MIRA INFORM REPORT
|
Report Date : |
15.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ORIENT ABRASIVES LIMITED |
|
|
|
|
Registered
Office : |
1307, Chiranjiv Tower, 43, Nehru Place, New Delhi -110 019 |
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Country : |
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|
|
|
Financials (as
on) : |
31.03.2012 |
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|
|
|
Date of
Incorporation : |
12.11.1971 |
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|
|
|
Com. Reg. No.: |
55-005854 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.119.652
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24299DL1971PLC005854 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RKTO00158 E |
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|
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PAN No.: [Permanent Account No.] |
AAACO0221C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The company engaged in the production and selling of Fused Aluminum Oxide Grains, Calcined Products and Generation of Power. |
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|
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No. of Employees
: |
600 (Approximately) |
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 5200000 |
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|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. There appears some dip in the turnover and profitability of the company which is due to demerger of the refractory business of the company to Orient Refractories Limited. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered normal for 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 |
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 : |
1307, |
|
Tel. No.: |
91-11-26449480/ 26462225/ 26425446/ 26425447/ 46425400 |
|
Fax No.: |
91-11-26443859/ 46425444 |
|
E-Mail : |
|
|
Website : |
http://www.orientabrasives.com |
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|
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|
Factory 1 : |
High Alumina Raw Materials (Abrasives Grains and Power Division) GIDC Industrial Area, Porbandar - 360 577, |
|
Tel. No.: |
91-286-242913/ 241788/ 789/ 246064 |
|
Fax No.: |
91-286-242719 |
|
E-Mail : |
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Factory 2 : |
Bonded Abrasives
Division: SP-148A, RIICO Industrial Area, Bhiwadi, District Alwar, |
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Factory 3 : |
Refractories Division: SP – 148B, RIICO Industrial Area, Bhiwadi, District Alwar, |
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Factory 4 : |
13/1B, Mullathopu, Mamangam Post, |
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Regional Office : |
Located at:
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DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Rajendra Kumar Rajgarhia |
|
Designation : |
Chairman |
|
Date of Birth : |
14.08.1938 |
|
Date of Appointment : |
09.12.1980 |
|
Experience : |
Mr. R K Rajgarhia is an eminent industrialist with about 48
years of experience. He is the eldest brother of Company’s Managing Director.
He has been associated with the Company since 1980 as an ordinary Director.
He has been the Chairman of the Company since May, 1998. |
|
Directorship in
other Companies : |
1. APM Industries Limited 2. Perfectpac Limited 3. Gini Silk Mills Limited 4. Rajgarhia Leasing and Financial Services Private Limited |
|
|
|
|
Name : |
Mr. Rama Shankar Bajoria |
|
Designation : |
Director |
|
Date of Birth : |
17.05.1943 |
|
Date of Appointment : |
30.07.2001 |
|
Qualifications : |
B.Com. |
|
Experience : |
Wide experience in Rubber Industry |
|
Directorship in
other Companies : |
|
|
|
|
|
Name : |
Mr. Sudhir Kumar Samarendra Narayan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tribhuvan Nath Chaturvedi |
|
Designation : |
Director |
|
Date of Birth : |
15.01.1959 |
|
Date of Appointment : |
30.07.2011 |
|
Qualifications : |
Chartered Accountant |
|
Experience : |
Wide experience in Institutional Finance, Corporate Restructuring, Financial Due plants of the Company. projects works, maintenance Diligence, Auditing, Corporate and production. Laws and Taxation. |
|
Directorship in
other Companies : |
|
|
|
|
|
Name : |
Mr. Umesh K Khaitan |
|
Designation : |
Director |
|
Date of Birth : |
20.12.1948 |
|
