1. Summary Information
|
|
|
Country |
India |
|
Company Name |
KESORAM INDUSTRIES LIMITED |
Principal Name 1 |
Mr. Basant Kumar Birla |
|
Status |
Moderate |
Principal Name 2 |
Mr. Krishna Gopal Maheshwari |
|
|
|
Registration # |
21-003429 |
|
Street Address |
9/1, Birla
Building, 8th Floor, RN Mukherjee Road, Kolkata – 700001, West
Bengal, India |
||
|
Established Date |
18.10.1919 |
SIC Code |
-- |
|
Telephone# |
91-33-22435453/ 22429454 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-33-22109455 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Yarns |
|
|
# of employees |
16695 (Approximately) |
Product Name 2 |
Paper |
|
Paid up capital |
Rs. 457,433,180/- |
Product Name 3 |
cement |
|
Shareholders |
-Promoter and Promoter Group 32.05% -Public Holding – 67.95% |
Banking |
Axis Bank Limited |
|
Public Limited Corp. |
Yes |
Business Period |
93 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (59) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Joint Venture : |
-- |
Gondkhari Coal Mining Limited |
|
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
12504,600,000 |
Current Liabilities |
13735,900,000 |
|
Inventories |
9951,600,000 |
Long-term Liabilities |
41053,400,000 |
|
Fixed Assets |
35872,100,000 |
Other Liabilities |
1287,700,000 |
|
Deferred Assets |
000 |
Total Liabilities |
56,077,000,000 |
|
Invest& other Assets |
6898,800,000 |
Retained Earnings |
8692,700,000 |
|
|
|
Net Worth |
9150,100,000 |
|
Total Assets |
65,227,100,000 |
Total Liab. & Equity |
65,227,100,000 |
|
Total Assets (Previous Year) |
64,559,200,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
59,208,600,000 |
Net Profit |
3305,100,000 |
|
Sales(Previous yr) |
54,384,300,000 |
Net Profit(Prev.yr) |
578,600,000 |
MIRA INFORM REPORT
|
Report Date : |
04.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
KESORAM
INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
9/1, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
18.10.1919 |
|
|
|
|
Com. Reg. No.: |
21-003429 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 457.433 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17119WB1919PLC003429 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALK03134F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCK2417P |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturers of Rayon Filament Yarns, Paper, Cement, Tyres, Cast Iron Pipe
Fittings and Chemicals. |
|
|
|
|
No. of Employees
: |
16695 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 1800000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a flagship company of 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 businessman.
Subject gets good support from its Group Companies. Fundamental appears to be
healthy and strong. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A1 |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation. It carry lowest credit risk. |
|
Date |
September 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
9/1, Birla Building, 8th Floor, RN Mukherjee Road, Kolkata
– 700001, West Bengal, India |
|
Tel. No.: |
91-33-22435453 / 22429454 |
|
Fax No.: |
91-33-22109455 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory: |
Cement section: · Sedam, District Gulbarga, Karnataka-585222, West Bengal India Tel No :- 91-8441-276005 / 277403 Fax No :- 91-8441-276139 E-mail :- communication@vasavadattacement.com ·
