0.
1. Summary Information
|
|
|
Country |
|
|
Company Name |
KESORAM INDUSTRIES LIMITED |
Principal Name 1 |
Mr. Basant Kumar
Birla |
|
Status |
Satisfactory |
Principal Name 2 |
Mrs. Manjushree
Khaitan |
|
|
|
Registration # |
21-003429 |
|
Street Address |
8th
Floor, |
||
|
Established Date |
18.10.1919 |
SIC Code |
-- |
|
Telephone# |
91-33-22435453/ 22429454/ 22480764/ 22130441/ 22135121 |
Business Style 1 |
Manufacture. |
|
Fax # |
91-33-22109455 |
Business Style 2 |
|
|
Homepage |
Product Name 1 |
Tires |
|
|
# of employees |
13877 (Approximately) |
Product Name 2 |
Cement |
|
Paid up capital |
Rs.457,400,000/- |
Product Name 3 |
Rayon |
|
Shareholders |
Shareholding of
Promoter and Promoter - 52.66% Public
Shareholding – 47.34% |
Banking |
Axis Bank Limited |
|
Public Limited Corp. |
YES |
Business Period |
94 Years |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
Ba (51) |
|
|
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Parties where control exists - Joint venture |
-- |
Gondkhari Coal Mining Limited |
-- |
|
Note |
|
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
13,435,300,000 |
Current Liabilities |
14,087,200,000 |
|
Inventories |
9,127,500,000 |
Long-term Liabilities |
44,051,900,000 |
|
Fixed Assets |
34,467,700,000 |
Other Liabilities |
797,500,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
58,936,600,000 |
|
Invest& other Assets |
7,708,500,000 |
Retained Earnings |
5,345,000,000 |
|
|
|
Net Worth |
5,802,400,000 |
|
Total Assets |
64,739,000,000 |
Total Liab. & Equity |
64,739,000,000 |
|
Total Assets (Previous Year) |
65,227,100,000 |
|
|
|
P/L Statement as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Sales |
57,108,200,000 |
Net Profit |
(3,292,300,000) |
|
Sales(Previous yr) |
59,208,600,000 |
Net Profit(Prev.yr) |
(3,797,400,000) |
MIRA
INFORM REPORT
|
Report Date : |
30.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
KESORAM INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
8th Floor, Birla Building, 9/1, R.N. Mukherjee Road,
Kolkata – 700 001, West Bengal |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
18.10.1919 |
|
|
|
|
Com. Reg. No.: |
21-003429 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.457.400 millions |
|
|
|
|
CIN No.: [Company Identification No.] |
L17119WB1919PLC003429 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALK00164D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCK2417P |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are
Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the manufacture and sale of tires,
cement, rayon yarns, and chemicals. |
|
|
|
|
No. of Employees
: |
13877 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 23210000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exists |
|
|
|
|
Comments : |
Subject is a flagship company of B K Birla Group. It is an old and
well established company having good track record. There appear losses recorded by the company. However, the general financial position of the company appears to be
strong. The promoters are reported to be reputed and experience businessmen.
Subject gets good support from its Group Companies. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. In view of strong holding the company can be considered for normal
business dealing at usual trade terms condition. |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn Rs.400000
million from the bandwidth auction set for January. The merger and acquisition
guidelines, cleared by a group of ministers, will be out before the auction
begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities: A |
|
Rating Explanation |
Adequate degree at safety and low credit risk. |
|
Date |
13.09.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
13.09.2013 |
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/ Corporate Office : |
8th Floor, Birla Building, 9/1, R.N. Mukherjee Road,
Kolkata – 700 001, West Bengal, India |
|
Tel. No.: |
91-33-22435453/ 22429454/ 22480764/ 22130441/ 22135121 |
|
Fax No.: |
91-33-22109455 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Cement Section |
|
|
Factory 1 : |
Sedam, District
Gulbarga – 585 222, Karnataka, India |
|
Tel. No.: |
91-8441-276005/ 277403 |
|
Fax No.: |
91-8441-276139 |
|
E-Mail : |
|
|
|
|
|
|
Storage and
Packing Unit : |
|
Factory 2 : |
Survey
No.296/7/4, IDA, Bollaram Village, Jinnaram Mandel, Medak District – 502 325,
Andhra Pradesh, India |
|
|
|
|
Factory 3 : |
T-3 MIDC Chincholi,
Taluk : Mohal, Solapur – 413 255, Maharashtra, India |
|
Tel. No.: |
91-217-2357060 |
|
|
|
|
Factory 4 : |
Basantnagar,
District Karimnagar – 505 187, Andhra Pradesh, India |
|
Tel. No.: |
91-8728-228122/
228125/ 228156 |
|
Fax No.: |
91-8728-228160 |
|
E-Mail : |
|
|
|
|
|
Automobile Tyres and Tubes |
|
|
Factory 5 : |
P.O. Chhanpur,
Via.Kuruda, District Balasore – 756 056, Orissa, India |
|
Tel. No.: |
91-6782-255259/
780/ 620 |
|
Fax No.: |
91-6782-255225 |
|
E-Mail : |
|
|
|
|
|
Factory 6 : |
Gram
Khedimubarakpur, Tehsil Laksar, District Haridwar – 247 663, Uttarakhand,
India |
|
Tel. No.: |
91-1332-256000/256001 |
|
Fax No.: |
91-1332-255177 |
|
E-Mail : |
|
|
|
|
|
