

 

Segment wise or Product wise Performance

SBU-LS offers a comprehensive array of services including import consolidation by Air and Ocean, customs clearance at various air and sea ports, handling of projects cargo through multi-modal transportation, chartering of aircrafts and vessels besides providing express services. Air cargo handling and allied support services such as

customs clearance and chartering continue to form the core revenue generator of the SBU. The overall growth in turnover/ profit of the SBU from air freight and support services in the year under review was around 15% compared to 2010 - 11.

 

Outlook

The SBU has drawn up ambitious plans to expand its activities across the country by opening new branches at potential locations. During the year 2011 - 12, three new branches have been opened and further expansion plan is under consideration. The SBU also targets to expand its customer base by penetrating into the private sector business. It is also on the lookout for strong associates at suitable locations abroad having growth potential.

 

 

4. TOURS and TRAVEL [SBU-TandT]

 

Industry Structure and Developments

SBU: T and T is one of the largest travel agencies in the country affiliated to the International Air Transport Association [IATA]. The activities of SBU: T and T is primarily dependent on the Aviation sector. India being a developing economy, there is enormous growth potential for aviation. The Indian aviation market is growing at a much faster pace than the global average – about 12% domestically and 8-9% internationally. This growth can substantially be attributed to the liberalization of the Indian aviation sector in the mid-nineties, which ushered in private airlines into the aviation basket. The strong surge in demand since then continues primarily due to the burgeoning middle class with its enhanced purchasing power, which has been accentuated further by attractive low fares offered by the low cost carriers. Aviation forms the backbone of the Tourism industry, which has become synonymous with the Incredible India catchy jingle and the two together have become vehicles of growth for the economy. All these constitute welcome developments for the nation and the Company.

 

However, of late, the Aviation sector is facing major crises. The national carrier, Air India is being sustained on the life support of state aid, whereas Kingfisher Airlines is passing through extremely challenging times. The sector as a whole is not generating sustainable revenues one would associate with a large high-growth market. In fact, nearly all domestic airlines on an annualised basis, have reported huge losses. The sector requires radical action by the Government by way of rationalisation of taxes, reduction of skyrocketing aviation turbine fuel costs and adoption of suitable investment policies relating to entry of foreign airlines in the Indian skies.

 

The major clients of the Company are Government Departments and PSUs. Austerity measures instituted for control of Government expenditure in 2010-11 was lifted by the Government of India only to be reintroduced in 2011-12, restricting travel movements by Government employees. This depressed the overall sales to a large extent

 

Segment wise or Product wise Performance

The business of the SBU comprises three segments viz. Domestic travel, International travel and Tours. During 2011- 12, the performance in these segments was generally up to the budget estimates despite the downtrend in the airlines business.

 

Outlook

With the growing middle class population, the tours activity is expected to have a positive impact on the SBU. The entry of Low Cost Carriers (LCCs)on both Domestic and International sectors have been a welcome development, which portends to culminate into higher income for SBU: T and T. With the addition of new aircrafts to the fleet of LCCs business is poised to grow further. Besides, the Company expects rise in business volumes on account of setting up of the new tours portal by the SBU with attractively priced packages.

 

LOGISTICS INFRASTRUCTURE [SBU-LI]

 

Industry Structure and Developments

The Logistics container market consists of three segments viz., Container Freight Station [CFS], Inland Container Depot [ICD] and Warehousing and Distribution [W and D]. CFS/ICD is a common user custom bonded facility with public authority equipped with warehousing space and handling equipments and related Information Technology infrastructure. It provides facility for stuffing / de-stuffing and aggregation / segregation of export / import cargo. It is essentially a port away from port and assists in reducing congestion at the ports.

 

The container handling at Indian ports grew by approximately 6% during 2011-12. The total containerized traffic at major ports accounted for only 20% of the total tonnage handled. This is quite low compared to the world average of 50% cargo being containerised. The total container traffic in India during 2011-12 was around 10 million TEUs (including trans-shipment and coastal movements). None of the ports in India, however, come in the category of top 20 ports of the world.

 

The SBU currently operates three state-of-the-art CFSs located at Nava Sheva-Navi Mumbai, Chennai and Kolkata. These ports account for nearly 82% of the total containerized traffic at the major Indian ports. The SBU operates its W and D facility at Kolkata and Coimbatore.

 

Segment wise or Product wise Performance

Segment wise performance analysis indicates that SBU: Logistics Infrastructure together with SBU: Logistics Services was the main profit generator for the Company in 2011- 12. Compared to the preceding year, the SBU recorded a significant volume growth at all the three locations. Of the total volume handled by the CFSs of the Company, nearly 94% was attributable to handling of import containers, the balance 6% being attributable to handling of export boxes.

