MIRA
INFORM REPORT
|
Report Date : |
12.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
GHCL LIMITED |
|
|
|
|
Registered
Office : |
GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad - 380009, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
14.10.1983 |
|
|
|
|
Com. Reg. No.: |
04-006513 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1000.193 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24100GJ1983PLC006513 |
|
|
|
|
IEC No.: |
0588091529 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG5609C |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacture of Inorganic Chemicals and Textiles. |
|
|
|
|
No. of Employees
: |
3117 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 34000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track
record. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payments
terms are reported to be regular 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: “BBB” |
|
Rating Explanation |
Have moderate degree of safety and carry moderate credit risk. |
|
Date |
07.10.2013 |
|
|
|
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: “A3” |
|
Rating Explanation |
Have moderate degree of safety and carry higher credit risk. |
|
Date |
07.10.2013 |
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
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Mr. Sagar Gupta |
|
Designation : |
AGM Finance |
|
Contact No.: |
91-9714618844 |
|
Date : |
09.08.2014 |
LOCATIONS
|
Registered Office : |
GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad - 380009,
Gujarat, India |
|
Tel. No.: |
91-79-26427818 |
|
Mobile No.: |
91-9714618844 (Mr. Sagar Gupta) |
|
Fax No.: |
91-79-26423623 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate/ Head Office : |
“GHCL House” B-38, Institutional Area, Sector – 1, Noida - 201 301,
Uttar Pradesh, India |
|
Tel. No.: |
91-120-2536572/ 2535335 |
|
Fax No.: |
91-120-2535209/ 2534153 |
|
|
|
|
Work 1 : |
Soda ash Plant, Village Sutrapada, Near Vereval, District Junagadh –
362275, |
|
|
|
|
Work 2 : |
Salt Works and
Refinery ·
Ayyakaramulam, Kadinalvayal – 614707, District
Nagapattinam, Tamilnadu, India ·
Nemeli Road, Thiruporur – 603110, Tamilnadu,
India |
|
|
|
|
Textiles : |
·
Samayanallur P.O. Madurai – 625402, ·
Thaikesar Alai P.O Manaparai – 621312, India. ·
S. No. 191/192, Mahala Falia, Village Bhilad,
District Valsad – 396105, Gujarat, India. |
|
|
|
|
Energy Division : |
·
Muppandal, ·
Chinnaputhur Village, Dharapuram Taluk, Erode
District, Tamilnadu, India |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Sanjay Dalmia |
|
Designation : |
Non-Executive Chairman |
|
|
|
|
Name : |
Mr. Anurag Dalmia |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Neelabh Dalmia |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Dr. B.C. Jain |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. D C Jain |
|
Designation : |
Nominee Director (IDBI Bank) |
|
|
|
|
Name : |
Mr. R M V Raman |
|
Designation : |
Nominee Director (Exim Bank) |
|
|
|
|
Name : |
Mr. Surendra Singh |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. G C Srivastava |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Mahesh Kheria |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sanjiv Tyagi |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. S H Ruparell |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. R S Jalan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Raman Chopra |
|
Designation : |
Executive Director (Finance) |
KEY EXECUTIVES
|
Name : |
Mr. Bhuwneshwar Mishra |
|
Designation : |
General Manager and Company Secretary |
|
|
|
|
Name : |
Mr. Manoj Kumar Ishwar |
|
Designation : |
Manager (Secretarial) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
11933984 |
11.93 |
|
|
152000 |
0.15 |
|
|
152000 |
0.15 |
|
|
12085984 |
12.08 |
|
|
|
|
|
|
5507900 |
5.51 |
|
|
5507900 |
5.51 |
|
Total shareholding of
Promoter and Promoter Group (A) |
17593884 |
17.59 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
16913 |
0.02 |
|
|
81739 |
0.08 |
|
|
6208120 |
6.21 |
|
|
7523183 |
7.52 |
|
|
13829955 |
13.83 |
|
|
|
|
|
|
31313929 |
31.31 |
|
|
|
|
|
|
21031079 |
21.03 |
|
|
13421648 |
13.42 |
|
|
2828791 |
2.83 |
|
|
85733 |
0.09 |
|
|
