MIRA
INFORM REPORT
|
Report Date : |
22.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
HYDRO S AND S INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Dhun Building, 3rd Floor,
827, Mount Road, Chennai - 600002, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
10.11.1983 |
|
|
|
|
Com. Reg. No.: |
18-010438 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.64.072
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25209TN1983PLC010438 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES00014A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH0931N |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturers of Polypropylene Compounds and Cable Sheathing
Compounds. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 990000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a Joint Venture between the promoters of WS Industries
(India) Limited and Hydro Polymers Limited, UK It is an established company having a satisfactory track record. There
appears drastic fall in the profitability during the current year recorded by
the company. However, general financial position seems to be good. Subject gets
good support from its holding companies. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual
trade terms and 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 |
ICRA |
|
Rating |
Long Term Loan = BBB- |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of
financial obligation it carry moderate credit risk |
|
Date |
July 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 : |
|
|
Tel. No.: |
91-44-28521736 (4 Lines) / 28520292 |
|
Fax No.: |
91-44-28520420 |
|
E-Mail : |
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|
Website : |
|
|
|
|
|
Factory 1 : |
15C,SIPCOT Industrial Complex, Pudukkottai-622002, Tamilnadu, India |
|
|
|
|
Factory 2 : |
RS No. 38/1, Sedarapet Village, Villiyanur Commune, Pondicherry-605111, Tamil Nadu, India |
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|
|
|
Factory 3 : |
RS15/15,Vazhudavur Road, Kurumbapet, Pondicherry-605009, India |
|
Tel. No.: |
91-413-2272155 |
|
Fax No.: |
91-413-2277430 |
|
E-Mail : |
|
|
|
|
|
Factory 4 : |
G 34, Addl. Jejuri Industrial Area, Jejuri, Taluka Purandar, Pune-412303, Maharashtra, India |
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|
|
|
Sales Office : |
Located At: · Chennai · Pudukkottai · Puducherry · Pune · Bangalore · Gurgaon · Sakhej |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. V. Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Murali Venkatraman |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. V. Thirupathi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Narayan Sethuramon |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. Balasubramanyan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dinshaw Keku Parakh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.K. Subramanyan |
|
Designation : |
Director [Finance and Administration]
|
KEY EXECUTIVES
|
Name : |
Mr. S.K. Subramanyan |
|
Designation : |
Company Secretary |
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 |
|
|
|
|
|
|
|
|
3239917 |
50.57 |
|
|
728283 |
11.37 |
|
|
3968200 |
61.93 |
|
|
|
|
|
|
292500 |
4.57 |
|
|
292500 |
4.57 |
|
Total shareholding of Promoter and Promoter Group (A) |
4260700 |
66.50 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
0.00 |
|
|
200 |
0.00 |
|
|
|
|
|
|
362303 |
5.65 |
|
|
|
|
|
|
1334890 |
20.83 |
|
|
372027 |
5.81 |
|
|
77084 |
1.20 |
|
|
76529 |
1.19 |
|
|
555 |
0.01 |
|
|
2146304 |
33.50 |
|
Total Public shareholding (B) |
2146504 |
33.50 |
|
Total (A)+(B) |
6407204 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
6407204 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Polypropylene Compounds and Cable Sheathing
Compounds. |
||||
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|
|
||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Plastic Compounds |
MTS |
25000 |
15799 |
|
FRP Pultruded Profiles |
KGS |
-* |
84220 |
|
Goods Traded (High Sea/Agency) |
MTS |
-* |
66 |
NOTE: * Subject to specifications
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
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Bankers : |
·
State Bank of India, Chennai-600001, Tamilnadu,
India ·
Canara Bank, Chennai-600002, Tamilnadu, India |
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||
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|
|
|
Banking
Relations : |
-- |
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|
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Auditors : |
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|
Name : |
P. Srinivasan and Company Chartered Accountants |
|
Address : |
Chennai-600017, Tamilnadu, India |
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|
|
|
Associates : |
W.S Industries (India) Limited |
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|
|
|
Others : |
· W.S. International Private Limited · Vensunar Holdings Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18000000 |
Equity Shares |
Rs.10/- each |
Rs.180.000 Millions |
|
300000 |
16% Cumulative Redeemable Preferences Shares |
Rs.100/- each |
Rs.30.000 Millions |
|
|
Total |
|
Rs.210.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6407204 |
Equity Shares |
Rs.10/- each |
Rs.64.072
Millions |
|
|
|
|
|
The company is authorised to issue Equity and 16% Cumulative Redeemable Preference shares. However the company has one class of equity having a par value of Rs.10 each. Each share holder is eligible for one vote per share. The dividend proposed by the Board of directors is subject to approval of share holders, except in case of interim dividend. In the event of liquidation, the equity share holders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion of their share holding.
