MIRA INFORM REPORT
|
Report Date : |
25.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
SINTEX INDUSTRIES LIMITED (w.e.f.1995) |
|
|
|
|
Formerly Known
As : |
THE BHARAT VIJAY MILLS LIMITED |
|
|
|
|
Registered Office
: |
Kalol - 382721, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
01.06.1931 |
|
|
|
|
Com. Reg. No.: |
04-000454 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 271.100 Millions
|
|
|
|
|
CIN No.: [Company Identification
No.] |
L17110GJ1931PLC000454 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMS00244G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCS0858E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer and Seller of Plastic and Textiles Related Products. |
|
|
|
|
No. of Employees
: |
3587 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 93350000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having an
excellent track record. Financial position of the company appears to be
sound. Fundamentals are strong and healthy. Trade relations are reported as
trustworthy. Business is active. Payments are reported to be regular and as
per commitments. The company can be considered excellent 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank facilities : AA+ |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
25.09.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term Bank facilities : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
25.09.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered / Corporate Office : |
Kalol - 382721, Gujarat, India |
|
Tel. No.: |
91-2764-223731 (6 Lines)/ 220246/ 220793/ 253000/ 253500/ 224301/ 2/
3/ 4/ 5 |
|
Fax No.: |
91-2764-220436/ 222868/ 253100/ 253800/ 220385 |
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E-Mail : |
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Website : |
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Manufacturing facility : |
·
Kalol Near. Seven Garnala, Kalol - 382721, (N.G.), District - Gandhinagar,
Gujarat State, India. ·
61-C, Bommasandra Industrial Estate, Hosur Road, Bommasandra - 562158,
Karnataka State, India. ·
Kolkata Plot No. 40/41, ·
Plot No. 34, 39 / 40, Survey No. 168, Dabhel Industrial Company
Society Limited. Dabhel, Daman ( ·
Baddi ·
Plot No : B/124 Batti-Bori, MIDC, Batti-Bori, District Nagpur,
Maharashtra, India. ·
131, Sandhiyur Attayampatti, Behind S.V.T. School, Via-Mallur, Trichy
Main Road, Salem - 636203, Tamilnadu, India ·
Bhachau Plot No. 1211/1, 1223/24/31, |
|
|
|
|
Branch Office : |
Located at: ·
Ahmedabad ·
·
Kolkata ·
·
Secunderabad ·
·
Chennai ·
·
Pune ·
·
·
Jaipur ·
Mumbai ·
|
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Dinesh B. Patel |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Arun P. Patel |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Ramnikbhai Ambani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashwin Lalbhai Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rooshikumar Pandya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Indira J Parikh |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Rajesh B. Parikh |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Lavkumar Kantilal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rahul A. Patel |
|
Designation : |
Managing Director [Group] |
|
|
|
|
Name : |
Mr. Amit D. Patel |
|
Designation : |
Managing Director [Group] |
|
|
|
|
Name : |
Mr. S.B. Dangayach |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. L.M. Rathod |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Sunilkumar Kanojia |
|
Designation : |
Group President (Corporate) |
|
|
|
|
Name : |
Mr. Sanjib Roy |
|
Designation : |
Chief Executive Officer (Plastic Division) |
|
|
|
|
Name : |
D.N. Panda |
|
Designation : |
President (Plastic Div.) |
|
|
|
|
Name : |
Mr. Rajan Gulabani |
|
Designation : |
Resident Director |
|
|
|
|
Name : |
Mr. S.M. Anerao |
|
Designation : |
Senior Vice President – (Plastic Div.) |
|
|
|
|
Name : |
Mr. D. G. Mistry |
|
Designation : |
Vice President – Tech. (Plastic Division) |
|
|
|
|
Name : |
Manish Srivastava |
|
Designation : |
Vice President – (Plastic Div.) |
|
|
|
|
Name : |
Suddhobroto Ghosh |
|
Designation : |
Vice President- Prefab & Project
(Plastic Div.) |
|
|
|
|
Name : |
Mr. Shashidhar B.C |
|
Designation : |
President - Marketing. (Textile Division) |
|
|
|
|
Name : |
Mr. Ashoke Maitra |
|
Designation : |
President Opr. (Textile Division) |
|
|
|
|
Name : |
Mr. R.A. Sharma |
|
Designation : |
President - Proc. (Textile Division) |
|
|
|
|
Name : |
Mr. Siddhartha Jha |
|
Designation : |
Vice President – Tech. (Textile Division) |
|
|
|
|
Name : |
Mr. Rajiv Naidu |
|
Designation : |
Head – IR and PR |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2869680 |
0.92 |
|
|
110339085 |
35.24 |
|
|
113208765 |
36.16 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
113208765 |
36.16 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18741222 |
5.99 |
|
|
18986104 |
6.06 |
|
|
71844743 |
22.95 |
|
|
109572069 |
34.99 |
|
|
|
|
|
|
30182601 |
9.64 |
|
|
|
|
|
|
48768866 |
15.58 |
|
|
2998718 |
0.96 |
|
|
500 |
0.00 |
|
|
8378461 |
2.68 |
|
|
3086533 |
0.99 |
|
|
3829698 |
1.22 |
|
|
1462230 |
0.47 |
|
|
90329146 |
28.85 |
|
Total Public shareholding (B) |
199901215 |
63.84 |
|
Total (A)+(B) |
313109980 |
100.00 |
|
© 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) |
313109980 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Plastic and Textiles Related Products. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production (Qty.) |
|
Plastic Unit |
|
|
|
|
|
Thermoplatic Powder Moulding |
Kgs in cr. |
NA |
4.99 |
-- |
|
Extruded Thermo-Plastic Sections |
Kgs in cr. |
NA |
3.88 |
1.01 |
|
Prefabricated Structures / BT Shelters (Qty. in Actual Nos.) |
Kgs in cr. |
NA |
60000.00 |
55485 |
|
SMC / Pultrusion and Articles made thereof, Thermoforming and Blow
