MIRA
INFORM REPORT
|
Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
ELANTAS BECK INDIA LIMITED (w.e.f. 19.06.2007) |
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Formerly Known
As : |
BECK INDIA LIMITED
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Registered
Office : |
147, Mumbai – |
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Country : |
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Financials (as
on) : |
31.12.2012 |
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Date of
Incorporation : |
15.03.1956 |
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Com. Reg. No.: |
11-134746 |
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Capital
Investment / Paid-up Capital : |
Rs. 79.277 Millions |
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CIN No.: [Company Identification
No.] |
L24222PN1956PLC134746 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEB02788C |
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PAN No.: [Permanent Account No.] |
AAAACD0538M |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing of wide range of specialty chemicals for electrical
insulation and construction industries. |
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No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (70) |
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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 |
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Maximum Credit Limit : |
USD 5125000 |
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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 good track record. There appears a tremendous increase in the sales turnover of the company during 2012. There are no external borrowings. Profit margin seems to be good. Financially the company is 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 at 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Corporate Office / Factory 1 / Regional Office : |
147, Mumbai – |
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Tel. No.: |
91-20-30610-800/777/600 |
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Fax No.: |
91-02-30610-792/601 |
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E-Mail : |
bapu.gawade@altana.com (Primary Insulation) abhaey.kkulthe@altana.com (Secondary Insulation) satish.deshpande@altana.com (Construction Chemicals) kedar.gokhale@altanachemie.com (Electrical
Insulation) rajanikant.salunke@altanachemie.com
(Construction Chemicals |
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Website : |
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Factory 2 : |
Plot No. 1 (A, B and C), GIDC Industrial Area, Ankleshwar
– 393 002, |
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Marketing and Export Head
Office : |
Beck
House, 147, Mumbai – |
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E-Mail : |
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Regional Offices: |
403,
World Trade Centre, Tel. No.
: 91-11-23411664/ 23412940 Fax
No. : 91-11-23413408 E-mail
: ravi.kiran@beckindia.com Kolkata Unit
708, 7th Floor, Om Tower, 32, Tel.
No.: 91-33-22271841 Fax
No. : 91-33-22271843 E-mail
: nirjhar.k@beckindia.com 1176,
12th H.A.L. II Stage, Tel.
No. : 91-80-25281649/ 25283093 Fax
No. : 91-80-25280831 E-mail
: bhaskar.n@beckindia.com |
DIRECTORS
As on 31.12.2012
|
Name : |
Dr. Matthias Ludwig Wolfgruber |
|
Designation : |
Chairman |
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Address : |
Hechenbergstradde 65, 84489, |
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Date of Birth/ Age : |
24.01.1954 |
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Date of Appointment : |
05.07.2004 |
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DIN No.: |
00427360 |
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Name : |
Dr. Guido Forstbach |
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Designation : |
Director |
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Date of Appointment : |
26.10.2012 |
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Name: |
Dr. Wolfgang Josef
Schutt |
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Designation: |
Director |
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Address : |
Hoher weg 19a, 46348, |
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Date of Birth/Age : |
22.12.1964 |
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Qualification : |
1985-1993 -
Studies Chemistry (Chemistry Graduate with Doctorate) 1991-1995 - Master
of Business Administration |
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Date of Appointment : |
17.10.2005 |
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DIN No.: |
00428848 |
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Name : |
Mr. Suresh Narsappa Talwar |
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Designation : |
Director |
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Address : |
10, Shiv Shanti Bhuvan, 146, |
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Date of Birth/Age : |
21.11.1937 |
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Date of Appointment : |
01.06.2009 |
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DIN No.: |
00001456 |
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Name : |
Mr. Ravindra Krishnaji Kulkarni |
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Designation : |
Director |
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Address : |
Samruddhi, Plot No.19, TPS VI, Santacruz, Mumbai – 400 030, |
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Date of Birth/Age : |
23.05.1945 |
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Date of Appointment : |
27.09.1990 |
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DIN No.: |
00059367 |
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Name : |
Mr. Pradeep Mallick |
