MIRA INFORM REPORT
|
Report Date : |
11.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
ALICON CASTALLOY LIMITED |
|
|
|
|
Registered
Office : |
Survey No. 1426, Village Shikrapur, Taluka – Shirur, Pune –
412208, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.12.1990 |
|
|
|
|
Com. Reg. No.: |
11-059487 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.55.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999PN1990PLC059487 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Seller of Aluminium Die Castings. |
|
|
|
|
No. of Employees
: |
831 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record.
General financial position of the company is good. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitment. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years respectively.
By 2020, emerging Asia will become the world’s largest consuming block,
overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A- (Long Term Rating) |
|
Rating Explanation |
Adequate degree of safety it carry low credit risk. |
|
Date |
03.10.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A2+ (Short Term Rating) |
|
Rating Explanation |
Strong degree of safety it carry low credit risk. |
|
Date |
03.10.2012 |
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.
INFORMATION DENIED
Management Non Cooperative. (91-9561699607)
LOCATIONS
|
Registered Office/ Factory 1 : |
Survey No. 1426, Village Shikrapur, Taluka – Shirur, Pune
– 412208, Maharashtra, India |
|
Tel. No.: |
91-2137-677100 |
|
Fax No.: |
91-2137-677130 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2 : |
57-58 km. Mile Stone, Delhi Jaipur, NH 8, Industrial Area, Village - Binola, District - Gurgaon, Haryana India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. S. Rai |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Junichi Suzuki |
|
Designation : |
Director |
|
Date of Birth : |
25.01.1948 |
|
Qualification : |
Engineer |
|
Special Expertise : |
Engineering and Management |
|
Date of Appointment
: |
29.10.2002 |
|
|
|
|
Name : |
Mr. A. D. Harolikar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Maskatsu Uchiyama (Alternate to Mr. J. Suzuki) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinay Panjabi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Asis Ray |
|
Designation : |
Director (Up to 31st July, 2013) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
282884 |
2.57 |
|
|
6610720 |
60.10 |
|
|
6893604 |
62.67 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6893604 |
62.67 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
297521 |
2.70 |
|
|
|
|
|
|
1533804 |
13.94 |
|
|
985804 |
8.96 |
|
|
1289267 |
11.72 |
|
|
146635 |
1.33 |
|
|
42432 |
0.39 |
|
|
1100000 |
10.00 |
|
|
200 |
0.00 |
|
|
4106396 |
37.33 |
|
Total Public shareholding (B) |
4106396 |
37.33 |
|
Total (A)+(B) |
11000000 |
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 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
1 |
Atlas Castalloy Limited |
99,820 |
0.91 |
0.91 |
|
2 |
Meenal Gidwani |
20 |
0.00 |
0.00 |
|
3 |
Nastic Trading LLP |
59,70,000 |
54.27 |
54.27 |
|
4 |
Pamela Raj |
20 |
0.00 |
0.00 |
|
5 |
Pamela Trading LLP |
2,86,000 |
2.60 |
2.60 |
|
6 |
Shailendra Rai |
2,82,724 |
2.57 |
2.57 |
|
7 |
Skyblue Trading & Investments Private Limited |
2,54,880 |
2.32 |
2.32 |
|
8 |
U C Rai Holdings Private Limited |
20 |
0.00 |
0.00 |
|
9 |
Usha Rai |
100 |
0.00 |
0.00 |
|
10 |
Vinita Chandra |
20 |
0.00 |
0.00 |
|
|
Total |
68,93,604 |
62.67 |
62.67 |
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding of
securities (including shares, warrants, convertible securities) of persons belonging
to the category Public and holding more than 1% of the total number of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
|
|
|
|
|
|
1 |
Enkei Corporation |
1100000 |
10.00 |
10.00 |
|
2 |
JNJ Holdings Private Limited |
114000 |
1.04 |
1.04 |
|
3 |
Motilal Gopilal Oswal |
342393 |
3.11 |
3.11 |
|
|
Total |
1556393 |
14.15 |
14.15 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
(together with PAC) belonging to the category “Public” and holding more than 5%
of the total number of shares of the company
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
|
|
|
|
|
|
1 |
Enkei Corporation |
1100000 |
10.00 |
10.00 |
|
|
Total |
1100000 |
10.00 |
10.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Aluminium Die Castings. |
