MIRA
INFORM REPORT
|
Report Date : |
11.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
PANAMA PETROCHEM LIMITED |
|
|
|
|
Registered
Office : |
Plot No. 3303, GIDC Estate, Ankleshwar – 393002, |
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|
Country : |
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|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
09.03.1982 |
|
|
|
|
Com. Reg. No.: |
04-005062 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.86.075 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L23209GJ1982PLC005062 |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
The company is engaged
in the manufacture of specialty petroleum products for diverse user
industries like printing, textiles, rubber, pharmaceuticals, cosmetics, power
and other industrial oil. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (54) |
|
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 |
|
Maximum Credit Limit : |
USD 9279000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
Comments : |
Subject is a well-established company having fine track record. There appears dip in profit of the company during the financial year
2013. However, the rating reflects diverse product portfolio marked by wide
customer base and favorable capital structure of the company with low
leverage. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry
retained its status as the favourable venture capital investors in 2013.
Pakistan has temporarily banned gold imports for the second time in six months,
as it tries to stem smuggling into India. India’s import duty on gold is 10 %
and curbs on purchases have dried up legal imports into what used to be the
world’s biggest bullion buyers. The World Gold Council puts the amount smuggled
into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed
that unclaimed bank deposits estimated to be about Rs 35000 mn be used for
education and awareness among depositors. According to the plan, deposits
that have not been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
January 08, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
January 08, 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
31-03-2012.
LOCATIONS
|
Registered Office : |
Plot No. 3303, GIDC Industrial Estate, Ankleshwar – 393002, Gujarat,
India |
|
Tel. No.: |
91-2646-221068, 250281 |
|
Fax No.: |
91-2646-250281 |
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E-Mail : |
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|
Website : |
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Corporate Office : |
401, Aza House, 24, Turner Road, Next to Andhra Bank, Bandra (West),
Mumbai – 400050, Maharashtra, India |
|
Tel. No.: |
91-22-42177777 |
|
Fax No.: |
91-22-42177788 |
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E-Mail : |
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|
Plants : |
Located At: ·
Ankleshwar ·
Daman ·
Taloja ·
Dahej |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Amirali E. Rayani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Amin A. Rayani |
|
Designation : |
Managing Director and CEO |
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|
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|
Name : |
Mr. Samir A. Rayani |
|
Designation : |
Whole-Time Director |
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|
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|
Name : |
Mr. Dilip S. Phatarphekar |
|
Designation : |
Independent Director |
|
Address: |
B/502,Surya
Apartments, 53, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India |
|
Date of Birth : |
24.01.1938 |
|
Qualification : |
B.Sc. |
|
|
|
|
Name : |
Mr. Madan Mohan Jain |
|
Designation : |
Independent Director |
|
Address: |
422, Shivkala
Apartments, Plot No. D-19, Sector 51, Noida, Uttar Pradesh, India |
|
Date of Birth : |
01.03.1944 |
|
Qualification : |
B.A. ,LL.B. |
|
|
|
|
Name : |
Mr. Mukesh T. Mehta |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Gayatri Sharma |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.012.2013
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
574300 |
9.67 |
|
|
288346 |
4.86 |
|
|
2921179 |
49.19 |
|
|
2921179 |
49.19 |
|
|
3783825 |
63.71 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3783825 |
63.71 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
13800 |
0.23 |
|
|
300 |
0.01 |
|
|
14100 |
0.24 |
|
|
|
|
|
|
117730 |
1.98 |
|
|
|
|
|
|
999432 |
16.83 |
|
|
943350 |
15.88 |
|
|
80313 |
1.35 |
|
|
78266 |
1.32 |
|
|
2047 |
0.03 |
|
|
2140825 |
36.05 |
|
Total Public shareholding (B) |
2154925 |
36.29 |
|
Total (A)+(B) |
5938750 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
2457345 |
0.00 |
|
|
2457345 |
0.00 |
|
Total (A)+(B)+(C) |
8396095 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged
in the manufacture of specialty petroleum products for diverse user
industries like printing, textiles, rubber, pharmaceuticals, cosmetics, power
and other industrial oil. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
¨ Indian Bank ¨ D C B Limited ¨ IDBI Bank ¨ YES Bank ¨ HSBC Bank ¨ Standard
Chartered Bank ¨ HDFC Bank ¨ Citi Bank ¨ DBS Bank Limited |
|||||||||||||||
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|
|||||||||||||||
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Facilities : |
NOTE: SHORT TERM
BORROWINGS Cash credit from
banks is secured against the hypothecation of Stocks, Book debts and Plant
and Machineries (both present and future), Pledge of Fixed Deposit Receipts,
Further secured by Equitable Mortgages of Company’s present Immoveable
Property situated at Daman, Marol industrial estate, property of group
companies situated at Navi Mumbai, and property belonging to the Directors.
