MIRA
INFORM REPORT
|
Report Date : |
15.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
MADRAS CEMENTS LIMITED |
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Registered
Office : |
Ramamandiram, Virudhu Nagar, District Rajapalayam – 626117, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
03.07.1957 |
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Com. Reg. No.: |
18-003566 |
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Capital
Investment / Paid-up Capital : |
Rs.238.000 Millions |
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|
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CIN No.: [Company Identification
No.] |
L26941TN1957PLC003566 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEM07222F/ MRIM00576C |
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PAN No.: [Permanent Account No.] |
AABCM8375L |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacture and |
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No. of Employees
: |
2626 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 82000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financials of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings under
usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 |
ICRA |
|
Rating |
Short Term Rating: A1+ |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligations, it carry lowest credit risk. |
|
Date |
June, 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 : |
Ramamandiram, Virudhu Nagar, District Rajapalayam – 626117, |
|
Email : |
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|
Website : |
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Corporate Office : |
Auras Corporate Centre, 98-A, Dr. |
|
Tel. No.: |
91-44-28478666/ 28478656/ 28555815 |
|
Fax No.: |
91-44-28478676/ 28530248 |
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|
|
Factory : |
CEMENT PLANT · Ramasamy Raja Nagar, Virudhunagar District - 626 204, Tamilnadu, India · Alathiyur, Cement Nagar, Ariyalur District - 621 730, Tamilnadu, India · Govindapuram Village, Ariyalur District - 621 713, Tamilnadu, India · Jayanthipuram, Kumarasamyraja Nagar, Krishna District - 521 457, Andhra Pradesh, India · Mathodu, Hosadurga, Chitradurga District - 577 533, Karnataka, India GRINDING
PLANTS ·
Kattuputhur Village, Uthiramerur,
Kancheepuram District – 603107, Tamilnadu, India ·
Singhipuram Village, Valapady Salem
District – 636115, Tamilnadu, India ·
Kolaghat, Purba Medinipur District -
721135, West Bengal, India PACKING
PLANTS ·
Kumarapuram, Aralvaimozhi,
Kanyakumari District - 629301, Tamilnadu, India ·
Pochampally Road, Malkapur, Nalgonda
District - 508252, Andhra Pradesh, India READY
MIX CONCRETE PLANT ·
Medavakkam - DRY MOTOR
DIVISION ·
F-14, SIPCOT Industrial Park, Sriperumbudur,
Kanchipuram District – 602106, Tamilnadu, India RAMCO WIND FARM
DIVISION ·
Muppandal, Poolavadi, Thandayarkulam, Veeranam,
Muthunaickenpatti, Pushpathur and Udumalpet in Tamilnadu, India ·
Vani Vilas Sagar and GIM II Hills in |
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Branches : |
Alathiyur Works, Cement Nagar Post, Sendurai Taluk, Perambalur, |
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Ramco Research and Development Centre : |
11-A, Okkiyam, Thuraipakkam, Chennai – 600096, Tamilnadu, India |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. P R Ramasubrahmaneya Rajha |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Ramamandiram, Rajapalaiyam – 626 117, |
|
Qualification : |
B.Sc. |
|
|
|
|
Name : |
Mr. P R Venketrama Raja |
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Designation : |
Director |
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Address : |
Ramamandiram, Rajapalaiyam – 626 117, |
|
Date of Birth/Age : |
53 years |
|
Qualification : |
Bachelor's Degree in Chemical Engineering |
|
Other Directorship : |
