MIRA INFORM REPORT
|
Report Date : |
14.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
RUSHIL DÉCOR LIMITED |
|
|
|
|
Formerly Known
As : |
RUSHIL DECOR PRIVATE LIMITED |
|
|
|
|
Registered Office
: |
S. No. 125, Near Kalyanpura Patia Village Itla,
Gandhinagar Mansa Road, Taluka Kalol, Village Itla – 382845, Gujarat |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
24.05.1993 |
|
|
|
|
Com. Reg. No.: |
04-019532 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.144.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25209GJ1993PLC019532 |
|
|
|
|
IEC No.: |
0893008401 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
AHMR01041F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCR3005N |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Laminate Sheets and Particle Board. |
|
|
|
|
No. of Employees
: |
290 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2880000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a satisfactory track record.
There is a slight dip in the profit margin of the company during 2013.
However, trade relations are reported as fair. Business is active. Payments
are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
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
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 |
CARE |
|
Rating |
Long term bank: “BBB-” |
|
Rating Explanation |
Having moderate degree of safety regarding
timely servicing of financial obligation. It carry moderate credit risk. |
|
Date |
August, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 (Unit - RHPL)/: |
S. No. 125, Near |
|
Tel. No.: |
91-79-26634346 |
|
Fax No.: |
91-79-26640969 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1 : |
2, |
|
|
|
|
Corporate Office 2 : |
1, Krinkal Apartment, Opposite Mahalaxmi Mandir, Near Mahalaxmi
Char Rasta Paldi, Ahmedabad - 380007, |
|
Tel. No.: |
91-79-26640970 / 26651346 / 26622323 |
|
Fax No. : |
91-79-26640969 |
|
|
|
|
Factory 2 (Unit –
RDL) : |
608, GIDC, Mansa, District Gandhinagar, Gujarat, India |
|
Tel. No.: |
91-2763-270395 |
|
Fax No.: |
91-2763-270695 |
|
|
|
|
Factory 3 (Unit
–MRPL) : |
At Dholakuva Patia, Gandhinagar Mansa Road, Mansa, District Gandhinagar, Gujarat, India |
|
Tel. No.: |
91-2763-271695 |
|
|
|
|
Factory 4 (Unit –Navalgadh) : |
Particle Board
Division: S. No. 270, at Village Navalgadh, Taluka Dhrangadhra, District Surendranagar, Gujarat, India |
|
Tel. No.: |
91-2754-293100 |
|
|
|
|
Factory 5 (Unit –Karnataka) : |
MDF Board Division: Plot No. 58, 59 & 60p, Amble Industrial Estate, Village Amble, Taluka and District Chikmagalur, Karnataka, India |
|
|
|
|
Domestic Network : |
Located at · Ahmedabad · Amritsar · Bangalore · Bhuvneshwar · Chandigarh · Chennai · Delhi · Goa · Hyderabad · Indore · Jaipur · Kolkata · Kanpur · Lucknow · Ludhiana · Mumbai · Mansa · Nagpur · Nashik · Patna · Pune · Rajkot ·
Raipur · Ranchi · Surat · Vadodara |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Ghanshyambhai A. Thakkar |
|
Designation : |
Chairman and Whole time Director |
|
Address: |
4, Pushpadhanva Bunglows, Premchand Nagar Road, Satellite, Ahmedabad - 380 015, Gujarat, India |
|
Date of Birth/Age : |
18.11.1943 |
|
Qualification : |
B.Sc. Diploma in Civil Engineering |
|
Date of Appointment : |
08.03.2007 |
|
|
|
|
Name : |
Mr. Krupesh Ghanshyambhai Thakkar |
|
Designation : |
Managing Director |
|
Address : |
4, Pushpadhanva Bunglows, Premchand Nagar Road, Satellite, Ahmedabad - 380 015, Gujarat, India |
|
Date of Birth/Age : |
21.10.1970 |
|
Qualification : |
B.Com. |
|
Date of Appointment : |
24.05.1993 |
|
|
|
|
Name : |
Mr. Kaushikbhai J. Thakkar |
|
Designation : |
Executive Director |
|
Date of Birth/ Age : |
27.03.1958 |
|
Qualification : |
Higher Secondary |
|
Date of Appointment : |
30.03.2013 |
|
|
|
|
Name : |
Mr. Rohitbhai B. Thakkar |
|
Designation : |
Independent Director |
|
Date of Birth/ Age : |
11.04.1955 |
|
Qualification : |
Under Graduate |
|
Date of Appointment : |
30.03.2013 |
|
|
|
|
Name : |
Mr. Harshadbhai N Doshi |
|
Designation : |
Independent Director |
|
Address : |
Navneet Bunglow, Near Bank of India Society, \commerce College, Navrangpura, Ahmedabad- 380009, Gujarat, India |
|
Date of Birth/ Age : |
31.10.1942 |
|
Date of Appointment : |
01.12.2007 |
|
|
|