Date of Appointment : |
11.02.1997 |
|
Experience : |
Mr. Umesh Kumar Khaitan is an accomplished Lawyer
practicing both in the Supreme Court and the High Courts. He has experience of
about 42 years in the field of law. He is also on the Board of some other
well known companies. |
|
Directorship in
other Companies : |
|
|
|
|
|
Name : |
Mr. Shri Gopal Rajgarhia |
|
Designation : |
Managing Director |
|
Qualification : |
B. Tech. (Hons.), S. M. (MIT) |
|
Date of Appointment : |
01.08.1973 |
|
|
|
|
Name : |
Mr. Prem Prakash Khanna |
|
Designation : |
Executive Director |
|
Date of Birth : |
03.04.1939 |
|
Date of Appointment : |
07.10.2006 |
|
Qualifications : |
B.Sc., BE, AMIE |
|
Experience : |
Wide experience in setting up manufacturing and power plants of the Company. |
|
Directorship in
other Companies : |
|
KEY EXECUTIVES
|
Name : |
Mr. R K Khanna |
|
Designation : |
President |
|
Date of Birth/Age : |
25.01.1953 |
|
Date of Appointment : |
11.08.2012 |
|
Qualification : |
B.E. |
|
Experience : |
Wide experience in implementation of various projects works, maintenance and production. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
57688333 |
48.22 |
|
|
15580 |
0.01 |
|
|
231000 |
0.19 |
|
|
231000 |
0.19 |
|
|
57934913 |
48.42 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
57934913 |
48.42 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
40500 |
0.03 |
|
|
40500 |
0.03 |
|
|
|
|
|
|
13918999 |
11.63 |
|
|
|
|
|
|
23574724 |
19.70 |
|
|
21844148 |
18.26 |
|
|
2325916 |
1.94 |
|
|
508168 |
0.42 |
|
|
45595 |
0.04 |
|
|
1772153 |
1.48 |
|
|
61663787 |
51.54 |
|
Total Public shareholding (B) |
61704287 |
51.58 |
|
Total (A)+(B) |
119639200 |
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) |
119639200 |
0.00 |
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
|
|
Bodies corporate |
|
|
Directors or relatives of Directors |
|
|
Other top fifty shareholders |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company engaged in the production and selling of Fused
Aluminum Oxide Grains, Calcined Products and Generation of Power. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011):
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Fused Aluminium Oxide Grains |
MT |
28500 |
27538 |
|
Calcined Products |
MT |
74250 |
25279 |
|
Refractories |
MT |
16000 |
15830 |
|
Monolithics |
MT |
28000 |
17334 |
|
Ceramic Paper |
Pcs |
20000 |
1476 |
|
Waste |
MT |
--- |
24564 |
|
Windmill Power |
MW |
9.6 MW/Hour |
9922 |
NOTES:
1. Production of Fused Aluminum Oxide
Grains includes 7,661 MT for captive consumption (Previous year 6,978 MT).
2. Production of Calcined Products
includes 8,530 MT for captive consumption (Previous year 36,980 MT).
3. Production of Refractories
includes Nil for captive consumption (Previous year 6 MT).
4. Production of Monolothics
includes 72 MT for captive consumption (Previous year 3231 MT).
5. Production of waste includes
521 MT used for captive consumption (Previous year 519 MT).
GENERAL INFORMATION
|
No. of Employees : |
600 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
|
|
|
Subsidiaries : |
Orient Refractories Limited |
|
|
|
|
The Enterprises
controlled, owned or significantly influenced by key management personnel or
their relatives. |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120000000 |
Equity Shares |
Re.1/- each |
Rs.120.000 millions |
|
400000 |
Redeemable Cumulative Preference shares |
Rs.100/- each |
Rs.40.000 millions |
|
|
Total |
|
Rs.160.000
Millions |
Issued & Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
119659200 |
Equity Shares |
Re.1/- each |
Rs.119.659
millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
119639200 |
Equity Shares |
Re.1/- each |
Rs.119.639
millions |
|
|
Add : Shares Forfeited |
|
Rs.0.013
million |
|
|
Total |
|
Rs.119.652 millions |
|
Particular |
31.03.02012 |
|
Reconciliation of the Equity Shares outstanding at the beginning and at the end of reporting period 119639200 (Previous year 119639200) Equity Shares of Rs.1.00 each |
119.639 |
|
Outstanding at the
year end 119639200 (previous
year 119639200) equity shares of Rs.1.00 each |
119.639 |
Terms/rights attached
to equity shares
The company has only one class of equity shares having a par value of Rs.1.00 per share. The holder of each fully paid equity share is entitled to one vote. The Company declares and pays dividends in Indian rupees.
