MIRA
INFORM REPORT
|
Report Date : |
03.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
HYDRO S & S INDUSTRIES LIMITED |
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Registered
Office : |
Dhun Building, 3rd Floor, 827, Mount Road, Chennai – 600
002, Tamilnadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
10.11.1983 |
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Com. Reg. No.: |
18-010438 |
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Capital
Investment / Paid-up Capital : |
Rs.64.072
Millions |
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CIN No.: [Company Identification No.] |
L25209TN1983PLC010438 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHES00014A |
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PAN No.: [Permanent Account No.] |
AAACH0931N |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer
and Supplier of reinforced polypropylene compounds, thermoplastics
elastomers, and fiber reinforced composites. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 795000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a Joint Venture between the promoters of WS Industries
(India) Limited and Hydro Polymers Limited, UK. It is an established company having a satisfactory track record. Company has incurred loss from its operation in 2012-13. However
liquidity position of the company is good. Subject gets good support from its
holding companies. Trade relations are reported to be fair. Business is active. Payment
terms are slow but correct. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very
High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated number
of jobs created during the second quarter of the current financial year. 50000
estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long Term Loans = BBB- |
|
Rating Explanation |
Moderate credit quality and average credit risk. |
|
Date |
May 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Non Fund Based Facilities = A3+ |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
May 2013 |
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/ Marketing Office : |
Dhun Building, 3rd Floor, 827, Mount Road, Chennai – 600
002, Tamilnadu, India |
|
Tel. No.: |
91-44-28521736 (4 Lines)/ 28520292/ 28521031 |
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Fax No.: |
91-44-28520420 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No.15C, SIPCOT Industrial Complex, Pudukkottai – 622 002, Tamilnadu, India |
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Factory 2 : |
RS No.38/1, Sedarapet Village, Sedarapet, Puducherry – 605 111, India |
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Factory 3 : |
G 34, Additional Jejuri Industrial Area, Jejuri, Taluka Purandar, Pune – 412 303, Maharashtra, India |
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Factory 4 : |
Plot No.406, Sector-8, IMT Manesar, Gurgaon – 122 050, Haryana, India |
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Sales Office : |
Located at: · Chennai · Bangalore · Pune |
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Godown 1 : |
Gat No.636, Jejuri,
Tal:Purandar, Pune District – 412 303, Maharashtra, India |
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Tel. No.: |
91-2115-254121/ 254122 |
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E-Mail : |
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Godown 2 : |
Flat No.76, Pocket - 4,
Shubham Apartment, Dwarka, Sector-12, New Delhi – 110 075, India |
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E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
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|
Name : |
Mr. Bo Jingen |
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Designation : |
Managing Director (w.e.f. 03.07.2013) |
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Name : |
Mr. V. Srinivasan |
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Designation : |
Director (upto 03.07.2013) |
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Name : |
Mr. Murali Venkatraman |
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Designation : |
Vice Chairman (upto 03.07.2013) |
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Name : |
Mr. V. Thirupathi |
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Designation : |
Director |
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Name : |
Mr. Narayan Sethuramon |
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Designation : |
Director (upto 23.07.2012) |
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Name : |
Mr. G. Balasubramanyan |
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Designation : |
Director |
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Name : |
Mr. Dinshaw Keku Parakh |
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Designation : |
Director (upto 03.07.2013) |
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Name : |
Mr. S.K. Subramanyan |
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Designation : |
Director (Finance and Administration) (upto 03.07.2013) |
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Name : |
Mr.
Nie Delin |
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Designation : |
Director (w.e.f. 03.07.2013) |
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Name : |
Mr.
Wu Xiaohui |
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Designation : |
Whole-Time Director (w.e.f.
03.07.2013) |
KEY EXECUTIVES
|
Name : |
Mr. S.K. Subramanyan |
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Designation : |
Company Secretary |
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|
Name : |
Xie
Dongming |
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Designation : |
Chief Financial Officer (w.e.f.
