MIRA
INFORM REPORT
|
Report Date : |
27.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
NIRMA LIMITED |
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Registered
Office : |
Nirma House, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
25.02.1980 |
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Com. Reg. No.: |
04-003670 |
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Capital
Investment / Paid-up Capital : |
Rs.1042.800 Millions |
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CIN No.: [Company Identification
No.] |
U24240GJ1980PLC003670 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
AHMN00409D |
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PAN No.: [Permanent Account No.] |
AAACN5350K |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer and Seller of
Synthetic Detergents, Soaps, Chemicals and Allied Products. |
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No. of Employees
: |
Information denied by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Not Available |
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Comments : |
Subject is a well-established and reputed Fast Moving Consumer Goods
(FMCG) company having fine track record. The management has filed the financial ranging from October 2012 to
March 2013 (6 Months). As per available financial (2013), financial position of the company
seems strong. Directors are reported to be experienced and respectable businessmen. Business is active. Trade relations are reported as praiseworthy.
Payments are regular and as per commitments. The company can be considered good 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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
CRISIL |
|
Rating |
Long Term Rating = AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
25.07.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating = A1+ |
|
Rating Explanation |
Strong degree of safety and carry lowest
credit risk. |
|
Date |
25.07.2014 |
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 DENIED BY
|
Name : |
Mr. Shailesh |
|
Designation : |
Accounts Executive |
|
Contact No.: |
91-79-27646565 |
LOCATIONS
|
Registered/ Corporate Office : |
Nirma House, Ashram Road,
Ahmedabad – 380009, Gujarat, India |
|
Tel. No.: |
91-79-27546565 - 74/ 26442187 |
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Fax No.: |
91-79-27546603/ 05/ 01 |
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E-Mail : |
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Website : |
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Factory: |
· Block No. 16/B, Ahmedabad Mehsana Highway, P.O. Mandali, District Mehsana - 382732, Gujarat, India ·
Village Moraiya, Post Chacharwadi Vasna, Near
Modern Denim Bavla Road, Taluka: Sanand, District Ahmedabad - 382213,
Gujarat, India ·
Alindra Detergent Complex, P. O. Alindra, Taluka
Savli, District Baroda - 391775, Gujarat, India ·
Bhavnagar Chemical Complex, P.O. Kalatalav,
District Bhavnagar - 364313, Gujarat, India ·
Wind Farm Project at Survey No. 691, Village
Dhank, Taluka Upleta, District Rajkot, Gujarat, India ·
Nirlife Pharma Complex, Survey No. 358-369,
Village Sachana, Taluka Viramgam, District Ahmedabad - 382150, Gujarat, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr.
Karsanbhai K. Patel |
|
Designation : |
Chairman
|
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|
Name : |
Mr.
Rakesh K. Patel |
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Designation : |
Vice
Chairman |
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Date of Birth/Age: |
18.07.1972 |
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Qualification: |
B.Com., M.B.A.(Marketing) |
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Date of Appointment: |
04.02.1997 |
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|
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|
Name : |
Mr.
Shrenikbhai K. Lalbhai |
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Designation : |
Director |
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Name : |
Mr. Pankaj R. Patel |
|
Designation : |
Director |
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Date of Birth/Age: |
16.03.1953 |
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Qualification: |
Master in Pharmacy |
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Date of Appointment: |
28.10.2006 |
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Name : |
Mr.
Rajendra D. Shah |
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Designation : |
Director |
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Date of Birth/Age: |
29.04.1934 |
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Qualification: |
B.Com, F.C.A. |
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Date of Appointment: |
22.12.1994 |
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|
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|
Name : |
Mr.
Chinubhai R. Shah |
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Designation : |
Director |
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|
Name : |
Mr. Shailesh V. Sonara |
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Designation : |
Directors |
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|
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|
Name : |
Mr. Kaushikbhai
N. Patel |
|
Designation : |
Director |
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|
Name : |
Mr.
