MIRA
INFORM REPORT
|
Report Date : |
13.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
BLACK ROSE INDUSTRIES LIMITED ( w.e.f. 06.11.2006) |
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Formerly Known
As : |
ASIA FAB LIMITED |
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Registered
Office : |
145/A, Mittal Towers, Nariman Point, Mumbai - 400021, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
01.01.1990 |
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Com. Reg. No.: |
11-054828 |
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Capital
Investment / Paid-up Capital : |
Rs.38.720
Millions |
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CIN No.: [Company Identification
No.] |
L17120MH1990PLC054828 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA06716D |
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PAN No.: [Permanent Account No.] |
AAACA3676P |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
The Company is engaged in manufacturing of cotton yarn, gloves, fabrics, trading in major chemicals like resorcinol, polyacrylamide etc. The company is also in the business of power generation. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 480000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record.
There appears sharp fall in its profitability and sales turnover during 2012. However, trade relations are reported to be fair. Business is active.
Payments are slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
145/A, Mittal Towers, Nariman Point, Mumbai - 400021,
Maharashtra, India |
|
Tel. No.: |
91-22-43337200 / 43110100 |
|
Fax No.: |
91-22-22873022 / 43110114 |
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E-Mail : |
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Website : |
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Plant : |
Shree Laxmi Co-Operative Industrial Estate Limited, Plot No. 11 To 18, Hatkanangale, District - Kolhapur, Maharashtra, India |
Plot No. 675, GIDC, Jhagadia Industrial Estate, Jhagadia – 393110, Bharuch, Gujarat.
DIRECTORS
As on: 28.09.2012
|
Name : |
Mr. Shivhari Halan |
|
Designation : |
Director |
|
Address : |
Patil Heritage, 5134/2/2/1 Bhosale Nagar Building B 26A – 26B, Pune –
411007, Maharashtra, India |
|
Date of Birth/Age : |
15.10.1955 |
|
Date of Appointment : |
23.01.1996 |
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DIN No.: |
00220514 |
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Name : |
Mr. Anup Jatia |
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Designation : |
Executive Director |
|
Address : |
111- A, Somerset House, 61 G, Bhulabhai Desai Road, Mumbai - 400026
Maharashtra, India |
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Date of Birth/Age : |
19.04.1971 |
|
Date of Appointment : |
18.01.2007 |
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DIN No.: |
00351425 |
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Name : |
Mr. Basant Kumar Goenka |
|
Designation : |
Director |
|
Address : |
94/ S Block – E, New Alipore, Kolkata - 700053, West Bengal, India |
|
Date of Birth/Age : |
29.01.1974 |
|
Date of Appointment : |
28.03.2003 |
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DIN No.: |
00227217 |
KEY EXECUTIVES
|
Name : |
Mr. C.P. Vyas |
|
Address : |
B – 3/12 Mahesh Nagar, S.V. Road, Goregaon (West), Mumbai – 400062,
Maharashtra, India |
|
Designation : |
Company Secretary |
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Date of Birth/Age : |
10.03.1955 |
|
Date of Appointment : |
13.12.2004 |
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PAN No.: |
AAHPU6797R |
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COMPOSITION OF
AUDIT COMMITTEE |
|
|
Name : |
Mr. Basant Todi |
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Designation : |
Chairman |
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|
Name : |
Mr. Anup Jatia |
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Designation : |
Member |
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|
Name : |
Mr. Basant Kumar Goenka |
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Designation : |
Member |
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COMPOSITION OF
SHAREHOLDERS’ / INVESTORS’ GRIEVANCES COMMITTEE |
|
|
Name : |
Mr. Basant Todi |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Shivhari Halan |
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Designation : |
Member |
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|
Name : |
Mr. Anup Jatia |
|
Designation : |
Member |
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|
Name : |
Mr. Basant Kumar Goenka |
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Designation : |
Member |
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COMPOSITION OF
REMUNERATION COMMITTEE |
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|
Name : |
Mr. Basant Todi |
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Designation : |
Chairman |
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|
Name : |
Mr. Shivhari Halan |
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Designation : |
Member |
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|
Name : |
Mr. Basant Kumar Goenka |
|
Designation : |
Member |
SHAREHOLDING PATTERN
As on: 31.12.2012
|
Names
of Shareholders |
No.
