MIRA
INFORM REPORT
|
Report Date : |
04.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
KALYANPUR CEMENTS LIMITED (w.e.f. 9th March, 1988) |
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Formerly Known
As : |
KALYANPUR LIME AND CEMENT WORKS LIMITED |
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Registered
Office : |
2 and 3, Dr. Rajendra Prasad Sarani (Earlier Known as 2 and 3) Clive
Row, Kolkata – 700001, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
11.08.1937 |
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Com. Reg. No.: |
009086 |
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Capital
Investment / Paid-up Capital : |
Rs.278.714 Millions |
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CIN No.: [Company Identification
No.] |
L26942WB1937PLC009086 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Cement. |
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No. of Employees
: |
1013 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (15) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but delayed |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. There appears huge accumulated losses recorded by the company, which
has eroded the net worth of the company. Profitability of the company seems
to be under pressure. Business is active. Payment terms are slow and delayed. The company can be considered for business dealings on safe and
secured 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
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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
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus on providing payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON CO-OPERATIVE.
Contact No.: 91-612-2221557
LOCATIONS
|
Registered Office : |
2 and 3, Dr. Rajendra Prasad Sarani (Earlier Known as 2 and 3) Clive
Row, Kolkata – 700001, West Bengal, India |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Head/ Corporate Office : |
Maurya Centre, 1 Frazer Road, Patna – 800001, Bihar, India |
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Factory : |
P. O. Banjari, District Rohtas – 821303, Bihar, India |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Satyadeva P. Sinha |
|
Designation : |
Executive Director |
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Name : |
Mr. Shailendra P. Sinha |
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Designation : |
Managing Director |
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Name : |
Mr. Anand P. Sinha |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Ashok Kumar Mallick (w.e.f. 03.08.2012) |
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Designation : |
Director |
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Name : |
Mr. D. N. Bhandari |
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Designation : |
Director |
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Name : |
Mr. B. C. Srivastava |
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Designation : |
Director |
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Name : |
Dr. K. C. Varshney |
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Designation : |
Director |
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Name : |
Mr. Arun Sharma (upto 09.05.2012) |
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Designation : |
Director |
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Name : |
Mr. Mahendra Lodha |
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Designation : |
Director |
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Name : |
Mr. K. Balasubramanian (upto 24.05.2012) |
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Designation : |
Director |
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Name : |
Mr. Dhananjay Lodha (upto 20.09.2012) |
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Designation : |
Director |
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Name : |
Mr. Bimlanand Jha (upto 02.08.2012) |
|
Designation : |
Director |
KEY EXECUTIVES
|
Audit Committee : |
· Mr. D, N. Bhandari, Chairman · Dr. K.C Varshney · Mr. Mahendra Lodha (w,e,f. 1 06.2012) · Mr. Dhananjay Lodha (Upto 31 05.2012) · Mr. Arun Sharma (Upto 09.05,2012) ·
Mr. B. C. Srivastava |
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Share Transfer and Shareholders' Grievance Redressal Committee : |
· Mr. D. N. Bhandari, Chairman · Mr. Satyadeva P. Sinha · Mr. Shailendra P. Sinha |
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Senior Management |
· Mr. Siddharth P Sinha, Executive Director · Mr. S. B. Prasad, President (Management Audit) · Mr. P K Chaubey, President (Finance) and Company Secretary · Mr. Falsal Alam, President (Sales and Marketing) · Mr. M. Sinha, Senior Vice-President (Works) · Mr. S. C. Banka, Group Head - HR |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2013)
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
11325342 |
53.30 |
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|
11325342 |
53.30 |
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|
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|
Total
shareholding of Promoter and Promoter Group (A) |
11325342 |
53.30 |
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(B) Public
Shareholding |
|
|
|
|
|
|
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|
3550 |
0.02 |
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|