· Ramco Industries Limited (Vice Chairman and Managing Director) · Ramco Systems Limited (Vice Chairman and Managing Director) · Rajapalayam Mills Limited · The Ramaraju Surgical Cotton Mills Limited · Thanjavur Spinning Mill Limited · Sri Vishnu Shankar Mill Limited · Sandhya Spinning Mill Limited. · Sri Sandhya Farms (India) Private Limited · Sri Saradha Deepa Farms Private Limited · Ramamandiram Agricultural Estate Private Limited · Nalina Agricultural Farms Private Limited · Sudharsanam Investments Limited · Ramco Systems Corporation, USA · Ramco Systems Limited, Switzerland · Ramco Systems Sdn Bhd., Malaysia · Ramco Systems Pte. Limited, Singapore · Sri Ramco Lanka (Private) Limited, Sri Lanka · Sri Ramco Roofings Lanka Private Limited - Sri Lanka · RCDC Securities and Investments Private Limited · Nirmala Shankar Farms and Estates Private Limited · Sri Nithyalakshmi Farms Private Limited · Ram Sandhya Farms Private Limited · RSL Enterprise Solutions (Pty) Limited, South Africa · Sri Harini Textiles Limited · Ramco Systems Canada Inc., Canada · Deccan Renewable Wind Electrics Limited (Chairman) · Rajapalayam Spinners Limited · Ramco Systems FZ-LLC |
|
|
|
|
Name : |
Dr. A Ramakrishna |
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Designation : |
Director |
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Address : |
“Anmol”, M-6 (Old No. M-29) 10th Cross Street, Anna Nagar
East, Chennai – 600 102, Tamilnadu, |
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Qualification : |
B.E., M. Sc. |
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|
|
|
Name : |
Mr. R S Agarwal |
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Designation : |
Director |
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Address : |
A-102, |
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Qualification : |
B.Sc., B.E. |
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|
|
|
Name : |
Mr. M. B. N. Rao |
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Designation : |
Director |
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Address : |
Flat No:A 906, |
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Qualification : |
B. Sc., (Agricultural) |
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|
|
|
Name : |
Mr. Vibhu Nayar, I.A.S., |
|
Designation : |
Nominee Director (Nominee of Government of Tamilnadu) |
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Qualification : |
IAS |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2012)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
7996340 |
3.36 |
|
|
92707220 |
38.96 |
|
|
100703560 |
42.32 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
100703560 |
42.32 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
29808453 |
12.53 |
|
|
680499 |
0.29 |
|
|
8000000 |
3.36 |
|
|
18156811 |
7.63 |
|
|
12003476 |
5.04 |
|
|
68649239 |
28.85 |
|
|
|
|
|
|
|
|
|
|
10839264 |
4.55 |
|
|
|
|
|
|
|
|
|
|
30006542 |
12.61 |
|
|
27770775 |
11.67 |
|
|
68616581 |
28.83 |
|
|
|
|
|
Total Public
shareholding (B) |
137265820 |
57.68 |
|
|
|
|
|
Total (A)+(B) |
237969380 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total
(A)+(B)+(C) |
237969380 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacture and |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
2626 (Approximately) |
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Bankers : |
· Andhra Bank · Axis Bank Limited · Bank of Baroda · Bank of Maharashtra · Canara Bank · Citi Bank · Deutsche Bank · HDFC Bank Limited · ICICI Bank Limited · IDBI Bank Limited · Indusind Bank Limited · ING Vysya Bank L Limited · Kotak Mahindra Bank Limited · Punjab and Sind Bank · Standard Chartered Bank · Tamilnad Mercantile Bank Limited · The Bank of Nova Scotia · The Hongkong and Shanghai Banking Corporation Limited · Union Bank of India · Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
·
M S Jagannathan and Chartered Accountant Address : Unit-5, Ground Floor,
Abirami Apartments, No. 14, VOC Road, Cantonment Tiruchirappalli – 620001,
Tamilnadu, India ·
CNGSN and Associates Chartered Accountant Address : 20, |
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|
|
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Enterprises over
which the above persons exercise significant influence and with which the
company had transactions during the year: |
· Rajapalayam Mills Limited · The Ramaraju Surgical Cotton Mills Limited · Ramco Industries Limited · Sri Vishnu Shankar Mill Limited · Ramco Systems Limited · Sandhya Spinning Mill Limited · Thanjavur Spinning Mill Limited · Sri Harini Textiles Limited · Rajapalayam Spinners Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.1 /- each |
Rs.250.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
237969380 |
Equity Shares |
Rs.1 /- each |
Rs.238.000
millions |
|
|
|
|
|
NOTES
3,41,000 Bonus shares of Rs.1/- each remain unallotted pending
completion of required formalities.