Moulding / Injection Moulding |
Kgs in cr. |
NA |
1.66 |
0.63 |
|
Cloth Packed |
Mtrs. in cr |
-- |
-- |
2.76 |
|
Rotomoulded Products |
Kgs. |
-- |
-- |
2.74 |
|
|
|
|
|
|
|
Textile Unit |
|
|
|
|
|
Looms |
Nos. |
NA |
377 |
2.76 |
GENERAL INFORMATION
|
No. of Employees : |
3587 (Approximately) |
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Bankers : |
Ø
State Bank of India Ø
Bank of Baroda Ø IDBI Bank
Limited |
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|
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|
Facilities : |
|
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|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Ahmedabad, Gujarat, India |
|
|
|
|
Associate : |
BVM Finance Private Limited |
|
|
|
|
Subsidiaries : |
Ø Zep Infratech
Limited Ø Sintex Holdings
B.V. Ø Bright AutoPlast
Limited Ø Sintex Infra
Projects Limited Ø Sintex Holdings
USA, Inc. Ø Sintex France
SAS (SCI NP IMMO merged with Sintex Francs SAS w.e.f. 22nd March, 2012) Ø Sintex
Industries UK Limited Ø Sintex Austria
B.V. Ø Amarange Inc. Ø Wasaukee
Composites Inc. Ø Wasaukee
Composites Inc.- Owosso, Inc. Ø WCI Wind Turbine
Components, LLC. Ø Nief Plastic SAS Ø NP Hungaria kft Ø NP Nord SAS Ø NP Slovakia SRO Ø NP Savoie SAS Ø NP Tunisia SARL Ø NP Vosges SAS Ø Segaplast SAS Ø Segaplast Maroc
SA Ø Siroco SAS Ø Thermodole SAS Ø AIP SAS Ø NP Rhone (w.e.f.
16th December, 2011) Ø Cuba City Real
Estate LLC Ø Owosso Real
Estate LLC Ø SIMOP SAS Ø SICMO SAS |
CAPITAL STRUCTURE
AFTER 17.09.2012
Authorised Capital : Rs. 650.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 313.110
Millions
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Shares |
Re. 1/- each |
Rs. 500.000 Millions |
|
1500000 |
Preference Shares |
Rs. 100/- each |
Rs. 150.000 Millions |
|
|
Total |
|
Rs. 650.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
273022666 |
Equity Shares |
Re. 1/- each |
Rs. 273.000
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
272990866 |
Equity Shares |
Re. 1/- each |
Rs. 273.000
Millions |
|
|
Less:- Amount Recoverable from ESOP Trust (face value of equity shares
allotted to the Trust) |
|
Rs. 1.900
Millions |
|
|
Total |
|
Rs. 271.100 Millions |
Notes:
i) Reconciliation of
the number of shares and amount outstanding at the beginning and at the end of
the reporting period:
|
Equity shares
with voting rights |
31.03.2012 |
|
At the beginning of the reporting period |
|
|
- Number of shares |
272990866 |
|
- Amount in Millions |
273.000 |
|
At the end of the reporting period |
|
|
- Number of shares |
272990866 |
|
- Amount in Millions |
273.000 |
ii) 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 share is entitled to one vote per share. The Company declares and
pays dividend in Indian rupees. The dividend proposed by the Board of Directors
is subject to approval of Shareholders in the ensuing AGM.
iii) Equity
shareholder holding more than 5% of equity shares along with the number of
equity shares held is as given below:
|
Class of shares
/ Name of shareholder |
31.03.2012 |
|
|
|
No. of Shares held |
% of holding |
|
Equity shares with voting rights |
|
|
|
BVM Finance Private Limited |
78103905 |
28.61% |
iv) As at 31st
March 2012, 36994928 equity shares (As at 31st March 2011 36994928 shares) were
reserved for issuance towards Foreign Currency Convertible Bonds (FCCBs)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2 010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
271.100 |
271.100 |
271.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
23067.600 |
21453.100 |
18550.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
23338.700 |
21724.200 |
18821.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
14154.200 |
13112.200 |
10587.200 |
|
|
2] Unsecured Loans |
12510.200 |
11046.300 |
11156.500 |
|
|
TOTAL BORROWING |
26664.400 |
24158.500 |
21743.700 |
|
|
DEFERRED TAX LIABILITIES |
2294.100 |
1928.300 |
1521.500 |
|
|
|
|
|
|
|
|
TOTAL |
52297.200 |
47811.000 |
42086.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
20100.700 |
17885.500 |
13365.900 |
|
|
Capital work-in-progress |
758.100 |
562.100 |
1367.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
8742.300 |
11236.300 |
8079.400 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1757.700
|
1746.900 |
1687.000
|
|
|
Sundry Debtors |
11460.700
|
8381.200 |
6770.600
|
|
|
Cash & Bank Balances |
6056.300
|
9004.400 |
8150.400
|
|
|
Other Current Assets |
2671.900
|
49.200 |
0.000
|
|
|
Loans & Advances |
7549.200
|
5838.200 |
7892.600
|
|
Total
Current Assets |
29495.800
|
25019.900 |
24500.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2037.700
|
2484.200 |
1845.800
|
|
|
Other Current Liabilities |
1791.700
|
1433.100 |
440.500
|
|
|
Provisions |
2970.300
|
2975.500 |
2940.700
|
|
Total
Current Liabilities |
6799.700
|
6892.800 |
5227.000 |
|
|
Net Current Assets |
22696.100
|
18127.100 |
19273.600
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
52297.200 |
47811.000 |
42086.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (net) |
25625.900 |
26159.700 |
20105.500 |
|
|
|
Other Income |
615.500 |
537.700 |
969.100 |
|
|
|
TOTAL (A) |
26241.400 |
26697.400 |
21074.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
16579.800 |
|
|
|
|
|
Purchases of stock-in-trade |
0.000 |
24.900 |
|
|
|
|
Changes in inventories of finished goods and work-in- progress |
(43.200) |
53.600 |
|
|
|
|
Employee benefits expense |
944.600 |
931.500 |
|
|
|
|
Other expenses |
2973.500 |
2650.200 |
|
|
|
|
Exceptional items |
466.400 |
(62.400) |
|
|
|
|
TOTAL (B) |
20921.100 |
20149.800 |
16306.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5320.300 |
6547.600 |
4768.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1104.900 |
868.200 |
513.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4215.400 |
5679.400 |
4255.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