3251242 |
15.30 |
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|
24417 |
0.11 |
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|
9735 |
0.05 |
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|
3288944 |
15.48 |
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|
6586331 |
31.00 |
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|
48437 |
0.23 |
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|
6634768 |
31.22 |
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Total Public
shareholding (B) |
9923712 |
46.70 |
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Total (A)+(B) |
21249054 |
100.00 |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total
(A)+(B)+(C) |
21249054 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cement. |
PRODUCTION STATUS (AS ON 31.03.2013)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Cement |
Lac Tons |
NA |
10.00 |
7.38 |
GENERAL INFORMATION
|
No. of Employees : |
1013 (Approximately) |
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Bankers : |
· Allahabad Bank · Reserve Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M. Mukherjee and Company Chartered Accountants |
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Internal
Auditors : |
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Name : |
B. Gupta and Company Chartered Accountants |
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Cost Auditors : |
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Name : |
Mitra, Bose and Associates Chartered Accountants |
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Enterprise under
common control: |
· Maurya Management Private Limited |
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Significant
Interest in the Company (Holding 25.51% in the Company's Share Capital) : |
· Elate Investments and Holding Private Limited |
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Strategic Investor
under the Scheme of Compromise approved by the Hon'ble Calcutta High Court,
having significant voting power (48%) of the Company. |
·
Vivid Colors Private Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4411766 |
0.1% Cumulative Redeemable Preference Shares |
Rs.15/- each |
Rs.66.176 Millions |
|
20082351 |
Unclassified Preference Shares |
Rs.10/- each |
Rs.200.824 Millions |
|
70000000 |
Equity Shares |
Rs.10/- each |
Rs.700.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.967.000
Millions |
Issued and Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4411766 |
0.1% Cumulative Redeemable Preference Shares |
Rs.15/- each |
Rs.66.176
Millions |
|
21267965 |
Equity Shares |
Rs.10/- each |
Rs.212.680
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.278.856 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4411766 |
0.1% Cumulative Redeemable Preference Shares |
Rs.15/- each |
Rs.66.176
Millions |
|
21249054 |
Equity Shares |
Rs.10/- each |
Rs.212.491
Millions |
|
|
Add: Forfeited shares |
|
Rs.0.047
Million |
|
|
|
|
|
|
|
Total |
|
Rs.278.714 Millions |
Redemption of
Preference Shares: In terms of the Scheme of Compromise approved by the Hon'ble
Calcutta High Court, the Preference shares were to be redeemed in three annual
installments i.e. 2009-10, 2010-11 and 2011-12 @ Rs.22.100 Millions every year.
The Companies Act, 1956, however, provides that the Preference shares can be
redeemed either out of the profit available for distribution of dividend or out
of the fresh proceeds of shares issued for the said purpose. Since the company
did not either have profit available for distribution of dividend or any fresh
proceed of shares, a legal opinion was obtained from MIs. Khaitan and Company,
Advocates and Solicitors, Kolkata whether the preference shares could be
redeemed by the company. They have opined that the Preference shares of the
company could not be redeemed under the present circumstances.
There is no change
in the number of shares at the end of the reporting period as compared to the
same at the beginning of the reporting period.
The Company does not have any holding company or ultimate holding
company.
The details of
shareholding exceeding 5% at the beginning and end of the reporting periods are
as under:
|
Name of Share holder |
31.03.2013 |
|
|
|
No of shares |
Holding % |
|
|
|
|
|
Maurya Management Private Limited |
1125342 |
5.31 |
|
Asset Reconstruction Company (India) Limited
|
3079000 |
14.49 |
|
Etate Investments and Holding (Private)
Limited |
5420000 |
25.51 |
|
Vivid Colors Private Limited |
10200000 |
48.00 |
|
Total |
19824342 |
93.31 |
The Preference
Shares carry the preferential rights as provided in the Companies Act, 1956.
There is no restriction on distribution of dividends and repayment of Capital with
respect to any shares and the same would be governed by the provisions of the
Companies Act.1956.
No Shares have been
reserved for issue under options and contracts / commitments for the sale of
shares I disinvestments.
No shares have been
allotted as fully paid up pursuant to contracts without payment being received
in cash,
No bonus shares have
been issued and no shares have been bought back,
No convertible
securities are outstanding at the end of the reporting period nor any calls are
unpaid.
The Company proposes
to raise Equity Share Capital of Rs.106.300 Millions on Rights Basis and has
filed a Draft Letter of Offer with Securities and Exchange Board of India
(SEBI).