The cash credit is repayable on demand and carried an interest rate of 12% to
16% p.a. |
|
Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Bhuta Shah and Company Chartered Accountants |
|
Address : |
Mumbai,
Maharashtra, India |
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|
|
|
Enterprises owned or significantly
influenced by key management personnel or their relatives |
v Anirudh
Distributors Private Limited v Ittefaq Ice and
Cold Storage Company Private Limited v Panama Builders
and Developers Private Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25550000 |
Equity Shares |
Rs.10/- each |
Rs.255.500 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8607570 |
Equity Shares |
Rs.10/- each |
Rs.86.075 Millions |
|
|
|
|
|
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 |
86.075 |
86.193 |
58.402 |
|
(b) Reserves & Surplus |
2233.867 |
2156.541 |
1324.208 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
(d) Share capital suspense |
0.000 |
0.000 |
3.218 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2319.942 |
2242.734 |
1385.828 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
22.084 |
5.525 |
9.176 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
22.084 |
5.525 |
9.176 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
218.989 |
104.871 |
71.217 |
|
(b) Trade payables |
1607.664 |
2482.041 |
1770.940 |
|
(c) Other current
liabilities |
10.612 |
60.789 |
139.267 |
|
(d) Short-term provisions |
40.910 |
20.381 |
44.248 |
|
Total Current Liabilities (4) |
1878.175 |
2668.082 |
2025.672 |
|
|
|
|
|
|
TOTAL |
4220.201 |
4916.341 |
3420.676 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
729.702 |
577.703 |
573.796 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.010 |
|
(iii) Capital
work-in-progress |
0.000 |
34.453 |
8.401 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
270.709 |
0.334 |
0.334 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3.048 |
100.659 |
78.905 |
|
(e) Other Non-current assets |
8.818 |
8.811 |
8.817 |
|
Total Non-Current Assets |
1012.277 |
721.960 |
670.263 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1278.646 |
1482.800 |
1505.376 |
|
(c) Trade receivables |
1190.266 |
1038.892 |
906.971 |
|
(d) Cash and cash equivalents |
543.461 |
1544.875 |
197.502 |
|
(e) Short-term loans and
advances |
190.456 |
116.966 |
137.039 |
|
(f) Other current assets |
5.095 |
10.848 |
3.525 |
|
Total Current Assets |
3207.924 |
4194.381 |
2750.413 |
|
|
|
|
|
|
TOTAL |
4220.201 |
4916.341 |
3420.676 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6347.496 |
5842.222 |
4643.734 |
|
|
|
Other Income |
23.264 |
47.107 |
39.826 |
|
|
|
TOTAL |
6370.760 |
5889.329 |
4683.560 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
5567.476 |
4937.535 |
3663.475 |
|
|
|
Purchase of traded goods |
207.264 |
166.968 |
166.864 |
|
|
|
(Increase)/decrease in inventories of finished goods and Traded goods |
8.745 |
17.178 |
13.961 |
|
|
|
Employee benefits expense |
31.867 |
31.886 |
22.607 |
|
|
|
Other expenses |
319.074 |
252.868 |
237.253 |
|
|
|
TOTAL |
6134.426 |
5406.435 |
4104.160 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
236.334 |
482.894 |
579.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
84.632 |
78.979 |
53.363 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
151.702 |
403.915 |
526.037 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
22.311 |
10.665 |
23.364 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
129.391 |
393.250 |
502.673 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
10.580 |
86.943 |
134.618 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
118.811 |
306.307 |
368.055 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1067.885 |
856.578 |
558.915 |
|
|
|
|
|
|
|
|
|
Add |
BALANCE
TRANSFERRED PURSUANT TO SCHEME OF AMALGAMATION |
0.000 |
0.000 |
2.222 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend of previous year |
0.000 |
12.287 |
0.000 |
|
|
|
Tax on dividend