The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.
During the year ended March 31, 2012, the amount of per share dividend recognized as distributions to equity shareholders is Rs.0.20 (Previous year Rs.1.00)
In the event of liquidation of the Company, holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Aggregate number of bonus shares issued and shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:
|
Particular |
31.03.02012 |
|
Equity shares issued as fully paid bonus shares by capitalisation of capital redemption reserve, securities premium and general reserve (No. in Lacs) |
598.20 |
Details of
shareholders holding more than 5% shares in the Company
|
Name |
No. Lacs |
%' age holding |
|
Mr. S G Rajgarhia |
177.86 |
14.87 |
|
Ms. Anisha Mittal |
132.31 |
11.06 |
|
S G Rajgarhia (HUF) |
80.15 |
6.70 |
|
Ms. Bhavna Rajgarhia |
82.62 |
6.91 |
|
Mrs. Usha Rajgarhia |
65.82 |
5.50 |
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 |
119.652 |
119.652 |
119.652 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1197.627 |
1717.427 |
1385.520 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1317.279 |
1837.079 |
1505.172 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
457.829 |
779.241 |
492.127 |
|
|
2] Unsecured Loans |
26.115 |
9.535 |
141.125 |
|
|
TOTAL BORROWING |
483.944 |
788.776 |
633.252 |
|
|
DEFERRED TAX LIABILITIES |
102.308 |
99.332 |
55.984 |
|
|
|
|
|
|
|
|
TOTAL |
1903.531 |
2725.187 |
2194.408 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1229.432 |
1403.340 |
1189.319 |
|
|
Capital work-in-progress |
6.321 |
35.818 |
133.202 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.526 |
0.526 |
0.027 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
3.398 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
471.702
|
829.217 |
658.051
|
|
|
Sundry Debtors |
287.341
|
707.191 |
576.059
|
|
|
Cash & Bank Balances |
18.521
|
31.508 |
25.955
|
|
|
Other Current Assets |
25.866
|
45.556 |
3.920
|
|
|
Loans & Advances |
143.487
|
293.428 |
134.726
|
|
Total
Current Assets |
946.917
|
1906.900 |
1398.711 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
127.668
|
402.891 |
302.680
|
|
|
Other Current Liabilities |
110.304
|
186.847 |
60.208
|
|
|
Provisions |
41.693
|
31.659 |
167.361
|
|
Total
Current Liabilities |
279.665
|
621.397 |
530.249 |
|
|
Net Current Assets |
667.252
|
1285.503 |
868.462
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1903.531 |
2725.187 |
2194.408 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1671.363 |
3658.897 |
3217.836 |
|
|
|
Other Income |
12.198 |
39.014 |
58.191 |
|
|
|
TOTAL (A) |
1683.561 |
3697.911 |
3276.027 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw and components consumed |
516.229 |
1199.332 |
|
|
|
|
Purchase of traded goods |
0.000 |
351.621 |
2428.378 |
|
|
|
Increase in inventories |
(50.887) |
(129.161) |
|
|
|
|
Employee benefits expenses |
117.908 |
305.559 |
|
|
|
|
Other expenses |
785.638 |
1168.028 |
|
|
|
|
TOTAL (B) |
1368.888 |
2895.379 |
2428.378 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
314.673 |
802.532 |
847.649 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
65.781 |
78.388 |
51.573 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
248.892 |
724.144 |
796.076 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
123.130 |
129.821 |
108.061 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
125.762 |
594.323 |
688.015 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
34.357 |
125.972 |
176.365 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
91.405 |
468.351 |
511.650 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
384.534 |
312.395 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
300.000 |
300.000 |
|
|
|
Interim Dividend on Equity Shares |
NA |
119.639 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
NA |
0.000 |
119.639 |
|
|
|
Corporate Dividend Tax |
NA |
19.871 |
19.872 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