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 |
278.714 |
278.714 |
278.714 |
|
(b) Reserves & Surplus |
(2603.012) |
(2249.695) |
(1639.944) |
|
(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) |
(2324.298) |
(1970.981) |
(1361.230) |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
771.638 |
997.038 |
1114.778 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
179.366 |
239.041 |
206.948 |
|
(d) long-term provisions |
167.742 |
156.618 |
148.999 |
|
Total Non-current Liabilities (3) |
1118.746 |
1392.697 |
1470.725 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
106.297 |
37.520 |
45.077 |
|
(b) Trade payables |
646.700 |
472.797 |
357.829 |
|
(c) Other current
liabilities |
1712.964 |
1311.736 |
959.870 |
|
(d) Short-term provisions |
14.041 |
11.264 |
12.747 |
|
Total Current Liabilities (4) |
2480.002 |
1833.317 |
1375.523 |
|
|
|
|
|
|
TOTAL |
1274.450 |
1255.033 |
1485.018 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
704.611 |
788.117 |
886.272 |
|
(ii) Intangible Assets |
0.139 |
0.191 |
0.246 |
|
(iii) Capital
work-in-progress |
1.672 |
1.174 |
19.083 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
67.966 |
66.089 |
60.232 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
774.388 |
855.571 |
965.833 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
264.830 |
279.043 |
324.095 |
|
(c) Trade receivables |
42.257 |
29.215 |
40.728 |
|
(d) Cash and cash
equivalents |
38.871 |
39.137 |
65.411 |
|
(e) Short-term loans and
advances |
143.784 |
42.273 |
75.757 |
|
(f) Other current assets |
10.320 |
9.794 |
13.194 |
|
Total Current Assets |
500.062 |
399.462 |
519.185 |
|
|
|
|
|
|
TOTAL |
1274.450 |
1255.033 |
1485.018 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
2590.647 |
1904.196 |
2365.778 |
|
|
|
Other Income |
160.472 |
242.274 |
9.913 |
|
|
|
TOTAL (A) |
2751.119 |
2146.470 |
2375.691 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
430.946 |
353.225 |
346.612 |
|
|
|
Other Manufacturing Expenses |
1635.272 |
1314.729 |
1284.384 |
|
|
|
Changes in Inventories of Finished Goods, Work in progress and stock
in trade |
35.110 |
38.352 |
(51.006) |
|
|
|
Employee Benefits Expenses |
331.470 |
308.195 |
306.537 |
|
|
|
Freight and Selling Expenses |
345.329 |
287.920 |
431.013 |
|
|
|
Other Expenses |
68.708 |
55.847 |
63.557 |
|
|
|
Extraordinary Items |
0.000 |
138.846 |
(875.471) |
|
|
|
TOTAL (B) |
2846.835 |
2497.114 |
1505.626 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(95.716) |
(350.644) |
870.065 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
158.259 |
112.391 |
29.979 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(253.975) |
(463.035) |
840.086 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
99.342 |
146.711 |
138.064 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(353.317) |
(609.746) |
702.022 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.005 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(353.317) |
(609.751) |
702.022 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Component and Spares Parts |
11.463 |
1.342 |
20.086 |
|
|
TOTAL IMPORTS |
11.463 |
1.342 |
20.086 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(16.63) |
(28.70) |
33.04 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(12.84)
|
(28.41) |
29.55 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(13.64)
|
(32.02) |
29.67 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(27.76)
|
(48.63) |
47.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.31 |
(0.52) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(0.38)
|
(0.52) |
(0.85) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.20
|
0.22 |
0.38 |
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 |
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 |
No |
|
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 |
No |
UNSECURED LOANS
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Long Term
Borrowings |
|
|
|
Deferred Payment Liabilities - Deferred Sales Tax |
70.016 |
120.016 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Other Loans and advances |
67.047 |
34.500 |
|
|
|
|
|
Total |
137.063 |
154.516 |
PRODUCTION
Inspite of extremely challenging conditions, Clinker production
registered highest ever capacity utilization of 92% as against 77% last year. Even in Cement production. capacity
utilization was higher at 74% against 63% last year, The operation of Clinker HPGR was affected in
the third quarter on account of breakdown of the steel cord belt of the Bucket Elevator which had to be
imported on basis, but for which Company could have achieved highest ever capacity utilization in
Cement also. The lower additive consumption due to inadequate quality of coal also
contributed to shortfall in production.
FINANCIAL PERFORMANCE
The downturn in the economy continued for the third successive year with
performance in all sectors lower than last year. Industrial growth slumped
further to 3.1 % against 3.5 % last year. Service sector
growth was 6.6 % against 8.6% last year. Agricultural production was also
lower. As a result, GDP growth was lowest in a decade at 5% against 6.9% last
year. With Reserve Bank of India continuing with a tight monetary policy,
keeping borrowing cost high and with Govt. spending failing to lake off in a
significant way in view of the widening current account deficit, the sagging
demand failed to receive a fillip.
