MIRA INFORM REPORT
|
Report Date : |
13.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
FINOLEX INDUSTRIES LIMITED |
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Registered
Office : |
Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506,
Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
28.03.1981 |
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Com. Reg. No.: |
024153 |
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Capital Investment
/ Paid-up Capital : |
Rs.1240.868 Millions |
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CIN No.: [Company Identification
No.] |
L40108PN1981PLC024153 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
KLPF00119A |
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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
: |
Manufacturers and Importer of PVC Pipes and fittings. |
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No. of Employees
: |
1063 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 29000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having a good track record. Overall financial position of the company appears to be strong and
healthy. Trade relations reported to be fair. Business is active. Payment terms
are reported to be regular and as per commitment. The company can be considered normal for business dealing at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term Rating : A+ |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
05 July 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term Rating : A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk |
|
Date |
05 July 2013 |
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.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. S S Bhandari |
|
Designation : |
Accounts Department |
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Contact No.: |
91-2027408200 |
|
Date : |
11.11.2013 |
LOCATIONS
|
Registered Office/ Factory1 : |
Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506,
Maharashtra, India |
|
Tel. No.: |
91-2114-237251 |
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Fax No.: |
91-2114-237252 |
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E-Mail : |
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Website : |
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Location: |
Owned |
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Factory2 : |
Pawas Road, Pawas, Ratnagiri 415612, Maharashtra, India |
|
Tel. No.: |
91-2352-238027 / 28 / 29 / 30 / 31 |
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Fax No.: |
91-2352-238033 / 238045 |
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E-Mail : |
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Factory3 : |
D-1/10, MIDC, Chinchwad, Pune-411019, Maharashtra, India. |
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Tel. No.: |
91-20-27443706 |
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Fax No.: |
Not Available |
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Branch office: |
Located at
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DIRECTORS
As on : 31.03.2013
|
Name : |
Mr. Pralhad P. Chhabria |
|
Designation : |
Non-executive Chairman (Upto 11th August, 2012) |
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Name : |
Mr. Kishan P. Chhabria |
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Designation : |
Executive Vice Chairman (Upto 11th August, 2012) |
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Name : |
Mr. Prakash P. Chhabria |
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Designation : |
Executive Chairman (effective 11th August, 2012) |
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Name : |
Mr. Sanjay K. Asher |
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Designation : |
Independent Director |
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Name : |
Mr. Kanaiyalal N. Atmaramani |
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Designation : |
Independent Director |
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Name : |
Mr. Dara N. Damania |
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Designation : |
Independent Director |
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Name : |
Mr. Saurabh S. Dhanorkar |
|
Designation : |
Managing Director (Effective 11th August, 2012) |
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|
Name : |
Mr. Shrikrishna N. Inamdar |
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Designation : |
Independent Director |
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Name : |