3900 |
0.00 |
|
|
296737 |
0.30 |
|
|
1926581 |
1.93 |
|
|
455545 |
0.46 |
|
|
3352 |
0.00 |
|
|
56943 |
0.06 |
|
|
68595447 |
68.58 |
|
Total Public shareholding
(B) |
82425402 |
82.41 |
|
Total (A)+(B) |
100019286 |
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) |
100019286 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Inorganic Chemicals and Textiles. |
PRODUCTION STATUS (AS ON: 31.03.2013)
|
Particulars |
Unit |
Installed
Capacity |
|
Soda Ash |
MT |
724021 |
|
Refined Salt |
MT |
56353 |
|
Yarn |
MT |
16156 |
|
Cloths –Job Work+ Own Production |
MTRS (‘000) |
38416 |
|
Bicarb – (Production from Soda Ash) |
MT |
23593 |
|
Bed Sheet Sets – Job Works |
MTRS (‘000) |
23692 |
GENERAL INFORMATION
|
No. of Employees : |
3117 (Approximately) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
· State Bank of Travancore · IDBI Bank Limited · Canara Bank · State Bank of Bikaner and Jaipur · State Bank of Patiala · Export Import Bank of India · State Bank of India · State Bank of Mysore · State Bank of Hyderabad · Union Bank of India · Bank of Maharashtra · Dena Bank · Tamilnad Merchantile Bank Limited · Andhra Bank · Jammu and Kashmir Bank Limited |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Jayantilal Thakkar and Company Chartered Accountants Rahul Gautam Divan and Associates Chartered Accountants |
|
|
|
|
Secretarial
Auditors: |
Dr. K R Chandratre Practicing Company Secretary |
|
|
|
|
|
|
|
Subsidiaries and Associate : |
·
Indian England N.V. ·
Indian Wales N.V. ·
Dan River Properties LLC ·
Grace Home Fashions LLC ·
GHCL Rosebys Limited ·
Rosebys Interiors India Limited ·
Teliforce Holding India Limited (under
Liquidation since 29th January, 2014) ·
Rosebys UK Limited (under Liquidation 24th
December, 2009) ·
Textile and Design Limited (under Liquidation
since 25th September, 2009) ·
GHCL Inc. (Dissolved as at 14th May, 2012) ·
Indian Britain B.V. (Liquidated as at 30th
November, 2012) ·
Colwell and Salmon Communications Inc.
(Liquidated as at 1st April, 2013) ·
DM Solar Farm Private Limited · TCP Limited (w.e.f. 31st January, 2014) |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Shares |
Rs.10/- each |
Rs.1750.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100019286 |
Equity Shares |
Rs.10/- each |
Rs.1000.193 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1000.193 |
1000.193 |
1000.193 |
|
(b) Reserves & Surplus |
7597.770 |
9674.534 |
8615.520 |
|
(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) |
8597.963 |
10674.727 |
9615.713 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
7233.269 |
6220.815 |
7043.601 |
|
(b) Deferred tax liabilities (Net) |
1620.203 |
1632.740 |
1663.431 |
|
(c) Other long
term liabilities |
57.716 |
32.997 |
21.019 |
|
(d) long-term
provisions |
16.814 |
10.695 |
7.029 |
|
Total Non-current
Liabilities (3) |
8928.002 |
7897.247 |
8735.080 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
4947.756 |
4638.632 |
4817.128 |
|
(b)
Trade payables |
4170.483 |
3841.116 |
2298.128 |
|
(c)
Other current liabilities |
1752.003 |
1561.988 |
1946.794 |
|
(d) Short-term
provisions |
383.698 |
371.929 |
348.044 |
|
Total Current
Liabilities (4) |
11253.940 |
10413.665 |
9410.094 |
|
|
|
|
|
|
TOTAL |
28779.905 |
28985.639 |
27760.887 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
18667.446 |
18693.058 |
18707.731 |
|
(ii) Intangible
Assets |
8.043 |
14.505 |
16.307 |
|
(iii)
Capital work-in-progress |
124.565 |
315.620 |
150.654 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
55.833 |
55.838 |
249.392 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
237.552 |
82.301 |
130.182 |
|
(e) Other
Non-current assets |
5.468 |
38.225 |
93.863 |
|
Total Non-Current
Assets |
19098.907 |
19199.547 |
19348.129 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
20.000 |
0.000 |
37.953 |
|
(b)
Inventories |
4041.808 |
3910.711 |
3245.273 |
|
(c)
Trade receivables |
2978.691 |
2411.292 |
1894.925 |
|
(d) Cash
and cash equivalents |
390.591 |
286.906 |
301.126 |
|
(e)
Short-term loans and advances |
2249.908 |
3177.183 |
2894.971 |
|
(f)
Other current assets |
0.000 |
0.000 |
38.510 |
|
Total
Current Assets |
9680.998 |
9786.092 |
8412.758 |
|
|
|
|
|
|
TOTAL |
28779.905 |