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 |
238.000 |
238.000 |
237.969 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
20265.800 |
17107.100 |
15343.573 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
20503.800 |
17345.100 |
15581.542 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13954.500 |
13331.800 |
18842.789 |
|
|
2] Unsecured Loans |
7184.900 |
6479.500 |
6822.289 |
|
|
TOTAL BORROWING |
21139.400 |
19811.300 |
25665.078 |
|
|
DEFERRED TAX LIABILITIES |
6491.800 |
5890.000 |
5851.000 |
|
|
|
|
|
|
|
|
TOTAL |
48135.000 |
43046.400 |
47097.620 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
41151.500 |
37929.500 |
36925.212 |
|
|
Capital work-in-progress |
5275.500 |
5456.500 |
3177.002 |
|
|
|
|
|
|
|
|
INVESTMENT |
2664.700 |
2672.700 |
887.408 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4910.900
|
3922.800 |
4125.417
|
|
|
Sundry Debtors |
2079.400
|
1751.300 |
1555.084
|
|
|
Cash & Bank Balances |
474.900
|
400.100 |
355.985
|
|
|
Other Current Assets |
31.600
|
75.400 |
0.000
|
|
|
Loans & Advances |
3993.900
|
4838.000 |
5320.053
|
|
Total
Current Assets |
11490.700
|
10987.600 |
11356.539 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
939.300
|
1395.200 |
1648.159
|
|
|
Other Current Liabilities |
9917.000
|
11269.400 |
2616.489
|
|
|
Provisions |
1591.100
|
1335.300 |
1197.760
|
|
Total
Current Liabilities |
12447.400
|
13999.900 |
5462.408
|
|
|
Net Current Assets |
(956.700)
|
(3012.300) |
5894.131
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
213.867 |
|
|
|
|
|
|
|
|
TOTAL |
48135.000 |
43046.400 |
47097.620 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
32567.400 |
26162.200 |
28008.870 |
|
|
|
Other Income |
310.400 |
284.700 |
204.778 |
|
|
|
TOTAL (A) |
32877.800 |
26446.900 |
28213.648 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4376.000 |
4098.000 |
|
|
|
|
Changes in Inventories of Finished Goods and Work-in-progress |
(7.800) |
(191.400) |
|
|
|
|
Employee Benefits Expense |
1712.100 |
1540.100 |
19439.662 |
|
|
|
Other Expenses |
17098.800 |
14427.800 |
|
|
|
|
Extraordinary Items |
1.000 |
(0.700) |
|
|
|
|
TOTAL (B) |
23180.100 |
19873.800 |
19439.662 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9697.700 |
6573.100 |
8773.986 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1584.500 |
1392.800 |
1508.756 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
8113.200 |
5180.300 |
7265.230 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2539.000 |
2207.700 |
1960.857 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5574.200 |
2972.600 |
5304.373 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1723.100 |
862.800 |
1767.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3851.100 |
2109.800 |
3536.773 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
297.450 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
2750.000 |
|
|
|
Interim Dividend |
NA |
NA |
357.466 |
|
|
|
Tax on Interim Dividend |
NA |
NA |
60.751 |
|
|
|
Final Dividend |
NA |
NA |
119.155 |
|
|
|
Tax on Final Dividend |
NA |
NA |
19.790 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
527.061 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
139.100 |
18.600 |
46.598 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
42.700 |
53.300 |
48.533 |
|
|
|
Stores & Spares |
54.700 |
92.600 |
443.228 |
|
|
|
Coal and Petcoke |
3084.300 |
1257.400 |
0.000 |
|
|
|
Packaging Materials |
100.300 |
48.000 |
0.000 |
|
|
|
Capital Goods |
272.500 |
960.300 |
462.829 |
|
|
TOTAL IMPORTS |
3554.500 |
2411.600 |
954.590 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.16 |
8.85 |
14.86 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 (1st
Quarter) |
30.09.2012 (2nd
Quarter) |
|
|
|
|
|
|
Net Sales |
|
9952.700 |
10056.900 |
|
Total Expenditure |
|
6825.700 |
6855.300 |
|
PBIDT (Excl OI) |
|
3127.000 |
3201.600 |
|
Other Income |
|
17.700 |
22.100 |
|
Operating Profit |
|
3144.700 |
3223.700 |
|
Interest |
|
542.600 |
507.400 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
2602.100 |
2716.300 |
|
Depreciation |
|
781.200 |
749.200 |
|
Profit Before Tax |
|
1820.900 |
1967.100 |
|
Tax |
|
590.800 |