of previous year |
0.000 |
1.993 |
0.000 |
|
|
|
Interim equity dividend |
0.000 |
25.858 |
0.000 |
|
|
|
Tax on interim equity dividend |
0.000 |
4.195 |
0.000 |
|
|
|
Proposed final equity dividend |
34.430 |
17.239 |
30.810 |
|
|
|
Tax on proposed
final equity dividend |
5.585 |
2.797 |
4.998 |
|
|
|
Transfer to
capital redemption reserve on buy back of shares |
0.118 |
0.000 |
0.000 |
|
|
|
Transfer to
general reserve |
11.881 |
30.631 |
36.806 |
|
|
BALANCE CARRIED
TO THE B/S |
1134.682 |
1067.885 |
856.578 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export at F.O.B Value |
2214.960 |
2339.784 |
1597.071 |
|
|
TOTAL EARNINGS |
2214.960 |
2339.784 |
1597.071 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials (Includes Goods in Transit) |
4168.631 |
3996.721 |
3554.08 |
|
|
|
Finished Goods |
159.098 |
114.992 |
103.201 |
|
|
|
Capital Goods |
0.000 |
1.858 |
2.207 |
|
|
TOTAL IMPORTS |
4327.729 |
4113.571 |
3659.488 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
13.78 |
38.87 |
63.02 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.87
|
5.20 |
7.85 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.04
|
6.73 |
10.82 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.27
|
8.05 |
14.73 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.17 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.09
|
0.05 |
0.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.71
|
1.57 |
1.36 |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10315056 |
17/10/2011 |
1,300,000,000.00 |
Indian Bank |
Mandvi Branch, 1st Floor, Kanmoor House, 281/287, |
B24287997 |
|
2 |
10315058 |
17/10/2011 |
3,740,000,000.00 |
Indian Bank & 8 Others |
Mandvi Branch, 1st Floor, Kanmoor House, 281/287, |
B24289894 |
|
3 |
10310395 |
07/04/2012 * |
400,000,000.00 |
DBS BANK LIMITED |
221, Fort House, 3rd Floor, D.N. Road, Fort, Mumbai, Maharashtra -
400001, INDIA |
B38363321 |
|
4 |
10277662 |
11/03/2011 |
350,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005,
INDIA |
B09389685 |
|
5 |
10215379 |
23/04/2010 |
190,000,000.00 |
CITIBANK N.A. |
TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BANDRA KURLA COMPLEX,
BANDRA (E), MUMBAI, Maharashtra |
A83781997 |
|
6 |
10177511 |
12/04/2011 * |
250,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD,
WORLI, MUMBAI, Maharashtra - 400018,
INDIA |
B13470794 |
|
7 |
10091560 |
27/12/2007 |
262,500,000.00 |
DEVELOPMENT CREDIT BANK LIMITED |
301,TRADE PLAZA, 414,VEER SAVARKAR MARG, PRABHADEVI , BR.8, RAJA
BAHADUR MANSION,AMBALAL DOSHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA |
A29237120 |
|
8 |
10091578 |
30/06/2009 * |
250,000,000.00 |
The Hongkong and Shanghai Banking Corporation Limited |
52/60, Mahatma Gandhi Road,, Fort, Mumbai, Maharashtra - 400001, INDIA
|
A65830259 |
|
9 |
10031489 |
12/12/2007 * |
200,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra
- 400013, INDIA |
A32330011 |
|
10 |
10012479 |
29/08/2011 * |
520,000,000.00 |
STANDARD CHARTERED BANK |
Abhijeet II Ground Floor, Near Mithakali Six Roads, Ahmedabad, Gujarat
- 380006, INDIA |
B20948915 |
* Date of charge modification
CORPORATE INFORMATION
Subject is a
public limited company domiciled in India and incorporated under the provisions
of the Companies Act, 1956. The company is engaged in the manufacture of
specialty petroleum products for diverse user industries like printing, textiles,
rubber, pharmaceuticals, cosmetics, power and other industrial oil.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY OVERVIEW
The petroleum
specialty product industry in India has been one of the fastest growing
industries in the country. Since the beginning, the industry has shown an
enviable rate of growth. The sector has a significant growth potential.
However, for last couple of years, global oil sector was affected by high
feedstock Prices and slower growth in demand. Although the current per capita
consumption of petroleum products is low, the demand for the same is growing.