Survey
No.296/7/4, I.D.A Bollaram Village, Jinnaram Mandel, Medak Dist. - 502325,
Andhra Pradesh, India ·
T-3
MIDC Chincholi, Taluk : Mohal Solapur-413255,
Maharashtra, India Tel No :- 91217-2357060 · Basantnagar, District Karimnagar, Andhra Pradesh-505187, India Tel No :- 91-8728-228122/8125/8156 Fax No :- 91-8728-228160 Email: kesoram3@hd2.dot.net.in/ communication@kesoramcement.com Automobile Tyres and Tubes : · P. O. Chanpur, Via Kuruda, Balasore, Orissa-756056, India Tel No :- 91-6782-254259/780/620 Fax No :- 91-6782-254225 E-mail :- btbls@cal2.vsnl.net.in ·
Gram Khedimubarakpur, Tehsil
Laksar, Dist. Haridwar, Uttarakhand-247 663, India
Tel No :- 91-1332-256000/256001
Fax No :- 91-1332 – 255177 Rayon and
Transparent Paper: · .O. Nayasarai, Railway Station, Kuntighat, on Howrah – Katwa Route Hooghly – 712513 West Bengal, India Tel No :- 91-33-26846431 / 34 / 26846457 Fax No :-91-33-2686461 Email:- kesoram@rayonworks.com Spun pipe and Foundries · P.O. Adcconagar, Bansberia, Dist. Hooghly, West Bengal – 712 121 Tel. No : 91-33-26346462 / 26346465 / 26346620 Fax No: 91-33-26346621 E-Mail : spunpipe@cal.vsnl.in Heavy Chemicals · 19, B. T. Road, Khardah, P. O. Balaram Dharma, Sopan Kolkata – 700 116, West Bengal, India Tel.No:91-33-25532879/5183 Fax No: 91-33-25533860/25839218 Email: hhcl_fac@vsnl.net/ |
|
|
|
|
|
|
|
Branch Office 1: |
10-3-316/A, Crystal Towers, 2nd Floor,
Above Andhra Bank, Masab Tank, Hyderabad 500028, Andhra. Pradesh, India |
|
Tel. No.: |
91-40-23342296/8056 |
|
Fax No.: |
91-40-23344109/7821 |
|
E-Mail : |
|
|
|
|
|
Branch Office 2: |
10-3-316/A, Crystal Towers, 2nd Floor
and 3rd Floor Above Andhra Bank, Masab Tank, Hyderabad 500028,
Andhra. Pradesh, India |
|
Tel. No.: |
91-40-23348896/7843/7613 |
|
Fax No.: |
91-40-23344109/23347821 |
|
E-Mail : |
|
|
|
|
|
Branch Office 3: |
Industry House, 10, Camac Street, Kolkata – 700 017, West Bengal, India |
|
Tel. No.: |
91-33-22824721-24 |
|
Fax No.: |
91-33-22828879 |
|
E-Mail : |
|
|
|
|
|
Branch Office 4: |
Industry House, 11, Camac Street, Kolkata – 700 017, West
Bengal, India |
|
Tel. No.: |
91-33-22824721/24 |
|
Fax No.: |
91-33-22828879 |
|
E-Mail : |
|
|
|
|
|
Branch Office 5: |
Industry House, 12, Camac Street, Kolkata – 700 017, West
Bengal, India |
|
Tel. No.: |
91—33-22822476 |
|
Fax No.: |
91-33-22829370 |
|
|
|
|
Branch Office 5: |
7th Floor, Birla Building, 9/1, R. N. Mukherjee Road, Kolkata-700001, West Bengal, India |
|
Tel. No.: |
91-33-22624411/13 |
|
Fax No.: |
91-33-22624359 |
|
E-Mail : |
|
|
|
|
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Basant Kumar
Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Krishna Gopal
Maheshwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Manjushree
Khaitan |
|
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 Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kashi Prasad Khandeleal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K.C. Jain |
|
Designation : |
Director |
|
|
|
KEY EXECUTIVES
|
Name : |
Mr. Gautam Ganguli |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Suresh Sharma |
|
Designation : |
Sr. Joint President, Commercial |
|
|
|
|
Name : |
Mr. U. S. Asopa |
|
Designation : |
Chief Financial Officer and Sr.