03.07.2013) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
|
|
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|
4260700 |
66.50 |
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|
4260700 |
66.50 |
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Total shareholding of Promoter and Promoter Group (A) |
4260700 |
66.50 |
|
(B) Public Shareholding |
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|
|
|
|
|
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|
200 |
0.00 |
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|
200 |
0.00 |
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|
|
|
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|
1122546 |
17.52 |
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|
|
|
|
|
843807 |
13.17 |
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|
169182 |
2.64 |
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|
10769 |
0.17 |
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|
10769 |
0.17 |
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|
2146304 |
33.50 |
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Total Public shareholding (B) |
2146504 |
33.50 |
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Total (A)+(B) |
6407204 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
6407204 |
0.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Supplier of reinforced polypropylene compounds, thermoplastics
elastomers, and fiber reinforced composites. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011):
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Plastic Compounds |
MTS |
25000 |
15799 |
|
FRP Pultruded Profiles |
KGS |
-* |
84220 |
|
Goods Traded (High Sea/Agency) |
MTS |
-* |
66 |
NOTE: * Subject to specifications
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of India, Chennai – 600 001,
Tamilnadu, India ·
Canara Bank, Chennai – 600 002, Tamilnadu, India |
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Facilities : |
Notes: LONG-TERM
BORROWINGS A. Term loans
repayable in quarterly instalments as under i) Rs. Nil
(Rs.2.568 millions); between April 2014 to December 2014 ii) Rs.18.100
millions (Rs.41.100 millions); between April 2014 to December 2014 iii) Rs.11.544
millions (Rs.17.544 millions); between April 2014 to March 2016 iv) Rs.2.586
millions (Rs. Nil); between April 2014 to December 2017 Instalments
falling due in respect of all the above loans upto 31.03.2014 have been
grouped under "Current maturities of long term debt’ Details of
Security The above Rupee
Term loans from Banks are secured by a mortgage of the Company's immovable
properties and hypothecation of applicable movable assets, present and
future, at Pudukkottai, Puducherry and Jejuri on a pari passu basis and
collaterally secured by way of second charge on the current assets of the
company. The Term Loan from Canara Bank is secured by exclusive charge on the
related Machineries/ Equipments. B. Hire purchase finance relating to vehicles are secured by
hypothecation of the said vehicles. SHORT-TERM
BORROWINGS Security: Cash credit ,
Buyers credit and other working capital facilities from banks are secured
against hypothecation of inventories (including those lying in the
warehouses), book debts, documentary bills and supply bills and collaterally
secured by second charge on the present and future fixed assets of the
company at Pudukkottai, Puducherry, Jejuri and Manesar. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
P. Srinivasan and Company Chartered Accountants |
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Address : |
Chennai – 600 017, Tamilnadu, India |
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Associates : |
W.S. Industries (India) Limited |
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Other Related Parties : |
· W.S. International Private Limited · Vensunar Holdings Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18000000 |
Equity Shares |
Rs.10/- each |
Rs.180.000 Millions |
|
300000 |
16% Cumulative Redeemable Preferences Shares |
Rs.100/- each |
Rs.30.000 Millions |
|
|
Total
|
|
Rs.210.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6407204 |
Equity Shares |
Rs.10/- each |
Rs.64.072
Millions |
|
|
|
|
|
The company is
authorised to issue Equity and 16% Cumulative Redeemable Preference shares.
However the company has one class of equity shares having a par value of Rs.10 each.
Each shareholder is eligible for one vote per share. The dividend proposed by
the Board of directors is subject to approval of shareholders, except in case
of interim dividend. In the event of liquidation, the equity share holders are
eligible to receive remaining assets of the company after distribution of all
preferential amounts, in proportion of their shareholding.