413.375 |
384.534 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
7.256 |
408.078 |
311.399 |
|
|
|
Royalty |
0.000 |
3.101 |
2.338 |
|
|
TOTAL EARNINGS |
7.256 |
411.179 |
313.737 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5.783 |
190.882 |
170.424 |
|
|
|
Stores & Spares |
33.407 |
40.669 |
39.386 |
|
|
|
Capital Goods |
10.104 |
0.804 |
2.203 |
|
|
|
Goods purchased for resale |
0.000 |
7.380 |
10.367 |
|
|
TOTAL IMPORTS |
49.294 |
239.735 |
222.380 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.76 |
3.91 |
4.28 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
417.500 |
403.300 |
510.200 |
|
Total Expenditure |
338.800 |
329.400 |
383.100 |
|
PBIDT (Excl OI) |
78.700 |
73.900 |
127.200 |
|
Other Income |
01.200 |
00.100 |
00.200 |
|
Operating Profit |
79.800 |
74.000 |
127.400 |
|
Interest |
15.100 |
14.300 |
11.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
64.700 |
59.700 |
115.900 |
|
Depreciation |
31.800 |
31.800 |
32.000 |
|
Profit Before Tax |
32.900 |
27.900 |
83.900 |
|
Tax |
04.400 |
07.600 |
18.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
28.500 |
20.300 |
65.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
28.500 |
20.300 |
65.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.43
|
16.65 |
15.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.52
|
16.24 |
21.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.78
|
17.95 |
26.58 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.32 |
0.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.37
|
0.43 |
0.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.39
|
3.07 |
2.64 |
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 |
No |
|
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 |
OPERATIONS REVIEW AND
FUTURE OUTLOOK
The financial results for the year ended March 31, 2012 are for the businesses remaining with the Company, after giving effect to the scheme of demerger and accordingly, are not strictly comparable with the previous corresponding period and hence not given here.
During the year the Company has achieved a Gross Turnover of Rs.1836.079 Millions. Gross profit and Net profit are Rs.125.762 Millions and Rs.91.405 Millions respectively. The performance of the abrasive grains division was overall satisfactory during the year. The turnover of the abrasive grains increased to Rs.1263.244 Millions from Rs.873.101 Millions growing by 45% .
The Company has a total thermal power plant capacity of 18 Mega Watt (MW) out of which 9 MW is based on coal and 9 MW on furnace oil. The thermal power plant based on coal is more economical and operating at full capacity and satisfactorily meeting the maximum power requirement of the abrasive grains division, Porbandar. Due to increase in the price of furnace oil, the furnace oil based power plant is used as and when required and found viable.
That the Company has also wind generation power plants having capacity of 11.1 MW, located at Jodhpur and Jaisalmer in Rajasthan and Kalmangi and Gajendragarh in Karnataka. These plants are operating satisfactorily, the power generated by these plants are sold to the respective state power distribution companies. During the year gross revenue for sale of power increased to Rs.82.413 Millions from Rs.41.035 Millions in the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
GENERAL REVIEW
The Company was incorporated in the year 1971 in New Delhi. The Company has three business divisions namely the Abrasives Grains Division at Porbandar, Gujarat that manufactures fused alumina grains and calcined products, the Refractory Monolithics Division that manufactures refractory castables and monolithics and the Power division comprising of thermal power plants and wind turbine generators.
The Abrasives Grains Division, the first of Company’s all divisions, was established in the year 1974. The Company established Refractory Division in 1985 at Bhiwadi, Rajasthan, which was demerged in the year 2011-12.