Joint President, Finance |
|
|
|
|
Name : |
Mr. Yashwant Mishra |
|
Designation : |
Sr. Joint President,
Marketing-Cement |
|
|
|
BIRLA TYRES SECTION:
|
|
|
|
Name : |
Mr. Arvind Singh |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Vinai Hudda |
|
Designation : |
,Chief Production Officer |
|
|
|
|
Name : |
Mr. Sanjiv Sinha |
|
Designation : |
Head Sales, Truck and Bus |
|
|
|
|
Name : |
Mr. Debmalya Das |
|
Designation : |
Chief Procurement Officer and Supply Chain Officer |
|
|
|
|
Name : |
Mr. Ashok Ganguly |
|
Designation : |
Chief Marketing Officer |
|
|
|
VASAVADATTA CEMENT
SECTION:
|
|
|
|
Name : |
Mr. D S Bindra |
|
Designation : |
President |
|
|
|
|
Name : |
Mr. P R Sharma |
|
Designation : |
Joint President |
|
|
|
|
Name : |
Mr. C K Jain |
|
Designation : |
Joint President (O and M and TPH) |
|
|
|
|
Name : |
Mr. O.R Sharma, |
|
Designation : |
Sr.Vice President, Commercial |
|
|
|
|
Name : |
Mr. I.K. Purohit, |
|
Designation : |
Sr.Vice President, Sales and
Marketing |
|
|
|
|
Name : |
Mr. R.K. Gandhi, |
|
Designation : |
Vice President, PQC |
|
|
|
|
Name : |
Mr. B.K. Sharma, |
|
Designation : |
Vice President, Mechanical |
|
|
|
|
Name : |
Mr. Rajesh Garg, |
|
Designation : |
Vice President, Mines |
|
|
|
|
Name : |
Mr. S.G. Karwa |
|
Designation : |
Vice President, Finance and
Accounts |
|
|
|
KESORAM CEMENT
SECTION:
|
|
|
|
Name : |
Mr. S V Tapadia |
|
Designation : |
Joint President (Finance and Administration) |
|
|
|
|
Name : |
Mr. Mahesh Agarwal |
|
Designation : |
Vice President (Technical) |
|
|
|
|
Name : |
Mr. Ch. S. Nageshwar Rao |
|
Designation : |
Vice President (PQC) |
|
|
|
|
Name : |
Mr. Ashok Ostwal |
|
Designation : |
Vice President (Sales and Marketing) |
|
|
|
RAYON AND TRANSPARENT
PAPER SECTION:
|
|
|
|
Name : |
Mr. Sachin Saxena, |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. J.P. Bohra, |
|
Designation : |
Sr. Joint President |
|
|
|
|
Name : |
Mr. A K Kejriwal |
|
Designation : |
Vice President (Marketing) |
|
|
|
MAJOR SHAREHOLDERS
As on 30.09.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
540347 |
1.40 |
|
|
11864512 |
30.66 |
|
|
12404859 |
32.05 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
12404859 |
32.05 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
185759 |
0.48 |
|
|
438744 |
1.13 |
|
|
6992473 |
18.07 |
|
|
501608 |
1.30 |
|
|
8118584 |
20.98 |
|
|
|
|
|
|
5076367 |
13.12 |
|
|
|
|
|
|
6781033 |
17.52 |
|
|
4064618 |
10.50 |
|
|
2255982 |
5.83 |
|
|
513304 |
1.33 |
|
|
1742678 |
4.50 |
|
|
18178000 |
46.97 |
|
Total Public
shareholding (B) |
26296584 |
67.95 |
|
Total (A)+(B) |
38701443 |
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) |
45743318 |
0.00 |
|
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Rayon Filament Yarns, Paper, Cement, Tyres, Cast Iron Pipe Fittings
and Chemicals. |
|
|
|
|
Brand Name : |
‘Birla Tyres’, ‘Birla Shakti’ |
GENERAL INFORMATION
|
No. of Employees : |
16695 (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 ·
Standard
Chartered Bank ·
Syndicate Bank ·
The
Hongkong and Shanghai Banking Corpn. Limited ·
The
Royal Bank of Scodand N.V. ·
The
South Indian Bank Limited ·
YES
Bank Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations
: |
------- |
|
|
|
|
Auditors : |
|
|
Name : |
Messrs Price Waterhouse Chartered Accountants |
|
|
|
|
Joint Venture : |
Gondkhari Coal Mining Limited |
|
|
|
|
Other Related Parties :*** |
·
Syt. B.