GENERAL INFORMATION
|
Customers : |
Wholesalers, Retailers, End Users, OEM’s and Others
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
No. of Employees : |
831 (Approximately) |
|||||||||||||||||||||||||||
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|
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|
Bankers : |
|
|||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Asit Mehta and Associates Chartered Accountants |
|
|
|
|
Wholly Owned
Subsidiaries : |
|
|
|
|
|
Associate Companies
: |
|
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11,000,000 |
Equity Shares |
Rs.5/- each |
Rs.55.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11,000,000 |
Equity Shares |
Rs.5/- each |
Rs.55.000 Millions |
|
|
|
|
|
Reconciliation of
number of shares
(Rs. in Millions)
|
Particulars |
As on 31.03.2013 |
|
|
Number |
Amount |
|
|
Shares outstanding at the beginning of the year |
11,000,000 |
55.000 |
|
Shares issued during the year |
- |
- |
|
Shares bought back during the year |
- |
- |
|
Shares outstanding
at the end of the year |
11,000,000 |
55.000 |
Rights, preferences
and restrictions attached to shares
Equity Shares of Rs. 5/- each:
The Company has one class of equity shares having a par value of ` 5/- per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Details of shares
held by shareholders holding more than 5% of the aggregate shares in the Company
|
Sl. No. |
|
As on 31.03.2013 |
|
|
|
|
No. of Shares held |
% of Holding |
|
1 |
Nastic Trading LLP (formerly Nastic Trading Private Limited) |
5,970,000 |
54.27 |
|
2 |
Enkei Corporation |
1,100,000 |
10.00 |
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 |
55.000 |
55.000 |
55.000 |
|
(b) Reserves & Surplus |
956.308 |
769.811 |
581.685 |
|
(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) |
1011.308 |
824.811 |
636.685 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
52.500 |
235.674 |
299.658 |
|
(b) Deferred tax liabilities (Net) |
25.913 |
28.692 |
25.127 |
|
(c) Other long term
liabilities |
66.142 |
68.579 |
0.000 |
|
(d) long-term
provisions |
7.923 |
9.918 |
8.016 |
|
Total Non-current
Liabilities (3) |
152.478 |
342.863 |
332.801 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
609.301 |
576.235 |
276.662 |
|
(b) Trade
payables |
600.819 |
560.056 |
341.560 |
|
(c) Other
current liabilities |
406.011 |
425.433 |
417.937 |
|
(d) Short-term
provisions |
82.768 |
75.664 |
12.986 |
|
Total Current
Liabilities (4) |
1698.899 |
1637.388 |
1049.145 |
|
|
|
|
|
|
TOTAL |
2862.685 |
2805.061 |
2018.631 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1278.154 |
1283.928 |
1110.966 |
|
(ii)
Intangible Assets |
6.077 |
6.244 |
7.166 |
|
(iii)
Capital work-in-progress |
10.143 |
6.556 |
3.888 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
106.249 |
106.249 |
106.249 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
97.481 |
105.085 |
13.733 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1498.104 |
1508.062 |
1242.002 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
269.366 |
195.952 |
162.671 |
|
(c) Trade
receivables |
856.045 |
861.143 |
467.496 |
|
(d) Cash
and cash equivalents |
117.062 |
108.182 |
67.714 |
|
(e)
Short-term loans and advances |
118.093 |
129.901 |
77.471 |
|
(f) Other
current assets |
4.015 |
1.822 |
1.277 |
|
Total
Current Assets |
1364.581 |
1297.000 |
776.629 |
|
|
|
|
|
|
TOTAL |
2862.685 |
2805.061 |
2018.631 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4314.306 |
3808.242 |
2566.701 |
|
|
|
Other Income |
36.694 |
33.511 |
17.978 |
|
|
|
TOTAL (A) |
4351.000 |
3841.753 |
2584.679 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2356.172 |
1899.375 |
1180.538 |
|
|
|
Changes in inventories of finished goods, semi-finished goods & stock-in-trade |
(35.035) |
(0.412) |
(17.619) |
|
|
|
Employee benefits expense |
490.714 |
458.805 |
309.222 |
|
|
|
Other expenses |
997.738 |
931.640 |
713.691 |
|
|
|
TOTAL (B) |
3809.589 |
3289.408 |
2185.832 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
541.411 |
552.345 |
398.847 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
104.263 |
123.003 |
86.728 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
437.148 |
429.342 |
312.119 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
175.119 |
149.740 |