Rayon and Transparent Paper |
|
|
Factory 7 : |
P.O. Nayasarai, Railway
Station: Kuntighat, On Howrah-Katwa Route, District Hooghly – 712 513, West
Bengal, India |
|
Tel. No.: |
91-33-26846431-34/
26846457 |
|
Fax No.: |
91-33-26846461 |
|
E-Mail : |
|
|
|
|
|
Spun Pipes and Foundries (under suspension of
work) |
|
|
Factory 8 : |
P.O Adcconagar,
Bansberia, Dist.Hooghly,
West Bengal-712121 Phone :
+91-33-26346465 |
|
|
|
|
Heavy Chemicals (under suspension of work) |
|
|
Factory 9 : |
19, B. T. Road, Khardah,
P.O. Balaram Dharma Sopan, Kolkata – 700 116, West Bengal, India |
|
Tel. No.: |
91-33-25535183 |
|
|
|
|
City Office 1 : |
10-3-316/A, Crystal Towers, 2nd Floor, Above Andhra
Bank, Masab Tank, Hyderabad – 500 028, Andhra. Pradesh, India |
|
Tel. No.: |
91-40-23342296/ 8056 |
|
Fax No.: |
91-40-23344109/ 7821 |
|
E-Mail : |
|
|
|
|
|
City Office 2 : |
10-3-316/2, Crystal Towers, 2nd and 3rd Floors,
Above Andhra Bank, Masab Tank, Hyderabad – 500 028, Andhra. Pradesh, India |
|
Tel. No.: |
91-40-23348896/ 7843/ 7613 |
|
Fax No.: |
91-40-23344109/ 23347821 |
|
E-Mail : |
|
|
|
|
|
City Office 3 : |
7th Floor, Birla Building, 9/1, R.N. Mukherjee Road,
Kolkata – 700 001, West Bengal, India |
|
Tel. No.: |
91-33-22624411-13,
22624355-57 |
|
Fax No.: |
91-33-22624359 |
|
E-Mail : |
|
|
|
|
|
City Office 4 : |
“Industry House”, 11th Floor, 10, Camac Street, Kolkata –
700 017, West Bengal, India |
|
Tel. No.: |
91-33-22824721-24 |
|
Fax No.: |
91-33-22828879 |
|
E-Mail : |
|
|
|
|
|
City Office 5 : |
“Industry House”, 10, Camac Street, Kolkata – 700 017, West Bengal,
India |
|
Tel. No.: |
91-33-22822476 |
|
Fax No.: |
91-33-22829370 |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Basant Kumar
Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs. Manjushree
Khaitan |
|
Designation : |
Executive Vice
Chairperson |
|
|
|
|
Name : |
Mr. Krishna Gopal
Maheshwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pesi Kushru
Choksey |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amitabha
Ghosh |
|
Designation : |
Additional
Director |
|
|
|
|
Name : |
Mr. Prasanta
Kumar Malik |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinay Sah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kashi Prasad Khandelwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K.C. Jain |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
TEAM OF EXECUTIVES |
|
|
CORPORATE OFFICE |
|
|
Name : |
Mr. Arvind Kumar Singh |
|
Designation : |
Chief Executive Officer - Business
Operations |
|
|
|
|
Name : |
Tridib Kumar Das |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Gautam Ganguli |
|
Designation : |
Company Secretary |
|
|
|
|
BIRLA TYRES |
|
|
Name : |
Mr. Arvind Kumar Singh |
|
Designation : |
President |
|
|
|
|
RAYON AND
TRANSPARENT PAPER |
|
|
Name : |
Mr. Sachin Saxena |
|
Designation : |
President |
|
|
|
|
CEMENT |
|
|
Name : |
K. C. Jain |
|
Designation : |
Senior President |
|
|
|
|
Name : |
Animesh Banerjee |
|
Designation : |
President |
|
|
|
|
Name : |
Yaswant Mishra |
|
Designation : |
President - Sales and Marketing |
MAJOR SHAREHOLDERS
AS ON 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1293573 |
1.26 |
|
|
52804068 |
51.40 |
|
|
54097641 |
52.66 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
54097641 |
52.66 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
563762 |
0.55 |
|
|
218744 |
0.21 |
|
|
5972161 |
5.81 |
|
|
3475694 |
3.38 |
|
|
10230361 |
9.96 |
|
|
|
|
|
|
11939697 |
11.62 |
|
|
|
|
|
|
9677548 |
9.42 |
|
|
12184770 |
11.86 |
|
|
4596758 |
4.47 |
|
|
845924 |
0.82 |
|
|
3742735 |
3.64 |
|
|
8099 |
0.01 |
|
|
38398773 |
37.38 |
|
Total Public shareholding (B) |
48629134 |
47.34 |
|
Total (A)+(B) |
102726775 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
7041875 |
0.00 |
|
|
7041875 |
0.00 |
|
Total (A)+(B)+(C) |
109768650 |
0.00 |
|
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the manufacture and sale of tires,
cement, rayon yarns, and chemicals. |
|
|
|
|
Brand Name : |
·
BIRLA TYRES ·
BIRLA SHAKTI |
PRODUCTION STATUS [AS ON 31.03.2013]
|
Manufacturing
Section |
Class of goods
manufactured |
Licensed Capacity |
Installed Capacity (a) |
Production (Meant for Sale) |
|
Hindustan Heavy Chemicals |
(i) Caustic Soda
Lye (100%) |
15,120 M. Tons
per per |
12,410 M. Tons
per year |
-- |
|
(ii) Liquid
Chlorine |
6,000 M. Tons
per year |
5,045 M. Tons
per year |
-- |
|
|
(iii) Sodium
Hypochlorite |
16,500 M. Tons
per year |
6,205 M. Tons
per year |
-- |
|
|
(iv)
Hydrochloric Acid (100%) |
9,750 M. Tons
per year |
8,200 M. Tons
per year |
-- |
|
|
(v) Ferric Alum
(incl. Alum Liquor) |
3,200 M. Tons
per year |
3,200 M. Tons
per year |
-- |
|
|
(vi) Sulphuric
Acid (incl. Battery Grade) |
20,400 M. Tons
per year |
18,700 M. Tons
per year |
-- |
|
|
(vii) Purified Hydrogen
Gas |
30,24,000 M 3
per year |
16,20,000 M3 per
year |
-- |
* Production is
inclusive of internal consumption.
(a) Installed
capacities have been certified by the company’s Technical Experts. Furthermore,
the installed capacity of the Transperent Paper Section is also as per
Company’s application to the Government of India for C.O. B. Licence.