Details of shares
held by shareholders holding more than 5% of the shares in the company
|
Name of the
shareholder |
No of Shares held |
% of Holding |
|
Mrs. Vidya Srinivasan |
1,418,390 |
22.14 |
|
Mr. Murali Srinivasan Venkatraman |
932,300 |
14.55 |
|
Mr. Narayan Sethuramon |
800,000 |
12.49 |
|
Narbod Constructions Private Limited |
400,000 |
6.24 |
The company bought back in aggregate 118425 number of equity shares during the financial years 2008-2009 and 2009-2010.
Pursuant to the Board resolution, 4900 partly paid up equity shares, which were forfeited in the past have been cancelled during the year
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 |
64.072 |
64.097 |
64.097 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
185.090 |
184.817 |
178.818 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
249.162 |
248.914 |
242.915 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
386.046 |
394.895 |
351.268 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
1.801 |
|
|
TOTAL BORROWING |
386.046 |
394.895 |
353.069 |
|
|
DEFERRED TAX LIABILITIES |
30.916 |
32.516 |
33.116 |
|
|
|
|
|
|
|
|
TOTAL |
666.124 |
676.325 |
629.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
293.816 |
312.962 |
309.957 |
|
|
Capital work-in-progress |
3.294 |
2.811 |
4.438 |
|
|
|
|
|
|
|
|
INVESTMENT |
4.673 |
2.416 |
9.123 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
182.383
|
210.674 |
154.767 |
|
|
Sundry Debtors |
345.566
|
345.292 |
244.124 |
|
|
Cash & Bank Balances |
5.425
|
11.779 |
10.807 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
45.264
|
50.530 |
46.883 |
|
Total
Current Assets |
578.638
|
618.275 |
456.581 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
146.223
|
198.059 |
126.210 |
|
|
Other Current Liabilities |
64.507
|
54.173 |
22.355 |
|
|
Provisions |
3.567
|
7.907 |
2.434 |
|
Total
Current Liabilities |
214.297
|
260.139 |
150.999 |
|
|
Net Current Assets |
364.341
|
358.136 |
305.582 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
666.124 |
676.325 |
629.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations ( Net ) |
1501.003 |
1401.162 |
1092.150 |
|
|
|
Other Income |
1.436 |
1.214 |
3.577 |
|
|
|
TOTAL (A) |
1502.439 |
1402.376 |
1095.727 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1199.899 |
|
|
|
|
|
Purchases of stock- in-trade |
7.777 |
9.172 |
|
|
|
|
Changes in inventories of finished goods and work-in-progress |
18.625 |
(18.128) |
1024.585 |
|
|
|
Employee benefits expense |
65.456 |
64.050 |
|
|
|
|
Other expenses |
119.678 |
110.578 |
|
|
|
|
TOTAL (B) |
1411.435 |
1315.878 |
1024.585 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
91.004 |
86.498 |
71.142 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
65.561 |
46.509 |
47.526 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
24.443 |
39.989 |
23.616 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
26.794 |
26.909 |
25.768 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(1.351) |
13.080 |
(2.152) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(1.600) |
2.600 |
(2.000) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
0.249 |
10.480 |
(0.152) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
10.232 |
14.484 |
15.668 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
10.000 |
0.000 |
|
|
|
Transfer to Special General Reserve |
0.000 |
0.250 |
0.000 |
|
|
|
Transfer to Capital Redemption Reserves |
0.000 |
0.000 |
1.032 |
|
|
|
Proposed Dividend on Equity Shares |
0.000 |
3.844 |
0.000 |
|
|
|
Proposed Dividend Tax on Distributable
Profits |
0.000 |
0.638 |
0.000 |
|
|
BALANCE CARRIED TO
THE B/S |
10.481 |
10.232 |
14.484 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.757 |
0.427 |