28985.639 |
27760.887 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
22242.088 |
21249.464 |
18967.315 |
|
|
Other Income |
49.988 |
29.849 |
96.266 |
|
|
TOTAL (A) |
22292.076 |
21279.313 |
19063.581 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
8886.002 |
7909.135 |
7707.482 |
|
|
Purchases of
Stock-in-Trade |
333.494 |
612.912 |
920.143 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(101.347) |
55.833 |
(243.541) |
|
|
Employees benefits
expense |
1219.930 |
1110.334 |
999.252 |
|
|
Other expenses |
7620.766 |
7395.458 |
5835.642 |
|
|
Exceptional Items |
309.720 |
395.832 |
0.000 |
|
|
TOTAL (B) |
18268.565 |
17479.504 |
15218.978 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (C) |
4023.511 |
3799.809 |
3844.603 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
1705.275 |
1579.618 |
1849.615 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2318.236 |
2220.191 |
1994.988 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
815.677 |
819.672 |
808.486 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
1502.559 |
1400.519 |
1186.502 |
|
|
|
|
|
|
|
Less |
TAX (H) |
339.639 |
251.254 |
11.707 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
(G-H) (I) |
1162.920 |
1149.265 |
1174.795 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
2221.830 |
1421.244 |
1457.027 |
|
|
|
|
|
|
|
Add |
PRIOR PERIOD ADJUSTMENTS |
1.675 |
0.392 |
1.889 |
|
|
|
|
|
|
|
|
EXCESS PROVISION FOR TAX FOR EARLIER
YEARS |
(7.631) |
(0.108) |
20.023 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
116.292 |
114.927 |
1000.000 |
|
|
Dividend |
200.039 |
200.039 |
200.039 |
|
|
Tax on Dividend |
33.997 |
33.997 |
32.451 |
|
|
BALANCE CARRIED TO THE
B/S |
3028.466 |
2221.830 |
1421.244 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
Export of finished goods of FOB
basis |
5975.187 |
5538.872 |
5206.334 |
|
|
Recovery towards freight etc.
on exports |
35.157 |
35.001 |
68.987 |
|
|
Others |
0.000 |
0.700 |
3.047 |
|
|
TOTAL EARNINGS |
6010.344 |
5574.573 |
5278.368 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials and Utilities |
2027.744 |
1939.656 |
820.262 |
|
|
Components and spare parts |
36.476 |
40.489 |
46.081 |
|
|
Capital Goods |
76.198 |
457.185 |
72.861 |
|
|
Trading Goods |
118.388 |
314.823 |
330.619 |
|
|
TOTAL IMPORTS |
2258.806 |
2752.153 |
1269.823 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
11.57 |
11.49 |
11.96 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
5.22 |
5.40 |
6.16 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.76 |
6.59 |
6.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.25 |
4.89 |
4.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17 |
0.13 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.42 |
1.02 |
1.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.86 |
0.94 |
0.89 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
1000.193 |
1000.193 |
1000.193 |
|
Reserves & Surplus |
8615.520 |
9674.534 |
7597.770 |
|
Net worth |
9615.713 |
10674.727 |
8597.963 |
|
|
|
|
|
|
long-term borrowings |
7043.601 |
6220.815 |
7233.269 |
|
Short term borrowings |
4817.128 |
4638.632 |
4947.756 |
|
Total borrowings |
11860.729 |
10859.447 |
12181.025 |
|
Debt/Equity ratio |
1.233 |
1.017 |
1.417 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
18967.315 |
21249.464 |
22242.088 |
|
|
|
12.032 |
4.671 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
18967.315 |
21249.464 |
22242.088 |
|
Profit |
1174.795 |
1149.265 |
1162.920 |
|
|
6.19% |
5.41% |
5.23% |
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2014 |
As on 31.03.2013 |
|
LONG TERM
BORROWINGS |
|
|
|
Other Loans from banks |
650.205 |
312.846 |
|
|
|
|
|
Total |
650.205 |
312.846 |
PER FOR MANCE
HIGHLIGHTS
SODA ASH
The Global Soda Ash market which was around 52 million tons in 2012 is estimated to be approximately 54 million metric tons in 2013 against a capacity of about 65 Million MT. Global demand for Soda Ash grew 2.8% annually over the last 5 years and is expected to grow 5% annually through 2017. The projected growth for this year is 4% with most of the growth expected to be in China, India, and South America. World operating rates will not improve due to continued over capacity.