980.500 |
892.500 |
840.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3234.900 |
4786.900 |
3414.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
937.900 |
1211.300 |
677.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2297.000 |
3575.600 |
2737.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
11570.000 |
8886.000 |
6741.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend-Equity Shares |
177.400 |
177.400 |
163.800 |
|
|
|
Tax on Dividend |
28.800 |
28.400 |
26.700 |
|
|
|
General Reserve |
250.000 |
400.000 |
300.000 |
|
|
|
Debenture Redemption Reserve |
332.700 |
285.800 |
102.200 |
|
|
BALANCE CARRIED
TO THE B/S |
13078.100 |
11570.000 |
8886.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Direct Export |
342.500 |
385.600 |
403.400 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
15.300 |
219.400 |
747.900 |
|
|
|
Components and Spare Parts |
65.900 |
64.000 |
24.100 |
|
|
|
Capital Goods |
159.900 |
103.500 |
30.700 |
|
|
TOTAL IMPORTS |
241.100 |
386.900 |
802.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.48 |
13.19 |
10.10 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
6073.300 |
6892.600 |
7472.400 |
9279.600 |
|
Total Expenditure |
4731.900 |
5558.800 |
6112.700 |
7396.500 |
|
PBIDT (Excl
OI) |
1341.400 |
1333.800 |
1359.700 |
1883.100 |
|
Other Income |
55.600 |
89.600 |
54.200 |
333.500 |
|
Operating
Profit |
1397.000 |
1423.400 |
1413.900 |
2216.600 |
|
Interest |
293.400 |
284.600 |
238.000 |
365.000 |
|
Exceptional
Items |
(288.600) |
(48.600) |
(460.000) |
(116.200) |
|
PBDT |
815.000 |
1090.300 |
715.900 |
1735.300 |
|
Depreciation |
305.000 |
309.300 |
310.400 |
307.100 |
|
Profit
Before Tax |
509.900 |
781.000 |
405.400 |
1428.200 |
|
Tax |
181.100 |
213.300 |
240.200 |
(201.800) |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
328.900 |
567.700 |
165.300 |
1630.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
328.900 |
567.700 |
165.300 |
1630.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2 010 |
|
PAT / Total Income |
(%) |
8.75
|
13.39 |
12.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.62
|
18.30 |
16.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.52
|
11.16 |
9.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.22 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.14
|
1.11 |
1.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.34
|
3.63 |
4.69 |
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
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 |
LITIGATION
DETAILS
|
TAX APPEAL No. 1450 of 2006 To TAX APPEAL
No. 1454 of 2006 |
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Status : PENDING ( Converted from : ST/3240/2006 ) CCIN No : 001092200601450 |
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Last Listing Date: 16/07/2007 Coram · HONOURABLE THE CHIEF JUSTICE Y.R.MEENA · HONOURABLE MR.JUSTICE AKIL KURESHI |
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S.NO. Name of the
Petitioner
Advocate On Record |
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1.1.0 COMMISSIONER OF
INCOME TAX MRS MAUNA M BHATT for Petitioner(s)-1 |
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Name of the Respondant
Advocate On Record |
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SINTEX INDUSTRIES LIMITED
Mr. Manish J Shah for Respondents(s)-1 |
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Presented On : 30/10/2006
Registered On : 30/10/2006 Bench Category : DIVISION BENCH District : AHMEDABAD Case Originated From : THROUGH ADVOCATE Listed : 1 times Stage Name : FOR FINAL HEARING - TAX MATTERS Act : INCOME-TAX ACT, 1961 |
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Office Details |
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UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
Zero Coupon Foreign Currency Convertible Bonds |
0.000 |
10046.300 |
|
Loans repayable on demand |
1000.000 |
1000.000 |
|
Other loans and advances |
11510.200 |
0.000 |
|
Total |
12510.200 |
11046.300 |
CORPORATE INFORMATION
Subject is the
flagship company of Sintex group is a public company domiciled in India and
incorporated in 1931 under the provisions of the Companies Act, 1956. It is
headquartered in Kalol in Gujarat. Its shares are listed on NSE, BSE and ASE in
India. The Company is one of the leading providers of plastics and niche
structured yarn dyed textiles related products in India. Initially the Company
started its operations in textile and diversified in plastic business in mid
70s. The plastic division manufacturers products which includes prefabricated
structures, monolithic constructions, FRP products and water storage tanks.
FINANCIAL
PERFORMANCE:
The Company’s posted a Gross turnover of Rs. 26296.500 Millions in 2011-12 as against Rs. 26742.100 Millions in the previous year 2010-11. This underperformance was primarily due to the degrowth in the monolithic construction business – the Company’s flagship business vertical – a conscious decision by the management to control the ballooning working capital requirement consequent to the decline in cash flow from these projects from government agencies. The key business driver for 2011-12 was the prefabricated structures supported by marginal growth in the custom moulding segment for domestic OEMs. The textiles business also witnessed reasonable growth.
EBIDTA slipped to Rs. 5786.700 Millions against Rs. 6485.200 Millions in the previous year, while Net Profit decelerated to Rs. 2297.000 Millions as against Rs. 3575.600 Millions over the same period.
Cash plough back into the business was Rs. 4681.800 Millions in 2011-12 as against Rs. 5679.300 Millions in 2010-11 – providing an adequate cushion to fund growth initiatives to capitalise on emerging opportunities.
The earning per share stood at Rs. 8.48 (basic) and Rs. 8.48 (diluted) in 2011-12.