Details of shares
held by shareholders holding more than 5% of the shares in the company
|
Name of the
shareholder |
No
of Shares held |
%
of Holding |
|
Mrs. Vidya Srinivasan |
1464390 |
22.86 |
|
Mrs. Vidya Srinivasan and Mr. Murali Srinivasan Venkatraman |
932000 |
14.55 |
|
Mrs. Vidya Srinivasan and Mr. Narayan Sethuramon |
799700 |
12.48 |
|
Narbod Constructions (Private) Limited |
400000 |
6.24 |
The company bought
back in aggregate 118425 number of equity shares during the financial years
2008-2009 and 2009-2010.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
64.072 |
64.072 |
64.097 |
|
(b) Reserves & Surplus |
134.607 |
185.090 |
184.817 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
198.679 |
249.162 |
248.914 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
35.138 |
64.337 |
100.175 |
|
(b) Deferred tax liabilities (Net) |
10.366 |
30.916 |
32.516 |
|
(c) Other long
term liabilities |
2.650 |
3.050 |
0.300 |
|
(d) Long-term
provisions |
1.114 |
1.136 |
1.015 |
|
Total Non-current
Liabilities (3) |
49.268 |
99.439 |
134.006 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
276.789 |
321.709 |
294.720 |
|
(b)
Trade payables |
250.796 |
146.223 |
198.059 |
|
(c)
Other current liabilities |
66.489 |
61.457 |
53.873 |
|
(d) Short-term
provisions |
5.359 |
2.431 |
6.892 |
|
Total Current
Liabilities (4) |
599.433 |
531.820 |
553.544 |
|
|
|
|
|
|
TOTAL |
847.380 |
880.421 |
936.464 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
254.487 |
292.850 |
311.930 |
|
(ii)
Intangible Assets |
0.962 |
0.966 |
1.032 |
|
(iii)
Capital work-in-progress |
2.597 |
3.294 |
2.811 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.420 |
0.420 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
10.837 |
8.682 |
7.810 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
268.883 |
306.212 |
324.003 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
4.545 |
4.253 |
1.996 |
|
(b)
Inventories |
191.642 |
182.383 |
210.674 |
|
(c)
Trade receivables |
334.920 |
345.566 |
345.292 |
|
(d) Cash
and cash equivalents |
7.933 |
5.425 |
11.779 |
|
(e)
Short-term loans and advances |
39.457 |
36.582 |
42.720 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
578.497 |
574.209 |
612.461 |
|
|
|
|
|
|
TOTAL |
847.380 |
880.421 |
936.464 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
1565.795 |
1501.003 |
1401.162 |
|
|
|
Other Income |
8.363 |
1.436 |
1.214 |
|
|
|
TOTAL (A) |
1574.158 |
1502.439 |
1402.376 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1363.638 |
1199.899 |
1150.206 |
|
|
|
Purchases of stock- in-trade |
0.000 |
7.777 |
9.172 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
(15.526) |
18.625 |
(18.128) |
|
|
|
Employee benefits expense |
69.433 |
65.456 |
64.050 |
|
|
|
Other expenses |
129.749 |
119.678 |
110.578 |
|
|
|
TOTAL (B) |
1547.294 |
1411.435 |
1315.878 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(26.864) |
91.004 |
86.498 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
69.712 |
65.561 |
46.509 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(42.848) |
24.443 |
39.989 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
28.185 |
26.794 |
26.909 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(71.033) |
(1.351) |
13.080 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(20.550) |
(1.600) |
2.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(50.483) |
0.249 |
10.480 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
10.481 |
10.232 |
14.484 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
10.000 |
|
|
|
Transfer to Special General Reserve |
0.000 |
0.000 |
0.250 |
|
|
|
Proposed Dividend on Equity Shares |
0.000 |
0.000 |
3.844 |
|
|
|
Proposed Dividend Tax on Distributable Profits |
0.000 |
0.000 |
0.638 |
|
|
BALANCE CARRIED
TO THE B/S |
(40.002) |
10.481 |
10.232 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of goods exported |
2.330 |
0.757 |
0.427 |
|
|
|
Commission received |
6.437 |
6.563 |
3.471 |
|
|
TOTAL EARNINGS |
8.767 |
7.320 |
3.898 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
322.438 |
289.693 |
329.529 |
|
|
|
Capital Goods & Spares |
0.130 |
5.260 |
5.079 |
|
|
TOTAL IMPORTS |
322.568 |
294.953 |
334.608 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(7.88) |
0.04 |
1.64 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(3.21) |
0.02
|
0.75 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.54) |
(0.09)
|
0.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.41) |
(0.15)
|
1.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.36) |
(0.01)
|
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.57 |