Mr. Prabhakar D. Karandikar |
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Designation : |
Independent Director |
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Name : |
Mr. Sanjay S. Math |
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Designation : |
Director (Operations) |
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Name : |
Dr. Sunil U. Pathak |
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Designation : |
Independent Director |
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Name : |
Mr. Panyam Subramaniam |
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Designation : |
Assistant Managing Director and Chief Financial Officer |
KEY EXECUTIVES
|
Name : |
Mr. Anil Atre |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. S S Bhandari |
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Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1282149 |
1.03 |
|
|
63725448 |
51.35 |
|
|
65007597 |
52.39 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
65007597 |
52.39 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1073898 |
0.87 |
|
|
35776 |
0.03 |
|
|
950 |
0.00 |
|
|
5792479 |
4.67 |
|
|
6903103 |
5.56 |
|
|
|
|
|
|
6931282 |
5.59 |
|
|
|
|
|
|
27454272 |
22.12 |
|
|
15759838 |
12.70 |
|
|
2039289 |
1.64 |
|
|
650835 |
0.52 |
|
|
792939 |
0.64 |
|
|
1400 |
0.00 |
|
|
161515 |
0.13 |
|
|
432600 |
0.35 |
|
|
52184681 |
42.05 |
|
Total Public shareholding (B) |
59087784 |
47.61 |
|
Total (A)+(B) |
124095381 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
124095381 |
0.00 |
SHAREHOLDING BELONGING TO THE CATEGORY
"PROMOTER AND PROMOTER GROUP"
|
SL
No. |
Name
of the Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
||
|
1 |
Amit Katara |
18,782 |
0.02 |
|
2 |
Amit M Katara |
950 |
0.00 |
|
3 |
Amrita Katara |
22,125 |
0.02 |
|
4 |
Amrita Mukesh Katara |
950 |
0.00 |
|
5 |
Katara Amit Mukesh |
5,400 |
0.00 |
|
6 |
Katara Amrita Mukesh |
3,500 |
0.00 |
|
7 |
Katara Aruna Mukesh |
1,46,720 |
0.12 |
|
8 |
Katara Mukesh Dolumal |
3,500 |
0.00 |
|
9 |
Katara Mukesh Dolumal |
23,030 |
0.02 |
|
10 |
Deepak Kishan Chhabria |
80,921 |
0.07 |
|
11 |
Kavita Sanjay Raheja |
37,002 |
0.03 |
|
12 |
Kavita Sanjay Raheja |
55,877 |
0.05 |
|
13 |
Kishan Parsram Chhabria |
200 |
0.00 |
|
14 |
Kishan Parsram Chhabria |
1,70,342 |
0.14 |
|
15 |
Priya Vijay Chhabria |
60,200 |
0.05 |
|
16 |
Rishi Vijay Chhabria |
1,350 |
0.00 |
|
17 |
Sunita Kishan Chhabria |
1,53,592 |
0.12 |
|
18 |
Vijay Kishan Chhabria |
1,06,150 |
0.09 |
|
19 |
Vijay Kishan Chhabria |
200 |
0.00 |
|
20 |
Vini Deepak Chhabria |
26,400 |
0.02 |
|
21 |
Hansika Hiya Prakash Chhabria |
17,500 |
0.01 |
|
22 |
Gayatri Prakash Chhabria |
17,600 |
0.01 |
|
23 |
Prakash Pralhad Chhabria |
1,56,099 |
0.13 |
|
24 |
Prakash Pralhad Chhabria |
200 |
0.00 |
|
25 |
Pralhad Parsram Chhabria |
1,73,559 |
0.14 |
|
26 |
Orbit Electricals Private Limited |
2,33,18,901 |
18.79 |
|
27 |
Finolex Cables Limited |
3,94,32,597 |
31.78 |
|
28 |
Finolex Cables Limited |
7,60,000 |
0.61 |
|
29 |
Katara Dental Private Limited |
2,13,950 |
0.17 |
|
|
Total |
6,50,07,597 |
52.39 |
SHAREHOLDING BELONGING TO THE CATEGORY
"PUBLIC" AND HOLDING MORE THAN 1% OF THE TOTAL NO. OF SHARES
|
Sl.
No. |
Name
of the Shareholder |
No.
of Shares held |
Shares
as % of Total No. of Shares |
|
|
1 |
Anuj A Sheth |
5031002 |
4.05 |
|
|
2 |
Warburg Value Fund |
4000000 |
3.22 |
|
|
3 |
Hiten Anantrai Sheth |
1500000 |
1.21 |
|
|
4 |
Gagandeep Credit Capital Private Limited |
1389500 |
1.12 |
|
|
|
Total |
11920502 |
9.61 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Importer of PVC Pipes and fittings. |
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Products : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
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No. of Employees : |
1063 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
|
|
Name : |
P. G. Bhagwat Chartered Accountants |
|
Address : |
Pune, Maharashtra, India |
|
|
|
|
Solicitors and Advocates: |
|
|
Name : |
Crawford Bayley and Company |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Related parties:: |
|
|
|
|
|
Enterprises over which key management personnel or their relatives exercise
significant influence: |
|
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs. 1500.000 Millions |
|
|
Unclassified Shares |
|
Rs. 850.000 Millions |
|
|
Total |
|
Rs. 2350.000
Millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
124095381 |
Equity Shares |
Rs.10/- each |
Rs. 1240.954
Millions |
|
|
Less : Amount in Arrears, other than from
Directors |
|
Rs.