Kalpesh A. Patel |
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Designation : |
Executive Director |
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|
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|
Name : |
Mr. Hiren K. Patel |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Paresh Sheth |
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Designation : |
Company Secretary |
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|
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|
Name : |
Mr. Shailesh |
|
Designation : |
Accounts Executive |
MAJOR SHAREHOLDERS
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of
Synthetic Detergents, Soaps, Chemicals and Allied Products. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information denied by management |
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Bankers : |
· Bank of Baroda ·
State Bank of India ·
Bank of India ·
HDFC Bank Limited ·
Credit Lyonnais ·
ANZ Grindlays Bank Limited ·
Axis Bank Limited ·
The Kalupur Commercial Cooperative Bank
Limited |
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Facilities : |
Short Term
Borrowings i. The Short term loans and credit facilities from Banks are secured on parri-passu basis, by first charge, by way of hypothecation of specified stock of raw materials, stock in process, finished goods, other merchandise being movable, book debts, both present and future and by way of second charge on specified fixed assets, both present and future, of the Company. Effective cost of the above bank loan is in the range of 8% to 13% p.a. ii. Outstanding working capital facilities from banks part of cash credit accounts Rs.0.200 Million is secured by lien of fixed deposit of Rs.1.500 Millions and over draft accounts Rs.40.700 Millions is secured by lien of Fixed deposit of Rs.100.000 Millions (P.Y. Working capital facilities from banks part of cash credit accounts, Rs.86.800 Millions is secured by lien of fixed deposit of Rs.110.000 Millions).
iii.
Effective cost of unsecured loan is in range
of 8% to 10% p.a. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Hemanshu Shah and Company Chartered Accountants |
|
Address : |
A/46, 3rd Floor, Nobles,
Opposite Nehru Bridge, Ashram Road, Ahmedabad - 380009, Gujarat, India |
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Tel No.: |
91-79-26584250 |
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Fax No.: |
91-79-26589463 |
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Email : |
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Subsidiaries of the
Company: (wholly owned) : |
Direct Holding · Karnavati Holdings Inc. USA ·
Nirlife Mexico, SA DE C.V ·
Siddhi Vinayak Cement Private Limited Indirect Holding · Searles Valley Minerals Inc. (SVM), USA (Wholly owned subsidiaries of Karnavati Holding Inc. USA). ·
Searles Domestic Water Company LLC ·
Trona Railway Company LLC ·
Searles Valley Minerals Europe ( Wholly owned
by SVM) |
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|
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Associates
Entities: |
· Kargil Holdings Private Limited ·
Uri Holdings Private Limited ·
Leh Holdings Private Limited ·
Banihal Holdings Private Limited ·
Kulgam Holdings Private Limited ·
Nirma Credit and Capital Private Limited ·
Nirma Industries Private Limited ·
Nirma Chemical Works Private Limited ·
Baeurer Infotech Limited ·
Mahuva Port and Infrastructure Private Limited ·
Kanak Castor Products Private Limited ·
Navin Detergent Private Limited ·
Navin Overseas FZC ·
Nirma Education and Research Foundation ·
Nirma University, Nirma Labs ·
Trona Export Terminals LLC, USA ·
FRM Trona Fuels LLC, USA. |
CAPITAL STRUCTURE
After 30.09.2013
Authorised Capital : Rs.1505.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.1005.393
Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
231000000 |
Equity Shares |
Rs.5/- each |
Rs.1155.000 Millions |
|
1000000 |
6% Redeemable Non-Cumulative Non-Convertible Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
250000000 |
6% Redeemable non-Cumulative Non-Convertible Preference Shares |
Re.1/- each |
Rs.250.000 Millions |
|
|
Total |
|
Rs.1505.000
Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
159174866 |
Equity Shares |
Rs.5/- each |
Rs.795.900 Millions |
|
247080232 |
6% Redeemable Non-Cumulative Non-Convertible Preference Shares |
Re.1/- each |
Rs.247.100 Millions |
|
|
Total |
|
Rs.1043.000
Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
159142282 |
Equity Shares |
Rs.5/- each |
Rs.795.700 Millions |
|
247080232 |
6% Redeemable Non-Cumulative Non-Convertible Preference Shares |
Re.1/- each |
Rs.247.100 Millions |
|
|
Total |
|
Rs.1042.800
Millions |
Notes:
i. Company has made allotment of 90998368 equity shares of Rs.5 each on exercising option by the warrant holders at a premium of Rs.40 per share (for share of Rs.10 each). 32584 equity shares of Rs.5 each were kept in abeyance due to court order.