of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
239850 |
0.62 |
|
|
239850 |
0.62 |
|
|
|
|
|
|
28800000 |
74.38 |
|
|
28800000 |
74.38 |
|
Total shareholding of Promoter and Promoter Group (A) |
29039850 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
800 |
0.00 |
|
|
200 |
0.00 |
|
|
1000 |
0.00 |
|
|
|
|
|
|
435333 |
1.12 |
|
|
|
|
|
|
6195222 |
16.00 |
|
|
571258 |
1.48 |
|
|
2477337 |
6.40 |
|
|
271800 |
0.70 |
|
|
1904292 |
4.92 |
|
|
5358 |
0.01 |
|
|
295887 |
0.76 |
|
|
9679150 |
25.00 |
|
Total Public shareholding (B) |
9680150 |
25.00 |
|
Total (A)+(B) |
38720000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
38720000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in manufacturing of cotton yarn, gloves, fabrics, trading in major chemicals like resorcinol, polyacrylamide etc. The company is also in the business of power generation. |
PRODUCTION STATUS (As on 31.03.2010)
|
a) |
CAPACITIES |
2009-2010 |
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Licensed Capacity: |
N.A. |
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|
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Installed
Capacity: (as certified by the
management) |
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i) |
Yarn (in Metric Tons) |
600 |
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ii) |
Fabrics (in Meters) |
30 Lacs |
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iii) |
Gloves |
N.A. |
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(Manufactured by third Parties) |
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iv) |
Renewable Energy (windmills) |
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Rajasthan Unit |
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Annual capacity in KWH |
7008000 |
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Gujarat Unit |
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Annual capacity in KWH |
7008000 |
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Particulars |
Unit |
Actual
Production |
|
GLOVES |
DP |
40,165 |
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FABRICS: |
Kg. |
14,304 |
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COTTON
YARN |
Kgs. |
232,020 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· ING Vysya Bank Limited · Yes Bank Limited, 9th Floor, Nehru Centre, Discovery Of India, Dr. Annie Besant Road, Worli,, Mumbai - 400018, Maharashtra, India |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Karnavat and Company Chartered Accountants |
|
Address : |
Kitab Mahal, 192, Dr. D.N. Road, Mumbai – 400001, Maharashtra, India |
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Holding company : |
Wedgewood Holdings Limited, Mauritius |
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Wholly-owned foreign
subsidiary company : |
B.R.Chemicals Company Limited Osaka, Japan |
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Enterprises owned
or significantly influenced by any management personnel or their relatives : |
· Black Rose Trading Private Limited · Tozai Safety Private Limited · Tozai Enterprises Private Limited · Accent Industries Limited · Fukui Accent Trading (India) Private Limited · Wedgewood Holdings LLP |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.1/- each |
Rs.80.000 Millions |
|
|
|
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|
|
|
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38720000 |
Equity Shares |
Rs.1/- each |
Rs.38.720
Millions |
|
|
|
|
|
|
|
|
|
|
Reconciliation of the
Shares outstanding at the beginning and at the end of the reporting period
Equity Shares
(Rs. In Millions)
|
Particulars |
As on 31.03.2012 |
As on 31.03.2011 |
||
|
Nos. |
Rs. |
Nos. |
Rs. |
|
|
At the beginning of the period |
19360000 |
19.360 |
19360000 |
19.360 |
|
Add: Bonus Shares issued during the year |
19360000 |
19.360 |
-- |
-- |
|
Outstanding at the
end of the period |
38720000 |
38.72 |
19360000 |
19.360 |
Terms/Rights attached
to equity shares
The company has only one class of equity share having a par value of Rs.1/- per share. Each holder of equity shares is entitled to one vote per share and dividend per share on pari passu basis. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors except interim dividend is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be proportion to the number of equity shares held by the shareholders.