 

W and D activity -- which traditionally was focusing on handling bulk metal – has initiated steps for increasing covered warehousing to meet the requirements of the retail and the consumer durable sectors. This has helped the activity to show nominal profit.

 

Outlook

The SBU through its continued marketing efforts has been able to withstand competitive pressures and has been

operating close to 100% capacity compared to the average capacity utilisation of 60% by CFSs in India. The SBU expects to continue its growth orientation. During the year the SBU has embarked on major capacity expansion at all the existing three locations.

 

PERFORMANCE CHEMICALS [SBU-PC]

Industry Structure and Developments

Leather Trade at the global level is currently valued at US$150 Billion. Considering the projected growth rate of 6% annually, it is likely to reach US$ 245 billion by 2020.

 

China is the largest producer, consumer and exporter of leather and leather articles. Chinese leather production is

four times that of India while their exports are approximately 20 times that of India. The domestic demand for leather and leather products in China is estimated to be 100 times the size of domestic demand in India.

 

India’s export of Leather and Leather articles stood at US$ 4.5 billion in the fiscal year 2011-12. India ranks as the fourth largest exporter of leather goods / garments. Focusing on footwear – which forms the core of the Leather industry and constitutes the main engine for growth -- India is the second largest manufacturer of footwear in the world albeit much lower than China which produces about 16% of the global output. The significance of the footwear segment can be gauged from the fact that footwear accounts for about 60% of leather goods export in the world.

 

Turning to the Leather Chemicals industry, it is observed that the industry in India is dominated by MNCs, who together hold a market share of 40%. The strategy of MNCs is focused on consolidating market share coupled with rationalisation of its product portfolio whereby they periodically exit from product lines assessed as having low margins. They also continually seek growth opportunities through mergers and acquisitions.

 

India’s Leather Chemicals market is estimated at Rs. 1500crore and it is growing fairly consistently in tandem with the increase in volume of leather processing being done in the country. However, the market is fraught with competition because of overcapacity and the presence of a very large number of leather chemical manufacturers. Consequently, competition is fierce and the market highly price sensitive.

 

Despite the inherent market complexities, SBU: PC – harnessing its strength in product development and utilising its high technically qualified manpower -- has generally been able to sustain its market share and even increased its reach into overseas markets.

 

Segment wise or Product wise Performance

The turnover during 2011-12 remained at the same level as that of the last year with the drop in the indigenous sale of Fat liquor being made up by higher export sales. With the appointment of a big dealer in China and taking cognizance of better performance in the Korean and Bangladeshi market, the SBU achieved its highest ever export volume in the year under review, which was a significant achievement compared to the previous year.

 

Outlook

The outlook for the Leather Chemicals business appears challenging with the SBU gearing itself to meet the challenges through innovation and intensive RandD work. To improve the future outlook in the Construction Chemicals business, the SBU has begun approaching Infrastructure Companies, Ready Mix Concrete Plants [RMCs] and builders in the Southern and Eastern India and offered them SNF [Sulphonated Naphthalene Formaldehyde] based Admixtures.

 

 In the infrastructure and RMC segments, the SBU achieved some sale in the last quarter of the financial year under report. In the Admixture segment, the SBU is working on development of Poly Carboxylate Ether based Admixture which is a high quality and high value admixture used for high strength concrete application such as building of bridges, tunnels, high rise building etc.

 

TEA [SBU-TEA]

Industry Structure and Developments

India’s tea production during 2011 was about 988 million Kg up by about 23 million Kg from the previous year figure (965 million Kg). The main reason for the increase in production was favourable weather conditions that prevailed in North- Eastern India coupled with rejuvenation of acreage by planting younger tea plants. The volume of exports also improved from 185 million Kg in 2010 to about 193 million Kg in 2011.

 

Domestic consumption stood at around 856 million Kg and continued to grow at a rate of around 2% annually. Import of tea aggregated 19 million Kg.

 

Segmen twise or Product wise Performance

During the year 2011-12 domestic retail sales have been increasing steadily, spreading gradually in the towns and rural markets in the State of West Bengal and Jharkhand. Moreover, the SBU has entered into a contract with a major tea producer for meeting their blending and packing requirements.

 

Outlook

The Company is aggressively working on its domestic retail business by appointing distributors and dealers. In this endeavour, the SBU launched its new products in July 2011 in Eastern India. It has successfully appointed substantial number of distributors in the state of West Bengal, Jharkhand and Maharashtra and this number is increasing with good feedback from customers. In the domestic Retail Segment, the SBU has re-positioned its Tarang range of CTC teas in a new avatar and introduced in the market premium range of Darjeeling and Green tea under the trade name Balmer Lawrie The Tea.