BUSINESS REVIEW AND
DIVISIONAL PERFORMANCE:
The Company’s performance was depressed in 2011-12 impacted by a considerable decline in the monolithic construction segment which vershadowed the otherwise healthy growth in other business verticals and sub-segments. A detailed discussion of the Company’s operations is given under ‘Management discussion and analysis report.’
A. PLASTICS DIVISION:
This is the Company’s flagship business which accounts for more than 90% of the Company’s revenue. Over the years, the Company moved up the value chain from manufacturing plastic products for final consumption to leveraging plastic products into creating unique solutions – monolithic construction is a case in point. The plastics division of the Company exhibits a heartening performance despite external challenges which were compelled a slowing down of business operations in key business verticals. It clocked a turnover of Rs. 21618.300 Millions as against Rs. 22789.500 Millions in 2010-11.
Monolithic construction: Fiscal 2011-12 was the toughest for this business division as funds inflow remained a concern due to the government’s preoccupation with other priorities and challenges. The Company consciously strategised to accelerate execution for projects with timely cash flow visibility to optimise working capital requirement. Despite this, the Company witnessed a growth in revenues and order book size through efficient project management skills. The Company displayed intelligent project management skills by executing the single-largest township development project in Delhi – constructing 600 buildings.
Prefabs: The Company’s prefab business generated sizeable revenue in 2011-12, facilitated by increased social spending by the government on healthcare and education. In 2011-12, the Company received sizeable business volumes from Madhya Pradesh to strengthen its healthcare infrastructure across the state. Additionally, the Company successfully marketed prefab solutions as the preferred solution for educational infrastructure in forest and tribal areas, which was well received by decision-making agencies with reasonable business inflow.
Building products: The Company strengthened its presence in the interiors business primarily doors; it introduced unique promotional schemes with reasonable success. Additionally, it bundled doors and windows with monolithic and prefab projects. Also, the Company launched and aggressively marketed plastic kitchen cabinets as a value-for-money product with inherent benefits over the plywood based traditional variants.
Sandwich panel segment, essentially a business-government model (B-G model), the Company marketed these products through its retail network (B-C model) to increase customer awareness and volumes.
Water and liquid storage: Water tanks, the Company’s flagship brand, maintained its growth and expanded its presence across geographies with greater reach in rural and semi-urban markets, maintaining a dominant position. In 2011-12, the Company launched the high-value, triple-walled white water storage tanks pan-India through a unique positioning which transformed a commodity into an aspiration. Additionally, the Company’s underground FRP tanks were approved by IOCL, HPCL and BPCL for installation at all new dispensing stations pan-India – a huge opportunity over the coming years. The Company successfully marketed these products to large malls and commercial complexes for liquid storage purposes.
Sub-ground structures: The Company made significant progress in this business vertical which comprised manhole structures, underground septic tanks covers and packaged water treatment solutions – these products received approvals from a number of state government authorities. The Company successfully marketed a sizeable volume of septic tanks in urban locations leveraging its key USP – underground applications leading to space saving.
The Company created a special marketing team to strengthen the awareness of its decentralised packaged waste water treatment solution from managing liquid waste with considerable success – the Company successfully marketed these products to state agencies and private builders.
Environmental products: The Company is a leader in portable, prefabricated and moulded biogas plants in India, a unique solution perfectly suited for Indian villages bereft of basic utilities primarily electricity. The product received clearances from central and state governments as it provided energy to rural areas – the government’s top priority. During the year, the Company marketed good volumes across Gujarat, Maharashtra, Karnataka, Tripura and Kerala.
Custom moulded products: The Company has two important segments in this division – 1) products which are customised to certain applications and 2) products which are customised to customer requirements. The pallets business registered a robust growth as the Company intelligently segmented the market with unique products to suit various applications. In the SMC-based enclosures targeted to the power distribution space, the Company established its footprint in Kerala, Uttar Pradesh and Uttarakhand in 2011-12. During the year, it also initiated the product approval process in Himachal Pradesh, Punjab, Haryana, Tamil Nadu and West Bengal. In the OEM business, the Company customised a number of products for global and large Indian corporate brands which will generate significant returns over the coming years.
B. TEXTILES DIVISION:
The Company created a niche for itself in the value-added textile segment by supplying high-end yarn dyed structured fabrics for men’s shirting, yarn dyed corduroy, ultima cotton yarn-based corduroy and fabrics for ladies wear.
The Company’s textiles business managed to maintain turnover of Rs. 4678.200 Millions as against Rs. 4397.900 Millions in 2010-11.
The improved performance was on account of increased demand from domestic as well as international markets. The Company’s recent entry into ready-to-stitch fabric received favourable response in the domestic market and it plans to further develop this market. The Company increased its product portfolio in the ladies wear segment, registering robust volumes.
The Company is working towards strengthening its infrastructure by replacing existing machinery with sophisticated equipment to improve product quality and machine productivity to capitalise on growing opportunities. Additionally, the Company’s innovation in product development is also expected to create a demand pull for its products from discerning international brands.
MANAGEMENT DISCUSSION
AND ANALYSIS
THE ECONOMY
Global economy: The global economic environment, which was tenuous at best through the early part of 2011, turned adverse in September 2011. The global recovery was threatened by intensifying strains in the euro area and fragilities elsewhere. The global GDP grew 3.8% growth in 2011, significantly lower than the 5.2% growth in 2010. Capital flows to developing countries in 2011 declined by almost half as compared with the previous year. Europe seemed to have entered recession, while growth in several major developing countries (Brazil, India, and to a lesser extent Russia, South Africa and Turkey) slowed partly in reaction to domestic policy tightening. As a result, and despite relatively strong activity in the US and Japan, global economic growth and world trade slowed sharply.
As per World Economic Outlook, global economy growth is expected to slow down to 3.3% in 2012. This is largely because the euro area economy is expected to enter into a mild recession in 2012 as a result of rising sovereign yields, the effects of bank deleveraging on the real economy and additional fiscal consolidation. Economic growth in emerging and developing economies is expected to average 5.4% - a significant drop from the 6.2% growth registered in 2011. Despite a substantial downward revision, developing Asia is still projected to grow rapidly at 7.5% in 2012.
