MIRA
INFORM REPORT
|
Report Date : |
18.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
CARBORUNDUM UNIVERSAL LIMITED PRODORITE ANTICORROSIVES - A DIVISION OF CARBORUNDUM UNIVERSAL LIMITED |
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Registered
Office : |
Parry House, 43 Moore Street, Chennai – 600001, Tamil Nadu |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
21.04.1954 |
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Com. Reg. No.: |
18-000318 |
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Capital
Investment / Paid-up Capital : |
Rs.187.400
Millions |
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CIN No.: [Company Identification
No.] |
L29224TN1954PLC000318 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEC00173F |
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PAN No.: [Permanent Account No.] |
AAACC2474P |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer and seller of mainly Abrasives, ceramics (industrial ceramics, refractories) and Electrominerals. |
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No. of Employees
: |
4000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 25000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track
record. Financial position of the company appears to be sound. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can be considered normal for 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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 |
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 |
CRISIL |
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Rating |
AA+ (Cash Credit) |
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Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligation it carry very low credit risk. |
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Date |
December 2011 |
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 : |
Parry House, 43 Moore Street, Chennai-600001, Tamil Nadu, India |
|
Tel. No.: |
91-44-25211652/ 25306789/ 42216789/ 30006199 |
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Fax No.: |
91-44-25230706/ 42216149 |
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E-Mail : |
mmm@cumiho.rpgms.ems.vsnl.net.in |
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Website : |
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Plant : |
a) 655, Thiruvottiyur High Road, P B No.2272, Tiruvottiyur, Chennai – 600019, Tamil Nadu, India Tel : 91-44-39249000 / 9001 Fax :91-44-25730717 b) Plot No.48, SIPCOT Industrial Complex, Hosur 635126, Dharmapuri District, Tamil Nadu, India Tel:91-4344-304000/304067/304068, Fax:91-4344-277060 c) Gopalpur Chandigarh, PO. Ganga Nagar, Kolkata 700132, West Bengal, India Tel :91-33-32023243 Fax :91-33-25386331 d) C-4 and C-5, Kamarajar Salai, MMDA Industrial Complex, Maraimalai Nagar 603209 Kancheepuram District, Tamil Nadu, India Tel :91-44-30006301 / 6302 Fax :91-44-27453097 e) F-1/2, F2 - F5, SIPCOT Industrial Park, Pondur "A" Village, Sriperumbudur - 602105. Kanchipuram District, Tamil Nadu, India Tel:91-44-30006400/6401 Fax :91-44-30006410 f) K3, ASAHI Industrial Estate, Latherdeva Hoon, Mangalore Jhabrera Road, PO Jhabrera Tehsil Roorkee, Hardwar District, Uttranchal - 247667, India Tel:91-1332-398335 Fax:91-1332-398325 g) Plot No.77, Bommasandra, Jigani Link Road, Jigani Industrial Area, Jigani, Bengaluru 526 106, Karnataka, India Tel :91-80-27839041/42/43/44 Fax :91-80-27839040 h) PB No.1 Kalamassery, Development Plot P.O, Kalamassery 683109, Ernakulam District, Kerala, India Tel :91-484-3023600 Fax :91-484-2532019 i) PB No. 3 Nalukettu, Koratty 680 308, Trichur District, Kerala, India Tel :91-480-3023017 Fax :91-480-2732821 j) Bhatia Mines, Bhatia Western Railway, Jamnagar - 361315, District, Gujarat, India Tel :91-2891-233464 k) PB No.2 Okha Port PO., Jamnagar - 361350, District, Gujarat, India Tel :91-2892-262063, Fax :91-2892-262928 l) Plot No.7 and 18, Cochin Special Economic Zone (CSEZ), Kakkanad 682037, Kochi, Kerala, India Tel :91-484 - 3023735 Fax:91-484 - 2413376 m) Plot No.47, SIPCOT Industrial Complex, Hosur 635126 Dharmapuri District, Tamil Nadu, India Tel :91-4344-304200/ 304286 Fax :91-4344-276028 n) Super Refractories Division, Plot No.102 and 103, SIPCOT Industrial Complex (Phase II), Ranipet 632403, Tamil Nadu, India Tel : 91-4172-306700 Fax :91-4172-244982 o) Super Refractories Division - Plant 2, Serkaddu Village, Vinnampalli Post, Katpadi Taluk, Vellore District - 632516, Tamil Nadu, India Tel : 91- 4172 - 306800/6802 Fax :91- 4172 - 306830 p) Plot Nos. 35,37, 48-51, Adhartal Industrial Estate, Jabalpur - 482004, Madhya Pradesh, India Tel : 91-761-3265004 / 5005, Fax: 91-761-2680678 q) Maniyar Hydroelectric Works, Maniyar PO., Vadasserikara, Pathanamthitta District, Kerala 689662, India Tel : 91-4735-274223 Fax :91-4735-274223 r) 29- Jigani Ind Area, Jigani - Anekal Taluk, Bengaluru 560105, Karnataka, India Tel : 91-80-27825805 |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. M.M. Murugappan |
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Designation : |
Chairman |
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Name : |
Mr. Subodh Kumar Bhargava |
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Designation : |
Director |
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Name : |
Mr. T.L. Palani Kumar |
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Designation : |
Director |
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Name : |
Mr. Sridhar Ganesh |
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Designation : |
Director |
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Name : |
Mr. Shobhan M. Thakore |
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Designation : |
Director |
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Name : |
Mr. M. Lakshminarayan |
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Designation : |
Director |
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Name : |
Mr. Sanjay Jayavarthanavelu |
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Designation : |
Director |
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Name : |
Mr. K Srinivasan |
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Designation : |
Managing Director |
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Management