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Designation : |
Director |
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Address : |
A/2, |
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Date of Birth/Age : |
20.11.1942 |
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Date of Appointment : |
28.03.2002 |
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DIN No.: |
00061256 |
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Name : |
Mr. Sharadkumar Ramchandra Shetye |
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Designation : |
Whole-Time Director |
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Address : |
23, Jaladarshan, |
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Date of Birth/Age : |
08.11.1948 |
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Qualification: |
B.Tech (Chemical Engineering), D.B.M., M.M.S. |
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Date of Appointment : |
23.03.2009 |
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DIN No.: |
00087560 |
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Name: |
Mr. Rajeev Bhide |
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Designation: |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Shirish Padmakar Dabir |
|
Designation : |
Company Secretary and Head Legal |
|
Address : |
A/3, Malkauns Society, Paud Phata, Karve Road, Pune District, Pune –
411 038, Maharashtra, India |
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Date of Birth/Age : |
27.12.1963 |
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Date of Appointment : |
03.04.2006 |
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PAN No.: |
AAUPD5814B |
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EXECUTIVE MANAGEMENT : |
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Name: |
Mr. Rajeev Bhide |
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Designation: |
Managing Director |
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Name : |
Mr. Sharadkumar Shetye |
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Designation : |
Manufacturing Director |
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Name : |
Mr. Sanjay Kulkarni |
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Designation : |
General Manager – Finance and Materials |
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Name : |
Mr. Sanjay Deosthali |
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Designation : |
Business Line Manager – |
SHAREHOLDING PATTERN
As on 31.03.2013
|
Category
of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
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|
6235118 |
78.65 |
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|
6235118 |
78.65 |
|
Total shareholding of Promoter and Promoter Group (A) |
6235118 |
78.65 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
278600 |
3.51 |
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|
50 |
0.00 |
|
|
205466 |
2.59 |
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|
484116 |
6.11 |
|
|
|
|
|
|
436895 |
5.51 |
|
|
|
|
|
|
658245 |
8.30 |
|
|
96706 |
1.22 |
|
|
16602 |
0.21 |
|
|
16602 |
0.21 |
|
|
1208448 |
15.24 |
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Total Public shareholding (B) |
1692564 |
21.35 |
|
Total (A)+(B) |
7927682 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
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|
0 |
0 |
|
Total (A)+(B)+(C) |
7927682 |
0.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 million
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of wide range of specialty chemicals for electrical
insulation and construction industries. |
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Products : |
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PRODUCTION STATUS (As on 31.12.2011)
|
Particulars |
Unit |
Installed
Capacity |
Production
for sale (excluding
captive consumption) |
|
Wire enamels and Impregnating varnishes |
Metric Tonnes |
18.493 |
12.998 |
|
Synthetic Resins |
Metric Tonnes |
5.415 |
3.615 |
|
Total |
|
23.908 |
16.613 |
GENERAL INFORMATION
|
No. of Employees : |
800 (Approximately) |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
BSR and Company Chartered Accountants |
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Address : |
703 Godrej Castlemaine, Next to Ruby Hall, |
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PAN No.: |
AAAFB9852F |
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Internal Auditors: |
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Name : |
Mahajan and Aibara Chartered Accountants |
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Address: |
1, Chawla House, 62, |
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Solicitors: |
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Name : |
Talwar Thakore and Associates |
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Address: |
3rd Floor, Kalpataru Heritage, 127, |
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Holding Company
: |
·
SKionGmbH (Holding company of Altana AG) ·
ALTANAAG (Holding company of Altana
Chemie GmbH) ·
ALTANA Chemie GmbH (Holding company of ELANTAS
GmbH) · ELANTAS GmbH (Holding company (88.55%)) |
|
|
|
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Fellow
Subsidiary : |
·
BYK-Chemie GmbH
|
CAPITAL STRUCTURE
As on 31.12.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7927682 |
Equity Shares |
Rs. 10/- each |
Rs. 79.277 Millions |
Rights, preferences and
restrictions attached to equity shares:
The Company has a single class
of equity shares. Each holder of equity shares is entitled to one vote per
share. Accordingly, all equity shares rank equally with regards to dividends
and share in the Company's residual assets. The equity shareholders are
entitled to receive dividend as declared from time to time.