Indian economy: In 2011-12, India found itself in the heart of these conflicting demands namely balancing growth and price stability without adequate innovative latitude in policy making to sustain economic growth. As a result, Indian economic growth declined to 6.5% in 2011-12 from 8.4% in 2010-11. Despite low growth, India remains one of the fastest-growing global economies, as all major countries including the fast-growing emerging economies witnessed a significant slowdown.
The economic slowdown
was due to two critical factors:
Ø Global factors contributed to the domestic economic slowdown, particularly the euro zone area crisis and near-recessionary conditions prevailing in Europe; sluggish growth in many other industrialised countries, like the US; stagnation in Japan; hardening international crude oil prices, among others.
Ø Domestic factors, primarily the tightening of monetary policy, in particular, raising the repo rate to control inflation and anchor inflationary expectations, slowed down investment and growth, particularly in the industrial sector.
ECONOMIC SNAPSHOT
India’s trade deficit expanded from US$ 130.2 billion in 2010-11 to US$ 174.7 billion in 2011-12 as imports grew faster than exports. This was due to two factors:
Ø Hardening of crude oil prices globally
Ø Significant rupee depreciation in the second half of the fiscal, making it one of the worst performing currencies in Asia
Net Foreign Direct Investments (FDI) in India was positive with inflows at US$ 20.6 billion in 2011-12 against US$ 7.7 billion in 2010-11 – a positive note for India’s industrial sector over the coming years.
Going ahead, the government estimates a GDP growth of 7.6% in 2012-13. While this appears a reasonable estimate, inflation will continue to be a significant challenge for the government especially due to the recent hikes in excise duty, service tax rates in the Union Budget 2012 and the sharp increase in railway freight rates in the first week of March 2012. The rupee will also be stretched as India Inc readies for large FCCB repayments in 2012.
THE PLASTICS SECTOR
OVERVIEW
India’s plastic consumption is expected to grow at a healthy rate on the back of growing substitution, expanding middle income groups and new applications. Plastic products are increasingly finding application in all sectors of the economy, replacing other competing products such as steel and aluminium.
The plastic processing industry is highly fragmented. Presently, 75% are in the small-scale sector but accounts for only about 25% of polymer consumption. The top 100 players account for just 20% of the industry turnover. The industry also consumes recycled plastic, constituting about 30% of total consumption.
Despite being an industry dominated by unorganised players (70% of the industry size), the organised players over the last few years outpaced them in terms of growth through constant innovation and regular introduction of niche products and thereby gradually eating into their share.
The plastic processing sector comprises three broad segments namely injection molding, blow molding and extrusion, catering to the requirements of a wide array of applications like packaging, automobile, consumer durables, healthcare, among others. The continuous industry growth and visible opportunities over the horizon increased the number of processing units from 25,000 in 2010 to 30,000 units in 2011.
OPTIMISM
According to the All India Plastics Manufacturers’ Association (AIPMA), domestic consumption has been growing at 10-12% CAGR over the last decade. Going ahead, the size of the plastic processing industry – which currently stands at ` 850 billion (9 million tonnes), is expected to touch Rs. 1 trillion (12.5 million tonnes) in 2012 and Rs. 1.3 trillion (18.9 million tonnes) by 2015. The exponential growth will see this number go up to 40,000 units, employment will increase to close to 4 million in 2012 and 7 million by 2015 from the current 3.5 million-plus people (direct and indirect). To achieve this target, India will require 42,000 new machines and an investment estimated at US$ 10 billion by 2015.
THE COMPANY AND ITS
PERFORMANCE
Interestingly, a business venture which commenced with textile manufacturing emerged as a household name, pan-India, for its ‘Black’ plastic tanks. With time, Sintex has come a long way. In its sector, the ‘Sintex’ brand is recognised as a pioneer in plastic processing by creating unique solutions which extended the application of plastics exponentially. It is credited with creating new markets for plastic products across it’s 3.5 - decade presence.
PLASTICS BUSINESS
Sintex offers a wide product range that includes liquid/solid storage solutions, home interior products, prefabricated and monolithic structures, custom moulded products (consumer and industrial segments) and infrastructure solutions. It is the only plastic processing company with manufacturing facilities pan-India and in six nations to cater to the growing global demand.
The Company’s plastics business performance was subdued – revenue declined to Rs. 40663.600 Millions in 2011-12 against Rs. 41218.900 Millions in 2010-11, primarily due to the underperformance of the monolithic construction segment, its flagship business vertical, which was partially offset by a healthy performance in the prefab segments. Impacted by inflationary headwinds, the EBIDTA declined to Rs. 6606.500 Millions in 2011-12 against Rs. 7583.500 Millions in 2010-11. The plastics business accounts for 90% of the Company’s consolidated revenues, 86% of EBIDTA and 85% of PAT.
The plastics business is divided into two major segments 1) building products and 2) custom moulding.
Strategic developments, 2011-12
Ø Reduced execution of the monolithic business in line with the delayed payments from government agencies; it optimised the Company’s working capital cycle.
Ø Strengthened the Group’s growth prospects by leveraging synergies between the parent and subsidiaries namely Nief and Sintex
Ø Renamed Durha Construction as Zillion Infraprojects Ltd; Sintex holds 30% equity in the Company with an option to increase it to 51%
Ø Strengthened synergies between Sintex Infra, Zillion Infrastructure and Zep Infratech for infrastructure projects
Ø Commissioned Namakkal plant for the prefabricated business and Nagpur and Namakkal plant for the custom moulding segment.
A. BUILDING PRODUCTS
The building materials division comprises monolithic construction, prefabs, interiors, water tanks, sub-ground structures, septic tanks packaged waste water treatment solution and environmental products.