Committee: |
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Name : |
Mr. K. Srinivasan |
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Designation : |
Managing Director |
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Name : |
Mr. P.R. Ravi |
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Designation : |
President – Industrial Ceramics |
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Name : |
Mr. V. Ramesh |
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Designation : |
President - Abrasives |
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Name : |
Mr. M. Muthiah |
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Designation : |
Senior Vice President – Human Resources |
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Name : |
Mr. P. L. Deepak Dorairaj |
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Designation : |
Senior Vice-President (Operations) - Abrasives |
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Name : |
Mr. N. Ananthaseshan |
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Designation : |
Senior Vice-President - Electrominerals |
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Name : |
Mr. R. Rajagopalan |
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Designation : |
Senior Vice-President - Refractories and Prodorite |
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Name : |
Mr. Rajesh Khanna |
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Designation : |
Senior Vice President- Ceramics |
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Name : |
Sridharan Rangarajan |
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Designation : |
Chief Financial Officer |
KEY EXECUTIVES
|
Name : |
Mr. S. Dhanvanth Kumar |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
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11888372 |
6.34 |
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|
67241364 |
35.87 |
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|
79129736 |
42.21 |
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Total shareholding of Promoter and Promoter Group (A) |
79129736 |
42.21 |
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(B) Public Shareholding |
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|
17034557 |
9.09 |
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|
36841 |
0.02 |
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|
9227976 |
4.92 |
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|
31684652 |
16.90 |
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|
57984026 |
30.93 |
|
|
|
|
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|
7207974 |
3.84 |
|
|
|
|
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|
28426903 |
15.16 |
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|
13697296 |
7.31 |
|
|
1022409 |
0.55 |
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|
9835 |
0.01 |
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|
8262 |
0.00 |
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|
1004312 |
0.54 |
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|
50354582 |
26.86 |
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Total Public shareholding (B) |
108338608 |
57.79 |
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Total (A)+(B) |
187468344 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
187468344 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and seller of mainly Abrasives, ceramics (industrial ceramics, refractories) and Electrominerals. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Abrasives |
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|
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Bonded |
Tonne |
19640 |
15328 |
|
Coated |
In million sqm |
17.86 |
9.04 |
|
Industrial
Cloth |
Metre |
4500000 |
2451886 |
|
Ceramics |
|
|
|
|
Industrial
Ceramics |
Tonne |
5870 |
3598 |
|
Refractories |
Tonne |
36450 |
26057 |
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Electrominerals |
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|
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Grains |
Tonne |
25340 |
22706 |
GENERAL INFORMATION
|
No. of Employees : |
4000 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Chennai, |
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Direct Holdings
: |
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Holding Through
Subsidiaries : |
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Associates : |
Laserwords Private Limited, India |
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Joint Ventures : |
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CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Re.1/- each |
Rs.250.000 Millions |
|
|
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
187395562 |
Equity Shares |
Re.1/- each |
Rs.187.400
Millions |
|
|
|
|
|
a) Reconciliation of the shares outstanding at
the beginning and at the end of the reporting period
(Rs. In Millions)
|
Particulars |
As at 31.03.2012 |
|
|
Equity shares with
voting rights |
No. of shares |
value of shares |
|
Number of shares at the beginning of the year |
93470993 |
186.94 |
|
Add : Shares issued against ESOP scheme during the year before "Share-split" |
156022 |
0.32 |
|
Total number of
shares before "Share-split" |
93627015 |
187.26 |
|
Number of shares consequent to "Share-split" (Refer Note 3 (b) ) |
187254030 |
187.26 |
|
Add : Shares issued against ESOP scheme during the year after "Share-split" |
141532 |
0.14 |
|
Total number of
shares outstanding at the end of the year |
187395562 |
187.40 |
b) The shareholders, at the Extra-Ordinary General meeting of the Company held on 20th September 2011, approved subdivision of one equity share of Rs.2/- each into two equity shares of Re.1/- each.
c) Terms / Rights attached to Equity shares
The Company has only one class of equity shares having a par value of Re 1/- per share. Each holder of equity shares is entitled to one vote per share.
For the year ended March 31, 2012, final dividend of Re.1 per share has been proposed by the Board of Directors (Previous year Re.1 per share). An interim dividend of Re.1 per share was declared at the meeting of the Board of Directors held on February 4, 2012 and the same has been paid (Previous year Rs.1.50 per share).