Shares held by
holding/ultimate holding company and/or their subsidiaries/associates
|
Particulars |
As on 31.03.2012 |
As on 31.03.2011 |
|
Nos. |
Nos. |
|
|
Holding Company |
|
|
|
Name of the Company |
|
|
|
Wedgewood Holdings Limited, Mauritius. |
|
|
|
Equity Shares of Rs.1/- each fully paid |
|
|
|
Total |
28800000 |
14400000 |
Details of
shareholders holding more than 5% share in the company
|
Particulars |
As on 31.03.2012 |
As on 31.03.2011 |
||
|
Nos. |
% of holding |
Nos. |
% of holding |
|
|
Equity shares of ` 1/ each fully paid |
|
|
|
|
|
Name of the
shareholder |
|
|
|
|
|
Wedgewood Holdings Limited, Mauritius |
28800000 |
74.38 |
14400000 |
74.38 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
38.720 |
19.360 |
19.360 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
82.733 |
99.687 |
74.480 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
121.453 |
119.047 |
93.840 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
170.227 |
165.149 |
77.813 |
|
|
2] Unsecured Loans |
29.873 |
(3.912) |
21.104 |
|
|
TOTAL BORROWING |
200.100 |
161.237 |
98.917 |
|
|
DEFERRED TAX LIABILITIES |
20.998 |
15.744 |
11.426 |
|
|
|
|
|
|
|
|
TOTAL |
342.551 |
296.028 |
204.183 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
87.582 |
95.403 |
105.367 |
|
|
Capital work-in-progress |
110.413 |
45.593 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.621 |
0.000 |
4.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
129.267
|
171.259 |
120.662 |
|
|
Sundry Debtors |
169.685
|
212.882 |
96.309 |
|
|
Cash & Bank Balances |
10.067
|
13.070 |
20.235 |
|
|
Other Current Assets |
3.086
|
2.738 |
3.558 |
|
|
Loans & Advances |
48.223
|
24.834 |
42.446 |
|
Total
Current Assets |
360.328
|
424.783 |
283.210 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
182.036
|
232.517 |
163.338 |
|
|
Other Current Liabilities |
32.908
|
32.684 |
12.106 |
|
|
Provisions |
2.449
|
4.550 |
13.450 |
|
Total
Current Liabilities |
217.393
|
269.751 |
188.894 |
|
|
Net Current Assets |
142.935
|
155.032 |
94.316 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
342.551 |
296.028 |
204.183 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
809.875 |
876.003 |
513.378 |
|
|
|
Export Incentives and Benefits |
0.000 |
0.000 |
1.470 |
|
|
|
Other Income |
3.274 |
4.111 |
9.577 |
|
|
|
Exchange Fluctuation Gain |
0.000 |
0.000 |
6.975 |
|
|
|
TOTAL (A) |
813.149 |
880.114 |
531.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
1.995 |
24.256 |
|
|
|
|
Purchase of traded goods |
682.553 |
791.751 |
|
|
|
|
work- in- progress and traded goods |
41.753 |
(50.274) |
|
|
|
|
Employee Benefits Expense |
10.208 |
11.736 |
|
|
|
|
Other Expenses |
44.790 |
38.226 |
|
|
|
|
TOTAL (B) |
781.299 |
815.695 |
478.087 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
31.850 |
64.419 |
53.313 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
18.134 |
11.636 |
3.122 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
13.716 |
52.783 |
50.191 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11.330 |
11.185 |
3.035 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2.386 |
41.598 |
47.156 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(0.020) |
14.141 |
14.527 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2.406 |
27.457 |
32.629 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
50.880 |
18.251 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
50.880 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports at F.O.B. Value |
17.967 |
40.340 |
42.630 |
|
|
|
Commission Income |
1.159 |
0.936 |
6.009 |
|
|
TOTAL EARNINGS |
19.126 |
41.276 |
48.639 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
17.014 |
389.131 |
|
|
|
Components and Spare parts |
0.000 |
0.006 |
0.000 |
|
|
|
Capital Goods |
0.772 |
0.733 |
0.000 |
|
|
TOTAL IMPORTS |
0.772 |
17.753 |
389.131 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.06 |
0.71 |
1.69 |
|
QUARTERLY /
SUMMARISED RESULTS
(Rs.