126.173 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
262.029 |
279.602 |
185.946 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
49.658 |
59.508 |
39.641 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
212.372 |
220.094 |
146.305 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
519.475 |
332.025 |
213.547 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
29.000 |
15.000 |
15.000 |
|
|
|
Dividend |
22.000 |
15.180 |
11.000 |
|
|
|
Tax on Dividend |
3.739 |
2.464 |
1.827 |
|
|
BALANCE CARRIED
TO THE B/S |
677.108 |
519.475 |
332.025 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
262.600 |
407.110 |
174.390 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
19.31 |
20.01 |
13.30 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Net Sales |
|
|
1036.500 |
|
Total Expenditure |
|
|
930.400 |
|
PBIDT (Excl OI) |
|
|
106.100 |
|
Other Income |
|
|
13.100 |
|
Operating Profit |
|
|
119.200 |
|
Interest |
|
|
20.500 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
98.700 |
|
Depreciation |
|
|
46.500 |
|
Profit Before Tax |
|
|
52.200 |
|
Tax |
|
|
11.400 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
40.800 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
40.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.88
|
5.73 |
5.66 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.07
|
7.34 |
7.24 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.54
|
10.39 |
9.74 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.34 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.65
|
0.98 |
0.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.80
|
0.79 |
0.74 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF CURRENT
MATURITIES OF LONG-TERM DEBT
(Rs. in Millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current maturities of long-term borrowings |
169.825
|
157.167 |
170.281 |
|
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 |
Yes |
|
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)
|
Particulars |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
LONG TERM
BORROWINGS |
|
|
|
Term loans |
|
|
|
From Financial Institutions |
44.556 |
94.294 |
|
Less: Current maturity of long term borrowings |
(44.556) |
(33.652) |
|
SHORT TERM
BORROWINGS |
|
|
|
Term loans from Banks |
4.051 |
18.030 |
|
Total |
4.051 |
78.672 |
|
NOTES:
Total number of installments = 36 EMI Number of installments due outstanding as at March 31, 2013 = 20 (PY = 32)
Total number of installments = 4 Installments Number of installments outstanding as at March 31, 2013 = 2 (PY = 5) |
||
YEAR UNDER RETROSPECT
While during the year global economy remained dis-appointing, sovereign debt crisis in Euro zone, political turmoil in Middle East and volatile crude prices further weakened the growth prospect. In India inflation remained high for most of the year. It is pertinent to note that whereas agriculture and service sectors continued to perform well, it was the manufacturing sector that mostly attributed to economic slow down. Rising cost of credit and activist monetary policy to check inflation further worsened the investment climate.
Even in odd economic situation, the Company turned out one more year of record achievements. On a standalone basis, though the net sales and total income were higher by 13%, due to increased employee cost and higher depreciation, the pre-tax profit was marginally lower compared to previous year. The Company recorded a net sale of Rs. 4314.306 million as against Rs. 3808.242 million in the previous year. The total income including other income for the year was Rs. 4351.00 million as against Rs. 3,841.753 million a year ago. Pre-tax profit was Rs. 262.029 million as against Rs. 279.602 million in the last year.
The consolidation of overseas operations as reported in the last year has commenced giving positive results. On consolidated basis (inclusive of working of the overseas subsidiaries), the net sales for the year was Rs. 5237.940 million as against Rs. 4687.190 million in the previous year. The pre-tax profit also increased by 8% at Rs. 219.040 millions as against Rs. 202.930 million a year ago.
FINANCE
During the year, the Company spent Rs. 170.00 million towards addition in fixed assets including plant and machinery and capital work in progress. The entire capital expenditure was funded from the internal accruals.
