MIRA
INFORM REPORT
|
Report Date : |
26.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
TRANSPEK INDUSTRY LIMITED |
|
|
|
|
Registered
Office : |
6th
Floor, Marble Arch, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
06.10.1965 |
|
|
|
|
Com. Reg. No.: |
04-001343 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.58.720 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L23205GJ1965PLC001343 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDT00491B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT8639B |
|
|
|
|
Legal Form : |
A public limited
liability company. The company's shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business
: |
Manufacturer and Exporter of chemicals servicing the
requirements of customers from a diverse range of industries - Textiles,
Pharmaceuticals, Agrochemicals, advanced Polymers, etc. |
|
|
|
|
No. of Employees
: |
587 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2400000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established company having moderate track record. The company has seen an increase in its sales turnover as well as
recorded a profit during 2013. Financial position of the company appears to
be decent. The ratings also take into consideration the intense competition
pressures in the industry and the vulnerability of profitability due to
fluctuations in the commodity prices well as foreign exchange rates. Further, the subject has extended sizeable financial assistance to its
loss making subsidiary which may have adverse effects on the financial
profile of the subject. However, trade relations are fair. Business is active. Payment terms
are reported as slow but correct. In view of long standing experience of the promoters and established
market position, the subject can be considered for business dealings with
some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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 |
ICRA |
|
Rating |
Long Term Fund Based Limited = BB |
|
Rating Explanation |
Moderate risk of default |
|
Date |
March, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Non-Fund Based Limited = A4 |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
March, 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.
LOCATIONS
|
Registered
Office/ Factory/ Corporate Headquarter : |
6th
Floor, Marble Arch, |
|
Tel. No.: |
91-265-2335444, 2335446, 2335447, 2334141, 2358236, 2335757, 2342262
|
|
Fax No.: |
91-265-2335758 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
At and Post Ekalbara 391 440, Taluka Padra, District Vadodara, |
|
Tel. No.: |
91-2662-222318 / 222309 / 221276-77 / 222287 / 222289 |
|
Fax No.: |
91-2662-223439 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Sales Agents
(Domestic) : |
Located at: ·
·
Ahmedabad
·
Chennai
·
Mumbai
|
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Ashwin C. Shroff |
|
Designation : |
Chairman |
|
Date of
Birth/Age : |
22.01.1945 |
|
Qualification : |
Science Gradate |
|
Date of
Appointment : |
02.05.1980 |
|
|
|
|
Name : |
Mr. A.G. Shroff |
|
Designation : |
Managing Director |
|
Qualification : |
S. S. C. |
|
Date of
Appointment : |
01.12.1981 |
|
Previous
Employment |
Excel Industries Limited |
|
|
|
|
Address : |
Mr. Bimal V. Mehta |
|
Date of Birth/Age : |
Executive Director |
|
|
|
|
Name : |
Mr. D.K. Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.D. Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A.H. Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Bernd Dill |
|
Designation : |
Additional Director |
|
Date of
Birth/Age : |
17.09.1950 |
|
Qualification : |
School and University education with emphasis on mathematics and
natural sciences |
|
Date of
Appointment : |
22.06.2007 |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Ninad D. Gupte |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Nimish U. Patel |
|
Designation : |
Director
|
KEY EXECUTIVES
|
Name : |
Mr. S. K. Solanki |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
988511 |
16.83 |
|
|
1244356 |
21.19 |
|
|
2232867 |
38.03 |
|
|
|
|
|
|
11710 |
0.20 |
|
|
11710 |
0.20 |
|
|
11710 |
0.20 |
|
Total shareholding of Promoter and Promoter Group (A) |
2244577 |
38.22 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2900 |
0.05 |
|
|
2969 |
0.05 |
|
|
319832 |
5.45 |
|
|
300 |
0.01 |
|
|
264253 |
4.50 |
|
|
590254 |
10.05 |
|
|
|
|
|
|
1084710 |
18.47 |
|
|
|
|
|
|
1238905 |
21.10 |
|
|
390516 |
6.65 |
|
|
323078 |
5.50 |
|
|
15842 |
0.27 |
|
|
67121 |
1.14 |
|
|
120 |
0.00 |
|
|
160007 |
2.72 |
|
|
309 |
0.01 |
|
|
4050 |
0.07 |
|
|
75524 |
1.29 |
|
|
105 |
0.00 |
|
|
3037209 |
51.72 |
|
Total Public shareholding (B) |
3627463 |
61.78 |
|
Total (A)+(B) |
5872040 |
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) |
5872040 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of chemicals servicing the requirements
of customers from a diverse range of industries - Textiles, Pharmaceuticals,
Agrochemicals, advanced Polymers, etc. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