Due to the global cost disparities, relative production costs will be a key issue for the soda ash industry in the future. Though demand for Soda Ash remained better during the year, price pressure from key inputs such as salt and energy weighed heavily.
Consumption of soda ash per person is expected to register healthy rise in the next few years with China leading the rankings with consumption from 10.85 kilograms in 2007 to an expected 12.00 kilograms in 2013. China is likely to add at least 2 Million MT capacities every year on the back of huge infrastructure investments.
The manufacturing and processing costs for producing soda ash from trona are more cost competitive than other manufacturing techniques partly because of the cost associated with procuring the material needed for synthetic production. In addition, tronabased production consumes less energy. The average cost of production per ton of soda ash (before freight and logistics costs) from trona is approximately one-third to one-half the cost per ton of soda ash from synthetic production. The future depends upon soda ash prices. Soda Ash prices fluctuate according to the demand supply situation in the global market, China in particular.
Due to depressed conditions prevailing in the Indian Economy, Soda Ash demand witnessed a flat growth in 2013-14. Market feedback suggests other than Detergents; all other consuming segments lead by Glass recorded lower growth. Most affected sectors are container glass and flat glass, which are under pressure because of overcapacity and slow growth in demand. They are under pressure and continue to struggle with sharp decline in sales and stock pile up and also their financial status is still a cause of concern. Though reduced, imports continue to flow in high volumes. It is expected that on the back of improved GDP growth projected and growth in Glass (Construction/ Automobiles) and Detergents (FMCG penetration and growth) Soda Ash demand will continue to witness a reasonable growth. While domestic demand in 2013-14 has been flat, demand growth of 3 to 4% expected in the coming year 2014-15.
The Indian Soda Ash market constitutes of two varieties – Light (used in detergent industry) and Dense (used in Glass industry), with a share of 60% and 40% respectively. Total installed capacity in India was 3.1 Million MT. With an estimated production of about 2.5 Million MT in last financial year (2013- 14) the capacity utilization was of only 80%.
The total size of the Indian soda ash market is about 2.7 Million MT and almost all the major industry players are located in the state of Gujarat due to the closeness and ready availability of the main raw materials namely limestone and salt.
At present the Soda Ash plant has a capacity of 8.50 lacs MTPA. During the financial year 2013-14 the company has produced 7.12 lacs MT soda ash. This year, the Company has also achieved highest domestic sales i.e. 6.44 lacs MT and total sales of Soda Ash is 6.71 lacs MT including exports.
BI-CARBONATE (BICARB)
During the year, the Company achieved production of Bi- Carbonate 21827 tons against 23593 tons in the previous year. During the year the Company achieved sales of Bi-Carbonate 21591 tons against 23433 tons in the previous year.
HOME TEXTILES
The Indian Textile Industry, 2nd largest in the world, has been growing at 10% over last several years. Government of India has provided a number of export promotion policies for the Textile sector. In addition, States of Gujarat, Maharashtra, Madhya Pradesh have special incentive for textile industry. Hence, the outlook for the textile industry looks positive and there are huge opportunities in future for growth in this industry.
In the Textile Business of the company, the performance of Yarn business has improved as compared to the previous year, which is mainly due to better demand in yarn, increase in yarn prices and stability of cotton prices. Further, the Made-ups (Home Textile) Business operations are now fully stabilized and doing reasonably well mainly due to the better market sentiments in US. However, pricing pressure and volatility in forex still remain huge challenges, which may keep margins under pressure.
The Revenue of Home Textile division is at Rs. 6625.500 millions during the financial year 2013-14 against Rs. 6170.400 millions in 2012-13, thereby registering a growth of around 7.38% over previous year. Due to its sustained marketing efforts, the company has successfully made deep in roads in export market and further secured large replenishment orders from the big Global Retailers in US and Europe. Market sentiment in US looks better and the Company is focusing on US market with large volume programs. With depreciation in Indian Rupee, tremendous interest has been getting generated in US retail to shift some more business to India which further looked promising for Indian home textile industry going forward.