FUTURE PROSPECTS
The Directors are hopeful that initiatives taken by the Reserve Bank of India will fructify to combat the inflation. So far as Indian is concerned there is rise in income of individuals and there is constant change in consumption pattern. This will definitely lead to improvement in GDP. The Company is continuously developing new products for other engineering and infra related industries. This will enable the Company to sustain the growth in years to come.
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic Overview
The Indian economy experienced poor growth during 2012-13 for a range of reasons. A high fiscal deficit and a deteriorating current account deficit resulted in growing inflation and rising interest rates, which in turn led to a poor investment rate and a GDP growth of merely 5%, the lowest in the past decade. The industrial sector, which comprises the mining and quarrying, manufacturing, electricity, gas and water supply and construction, grew at 3.1% in 2012-13 after a marginally better rate of 3.5% in 2011-12. The service sector also grew at a subdued 6.6% and due to 'lower-than-normal rainfall' between June and July 2012, the agriculture sector clocked weak growth. Indian exports also performed poorly as the global economy continued to struggle with a slowdown.
Looking ahead, the Indian economy's growth is expected to pick up during the year 2014 as the economic climate appears to be turning around. The Government has started taking measures to boost investment and lower the fiscal deficit. Also the RBI is now in fray to mobilise the funds in the market and provide adequate liquidity. These policy measures coupled with predictions of a normal monsoon this year, which will spur demand, could drive India's GDP growth upwards. With all these measures, there looks to be improvement in the market around April-May 2014 and should be stabilised by September-October 2014 with the upward trends. The year 2014, will be the year of "General Elections", which should boost economic growth further.
Industry Overview
The metal casting (foundry) industry has come a long way from the days when it was predominantly used for die-casting in the automobile industry and a few electronic goods. Today it is a base industry on which the country's industrial growth hinges. A wide spectrum of industries including automobiles, aeronautics, railways, construction, mining and earth-moving equipment, pumps, compressors and valves, diesel engines, cement/electrical/textile machinery, steel plants and farm equipment and sanitary pipes and fittings, amongst others, are downstream industries for the castings industry.
The industry comprises of approximately 400 die cast companies with 4,500 units, of which 85% can be classified as small scale units, 10% as medium and only 5% as large scale units. Of these units, only around 800 have International Quality Accreditation. Being labour intensive, the industry employs around 6.5 lakh people directly and indirectly.
During 2011-12, the industry produced an estimated 10 million MT of various grades of castings, which conformed to international standards. There are various types of casting produced in India such as ferrous, non ferrous, aluminium alloy, graded cast iron, ductile iron, steel, etc., Casting exports have been increasing at a steady rate of 25-30% per annum for the past few years although they slowed down in 2012-13 due to weak demand from Europe, one of India's main export markets.
As per the World Census of Castings by Modern Castings, USA, India ranks as the 2nd largest foundry-based casting producer in the world, after China which leads with a production of 39.6 million MT. In terms of proportion of the world casting industry, India's share has increased to over 10% in 2012 and this is likely to grow as over the last decade, India's production capacities grew at a CAGR of 12%, while the world average grew at 3.6% during the same period.
The industry has weathered economic upturns and downturns and still grown at a faster rate than the overall economy. While India's GDP has been increasing at between 5-8% during the past few years, the foundry industry has posted a growth of 13% to 14% since 2001, except for 2008-09 when it clocked 12% due to poor demand on the back of a global recession. In fact, according to a study by the World Foundry Organization (WFO), while worldwide casting production increased 13.7% in 2010, India's industry grew 22%. This sterling performance has been largely due to the consistent demand for vehicles from tier II and tier III cities around the country and new industrial projects which led to an increase in local demand. A spokesperson of the WFO stated that although foundries in India have started investing to increase their productivity and capacity, the Indian foundry industry can look forward to accelerated growth for many years to come as the total domestic requirement of castings is about 20 million MT per year and there is a large demand-supply gap.
Some factors that will continue to drive demand are the government of India's focus on increasing the share of manufacturing in GDP; the New Manufacturing Policy which is aimed at enhancing the creation of new jobs; the Automotive Mission Plan 2016; various infrastructure development initiatives and power projects in the 12th Plan (2012-17) and the gradual shift of global OEM operations to India.
The Indian casting industry is projected to grow to $19.2 billion by 2016.