GENERAL INFORMATION
|
No. of Employees : |
13877 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Axis
Bank Limited ·
Bank of
Baroda ·
Citibank
N.A. ·
DBS
Bank Limited ·
HDFC
Bank Limited ·
ICICI
Bank Limited. ·
Induslnd
Bank Limited ·
ING
Vysya Bank Limited ·
Punjab
National Bank ·
State
Bank of Hyderabad ·
State
Bank of India – Lead Bank ·
Standard
Chartered Bank ·
Syndicate
Bank ·
The
Hongkong and Shanghai Banking Corporation Limited ·
The
Royal Bank of Scotland N.V. ·
The
South Indian Bank Limited ·
Union
Bank of India · YES Bank Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes: LONG TERM
BORROWINGS The finance
lease obligation is in respect of a Audi A6 car acquired in 2012 which is
secured against the said asset. The above mentioned facility is to be repaid in
equal monthly installments over the period of loan and at an interest rate of
10% p.a. The period of repayment with respect to balance sheet date is 28
months. SHORT TERM
BORROWINGS Working capital loan
is secured against hypothecation of current assets and second charge on
movable and immovable fixed assets, both present and future unit of the
Company (excluding Spun Pipes and Foundries and Hindustan Heavy Chemicals
units) subject to prior subsisting charge on movable and immovable fixed
asset pertaining to vasavadatta cement unit. The cash credit and working
capital demand loan are repayable on demand. |
|
|
|
|
Banking
Relations : |
------- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
Kolkata, West Bengal, India |
|
|
|
|
Parties where control exists - Joint venture : |
·
Gondkhari Coal Mining Limited |
|
|
|
|
Enterprise where Key Management personnel have
significant influence : |
·
Aditya Marketing and Manufacturing Limited ·
MSK Travels
and Tours Limited |
|
|
|
|
Enterprise over which person is able to exercise
significant influence : |
·
Jay Shree Tea and Industries Limited ·
Parvati Tea
Co. Private Limited @ ·
Birla
Holdings Limited @ ·
North Tukvar
Tea Co. Limited@ ·
Mangalam
Cement Limited## ·
Synergy
Enterprise *** ·
A. K.
Enterprise *** |
|
|
|
|
Other Related Parties *** : |
·
Syt. B. K. Birla ·
Century
Textiles and Industries Limited ·
Century Enka
Limited |
@ Subsidiary companies of Jay Shree Tea and
Industries Limited of which Jayashree Mohta is a key personnel.
# # Vidula Jalan is a key management personnel
of it.
*** Sunil Kumar Jain is son of K.C. Jain,
proprietor of A.K. Enterprise and partner of Synergy Enterprises.
CAPITAL STRUCTURE
AS ON 31.07.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
700000000 |
Equity Shares |
Rs.10/- each |
Rs.7000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
109768650 |
Equity Shares |
Rs.10/- each |
Rs.1097.687 millions |
|
|
|
|
|
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120000000 |
Equity Shares |
Rs.10/- each |
Rs.1200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
45741080 |
Equity Shares |
Rs.10/- each |
Rs.457.400 millions |
|
|
|
|
|
(a) Reconciliation
of the number of shares outstanding as at 31st March, 2013 is set
out below:
|
Particulars |
31.03.2013 |
|
Number of shares outstanding at the beginning of the year |
45743318 |
|
Number of shares forfeited during the year |
2238 |
|
Number of shares outstanding at the end of the year |
45741080 |
(b)
Re-Classification of Authorised share capital
The authorised
share capital of Rs.1200.000 millions comprising 50,00,000 Redeemable
preference shares of Rs.100/- each, 4,00,000 Redeemable cumulative second
preference shares of Rs.100/- each and 6,60,00,000 ordinary shares of Rs.10/-
each has been re-classified into 12,00,00,000 Equity shares of face value of
Rs.10/- each during the year through a resolution passed by postal Ballot.
(c) Forfeiture of
Equity Shares
In terms of
Company’s Articles of Association, the company forfeited 2,238 Equity shares
standing in the names of 175 allottees who failed to pay allotment money
despite several reminders.
(d) Terms/rights
attached to equity shares
The Company has
only one class of equity shares having a par value of Rs.10 each. All equity
shareholder are entitled to one vote per share.
The Company declares
and pays dividend in Indian rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing annual
general meeting except in the case of interim dividend. 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 the
proportion to their shareholdings.
During the year
ended 31st March, 2013, the amount of per share dividend recognised
as distributions to equity shareholders was Re.1/-. The total dividend
appropriation for the year ended 31st March, 2013 amounted to
Rs.53.500 millions including corporate dividend tax of Rs.7.800 millions.
(e) Details of shares held by shareholders holding
more than 5% of the aggregate shares in the Company.
|
Name of the shareholders |
As
at 31st March, 2013 |
|
|
No.