K. Birla ·
Century
Textiles and Industries Limited ·
Century
Enka Limited ·
Jay Shree
Tea and Industries Limited Note: *** Related Parties in the broader sense oof the term and are included for making
the financial statements more transparent. |
|
|
|
|
Enterprise Having Common Key Management Personnel: |
Mangalam Cement Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Redeemable cumulative
Preference Shares |
Rs.100/- each |
Rs. 500.0000 Millions |
|
400000 |
Redeemable cumulative Preference Shares |
Rs.100/- each |
Rs. 40.000 Millions |
|
66000000 |
Ordinary Shares |
Rs. 10/- each |
Rs. 660.000 Millions |
|
|
Total |
|
Rs. 1200.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45743318 |
Ordinary Shares |
Rs.10/- each |
Rs. 457.430 Millions |
|
|
|
|
|
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 |
457.400 |
457.400 |
457.416 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8692.700 |
12545.100 |
14944.993 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9150.100 |
13002.500 |
15433.640 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
31779.200 |
18693.400 |
18637.152 |
|
|
2] Unsecured Loans |
9274.200 |
13532.100 |
14772.035 |
|
|
TOTAL BORROWING |
41053.400 |
32225.500 |
33409.187 |
|
|
DEFERRED TAX LIABILITIES |
572.100 |
3864.200 |
3284.382 |
|
|
|
|
|
|
|
|
TOTAL |
50775.600 |
49092.200 |
52095.978 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
35872.100 |
36920.800 |
34318.206 |
|
|
Capital work-in-progress |
6235.200 |
2542.70 |
4128.332 |
|
|
|
|
|
|
|
|
INVESTMENT |
663.600 |
658.200 |
514.336 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
9951.600
|
11185.500 |
9161.941
|
|
|
Sundry Debtors |
6724.400
|
6302.000 |
5428.886
|
|
|
Cash & Bank Balances |
695.900
|
728.900 |
804.488
|
|
|
Other Current Assets |
404.700
|
148.000 |
301.337
|
|
|
Loans & Advances |
4679.600
|
6073.100 |
2874.621
|
|
Total
Current Assets |
22456.200
|
24437.500 |
18571.273 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4834.000
|
5185.200 |
|
|
|
Other Current Liabilities |
8901.900
|
9808.600 |
|
|
|
Provisions |
715.600
|
473.200 |
149.925 |
|
Total
Current Liabilities |
14451.500
|
15467.000 |
5436.169 |
|
|
Net Current Assets |
8004.700
|
8970.500 |
13135.104
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
50775.600 |
49092.200 |
52095.978 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
59208.600 |
54384.300 |
47306.546 |
|
|
|
Other Income |
840.000 |
1210.600 |
1250.667 |
|
|
|
TOTAL (A) |
60048.600 |
55594.900 |
48557.213 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Changes in Inventories |
1251.400 |
(1641.300) |
0.000 |
|
|
|
Cost of material Consumed |
34240.200 |
31319.900 |
22322.347 |
|
|
|
Purchase of Stock in Trade |
521.900 |
254.600 |
0.000 |
|
|
|
Manufacturing, Selling and Administrative
Expenses |
0.000 |
0.000 |
18661.606 |
|
|
|
Employee Cost |
3346.800 |
2735.500 |
0.000 |
|
|
|
Miscellaneous Expenses |
20827.500 |
19088.200 |
0.000 |
|
|
|
TOTAL (B) |
60187.800 |
51756.900 |
40983.953 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(139.200) |
3838.000 |
7573.260 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
4101.500 |
2635.700 |
1090.312 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(4240.700) |
1202.300 |
6482.948 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2974.000 |
2725.800 |
1728.003 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
112.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(7102.500) |
(1523.500) |
4754.945 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(3305.100) |
578.600 |
3394.071 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(3797.400) |
(2102.100) |
1360.874 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
0.000 |
0.000 |
240.000 |
|
|
|
Proposed Dividend |
45.700 |
148.7 |
148.665 |
|
|
|
Interim Dividend |
0.000 |
102.900 |
102.922 |
|
|
|
Tax on Proposed Dividend |
7.400 |
24.100 |
24.691 |
|
|
|
Tax on Interim Dividend |
0.000 |
17.100 |
17.491 |
|
|
BALANCE CARRIED
TO THE B/S |
(3850.500) |
2394.900 |
827.105 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
5118.700 |
3393.200 |
3750.367 |
|
|
TOTAL EARNINGS |
5118.700 |
3393.200 |
3750.367 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
8873.500 |
8592.200 |
N A |
|
|
|
Stores & Spares |
164.500 |
113.200 |
N A |
|
|
|
Capital Goods |
1365.400 |
1424.500 |
N A |
|
|
TOTAL IMPORTS |
10403.400 |
10129.900 |
N
A |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
83.02 |
45.95 |
51.88 |
|
|
|
Diluted |
83.02 |
45.95 |
51.88 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
As on 30.06.2012 1st