FINANCE
The huge overcapacity in cement with subdued kept the markets
oversupplied and prompted long distance cement movement far away from natural
markets inspite of high freight. Prices remained extremely volatile, as
increase in cement price in the first quarter of 2012-13 following hike In
Excise rates and freight could not be sustained in view of poor demand and
increased competition, as a result of which prices declined In the 2nd and 3rd
quarter and only marginally improved In the final quarter. The Company
experienced severe working capital constraints on account of higher operating
cost and slow offtake As a result of the slowdown and inability to pass on the
Increased cost, the Company incurred losses, which were however lower compared
to last year. Industrial power tariff In Bihar is amongst highest in the
country and is more expensive approximately by Rs.3 per KWH as compared to the
Captive Power Generation Cost of other Cement Companies which has incidence of
over Rs.200.000 Millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure
and developments
Indian Cement Industry made rapid progress particularly after withdrawal
of licensing in 1991 and stands today as the second largest cement producer in
the world with an estimated capacity of 350
million tonnes as on 31st March, 2013, though no firm data on
capacity, production and consumption of cement for 2012-13, is available with
the Company in view of the embargo placed by tile Competition Commission of
India on circulation of data by the Cement Manufacturers Association. Led by
the real estate boom and Govt. spending on Infrastructure, demand for cement
during the period 2004-05 till 2008-09 grew at a CAGR of 9.23 % even while
capacity addition was limited to CAGR of 5,6 % . With capacity addition limited
and demand continuing to grow, supply constraints surfaced and Cement Industry
operated at near capacity levels in 2006-07 at 96 % Increased pricing power of
the Industry led to healthy growth in profitability from 2005 till 2009
Encouraged by improved economic outlook, buoyant demand conditions and strong
profits, the Industry embarked on capacity enhancement 108 million tonnes were
added in a short period of 4 years from 2007 ti!1 2011 , which was equivalent
to the capacity added in preceding 15 years. Meanwhile, infusion of large doses
of liquidity Into the economy to push growth which dropped to 6 75 % in 2008-09
and drop in farm output led to strong inflationary pressures In the economy, as
a result of which Govt resorted to monetary tightening from March'201 0 by
rolling back fiscal stimulus to curb inflation, This adversely affected demand
growth and completely reversed the demand -supply balance, Thus, while
production capacity grew at CAGR of 14,8 % between 2008 -11, consumption grew
at a GAGR of 8.6 % during the same period, creating huge oversupply. Thus, with
infrastructure spending having slowed down considerably, Cement Industry has
been left with large unutilized capacity. Capacity growth since then has slowed
down with only 2 % growth in 2011-12 over the same period last year and the
estimated growth in 2012-13 is also around 3 %. Meanwhile, with the Govt.
persisting with its tight monetary policy for the 3rd successive
year, resulting in subdued demand coupled with the significant hike In
operating costs, Cement Industry has been passing through one of its most
challenging period in its history.
OUTLOOK
High interest
rates have impeded growth in Construction sector. A correction of interest rate
would lead to reversal of the current situation of low demand. Inflationary
pressures in the economy, which prompted the Govt. to initiate monetary
tightening, has further moderated, Accordingly, repo rate has been gradually
reduced to 7.25 % from 8 % last year and RBI may take similar measures in the
coming period to re-infuse liquidity in the economy The Govt. has adopted a
multipronged strategy to address the issue of low investment in infrastructure
viz. Raising fund for infrastructure, Promote housing projects, which accounts
for 64 % of total cement consumption in the country and promote Savings which
fell to 30 % from 36 8 % . Apart from raising funds through infrastructure debt
funds and issue of tax free bonds, assistance of World Bank and Asian
Development Bank is being taken to develop infrastructure projects in North
East. A Regulatory Authority for the road sector is being constituted to
expedite infrastructure development, An Urban Housing Fund is being set up to
promote Housing Projects. A Cabinet Committee on Investment has also been set
up to fast track infrastructure projects. Thus, with the selling up of
mechanism at highest level to closely monitor and remove bottlenecks in the
implementation of road projects, infrastructure development is expected to look
up and improve consumption growth.
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10141569 |
21/11/2008 |
1,172,890,000.00 |
IDBI Trusteeship
Services Limited |
Asian Bldg., Ground
Floor, 17, R. Kamani Marg, Ballard Estate,, Mumbai- 400 001., Maharashtra -
400001, India |
A52099603 |
|
2 |
80066386 |
04/10/1991 |
114,800,000.00 |
Industrial
Finance Corporation of India |
Bank of Baroda Building,
No. 16, Sansad Marg, New Delhi, Delhi - 110001, India |
- |
|
3 |
80066385 |
09/01/2003 * |
192,000,000.00 |
Allahabad Bank |
Main Branch,
Bailey Road,, , Patna, Bihar - 800001, India |
|
* Date of charge modification
FIXED ASSETS:
· Land
· Plant and Machinery
· New Building Factory
· Railway Siding
· Furniture and Fittings
· Motor Cars
· Roads and Bridges
· Office Equipments
· Electrical Equipments
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.48 |
|
|
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
|
15 |
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.