On winding up of the
Company, the holders of equity shares will be entitled to receive the residual
assets of the Company after distribution of all preferential amounts in
proportion to the number of equity shares held.
Equity shares held by
Holding / ultimate holding company and / or their subsidiaries:
7,020,316 (Previous year 7,020,316) equity shares of Rs. 10 each held by ELANTAS GmbH (Holding Company)
Particulars of shareholders
holding more than 5% of equity shares:
7,020,316 (Previous year
7,020,316) equity shares of Rs. 10 each held by ELANTAS GmbH, (percentage of
holding 88.56 %(previous year 88.56%))
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.12.2012 |
31.12.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
79.277 |
79.277 |
|
(b) Reserves & Surplus |
|
1202.004 |
1773.906 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
14.989 |
12.881 |
|
(c) Other long term liabilities |
|
14.953 |
5.701 |
|
(d) long-term provisions |
|
35.741 |
30.679 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term borrowings |
|
0.000 |
0.000 |
|
(b) Trade payables |
|
254.646 |
211.667 |
|
(c) Other current
liabilities |
|
94.047 |
80.277 |
|
(d) Short-term provisions |
|
852.864 |
51.122 |
|
TOTAL |
|
2548.521 |
2245.510 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
470.146 |
297.292 |
|
(ii) Intangible Assets |
|
21.951 |
35.688 |
|
(iii) Capital
work-in-progress |
|
2.789 |
136.126 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
1.469 |
0.991 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
28.925 |
40.620 |
|
(e) Other Non-current assets |
|
1.899 |
0.126 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
999.912 |
802.576 |
|
(b) Inventories |
|
447.147 |
383.699 |
|
(c) Trade receivables |
|
384.912 |
378.099 |
|
(d) Cash and cash
equivalents |
|
148.091 |
122.024 |
|
(e) Short-term loans and
advances |
|
31.470 |
42.957 |
|
(f) Other current assets |
|
9.810 |
5.312 |
|
TOTAL |
|
2548.521 |
2245.510 |
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.12.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
79.277 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
1567.850 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1647.127 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
14.129 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1661.256 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
321.319 |
|
|
Capital work-in-progress |
|
|
36.305 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
594.470 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
483.440 |
|
|
Sundry Debtors |
|
|
348.413 |
|
|
Cash & Bank Balances |
|
|
153.684 |
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
71.594 |
|
Total
Current Assets |
|
|
1057.131
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
194.300
|
|
|
Other Current Liabilities |
|
|
72.946 |
|
|
Provisions |
|
|
80.723 |
|
Total
Current Liabilities |
|
|
347.969
|
|
|
Net Current Assets |
|
|
709.162 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1661.256 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2744.606 |
2689.679 |
2513.524 |
|
|
|
Other Income |
107.118 |
60.366 |
63.068 |
|
|
|
TOTAL (A) |
2851.724 |
2750.045 |
2576.592 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1923.849 |
1900.187 |
|
|
|
|
Purchases of traded goods |
4.383 |
6.974 |
|
|
|
|
Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
2.269 |
3.614 |
|
|
|
|
Employee Benefits Expenses |
164.665 |
150.846 |
|
|
|
|
Other Expenses |
337.867 |
278.352 |
|
|
|
|
TOTAL (B) |
2433.033 |
2339.973 |
2055.315 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
418.691 |
410.072 |
521.277 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.015 |
0.682 |
0.327 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
417.676 |
409.390 |
520.950 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
47.446 |
49.980 |
47.621 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
370.230 |
359.410 |
473.329 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
94.467 |
112.029 |
149.391 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
275.763 |
247.381 |
323.938 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1260.569 |
1079.251 |