 

Refinery and Oilfield Services [SBU: ROFS]

Industry Structure and Developments

The Refinery and Oilfield Services portfolio consists of Mechanized Tank Sludge Cleaning and Hydrocarbon Recovery

Services and also offers systems for prevention of vapour loss of petroleum products from storage tanks and other technology driven services such as Composite repair service, non-metallic technology for repair of pipelines / storage tanks to avoid unplanned shutdown, preventive external action to check corrosion and decontamination services for refineries and petrochemical plants. This is a nascent industry with a very limited number of players in this industry.

 

Segment wise or Product wise Performance

The SBU achieved a commendable growth in the turnover of processing of oily sludge during 2011-12 and continued to retain its market leadership in the area of hazardous waste management.

Outlook

For the future, the SBU aims to expand its service portfolio into processing hazardous sludge in other industries. Also on the anvil are plans for increasing market awareness for composite repairing services.

 

Contingent Liabilities as at 31st March, 2012 not provided for in the accounts are:

(a) Disputed demand for Excise Duty, Income Tax, Sales Tax and Service Tax amounting to Rs. 778.779 Millions (Rs.687.920 Millions) against which the Company has lodged appeal/petition before appropriate authorities. Details of such disputed demands as on 31st March, 2012

 

(b) Claims against the company not acknowledged as debts amounts to Rs.. 77.953 Millions (Rs.. 71.047 Millions) in respect of which the Company has lodged appeals/petitions before appropriate authorities. In respect of employees/ex-employees related disputes, financial effect is ascertainable on settlement.

 

(c) Bills discounted with banks Rs. 1.267 Millions (Rs.. 10.885 Millions).

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / YEAR ENDED 31ST MARCH, 2012

Rs.in Millions

Particulars

 

 

30.06.2012

 

 

 

Un- Audited

 

 

 

 

Net Sales/ Income from Operations

 

 

65.940

1. (b) Other Operating Income

 

 

0.491

Total Income From operations

 

 

66.431

2. Expenditure

 

 

 

a. Cost of Raw Materials consumed

 

 

52.994

b. Purchases of stock in trade

 

 

0.000

c. Changes in inventories of finished goods , work in progress and stock in trade

 

 

0.116

d. Employee benefit expenses 

 

 

3.692

e. Depreciation and amortisation expense

 

 

0.380

f. Other Expenditure

 

 

4.466

Total Expenditure

 

 

61.648

3. Profit from Operations before Other Income, Interest and Exceptional Items  (1-2)

 

 

4.783

4. Other Income

 

 

1.878

5. Profit before Interest and Tax 

 

 

6.661

6. Interest

 

 

0.095

7. Profit from Ordinary Activities before Tax  and exceptional items

 

 

6.566

8. Exceptional items

 

 

-

9. Profit from Ordinary Activities before Tax  but before exceptional items

 

 

6.566

10. Tax Expenses

 

 

2.003

11. Net profit/(loss) for the period

 

 

4.563

12. Paid-up Equity Share Capital (face value Rs.2 per share)

 

 

1.629

13. Reserves excluding revaluation reserve as per balance sheet of previous accounting year 

 

 

-

14. Earning Per Share

 

 

 

a. Basic and b. Diluted

 

 

28.02

15. Public shareholding

 

 

 

- No. of shares

 

 

6221381

- % of holding (to total shareholding)

 

 

38.20

Promoters And Promoter Group Shareholding

a) Pledged/ Encumbered

 

 

 

-Number of Shares

 

 

-

-% of Shares (As a % of the total Shareholding of Promoter and Promoter Group)

 

 

-

-% of Shares (as a % of the total share capital of the Company)

 

 

-

b) Non Encumbered

 

 

 

- Number of Shares

 

 

10064700

-% of Shares (As a % of the total Shareholding of Promoter and Promoter Group)

 

 

100

-% of Shares (as a % of the total share capital of the Company)

 

 

61.80

 

INVESTOR COMPLAINTS

31.03.2012

Pending at the beginning of the quarter

-

Received during the quarter 

-

Disposed if during the quarter

-

Remaining unresolved the end of the quarter

-

 

NOTE:

·         Previous period / year's figures have been re-grouped / re-arranged wherever necessary.

 

·         The above results including Segment Reporting have been approved by the Board of Directors at its meeting held on 14 August, 2012.

 

·         The above results have been subjected to limited review by the Statutory Auditors of the Company in terms of Clause 41 of the Listing Agreement.

 

·         The Annual General Meeting of the Company is scheduled to be held on 26 September, 2012.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

 

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

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

64

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.