1) MONOLITHIC CONCRETE CONSTRUCTIONS
The Company’s monolithic construction business, the largest revenue contributor, witnessed very challenging year due to the government’s preoccupation in managing the economic slowdown which significantly decelerated the decision-making process and fund disbursement to projects - in-progress or completed – expanding the working capital cycle. As a result, earnings from this business segment was considerably lower than the previous year.
The Company created a significant presence in Uttar Pradesh by bagging large projects. It also displayed project management skills by executing the single-largest township development project in Delhi by constructing 600 buildings.
To overcome the plan sanction and fund disbursement paralysis, the Company adopted a selective approach by bidding for projects with a visible and timely cash flow. Additionally, the Company strategised to restrict its geographic spread to ensure fast project execution of its order book.
More pertinently, the Company will focus on moving up the value chain through the following initiatives:
Ø Focus on State Housing Board projects that promise faster approvals and have budgetary fund allocation
Ø Cater to middle income group (MIG) and high income group (HIG) segments for high value projects
Ø Focus on verticalisation by strengthening execution capabilities; scout for housing projects with tall structures (G+10 and above) to address land shortage problems
Ø Minimise geographical spread; develop a strong foothold in identified areas where the opportunity is large and cash flow is visible and scale the value chain to undertake large projects.
2) PREFABRICATED STRUCTURES
Prefabs are considered the most cost-effective solution in rural areas, given the higher prices of conventional building materials, logistical problems, labour shortage and technical superiority of this solution. Besides, it is the only solution for hilly areas where conventional construction is largely ruled out due to the terrain.
The Company focuses on the small and medium-sized structures which can be erected for diverse applications and hence provide a wide opportunity canvas. It helps sustain business growth over the medium term.
The Company’s prefab business recorded reasonable revenue growth in 2011-12, facilitated by increased social spending by the government on healthcare and education. In 2011-12, the Company received sizeable business volumes from Madhya Pradesh to create dispensary, primary and community healthcare centres (with labour rooms) across the entire state to improve the health infrastructure for its people. During the year, the Company successfully marketed prefab solutions for unique application in forest and tribal areas namely ‘gurukuls’ (learning centre) and complete university campuses which include the main building, hostels, canteen, toilets and annex structures. It received encouraging business to set up infrastructure in tribal areas in Gujarat (gurukuls) and East India (Universities).
These products received approvals from several states in India and are in advanced stages of approval in Bihar and Bengal.
Going ahead, the Company will strengthen its footprint in East India and expand capacities to cater to growing demand.
Sandwich panels: The sandwich panels are made of colour-coated steel and PUF/concrete/other fillers as packing material to provide insulation. These panels can be used as walls, internal partitions and roofing. Sandwich panels are the most appropriate for warehousing and cold chains for its superior insulation property against other competing products. Sintex uses its sandwich panels for its prefab solutions.
Essentially a business-government model (B-G model), the Company marketed these products through its retail network (B-C model) to increase customer awareness and volumes.
Going ahead, demand for sandwich panels is expected to increase in line with growth in the prefab business. Additionally, the Company plans to expand this product’s retail presence on a pan-India basis.
3) WATER TANKS
Sintex is synonymous with the black water tank in every household and visible on roof tops pan-India. Currently, the Company is the market leader in the water storage tanks industry in India with a more than 60% market share. Over the years, it scaled the value chain by offering value-added tanks to diverse customers (across the social strata) and in multiple sizes.
The various initiatives undertaken by the Company to strengthen its market share include the following:
Ø Created two different product brands (Sintex and Reno), catering to high-end and low-end markets with sub-segments within them catering to all social segments
Ø Segmented the market further by launching Reno Tuf, a superior version of vanilla Reno brand
Ø Launched the high-value, triple-walled white water storage tanks through a unique positioning which converted a commodity into an aspiration
Ø Launched coloured water storage tanks in the Reno segment aimed at the semi-urban and rural markets which increased product penetration
Going ahead, the Company will focus on upgrading water storage solutions of the residents of Tier-II and III towns to high-value products.
4) INTERIORS
The Company marketed these environment-friendly solutions to replace traditional timber, aluminium and steel with numerous advantages - low-cost maintenance, rust-proof, termite-proof, water-proof, light-weight and easy-to-install.
In 2011-12, the Company strengthened the visibility of these products through the following initiatives:
Ø Launched and aggressively marketed plastic kitchen cabinets as a value-for-money product with inherent benefits over the plywoodbased traditional variants
Ø Manufactured D-I-Y (do it theself) products that can be easily installed. The Company also trained and employed carpenters to provide installation services to end-users
Ø Bundled doors and windows (made out of this material) with monolithic and prefab projects
The Company targets to undertake franchise-based models for windows to offer customised solutions to users.
5) SUB-GROUND STRUCTURES
The Company offers water pollution management solutions through its sub-ground structures that include septic tanks and packaged waste water treatment solutions.
Septic tanks: Growing urbanisation and industrialisation multiplied liquid waste generation pan-India. The growing load can scarcely be managed by the hugely out-dated and inadequate pollution management infrastructure. This created a huge demand for storage solution for liquid waste.
To address this issue, Sintex created small and medium septic tanks (NBF series) suitable for storing liquid for about 50-500 people. The Company successfully marketed a sizeable volume of these tanks in urban locations leveraging its key USP – underground application leading to space saving.
Packaged waste water treatment solution: The Company created decentralised packaged waste water treatment solution from managing liquid waste between 1,000-6,000 ltrs. This solution is specifically targeted for gated-community projects and for the ever expanding periphery of urban and Tier-I cities. This system has the following benefits:
Ø Treats liquid waste at the generation point and facilitates water recycling for all purposes except human consumption
Ø Eliminates the electricity cost of pumping liquid waste from the periphery to the centralised waste treatment facility and reduces the load on the system
The Company successfully marketed these products to state agencies and private builders. It created a special marketing team to strengthen the awareness of this novel solution among builders, architects, consultants and government agencies.