587 (Approximately) |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
·
State
Bank of India ·
Axis
Bank Limited ·
Bank
of Baroda ·
IDBI
bank Limited |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Contractor, Nayak and KisnadwalaChartered Accountants |
|
Address : |
Vadodara, Gujarat, India |
|
|
|
|
Subsidiary
Companies : |
· Transpek Industry (Europe) Limited ·
Sam Fine O Chem Limited |
|
|
|
|
Enterprises owned
or significantly influenced by key management personnel or their relatives |
· Excel Industries Limited · Excel Crop Care Limited · TML Industries Limited · Shroffs Engineering Limited · Anshul Specialty Molecules Limited · Anshul Life Sciences · Madison Investments Private Limited · Agrocel Industries Limited · Transchem Agritech Limited · Hyderabad Chemical Products Limited · Kamaljyot Investments Limited · Shroffs Foundation Trust ·
C.C. Shroff Research Institute |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7500000 |
Equity Shares |
Rs.10/- each |
Rs.75.000 Millions |
|
500000 |
Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
|
|
|
Total
|
Rs.125.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5872040 |
Equity Shares |
Rs.10/- each |
Rs.58.720 Millions |
|
|
|
|
|
Reconciliation of the number of shares and amount outstanding at the
beginning and at the end of the year:
|
Particulars |
As at 31st
March, 2013 |
|
|
Number of Shares |
Rs. In Millions |
|
|
Opening/Closing Balance of Equity Shares
with voting rights |
5872040 |
Rs.58.720 |
The rights, preference and restriction attaching to each class of
shares:
Equity shares with voting rights:
Each holder of equity shares is entitled to one
vote per share. In the event of liquidation of the company, the holders of
equity shares will be entitled to receive any remaining assets of the company,
after distribution of all preferential amounts and repayment towards preference
share holders, if any.
Details of shares held by each share holder holding more than 5% shares.
|
Class of shares/Name of Share holder |
As at 31st
March, 2013 |
|
|
Number of Shares |
Extend of Holding |
|
|
Equity Shares with voting rights |
|
|
|
Finquest Securities Private Limited |
682699 |
11.63% |
|
Kamljyot Investment Limited |
608493 |
10.36% |
|
Shruti A. Shroff |
305725 |
5.21% |
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 |
58.720 |
58.720 |
58.720 |
|
(b) Reserves & Surplus |
558.804 |
477.066 |
580.252 |
|
(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) |
617.524 |
535.786 |
638.972 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
264.469 |
254.696 |
322.694 |
|
(b) Deferred tax liabilities (Net) |
91.760 |
84.282 |
106.064 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
17.742 |
18.046 |
18.560 |
|
Total Non-current Liabilities (3) |
373.971 |
357.024 |
447.318 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
426.103 |
482.676 |
247.478 |
|
(b) Trade payables |
283.956 |
272.202 |
278.279 |
|
(c) Other current
liabilities |
264.968 |
245.137 |
189.354 |
|
(d) Short-term provisions |
37.560 |
8.494 |
38.659 |
|
Total Current Liabilities (4) |
1012.587 |
1008.509 |
753.770 |
|
|
|
|
|
|
TOTAL |
2004.082 |
1901.319 |
1840.060 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
944.409 |
928.653 |
885.361 |
|
(ii) Intangible Assets |
2.150 |
4.015 |
5.927 |
|
(iii) Capital
work-in-progress |
16.489 |
8.951 |
47.132 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
139.483 |
106.083 |
131.583 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
78.206 |
76.785 |
91.326 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1180.737 |
1124.487 |
1161.329 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
244.532 |
291.250 |
277.922 |
|
(c) Trade receivables |
512.650 |
384.182 |
317.343 |
|
(d) Cash and cash equivalents |
27.614 |
35.248 |
21.008 |
|
(e) Short-term loans and
advances |
34.744 |
61.693 |
54.366 |
|
(f) Other current assets |
3.805 |
4.459 |
8.092 |
|
Total Current Assets |
823.345 |
776.832 |
678.731 |
|
|
|
|
|
|
TOTAL |
2004.082 |
1901.319 |
1840.060 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2107.971 |
1562.679 |
1844.153 |
|
|
|
Other Income |
34.391 |
42.961 |
14.095 |
|
|
|
TOTAL (A) |
2142.362 |
1605.640 |
1858.248 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
946.280 |
753.221 |
751.803 |
|
|
|
Purchases of Stock-in-Trade |
17.513 |
49.080 |
102.771 |
|
|
|
Changes in inventories of finished goods work- in-progress and Stock-in-Trade |
23.474 |
10.595 |
-73.173 |
|
|
|
Employee benefits expense |
221.923 |
187.965 |
198.326 |
|
|
|
Other expenses |
642.755 |
560.501 |
565.036 |
|
|
|
TOTAL (B) |
1851.945 |
1561.362 |
1544.763 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
290.417 |
44.278 |
313.485 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
113.979 |
100.947 |
74.430 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
176.438 |
(56.669) |
239.055 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
66.506 |
68.162 |
68.142 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