1.933 |
|
|
|
Commission Earnings |
6.563 |
3.471 |
1.375 |
|
|
TOTAL EARNINGS |
7.320 |
3.898 |
3.308 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
289.693 |
329.529 |
192.685 |
|
|
|
Capital Goods & Spares |
5.260 |
5.079 |
0.752 |
|
|
TOTAL IMPORTS |
294.953 |
334.608 |
193.437 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.04 |
1.64 |
(0.02) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
404.870 |
391.720 |
|
Total Expenditure |
|
405.330 |
379.820 |
|
PBIDT (Excl OI) |
|
(0.460) |
11.900 |
|
Other Income |
|
0.220 |
2.550 |
|
Operating Profit |
|
(0.240) |
14.450 |
|
Interest |
|
14.900 |
18.350 |
|
PBDT |
|
(15.140) |
(3.900) |
|
Depreciation |
|
6.870 |
6.480 |
|
Profit Before Tax |
|
(22.010) |
(10.380) |
|
Tax |
|
(1.500) |
0.100 |
|
Profit After Tax |
|
(20.510) |
(10.480) |
|
Net Profit |
|
(20.510) |
(10.480) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.02
|
0.75 |
(0.01) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.09)
|
0.93 |
(0.20) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.15)
|
1.40 |
(0.28) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01)
|
0.05 |
(0.01) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.41
|
2.63 |
2.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.70
|
2.38 |
3.02 |
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 |
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 |
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 |
BUSINESS OPERATIONS
Revenue from operations recorded an increase of 7% over the previous year, though volumes remained flat. The year witnessed a turbulent business environment that moderated growth. The year started with optimism but as it progressed there were challenges with inflation, decelerating growth and worsening investment climate which adversely impacted consumer sentiments. The global economic environment was confronted with geo-political instability, Eurozone crisis, fluctuating global commodity prices etc.
The Company had to deal with the challenges of a sharp depreciation of the Indian Rupee during the year coupled with a sharp increase in the prices of polypropylene during the last quarter. This has to be viewed in the context of extreme resistance from Customers to price revisions.
The financial statements have been prepared in compliance with the revised Schedule VI guidelines, notified by the Ministry of Corporate Affairs. Therefore, the previous year’s figure have been regrouped / recast wherever necessary. The Pultrusion Division continues to face the challenges of declining prices during the year due to surplus capacity pressures which resulted in a lower performance as compared to the previous year.
MANAGEMENT'S
DISCUSSION AND ANALYSIS REPORT
BUSINESS SCENARIO
The market after initiating well turned soft for the better part of the year. Only towards the end of the year did some improvement in passenger vehicles demand become visible. Passenger vehicles growth slowed down to below 5% year on year. Multiplicity of industrial and supply chain factors affected OEM production adversely thereby impacting growth in sales for the year.
The company’s strategy of risk mitigation with different OEM’s is now showing results. Input costs remained firm with the major input PP swinging upwards by over 15% in the period Jan - Mar 2012.
COMPANY PERFORMANCE
The year started well but the market could not sustain momentum due to fuel price increase and also higher interest costs. NANO vehicle production remained much below target for most of calendar Year 2011 and only towards December did the same ramp up. Their focused efforts with customers in both 4 wheeler and 2 wheeler segments ensured they were able to maintain their sales.