The dividends proposed by the Board of Directors are subject to approval of the shareholders in the Annual General Meeting. Repayment of capital in the event of liquidation will be in proportion to the number of equity shares held.
d) Details of shares held by shareholders
holding more than 5% of the aggregate share in the Company
|
Name of shareholder |
As at 31.03.2012 |
|
|
No. of holding held |
% of shares |
|
|
Murugappa Holdings Limited |
55432284 |
29.58% |
|
Nalanda India Fund Limited |
16793362 |
8.96% |
|
Parry Agro Industries Limited |
-- |
-- |
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 |
187.400 |
186.940 |
186.710 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6178.540 |
5095.300 |
4101.930 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6365.940 |
5282.240 |
4288.640 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
870.320 |
2184.560 |
2648.060 |
|
|
2] Unsecured Loans |
97.500 |
88.840 |
176.350 |
|
|
TOTAL BORROWING |
967.820 |
2273.400 |
2824.410 |
|
|
Long Term Lease
Liability |
0.000 |
14.250 |
13.940 |
|
|
DEFERRED TAX
LIABILITIES |
425.300 |
420.580 |
415.300 |
|
|
|
|
|
|
|
|
TOTAL |
7759.060 |
7990.470 |
7542.290 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3853.290 |
3732.120 |
3457.220 |
|
|
Capital work-in-progress |
272.540 |
153.240 |
330.640 |
|
|
|
|
|
|
|
|
INVESTMENT |
1345.680 |
1640.560 |
1718.360 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1876.880
|
1548.040
|
1191.540
|
|
|
Sundry Debtors |
1847.160
|
1772.180
|
1600.220
|
|
|
Cash & Bank Balances |
104.230
|
78.160
|
61.320
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
703.780
|
508.930
|
429.500
|
|
Total
Current Assets |
4532.050
|
3907.310
|
3282.580
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
791.300
|
934.400
|
720.690
|
|
|
Other Current Liabilities |
1206.580
|
405.060
|
315.150
|
|
|
Provisions |
246.620
|
103.300
|
210.670
|
|
Total
Current Liabilities |
2244.500
|
1442.760
|
1246.510
|
|
|
Net Current Assets |
2287.550
|
2464.550
|
2036.070
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7759.060 |
7990.470 |
7542.290 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
11253.730 |
9125.660 |
7310.100 |
|
|
|
Income from Work Bills and Services |
0.000 |
71.490 |
71.060 |
|
|
|
Profit on |
0.000 |
0.00 |
0.000 |
|
|
|
Other Income |
154.880 |
337.360 |
238.160 |
|
|
|
TOTAL |
11408.610 |
9534.510 |
7619.320 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4283.010 |
7532.550 |
6180.510 |
|
|
|
Purchases of stock-in-trade |
462.540 |
-- |
-- |
|
|
|
Raw Material Consumed |
-- |
3999.050 |
3141.370 |
|
|
|
Changes in inventories of finished
goods, work-in-process and stock-in-trade |
(165.380) |
-- |
-- |
|
|
|
Employee Cost |
-- |
946.590 |
807.690 |
|
|
|
Other Costs |
-- |
2806.340 |
2279.340 |
|
|
|
Accretion to Stock |
-- |
(219.430) |
(47.890) |
|
|
|
Employee benefits expense |
1076.000 |
-- |
-- |
|
|
|
Other expenses |
3398.660 |
-- |
-- |
|
|
|
TOTAL |
9054.830 |
7532.550 |
6180.510 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2353.780 |
2001.960 |
1438.810 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
174.200 |
203.380 |
238.690 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
2179.580 |
1798.580 |
1200.120 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
435.530 |
399.880 |
353.420 |
|
|
|
|
|
|
|
|
|
Add/( Less) |
Exceptional
Items |
149.880 |
244.660 |
(5.000) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1893.930 |
1643.360 |
841.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
427.220 |
400.780 |
261.570 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
1466.710 |
1242.580 |
580.130 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1841.170 |
1640.260 |
1602.080 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.00 |
750.000 |
300.000 |
|
|
|
Tax on Debenture Redemption Reserve |
31.250 |
31.250 |
31.250 |
|
|
|
Dividend Tax |
51.490 |
-- |
-- |
|
|
|
Dividend |
374.770 |
260.450 |
210.670 |
|
|
|
Final Dividend (previous year)* |
0.110 |
-- |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
1850.260 |
1841.170 |
1640.290 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2414.030 |
1941.800 |
1338.120 |
|
|
|
Royalty |
3.890 |
2.510 |
2.370 |
|
|
|
Dividend and Interest |
24.890 |
30.080 |
30.520 |
|
\ |
|
Management Fees |
40.870 |
29.780 |
22.470 |
|
|
TOTAL EARNINGS |
2483.680 |
2004.170 |
1393.480 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2156.370 |
1869.920 |
1362.110 |
|
|
|
Components and Spare Parts |
49.950 |
19.220 |
21.840 |
|
|
|
Capital Goods |
128.150 |
171.980 |
130.980 |
|
|
TOTAL IMPORTS |
2334.470 |
2061.120 |
1514.930 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
7.83 |
13.29 |
6.21 |
|
|
|
Diluted |
7.81 |
-- |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
273.650 |
287.270 |
258.130 |
|
Total Expenditure |
234.020 |
244.090 |
229.040 |
|
PBIDT (Excl OI) |
39.630 |
43.180 |
29.090 |
|
Other Income |
10.640 |
2.140 |
2.990 |
|
Operating Profit |
50.270 |
45.320 |
32.080 |
|
Interest |
3.630 |
4.200 |
4.710 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
46.640 |
41.120 |
27.370 |
|
Depreciation |
12.100 |
11.770 |
11.840 |
|
Profit Before Tax |
34.540 |
29.350 |
15.530 |
|
Tax |
8.440 |
7.830 |
5.430 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
26.100 |
21.520 |
10.100 |
|
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 |
26.100 |
21.520 |
10.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
12.85
|
13.03 |
7.61 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.83
|
18.01 |
11.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
22.59
|
21.51 |
12.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.31 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.15
|
0.43 |
0.66 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.02
|
2.71 |
2.63 |
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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) |
Yes |
|
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 |
ECONOMIC OVERVIEW:
The global economic environment, which was tenuous during major part of year 2011, turned sharply adverse during the second half. Consequently the global growth rate was only 3.9 per cent compared to 5.3 per cent in the previous year. Sovereign risk concerns, particularly in the euro area, after effects of the earthquake and tsunami in Japan, unrest in certain oil-producing countries and downgrading by rating agencies of the US economy were some of the developments which resulted in weak global activity.