of Shares |
Amount (Rs. in
millions) |
|
|
1. Pilani
Investments and Industries Corporation Limited |
2415750 |
5.28 |
|
2. Life Insurance
Corporation of India |
4984017 |
10.90 |
|
3. Finquest
Securities Private Limited |
2512200 |
5.49 |
|
|
9911967 |
21.67 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)
Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
457.400 |
|
(b) Reserves & Surplus |
|
|
5345.000 |
|
(c) Money
received against share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
|
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
|
5802.400 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
|
|
27743.900 |
|
(b) Deferred tax liabilities (Net) |
|
|
0.000 |
|
(c) Other long term liabilities |
|
|
0.000 |
|
(d) Long-term provisions |
|
|
0.000 |
|
Total Non-current Liabilities (3) |
|
|
27743.900 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
16308.000 |
|
(b) Trade payables |
|
|
4906.300 |
|
(c) Other current
liabilities |
|
|
9180.900 |
|
(d) Short-term provisions |
|
|
797.500 |
|
Total Current Liabilities (4) |
|
|
31192.700 |
|
|
|
|
|
|
TOTAL |
|
|
64739.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
34438.400 |
|
(ii) Intangible Assets |
|
|
29.300 |
|
(iii) Capital
work-in-progress |
|
|
7044.900 |
|
(iv)
Intangible assets under development |
|
|
0.000 |
|
(b) Non-current Investments |
|
|
663.600 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
1266.600 |
|
(e) Other Non-current assets |
|
|
9.400 |
|
Total Non-Current Assets |
|
|
43452.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
0.000 |
|
(b) Inventories |
|
|
9127.500 |
|
(c) Trade receivables |
|
|
8356.700 |
|
(d) Cash and cash equivalents |
|
|
836.600 |
|
(e) Short-term loans and
advances |
|
|
2829.700 |
|
(f) Other current assets |
|
|
136.300 |
|
Total Current Assets |
|
|
21286.800 |
|
|
|
|
|
|
TOTAL |
|
|
64739.000 |
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
457.400 |
457.400 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
8692.700 |
12545.100 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
9150.100 |
13002.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
31779.200 |
18693.400 |
|
|
2] Unsecured Loans |
|
9274.200 |
13532.100 |
|
|
TOTAL BORROWING |
|
41053.400 |
32225.500 |
|
|
DEFERRED TAX LIABILITIES |
|
572.100 |
3864.200 |
|
|
|
|
|
|
|
|
TOTAL |
|
50775.600 |
49092.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
35872.100 |
36920.800 |
|
|
Capital work-in-progress |
|
6235.200 |
2542.70 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
663.600 |
658.200 |
|
|
DEFERRED TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
9951.600
|
11185.500 |
|
|
Sundry Debtors |
|
6724.400
|
6302.000 |
|
|
Cash & Bank Balances |
|
695.900
|
728.900 |
|
|
Other Current Assets |
|
404.700
|
148.000 |
|
|
Loans & Advances |
|
4679.600
|
6073.100 |
|
Total
Current Assets |
|
22456.200
|
24437.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
4834.000
|
5185.200 |
|
|
Other Current Liabilities |
|
8901.900
|
9808.600 |
|
|
Provisions |
|
715.600
|
473.200 |
|
Total
Current Liabilities |
|
14451.500
|
15467.000 |
|
|
Net Current Assets |
|
8004.700
|
8970.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
50775.600 |
49092.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
57108.200 |
59208.600 |
54384.300 |
|
|
|
Other Income |
1310.400 |
840.000 |
1210.600 |
|
|
|
TOTAL (A) |
58418.600 |
60048.600 |
55594.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
28495.700 |
34240.200 |
31319.900 |
|
|
|
Purchase of stock-in-trade |
835.300 |
521.900 |
254.600 |
|
|
|
Changes in
inventories of finished goods, Work-in-progress and stock-in-trade |
(559.600) |
1251.400 |
(1641.300) |
|
|
|
Employee benefits expense |
3840.500 |
3346.800 |
2735.500 |
|
|
|
Other expenses |
21375.700 |
20827.500 |
19088.200 |
|
|
|
Exceptional item |
0.000 |
(112.200) |
0.000 |
|
|
|
TOTAL (B) |
53987.600 |
60075.600 |
51756.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4431.000 |
(27.000) |
3838.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5143.600 |
4101.500 |
2635.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(712.600) |
(4128.500) |
1202.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3059.300 |
2974.000 |
2725.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(3771.900) |
(7102.500) |
(1523.500) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(479.600) |
(3305.100) |
578.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(3292.300) |
(3797.400) |
(2102.100) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
6284.600 |
9485.100 |
11267.500 |
|
|
|
|
|
|
|
|
|
|
Amount
transferred from Debenture Redemption Reserve (Net) |
0.000 |
650.000 |
612.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
45.700 |
45.700 |
148.700 |
|
|
|
Tax on Proposed Dividend |
7.800 |
7.400 |
24.100 |
|
|
|
Interim Dividend |
0.000 |
0.000 |
102.900 |
|
|
|
Tax on Interim Dividend |
0.000 |
0.000 |
17.100 |
|
|
BALANCE CARRIED
TO THE B/S |
2938.800 |
6284.600 |
9485.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports
(excluding export to Nepal and Bhutan) of goods [F.O. B.] |
4276.600 |
5118.700 |
3393.200 |
|
|
TOTAL EARNINGS |
4276.600 |
5118.700 |
3393.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5381.600 |
8873.500 |
8592.200 |
|
|
|
Components and
Spare Parts (including stores) |
236.000 |
164.500 |
113.200 |
|
|
|
Capital Goods |
790.100 |
1365.400 |
1424.500 |
|
|
TOTAL IMPORTS |
6407.700 |
10403.400 |
10129.900 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
Basic |
(71.98) |
(83.02) |
(45.95) |
|
|
|
Diluted |
(71.98) |
(83.02) |
(45.95) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Net Sales |
12792.600 |
12271.400 |
|
Total Expenditure |
12012.100 |
11503.200 |
|
PBIDT (Excl OI) |
780.500 |
768.200 |
|
Other Income |
332.400 |
202.700 |
|
Operating Profit |
1112.900 |
970.900 |
|
Interest |
1343.300 |
1447.900 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
(230.400) |
(477.000) |
|
Depreciation |
768.600 |
810.700 |
|
Profit Before Tax |
(999.000) |
(477.000) |
|
Tax |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
(999.000) |
(1287.700) |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
(999.000) |
(1287.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(5.64) |
(6.32) |
(3.78) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(6.60) |
(12.00) |
(2.80) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.61) |
(12.18) |
(2.48) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.65) |
(0.78) |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
7.59 |
4.49
|
2.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.68 |
0.75
|
0.72 |
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 |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
Yes |
|
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 |
LITIGATION
DETAILS:
Culcutta High Court
|
Status of : TEMP APO (APOT) 296 OF 2013 M.A.K (INDIA) CHEMICALS PRIVATE LIMITED Vs. KESORAM Pet’s Adv: MS. SUMTA SHAW Res’s Adv: Court No.: 2 Last Listed on: Thursday, August 08, 2013 Category: MONEY CLAIMS/COMPENSATION/DAMAGES/MESNE PROFITS
Case Update on : Thursday August 08, 2013 |
UNSECURED LOANS
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
Term Loans: |
|
|
From Others |
|
|
Deposits - From
selling agents and others |
2958.200 |
|
SHORT TERM
BORROWINGS |
|
|
Term Loan |
|
|
From Bank |
|
|
Indian rupee loan |
500.000 |
|
Foreign currency loan |
0.000 |
|
From Others |
|
|
Indian rupee
loan |
1000.000 |
|
Deposits |
|
|
Deposits from public |
37.100 |
|
Deposits from others |
33.200 |
|
Total |
4528.500 |
|
PARTICULARS |
31.03.2012 (Rs.