The Revenue of Yarn division is at Rs. 4419.600 millions during the financial year 2013-14 against Rs. 3818.700 millions in 2012-13, thereby registering a handsome growth of around 15.74% over previous year. The performance of Yarn business improved as compared to the previous year, which is mainly due to better demand in Yarn and increase in yarn prices. Both Domestic and international cotton prices remained stable. But, shortage of skilled labour as well as grim power situation is the main challenges for yarn industry including the Company. However, the aggressive power trading by the Company resulted in substantial savings partially offsetting the aforesaid impact. Overall outlook for Spinning Industry looks better and with stable cotton prices, timely cotton coverage and improved yarn price scenario, the directors expect a profitable period ahead for the Company.
MANAGEMENT DISCUSSIO
N AND ANALYSIS
DISCLAIMER
Readers are cautioned that this Management Discussion and Analysis contains forward-looking statements that involve risks and uncertainties. When used in this discussion, the words “anticipate”, “believe”, “estimate”, “intend”, “will”, and “expected” and other similar expressions as they relate to the Company or its business are intended to identify such forward looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances or achievements and risks and opportunities could differ materially from those expressed or implied in such forward-looking statements. The important factors that would make a difference to the Company's operations include economic conditions affecting demand supply and price conditions in the domestic and overseas markets, raw material prices, changes in the Governmental regulations, labour negotiations, tax laws and other statutes, economic development within India and the countries within which the Company conducts business and incidental factors. The Company undertakes no obligation to publicly amend, modify or revise any forward-looking statements on the basis, of any subsequent developments, information or events. The following discussion and analysis should be read in conjunction with the Company’s financial statements included herein and the notes thereto.
REVIEW OF ECONOMY
As per the Advanced Estimates released by the Central Statistical Organisation (CSO) in February 2014, the growth in GDP during 2013-14 is estimated at 4.9% as compared to a growth rate of 4.5% in 2012-13, a slightly faster pace than in the previous year, mainly on an improved performance in the agriculture and allied sectors. However, the CSO had lowered growth for 2012-13 to 4.5% in its revised estimates from an earlier provisional forecast of 5%. The latest estimate of 4.9% for 2013-14 implies that the pace of economic expansion improved in the second half, given that GDP grew 4.6% in the first half of 2013-14 (i.e. April-September period).
The farm sector, which accounts for nearly 14% of GDP, is estimated to grow 4.6% in 2013-14, sharply higher from the previous year’s 1.4% growth. This augurs well for the rural economy, which is expected to shield overall growth. But, a deep slowdown in the manufacturing and mining sectors continued, prompted calls for measures to reverse the trend. The manufacturing sector is expected to decline 0.2% in this financial year compared with growth of 1.1% in the previous year. According to the advance estimates, the services sector, including finance, insurance, real estate and business services sectors, is likely to grow 11.2% this year compared with 10.9% in 2012-13. The growth rate in per capita income is estimated at 2.8% as against the previous year's estimate of 2.1%.
The government and the Reserve Bank of India (RBI) had repeatedly said that growth would be in the range of 5 to 5.5% stubborn inflationary pressures.
In the last decade, they experienced a period of high growth and low inflation until the global financial crisis in 2008. The crisis adversely impacted the Indian economy given their increasing integration with the global economy. The Government and the Reserve Bank of India (RBI) took several policy measures to minimise the spillover of global crisis on Indian economy. In the process growth bounced back but inflation also increased. More recently while growth has moderated, inflation still remains above comfort levels. In the post-global crisis period since 2008- 09 inflation has emerged as a major public policy concern. A disturbing feature of the current episode of inflation is that it has been accompanied by high food inflation, which hurts most the poor and the low-income people of their society.
Both wholesale and consumer inflation rose more than expected in March 2014 because of pricier food articles, dashing hopes of any immediate monetary easing by the Reserve Bank of India to support demand. The new government will inherit a high and sticky inflation and economy that has shown no real spark as yet, though the stock markets have run ahead in the hope of a brighter year. Wholesale inflation, as measured by the Wholesale Price Index (WPI), rose to a three-month high of 5.7% in March 2014 compared with 4.68% in February 2014. A separate release by the CSO showed consumer price inflation (CPI) rose to 8.31% in March from 8.03% in February.
Last year, the large CAD had increased India's external vulnerabilities during July-September 2013, resulting in a sharp depreciation of the rupee after the US Fed's taper talk. India not only became part of the "Fragile Five", including Indonesia, Turkey, Brazil and South Africa, all countries with large CADs, but had the dubious distinction of leading the pack with the rupee being the worst performing currency.