The Company also has a Power Division that generates electricity for captive consumption which was set up in 1998 and expanded in 2007 with the addition of a 9 MW coal based thermal power plant. In 2010, the Company ventured into green energy projects by setting up wind turbines. At present the total commissioned capacity of the wind farms is 11.1 MW. The power generated from the windmills is sold to the state electricity board with which there are power purchase agreements in place.
BUSINESS
DIVISIONS/SEGMENTS
As mentioned above, the Company has three major business segments in terms of the nature of output (i) Fused Aluminium Oxide Grains including Calcined Products (ii) Refractories Monolithics and (iii) Power Generation (Power Division), which have been elucidated in the following paragraphs:
Abrasive Grains
The Abrasives Grains Division at Porbandar is the first manufacturing unit set up by the Company. The division manufactures calcined bauxite and fused aluminium oxide abrasive grains. Raw bauxite and calcined alumina are the basic raw materials used for the manufacture of abrasive grains. Raw bauxite is procured from mines owned by the Company and others and calcined alumina is purchased from aluminium companies, Hindalco Industries Limited being prominent amongst them. These products are used in the manufacturing of refractories and grinding wheels and coated abrasives.
Refractories
Monolithics
The Company manufactures refractory castables and monolithics used in the cement and steel industries. It is also located at Porbandar, Gujarat.
Power Generation
The Company has a total thermal power plant capacity of 18 MW out of which 9 MW is based on coal and 9 MW on furnace oil. The thermal power plant based on coal is more economical and is operated at full capacity. The electricity from this power division is meant for captive consumption by the manufacturing division at Porbandar.
The Company also has wind power generation capacity of 11.1 MW. The power generated by these plants is sold to the respective state power distribution companies.
FINANCIALS AND
INTERNAL CONTROL
Post demerger of refractory undertaking the gross turnover of the Company during the year ended March 31, 2012 was Rs.1836.100 Millions. Gross profit and net profit were Rs.125.800 Millions and Rs.91.400 Millions respectively. However the gross profit and the net profit declined due to abnormal increase under various heads of expenditure.
The Company has an adequate internal control system which is commensurate with its size and which adopts the best practices prevalent in the industry. Besides conducting internal audit at regular intervals and implementing the measures suggested from time to time there is a statutory audit committee comprising of independent directors in place to oversee the internal control processes in the Company.
CONCERNS AND FUTURE
OUTLOOK
The demand for abrasive grains on the domestic front is increasing steadily. The Company has adequate production capacity and technology to meet the increased demand while maintaining the quality.
The abrasive grains division is a power intensive unit and at present it depends on the state supplier and captive thermal power plant to fulfill its energy needs. The in house power plant was set up to economise on the cost of electricity and to avail uninterrupted supply. However since the cost of generation has increased over the years due to steep rise in fuel costs, the capacity availed from the state electricity board is being reviewed as an alternative. There was an increase in demand of royalty by the Gujarat Government for the low grade bauxite mine and exported by the Company in the previous years, which is being contested at higher levels by all the affected parties including the Company. The availability of abrasive grade bauxite is a matter of concern. The reserves in their mines are depleting. The Company is making efforts to get more mining leases. Efforts are also underway for importing the raw material.
Except for the above concerns, the future of the Company looks encouraging. The wind turbines have started generation on full scale which will increase the sales and profits in the coming years.
CONTINGENT LIABILITIES (NOT PROVIDED) IN RESPECT OF:(Rs. In Millions)
Particulars |
31.03.2012 |
31.03.2011 |
|
|
|
Power claim matters decided in favour of the Company by the District Court (Civil Court, Senior Division, Porbandar) but Pashim Gujarat Vidyut Company Limited has gone into further appeal before Hon'ble High Court of Gujarat,* |
33.802 |
33.802 |
|
Sales tax and interest demand raised by Kolkata Sales tax
authorities for non- submission of declarations forms for the year 1993-94. |
0.375 |
0.375 |
|
Demand raised by the Income Tax Authorities, being
disputed by the Company |
228.952 |
175.669 |
|
Show cause issued by service tax authorities for input tax
credit availed on foreign business auxiliary
services, consulting engineer service, Telephone service and insurance
service. |
0.000 |
8.548 |
Demand for payment of royalty |
380.946 |
128.907 |
Cases pending with Labour Courts # |
|
(Amount unascertainable) |
* In view of decision already in favour of Company by the District Court (Civil Court, Senior Division, Porbandar) and based on discussion with the solicitors, the management believes that the Company has a strong chance and hence no provision there against is considered necessary.