Quarter |
As on 30.09.2012 2nd
Quarter |
|
Net Sales |
|
15128.400 |
14227.400 |
|
Total Expenditure |
|
14411.400 |
13096.900 |
|
PBIDT (Excl OI) |
|
717.000 |
1130.500 |
|
Other Income |
|
190.200 |
186.200 |
|
Operating Profit |
|
907.200 |
1316.700 |
|
Interest |
|
1238.000 |
1232.000 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(330.800) |
84.700 |
|
Depreciation |
|
771.800 |
768.000 |
|
Profit Before Tax |
|
(1102.600) |
(683.300) |
|
Tax |
|
(143.000) |
(143.000) |
|
Provisions and contingencies |
|
0.000 |
0.0000 |
|
Profit After Tax |
|
(959.600) |
(540.300) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(959.600) |
(540.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.32
|
3.78 |
2.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.99
|
2.80 |
10.05 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.17
|
2.48 |
8.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.77
|
0.11 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.06
|
3.66 |
2.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.55
|
1.58 |
3.41 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
---------------------- |
|
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 |
No |
|
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 |
GENERAL
INFORMATION
Kesoram
Industries Limited (the Company) is a public company domiciled and incorporated
under the provisions of the The Indian Companies Act, 1913. The Company is a
flagship company of the 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
IDENTIFICATION
OF SEGMENTS
The
company's operating businesses are organised and managed separately according
to the nature of products, with each segment representing a strategic business
unit that offers different products and serves different markets. The Company
operates predominantly within the geographical limits of India and accordingly
secondary segments have not been considered.
GENERAL
REVIEW
Total
Revenues of the Company during the year increased by about 8% to Rs. 60050.000 millions. Both major businesses, Tyres and
Cement, recorded revenue growth. Operating margins, however, came under
considerable pressure owing to spiralling input costs. These, in turn, impacted
financing costs, which too showed a steep increase during the year.
MANAGEMENT DISCUSSION AND
ANALYSIS
Industry
Structure and Developments
Tyre
The
Indian Tyre Industry is dominated by five major Indian manufacturers — Apollo
Tyres, Birla Tyres, Ceat Tyres, JK Tyres and MRF — who together account for
more than 85% of the industry turnover. The major market segments of business are
replacement, institutional (Original Equipment Manufacturers- ["OEM"]
and State Transport Undertakings) and exports. In terms of products, the market
is split into two broad segments — Commercial Vehicle Tyres (trucks &
buses, light commercial vehicles, agriculture and specialty vehicles) and
Personal Vehicle Tyres (car, SUV, motorcycle, scooter and moped).
Commercial
vehicle tyres continue to constitute the largest segment of the Indian market.
A few years back, these tyres constituted more than 80% of the market. Over the
last few years, however, the Indian passenger vehicle industry (cars as well as
two wheelers) has grown at a pace that outstrips growth of commercial vehicle
sales, driven by greater disposable incomes, the rising aspirations of a burgeoning
middle class, and the presence of almost every international vehicle
manufacturer in India. Growing passenger vehicle sales in the country has meant
the proportion of commercial vehicle tyres in the total tyre industry has
dropped to a little more than 60% today.
A
key trend in the Indian market is the shift away from the old technology
cross-ply tyres to radials. While radialisation is greater than 95% in
passenger vehicles today, in commercial vehicle tyres it is still below 25%.
This is, however, picking up and India should soon catch up with the world on
this parameter. Growing preference for radials by fleets on account of their
better performance, increasing fitment of radials by OEMs and massive
investments in increasing capacities for truck and bus radials by industry
players seems to be driving this change. Radialisation in the truck and bus
segment is forecast to cross 40% in the next few years
The
automotive market has a direct correlation with the growth of the Indian
economy. The deceleration in the Indian economy has had a negative impact on
the automotive industry as a whole. Declining growth of economic activity slows
the demand for commercial vehicles something that is evident in India today.