In Millions)
|
Particulars (Rs.Cr) |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
258.400 |
207.900 |
165.300 |
|
Total Expenditure |
238.200 |
195.200 |
160.400 |
|
PBIDT (Excl OI) |
20.300 |
12.700 |
4.900 |
|
Other Income |
0.700 |
0.900 |
1.200 |
|
Operating Profit |
21.000 |
13.600 |
6.200 |
|
Interest |
3.500 |
3.400 |
3.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
175.000 |
10.200 |
3.200 |
|
Depreciation |
29.000 |
2.900 |
3.000 |
|
Profit Before Tax |
146.000 |
7.300 |
0.200 |
|
Tax |
55.000 |
3.100 |
0.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
91.000 |
4.200 |
0.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
91.000 |
4.200 |
0.200 |
.
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.30
|
3.12 |
6.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.29
|
4.75 |
9.19 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.53
|
7.10 |
12.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.35 |
0.50 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.65
|
1.35 |
1.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.66
|
1.57 |
1.50 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
NATURE OF OPERATIONS:
The Company is engaged in manufacturing of cotton yarn, gloves, fabrics, trading in major chemicals like resorcinol, polyacrylamide etc. The company is also in the business of power generation by setting up windmills in the State of Rajasthan and Gujarat.
OPERATIONAL
PERFORMANCE:
The year started off well and the company performed with strong results in the first half. The second half of the year, however, was different. Starting with the crisis in Greece, the Indian rupee depreciated steeply and strongly till the end of the 3rd quarter and into the starting of the 4th quarter. The slowdown in global exports led to a reduction in demand from domestic end users for the company’s products, due to which the company’s turnover was adversely affected in the 3rd quarter. Despite all this, the company grew by approximately 7%, mostly from the operations of the company’s subsidiary in Japan formed in April 2011.
While turnover was restricted by the general economic slowdown, profitability was hit by the depreciation in the Indian rupee. Almost all the products sold by the company’s chemical division are imported by the company. Due to the unexpected speed and extent of the Indian rupee’s depreciation against the US Dollar, remittances for these goods were made at exchange rates largely varying from the initial estimates used when selling the goods. In essence, the company’s hedging strategies at the time had not considered the possibility of the Indian rupee depreciating by more than 20% in only 5 months.
UNSECURED LOAN:
|
Particulars |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
Long Term Borrowing |
|
|
|
Public Deposits |
26.450 |
0.000 |
|
Inter Body Corporate Deposit |
9.200 |
0.000 |
|
Interest free Inter Body Corporate Loan |
1.500 |
1.500 |
|
Interest free Security Deposits |
2.000 |
1.500 |
|
Less:Current maturities of long term borrowings disclosed under the head “other current liabilities” |
(9.277) |
(6.912) |
|
Total |
29.873 |
(3.912) |
BUSINESS SCENARIO:
The difficult business scenario during the year in review was triggered by the panic created by the Greek crisis, and it continued without respite because of the lack of political and economic clarity in our nation. Government policies shunning foreign and domestic investment, delays in rolling out of the GST, and a lack 9 ANNUAL REPORT 2011-12 of resolve to tackle the crashing Indian rupee all have adversely affected the business scenario.
Internationally, the negative sentiments from Europe served to pull down prices of a wide range of chemicals and other commodities. Falling markets scare buyers, and this is what was witnessed during the year.