ii. Company has made allotment of 247080232 6% Redeemable Non-Cumulative Non-Convertible preference shares of Rs.1 each at par fully paid up against 1 equity share of Rs.1 each fully paid up held by the shareholders of erstwhile Saurashtra Chemicals Limited on 31.03.2013 consequent upon the amalgamation.
iii.
|
Particulars |
Number of shares |
Rs. In Millions |
|
a) Equity |
|
|
|
Opening Balance |
159142282 |
759.700 |
|
Closing Balance |
159142282 |
759.700 |
|
b) Preference |
|
|
|
Opening Balance |
0.000 |
0.000 |
|
Fresh Issue-allotted pursuant to amalgamation |
247080232 |
247.100 |
|
Closing Balance |
247080232 |
247.100 |
B. Rights, Preferences and Restrictions attached to
class of Shares
Equity Shares
The Company has one class of equity shares having par value of Rs.5 per share. Each member is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the members in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity members are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.
Preference Shares
Preference shares are redeemable at par at the end of five years from the date of allotment i.e. March 31, 2018, but may be redeemed at any time at the discretion of Board of Directors of the Company. These shares carry 6% Non-Cumulative Non-Convertible dividend per annum. The holders of Preference Shares shall in respect of such capital, have rights to vote only on the resolution placed before the Company which directly affects the rights attached to the Preference Shares. The Preference Shares carry a preferential rights in case of dividend. In the event of liquidation, preference shareholders have a preferential right over equity shareholders to be repaid to the extent of capital paid-up and dividend in arrears on such shares.
C. The Company does not
have any holding company.
|
Particulars |
Number of Shares |
% of Holding |
|
Equity Shares |
|
|
|
Smt. Shantaben K. Patel |
23319881 |
14.65% |
|
Banihal Holdings Private Limited |
22937900 |
14.41% |
|
Dr. Karsanbhai K. Patel |
19599510 |
12.32% |
|
Leh Holdings Private Limited |
16443900 |
10.33% |
|
Kargil Holdings Private Limited |
16178700 |
10.17% |
|
Uri Holdings Private Limited |
14521900 |
9.13% |
|
Shri Hirenbhai K. Patel |
13580480 |
8.53% |
|
Shri Rakeshbhai K. Patel |
13094824 |
8.23% |
|
Kulgam Holdings Private Limited |
12024849 |
7.55% |
* Includes Equity shares held as trustee of trust and as member of AOP.