India is at a
threshold of growth in consumption of petrochemicals due to increased domestic
demand, booming middle class, still nascent retail sector, and focus on infrastructure.
The demand for Automobiles, Packaging and Medicare is likely to remain strong.
Combining all the petrochemical sectors, demand in India is expected to be
robust in coming years. This industry also has immense importance in the growth
of economy of the country and the growth and development of manufacturing
industry as well. It provides the foundation for manufacturing industries like
cosmetic, packaging, pharmaceuticals, agriculture, textiles etc.
BUSINESS OVERVIEW
Established in
1982, Subject today is one of the leading manufacturers and exporters for
various kinds of Petroleum specialties. Company’s diverse range of products
includes Mineral Oils, Liquid Paraffins, Transformer Oils, Petroleum Jellies,
Ink Oils, and other Petroleum Specialty Products.
MANUFACTURING
FACILITIES
The Company has
adequate manufacturing capacity to cater the domestic as well as International
requirements. Its four manufacturing units, all located in western India,
namely in Ankleshwar (Gujarat), Daman (Union Territory), Taloja Raigadh,
Maharashtra) and Dahej (Bharuch, Gujarat). The Company’s products are exported
to more than 40 countries globally. The Company has a fully equipped
state-of-the-art Research and Development Center at its Ankleshwar unit where
it formulates new and value-added products. The Company manufactures more than
80 product variants used across 6-7 broad industry segments.
The Company
develops customised products as per client specification in the field of
petroleum and feeds to various industries like Printing Ink, Resin, Cosmetics,
Rubber products, Pharmaceuticals, Engineering, Texturising and Chemicals
including Petro Chemicals.
Over the years,
the Company has forged strong relations with its clientele, comprising of
leading names across sectors. Its ability to offer customised products
complying with global quality standards has enabled to generate not only repeat
business from existing clients, but also general referral business from new
clients.
FUTURE OUTLOOK
Though the outlook
for the Indian economy at present looks somewhat gloomy in line with the world
economies, the future may not be as bleak as it is made out to be. This is
because the Indian economy has certain inherent strengths and resilience to
withstand these downturns. The power sector as in the past continues to show
growing demand. However, the volatile base oil prices, slowing automotive
sector and depreciating rupee could dampen the demand for the petroleum
products. With slowing down of the economy, the spending of the general masses
may not increase much, which in turn may affect the growth potential for other
petroleum specialty products.
The Company is
planning to expand its operations to withstand against the negative market
forces. In view of that, the company has opened a wholly owned subsidiary in
UAE. The Company is hopeful to override the adverse effects of the price
fluctuations in the petroleum industry by resorting to bulk purchases and cost
control measures.
It is management’s
view that the Company will continue to strengthen its financial position with
stable production volumes and positive improvements in Commodity prices.
FIXED ASSETS
·
Freehold land
·
Leasehold Land
·
Factory Building
·
Non Factory Building
·
Plant and Equipment
·
Office Equipment
·
Computers
·
Furniture and fixtures
·
Vehicles
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND
SIX MONTHS ENDED 30TH SEPTEMBER 2013
(Rs. In Millions)
|
Particulars |
Quarter
Ended |
Year
Ended |
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Sales / Income from
Operations Less: Excise Duty |
1472.840 113.999 |
1477.438 134.753 |
2950.278 248.752 |
|
Net Sales / Income from
Operations Other Operating Income |
1358.841 -- |
1342.685 -- |
2701.526 -- |
|
Total Income |
1358.841 |
1342.685 |
2701.526 |
|
Expenditure |
|
|
|
|
a) Cost of Materials
consumed |
1108.027 |
1156.970 |
2264.997 |
|