In India, the economy grew by 6.9 per cent in 2011-12 (as per Advance Estimates), after having grown at the rate of 8.4 per cent in each of the two preceding years. With agriculture and services continuing to perform well, India’s slowdown can be attributed almost entirely to weakening industrial growth. The index of industrial production for 9 months, grew by only 3.6 per cent compared to 8.2 per cent last fiscal year. During the year, the government found itself in the heart of managing two conflicting demands viz. managing growth and price stability. Inflation as measured by the wholesale price index was high during most part of the current fiscal year. Monetary policy was tightened by the Reserve Bank of India during the year to control inflation and curb inflationary expectations.
COMPANY PERFORMANCE:
Revenues
Against the above economic background, the Company’s worldwide revenues registered a strong growth of 24 per cent. While revenue from India increased by 19 per cent, that from rest of the world increased by 29 per cent.
The major business segments registered growth rates in excess of 20 per cent contributing additional revenue of around Rs. 4 Billion to the overall revenue pie. The increase in sales resulted from a combination of higher volume growth and improved price realisation.
The Indian operations got off to a good start registering a growth of 26 per cent during the first half of the year. As the year progressed, the growth momentum slowed down due to the macro economic developments in advanced economies, which restricted the overall growth for the year to 22 per cent.
The Abrasives and Ceramics business registered a strong growth of 20 per cent and 30 per cent respectively. The performance of the Electrominerals business was sedate consequent to the lower sales of Brown Fused Alumina.
Manufacturing
Manufacturing teams played a key role, helping the Company in the growth momentum through effective production planning and order execution. Capacity additions, through line balancing and establishment of additional lines, came in handy to cater to the increased demand from customers. Several plants operated at peak capacities.
Cost of key inputs witnessed a steep increase resulting in increased cost pressures for the Indian, Russian and South African operations. Escalation in cost of fuel impacted profit margins in certain locations. Internal efficiency improvements were undertaken to offset the cost push.
The operations of the manufacturing locations in Tamil Nadu, India, came under pressure due to the precarious power scenario in the state and the regulatory constraints imposed on use of captive power sources.
Earnings
Aided by the strong growth in revenues, Earnings from operations before exceptional items, interest, tax, depreciation and amortization (EBITDA) on a consolidated basis, was Rs. 3895 million witnessing an increase of 36 per cent. Depreciation was higher by Rs. 65 million as a result of the continuing investments being made in
various projects. Finance costs were lower by 8 per cent, despite tightening of the money markets, as a result of the healthy cash flows from operations.
Consolidated profit before tax was Rs. 3227 million recording an increase of 25 per cent. Profit after tax, minority
interest and share of profit from associate was Rs. 2193 million recording a growth of 28 per cent.
On a standalone basis, profit before exceptional items and tax was Rs. 1744 million, recording a growth of 25 per
cent. However after reckoning the exceptional items, the profit before tax for the year showed an increase of only
15 per cent since the exceptional items for the year of Rs. 150 million was lower than the sum of Rs. 245 million for the previous year.
During the year, the Company progressed further on its strategy of divesting its non-core assets, by disposing its equity holding in Laser words Private Limited. The Company also made further progress in the exercise of simplifying its holding structure in respect of its international operations, by transferring its investment in its Chinese subsidiary viz. CUMI Abrasives and Ceramics Company Limited, to CUMI International Limited, Cyprus. Consequently the Chinese company is now a wholly owned subsidiary of CUMI International Limited, Cyprus. These resulted in a net amount of Rs. 139 million as exceptional item of profit.
Profit after tax increased by 18 per cent to Rs. 1467 million.
PERFORMANCE OF
BUSINESS SEGMENTS:
The business profile, market developments, current year performance and outlook for various business segments are elaborated in the following sections.
ABRASIVES
Share of Abrasives
segment in the total revenue
Business Profile:
As a consolidated entity, this business comprises of the following major product groups viz. bonded abrasives, coated abrasives (including nonwovens), super abrasives (through a joint venture) and power tools. The operations are carried out through thirteen manufacturing facilities located in India, Russia, China and Thailand. The marketing entities located in North America, Middle East, China and Thailand support this business in getting an extended customer reach. Abrasives are used in a wide spectrum of industries, the key among them being automobile, engineering, fabrication, wood working, home maintenance, construction and infrastructure.