in Millions) |
|
Term loan (From
Others) |
|
|
Indian rupees |
0.000 |
|
Deposits from others |
3032.100 |
|
Deposits from public |
48.000 |
|
Working capital
loan (From banks) |
|
|
Overdraft/ cash credit |
0.000 |
|
Term loan (From
banks) |
|
|
Indian rupees |
1000.000 |
|
Foreign currency |
5194.100 |
|
Total |
9274.200 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10458760 |
28/10/2013 |
800,000,000.00 |
PUNJAB NATIONAL BANK |
LARGE CORPORATE
BRANCH, 44, PARK STREET, KOLKATA, |
B88982855 |
|
2 |
10450725 |
24/09/2013 |
1,000,000,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES BRANCH, 4, INDIA EXC |
B85602936 |
|
3 |
10445566 |
24/08/2013 |
1,500,000,000.00 |
IFCI LIMITED |
IFCI TOWER, 61
NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA |
B83313049 |
|
4 |
10411702 |
06/03/2013 |
1,000,000,000.00 |
THE SOUTH INDIAN BANK LIMITED |
CORPORATE
BRANCH, 2 CHURCH LANE, OSWAL CHAMBERS, |
B70745096 |
|
5 |
10410087 |
12/02/2013 |
500,000,000.00 |
TATA CAPITAL FINANCIAL SERVICES LIMITED |
ONE FORBES,, DR.
V. B. GANDHI MARG, FORT, MUMBAI, |
B70188826 |
|
6 |
10396189 |
24/12/2012 |
500,000,000.00 |
THE SOUTH INDIAN BANK LIMITED |
CORPORATE
BRANCH, 2, CHURCH LANE, OSWAL CHAMBERS,
KOLKATA, WEST BENGAL - 700001, INDIA |
B65600900 |
|
7 |
10396245 |
24/12/2012 |
500,000,000.00 |
THE SOUTH INDIAN BANK LIMITED |
CORPORATE
BRANCH, 2, CHURCH LANE, OSWAL CHAMBERS, |
B65622730 |
|
8 |
10379506 |
31/08/2012 |
500,000,000.00 |
ING VYSYA BANK LIMITED |
4/1,MIDDLETON
STREET, SIKKIM HOUSE, KOLKATA, WEST BENGAL - 700071, INDIA |
B59296491 |
|
9 |
10378067 |
02/08/2012 |
3,120,000.00 |
HDFC BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B58686031 |
|
10 |
10347475 |
13/03/2012 * |
530,000,000.00 |
DBS BANK LIMITED |
4A, NANDALAL
BASU SARANI, KOLKATA, WEST BENGAL - 7 |
B37690849 |
* Date of charge modification
GENERAL
INFORMATION
The Company is a
public company domiciled and incorporated under the provisions of the Indian Companies
Act, 1913. The Company is flagship company of B. K. Birla group of companies.
The Company is a multiproduct and multi location company. Cement and automobile
tyre business are its core businesses and it also has interest in rayon and
cellulose paper, cast iron spun pipes and caustic soda and allied chemicals.
Its shares are listed on three stock exchanges in India (Bombay Stock Exchange,
National Stock Exchange and Calcutta Stock Exchange) and its Global Depositary
Receipts (GDR) are listed on Luxembourg Stock Exchange. The Company markets its
automobile tyres under the brand name “Birla Tyres” and cement is marketed
under “Birla Shakti” brand.
GENERAL REVIEW
The Company took
in its stride significant operating adversities during the year to record a
positive Earning Before Interest, Depreciation, Tax and other Amortisations
(“EBIDTA”) of Rs.4431.000 millions during the year against a negative EBIDTA of
Rs.139.200 millions in the previous year.
Driven by a series
of measured initiatives across the organisation, the Company has been on the
path of recovery from the beginning of the calendar year 2012. These
initiatives have begun to bear fruit. The Tyre Business which recorded a
negative EBIDTA of Rs.4280.800 millions in the Financial Year 2011-12 turned
around determinedly and recorded a positive EBIDTA of Rs.737.900 millions
during the year. Equally, the Rayon Business turned EBIDTA positive during the
year. The Cement Business, however, recorded a lower EBIDTA than that in the
previous year, on account of poor market conditions in the second half of the
year.
Brief commentaries
on the performance of the Tyre, Cement and Rayon Businesses are appended:
Tyre
The year saw the
Tyre Business steadily improve profitability. EBIDTA was at a positive Rs.733.100
millions as compared to a negative EBIDTA of Rs.4280.800 millions in the
previous year. Net Revenue at Rs.35290.000 millions declined by approximately
8%. This decline in sales was as much on account of depressed market conditions
as on account of a conscious decision to focus efforts on profitable product
and market segments, resulting in partial vacation of poor contribution product
segments.
The swing in
EBIDTA to the extent of Rs.5010.000 millions during the year as compared to the
previous year was on account of a variety of actions taken on the revenue front
- focused at bettering the net realisation per unit of product sold, as well as
on the cost front - through the entire value chain. These internal efforts were
supplemented by softening raw material costs.
The Business
continues to have the distinction of being certified for ISO – 9001, TS-16949,
ISO-14001, SA-8000, OSHAS-18001 and TPM.
With operations of
the Tyre Business showing continuous improvement, the Board views the
Business’s future prospects with confidence.
Cement
The production of
the Cement Business during the year as compared with that of the previous year
was as follows:
Lakh/MT
|
|
2012-13 |
2011-12 |
|
Clinker |
42.44 |
39.94 |
|
Cement |
51.60 |
49.57 |
Though the year
began positively with robust demand from the housing and infrastructure
sectors, demand began to slacken in the Business’s command areas from the
second quarter of the year. The resulting erosion of cement prices put pressure
on the Business’s margins. Rising input costs added to this pressure.
Consequently, EBIDTA of the Business declined to Rs.4337.200 millions as
against Rs.5430.000 millions in the previous year.
The Company’s
Vasavadatta Cement plant commissioned its fifth power plant during the year. In
addition to meeting the entire power requirements of the facility, it was able
to evacuate power into the local grid and sell to buyers in the open market.
The Cement
Business continues its pioneering efforts in the field of usage of alternate
fuel. It has, at its Vasavadatta Cement facility, installed a Hot Disc for
co-incineration of materials like used tyres, municipal wastes, industrial
wastes etc. which emit useful Heat Value of above 2500 kcal. This development
will, in future, assist in significantly reducing power costs.