0.086 Millions |
|
|
Total |
|
Rs. 1240.868 Millions |
Note:
Reconciliation of the
Shares Outstanding:
|
|
31.03.2013 |
|
|
Equity Shares |
No.
of Shares |
Amount
|
|
At the beginning of the period |
124060235 |
1240.602 |
|
Add: Allotted during the period pursuant
to section 81(1A) of the Companies Act,1956. |
-- |
-- |
|
Outstanding
at the end of the period |
124095381 |
1240.954 |
Terms/ Rights
attached to equity shares:
The Company has
only class of equity shares having a par value of Rs.10 per share. Each holder of
the equity shares 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 the approval of the shareholders in the ensuing Annual General
Meeting. During the year ended March 31, 2013, the amount of per share dividend
recognised as distributed to equity shareholders was Rs 5.50 (March 31, 2012
Rs.3.00). In the event of liquidation of the Company, the holders of equity
shares are entitled to receive remaining assets of the Company after
distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
|
|
31.03.2013 |
|
|
Details of
shareholders holding more than 5% shares in the company: |
No.
of Shares |
%
of Holding |
|
Equity shares of Rs. 10 each fully paid Finolex Cables Limited |
40192597 |
32.39 |
|
Orbit Electricals Private Limited |
23318901 |
18.79 |
|
TOTAL |
63511498 |
51.18 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1240.868 |
1240.868 |
1240.448 |
|
(b) Reserves & Surplus |
5970.759 |
5380.224 |
4962.698 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
7211.627 |
6621.092 |
6203.146 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1397.087 |
1895.607 |
1954.380 |
|
(b) Deferred tax liabilities (Net) |
936.358 |
898.555 |
800.698 |
|
(c) Other long term
liabilities |
4.676 |
3.762 |
5.875 |
|
(d) long-term
provisions |
136.507 |
36.459 |
51.259 |
|
Total Non-current
Liabilities (3) |
2474.628 |
2834.383 |
2812.212 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
5709.220 |
8228.834 |
5391.423 |
|
(b) Trade
payables |
1851.093 |
1297.481 |
2408.611 |
|
(c) Other
current liabilities |
2341.848 |
1407.510 |
1835.442 |
|
(d) Short-term
provisions |
796.745 |
444.161 |
445.705 |
|
Total Current
Liabilities (4) |
10698.906 |
11377.986 |
10081.181 |
|
|
|
|
|
|
TOTAL |
20385.161 |
20833.461 |
19096.539 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
8788.558 |
7829.296 |
7923.543 |
|
(ii)
Intangible Assets |
6.697 |
10.850 |
1.214 |
|
(iii)
Capital work-in-progress |
506.061 |
853.589 |
721.694 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1274.040 |
1220.855 |
1220.855 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
111.532 |
218.746 |
110.093 |
|
(e) Other
Non-current assets |
84.990 |
729.612 |
632.614 |
|
Total Non-Current
Assets |
10771.878 |
10862.948 |
10610.013 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current
investments |
2322.046 |
3711.230 |
859.023 |
|
(b)
Inventories |
4827.785 |
3263.208 |
4013.140 |
|
(c) Trade
receivables |
387.210 |
469.342 |
1234.362 |
|
(d) Cash
and cash equivalents |
90.484 |
290.759 |
268.561 |
|
(e) Short-term
loans and advances |
1985.758 |
2235.974 |
2111.440 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
9613.283 |
9970.513 |
8486.526 |
|
|
|
|
|
|
TOTAL |
20385.161 |
20833.461 |
19096.539 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21448.214 |
20997.752 |
19777.262 |
|
|
|
Other Income |
333.701 |
304.600 |
293.599 |
|
|
|
TOTAL (A) |
21781.915 |
21302.352 |
20070.861 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
14603.496 |
14968.773 |
12704.599 |
|
|
|
Purchases of stock-in-trade |
6.374 |
446.379 |