Business outlook
The Alicon Group is constantly one step ahead of the industry, plotting its future course and steering its activities towards success. Investing in R&D is considered a crucial activity and this has shown results time and again. Acquiring new clients from diverse sectors and creating new products which contribute tangibly to client's efficiency are also an integral part of Alicon growth strategy.
At the same time, the Company is conscious about its duty to offer comprehensive solutions at the most cost effective prices. Accordingly, financial restructuring without impinging efficiency or morale is also a pillar of Alicon business strategy.
With firm commitment to these goals, and inherent strengths in terms of size, abilities and quality assurance, the Company is set to weather economic storms with just as much fortitude as it is ready to ride economic booms.
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10427026 |
28/03/2013 |
300,000,000.00 |
STATE BANK OF INDIA |
Industrial Finance Branch, Tara Chambers, 2nd floor, Old Pune Mumbai HIghway, Wakdewadi, Pune, Maharashtra - 411003, INDIA |
B75589002 |
|
2 |
10376466 |
25/07/2012 |
35,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, TARA CHAMBERS, WAKDEWADI, MUMBAI-PUNE ROAD, Pune, Maharashtra - 411003, INDIA |
B58088360 |
|
3 |
10364828 |
18/06/2012 |
91,000,000.00 |
ING VYSYA BANK LIMITED |
928, MANTRI CENTRE, F.C. ROAD, PUNE, Maharashtra - 411004, INDIA |
B43346527 |
|
4 |
10364822 |
18/06/2012 |
200,000,000.00 |
ING VYSYA BANK LIMITED |
928, MANTRI CENTRE, F.C. ROAD, PUNE, Maharashtra - 411004, INDIA |
B43344472 |
|
5 |
10274563 |
28/03/2011 * |
320,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, TARA CHAMBERS, WAKDEWADI, PUNE, Maharashtra - 411083, INDIA |
B12631008 |
|
6 |
10225304 |
26/08/2011 * |
164,200,000.00 |
ING VYSYA BANK LIMITED |
928, MANTRI CENTRE, F.C. ROAD, PUNE, Maharashtra - 411004, INDIA |
B22089965 |
|
7 |
10225303 |
02/06/2010 |
50,000,000.00 |
ING VYSYA BANK LIMITED |
928, MANTRI CENTRE, F.C. ROAD, PUNE, Maharashtra - 411004, INDIA |
A88121611 |
|
8 |
10135067 |
05/02/2009 * |
200,000,000.00 |
BANK OF TOKYO-MITSUBISHI UFJ LIMITED |
HOECHST HOUSE, 15TH FLOOR,, 193, VINAY K. SHAH MARG, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA |
A55693097 |
|
9 |
90086717 |
17/03/2004 |
24,000,000.00 |
BANK OF MAHARASHTRA |
INDUSTRIAL FINANCE BRANCH, PUNE, Maharashtra, INDIA |
- |
|
10 |
90091977 |
27/03/2006 * |
38,000,000.00 |
BANK OF MAHARASHTRA - LEAD BANK |
INDUSTRIAL FINANCE BRANCH, F C ROAD F C ROAD, PUNE, Maharashtra - 411005, INDIA |
- |
|
11 |
90086216 |
31/05/2013 * |
1,493,000,000.00 |
BANK OF MAHARASHTRA |
CORPORATE FINANCE BRANCH, F. C. ROAD, PUNE, Maharashtra - 411005, INDIA |
B80074958 |
|
12 |
90088346 |
17/12/1999 * |
27,500,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, PUNE, Maharashtra, INDIA |
- |
|
13 |
90085235 |
13/12/1999 |
37,000,000.00 |
BANK OF MAHARASHTRA |
INDUSTRIAL FINANCE BRANCH, SHIVAJINAGAR, PUNE, Maharashtra - 411005, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
- Freehold Land
- Building
- Factory Equipments
- Plant and Machinery
- Electrical Installations
- Furniture and Fixtures
- Computers
- Office Equipments
- Quality Control Equipments
- Motor vehicle
- Dies and Patterns
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.62.14 |
|
|
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.83.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
JML |
|
|
|
|
Report Prepared
by : |
RAJ |
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 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
51 |
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.