The Business
continued to be a recipient of several awards and accolades during the year.
Both its facilities received the National Award for Mine Safety. The Business
also received awards from Confederation of Indian Industry (“CII”) for energy
efficiency and water management. The Vasavadatta facility was certified
“GreenCo. Gold” under the Green Company Rating System instituted by the CII.
The challenge
before the Cement Business during the current year would be to enhance margins
for increased profitability. This goal is being seriously pursued through
modulated inputs in all sectors of the Business.
Rayon
The Rayon Business
did well during the year and turned EBIDTA positive.
Efficiencies
improved significantly during the year and the Business was able to absorb
increases in input costs on its way to turning EBIDTA positive.
Although the
viscose filament yarn industry in the country was impacted by low demand in the
international market and imports from China, the Rayon Business maintained its
market share by improving and further diversifying its product range.
Customer focus was
further enhanced and the emphasis on producing finer denier material proved to
be extremely rewarding.
Spun Pipes and Heavy
Chemicals
Kesoram Spun Pipes
and Foundries and Hindustan Heavy Chemicals facilities continued to be under
suspension of work during the year.
FORFEITURE OF
SHARES
The Board, during
the year, forfeited 2,238 Equity Shares standing in the name of 175 allottees
who did not pay the Allotment Money against the convertible portion of the
Company’s 16% Secured Partly Convertible Debentures issued in the Financial
Year 1992-93 despite repeated reminders. These Shares have not been re-issued.
MANAGEMENT DISCUSSION
AND ANALYSIS
Overview
Other than for
operations, the area of focus has been and continues to be improving the
Balance Sheet. As of 31st March, 2013, they carry a debt of
Rs.47827.400 millions from the banking system in their books. As a first step,
in the period since 31st March, 2013, they have successfully
completed an enhancement of equity by way of a Rights Issue to the tune of
Rs.4160.000 millions. While this makes a significant impact on structural
ratios, such as debt to equity, they recognise that they have much more to do
and are committed to strengthening their Balance Sheet.
We, as a business,
have also been looking at the soft side of operations. The two critical
parameters where significant actions were taken over the year related to the
area of Human Resource Management - where a comprehensive initiative was
undertaken to revamp their people related processes and practices as well as
Information Systems - through the introduction of state-of-the-art practices
for management of information, including, though not limited to, the
introduction of a SAP ERP platform in the organisation.
Subject comprises
of three Businesses, each of which are discussed subsequently.
Tyre Business
The Tyre Business,
also known as Birla Tyres, was the single contributor to the decline in the
Company’s performance in the last few years. In the year, EBIDTA rose from a
negative Rs.4280.000 millions to a
positive Rs.730.000 millions - a swing of Rs.5010.000 millions. What is
heartening is that they saw an improvement in operations and the consequent
results on a month on basis through the year.
While weaker
prices of natural rubber as compared to the previous year were an obvious
benefit, this was not the major contributor to the improvement in operating results.
Amongst a host of initiatives, the two most significant contributors to the
improved performance were:
1. The average
sales realisation per ton of product sold rose significantly. This was driven
by price corrections, changes in product mix and changes in customer and market
mix - in both the domestic as well as export markets.
2. Improvement in
manufacturing operations, resulting in higher raw material yields, lower energy
consumption and lower claims.
Looking ahead,
they remain confident of continuing the improvement in operations into the
current year and further, based on actions being taken on a number of
initiatives.
Besides the
existing facilities, they have a semi-completed project to manufacture
passenger car radial tyres at their Balasore manufacturing facility. This is
the only product segment which is currently absent from their portfolio. They
are seeking to actively complete this project. They believe this will aid them
in their efforts at improved performance in the years to come.
Cement Business
Our Cement
business remains a vibrant and profitable business. The second half of the year
saw depressed market conditions in some of their critical markets, resulting in
lower offtake and depressed pricing. This is what resulted in the EBIDTA of
their Cement Business during the year declining from the previous year. At the
same time, they have continued to take initiatives on a variety of fronts and
are confident that on most operating parameters, their performance compares
well to benchmarks.
Looking ahead,
they are confident that as the end markets consuming cement recover, they are
well positioned to take immediate and effective advantage. Besides their
existing facilities, they are in the process of establishing a cement clinker
grinding and packaging plant in Hotgi, Solapur, Maharashtra. This facility,
which will be established in two phases of 1.5 million metric tons per annum is
uniquely positioned close to a thermal power plant that is due to commence
operations over the next two years. This should give them access to a critical
raw material - fly ash, with clinker supplies coming in from their Vasavadatta
Cement manufacturing facility at Sedam, Karnataka. Since this facility will be
limited to clinker grinding and the subsequent processes, the capital
expenditure will be far lower than for a complete cement production facility.
The feasibility shows that this will be of significant importance to their
Cement Business as they go ahead. They will, of course, monitor the market and
take the next steps in setting up this project on careful consideration.
Rayon Business
Our Rayon business
manufactures viscose rayon filament yarn and transparent paper. Their rayon is
marketed under the brand name “Kesoram Rayon” and their transparent paper is
marketed under the brand name “Kesophane”. This Business too saw an operating
turnaround in the year. Over the year, they have worked at:
·
Significant quality improvement, resulting in
better operating performance at the plant as well as enabling them to achieve
better realisations from the market place.
·
Increased marketing activities to enhance reach of
their products outside of the traditional segments.