829.169 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend (Final) |
729.347 |
35.675 |
35.675 |
|
|
|
Dividend Distribution Tax |
118.318 |
5.650 |
5.787 |
|
|
|
Transfer to General Reserve |
27.576 |
24.738 |
32.394 |
|
|
BALANCE CARRIED
TO THE B/S |
661.091 |
1260.569 |
1079.251 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
On account of exports at FOB Value |
74.511 |
112.418 |
70.419 |
|
|
TOTAL EARNINGS |
74.511 |
112.418 |
70.419 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
509.208 |
577.321 |
512.851 |
|
|
|
Capital Goods |
9.887 |
4.548 |
5.198 |
|
|
|
Purchase for resale |
0.000 |
2.942 |
7.226 |
|
|
TOTAL IMPORTS |
519.095 |
584.811 |
525.275 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
34.78 |
31.20 |
40.86 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2013 |
|
|
(Unaudited) |
|
Net Sales |
759.100 |
|
Total Expenditure |
651.500 |
|
PBIDT (Excl OI) |
107.600 |
|
Other Income |
33.500 |
|
Operating Profit |
141.100 |
|
Interest |
1.300 |
|
Exceptional Items |
0.000 |
|
PBDT |
139.800 |
|
Depreciation |
12.500 |
|
Profit Before Tax |
127.300 |
|
Tax |
34.700 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
92.600 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
92.600 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
PAT / Total Income |
(%) |
9.67
|
8.99 |
12.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.49
|
13.36 |
18.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.55
|
17.05 |
34.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.19 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.68
|
5.06 |
3.04 |
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 |
No |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
No |
NOTE: Registered
office of the company has been shifted from Beck House, Damle Path, Off.
COMPANY
PERFORMANCE:
The
Company's performance during the year was flat Sales at Rs. 2732 Millions. During the year ended 31
December 2012 showed a small increase of 2% over the previous year, however, in
terms of volume, sales marginally decreased by 0.15% as compared to the
previous year. The Company registered a marginal growth in profitability as
compared to the previous year.
Rising cost
of inputs due to increase in procurement rates of raw material, electricity,
fuel and natural gas and rupee devaluation leading to dearer imports marked its
effect on product margins. Overall inflationary trend and economic slowdown
added further woes to the declining margins.
The Company
continued to focus on reducing costs of its operation and other administrative
costs, which yielded positive results and helped in registering a better profit
return, both before and after tax. The Profit before Tax stood at Rs. 370 Millions. and Profit after Tax was reported
at Rs. 276 Millions.
Net Cash
Flows from operating activities during the year at Rs. 256 Millions. were however lower as compared
to Rs. 341 Millions during the previous
year.
The Company
has put in place an adequate system of internal controls. Detailed procedures
have been developed, documented and implemented which encompass all the
financial and operating functions within the Company. These controls have been
designed based on a system of checks and balances, to provide a reasonable
assurance with regard to appropriate accounting controls, monitoring of
operations, protection of Company's assets from unauthorized use, ensuring
compliance with applicable regulations as well as reliability of financial
reporting.
Some
salient features of the Internal Control systems are:
(i)
Corporate policies on accounting and
major processes.
(ii)
Well defined processes for
formulating and receiving annual and long term business plans.
(iii)
Preparation, review and monitoring of annual
budgets for all operating functions.
(iv)
Monthly meetings of the Executive
Management Committee at the apex level to review operational performance and
business plans in key business areas.
(v)
Audit Committee of the Board of
Directors comprising independent directors, which regularly reviews the audit
plans, significant audit observations, adequacy of internal controls,
compliance with applicable Accounting Standards as well as reasons for changes,
if any, in accounting policies and practices.