575.323 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(270.076) |
84.747 |
319.191 |
|
|
|
Employee benefits expense |
720.578 |
564.078 |
505.335 |
|
|
|
Other expenses |
3761.326 |
2766.219 |
3475.968 |
|
|
|
TOTAL (B) |
18821.698 |
18830.196 |
17580.416 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2960.217 |
2472.156 |
2490.445 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
514.489 |
749.607 |
596.628 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2445.728 |
1722.549 |
1893.817 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
544.164 |
755.128 |
744.291 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1901.564 |
967.421 |
1149.526 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
540.195 |
215.908 |
387.816 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1361.369 |
751.513 |
761.710 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
815.605 |
819.254 |
842.944 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
General reserve |
400.000 |
200.000 |
200.000 |
|
|
|
Debenture redemption reserve |
0.000 |
0.000 |
150.000 |
|
|
|
Contingency reserve |
121.500 |
121.500 |
0.000 |
|
|
|
Proposed dividend (including prior year
adjustments) |
682.525 |
373.268 |
372.100 |
|
|
|
Tax on dividend |
110.740 |
60.394 |
63.300 |
|
|
BALANCE CARRIED TO
THE B/S |
983.709 |
815.605 |
819.254 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials * |
13192.146 |
12169.562 |
12449.719 |
|
|
|
Stores, spares and components |
25.672 |
26.879 |
13.266 |
|
|
|
Capital goods |
256.208 |
88.054 |
50.647 |
|
|
TOTAL IMPORTS * inclusive of highseas purchases |
13474.026 |
12284.495 |
12513.632 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.97 |
6.06 |
6.14 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.25
|
3.53 |
3.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.87
|
4.61 |
5.81 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.22
|
5.16 |
6.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.15 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.99
|
1.53 |
1.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90
|
0.88 |
0.84 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
Case Details |
|
Bench:-Bombay |
|
Lodging No.:- |
CPL/400/2010 |
Filing Date:- |
27/10/2010 |
Reg. No.:- |
CP/432/2010 |
Reg. Date:- |
01/12/2010 |
|
Petitioner:- |
DEUTSCHE BANK A G. MUMBAI BRANCH |
Respondent:- |
FINOLEX
INDUSTRIES LIMITED |
|
Petn.Adv.:- |
Juris Corp |
Resp.Adv.:- |
Chitnis and Company |
|
District:- |
MUMBAI |
|
Bench:- |
SINGLE |
||||
|
Status:- |
Pre-Admission |
Category:- |
COMPANY PETITION U/SEC 433,434,439
COMPANIES ACT |
|
Next Date:- |
04/12/2013 |
Stage:- |
COMPANY PETITIONS FOR ADMISSION |
|
Coram:- |
HON'BLE SHRI JUSTICE N.M. JAMDAR |
|
Last Date:- |
13/08/2013 |
Stage:- |
COMPANY APPLICATIONS FOR HEARING |
|
Last Coram:- |
HON'BLE SHRI JUSTICE N.M. JAMDAR |
|
Act :- |
Companies Act & Rules 1956 |
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Sales tax deferral loan Deferred sales tax loan is interest free and payable in 10 yearly
installments of various amounts starting from March 2020. |
197.087 |
197.087 |
|
Total |
197.087 |
197.087 |
FINANCIAL REVIEW
The Company has
achieved an all time high profitability during the year. EBIDTA margins have
shown a jump from about 12% to 14% while net profit before tax for the year has
almost doubled from Rs.970.000 Millions to Rs.1900.000 Millions. The turnover
has only marginally increased from Rs.21000.000 Millions to Rs.21450.000
Millions since the captive consumption of PVC resin i.e. internal transfer from
the PVC division to the PVC pipes division is netted from the turnover.