OPERATIONS
While their volumes remained flat they were able to improve the top line by over 7% thanks to some aggressive pricing. Utility energy has come on line in Jejuri and has facilitated the plant to optimize its capacity.
FINANCIAL PERFORMANCE
REVENUES
The Revenue from operations of the Company grew by 7% over the previous year even though volumes were marginally lower. This was on account of the price revisions from the customers during the early part of the year.
Trading volumes showed close to 100% growth during the year, reflecting appropriately on the top-line. The Pultrusion Division performance was significantly impacted by sustained competition for end products from international competitors.
INPUT COSTS
Whilst the prices of Polypropylene remained stable during the first half of the financial year, the last quarter of the year witnessed an increase of over 15% for which price correction from major customers are yet to be realised. Besides the PP prices, prices of various other ingredients like Additives, Elastomers and Pigments have also been in the uptrend, in view of the severe international shortage of base chemicals. However, the overall Input cost efficiency improved by optimizing formulations and use of multiple sourcing. The depreciation of the rupee significantly during the middle of the year pushed up landed cost thus impacting input costs during the second half of the year. Higher quantum of grid power was available at Jejuri, to meet the increased level of operations. However, due to the severe ongoing power cut in Tamilnadu, Pudukottai Plant had to use self-generated power to meet its production volumes. The power cut also impacted the evacuation of power generated by the Wind Energy Generators into the Utility Grid.
Certain major maintenance activity at the Puducherry works and to meet certain statutory requirement at their Jejuri works were undertaken which entailed expenditure under this head.
The Cyclone that hit Puducherry on the eve of the New Year 2012, did not cause major damages in their Plant and the production was resumed after minimal stoppage of operations. Appropriate claims have been filed with the Insurance authorities.
FINANCIAL COSTS
Interest rates remained high during the early part of the year. The Company negotiated and obtained significant reduction in interest rates for the Working Capital facilities during the annual review by the Bankers. However, this saving was more than negated by the sudden depreciation in the Indian Rupee during the year which has also impacted Buyer’s Credit obligations.
The volatility of the Rupee vis a vis Dollar, posed challenges in taking hedging decisions, thus impacting financial costs. Significant reimbursement delays of power banked with the Electricity Board also aded to increase in financial costs. The Company continues to optimally use Buyer’s Credit funds for Working Capital.
Rating Agency ICRA Limited, maintained its short term A2 rating of the Company and reaffirmed the long term rating at LBBB for the captioned line of credit in view of the performance of the Company
ONGOING INITIATIVES
AND FUTURE OUTLOOK
a) Only if the trend in increasing off take of vehicles is sustained will the volume of tonnage increases materialise. Such increased volumes and management of supply chain and logistics should help in bettering margins during the current year subject of course to the price behave their of Polypropylene and other crude oil based inputs.
b) New commercial vehicles call for increased usage of PP compounds on interior parts and the Company is already working with major companies in this segment to benefit from this approach.
c) Control of receivables and inventory and improved process efficiency, should also contribute to the reduction of working capital requirement leading to a reduction in interest costs.
However, the overall short term economic scenario looks pessimistic and could have an impact on the off take of vehicles and consequent growth of the auto industry
CONTINGENT LIABILITIES NOT PROVIDED FOR:
Rs. In Millions
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
|
Letters of credit |
45.219 |
53.387 |
|
Letters of guarantee |
0.662 |
0.200 |
|
Commitment on capital accounts |
0.461 |
1.840 |
|
Customs duty on materials-in-bond |
0.211 |
0.338 |
|
Custom duty disputed in appeals |
2.678 |
2.678 |
|
Income Tax disputed in appeals |
1.694 |
1.694 |
|
Service Tax disputed in appeals |
1.258 |
0.556 |
FIXED ASSETS:
- Buildings
- Plant and
Machinery
- Research and
Development
- Electrical
Installation
- Technical
Know-How
- Furniture
Fixtures and Office Equipments
- 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 exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.87 |
|
|
1 |
Rs.85.53 |
|
Euro |
1 |
Rs.71.78 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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.