6) ENVIRONMENT PRODUCTS
Solid waste management products: The Company manufactures products for solid waste management which are distributed to municipalities across all states. The products include storage bins of various sizes for diverse applications such as push carts, dumpers and containers.
Biogas units: The Company is a leader in portable, prefabricated and moulded biogas plants in India. This unique solution is perfectly suited for Indian villages which are bereft of basic utilities, primarily electricity. This unit is most suited for households owning two cows. The excreted waste of cows is converted into energy and the treated waste can be used as a fertiliser in the farmer’s field. Additionally, this solution makes the neighbourhood more hygenic.
The product received clearances from Central and State Governments as it provided energy to rural areas – the government’s top priority. During the year, the Company marketed good volumes across Gujarat, Maharashtra, Karnataka, Tripura and Kerala.
B. CUSTOM MOULDING
DIVISION
The Company has two important segments in this division – 1) products which are customised to certain applications and 2) products which are customised to customer requirements.
For products which are created for specific applications, the team markets the product’s for that particular application; for the second segment, the team markets its internal capability to match stringent customer requirements.
The product development cycle is long for this product class (especially for customer-specific products); once approved, it provides long-term revenue visibility with superior profitability.
1) INDUSTRIAL CONTAINERS AND FRP TANKS
Industrial containers: The Company manufactures large industrial tanks to store dyes, colours and chemicals in multiple sizes to suit diverse industrial uses. Rising industrialisation and increasing thrust towards a safe working environment accelerated the demand for these products. In 2011-12, the Company introduced large sized rotomoulded tanks (1,000 ltrs and above) especially targeting the chemicals and textiles sector for material storage.
FRP tanks: The Company introduced high-strength, non-corrosive and non-reactant storage tanks especially to store fuel in dispensing stations – as a replacement to RCC and steel tanks which, over time, get corroded resulting in soil contamination. The Company’s products were approved by IOCL, HPCL and BPCL for installation at all new dispensing stations pan-India – a huge opportunity over the coming years. The Company successfully marketed this underground storage solution to large malls and commercial complexes for storage purposes (generator fuel, fire fighting, water, sewerage, among others).
Going ahead, the Company will work to create a pan-India presence of such tanks in infrastructure, commercial and retail sectors.
2) PLASTIC PALLETS
Growing distance between manufacturing and consuming areas increased manufacturing volumes, improved material handling systems, greater reliance on the hub-and-spoke distribution model for a pan-India presence and larger warehousing needs grew the demand for pallets.
The Company manufactures lightweight, cost-effective and customised plastic pallets, catering to various industries like pharmaceuticals, automotive, electrical, engineering, textiles, fisheries, logistics and warehousing, among others.
In 2011-12, the Company segregated its product repository into four segments for focused marketing – its philosophy being the right product, in the most cost-efficient process and for to the right sector:
Ø Pharma pallet: Uniformly moulded pallets, these products have no welds or joints and meet good manufacturing practices
Ø Dynamic pallet: These products are customised for racking and packing
Ø Export pallet: The are specially designed light pallets for exports (6 kg compared with 25 kg traditional ones)
Ø Poly pallet: These pallets are for non-pharma industry applications. This strategy worked reasonably well as pallet off take increased significantly.
3) INSULATED BOXES
The Company has a large repository of insulated boxes which were primarily exported to Australia. Recently, the Company realigned its marketing strategy. It positioned insulated boxes as part of its cold chain management solution – a sector high on government priority. This allows the Company to promote insulated boxes through government programmes namely the National Rural Health Mission.
In 2011-12, the Company undertook a number of initiatives which promises to increase product offtake in the coming years:
Ø Received approvals from the Marine Product Export Development Authority which will help market its boxes to all seafood exporters
Ø Strengthened the visibility of the boxes in Tier-II and III towns and rural areas facing acute electricity shortage to store perishable commodities
Ø Marketed the boxes to government agencies for their vaccination programmes
Ø Initiated marketing of boxes to fishermen in the east coast. The Company also remodeled the boxes to match specific customer requirements. Besides, it widened its export presence to de-risk against dependence on a single geography. Besides, the insulated box business with large corporates namely global beverage and ice-cream manufacturers sustained its pace.
4) CUSTOM MOULDING FOR OEMS
The Company developed a number of products to its custom moulded basket for large and globally-respected corporates. The Company strategised to develop products which facilitated optimum utilisation of existing processing technologies. The Company is building a strong customer base of marquee clients. But labour unrests and strikes at operating unit of some customers impacted growth in this segment, which otherwise would have been robust.
In 2011-12, the Company developed the following products:
Ø Fuel tanks and mud guard to M&M, AMW, Ashok Leyland and Escorts – off-road vehicles
Ø Fuel tanks for generator set manufacturers namely Kirloskar and Cummins
Ø Packaging crates for the engineering sector, primarily some of the Tata Group companies
Ø Enclosures to leading corporates in the electrical sector
Ø Starter panel boxes for pumps and motors for the agricultural industry
Ø Fertiliser and pesticide drums
Ø Components for the cooling tower sector
4) SMC PRODUCTS
The Company manufactures tamper-proof enclosures of different sizes for housing various meters and other equipment. They include meter boxes, distribution boxes, service connectors, pole connection box and polymeric insulation and cross arms for power transmission poles. The products primarily minimise power theft in last-mile power distribution. The products are approved across India under the Electrical Reform Programme initiated by the Central Government. In 2011-12, the Company established its footprint in Kerala, Uttar Pradesh and Uttarakhand. It also initiated the product approval process in Himachal Pradesh, Punjab, Haryana, Tamil Nadu and West Bengal. The Company is creating product awareness among governmental agencies and corporates in the power distribution space which should generate sizeable business volumes in the coming years.
As a first step towards de-risking from an overdependence on the power sector, the Company developed enclosures for water meters to avoid meter tampering.