The Company caters to customers located in over fifty countries through its network of manufacturing facilities and marketing establishments. It enjoys a leading position in India and Russia.
Industry scenario
The global industry continues to be led by few players who have a complete portfolio of abrasive products. There are also a large number of players specializing in specific categories of abrasives.
The Indian abrasives industry continues to be largely catered by two leading players. There are a number of players specializing in select products. The market is also catered to by imports, particularly from China. On a consolidated basis, the Company has a leadership position in the Indian markets. Due to the soft market conditions in many advanced economies, India is becoming the focus market for major global players resulting in increased competition.
In the domestic Russian market there are three major players. The Company is the market leader in vitrified bonded abrasives. Imports service a sizeable portion of the market.
Sales Overview
The Abrasives business had a good year clocking a growth of 20 per cent in revenues, both on a consolidated and standalone basis. Revenues for the year were Rs. 8304.000 million on a consolidated basis and Rs. 6092.000 million on a standalone basis. This strong performance, in a mature business, was made possible by the supportive business conditions in India and Russia, (where the Company has a significant presence) stabilization of the Chinese operations and also strong growth in sales to other parts of the world.
The bonded abrasives group recorded a smart growth in sales driven by strong off-take from the channel segment and also from the custom built segment. Coated abrasives also registered good growth in all product categories. Market response for the non woven products, which are now being manufactured in-house, has been encouraging, with products gaining increasing patronage.
In the custom-built product segment, growth was achieved through skillful retention of key customer accounts and also establishing several new relationships. A number of new products were developed to address the niche requirements of several customers which helped to foster customer intimacy.
Sales of super abrasive and other products by Wendt India Limited (the Company’s joint venture) grew by 21 per cent. During the year, sale of power tools gained further momentum. The Company’s products have received increased patronage across India. The product basket has been widened with addition of several new products. Supply chain improvements helped to improve product availability. In order to strengthen its position in this business and widen its product offering, the Company has entered into an arrangement with Metabowerke GmbH,
Germany, which is a premium powertool player. Effective implementation of price increases and continuous review of product for maintaining a balanced portfolio helped the business to protect operating margins against spiraling input costs.
In standard products, focused steps were taken to increase visibility in the market. Customer interest was fostered through number of innovative programmes. With a view to strengthening the bonding with the distribution channel, suitable incentive schemes were devised and deployed.
Manufacturing
The manufacturing teams in India, Russia and China functioned well to cater to the increased volume requirements of the market. Total Productive Maintenance initiatives were commenced during the year in several plants. Several locations have also been recommended for OHSAS (Occupational Standards for Health and Safety) certification, after successful audits.
Additional capacities were created for manufacture of resinoid and vitrified products which will help the business improve response time in servicing customer orders and also address the requirements arising out of changing customer preferences. Investments were also selectively made for modernization of equipment.
Manufacture of certain coated abrasive products was rationalized across plants to drive efficiencies. The facility for manufacture of non-woven abrasives has fully stabilized.
Aided by the buoyancy in revenues, the abrasives business recorded an operating profit before interest and tax of Rs. 1241.000 million on a consolidated basis and Rs. 1034.000 million on a standalone basis thereby registering a growth of 29 per cent on a consolidated basis and 33 percent growth on a standalone basis.
CERAMICS
Share of Ceramics
segment in the total revenue
Business Profile
As a consolidated entity, the ceramics business has three product lines viz. industrial ceramics, super refractories
and anti corrosives. Industrial ceramics business offers alumina and zirconia products of technical ceramic grades
addressing wear and corrosion protection, electrical insulation, thermal protection and ballistic protection applications. The super refractories product group supplies fired and monolithic super refractories, refractory fibre
and also refractory design and installation services addressing the insulation / thermal resistance requirements of industries. The refractory fibre and refractory design and installation businesses are addressed through Murugappa Morgan Thermal Ceramics Limited and Ciria India Limited. The anticorrosives product group offers acid resistant cements, polymer concrete cells and various other products addressing the anticorrosion requirements of industries.
The key user industries for ceramics business are power generation and transmission, coal washeries, grain handling, sanitary tiles and sanitary ware, ballistic protection, cement, non ferrous metals, iron and steel industries, carbon black, insulators, furnace building, glass, petro-chemical and construction industries.
The operations are carried out through eleven manufacturing facilities located in India and Russia. The subsidiaries in Australia, Canada, Middle East, China and South Africa also support this business in getting an extended customer reach. CUMI Australia also provides installation cum service facilities.
The Company has leadership positions in India and Australia and also a key position in Russia. The Company caters to customers located in over thirty countries.
Industry scenario
There has been no material change in the ceramics industry structure in India, which is catered to by a few major players. CUMI is a market leader in certain market segments. In Australia, CUMI Australia is one of the leading players in the lined equipment and industrial ceramic tiles industry. There are about a dozen players in the industry, most of whom market products imported from China and USA.
The refractory industry in Russia is a highly fragmented market with several players of varied sizes. The Company is a minor player in the industry.
There was no major change in the industry structure during the year.
Sales overview
The ceramics business registered a record growth of nearly 30 per cent in revenues, both on a consolidated and standalone basis. Revenues for the year were Rs.4565.000 million on a consolidated basis and Rs. 3201.000 million on a standalone basis. This was made possible by favourable business conditions in India, revival in the Australian markets, good improvement in the Russian operations and also consistent good off take from customers in other parts of the world.