|
Name : |
Mr. Shankar Prasad Bhagat |
|
Designation : |
Independent Director |
|
Address : |
B-9, Goyal Plaza, Jadges Bunglow Road, Ahmedabad – 380015, Gujarat, India |
|
Date of Birth/Age : |
11.10.1974 |
|
Date of Appointment : |
13.10.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Hasmukh K. Modi |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2013)
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6196376 |
43.03 |
|
|
1845770 |
12.82 |
|
Firm |
1845770 |
12.82 |
|
|
8042146 |
55.85 |
|
|
|
|
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
8042146 |
55.85 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1180105 |
8.20 |
|
|
1180105 |
8.20 |
|
|
|
|
|
|
|
|
|
|
1825086 |
12.67 |
|
|
|
|
|
|
628272 |
4.36 |
|
|
2673977 |
18.57 |
|
|
50414 |
0.35 |
|
|
47939 |
0.33 |
|
|
2475 |
0.02 |
|
|
5177749 |
35.96 |
|
|
|
|
|
Total Public shareholding (B) |
6357854 |
44.15 |
|
|
|
|
|
|
|
|
|
Total (A)+(B) |
14400000 |
100.00 |
|
|
|
|
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total (A)+(B)+(C) |
14400000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Laminate Sheets and Particle Board. |
||||
|
|
|
||||
|
Products : |
|
||||
|
|
|
||||
|
Brand Names : |
“Vir Laminate” and “Signor” |
GENERAL INFORMATION
|
No. of Employees : |
290 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Bank of Baroda Kalol Branch, N. G. Road, Kalol, Gujarat, India · Allahabad Bank S. P. Nagar Branch, Opposite S. P. Samaj Seva Hall, Navrangpura, Ahmedabad – 380009, Gujarat, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Parikh and Majmudar Chartered Accountants |
|
Address : |
303, GCP Business Centre, Opposite Memnagar Fire Station, Near Vijay Cross Road, Navrangpura, Ahmedabad – 380009, Gujarat, India |
|
|
|
|
Associate Companies/ Enterprise : |
· Rushil International · Vertex Laminate Private Limited · Decoply Agency · Shri Krupa Decorative Veneer Private Limited · Shri Krupa Eco Products Private Limited · Ghanshyam Sales Agency · Ghanshyam Ply Palace · Vir Studdio Private Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14400000 |
Equity Shares |
Rs.10/- each |
Rs.144.000 Millions |
|
|
|
|
|
NOTE:
(1)
Reconciliation of the shares outstanding at the beginning and at the end of the
reporting year
|
Particulars |
In numbers |
31.03.2013 (Rs. In millions) |
|
At the beginning of period |
14400000 |
144.000 |
|
Issued vide Initial Public Offer |
|
|
|
Outstanding at the end of year |
14400000 |
144.000 |
2) Details of
shares held by each shareholder holding more than 5% shares:
|
Particulars |
31.03.2013 |
|
|
Numbers of Shares held |
% holding in the class of shares |
|
|
Ghanshyambhai Ambalal Thakkar |
2004113 |
13.92 |
|
Krupesh Ghanshyambhai Thakkar and Ghanshyambhai Ambalal Thakkar Repre. Rushil International (Partnership Firm) |
1845770 |
12.82 |
|
Krupesh Ghanshyambhai Thakkar |
1533567 |
10.65 |
|
Krupesh G. Thakkar Karta of Krupesh Ghanshyambhai Thakkar (HUF) |
1389693 |
9.65 |
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 |
144.000 |
144.000 |
87.563 |
|
(b) Reserves & Surplus |
574.281 |
545.691 |
167.029 |
|
(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) |
718.281 |
689.691 |
254.592 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
687.382 |
642.216 |
411.612 |
|
(b) Deferred tax liabilities (Net) |
86.838 |
59.430 |
53.146 |
|
(c)
Other long term liabilities |
50.341 |
41.764 |
207.151 |
|
(d)
long-term provisions |
4.171 |
3.213 |
2.254 |
|
Total
Non-current Liabilities (3) |
828.732 |
746.623 |
674.163 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
430.046 |
413.924 |
341.859 |
|
(b)
Trade payables |
485.774 |
415.511 |
350.713 |
|
(c)
Other current liabilities |
168.548 |
67.464 |
127.433 |
|
(d)
Short-term provisions |
14.691 |
11.478 |
16.797 |
|
Total
Current Liabilities (4) |
1099.059 |
908.377 |
836.802 |
|
|
|
|
|
|
TOTAL |
2646.072 |
2344.691 |
1765.557 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1485.695 |
460.428 |
434.052 |
|
(ii)
Intangible Assets |
0.538 |
0.479 |
0.782 |
|
(iii)
Capital work-in-progress |
3.962 |
898.478 |
447.894 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.087 |
0.087 |
0.087 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
30.898 |
41.828 |
41.698 |
|
(e)
Other Non-current assets |