OUTLOOK FOR THE
COMPANY
PVC PIPES AND
FITTINGS DIVISION:
The Company is
India’s largest manufacturer of PVC pipes and fittings. The Company has
achieved 27% growth in the sale of pipes and fittings during the year. This was
possible because of the very strong affiliation to brand “Finolex” instilled by
the Company in the hearts of lacs of consumers spread across the length and
breadth of India. Finolex pipes and fittings are available in every state of
the country and are sold through a network of dealers, subdealers and
retailers. The name Finolex stands for the highest quality of pipes and
fittings.
The Company is the
only PVC pipe manufacturer with its own PVC resin plant which gives it complete
control on the quality of pipes.
The Company has
always been deeply involved in the rural markets of India. With the rural
economy poised for a substantial growth, the Company is ideally positioned to
reap the benefits.
Government of India
has declared rural water management as its focus area. It has set a target of
bringing 65.000 Millions hectares of land under irrigation by 2020. The Twelfth
Five Year Plan envisages investment in excess of Rs.5000000.000 Millions for
the irrigation sector. Further, an amount of Rs.230000.000 Millions has been
set aside for water management. This will give further boost to the PVC pipes
and fittings demand.
Over the years,
the Company’s sales in the northern region have been growing by leaps and bounds,
so much so that the Company felt the need to establish a new plant to cater to
the ever growing demand from this region. The Company selected Vadodara in
Gujarat as the ideal location to set up a green field PVC pipes plant. The
state-of-the-art plant at Masar in Vadodara has been commissioned during the
year with an initial capacity of 30,000 tons per annum (tpa). The Company plans
to scale this up to 50,000 tpa during 2013-14. During 2012-13, the Company’s
aggregate capacity of PVC pipes and fittings has crossed 200000 tpa. The
Company is already looking at further expansion / debottlenecking of the PVC
pipes and fittings division.
PVC RESIN
DIVISION:
The domestic
demand for PVC resin has grown by almost 12% in the country whereas the
installed capacity has remained stagnant during the year. India is a net
importer of PVC resin and the demand supply gap has crossed one million tpa.
The per capita consumption of PVC resin in India is hardly 2 kg as compared to
10 kg in China and 12 kg in USA. It is expected that the PVC demand in India
will continue to grow for years to come.
The Company
produces Emulsion PVC resin which is a special grade used in various
applications like artificial leather cloth, footwear, flooring, etc. The value
addition on this application is much higher than Suspension PVC resin. The
Company has recently completed an expansion of the Emulsion PVC resin capacity
from 11,000 tpa to 22,000 tpa. There is already a demand supply gap prevalent
in the Indian market for Emulsion PVC. The Company should be able to place the
additional capacity in the market without difficulty.
CAPTIVE POWER
PLANT DIVISION:
The Company has
been consistently working towards achieving higher productivity and better
operating efficiencies. In order to ensure continuous high quality power, the
Company decided to set up a 43 MW power plant at Ratnagiri. The plant is
designed to also take care of the future power requirements of the Company.
With the coal prices coming down from its peak two years ago, the power plant
is generating substantial savings for the Company as compared to the cost of
purchase of power from the grid. The uninterrupted supply of quality power has
also benefited the production of PVC and PVC pipes in Ratnagiri.
GLOBAL SCENARIO
The global demand
of PVC stands at around 37.5 million tpa. The growth rate for 2012-13 has been
around 2%. As against this, the Indian market for PVC resin has grown by almost
12% during 2012-13. The demand supply gap which currently stands at around 1
million tpa is expected to grow over the years. Globally, the application of
PVC in pipes and fittings accounts for almost 43% of the total consumption. In
India, the application of PVC in pipes and fittings is almost 70% of the total
consumption. The Company’s leadership position in this segment offers it a
distinct advantage.