Off take from key user industries like power, material handling, cement, glass, ceramic and carbon black industries was buoyant.
In industrial ceramics, all key product lines viz. ceramic lined equipment, metallised cylinders and engineered ceramics, performed beyond expectations with products getting consistent patronage from key customers. Customer engagement has been increased through value added services to customers. In Australia, competition from Chinese sources was stiff particularly in project sales of standard tiles.
In refractories, demand for of fired products (driven by project orders) was strong. This helped to offset the modest performance in the monolithic segment. Services to channel partners helped the sales effort with encouraging response. Major thrust was given in the domestic market on expansion of customer base and identifying new opportunities. In the Russian operations, sales of nitride bonded refractories have gained good momentum.
Sales of anti corrosion products also registered good growth.
Manufacturing
The manufacturing facilities of the Ceramics business functioned efficiently and helped the business ride the buoyancy in demand. The manufacturing teams worked assiduously to deliver consistent and reliable products to customers and operated plants to peak capacities.
Additional investments were made to enhance the capacity for industrial ceramic products. State-of-the art hydraulic presses equipped with robots have been commissioned. Line balancing of equipment has been done in certain product lines. OSHAS-certification has been obtained for the ceramics plant in Hosur, India. With a view
to optimize operating costs, the operations of the plant in Aurangabad, India was discontinued and consolidated into the Hosur plant. A line for manufacture of fibre reinforced plastic (FRP) composites has been completed and has stabilized production. This has bolstered the capability of the business to offer a diverse range of FRP products. In Russia, the facility for manufacture of nitride bonded silicon carbide has stabilized fully and capacity utilization has been increased. Manufacture of monolithic refractory products has also been taken up.
The manufacturing teams did well to maintain the pipeline of new products which touched a value of Rs.54.000 million.
The Company has entered into an international tie-up for manufacture of ceramic foam refractory products. The project is being implemented through CUMI Fine Materials Limited (which has since been renamed as Cellaris Refractories India Limited). The pilot plant for this project is being established at the CUMI Special Economic Zone at Edapally in Kerala, India.
Aided by the buoyancy in revenues, the Ceramics business recorded an operating profit before interest and tax of Rs. 899.000 million on a consolidated basis and Rs. 547.000 million on a standalone basis thereby registering a growth of 47 per cent on a consolidated basis and 49 per cent growth on a standalone basis.
ELECTROMINERALS
Share of
Electrominerals segment in the total revenue
Business Profile
As a consolidated entity, the major product groups of this business segment are fused alumina (comprising brown
and white alumina), silicon carbide and fused zirconia. The company also manufactures a range of ‘specialities’ like semifriable, Azure-S, plasma powders, etc., for niche markets. The operations are carried out through six manufacturing facilities located in India, Russia and South Africa. Products are sold to customers located in over 40 countries. Key user industries for this business are abrasives, refractories and steel. The business also has a captive mine and a captive power plant. Industry Scenario
The market structure in the global electrominerals business remained largely unchanged with the Company continuing as one of the leading players in silicon carbide and fused zirconia.
In fused alumina, the company is largely a national player with customers based in India. The Indian market continues to be catered by two players. Apart from the domestic players, imported products have a visible share in the market. There was no major change in the industry structure during the year.
Sales overview
The electrominerals business recorded a growth in revenue of 22 per cent on a consolidated basis and 9 per cent
on a standalone basis. Revenues for the year were Rs.7273.000 million on a consolidated basis and Rs. 2300.000 million on a standalone basis.
This performance was a result of the buoyancy in the international silicon carbide market and a steep increase in
revenues from zirconia operations.
Sales of silicon carbide by the Russian operations grew appreciably. Offtake from the domestic Russian markets was stronger compared to the European markets. Price realization was significantly higher both in the domestic
and international markets for most part of the year. There has been a shift in product mix from crystalline products to metallurgical products based on market needs. Sales of grinding materials were at about last year’s levels.
Growth of the Indian operations at 9 per cent was relatively modest as a result of the slowdown in off take of specialty products from the photovoltaic industry. However sales of conventional products did well. Growth was achieved mainly on account of the domestic demand from refractory customers for silicon carbide and white fused alumina. Market growth was moderate as it was limited to user industries from refractory sector. Raw material supply constraints impacted brown fused alumina operations.
Exports out of India were maintained at about last year’s levels despite the slow down in key end user segments. Steps have been initiated to develop alternative market segments. Specialty fused alumina products have received good acceptance from the European markets and ceramic abrasive grains have evinced keen interest from potential buyers.
Sales of fused zirconia witnessed a 30 per cent growth despite a drop in volumes. Steep increase in raw material prices resulted in prices getting firmer. On account of the economic uncertainty in Europe and stock pile in China, off take from several customers were lower. To counter this, the business expanded its marketing network and
widened its customer base. The initiatives taken last year to make a foray into new geographies started yielding results.
Manufacturing
In Russia, the silicon carbide fusion facilities and the crushing and grading operations worked well to maintain production levels and meet market requirements. Capital investments were done in fusion facilities and for upgrading the processing equipment.