(vi) A comprehensive information security policy and periodic upgrades to the Company's IT Infrastructure.
CURRENT
FUTURE AND OUTLOOK:
In the wake
of the Indian economy anticipated to grow only at around 4.5% to 5% during the
fiscal 12/13, the business prospects for the coming years do not look extremely
encouraging. Not only have growth estimates fallen to an all-time low in the
last decade, but the structural position of the Indian economy also seems
weaker with a high fiscal deficit and current account deficit.
The resilience
shown by the Indian economy in 2009/10 in the face of the global meltdown seems
to have been weakened and a variety of problems look imminent if not addressed
decisively and boldly by the government.
This
situation, however, the Company believes, also means that all the potentially
adverse developments have already been largely factored in and discounted by
the investing community and consumers. Under such circumstances, businesses
should await the right signals of growth and improvement and avail of all such
growth opportunities going forward. Such positive signals will be likely to be
seen with better policy implementation, more infrastructural focus and spending
as well as reforms and traction on the power sector and allied activities.
Considering that the nation will go to the hustings in 2014, it is inevitable
that reforms-oriented policy making and decisiveness will need to be exhibited
by the government in power.
The Board,
therefore, considers that the Company should be managed in a lean and tight
manner.
MANAGEMENT DISCUSSION AND
ANALYSIS REPORT:
The year was fraught with a
series of developments and a combination of factors which, together, resulted
in adversely affecting economic growth during the year especially the
manufacturing economy, in
The Company was no
exception to these developments and its performance too was adversely hit by
the factors mentioned above during the year. Additionally, a weak Indian Rupee
hurt imports and exerted additional pressure on the margins during the year. As
a consequence, the Company's profitability and profits were lower when compared
with the previous years.
The Company nevertheless
continues to take several counter measures to mitigate the situation to the
extent best possible by continuing to focus on cutting costs, creating cost
effective alternatives and creating higher value added through the use of R and
D, Innovation and supply chain improvements.
Manufacturing of higher
quality products in all its business lines especially focused on addressing
concerns of environment, safety and energy efficiency supported by strong
technical services and solutions provision remain the major drivers of the
Company's business activities.
SEGMENT WISE PERFORMANCE
Electrical
Insulation Systems
The Company's
Business Lines-Primary Insulations and Secondary Insulations which constitute
the Electrical Insulation Systems (EIS) business, continued to play a dominant
role in the overall business activities of the Company, by accounting for 84%
of total business of the Company.
The year
2012, will be marked as a watershed year in the annals of Indian Economic
History, where the economic growth decelerated, while inflation remained
stubbornly high during most part of the year. There was a marked economic
deceleration during the year even when compared to 2008, a year during which
the global economic meltdown occurred. Obviously, there are many explanations
which could be attributed to this phenomenon, however, the significant decline
in "Real Economy" or the manufacturing segment, is one of the major
factors that can be attributed to moderation in growth. According to latest CSO
estimates, the GDP growth, which is sliding back to back during FY 13, is
likely to touch a new low of just about 5%. The manufacturing segment in the
same period was one of the worst affected segments where the estimated growth
would be much below 2%.
The Indian
Electrical Industry, which is the primary user segment of our EIS products, has
not remained insulated from this incongruent situation, carving out its worst
performance of the last decade. According to the IEEMA statistics, the physical
output across all the segments of Electrical Equipment Industry, be it rotating
machines, transformers or switchgears, have come down on YoY basis, a clear
sign of demand contraction. The Industry as a whole has in fact registered a
negative growth of close to 4% during first half of current Fiscal with no
immediate revival in sight. The order book position is also at all time low
leading to sub optimal capacity utilization across various segments of Indian
Electrical Industry.
The
performance of the Company needs to be reviewed against the backdrop as
detailed above, particularly the on-going phase of demand contraction.
During the year,
the Company has been able to improve its already dominant position in EIS.