109.932 |
(124.831) |
170.913 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7.584 |
(21.646) |
43.086 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
102.348 |
(103.185) |
127.827 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
78.122 |
181.307 |
105.778 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
30.000 |
0.000 |
25.000 |
|
|
|
Dividend |
17.616 |
0.000 |
23.488 |
|
|
|
Tax on Dividend |
2.994 |
0.000 |
3.810 |
|
|
BALANCE CARRIED
TO THE B/S |
129.860 |
78.122 |
181.307 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1286.367 |
821.178 |
1016.886 |
|
|
TOTAL EARNINGS |
1286.367 |
821.178 |
1016.886 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
405.291 |
288.010 |
224.305 |
|
|
|
Stores & Spares |
0.071 |
0.023 |
0.000 |
|
|
|
Capital Goods |
10.647 |
2.730 |
6.038 |
|
|
TOTAL IMPORTS |
416.009 |
290.763 |
230.343 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
17.43 |
(17.57) |
21.77 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
592.600 |
592.600 |
|
Total Expenditure |
|
521.700 |
521.700 |
|
PBIDT (Excl OI) |
|
70.900 |
70.900 |
|
Other Income |
|
02.200 |
02.200 |
|
Operating Profit |
|
73.100 |
73.100 |
|
Interest |
|
32.200 |
32.200 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
40.900 |
40.900 |
|
Depreciation |
|
18.300 |
18.300 |
|
Profit Before Tax |
|
22.600 |
22.600 |
|
Tax |
|
05.700 |
05.700 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
16.900 |
16.900 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
16.900 |
16.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.78
|
(6.43) |
6.89 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.22
|
(7.99) |
9.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.95
|
(6.99) |
10.29 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
(0.23) |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.12
|
1.38 |
0.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.81
|
0.77 |
0.90 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
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 |
UNSECURED LOAN
Rs. In Millions
|
Particular |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Public Deposits |
108.961 |
123.205 |
|
Loan from Related
Parties |
|
|
|
Inter Corporate Deposits |
14.000 |
0.000 |
|
Deposits from Director's |
7.000 |
0.000 |
|
Deposits from Relative of Director |
1.500 |
0.000 |
|
Short term
borrowings |
|
|
|
Public Deposits |
11.008 |
23.740 |
|
Total |
142.469 |
146.945 |
|
|
|
|
REVIEW OF OPERATIONS
The net sale of the Company for the year is Rs.2070.200 Millions as compared to Rs.1535.500 Millions in the previous year, an increase of 35%. During the financial year 2012-13, the Company registered net profit of Rs.102.348 Millions as against net loss of Rs.103.185 Millions in the previous year.
During the year, exports registered Rs.1308.000 Millions (Previous year: Rs. 829.900 Millions) an increase of 58%, and domestic sale registered Rs.762.200 Millions (Previous Year: Rs.705.600 Millions) an increase of 8% in comparison to previous year.
Performance in the year 2012-2013 was better than the previous year, due to focus on the following key points:
Substantial increase in the sales volumes of Acid Chloride Products.
• Consistent focus on volumes (while maintaining the price) and live interaction with customers has helped in increasing sales volume.
• Favourable foreign exchange rate.
• Strategic shift from Thionyl Chloride to other acid chloride products resulting in sustained sales volume.
• An increase in the sales volume of Acid Chloride Products in the domestic market.
• Improvement in product quality and customer service.
OUTLOOK
They expect the business conditions to remain stable for the Company expecting a good growth in volumes in the year 2013-2014.
While there are uncertainties in the world markets and volatility in commodity prices, the Company’s strong business relationships in various regions and markets are expected to provide positive impetus to the growth of the business.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Company’s portfolio of products comprises largely of various Acid Chlorides which find applications in a very wide range of products from high-end, high value to basic consumer use.
The Company caters to the need of Agrochemicals, Polymers plastics, performance materials, elastomer, Pharmaceuticals, organic peroxide and personal care. Together with this, the market in all regions of the world developed by the Company, helps maintain a balanced and sustained business.
POLYMERS AND
SPECIALITY PLASTICS
With the stagnant economic condition in the United States and Europe as well as in some Asian countries, they do not expect a substantial growth in this segment. However, newer applications and newer materials are constantly developed which would help further growth in this segment. Also, the Company expects volumes to grow in specific specialty plastic products which may provide a moderate growth in near future.