The plants in India were operated, based on the requirements of the market to suit changes in product mix. In the micro grit plant in India, the second module was commissioned. The unit was certified for Integrated Management System by TUV-India. The unit has also successfully completed processes for qualifying its products for supply to the automotive industry for diesel particulate filters. Capability has been developed for manufacture of special grade of silicon carbide powders and other ceramic materials for niche market applications.
In South Africa, manufacture of fused zirconia was moderated in line with market requirements. The tilt furnace project is proceeding well and is expected to be completed by September 2012. Once commissioned, the project will enhance zirconia manufacturing capacity by 100 per cent and widen the Company’s range of zirconia product offerings. This will also help to derisk the Company’s revenue sources, by increasing the number of industry segments serviced.
Manufacturing cost of all products, particularly zirconia, came under pressure with prices of key inputs showing a spiraling trend. In silicon carbide, prices of raw petroleum coke and in zirconia, zircon sand prices witnessed a steep increase, exerting pressure on margins. While in some products, price realizations could be improved to protect profitability, in zirconia, the cost push could not be fully passed on to customers.
The electrominerals business recorded an operating profit before interest and tax of Rs. 1398.000 million on a consolidated basis and Rs. 440.000 million on a standalone basis, thereby registering a growth of 27 per cent on a consolidated basis and that on a standalone basis the profits were maintained at about last year levels.
AWARDS AND ACCOLADES
The year has seen a shower of awards for CUMI and its people.
The Company was ranked amongst the 50 top performers (amongst Indian Companies) by Business World.
Mr. K Srinivasan, Managing Director was chosen as one of the ‘Most Valuable CEOs of India’ by Business World. Mr. V Ramesh currently President Abrasives (and earlier Chief Financial Officer), CUMI has been awarded the ‘Best CFO’ award at the ‘Business Today Yes Bank Awards 2012’under the category Remarkable Leverage Management (Midsize Companies). The Kerala Management Association has also honored Mr. N Ananthaseshan, Senior Vice President Electrominerals as ‘The Manager of the Year’.
The 2010-11 Annual Report has been adjudged as the winner of an award for ‘Excellence in Financial Reporting’ amongst manufacturing companies (Turnover above 500 Crores) by The Institute of Chartered Accountants of India.
‘Managerial Excellence’ award by Madras Management Association for the year 2010-11 was won by Abrasives team under the manufacturing sector. ‘Strong Commitment to Excellence’ given by Confederation of Indian Industry was also taken by the same division during the year.
CUMI, Ranipet division has received an award in First Kaizen competition conducted by National Center for quality and reliability.
The Electrominerals division in India was bestowed the ‘CSR Excellence Award’ for the year 2011-12 from the Kerala Management Association. Award for excellence in indigenisation and 5S were also received by this division.
Performance of
Subsidiaries
Volzhsky Abrasive Works, the Russian subsidiary reported a turnover of RUB 3.5 billion for the year ended December 2011, constituting a growth of 26% over previous year. Electrominerals did well aided by the strong growth in the silicon carbide business. The business benefited from the firm prices in the silicon carbide market. Abrasives business also did well registering a strong growth driven by increased off take from end users who benefited most from the turnaround of the economy. In refractories, growth came mainly from the encouraging performance of the nitride bonded silicon carbide refractories segment.
In South Africa, the operations of Foskor Zirconia continued to progress well on its recovery path. Revenue at ZAR 202 million constituted a growth of 27 per cent over the previous year.
CUMI Australia performed well recording a turnover of AUD 15 million. The growth of 21 per cent was made possible by the improvement in general market conditions and also strong marketing efforts
Sterling Abrasives recorded a 15 per cent growth with a turnover of Rs.482.000 million aided by the strong off take from user industries. The additional capacities built up in recent years helped the Company to cater to the higher requirements of the market.
In China, CUMI Abrasives and Ceramics Co. Limited closed its second full year of operations clocking a turnover of CNY 25 million for the year ended December 2011. The Company achieved EBIDTA breakeven and net positive operating cash generation towards the end of the year.
At CUMI Canada, revenues for the year were CAD 3.5 million, an increase of 11 per cent. Sale of industrial ceramics products helped the Company to post an improved performance. The sluggishness in the hardwood floor market continues as an area of concern. At CUMI America, revenues for the year were lower at USD 1.3 million. Sales of bonded abrasives grew moderately over the previous year. The Company has taken preliminary steps for making an entry into the industrial ceramics market. CUMI Middle East recorded a decline in revenues from USD 1.8 million last year to USD 1.4 million in 2011-12 due to subdued market conditions.
Cellaris Refractories India Limited commenced establishment of the project in Kerala, India. A sum of Rs.69.000 million has been spent on plant construction, which is expected to be completed during the 2nd quarter of 2012-13.
Southern Energy Development Corporation Limited improved power generation from its gas-based power plant and recorded a turnover of Rs.172.000 million, an increase of 10 per cent. Net Access India Limited, which provides IT facilities management and managed services, increased revenues by 31 per cent and achieved a turnover of Rs. 161.000 million. Addition of new customers and development of new applications in facilities management and mobile technology helped to enhance revenues.
CUMI International Limited, Cyprus recorded a total income of USD 5.6 million representing mainly dividend and interest inflow.