FUTURE STRATEGY
Ø Move up the value chain in each product segment and command better realisations
Ø Reduce capex investments and improve working capital scenario by undertaking selective projects with visible cash flows
Ø Stabilise capacity expansion and create synergies among group companies to maximise returns
Ø Focus on cost reduction through technological upgradation and efficient production processes
INDIAN TEXTILE SECTOR
The Indian textiles industry is valued at US$ 55 billion with 64% of the demand being domestic. It accounts for 14% of the industrial production, 12% of total exports and 4% of the country’s GDP. The total exports during April-December 2011 grew by 23.87% over the corresponding period to US$ 23.78 billion. The overall textile export in
2011-12 is expected to reach US$ 30 billion
The sector attracted a cumulative FDI inflow of USD 1.03
billion during January 2000 to October 2011.
The domestic consumption for man-made fibre is expected to grow at a CAGR of 5.8% from 2.8 million tonnes in 2011-12 to 3.72 million tones in 2016-17. During the same period, the cotton yarn segment is expected to grow at a CAGR of 10%.
INDIAN COTTON
INDUSTRY
The cotton production in 2011-12 is expected to reach 34.25 million bales with a yield of 481 kg/hectare.
OUTLOOK
The global textiles industry is expected to grow at a CAGR of 6.6% and reach US$ 1 trillion by 2020. The Indian textiles industry is expected to grow 16% during 2012 to reach US$ 115 billion (US$ 55 billion exports and US$ 60 billion domestic). India’s share in the textile and apparel world trade is expected to increase from 4.5% currently to 8% and reach US$ 80 billion by 2020. The export scenario in the country is further expected to improve as China’s dominance as a low-cost exporter is expected to reduce given the rise in wage prices by two to three times.
THE COMPANY AND ITS
PERFORMANCE
Sintex created its niche in the value-added textile segment by supplying high-end yarn dyed structured fabrics for men’s shirting, yarn dyed corduroy, ultima cotton yarn-based corduroy and fabrics for ladies wear.
The Company’s textiles business managed to maintain turnover of Rs. 4678.000 Millions in 2011-12 as compared to Rs. 4358.700 Millions in previous year 2010-11. The stable performance was on account of increased demand from domestic as well as international markets. The textiles business accounted for 10% of the consolidated revenues. The Company’s recent entry into ready-to-stitch fabric received favourable response in the domestic market and it plans to further develop this market.
Developments in the
textile business
Ø Purchased dyed-yarn and even outsourced own yarn for dyeing to meet the additional demand
Ø Studied the trend in cotton prices, engaged in spot buying and matching orders as per cotton prices to reduce price fluctuation
Ø Installed a 66kV distribution system for continuous power flow.
Ø Engaged in power trading to reduce per unit cost of power
Ø Received orders for high-end jacquard napkins from airlines
Ø Penetrated the ladies wear segment in both national and international markets and positioned it as a niche and upmarket product by supplying high-end fabrics
Ø Strengthened dealer network across India to penetrate the retail sector
Ø Developed a niche in fashion clothing through fabric products such as double layer fabric, poly stretched without lycra, excel fibre, cotton linen, 100% linen, cotton viscose, cotton excel, special quality corduroy (with better feel and compact weave) as per European standards.
FUTURE STRATEGY
Ø Develop new fashionable and eco-friendly products
Ø Develop new product concepts in home furnishing with finishes like flame/water-repellent, acrylic coating, anti-microbial, teflon, durawhite, stain resistant and stay black
Ø Develop new products with finishing varieties like work bluetta, double face, crinkle, aush fabric, cotton linen, by slub, shear sucker
Ø Market new products like 100% cotton jacquard napkins, piece dyed jacquard and plain upholstery (blended and 100% polyester), yarn dyed jacquard upholstery, piece dyed fancy jacquard curtains, yarn dyed fancy jacquard curtains (silk imitation) and fabric for automobiles
Ø Develop matching products in the home furnishing segment to enable cross-selling
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. in Millions) |
|
|
a) Amount of claims of certain retrenched employees for re-instatement
with back wages |
Amount not
ascertained |
Amount not
ascertained |
|
b) Corporate guarantees given to Banks/Institutions |
304.800 |
446.200 |
|
c) Performance guarantees given to customers by bankers |
326.300 |
164.100 |
|
d) Disputed demand not acknowledged as debt against which the Company
has preferred appeal |
|
|
|
- Income tax |
129.700 |
129.700 |
|
- Sales Tax |
23.500 |
23.500 |
|
- Service Tax |
22.800 |
22.800 |
|
Estimated amount
(net of advances) of contracts remaining to be executed on capital accounts
and not provided for |
82.800 |
0.000 |
FIXED ASSETS
Ø Land
Ø Buildings
Ø Plant and
Machinery
Ø Furniture and
Fixture
Ø Office equipments
Ø Vehicles
Ø Technical Knowhow
Ø Computer Software
PRESS RELEASE:
DEBT TO COME DOWN BY RS. 3000.000 MILLIONS POST FCCB REDEMPTION: SINTEX
MAR 25, 2013
Sintex has recently redeemed the Foreign
Currency Convertible Bonds (FCCB) worth USD 292 million. This has been an
overhang on the stock for sometime. Sunil Kanojia, Group President, Sintex told
CNBC-TV18 that to redeem this, the company has taken both the equity and quasi
debt routes.
We are working towards mitigating
the risk of being focused on one segment or one geography
Sintex has recently redeemed the Foreign Currency Convertible Bonds (FCCB) worth USD 292 million. This has been an overhang on the stock for sometime. Sunil Kanojia, Group President, Sintex told CNBC-TV18 that to redeem this, the company has taken both the equity and quasi debt routes.
Going forward, he expects the debt to come down by about Rs 3000.000 Millions and the working capital to soften up. "Working capital will come down by 25 days, from 180 days," he said.
Company's financial position was impacting its return ratios adversely. However, now Kanojia wants to assure investors that company’s financial health is sound.
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. 55.61 |
|
|
1 |
Rs. 83.98 |
|
Euro |
1 |
Rs. 71.94 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
72 |
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.