They continue to
work on a series of initiatives across this Business. Going ahead, they will be
working on cost effective modernisation and upgradation of their manufacturing
facility. This should enable them to bring down operating costs while at the
same time providing them the ability to add to their product portfolio.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs. in millions) |
31.03.2012 (Rs. in millions) |
|
a. Guarantees given - |
|
|
|
(i) to excise authorities |
1.200 |
1.200 |
|
(ii) by Banks on behalf
of the Company (excluding relating to joint
venture) |
687.800 |
584.000 |
|
b. Claims against the
Company not acknowledged as debts : |
|
|
|
(i) Rates, Taxes, Duties
etc. demanded by various Authorities |
2307.500 |
2139.500 |
|
(ii) Amount demanded by Provident
Fund Authorities which is sub judice |
8.700 |
8.700 |
|
(iii) Rates, Taxes,
Duties etc. |
160.600 |
158.000 |
|
d. Amount payable in
connection with reorganisation of the Company in earlier year |
33.700 |
34.900 |
STATEMENT OF UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30.09.2013
(Rs. in millions)
|
Sl. |
Particulars |
Three months ended 30.09.2013 (Unaudited) |
Three months ended (Unaudited) |
Year to date figure for current period
ended 30.09.2013 (Unaudited) |
|
|
1. |
Income from Operations |
|
|
|
|
|
|
a. |
Net Sales/income from Operations (Net of excise duty) |
12235.800 |
12767.200 |
25003.100 |
|
|
b. |
Other Operating income |
35.600 |
25.400 |
61.000 |
|
|
Total income from operations (net) |
12271.400 |
12792.600 |
2506.400 |
|
|
2. |
Expenses |
|
|
|
|
|
|
a. |
Cost of Materials consumed |
5986.200 |
6739.500 |
12725.700 |
|
|
b. |
Purchase of stock-in-trade |
178.400 |
129.900 |
308.300 |
|
|
c. |
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(182.800) |
(988.700) |
(1171.500) |
|
|
d. |
Employee benefits expense |
1021.400 |
1024.800 |
2046.200 |
|
|
e. |
Depreciation (net of transfer from revaluation reserve) and amortisation expense |
810.700 |
768.600 |
1579.3000 |
|
|
f. |
Power and fuel |
1804.500 |
2165.200 |
3969.700 |
|
|
g. |
Packing and carriage |
1186.800 |
1311.300 |
2498.100 |
|
|
h. |
Other expenses |
1508.700 |
1630.100 |
3138.800 |
|
|
Total Expenses |
12313.900 |
12780.700 |
25094.600 |
|
|
3. |
Profit/(Loss) from operations before other income, |
(42.500) |
11.900 |
(30.600) |
|
|
4. |
Other Income |
202.700 |
332.400 |
535.100 |
|
|
5. |
Profit/(Loss) from ordinary activities before |
160.200 |
344.300 |
504.500 |
|
|
6. |
Finance Costs |
1447.900 |
1343.300 |
2791.200 |
|
|
7. |
Profit/(Loss) from ordinary activities after finance |
(1287.700) |
(999.000) |
(2286.700) |
|
|
8. |
Exceptional items |
-- |
-- |
-- |
|
|
9. |
Profit/(Loss) from ordinary activities before tax (7+8) |
(1287.700) |
(999.000) |
(2286.700) |
|
|
10. |
Tax expense |
|
|
|
|
|
|
a. |
Current tax charge/(credit) |
-- |
-- |
-- |
|
|
b. |
Deferred tax charge/(credit) |
-- |
-- |
-- |
|
|
c. |
Fringe benefit tax charge/(credit) |
-- |
-- |
-- |
|
11. |
Net Profit/(Loss) from ordinary activities after tax (9-10) |
(1287.700) |
(999.000) |
(2286.700) |
|
|
12. |
Extraordinary items (net of tax expense Rs. Nil) |
--- |
-- |
-- |
|
|
13. |
Net Profit/(Loss) for the period (11-12) |
(1287.700) |
(999.000) |
(2286.700) |
|
|
14. |
Paid-up equity share capital (Face value Rs. 10.00 per share) |
1097.700-- |
1097.700 |
1097.700 |
|
|
15. |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year |
|
-- |
|
|
|
16. |
Earnings Per Share (EPS) |
|
|
|
|
|
|
(Face value of Rs. 10.00 per share) |
|
|
|
|
|
|
a. |
Basic and Diluted EPS before extraordinary items |
(11.73) |
(19.91) |
(28.53) |
|
|
b. |
Basic and Diluted EPS after extraordinary items |
(11.73) |
(19.91) |
(28.53) |
PART II
Select information
for the quarter ended 30.09.2013
|
Sl. |
Particulars |
Three months ended 30.09.2013 (Unaudited) |
Three months ended (Unaudited) |
Year to date figure for current period
ended 30.09.2013 (Unaudited) |
||
|
A. |
PARTICULARS OF SHARE HOLDING |
|
|
|
||
|
1. |
Public Shareholding |
|
|
|
||
|
|
- |
Number of shares |
48629134 |
48633617 |
48629134 |
|
|
|
- |
Percentage of shareholding |
44.30% |
44.31% |
44.30% |
|
|
2. |
Promoters and Promoter Group Shareholding |
|
|
|
||
|
|
a. |
Pledged/Encumbered |
|
|
|
|
|
|
|
- |
Number of shares |
NIL |
NIL |
NIL |
|
|
|
- |
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
- |
- |
- |
|
|
|
- |
Percentage of shares (as a % of the total share capital of the company) |
- |
- |
- |
|
|
b. |
Non encumbered |
|
|
|
|
|
|
|
- |
Number of shares |
54097641 |
54093158 |
54097641 |
|
|
|
- |
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100% |
100% |
100% |
|
|
|
- |
Percentage of shares (as a % of the total share capital of the company) |
49.28% |
49.28% |
49.28% |
|
B. |
Investor complaints |
Three months ended |
|
|
Pending at the beginning of the quarter |
NIL |
|
|
Received during the quarter |
48 |
|
|
Disposed off during the quarter |
48 |
|
|
Remaining unresolved at the end of the quarter |
NIL |
STATEMENT ON
SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Sl. |
Particulars |
Three months ended 30.09.2013 (Unaudited) |
Three months ended (Unaudited) |
Year to date figure for current period