Consolidated financial statements (incorporating the financial results of the company, its subsidiaries, joint ventures and associate) have been provided in the Annual Report. A statement containing the key financial highlights of each subsidiary, based on the financial statements prepared by them under applicable local regulations for their respective financial years, is also attached.
Business Outlook
Global growth is projected to drop from about 4 percent in 2011 to about 3˝ percent in 2012 because of weak activity during the second half of 2011 and the first half of 2012. However some re-acceleration of activity is expected during the course of 2012 which is expected to return growth to about 4 percent in 2013. The euro area is expected to still remain sluggish as a result of the sovereign debt crisis and a general loss of confidence, the
effects of bank de-leveraging on the real economy, and the impact of fiscal consolidation in response to market pressures. Because of the problems in Europe, activity will continue to disappoint for the advanced economies as a group, expanding by only about 1˝ percent in 2012. Real GDP growth in the emerging and developing economies is projected to slow from 6Ľ percent in 2011 to 5ľ percent in 2012 helped by easier macroeconomic
policies and strengthening foreign demand. With the increasing integration of the Indian economy with the world, economic activity in India will also be impacted by global developments. As per government estimates the growth rate of real GDP for 2012-13 is expected to be 7.6% (+/- 0.25) per cent.
Given the above background, the Company plans to continue to pursue its growth trajectory with cautious optimism. The threats to growth and profits from the economy and market place will be suitably addressed and counter balanced through diversification of end uses, establishing new markets, opening up new customer relationships, better cost management and operating efficiencies.
UNSECURED LOAN:
(Rs. In Millions)
|
Particulars |
As
on 31.03.2012 |
|
Short-Term
Borrowings |
|
|
Other loans |
97.500 |
|
Total |
97.500 |
|
Particulars |
As
on 31.03.2011 |
|
Unsecured Loans |
|
|
|
|
|
Medium term/ short term loans from banks @ |
88.840 |
|
Total |
88.840 |
CONTINGENT
LIABILITIES:
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
a. No provision is considered
necessary for disputed income tax, sales tax, service tax, excise duty and
customs duty demands which are under various stages of appeal proceedings as
given below : |
|
|
|
i. Income Tax Act, 1961 |
119.020 |
108.960 |
|
ii. Central Sales Tax Act,1956 & Local Sales Tax laws of various states |
12.990 |
29.740 |
|
iii. Central Excise Act,1944 |
4.390 |
4.910 |
|
iv. Service Tax, 1994 |
2.860 |
2.860 |
|
v. Customs Act, 1962 |
1.660 |
1.660 |
|
b. Outstanding letters
of comfort / guarantee given on behalf of subsidiaries |
2046.610 |
1549.800 |
|
c. Outstanding
letters of credit |
175.280 |
111.530 |
|
d. Outstanding
bills discounted |
2.150 |
2.450 |
|
e. Claims against
the Company not acknowledged as debts : |
|
|
|
i. Urban Land Tax |
3.500 |
3.200 |
|
ii. Stamp duty |
1.900 |
1.900 |
|
iii. Electricity charges |
12.600 |
12.600 |
|
iv. Claim filed by ship liner towards damages |
14.000 |
14.000 |
|
v. Claim filed before Consumer Dispute Redressal Forum |
1.000 |
1.000 |
|
vi. Mining Royalty |
42.800 |
- |
|
|
75.800 |
32.700 |
PRESS RELEASE:
PRODORITE BECOMES
CARBORUNDUM ARM:
M. Ramesh
CHENNAI, Nov. 26
PRODORITE Anti Corrosives Limited (PACL), a subsidiary of Coromandel Engineering Company Limited of the Murugappa group, has been detached from the parent company and made a subsidiary of Carborundum Universal Ltd (CUMI), another company of the same group.
The transfer of the subsidiary takes effect from November 24.
Prodorite Anti Corrosives Ltd, a leader in anti-corrosion engineering, is engaged in the business of manufacturing anti-corrosive materials such as acid and alkali resistant cement, membranes, speciality coatings and floor coatings.
Originally set up as a separate company, Prodorite was later merged into Coromandel Engineering, and for some years it was a division of Coromandel Engineering.
However, it was once again spun off into a subsidiary, which is now being hooked up with Carborundum Universal.
Asked about the move, Mr M.A. Alagappan, Chief Operating Officer of the Murugappa group, told Business Line , that the group felt that Prodorite's business could be better developed if it was a subsidiary of Carborundum Universal.
Apart from the fact that there was ``some technical synergy'' between Carborundum Universal and Prodorite -- both being ``materials companies'' -- Carborundum Universal also had the financial capability to develop Prodorite, Mr Alagappan said.
Now, completely divested of Prodorite's business, the question is, what happens to Coromandel Engineering. The company, which had built several important buildings in Chennai, is no longer a major player in the construction industry.
Notes Mr S. Muthiah, a chronicler, in his recently-published biography of the Murugappa group's, Mr A.M.M. Arunachalam: ``The company (Coromandel Engineering) depends on Coromandel Prodorite and its traditional building division which is content to build and develop only for the group and a few old clients''.
Coromandel Engineering's granite division is up for sale and its arrangement with Butler's of the US, for constructing industrial buildings with pre-fabricated materials, is not any longer competitive.
FIXED ASSETS:
- Land
- Building
- Plant and machinery
- 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.54.16 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
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 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.