India's current account deficit (CAD) shrank to a mere 0.9% of GDP in the third quarter of 2013-14 from a record 6.5% for the same period in the previous year. The CAD for 2013-14 is on track to be lower than 2.5 per cent of GDP. The current decline in CAD is due to a lower trade deficit achieved through a massive fall in gold and capital goods imports. Gold imports declined on average by 75 per cent during the six months from August 2013, accounting for nearly 60 per cent of the fall in aggregate imports. Hence, this is a commendable outcome. The question remains; can this lower CAD be sustained.
For an emerging economy like India with high domestic demand, it is neither unusual nor negative to incur a CAD if two conditions are satisfied. First, that imports contribute to capacity expansion and productivity enhancement, not merely to consumption and second, CAD can be financed by non-debt-creating capital inflows. But persistently high CAD with declining foreign currency reserves increases macroeconomic vulnerability to external shocks and puts the domestic currency under pressure. Therefore, the current decline in CAD is welcome news.
During 2008-09 and 2013-14, private investment fell by an alarming 8.2% of GDP due to poor investor sentiment and the fiscal deficit crowding private investment. So, capacity expansion in the economy stalled while consumption continued to rise, fuelled by higher public spending. Consequently, macro instability built up in the system with rising retail inflation and larger CAD. Falling private investment also brought down potential growth from nearly 8.5% to less than 5%.
Plummeting investment has been the principal driver of the current compression in CAD. This is disastrous for an economy seeking to generate massive employment opportunities. CMIE data on ongoing projects indicates that investments have continued to decline despite some revival in government projects due to clearances by the Cabinet Committee on Investment. The number of abandoned or stalled projects has also continued to rise. It is clear that the economy needs to bring private investment back on track and raise public savings if the compression in CAD has to be sustained
The improvement in CAD has come about by suppressing imports rather than growth of exports. This is neither sustainable nor desirable as it may result in the re-emergence of large-scale gold smuggling. Internally, it has been achieved through much lower investments rather than higher savings. So, the quality of external account correction remains poor, unsustainable and inimical to reviving growth.
It is true that the Indian economy is currently passing through a phase of relatively slow growth, but this should not cloud the fact that over the eight – year period beginning 2005-06, the average annual growth rate has been 8%. Does India have the potential to grow at a sustained rate of 8 to 9%? Why has the economy slowed down so rapidly despite recovering strongly from the global financial crisis? A number of factors are responsible viz. inflation, investment bottlenecks as well as the tighter monetary policy. Hope, new Government would take necessary steps to attract the foreign investment and also to enhance in domestic savings. It is a decisive mandate for the new government, which will augur well for spearheading a new paradigm of development with rapid changes in land and labour laws. Policy rate cuts by the RBI and improving business sentiments could also support a revival in investments.
INDUSTRY OUTLOOK
The global soda ash industry continued to recover from the world economic problems that began in 2009. The world estimated 2013 distribution of soda ash by end use as under; Glass 52% Detergent and Soap formulations 14% Chemical 9% Alumina /Metals and mining 6% Pulp and Paper 1% Others (Environmental Protection/ Effluent treatment etc) 18% Global demand for soda ash is growing. At the same time there is an extremely sharp increase in input costs for soda ash manufacturers in all regions. World’s total soda ash demand which at present is at 54.00 Million MT is expected to grow by at least 4 % with more than 50% of it is expected to come from Latin America, India, China and Middle East countries due to a higher expected GDP growth. Consumption of soda ash per person is expected to register healthy rise in the next few years with China leading the rankings with consumption from 10.85 kilograms in 2007 to an expected 12.00 kilograms in 2013. China is likely to add at least 2 Million MT capacities every year on the back of huge infrastructure investments.
The manufacturing and processing costs for producing soda ash from trona are more cost competitive than other manufacturing techniques partly because of the cost associated with procuring the material needed for synthetic production. In addition, tronabased production consumes less energy. The average cost of production per ton of soda ash (before freight and logistics costs) from trona is approximately one-third to one-half the cost per ton of soda ash from synthetic production. The future depends upon soda ash prices. Soda Ash prices fluctuate according to the demand supply situation in the global market, China in particular.
FIXED ASSETS
Tangible Assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Wind Turbine Generators
· Furniture and Fixtures
· Office Equipments
· Vehicles
· Leased Mines
· Salt Works Reservoirs and Pans
Intangible Assets
· Goodwill
· Software
· Trade Mark
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. 61.11 |
|
|
1 |
Rs. 102.53 |
|
Euro |
1 |
Rs. 81.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
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 |
|
54 |
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.