8.456 |
6.812 |
6.781 |
|
Total
Non-Current Assets |
1529.636 |
1408.112 |
931.294 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
502.557 |
392.519 |
386.423 |
|
(c)
Trade receivables |
399.687 |
331.474 |
262.930 |
|
(d)
Cash and cash equivalents |
46.995 |
45.121 |
112.081 |
|
(e)
Short-term loans and advances |
167.197 |
167.465 |
72.829 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
1116.436 |
936.579 |
834.263 |
|
|
|
|
|
|
TOTAL |
2646.072 |
2344.691 |
1765.557 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
1820.252 |
1531.777 |
1226.926 |
|
|
|
Other Income |
14.807 |
12.457 |
10.941 |
|
|
|
TOTAL (A) |
1835.059 |
1544.234 |
1237.867 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1156.466 |
966.332 |
823.202 |
|
|
|
Purchase of Stock-in-Trade |
8.604 |
11.267 |
10.844 |
|
|
|
Employee benefit expense |
94.142 |
59.521 |
49.784 |
|
|
|
Manufacturing and Other expenses |
361.196 |
279.126 |
261.277 |
|
|
|
Prior period items |
0.000 |
0.404 |
0.406 |
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade |
(34.489) |
41.864 |
(60.012) |
|
|
|
TOTAL (B) |
1585.919 |
1358.514 |
1085.501 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
249.140 |
185.720 |
152.366 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
111.666 |
81.456 |
62.241 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
137.474 |
104.264 |
90.125 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
51.240 |
25.643 |
23.798 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
86.234 |
78.621 |
66.327 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
45.974 |
22.040 |
21.575 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
40.260 |
56.581 |
44.752 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
129.804 |
81.591 |
45.235 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
|
7.200 |
7.200 |
|
|
|
Tax on Proposed Dividend |
|
1.168 |
1.196 |
|
|
BALANCE CARRIED
TO THE B/S |
161.696 |
129.804 |
81.591 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
855.230 |
709.506 |
439.003 |
|
|
TOTAL EARNINGS |
855.230 |
709.506 |
439.003 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
329.071 |
333.229 |
194.623 |
|
|
|
Capital Goods |
18.519 |
155.663 |
127.191 |
|
|
TOTAL IMPORTS |
347.590 |
488.892 |
321.814 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.80 |
4.37 |
5.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.19
|
3.66
|
3.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.74
|
5.13
|
5.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.26
|
5.44
|
5.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.11
|
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.56
|
1.53
|
2.96 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02
|
1.03
|
1.00 |
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 |
REVIEW OF BUSINESS OPERATION
During the Financial
year 2012-13, the company has started full fledge commercial production of
Medium Density Fiber Board “MDF Board” at Dist. Chikmagalur, State Karnataka.
The Total Net income from operation of company for the financial year 2012-13
is Rs.1820.252 Millions as against Rs.1531.777 Millions for the previous
financial year reflecting a growth of 18.83% in financial year 2012-13.
PROJECT & EXPANSION
Company has
started full fledge commercial production of MDF Board (Medium Density Fiber
Board) at Chikmagalur, Karnataka from the month of September, 2012. The revenue
generated by Company from Medium Density Fiber Board unit during the year
2012-13 is Rs.140.821 Millions.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
OVERVIEW
The global economy
did not improve to the extent anticipated at the beginning of the year and
during the year it gone slowly. Deceleration in industrial output and exports
weakened India’s growth significantly. The Indian economy slowed down
considerably with Real GDP growth fell to a decade’s low of 5% for the 2012-13
financial year on account of poor performance of manufacturing, agriculture and
services sector. The rupee remained weak for most part of the year.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Indians’
furniture retail market is one of the 14th largest furniture markets in the
world due to the rising purchasing power of the Indian middle class population.