While the volume growth is 2.6% over 2011, the corresponding value growth is
close to 7%. These growth indices clearly indicate increased market penetration
and improved market share of the Company. This positive performance, the
present volatile situation, was possible due to sustained market oriented
timely actions taken by the Company including selective value engineering led
by strong R and D. The Company continues to be market leader in the arena of
Electrical Insulation Systems.
Going
forward, the chances of immediate demand revival appear to be bleak with
industry experts speculating the earliest revival only by end 2013. By and
large, this estimate is in sync with overall economic scenario that is being
witnessed currently. The Company however is reasonably certain of continuing
its growth momentum-albeit moderated, with a blend of innovative business
strategies combined with a focused market driven R and D efforts to remain
ahead at market place.
Electronic
and Engineering Materials
The
business segment today primarily includes Electronic and Electrical (EL)
Compounds and deals with Speciality Epoxy and Polyurethane products for Auto
Electric and Electronic, Power and Electronic capacitors. Transformer Castings,
Current and Potential Transformers, PCB Protection etc. This is an outcome of
the Company having discontinued supplying speciality resins for special purpose
paint applicators to a single customer.
As was seen
in case of Electrical Insulations Systems, this business segment too was
adversely affected during the year due to high raw material costs, a week rupee
and a significant demand slowdown, especially in the second half of the year.
The
business of Electronic and Electrical Compounds is a major thrust area for the
Company. The Company's offerings by way of Speciality Epoxy and Polyurethane
Products with excellent Thermal, Electrical and Mechanical properties for Auto
and allied industries, have been well received by the markets and slowly
beginning to be distinguished as speciality offerings. This will enable them to
combat the competitive pressures from low-cost, commoditized product offerings
also present, and enable the Company to explore appropriate value creation
opportunities in this business.
Despite the
gradual slowing down of automotive production from the third quarter of the
year, which believe is a temporary situation arising out of global concerns in
response to the crisis of confidence in the Euro Zone, the Indian Auto industry
is growing and India is poised to become a major hub for Auto Components
manufacturing. The Company looks forward to offer world-class products in line
with the global technical specifications and has geared up to meet these
challenges. Company offers UL (Underwriters Laboratory) approved, RoHS and
REACHES compliant products to meet specific customer demand.
The Company
is focusing its efforts to offer/develop import substitute particularly for
Electronic Sector, targeted at attaining major growth and an improved market
position for this product line. These efforts encompass technical improvements
through a systematic scale-up process as well as enhancement in response time
for new product and applications development. In addition, certain new products
were developed and added in this market which will help create opportunities to
expand our markets. The response from the customers to such new products was
quite encouraging.
In order to
address concerns about continuing future availability of key raw materials,
efforts are being made to develop alternative sources for our inputs in
addition to trying to explore Synthetic raw material alternatives in place of
materials of natural origin.
PRESS REALEASE:
ALTANA increases
sales and earnings again in 2012
- Sales of the specialty chemicals Group rise by 5 percent to € 1.7 billion
- EBITDA reach es €323 million, with a margin of 19 percent
- Double-digit increase in research and development investments
- Further profitable growth and high investments planned for 2013
The specialty chemicals group ALTANA increased sales by 5 % to € 1.7 billion in the business year 2012, thereby achieving the target level set for the past business year despite economic headwind. Earnings before interest, taxes, depreciation and amortization (EBITDA) also grew by 5 %, reaching € 323 million. At 19%, the EBITDA margin remained at a high level. "In 2012, we proved once again that we are able to achieve profitable growth, even in a rapidly changing environment," stated Dr. Matthias L. Wolfgruber, CEO of ALTANA AG, at the press conference on the 2012 financial statements. "This was possible because we have implemented our growth strategy consistently and acted flexibly.
ALTANA was able to realize operating sales growth of 1%, despite stagnating sales volumes, by shifting to higher-grade specialty products and through price increases. Acquisitions contributed 1 % to the overall growth, positive exchange rate effects accounted for 3 %.