1.55
|
1.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.97 |
1.08
|
1.11 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10400716 |
31/12/2012 |
12,500,000.00 |
CANARA BANK |
MOUNT ROAD
BRANCH, 781-785, ANNA SALAI, CHENNAI, TAMILNADU - 600002, INDIA |
B67122010 |
|
2 |
10321370 |
16/11/2011 |
32,000,000.00 |
STATE BANK OF
INDIA |
COMMERCIAL BRANCH,
BOMBAY MUTUAL BUILDING, NO.232, N.S.C BOSE ROAD, CHENNAI, TAMILNADU - 600001,
INDIA |
B27008234 |
|
3 |
10240410 |
07/08/2010 |
50,000,000.00 |
STATE BANK OF
INDIA |
COMMERCIAL
BRANCH, NO.232, N.S.C BOSE ROAD, CHENNAI, TAMILNADU - 600001, INDIA |
A95201257 |
|
4 |
10139555 |
05/01/2009 |
17,500,000.00 |
CANARA BANK |
MOUNT ROAD
BRANCH,, 781-785,ANNA SALAI, CHENNAI, TAMILNADU - 600002, INDIA |
A55291892 |
|
5 |
10091624 |
06/06/2009 * |
82,500,000.00 |
CANARA BANK |
MOUNT ROAD BRANCH,
ANNA SALAI, CHENNAI, TAMILNADU - 600002, INDIA |
A64654635 |
|
6 |
80027826 |
02/02/2012 * |
520,000,000.00 |
STATE BANK OF
INDIA |
COMMERCIAL
BRANCH, NO.232 NSC BOSE ROAD, CHENNAI, TAMILNADU - 600001, INDIA |
B32159352 |
|
7 |
90307436 |
28/11/1996 * |
4,400,000.00 |
CANARA BANK |
MOUNT ROAD,
MADRAS, TAMILNADU - 600002, INDIA |
- |
|
8 |
90303548 |
29/03/1990 |
14,500,000.00 |
CANARA BANK |
787, MOUNT ROAD,
MADRAS, TAMILNADU - 600002, INDIA |
- |
|
9 |
90307115 |
25/06/1988 |
1,000,000.00 |
CANARA BANK |
KARIM MANSION,
787, MOUNT ROAD, MADRAS, TAMILNADU - 600002, INDIA |
- |
* Date of charge
modification
BUSINESS
OPERATIONS:
Revenue from
Operations grew moderately by 4% over the previous year, though volumes remain
flat. The year witnessed continued turbulence on the business front with
inflation continuing to rule high, leading to high interest rates and dampened
consumer enthusiasm to buy automobiles.
The Company had to
continue facing the challenges of a sustained high inflation on input prices.
The high input costs, in the context of resistance from customers to adequate
compensation, led to erosion in margins.
The company has
completed the compounding facility at Manesar to cater to the requirements of
the Northern market, with an initial capacity of 6000 MTPA. This facility was
commissioned in March 2013 and is expected to contribute to growth of the
company during the current year.
The Pultrusion
division has been only achieving marginal performance during the recent years
and hence it was decided to close down operations of this division.
As part of
realignment of capacity, it was decided to curtail production at Pudukkottai.
Consequently it was decided to sell the two Wind Mills which the Company had
established. The proceeds from the sale were utilised for funding the Manesar
facility and into operations.
MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
BUSINESS SCENARIO
The demand from
Automotive sector started showing signs of weakness right from the beginning of
the year and the sluggishness in demand persisted throughout the year. By the
year-end, the drop in demand was so significant that it eroded all the volume
gains the Company made in the first three quarters of the period. A combination
of overall sluggishness in the economy, political uncertainty, high interest
rates affected the demand resulting in production drop at the OEM end.
The company's risk
mitigation strategy of expanding the OEM basket continued to benefit the
business, reducing their dependency on any one OEM. However input costs went up
significantly and the raw material inflation was close to 10% on year on year
comparison.
COMPANY
PERFORMANCE
The year started
slowly, and demand off-take was impacted by labour issues at a major OEM and
inflationary raw material prices. In spite of slow demand, they were able to
sustain a 10% year on year volume growth for the first three quarters of the
year. However the severity of the slowdown, steep drop in production at certain
OEMs hit them hard in the last quarter and they managed to end the year only
with marginal growth. Their share of presence in passenger cars went up from
3.8 Kg/Car to 4.10 Kg/Car.
1) Operations
The volumes went
up only marginally. However they were able to record an increase of about 5% on
top line. Production was optimized and Pudukkottai operations were restructured
to get better efficiency. They commissioned the new facility in Manesar,
Haryana and they are confident that this would get them additional growth in
the North region.
2) Optimization
Initiatives
Initiatives to
optimize formulations and processes were reviewed continuously for remaining
competitive in the market and to offset the impact of increased raw material
costs.