Consequently, the overall domestic truck and bus tyre market also saw
stagnation in 2011-12 as compared to the previous year, which had seen a growth
of over 20%.Sales of passenger vehicles suffered a mid-year slump resulting in
lower offtake of tyres by OEMs. Nonetheless, towards the end of the Financial
Year 2011-12, indications were that sales were beginning to look up once again.
On
the cost front, volatility in raw material prices, especially of natural
rubber, has been a major factor impacting the fortunes of the Indian Tyre
Industry in the previous year. Volatile raw material prices continue to pose
the biggest risk for the tyre business
Cement
China
continues to be the world's largest cement producer followed by India. India
has the facilities and technology to produce world class cement.
The
cement industry in India is estimated to have recorded a growth of 6% during
the Financial Year 2011-12 as against a growth of 5% during the previous year.
This was achieved despite a perceptible slow down in the housing and
infrastructure space, the major cement consumer.
Cement
capacity utilisation in India during the Financial Year 2011-12 is estimated to
have been around 75%. New capacities are being continuously added much ahead of
the increase in demand. Such additions have tended to impact higher capacity
utilizations
The
capacity utilisation in the country's Southern Region, where the Company's
cement plants are located, is estimated to have been only 61% during the
Financial Year 2011-12 as against 65% during the previous year. Moreover, a
de-growth of 3% in the consumption of cement is reported to have been also
recorded in this Region during Financial Year 2011-12.
Rayon
The
demand for Viscose Filament Yarn (VFY) was subdued during Financial Year
2011-12 owing to severe competition from other competing fibres. The inventory
of the industry increased substantially as compared to the previous year.
Consequently, the unit price realisations for the industry as a whole came
under intense pressure.
OUTLOOK
Tyre
Despite
concerns of a slowing economy in the near term and the consequent impact on the
automotive sector, the overall outlook for the tyre industry is positive.
Infrastructure investments in roads, growing income of the country's middle
class, increasing mechanisation of agriculture and the continued ready
availability of loan finance for vehicles will act as an impetus to tyre sales.
Cement
The
near term outlook is expected to be bright. This country's per capita cement
consumption is only about 180 kg. against the world average of 447 kg. .
Moreover, infrastructure growth in the country is still considered to be in a
state of infancy. It is a given that infrastructure growth will be dependent on
sufficient availability of cement and this will in turn further boost cement
demand in the country.
Rayon
The
demand for VFY is likely to improve due to expected change in fashion trends
leading to increased consumption of VFY value added products. The price of
pulp, a major raw material, is also likely to reduce.
Internal
Control System and their adequacy
The
Company has robust internal control systems and continues to seek ways to
further strengthen these. The functioning of the control systems operating in
the Company are reviewed and reassessed by the management on a continuous basis
to ensure their efficacy. During the Financial Year 2011-12, for instance,
several measures were initiated to further tone up control systems in the tyre
business. These include an eventual roll out of Standard Operating Procedures
and finally amalgamating these with an ERP system.
The Company as a whole had 16,695 persons on its rolls as on 31.03.2012.
Contingent
Liabilities:
Contingent
liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not wholly within the control
of the Company or a present obligation that arises from past events where it is
either not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made, is termed as a contingent
Liability.
Rs. in Millions
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Guarantees given |
|
|
|
To excise authorities |
0.12 |
0.12 |
|
By Banks on behalf of the
Company (excluding relating to
joint venture referred to in note 33 below) |
58.40 |
64.62 |
|
Claims against the
Company not acknowledged as debts : |
|
|
|
Rates, Taxes, Duties etc.