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10382832 |
28/09/2012 |
1,000,000,000.00 |
CENTRAL BANK OF INDIA |
JEWEL OF PIMPRI,
B WING, 1ST FLOOR, KAMLA CROSS |
B60589355 |
|
2 |
10206653 |
06/03/2010 * |
500,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
MAKER TOWERS
'F', 6TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
A82227877 |
|
3 |
10154826 |
25/03/2009 * |
1,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
MAKER TOWERS 'F',
13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
A61668513 |
|
4 |
10106975 |
31/03/2011 * |
345,200,000.00 |
AXIS BANK LIMITED |
2ND FLOOR, AXIS
HOUSE,BOMBAY DYEING MILL COMPOUND, |
B12176756 |
|
5 |
90084424 |
31/03/2011 * |
13,957,500,000.00 |
BANK OF INDIA |
PUNE CORPORATE
BANKING BRANCH 1162/6, SHIVAJI NAGAR, UNIVERSITY ROAD,, PUNE, MAHARASHTRA -
411005, |
B12105359 |
Note: * Date of charge
modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
Guarantees given
by the Company’s bankers on behalf of the Company towards performance and other
matters. |
85.412 |
142.144 |
|
Claims against the Company not acknowledged as debt: |
|
|
|
Liabilities in
respect of income tax matters for which the Company has succeeded in appeal but
Income Tax Department has gone in further appeal and exclusive of the effect
of similar matters in respect of pending assessments. |
17.938 |
17.938 |
|
Liabilities in
respect of income tax matters for which the Company has gone in further appeal
and exclusive of the effect of similar matters in respect of pending
assessments. |
43.623 |
41.222 |
|
Excise/customs/service
tax in respect of which either show cause notice is received or the
Company/Department is in appeal. |
437.944 |
267.487 |
|
Amounts claimed
by banks in respect of derivative transactions which are under dispute not
acknowledged as debt. |
1161.753 |
2225.430 |
|
Estimated amount
of contracts remaining to be executed on capital account and not provided for |
171.631 |
331.709 |
STATEMENT OF STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH
SEPTEMBER, 2013
(Rs. In Millions)
|
Sr. No. |
Particulars |
Quarter ended 30-09-2013 (Unaudited) |
Quarter ended 30-06-2013 (Unaudited) |
|
1 |
Income from
operations |
|
|
|
|
(a) Net
Sales/Income from Operations (Net of excise duty) |
3848.945 |
5551.316 |
|
|
(b) Other
Operating Income |
50.160 |
83.618 |
|
|
Total
income from operations (net) (a) + (b) |
3899.105 |
5634.934 |
|
2 |
Expenses (a) Cost
of materials consumed |
3181.495 |
4106.116 |
|
|
(b)
Purchases of stock-in-trade |
- |
- |
|
|
(c)
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(872.020) |
(276.116) |
|
|
(d)
Employee benefits expense |
174.857 |
167.219 |
|
|
(e)
Depreciation and amortisation expense |
148.172 |
146.449 |
|
|
(f) Power
and Fuel |
197.023 |
252.805 |
|
|
(g) Other
expenditure |
402.622 |
439.090 |
|
|
Total
expenses |
3232.150 |
4835.564 |
|
3 |
Profit / (Loss)
from operations before other income, finance costs and exceptional items (1-2) |
666.956 |
799.370 |
|
4 |
Other
Income |
171.725 |
194.345 |
|
5 |
Profit/
(Loss) from ordinary activities before finance costs and exceptional items(3
+ 4) |
838.681 |
993.715 |
|
6 |
Finance
costs |
121.935 |
137.099 |
|
7 |
Profit/
(Loss) from ordinary activities after finance costs but before exceptional
items(5 - 6) |
716.746 |
856.616 |
|
8 |
Exceptional
items |
(325.623) |
(538.903) |
|
9 |
Profit / (Loss)