638.200 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
1230.100 |
1328.900 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
1230.100 |
1328.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
11.71
|
7.98 |
12.54
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.12
|
11.36 |
18.94
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.59
|
6.08 |
10.99
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.17 |
0.34
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.64
|
1.95 |
1.99
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92
|
0.78 |
2.08
|
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 |
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 |
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 |
Yes |
UNSECURED LOANS
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
|
|
|
|
Fixed Deposits |
17.900 |
12.000 |
|
Interest Free Sales tax loan |
5235.500 |
5628.200 |
|
Loans Repayable
on demand |
|
|
|
Loan from Directors |
15.300 |
19.900 |
|
Fixed Deposits |
5.700 |
18.700 |
|
Other Loans and Advances |
|
|
|
Loan from banks |
0.000 |
600.000 |
|
Foreign currency loans from banks |
1422.700 |
200.700 |
|
Loan from mutual funds |
487.800 |
0.000 |
|
|
|
|
|
Total |
7184.900 |
6479.500 |
SHARE CAPITAL
The paid up capital of the Company is Rs.237.969 Millions consisting of
23,79,69,380 shares of Rs.1/- each.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
CEMENT
DIVISION:
The cement
production has increased to 75.22 lakh tonnes from 73.05 lakh tonnes of the
previous year.
At Ariyalur the
Company has installed Line 2 with a capacity of 2 Million Tonnes Per Annum (MTPA).
The project was commissioned upto clinkerisation in August 2011. The cement
grinding is scheduled to commence in June 2012. Consequently the cement
production capacity of the Company will go up from 10.49 MTPA to 12.49 MTPA.
SALES
Domestic
During the year,
even though, on All India basis the cement industry has shown a growth of 6%,
the Southern Region witnessed a decline of 1%. This was primarily due to a fall
of 11% in Andhra Pradesh. As against this, company has registered an increase
from 72.48 lac tonnes to 75.04 lac tonnes in sale of cement, representing a
growth of 4%. The sale value of cement for the current year, net of Excise Duty
and VAT amounts to Rs.30923.700 Millions as against Rs.24486.100 Millions for
the previous year.
Exports
During the year
0.46 lac tonnes of cement was exported to Sri Lanka as against 0.07 lac tonnes
during the previous year. The export turnover of the Company for the year was
Rs.142.600 Millions as against Rs.18.600 Millions of the previous year.
COST
During the year,
there had been increase in diesel price which had resulted in increase in the
cost of road transport for inward raw materials as well as the distribution
cost of the finished goods. The increase in the Railway freight rates had also
impacted the transportation cost.
In addition to the
high cost charged by Tamil Nadu Generation and Distribution Corporation Limited
for flyash, the availability of flyash was also poor from the State owned
thermal power plants.
The cost of power
has also increased during the year under review. In Tamilnadu, due to the power
cut imposed by the State Government, the units generated from wind mills could
not be utilised in full. In order to maintain the production levels, the
company had resorted to use of Heavy Fuel Oil based power generating sets,
thereby resulting in increase in the power cost.
The state
electricity boards in Andhra Pradesh and West Bengal have also increased their
electricity tariff. This has resulted in increase in the cost of power for the
plants situated in the respective states.
Due to increase in
the cost of imported coal, the generation cost of the Company's captive thermal
power plants and the fuel cost have increased during the current year compared
to the previous year.
The depreciation cost
has gone up due to addition of assets and commissioning of Ariyalur Line 2 upto
clinkerisation and Power Plants during the year.
The interest cost
has also increased due to increase in the interest rates.
All the above factors have contributed to an overall increase in
manufacturing and distribution costs.