ended 30.09.2013 (Unaudited) |
|
|
1. |
Segment Revenue |
|
|
|
|
|
|
a. |
Tyres |
7646.700 |
8050.600 |
15697.300 |
|
|
b. |
Cement |
3871.600 |
4062.800 |
7934.400 |
|
|
c. |
Rayon, T.P. and Chemicals |
717.500 |
653.800 |
1371.300 |
|
|
Total |
12235.800 |
12767.200 |
25003.100 |
|
|
|
Less : Inter Segment Revenue (at cost) |
-- |
-- |
-- |
|
|
|
Net sales/Income from Operations |
12235.800 |
12767.200 |
25003.100 |
|
|
2. |
Segment Results (Profit/(Loss) before tax and interest) |
|
|
|
|
|
|
a. |
Tyres |
105.300 |
322.700 |
428.000 |
|
|
b. |
Cement |
266.800 |
483.200 |
750.000 |
|
|
c. |
Rayon, T.P. and Chemicals |
35.000 |
0.300 |
35.300 |
|
|
d. |
Unallocated |
(9.300) |
(9.700) |
(19.000) |
|
|
Total |
397.800 |
796.500 |
1194.300 |
|
|
|
Less : |
|
|
|
|
|
|
i. |
Interest |
1281.700 |
1306.100 |
2587.800 |
|
|
ii. |
Other un-allocable expenditure |
489.700 |
491.400 |
981.100 |
|
|
iii. |
Other un-allocable income |
85.900 |
2.000 |
87.900 |
|
|
Other un-allocable expenditure net off Other |
403.800 |
489.400 |
893.200 |
|
|
|
Total Profit/(Loss) before tax |
(1287.700) |
(999.000) |
(2286.700) |
|
|
3. |
Capital Employed (Segment Assets-Segment Liabilities) |
|
|
|
|
|
|
a. |
Tyres |
39302.400 |
35257.500 |
39302.400 |
|
|
b. |
Cement |
17202.000 |
17393.700 |
17202.000 |
|
|
c. |
Rayon, T.P. and Chemicals |
1116.200 |
1075.100 |
1116.200 |
|
|
d. |
Unallocated |
166.800 |
170.700 |
166.800 |
|
|
Total |
57787.400 |
53897.000 |
57787.400 |
|
Notes:
·
Period end mark-to-market losses (net) recognised
in respect of outstanding derivative contracts is Rs. 20.300 Millions. (Half
year ended 30th September, 2012 – Rs. 33.900 Millions and year ended 31st
March, 2013 - Rs. 25.600 Millions)
·
The Company's Spun Pipes and Foundries Unit
continues to be under suspension of work effective 2nd May, 2008.
·
Pending disposal (consented by the shareholders in
March, 2006) of the Company's Hindusthan Heavy Chemicals Unit, the revenue/expenses
of the unit (insignificant in terms of the Company's total revenue/expenses)
have been and will be included in these and subsequent results till its
disposal).
·
The Company had to declare suspension of work at
the unit effective 8th December, 2010 in consequence of illegal
strike/activities by workmen.
·
Other expenses include Rs. 416.700 Millions arising
out of restatement of foreign currency loans outstanding as on 30th September,
2013.
·
Details of utilisation of the proceeds from the
Rights Issue of Rs 4161.800 Millions are given Below
|
|
Proposed Utilization (Rs. In Millions) |
Utilisation
upto 30.09.2013 (Rs. In Millions) |
|
Repayment/prepayment of
Debt |
3121.300 |
950.000 |
|
General Corporate purposes (including
issue related expenses) |
1040.500 |
1040.500 |
|
|
4161.800 |
1990.500 |
·
The unutilised amount of Rs 2171.300 Millions has
remained invested in fixed deposit with Scheduled bank.
·
The Statutory Auditors of the Company have carried
out the Limited Review of the above unaudited financial results for the quarter
and half year ended 30th September, 2013 in terms of Clause 41 of the Listing
Agreement.
·
Figures for the comparable periods have been
re-grouped/re-classified wherever considered necessary.
STATEMENT OF
ASSETS AND LIABILITIES
|
|
Particulars
|
30.09.2013 |
|
|
|
|
|
A |
Equity And Liabilities |
|
|
1 |
Shareholders' Funds |
|
|
|
(A) Share Capital |
1097.700 |
|
|
(B) Reserves And Surplus |
6479.700 |
|
|
Shareholders'
Funds |
7577.500 |
|
3 |
Non-Current Liabilities |
|
|
|
(A) Long-Term Borrowings |
24454.100 |
|
|
(B) Deferred Tax Liabilities (Net) |
0.000 |
|
|
(C) Other Long-Term Liabilities |
0.000 |
|
|
(D) Long-Term Provisions |
0.000 |
|
|
Non-Current
Liabilities |
24454.100 |
|
4 |
Current Liabilities |
|
|
|
(A) Short-Term Borrowings |
19686.000 |
|
|
(B) Trade Payables |
5537.900 |
|
|
(C) Other Current Liabilities |
10856.600 |
|
|
(D) Short-Term Provisions |
870.900 |
|
|
Current
Liabilities |
36951.400 |
|
|
TOTAL EQUITY AND
LIABILITIES |
|
|
B |
Assets |
|
|
1 |
Non-Current Assets |
|
|
|
(A) Fixed Assets |
|
|
|
Tangible Assets |
33629.000 |
|
|
Intangible Assets |
151.900 |
|
|
Capital work in progress |
6909.100 |
|
|
(B) Non-Current Investments |
663.600 |
|
|
(C) Deferred Tax Assets (Net) |
0.000 |
|
|
(D) Long-Term Loans And Advances |
1369.100 |
|
|
(E) Other Non-Current Assets |
0.000 |
|
|
Non-Current
Assets |
|
|
2 |
CURRENT ASSETS |
|
|
|
(A) Current Investments |
0.000 |
|
|
(B) Inventories |
10612.200 |
|
|
(C) Trade Receivables |
9367.000 |
|
|
(D) Cash And Bank Balances |
3160.500 |
|
|
(E) Short-Term Loans And Advances |
3068.400 |
|
|
(F) Other Current Assets |
52.000 |
|
|
Current Assets |
26260.300 |
|
|
TOTAL ASSETS |
68983.000 |
FIXED ASSETS:
Tangible Assets:
Owned
·
Land
- Freehold
- Leasehold
·
Buildings
·
Plant and Equipments
·
Furniture and Fixtures
·
Office Equipment
·
Vehicles
·
Others:
·
Livestock
·
Railway Siding
Assets taken on Finance Lease
- Vehicle
Intangible Assets:
·
Computer Software
·
Technical Knowhow
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.06 |
|
|
1 |
Rs.102.03 |
|
Euro |
1 |
Rs.85.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
51 |
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.