#In view of large number of cases, it is not practicable to disclose individual details of all the cases. On the basis of current status of individual case and as per legal advice obtained by the Company, wherever applicable, the Company is of view that no provision is required in respect of these cases.
UNSECURED
LOAN
Rs.
In Millions
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
LONG-TERM
BORROWINGS |
|
|
|
Other loans and
advances |
|
|
|
Deposits from shareholders |
7.100 |
13.560 |
|
Deposits from public |
0.550 |
0.950 |
|
Less: Current maturities of deposits disclosed under other current liabilities |
(4.950) |
(4.975) |
|
SHORT-TERMS
BORROWINGS |
|
|
|
Loan from body corporate |
13.354 |
0.000 |
|
Loan from director |
10.061 |
0.000 |
|
Total |
26.115 |
9.535 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2012
Rs. In Millions
|
SI.No. |
Particulars |
Quarter ended 31.12.2012 Unaudited |
Quarter ended 30.09.2012 Unaudited |
Nine Months ended 31.12.2012 Unaudited |
|
1 |
Income from
Operations |
|
|
|
|
|
(a) Net Sales/Income from operations (Net of excise duty) |
508.590 |
402.973 |
1326.676 |
|
|
(b) Other operating income |
1.610 |
0.335 |
2.681 |
|
|
Total Income from
Operations |
510.200 |
403.308 |
1329.357 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
142.779 |
131.252 |
417.549 |
|
|
(b) Change in inventories of finished goods, work in progress and stock in trade |
4.462 |
(32.717) |
(56.816) |
|
|
(c) Stores and spares consumed |
46.019 |
49.779 |
1,47.249 |
|
|
(d) Employee benefit expenses |
37.513 |
34.872 |
1,08.251 |
|
|
(e) Depreciation and amortisation expense |
31.979 |
31.843 |
95.664 |
|
|
(f) Power and fuel |
125.285 |
121.097 |
3,59.790 |
|
|
(g) Other expenses |
26.995 |
25.135 |
73.637 |
|
|
Total expenses |
415.032 |
361.261 |
11,45.324 |
|
3 |
Profit/(loss) from operations
before other income, interest, finance costs and exceptional items (1-2) |
95.168 |
42.047 |
1,84.033 |
|
4 |
Other income |
0.203 |
0.090 |
1.452 |
|
5 |
Profit/(loss) from
ordinary activities before finance cost and exceptional items (3+4) |
95.371 |
421.37 |
1,85.485 |
|
6 |
Finance costs |
11.480 |
14.255 |
40.827 |
|
7 |
Profit/(loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
83.891 |
27.882 |
1,44.658 |
|
8 |
Exceptional items |
_ |
_ |
_ |
|
9 |
Profit/(loss) from
ordinary activities before tax (7-8) |
83.891 |
27.882 |
1,44.658 |
|
10 |
Tax expenses |
18.304 |
7.614 |
30.338 |
|
11 |
Net Profit/(loss)
from ordinary activities after tax (9-10) |
65.587 |
20.268 |
1,14.320 |
|
12 |
Extraordinary items |
_ |
_ |
_ |
|
13 |
Net Profit/(loss)
for the period (11-12) |
65.587 |
20.268 |
1,14.320 |
|
14 |
Paid-up Equity Share Capital (Face Value Re. 1/- per share) (including forfeited amount of Rs. 13,044) |
119.652 |
119.652 |
1,19.652 |
|
15 |
Reserves Excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year |
|
_ |
_ |
|
16 |
Earning Per Share (EPS) (Rs.) |
|
|
|
|
|
(a) Basic and Diluted Earning per share (of Re. 1/-each) before Extraordinary Items (not annualized) (Rs.) |
0.55 |
0.17 |
0.96 |
|
|
(b) Basic and Diluted Earning per share (of Re. 1/-each) after Extraordinary Items (not annualized) (Rs.) |
0.55 |
0.17 |
0.96 |
|
|
|