from ordinary activities before tax (7 + 8) |
391.123 |
317.713 |
|
10 |
Tax
Expense |
116.945 |
91.245 |
|
11 |
Net
Profit/(Loss) from ordinary activities after tax (9-10) |
274.178 |
226.467 |
|
12 |
Extraordinary
Items (net of tax expense) |
- |
- |
|
13 |
Net Profit
/ (Loss) for the period (11 -12) |
274.178 |
2,26.467 |
|
14 |
Share of
profit / (loss) of associates |
- |
- |
|
15 |
Minority
interest |
- |
- |
|
16 |
Net
Profit/ (Loss) after taxes, minority interest and share of profit of
associates (13 +14 +15) |
274.178 |
226.467 |
|
17 |
Paid-up
equity share capital (Nominal value Rs. 10 per share) |
1240.954 |
1240.954 |
|
18 |
Paid-up
Debt capital |
|
|
|
19 |
Reserve
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
|
|
|
20 |
Debenture
Redemption Reserve |
|
|
|
20 |
Earnings
per share (before extraordinary items) (of Rs. 10/-each)(not
annualised): (a) Basic. (b) Diluted ' |
2.21 |
1.82 |
|
20 |
Earnings
per share (after extra ordinary items) (of Rs. 10/-each)(notannualised): (a) Basic . (b) Diluted ' |
2.21 |
1.82 |
|
21 |
Debt
Equity Ratio |
|
|
|
22 |
Debt
Service Coverage Ratio |
|
|
|
23 |
Interest
Service Coverage Ratio |
|
|
|
Sr. No. |
Particulars |
Quarter ended 30-09-2013 (Unaudited) |
Quarter
ended 30-06-2013 (Unaudited) |
|
A 1 |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
Public
shareholding -Number of shares |
59,087,784 |
59,087,784 |
|
|
-
Percentage of shareholding |
47.61 |
47.61 |
|
2 |
Promoters
and Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered - Number of shares |
NIL |
NIL |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
NIL |
NIL |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
NIL |
NIL |
|
|
b)
Non-encumbered |
|
|
|
|
- Number of shares - Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
65,007,597 100.00 |
65,007,597 100.00 |
|
|
- Percentage
of shares (as a % of the total share capital of the company) |
52.39 |
52.39 |
|
Particulars |
Quarter
ended 30 September 2013 |
|
B INVESTOR COMPLAINTS |
|
|
Pending at
the beginning of the quarter |
0 |
|
Received
during the quarter |
3 |
|
Disposed
off during the quarter |
3 |
|
Remaining
unresolved at the end of the quarter |
0 |
SEGMENT WISE REVENUE,
RESULT AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
Quarter
ended 30-09-2013
(Unaudited) |
Quarter
ended 30-06-2013 (Unaudited) |
|
SEGMENT
REVENUE Net Sale
/Income from each segment: |
|
|
|
PVC |
3244.959 |
3627.353 |
|
PVC Pipes
& Fittings |
2778.663 |
4349.181 |
|
Power |
406.096 |
450.347 |
|
Total |
6429.718 |
8426.881 |
|
Less:
Intersegment Revenue |
2530.613 |
2791.947 |
|
Net Sales
/ Income from Operations |
3899.105 |
5634.934 |
|
SEGMENT
RESULTS |
|
|
|
Profit /
(Loss) before tax and interest from each segment: |
|
|
|
PVC |
378.745 |
423.767 |
|
PVC Pipes
& Fittings |
236.200 |
355.294 |
|
Power |
103.148 |
97.466 |
|
Total |
718.093 |
876.527 |
|
Less: |
|
|
|
Interest |
121.935 |
137.099 |
|
Other un
allocable expenditure |
377.818 |
614.895 |
|
Add: |
|
|
|
Other un
allocable income |
172.783 |
193.180 |
|
Total
Profit / (Loss) Before Tax |
391.123 |
317.713 |
|
CAPITAL
EMPLOYED |
|
|
|
Segment
Assets-Segment Liabilities: |
|
|
|
PVC |
7400.419 |
8202.727 |
|
PVC Pipes
& Fittings |
3838.833 |
3429.152 |
|
Power |
2742.951 |
3463.510 |
|
Other than
segments |
2734.469 |
3824.435 |
|
Total |
16716.673 |
18919.824 |
BALANCE SHEET AS AT 30TH
SEPTEMBER, 2013
(Rs.