demanded by various Authorities |
213.95 |
137.76 |
|
Amount demanded by
Provident Fund Authorities which is sub judice |
0.87 |
0.87 |
|
Rates, Taxes, Duties etc. |
15.80 |
30.30 |
|
Amount payable in connection
with reorganisation of the Company in earlier year |
3.49 |
3.59 |
|
|
|
|
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2012
|
Particulars |
Three months ended |
Preceding |
Year to date |
|
PART - I |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income from
Operations |
|
|
|
|
a) Net Sales/ income from Operations (Net
of excise duty) |
14161.000 |
15041.100 |
29202.100 |
|
b) Other Operating income |
66.400 |
87.300 |
15.3700 |
|
Total income
from operations (net) |
14227.400 |
1,5128.400 |
29355.800 |
|
|
|
|
|
|
Expenses |
|
|
|
|
a) Cost of Materials consumed |
7420.800 |
8304.400 |
1,5725.200 |
|
b) Purchase of stock- in-trade |
253.800 |
213.000 |
466.800 |
|
c)Changes in inventories of
finished goods, work-in-progress and stock-in-trade |
(619.700) |
(574.900) |
(1194.600) |
|
d) Employee benefits expense |
1030.500 |
845.800 |
1876.300 |
|
e) Depreciation (net of transfer from
revaluation reserve) and amortisation expense |
768.000 |
771.800 |
1539.800 |
|
f) Power and fuel |
2202.500 |
2135.300 |
4337.800 |
|
g) Packing and carriage |
1212.100 |
1337.500 |
2549.600 |
|
h) Other expenses |
1596.900 |
2150.300 |
3747.200 |
|
Total Expenses |
13864.900 |
1,5183.200 |
29048.100 |
|
|
|
|
|
|
Profit/(Loss)
from operations before other income, finance costs and exceptional items
(1-2) |
362.500 |
(54.800) |
307.700 |
|
|
|
|
|
|
Other Income |
186.200 |
190.200 |
376.400 |
|
|
|
|
|
|
Profit/(Loss)
from ordinary activities before finance costs and exceptional items (3+4) |
548.700 |
135.400 |
684.100 |
|
|
|
|
|
|
Finance Costs |
1232.000 |
1238.000 |
2470.000 |
|
|
|
|
|
|
Profit/(Loss)
from ordinary activities after finance costs but before exceptional items
(5-6) |
(683.300) |
(1102.600) |
(1785.900) |
|
|
|
|
|
|
Exceptional items |
- |
- |
- |
|
|
|
|
|
|
Profit/(Loss) from
ordinary activities before tax (7+8) |
(683.300) |
(1102.600) |
(1785.900) |
|
|
|
|
|
|
Tax expense |
|
|
|
|
a) Current tax charge/(credit) |
- |
- |
|
|
b) Deferred tax charge/ (credit) |
(143.000) |
(143.000) |
(286.000) |
|
c) Fringe benefit tax charge/(credit) |
- |
- |
- |
|
|
|
|
|
|
Net
Profit/(Loss) from ordinary activities after tax (9-10) |
(540.300) |
(959.600) |
(1499.900) |
|
|
|
|
|
|
Extraordinary
items (net of tax expense Rs. Nil) |
- |
|
- |
|
|
|
|
|
|
Net
Profit/(Loss) for the period |
(540.300) |
(959.600) |
(1499.900) |
|
|
|
|
|
|
Paid-up equity share capital (Face value
Rs. 10.00 per share) |
457.400 |
457.400 |
457.400 |
|
|
|
|
|
|
Reserves excluding Revaluation Reserve as
per balance sheet of previous accounting year |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (EPS) (Face value of Rs. 10.00 per share) |
|
|
|
|
a) Basic and Diluted EPS before
extraordinary items |
(11.81) |
(209.8) |
(327.9) |
|
b) Basic and Diluted EPS after
extraordinary items |
(11.81) |
(209.8) |
(327.9) |
|
PART - II |
|
|
|
|
PARTICULARS OF
SHARE HOLDING |
|
|
|
|
Public
Shareholding |
|
|
|
|
– Number of shares |
26296584 |
2,62,96,584 |
2,62,96,584 |
|
– Percentage of shareholding |
57.49% |
57.49% |
57.49% |
|
|
|
|
|
|
Promoters and |
|
|
|
|
a) Pledged/ Encumbered |
|
|
|
|
- Number of shares |
Nil |
Nil |
Nil |
|
- Percentage of shares (as a % of the total
hareholding of promoter and promoter group) |
|
|
|
|
- Percentage of shares (as a % of the
total share capital of the company) |
|
|
|
|
b) Non encumbered |
|
|
|
|
- Number of shares |
12404859 |
1,24,04,859 |
1,24,04,859 |
|
- 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) |
27.12% |
27.12% |
27.12% |
|
|
|
|
|
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.54.39 |
|
|
1 |
Rs.88.76 |
|
Euro |
1 |
Rs.72.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
SPN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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.