|
Particulars |
Number of Shares |
% of Holding |
|
Preference Shares |
|
|
|
Nirma Chemical Works Private Limited |
87931375 |
35.59% |
|
Nirma Industries Private Limited |
55255300 |
22.36% |
|
Nirma Credit and Capital Private Limited |
45532500 |
18.43% |
|
Nirma Management Services Private Limited |
39200000 |
15.87% |
Details of Shares kept in abeyance due to court orders
|
Particulars |
Number of shares |
Rs. In Millions |
|
Equity shares with voting rights |
32584 |
0.200 |
Shares allotted as fully
paid up pursuant to scheme of arrangement without payment being received in
cash during the period of five years immediately preceding 31.03.2013 being
date of Balance Sheet
|
Particulars |
31.03.2013 |
|
No of Equity shares |
372914 |
|
No of Redeemable non-cumulative non-convertible Preference Shares |
247080232 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 (6 Months) |
30.09.2012 (18 Months) |
31.03.2011 (12 Months) |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1042.800 |
1042.800 |
795.700 |
|
(b) Reserves & Surplus |
28488.100 |
26666.300 |
27524.000 |
|
(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) |
29530.900 |
27709.100 |
28319.700 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
8605.200 |
9091.300 |
5129.400 |
|
(b) Deferred tax liabilities (Net) |
3685.200 |
3458.600 |
2903.400 |
|
(c) Other long term liabilities |
1316.300 |
1159.500 |
926.600 |
|
(d) long-term provisions |
288.900 |
276.900 |
134.300 |
|
Total Non-current
Liabilities (3) |
13895.600 |
13986.300 |
9093.700 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
6783.100 |
4278.200 |
4485.200 |
|
(b) Trade payables |
2470.300 |
2909.500 |
2363.900 |
|
(c) Other current liabilities |
4579.700 |
4770.200 |
1085.100 |
|
(d) Short-term provisions |
73.200 |
68.600 |
27.400 |
|
Total Current
Liabilities (4) |
13906.300 |
12026.500 |
7961.600 |
|
|
|
|
|
|
TOTAL |
57332.800 |
53721.900 |
45375.000 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
20274.500 |
21134.600 |
17969.300 |
|
(ii) Intangible Assets |
356.900 |
503.300 |
169.800 |
|
(iii) Capital work-in-progress |
2723.600 |
2051.100 |
1154.200 |
|
(iv) Intangible assets under development |
0.000 |
55.800 |
0.000 |
|
(b) Non-current Investments |
9537.300 |
9537.300 |
5415.200 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3491.300 |
453.300 |
4420.800 |
|
(e) Other Non-current assets |
65.100 |
28.200 |
13.000 |
|
Total Non-Current
Assets |
36448.700 |
33763.600 |
29142.300 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
220.000 |
0.000 |
|
(b) Inventories |
10452.300 |
10191.100 |
7348.100 |
|
(c) Trade receivables |
5655.200 |
4881.100 |
3799.700 |
|
(d) Cash and cash equivalents |
219.500 |
327.800 |
620.400 |
|
(e) Short-term loans and advances |
4497.300 |
4179.500 |
4434.000 |
|
(f) Other current assets |
59.800 |
158.800 |
30.500 |
|
Total Current
Assets |
20884.100 |
19958.300 |
16232.700 |
|
|
|
|
|
|
TOTAL |
57332.800 |
53721.900 |
45375.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 (6 Months) |
30.09.2012 (18 Months) |
31.03.2011 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
22234.300 |
62315.800 |
31039.900 |
|
|
|
Other Income |
708.600 |
584.900 |
440.100 |
|
|
|
TOTAL (A) |
22942.900 |
62900.700 |
31480.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
8629.000 |
26826.600 |
13816.800 |
|
|
|
Purchases of stock-in-trade |
230.700 |
1039.500 |
831.200 |
|
|
|
Employee benefits expense |
1208.900 |
3215.100 |
1331.400 |
|
|
|
Other expenses |
8664.800 |
23057.400 |
11113.700 |
|
|
|
Exceptional items |
0.000 |
(20.300) |
286.800 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(386.800) |
(883.200) |
(332.800) |
|
|
|
TOTAL (B) |
18346.600 |
53235.100 |
27047.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4596.300 |
9665.600 |
4432.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
737.100 |
1902.400 |
522.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3859.200 |
7763.200 |
3910.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1396.300 |
4258.600 |
3143.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
2462.900 |
3504.600 |
767.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
724.200 |
4115.800 |
27.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
1738.700 |
(611.200) |
740.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
692.100 |
1585.200 |
844.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to Debenture Redemption Reserve |