According to a Cushman and Wakefield report, the demand for residential spaces
is forecasted to hit 4.25 million units while the demand for office spaces is
expected to hit 400 million sq.ft. between 2010 and 2014. In furniture market,
another major segment which drives to it is hotel developments and tourism
demand. The furniture sector makes a marginal contribution to India’s GDP.
Globalization and a good pay package of the middle class India is a great boost
for the furniture retail business in India.
The Mid size and
small Companies in furniture and related products are terming the financial
year 2012-13 as a bad time which did not participate in the growth, instead
they are still suffering the wound caused by the burn. The year has witnessed
growth in terms of value but not in volume. The furniture producers are
visioning a positive trend in the coming year because reality sector is visibly
positive on apartment prices. However, more players are added in the
manufacturer’s list of Particle Board and MDF which increase competition in
Particle Boards and MDF which would keep the prices under control and also
possibility of cut in profit.
SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE
LAMINATES AND ALLIED PRODUCTS
Laminate and allied products division is performing very
well. The company’s focus remained to grab premium market share. The “VIR
LAMINATE” and “SIGNOR” are the main brands under which company’s laminate
sheets are being sold in market and are attaining consumer preference for
quality product. The turnover of Laminate and allied products segment was up
from Rs.1284.506
Millions in 2011-12 to Rs.1457.947 Millions in 2012-13 showing growth of over 13.50%.
PARTICLE BOARD
The turnover of
Particle Board segment was down from Rs.194.934 Millions in 2011-12 to
Rs.127.974 Millions in 2012-13 showing decrease by 34.35%.
MEDIUM DENSITY
FIBER BOARD
Year 2012-13 is
the first year in which company started manufacturing and selling of Medium
Density Fiber Board in the month of September, 2012. Sales of MDF product for
part of the year is Rs.140.821 Millions.
EXPORT PERFORMANCE
The Export of
company including deemed export was up from Rs.788.643 Millions in 2011-12 to
Rs.981.446 Millions in 2012-13 showing growth of over 24.45%.
FUTURE OUTLOOK
In the FY 2012-13,
one more segment “Medium Density Fiber Board” is joined in the growth engine of
Company. Company is getting benefit of readymade market for its MDF product.
The Company’s
outlook for the year ending 31st March, 2014 is to add more products in the
product range after looking to the mood of market. Housing, infrastructure and
construction sectors have good support from Government which will ultimately
lead to the opportunities for laminate and wood industries. However, there may
be possibility of entrance of new organized and unorganized industries in this
sector, the supply may beat to demand which can cause price volatility in the
market. But, having modern technology, latest plants and precious brands, the
products of the Company may be in position to capture emerging opportunities
and to face the market threat or competition.
DISCUSSION ON
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The Revenue from
operations (Excluding Excise Duty) of company was increased from Rs.1531.777
Millions in 2011-12 to Rs.1820.252 Millions in 2012-13 showing growth of
18.83%.
The Profit before
Tax of company was increased from Rs.78.621 Millions in 2011-12 to Rs.86.234
Millions in 2012-13 showing growth of 9.68%.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
Particulars |
31.03.2013 |
31.03.2012 |
|
Corporate Guarantee given by the company for loan taken by Vertex Laminate Pvt. Ltd. |
NIL |
20.055 |
|
Outstanding Letter of Credit |
28.222 |
16.760 |
|
Disputed Income Tax Demand - Matter under Appeal |
1.257 |
NIL |
|
Disputed Custom Duty |
0.770 |
0.770 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10118640 |
22/11/2012 * |
125,000,000.00 |
Allahabad Bank |
S P NAGAR BRANCH,
'ACME CENTRE', SHRIMALI SOCIETY, |
B65248387 |
|
2 |
10090484 |
21/09/2013 * |
1,434,800,000.00 |
Bank of Baroda |
KALOL (N.G.)
BRANCH, KALOL, GUJARAT - 382721, INDIA |
B85364115 |
|
3 |
10090486 |
21/09/2013 * |
1,434,800,000.00 |
Bank of Baroda |
KALOL BRANCH,
KALOL, GUJARAT - 382721, INDIA |
B85364388 |
* Date of charge modification
FIXED ASSETS
· Land
· Leasehold Land
· Building
· Plant and Machinery
· Computer and Accessories
· Vehicles
·
Furniture and Fixture
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.61.92 |
|
|
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.83.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
44 |
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.