PHARMA PRODUCTS
The Company has built an excellent reputation as a reliable supplier to many leading Pharma companies. In light of this, a very strong relationship that the Company enjoys, the customers have been demanding more products from the Company. Due to its specific requirements to comply with regulatory aspects, it takes a little longer time for commercial supply to start. However, in the coming years, they expect Pharma products to drive the company’s growth. The Company is focused on developing the capabilities needed to cater to multi stage reaction products.
AGROCHEMICALS AND
DYESTUFF
While the overall agrochemical market was stable during the year, uneven rainfall resulted in inconsistent growth.
The agrochemical market is expected to grow. However, low cost imports of agrochemicals and monsoon dependency are the key factors which may have an adverse impact on agrochemical sector.
The Company envisages a moderate growth in market for its products in agrochemical sector.
Due to effluent disposal issues, the dyestuff industry is facing problems of lower capacity utilisation. This is adversely affecting the market for Thionyl Chloride. They do not expect any growth in this segment.
OUTLOOK
An area of concern remains to be fluctuations in foreign exchange rates. However, due to higher exports the Company has remained a net foreign exchange earner. At the same time, the Company strives to balance foreign exchange inflow and outflow most efficiently using short-term hedges. With its focus on Polymer, high-end plastics and Pharma application products, the Company has successfully widened its market spread. Combined with the regional spread, this ability to serve various segments of the market shall continue to help the Company balance out negative impact in one market with positives in the other market.
The products for Pharmaceutical customers will be a key focus area for growth. The Company will continue to strengthen and consolidate its market position in Polymers and high-end plastic applications
CONTINGENT
LIABILITY:
(Rs.
In Millions)
|
Particulars
|
31.03.2013 |
31.03.2012 |
|
|
|
|
|
Claims against the company not
acknowledged as debts (mainly on account of outstanding law
suits) |
26.425 |
26.425 |
|
Guarantee given by banks to third parties
on behalf of the company |
1.797 |
1.824 |
|
Disputed income tax liability |
21.322 |
34.386 |
|
Disputed sales tax liability |
3.411 |
3.411 |
|
Total
|
52.955 |
66.046 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10359665 |
08/06/2012 * |
120,000,000.00 |
BANK OF BARODA |
CORPORATE FINANCIAL SERVICES, R C DUTT ROAD, VADODARA, GUJARAT - 390007, INDIA |
B41303546 |
|
2 |
10285720 |
18/10/2011 * |
70,000,000.00 |
BANK OF BARODA |
CORPORATE FINANCIAL SERVICES, R C DUTT ROAD, VADODARA, GUJARAT - 390007, INDIA |
B23524515 |
|
3 |
10251986 |
10/02/2011 * |
55,000,000.00 |
AXIS BANK LIMITED |
VARDHAMAN COMPLEX, OPP. GEB, RACE COURSE, VADODARA, GUJARAT - 390007, INDIA |
B07923527 |
|
4 |
10237528 |
10/02/2011 * |
85,000,000.00 |
IDBI BANK LIMITED |
SPECIALIZED CORPORATE BRANCH, 1ST FLOOR GARG PLAZA, 46-A, GAUTAM NAGAR, RACE CORSE ROAD, VADODARA, GUJARAT - 390007, INDIA |
B07938343 |
|
5 |
10206970 |
06/01/2011 * |
60,000,000.00 |
AXIS BANK LIMITED |
VARDHMAN COMPLEX, OPP. GEB, RACE COURSE, VADODARA, GUJARAT - 390007, INDIA |
B04123360 |
|
6 |
80030773 |
16/08/2013 * |
960,500,000.00 |
STATE BANK OF INDIA |
1ST FLOOR, MARBLE ARCH, RACE COURSE, ALKAPURI, VADODARA, GUJARAT - 390007, INDIA |
B83362889 |
|
7 |
80007927 |
05/10/2013 * |
960,500,000.00 |
BANK OF BARODA |
CORPORATE FINANCIAL SERVICES BRANCH, FIRST FLOOR, BOB BLDG,OPP: PETROL PUMP, R.C.DUTT ROAD, ALKAPURI, VADODARA, GUJARAT - 390007, INDIA |
B86849791 |
* Date of charge modification
FIXED ASSETS
· Land
· Building
· Pumps and Water Pipe lines
· Plant and Machinery
· Electrical Installations
· Research and development equipments
· Furniture and Fixtures
· Technical Books
· Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.58 |
|
|
1 |
Rs.101.42 |
|
Euro |
1 |
Rs.84.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
34 |
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.