385.600 |
281.900 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2045.200 |
692.100 |
1585.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1307.100 |
5330.100 |
2304.000 |
|
|
|
Interest |
0.100 |
4.300 |
5.400 |
|
|
|
Commission |
5.100 |
37.800 |
0.000 |
|
|
|
Others |
0.000 |
0.000 |
6.500 |
|
|
TOTAL EARNINGS |
1312.300 |
5372.200 |
2315.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
998.800 |
3768.800 |
2048.200 |
|
|
|
Stores & Spares |
273.100 |
203.200 |
208.900 |
|
|
|
Capital Goods |
66.000 |
638.600 |
5.700 |
|
|
TOTAL IMPORTS |
1337.900 |
4610.600 |
2262.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.93 |
(3.84) |
4.65 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 (6 Months) |
30.09.2012 (18 Months) |
31.03.2011 (12 Months) |
|
PAT / Total Income |
(%) |
7.58
|
(0.97) |
2.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.08
|
5.62 |
2.47 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.46
|
8.33 |
1.98 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.13 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.52
|
0.48 |
0.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.50
|
1.66 |
2.04 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 (12 Months) |
30.09.2012 (18 Months) |
31.03.2013 (6 Months) |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
795.700 |
1042.800 |
1042.800 |
|
Reserves & Surplus |
27524.000 |
26666.300 |
28488.100 |
|
Net
worth |
28319.700 |
27709.100 |
29530.900 |
|
|
|
|
|
|
long-term borrowings |
5129.400 |
9091.300 |
8605.200 |
|
Short term borrowings |
4485.200 |
4278.200 |
6783.100 |
|
Total
borrowings |
9614.600 |
13369.500 |
15388.300 |
|
Debt/Equity
ratio |
0.340 |
0.482 |
0.521 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 (12 Months) |
30.09.2012 (18 Months) |
31.03.2013 (6 Months) |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
31,039.900 |
62,315.800 |
22,234.300 |
|
|
|
100.760 |
(64.320) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 (12 Months) |
30.09.2012 (18 Months) |
31.03.2013 (6 Months) |
|
|
Rs. In
Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
31,039.900 |
62,315.800 |
22,234.300 |
|
Profit |
740.400 |
-611.200 |
1,738.700 |
|
|
2.39% |
-0.98% |
7.82% |
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 |
No |
|
8] |
No. of employees |
No |
|
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 |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
No |
|
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 LOANS:
|
Particulars |
31.03.2013 Rs. In Millions |
30.09.2012 Rs. In Millions |
|
Long Term Borrowings |
|
|
|
Debentures |
1528.900 |
1528.900 |
|
Deferred sales tax liability |
0.400 |
0.400 |
|
Inter Corporate Deposit from Related Parties |
5538.000 |
3700.000 |
|
Short Term Borrowings |
|
|
|
Loan from Directors |
543.500 |
1443.200 |
|
Commercial Paper |
383.200 |
0.000 |
|
Inter corporate deposits from related parties |
479.200 |
1018.900 |
|
Total |
8473.200 |
7691.400 |
FINANCE
The Company continues to efficiently manage its resources to achieve cost effectiveness and maintains its financial risk profile over the medium term backed by the healthy cash generation. Nirma’s admirable credit profile is reflected in its relationship with all the lenders. To meet additional working capital requirements, the company has enhanced its credit limits from the existing Rs.10000.000 Millions to Rs.14000.000 Millions in May 2013. Additionally Rs.3000.000 Millions were raised through issue of Rated, Secured, Unlisted, Redeemable, Non-Convertible, Non-Cumulative Taxable Debentures on private placement basis for general corporate purpose. As on March 31, 2013, Company’s total debt was at Rs.18312.000 Millions while gross debt to equity ratio including short term a
nd long term debt was 0.62.
BUSINESS OVERVIEW
The financial year was for the period of 6 months commencing from October 1, 2012 to March 31, 2013 as against 18 months of the previous year. Consequently the figures for current financial period are not comparable with those of the previous period.
OVERVIEW
The economic growth in FY 2012-13 declined across almost all the sectors mainly on account of high inflation, wide fiscal deficit and unfavorable interest rate. The performance of the company is particularly noteworthy when view in backdrop of an extremely challenging business environment and competition.