Double-digit growth at ACTEGA through acquisition
The BYK Additives and Instruments division, the Group's division with the highest turnover, increased sales by nominally 6 % to €618 million in 2012. Adjusted for positive exchange rate and acquisition effects, sales growth was 3%. As a result, BYK achieved the highest operating increase in sales within the ALTANA Group.
At € 341 million, sales in the ECKART Effect Pigments division were 2% down on the previous year (4% operating decrease). Positive exchange rate effects could not fully offset the ongoing market slowdown. The ELANTAS Electrical Insulation division, however, was able to continue its growth trend, achieving an increase in sales of 6% to € 413 million (2% operating growth).
The nominally highest sales increase in 2012 was achieved by the ACTEGA Coatings and Sealants division. At €334 million, sales were up 12% on the previous year (2% operating growth). This development was driven by the acquisition of the Colorchemie Group in mid-2011, which contributed to sales for a full business year for the first time in 2012.
Growth in the
In 2012,
6 percent of sales invested in research and development
In the business year 2012, ALTANA again invested disproportionately high amounts in research and development, boosting its RandD expenses considerably in comparison to the previous year, by 17% to €102 million. This corresponds to a share in sales of 6.0% (previous year: 5.4%). Three quarters of the research and development expenses were incurred at German sites.
At €90 million, capital expenditure on property, plant and
equipment and intangible assets in 2012 were at a comparable level to the
previous year. In particular due to the acquisition of the business for the
production of wax additives in the
Outlook 2013: growth despite continuing uncertain economic environment
According to ALTANA's expectations, there remains
uncertainty as to the further economic development in 2013, particularly in
ALTANA has planned investments of more than €100 million for
2013. This is a considerable increase on 2012, due to a few large projects,
including one project involving the expansion of production capacities at the
BYK division's
Key figures at a glance
|
ALTANA Group |
2012 |
2011 |
Change in % |
Change (operat.)* in % |
|
(in € million) |
|
|
|
|
|
Sales – total |
1,705 |
1,617 |
5 |
1 |
|
|
|
|
|
|
|
Sales by division |
|
|
|
|
|
BYK Additives and Instruments |
618 |
582 |
6 |
3 |
|
ECKART Effect Pigments |
341 |
347 |
-2 |
-4 |
|
ELANTAS Electrical Insulation |
413 |
391 |
6 |
2 |
|
ACTEGA Coatings and Sealants |
334 |
297 |
12 |
2 |
|
|
|
|
|
|
|
Sales by region |
|
|
|
|
|
|
752 |
741 |
1 |
-2 |
|
thereof |
266 |
259 |
3 |
-3 |
|
|
412 |
373 |
10 |
4 |
|
thereof
|
268 |
243 |
10 |
2 |
|
|
486 |
448 |
9 |
4 |
|
thereof
|
252 |
229 |
10 |
2 |
|
Other |
56 |
55 |
1 |
1 |
|
|
|
|
|
|
|
Earnings before interest, taxes, depreciation and amortization |
|
|
|
|
|
(EBITDA) |
323 |
308 |
5 |
-1 |
|
Operating Income (EBIT) |
227 |
217 |
5 |
|
|
Earnings before taxes (EBT) |
217 |
208 |
5 |
|
|
Net income (EAT) |
155 |
148 |
5 |
|
|
|
|
|
|
|
|
Research and development expenses |
102 |
88 |
17 |
|
|
Headcount (31.12.) |
5.363 |
5.313 |
1 |
|
* Adjusted for exchange rate as well as ac quisition and divestment effects
FIXED ASSETS:
Tangible Assets
- Buildings and Roads
- Plant and Machinery
- Furniture and Fixtures
- Motor Vehicles
- Computer Software
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 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. 57.74 |
|
|
1 |
Rs. 90.64 |
|
Euro |
1 |
Rs. 77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
70 |
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.