In Millions)
|
Sr.No. |
Particulars |
As
at 30th
September 2013 |
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders'
Funds |
|
|
|
(a) Share
Capital |
1240.868 |
|
|
(b)
Reserves & Surplus |
6471.410 |
|
|
Sub-total
- Shareholders' funds |
7712.278 |
|
2 |
Non-Current
Liabilities |
|
|
|
(a)
Long-term borrowings |
1197.087 |
|
|
(b)
Deferred tax liabilities (net) |
957.254 |
|
|
(c) Other
long-term liabilities |
4.561 |
|
|
(d)
Long-term provisions |
75.415 |
|
|
Sub-total
- Non-current liabilities |
2234.316 |
|
3 |
Current
liabilities |
|
|
|
(a)
Short-term borrowings |
5405.369 |
|
|
(b) Trade
payables |
301.703 |
|
|
(c) Other
current liabilities |
3682.149 |
|
|
(d)
Short-term provisions |
5.480 |
|
|
Sub-total
- Current liabilities |
9394.701 |
|
|
TOTAL -
EQUITY AND LIABILITIES |
19341.296 |
|
B |
ASSETS |
|
|
1 |
Non-current
assets |
|
|
|
(a) Fixed
assets |
9309.876 |
|
|
(b)
Non-current investments |
1274.040 |
|
|
(c)
Deferred tax assets (net) |
- |
|
|
(d)
Long-term loans and advances |
74.795 |
|
|
(e) Other
non-current assets |
137.650 |
|
|
Sub-total
- Non-current assets |
10796.360 |
|
2 |
Current
assets |
|
|
|
(a)
Current investments |
- |
|
|
(b)
Inventories |
5109.918 |
|
|
(c) Trade receivables |
83.700 |
|
|
(d) Cash
and cash equivalents |
106.783 |
|
|
(e)
Short-term loans and advances |
3244.535 |
|
|
Sub-total
- Current assets |
8544.936 |
|
|
TOTAL-ASSETS |
19341.296 |
Note:
Exceptional items
represent foreign exchange (loss) /gain and settlement of claim against
derivative as below:
(Rs.
In Millions)
|
Sr. No. |
Particulars |
Quarter
ended 30-09-2013 |
Quarter
ended 30-06-2013 |
|
a |
Realised |
(306.355) |
53.565 |
|
b |
Unrealised |
(19.268) |
(592.468) |
|
c |
Total |
(325.623) |
(538.903) |
Previous
periods 'figures have been regrouped wherever necessary to conform to the
current period's classification.
The
"Limited Review" of the financial results of the Company for the half
year ended 30th September, 2013 has been completed by the statutory auditors.
The above
results have been reviewed by audit committee and approved bythe Board at its
meeting held on 30th October, 2013.
FIXED ASSETS
Tangibles Assets
- Free hold land
- Lease hold land
- Buildings
- Plant and machinery
- Office equipment’s
- Furniture & fixtures
- Vehicles
- Aircraft
Intangibles Assets
- Computer software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or 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.63.59 |
|
|
1 |
Rs.101.56 |
|
Euro |
1 |
Rs.85.15 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
52 |
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.