On standalone basis, the Company recorded Gross Revenue from Operations of Rs.24580.000 Millions for the six months period March 31, 2013 registering a moderate increase over the previous period on annualized basis. The earning before finance cost, depreciation and amortization expense (EBITDA) was at Rs.4600.000 Millions registering growth of nearly 43% over the previous period on annualized basis. The total operating expenses including finance cost was at Rs.21430.000 Millions. As a percentage of gross sale, it was 87%. The Company registered net profit of Rs.1740.000 Millions for the six months period. The networth of the Company stood at Rs.29530.000 Millions as of March 31, 2013.
CONTINGENT
LIABILITIES:
|
Particular |
31.03.2013 (6 Months) (Rs.
in Millions) |
30.09.2012 (18 Months) (Rs.
in Millions) |
|
|
(A) |
Claims against the
Company not acknowledged as debts |
|
|
|
|
(I) For custom duty |
57.800 |
59.700 |
|
|
(II) For direct tax (*) |
14560.000 |
12940.600 |
|
|
(III) For sales tax |
593.000 |
571.200 |
|
|
(IV) For excise duty and service tax |
1561.300 |
1450.800 |
|
|
[appeals decided in favour of the Company Rs.855.900 Millions (P.Y. Rs.855.900 Millions)] |
|
|
|
|
(V) Disputed liabilities for Custom duty and Excise duty of the Demerged Undertaking, as per the Financial Statement of Core Health Care Limited (CHL) as certified by Statutory Auditor of CHL |
45.000 |
45.000 |
|
|
(VI) Others This includes the claims not acknowledged as debt of Rs. 47.100 Millions (p.y.Rs.47.100 Millions)of the Demerged Undertaking, as per the Financial Statement of CHL as certified by Statutory Auditor of CHL |
426.600 |
403.300 |
|
|
|
17243.700 |
15470.600 |
|
|
(*) Income - tax department has raised demands by making various additions/ disallowances. The Company is contesting demand, in appeals, at various levels. However, based on legal advice, the Company does not expect any liability in this regard |
|
|
|
(B) |
Estimated amount of contracts, remaining to be executed, on capital account (Net of payment) |
319.600 |
355.900 |
|
(C) |
For letters of credit |
586.00 |
506.900 |
|
(D) |
For bank guarantee |
628.500 |
542.200 |
|
(E) |
Company has given Corporate Guarantee in favour of lenders for securing loans extended to Karnavati Holdings Inc. and its subsidiaries and Siddhi Vinayak Cement Private Limited (wholly owned subsidiaries) |
1565.400 |
2242.400 |
|
(F) |
Any liability and / or claim pertaining to Demerged Undertaking, for nonavailability of information / record from CHL, which may arise in future is not disclosed. |
|
|
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10451080 |
23/08/2013 |
3,000,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Building, Ground Floor, 17, R.Kamani Marg, Ba Llard Estate, Mumbai - 400001, Maharashtra, India |
B84188416 |
|
2 |
10124693 |
15/10/2008 |
5,561,400,000.00 |
The Hongkong And Shanghai Banking Corporation Limited |
2nd Floor, Shiv Building, Plot No. 139-140b, Western Express Highway, Sahar Road Junc. Villeparle (East), Mumbai - 400057, Maharashtra, India |
A47466644 |
|
3 |
90103337 |
30/01/2004 |
60,000,000.00 |
Uco Bank |
Mg Road, Porbandar - 360575, Gujarat, India |
- |
|
4 |
80018848 |
14/05/2013 * |
14,000,000,000.00 |
Bank Of Baroda |
Corporate Financial Services Branch, First Floor, Bob Towers, Near Law Garden, Ellisbridge, Ahmedabad - 380006, Gujarat, India |
B76230440 |
*Date of modification Charges
FIXED ASSETS:
· Freehold Land
Leasehold
Land (Permanent)
Building
Plant
and Equipment’s
Furniture
and fittings
Office
Equipment’s
Vehicles
Goodwill
Goodwill
on Amalgamation
Trademarks
Licence
Fees
Computer
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.50 |
|
|
1 |
Rs.100.33 |
|
Euro |
1 |
Rs.79.91 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
67 |
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.