3) Technology
Upgradation
The technical capability
and tools for new development activities were augmented. New techniques to
ensure achievement of desired properties and effects and optimization of
formulations were provided. These investments and tools would go a long way in
the company being able to face the cost pressure and application demand
challenges from the OEM's going forward.
4) HR and IR
The manufacturing
facilities are being reviewed for production efficiency, process improvement
and inventory management. Training and tools are being provided to the
personnel to improve overall productivity.
5) Business
Initiatives
The strategy of
the last 2 years to mitigate risk by diversification across OEMs is being
extended. Positive outcome of this is the entry into one of the more recent transnational
OEMs. This should contribute significantly to new business in the current year.
Our efforts in
appliances are slowly showing movement. They have received a positive response
from major white goods transnational for using their compounds in place of ABS.
The other small appliances are also seeing greater penetration. These beginning
will definitely give them more business in the future from the white
goods/appliance segment.
Alternate raw
material sources, formulation optimization, production lot sizes and
manufacturing efficiency did help them to bring down to some extent the huge
impact of RM inflation.
They consolidated
their market in FIBC segment in the trading activity. They are also seeing
traction in bigger markets like BOPP/CPP film and the nascent market of
agricultural films.
FINANCIAL
PERFORMANCE
Revenues
Revenue from
operations grew by (4%) over the previous year though the volumes grew only
marginally. Trading volumes also dipped during the current year, reflecting the
overall difficult economy and business climate.
The pultrusion
division has been only achieving marginal performance during the recent years
and hence it was decided to close down operations of this division.
Input Costs
After some
stability in the PP prices during the first quarter of the year, the prices
headed upward continuously, leading to a severe increase in input costs. Though
some much overdue price corrections were obtained from customers from the
middle of the year, the continuous increase in PP prices, negated the benefit.
There was no
shortage of power at Jejuri, however the power tariff was increased by the
utilities. In line with the decision to curtail production at Pudukkottai, the use
of the Wind Mills power was of negligible benefit and hence both the Wind
Energy Generators were disposed during the year.
Insurance Claim in respect of the Cyclone Thane at Puducherry last year
was settled.
Financial Costs
Interest rates
remained fairly stable during the year, though there was an increase in
absolute amounts largely due to higher working capital utilization. The
proceeds of the sale of the WEG were utilized to repay the debt contracted for
it, thereby saving on interest costs. The volatility of the Rupee vis a vis the
Dollar, faced during the year, was better than the previous year's steep
depreciation. Consequent to the continued strain in the operations, rating
agency ICRA Ltd, downgraded the Company's rating both for the short term from
A2 to A3+ and the long term from LBBB to LBBB(-).
ONGOING
INITIATIVES AND FUTURE OUTLOOK
a) Only if the
trend in increasing offtake of vehicles is sustained will the volume of tonnage
increases materialise. Such increased volumes and management of supply chain
and logistics should help in bettering margins during the current year subject
of course to the price behaviour of Polypropylene and other crude oil based
inputs.
b) New commercial
vehicles call for increased usage of PP compounds on interior parts and the
Company is already working with major companies in this segment to benefit from
this approach.
c) Control of
receivables and inventory and improved process efficiency, should also
contribute to the reduction of working capital requirement leading to a
reduction in interest costs.
However, the overall short term economic
scenario looks pessimistic and could have an impact on the offtake of vehicles
and consequent growth of the auto industry.
CONTINGENT LIABILITIES NOT PROVIDED FOR:
|
Particulars |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
a) Letters of credit |
45.707 |
45.219 |
|
b) Letters of guarantee |
0.662 |
0.662 |
|
c) Commitment on capital accounts |
0.154 |
0.461 |
|
d) Customs duty on materials-in-bond |
1.572 |
0.211 |
|
e) Custom duty disputed in appeals |
2.678 |
2.678 |
|
f) Income Tax disputed in appeals |
6.154 |
1.694 |
|
g) Sales Tax disputed in appeals |
1.275 |
-- |
|
h) Excise duty & Service Tax disputed in appeals |
1.496 |
1.258 |
FIXED ASSETS:
Tangible Assets
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Plant, Machinery and Equipments
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
·
Computer Systems
Intangible Assets
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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.62.39 |
|
|
1 |
Rs.102.06 |
|
Euro |
1 |
Rs.84.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
42 |
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.