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
_ Number of shares |
61,704,287 |
61,704,287 |
61,704,287 |
|
|
_ Percentage of shareholding |
51.58% |
51.58% |
51.58% |
|
|
|
|
|
|
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
NIL |
NIL |
NIL |
|
|
_Number of shares |
NA |
NA |
NA |
|
|
_Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
|
|
|
|
|
_Percentage of shares (as a % of the total share capital of company) |
NA |
NA |
NA |
|
|
b) Non _ encumbered |
|
|
|
|
|
_Number of shares |
57,934,913 |
57,934,913 |
57,934,913 |
|
|
_Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100% |
100% |
100% |
|
|
_Percentage of shares (as a % of the total share capital of company) |
48.42% |
48.42% |
48.42% |
|
|
|
|
|
|
|
B. |
INVESTOR COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
|
Received during the quarter |
3 |
|
|
|
|
Disposed off during the quarter |
3 |
|
|
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
Note:
1. The above financial results were reviewed by audit committee and approved by the Board of Directors at their meeting held on February 05, 2013.
2. Statutory auditors have carried out limited review on above results for the quarter ended December 31, 2012.
3. Previous period figures have been regrouped/rearranged, wherever considered necessary, to conform to the current quarter classification.
4. The Company, in terms of approval obtained from state government, has commenced sale of non plant grade bauxite during the quarter.
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED
Rs. In Millions
|
|
Quarter ended |
Year to Date ended |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
1. Segment Revenue |
|
|
|
|
A. Fused Aluminium Oxide Grains including calcined products |
472.730 |
356.151 |
1197.552 |
|
B. Monolithics |
45.375 |
44.637 |
131.700 |
|
C. Power Division |
104.608 |
140.274 |
369.863 |
|
Total |
622.713 |
541.062 |
1699.115 |
|
Add: Unallocated corporate income |
0.203 |
0.090 |
1.452 |
|
Less: Inter Segment Revenue |
112.513 |
137.754 |
369.758 |
|
Net sales / Income
from Operations |
510.403 |
403.398 |
1330.809 |
|
|
|
|
|
|
2. Segment Results (Profit before interest
and Tax) |
|
|
|
|
A. Fused Aluminium Oxide Grains including calcined products |
94.196 |
15.583 |
137.103 |
|
B. Monolithics |
12.109 |
(3.986) |
4.951 |
|
C. Power Division |
(5.489) |
36.749 |
60.853 |
|
Total |
100.816 |
48.346 |
202.907 |
|
Less : Interest |
11.480 |
14.255 |
40.827 |
|
Less : Unallocable expenditure/(income) (net) |
5.445 |
6.209 |
17.422 |
|
Profit Before tax |
83.891 |
27.882 |
144.658 |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
A. Fused Aluminium Oxide Grains |
921.203 |
978.279 |
921.203 |
|
including calcined products |
|
|
|
|
B. Monolithics |
42.890 |
37.728 |
42.890 |
|
C. Power Division |
850.295 |
914.542 |
850.295 |
|
D. Unallocated |
(382.818) |
(564.537) |
(382.818) |
|
Total |
1431.570 |
1366.012 |
1431.570 |
FIXED ASSETS
v Land (Leasehold, Freehold and Improvement)
v Building
v Plant and Machinery
v Furniture and Fixture
v Office Equipments
v 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.54.44 |
|
|
1 |
Rs.81.33 |
|
Euro |
1 |
Rs.70.50 |
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.