READY MIX CONCRETE DIVISION
The Division has
produced 48,807 cu.m of concrete during the year, accounting for a revenue of
Rs.171.400 Millions as against 59,589 cu.m. of concrete accounting for a
revenue of Rs.180.600 Millions during the previous year.
DRY MORTAR DIVISION
The Division has
produced 26,558 tonnes of Dry Mortar during the year as against 27,156 tonnes
produced during the previous year. The Division has sold 26,682 tonnes of Dry Mortar
accounting for Rs.161.300 Millions
during the year as against 27,089 tonnes of Dry Mortar accounting for
Rs.140.800 Millions during the previous year.
WIND FARM DIVISION
The Division has
generated 2,855 Lac Kwh during the year as compared to 3,572 Lac Kwh of the
previous year. Out of 2752 lac units generated in Tamil Nadu, 697 lac units are
meant for adjustment against the power consumed in our plants and balance 2055
lac units have been sold to Tamil Nadu Electricity Board (TNEB) for a value of
Rs.615.900 Millions. Inclusive for the power sold during the previous year, a
sum of Rs.649.100 Millions is outstanding from TNEB.
The income during
the year from the Division was Rs.961.800 Millions as against Rs.1222.800
Millions of the previous year. The installed capacity of the wind farm of the
Company is 159.19 MW comprising of 229 Wind Electric Generators.
NEW PROJECTS
As already
reported, at Ramasamy Raja Nagar the Company is in the process of installing a Roll
Press for increasing the cement grinding capacity from the present level of 210
TPH to 260 TPH. The cost of the project, including installation of Kankar
Crusher and Flyash Handling System is Rs.1100.000 Millions. The project is
expected to be commissioned in March 2013.
At Salem Grinding
Unit, the Company is in the process of installing a Roll Press for increasing
the cement grinding capacity from the present level of 90 TPH to 230 TPH at a
cost of Rs.600.000 Millions. The project is expected to be commissioned in the
year 2012-13.
POWER PLANTS
In Salem Grinding Unit, a Heavy Fuel Oil based power generator of 5
MW was commissioned in August 2011.
In Ariyalur, the Company had commissioned 2 x 20 MW thermal power
plant in 2010-11 and another 20 MW thermal power plant is proposed to be
commissioned in the first quarter of 2012-13. In Ramasamy Raja Nagar, a 25 MW
thermal power plant would be commissioned in the first quarter of 2012-13.
PROSPECTS FOR
2012-2013
Demand for cement is expected to grow at 8% in the coming year due
to the continued fillips given for the infrastructure projects. The Company
expects to sustain and improve the output levels of all the units during the
year. Also, the Company will have the benefit of increased production from its
new projects, which will enable the Company to meet the increased market demand
for cement. The Company continues its endeavour for the sale of Blended Cement.
The Company also continues to concentrate on cost reduction measures
in all areas of production and distribution to protect and improve its
profitability.
CONTINGENT
LIABILITIES
|
Particulars |
(As on 31.03.2012) Rs. in millions |
(As on 31.03.2011) Rs. in millions |
|
|
|
|
|
Unexpired Letters of credit for purchase of: |
|
|
|
- Spares, Raw Material & Fuel |
42.700 |
408.500 |
|
- Capital Goods |
81.900 |
1142.000 |
|
|
|
|
|
Guarantees given by the bankers on behalf of company |
281.000 |
256.200 |
|
|
|
|
|
Guarantees given to bankers to avail loan facilities by Group companies: |
|
|
|
- Thanjavur Spinning Mill Limited |
580.000 |
310.000 |
|
- Sandhya Spinning Mill Limited |
593.800 |
593.800 |
|
- Ramco Systems Limited |
1450.000 |
1150.000 |
FIXED ASSETS
·
Land
·
·
Buildings
·
Plant and Machinery
·
Railway Siding
·
Workshop, Quarry Equipments etc.
·
R and D Equipments
·
Furniture and Office Equipments
·
Vehicles
·
Aircraft
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.54.64 |
|
|
1 |
Rs.88.17 |
|
Euro |
1 |
Rs.73.13 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
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 |
|
66 |
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.