MANUFACTURING
FACILITY AT JHAGADIA, GUJARAT
The company is setting up a plant in Jhagadia, Gujarat, to produce acrylamide monomer under an exclusive technical license from Mitsui Chemicals, Inc., of Japan. All major equipment has been ordered but work on plant establishment could not be carried due to delay in receipt of environmental clearance from government authorities. The environmental clearance is expected very soon and plant construction will start in full swing.
WHOLLY OWNED
SUBSIDIARY IN JAPAN – BR CHEMICALS COMPANY LIMITED
The company’s wholly owned Japanese subsidiary was formed in April 2011 and began operation from May 2011. Being the first year of operation, business development was given priority. The company declared a small loss of Japanese Yen 0.78 million (Rs.0.476 Million) against a turnover of Japanese Yen 204.39 Million (Rs. 124.200 Millions). The operations of the subsidiary have since improved, and your Directors expect the subsidiary to contribute for around 30% of the company’s turnover during FY2013.
AWARDS AND
RECOGNITIONS:
The company received the Best SME for Corporate Governance award at the 3rd Business Today Yes Bank
SME Awards 2011 event held in New Delhi.
MANAGEMENT DISCUSSION AND ANALYSIS
The Economy:
The financial year 2011 - 2012 was a disappointing year for their nation’s economic growth. Their economy slowed down to a growth rate of 6.5%, the lowest annual growth since 2003 barring the period from 2008 - 2009. All major sectors of the economy saw a slowing of growth - the service sector by grew by 8.9%, industry by 3.4%, and agriculture by 2.8%, as compared to 9.3%, 7.2%, and 7% respectively in the previous year.
The Indian economy was impacted by global uncertainties, and faced significant domestic challenges including high inflation, tight monetary conditions, low investment, and a paralysis in policy making. However, Their government expects growth to pick up in small measures from the second quarter of 2012 – 2013, and expects the economy to grow by 7.6% in the next fiscal year.
The Indian rupee weakened against the US dollar to a historically low level of Rs. 54, a crash of more than 20% during the year. The uncertainties in the foreign exchange markets continue into the current year, with rates moving between Rs. 51 and Rs. 57 to the US Dollar.
After hiking key policy rates 13 times in the past two years, the Reserve Bank of India has cut the cash reserve ratio by 125 basis points and the repo rate by 50 basis points during the past five months. Despite of this, interest rates remain high and new investments in plant and machinery are scarce.
Although inflation and interest rates are anticipated to ease from the current levels, slowing investments and declining capital formation may have a greater bearing on the prospective growth of Indian economy.
The Industry
Chemical
The chemical industry during the year 2011 – 2012 went through a rough time. The crisis in Europe led to a slowdown of export industries in China, India, and many parts of the world. This in turn caused a reduction in demand for a wide range of petrochemicals, sending feedstock prices down. High inflation ensured that interest costs remained high, causing a slowdown in new investments.
The main activity of the company is the sales and distribution of specialty, performance, and pharmaceutical chemicals. The company also exports to and sources chemicals for its foreign principals. The chemicals sold domestically by the company are mostly imported from Japan, Germany, Korea, and China, while some are procured from domestic manufactures The Company works closely with all its principals and customers and strives to function as a reliable partner and supplier to them.
Textile
The textile industry during the year 2011 – 2012 witnessed poor growth. Again, due to the crisis in Europe, other world economies also saw poor demand for textiles.
The company’s area of operation in this sector is in the manufacture of fabrics, yarn, and made ups. While most of the fabric produced is used for the manufacture of made-ups by the company, the yarn is exported.
Renewable Energy
The Indian wind power industry has commissioned 3,200 MW of additional wind power generation capacity despite the general economic slowdown during 2011 – 2012.
The company has two windmills, one in Rajasthan and the other in Gujarat, totaling 1.6MW. The company has entered into Power Purchase Agreements with the respective State Electricity Boards and all power generated is sold accordingly.
Outlook
The outlook for the future is promising. The company is in the process of establishing India’s first and only acrylamide plant in Jhagadia. This is a speciality monomer with growing needs and application in India. The chemical sales and distribution business is being strengthened through new product additions, supported by a dynamic technical team. The textile business is slated to grow with the acceptance of new products developed for clients.
The company expects a minimum consolidated turnover of Rs.1200.000 Millions for the current year.
Contingent
liabilities not provided for in respect of:
(i) Custom duty demand of Rs.1.489 Millions for which the company has preferred appeal ( P.Y. Rs.1.489 Millions)
(ii) Income Tax demand relating to Assessment year 2005-06 for which the company has preferred appeal with the higher authorities C.Y.Rs. Nil (P.Y. Rs. 0.308 Millions)
(iii) Bank Guarantee given to Government authorities Rs.0.015 Millions (P.Y. Rs. 0.015 Millions)
(iv) Central Sales Tax liability of Rs.0.850 Millions in respect of financial year 2010-11 as per MVAT Audit completed in the current financial year, as the said liability is on account of non receipt of ‘C’ forms from various payable customers and the company is awaiting the receipt of said forms. The liabilities if any will be accounted in the books of account in the year in which the final liability is determined.
PRESS RELEASE:
Black Rose Industries
to set up Acryl amide Monomer Plant in India
MUMBAI, India (January 26, 2011) - India’s Black Rose Industries Limited has entered into a Technology Licensing Agreement with Japan’s Mitsui Chemicals, Inc. (MCI), for setting up a facility for the production of 10,000MT per year of acrylamide monomer solution in India.
The $7 million acrylamide monomer plant will be located in the chemical park of Jhagadia in the state of Gujarat. The project is currently in the engineering and procurement stage and is expected to begin commercial production in January 2012.
The plant will use MCI’s bio-catalytic process, an environmentally friendly technology that uses a high performance enzyme catalyst developed by MCI to produce acrylamide from acrylonitrile. Polymers made using acrylamide have principal application in the fields of textiles, water treatment, paper strengthening, and oil recovery, fields that have seen consistently strong growth.
With no local producers, acrylamide monomer is currently entirely imported in India. “The signing of the License Agreement in September 2010 marks an important milestone. Our plant is designed to consistently and competitively supply high quality acrylamide monomer to our customers, and we believe this will provide key support to the rapidly developing acrylamide-based polymer industry in India. We plan to increase production of the monomer solution from 10,000MT to 20,000MT in the first year and then phase-wise to 40,000MT by 2015. We are targeting acrylamide sales of $55 million by 2015,” said Anup Jatia, Executive Director of Black Rose Industries.
Black Rose Industries Limited. is a Mumbai-based manufacturing and distribution company with three business divisions – chemical, textile, and renewable energy. The chemical division is a leading distributor of speciality, fine, and performance chemicals in India.
NEWS:
MUMBAI: The city-based textile manufacturing company Black Rose Industries has signed a foreign technology license agreement with Japan-based chemical company Mitsui Chemicals for the manufacture of of specialty monomer plant.
The Gujarat Industrial Development Corporation (GIDC) has alloted land in Jhagadia, for the proposed plant. The plant with a capacity of 10,000 MT, is expected to start commercial production in early 2012. The company also received the No Objection Certificate from the Gujarat Pollution Control Board (GPCB) and the construction of the plant is expected to start before the end of the month.
Under its future plans, the company has decided to set up a wholly owned subsidiary in Japan that will focus on further developing the business of chemicals between India and Japan.
Black Rose Industries Limited formerly known as Asia Fab Limited manufactures and sells textile products, such as cotton yarn, gloves, and fabrics. It also engages in the import, distribution, and export of various fine and specialty chemicals.
FIXED ASSETS:
· Leasehold Land
· Factory Building
· Office Equipments
· Electric Installation
· Factory Equipments
· Plant and Machinery
· Furniture and Fittings
· Computers
· Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, bloked, 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] on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.96 |
|
|
1 |
Rs.84.49 |
|
Euro |
1 |
Rs.72.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
TOTAL |
|
36 |
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.