b) Purchase of Traded
Goods |
34.821 |
36.853 |
71.674 |
|
c) Changes in inventories
of Finished goods, Traded goods |
35.036 |
(4.939) |
30.097 |
|
d) Employee benefits
expense |
8.049 |
7.299 |
15.348 |
|
e) Depreciation and
amortisation expense |
6.270 |
6.138 |
12.408 |
|
f) Exchange gain / loss |
10.479 |
61.698 |
72.177 |
|
g) Other Expenditure |
89.336 |
56.877 |
146.213 |
|
Total Expenditure |
1292.018 |
1320.896 |
2612.914 |
|
Profit from Operations
before Other Income, Interest & Finance Charges |
66.823 |
21.789 |
88.612 |
|
Other Income |
2.586 |
3.013 |
5.599 |
|
Profit from Operations before
Interest & Finance Charges |
69.409 |
24.802 |
94.211 |
|
Interest and Finance
Charges |
17.520 |
11.620 |
29.140 |
|
Profit / (Loss) from
Ordinary Activities Before Tax |
51.89 |
13.182 |
65.071 |
|
Tax Expense |
0.422 |
1.020 |
1.442 |
|
Profit / (Loss) from
Ordinary Activities After Tax |
51.467 |
12.162 |
63.629 |
|
Prior Period Items |
-- |
-- |
-- |
|
Net Profit / (loss) for
the period |
51.467 |
12.162 |
63.629 |
|
Paid up Equity Share
Capital (Face value of share of Rs. 10/- each) |
84.481 |
85.042 |
84.481 |
|
Reserves excluding
Revaluation Reserve |
|
|
|
|
Earnings per share EPS -
(Basic) |
6.06 |
1.42 |
7.41 |
|
Earnings per share EPS -
(Diluted) |
6.06 |
1.42 |
7.41 |
|
|
|
|
|
|
PART II |
|
|
|
|
|
|
|
|
|
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
Public Shareholding* |
|
|
|
|
- Number of shares |
2208159 |
2269028 |
2208159 |
|
- Percentage of
Shareholding Promoters and promoter group Shareholding |
26.13 |
26.66 |
26.13 |
|
a) Pledged / Encumbered |
|
|
|
|
- Number of shares |
-- |
-- |
-- |
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
- Percentage of shares
(as a% of the total share capital of the company) |
-- |
-- |
-- |
|
b) Non-encumbered |
|
|
|
|
- Number of shares |
3783825 |
3783825 |
3783825 |
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of shares (as
a% of the total share capital of the company) |
44.78 |
44.46 |
44.78 |
Excludes 2,457,345 equity
shares represented by Global Depository Receipts
INVESTOR COMPLAINTS FOR 3 MONTHS ENDED 31.03.2012
|
Pending at the beginning
of the quarter |
NIL |
|
Received during the
quarter |
1 |
|
Disposed of during the
quarter |
1 |
|
Remaining unresolved at
the end of the quarter |
NIL |
1.
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
PARTICULARS |
30.09.2013 |
|
|
(Unaudited) |
|
|
|
|
Equity and liabilities |
|
|
Shareholders' funds |
|
|
Share Capital |
84.481 |
|
Reserves and Surplus |
2278.038 |
|
Sub-total-Shareholders'
funds |
2362.519 |
|
Non-current liabilities |
|
|
Deferred tax liabilities (Net) |
17.271 |
|
Sub-total-Non-current
liabilities |
17.271 |
|
Current liabilities |
|
|
Short-term borrowings |
153.942 |
|
Trade payables |
1212.376 |
|
Other Current liabilities |
52.061 |
|
Short-term provisions |
4.151 |
|
Sub-total-Current
liabilities |
1422.530 |
|
TOTAL - EQUITY AND
LIABILITIES |
3802.320 |
|
ASSETS |
|
|
Non-current assets |
|
|
a) Fixed assets |
725.116 |
|
b) Non-current
investments |
6.628 |
|
c) Long-term loans and
advances |
2707.709 |
|
d) Other non-current
assets |
18.818 |
|
Sub-total-Non-current
assets |
1106.987 |
|
Current assets |
|
|
a) Inventories |
899.134 |
|
b) Trade receivables |
1091.900 |
|
c) Cash and bank balances |
476.782 |
|
d) Short-term loans and
advances |
223.400 |
|
e) Other current assets |
4.117 |
|
Sub-total-Current assets |
2695.333 |
|
TOTAL - ASSETS |
3802.320 |
2.
Limited
Review of the Unaudited Financial Results for the Quarter and Six months ended 30th
September, 2013 have been carried out by the Statutory Auditors of the company.
3.
The above unaudited results were reviewed by the
~udit'~omm1tteaend approved by the Board of Directors of the company at their
meeting held on 0ctober 21, 2013
4.
The Company has unutilised balance of Rs. 285.532 millions as on 30th
September, 2013 against GDR proceeds (net of Exchange gain / loss).
5.
The company operates only in one segment i.e.
petroleum products.
6.
Pursuant to the approval of the board of directors
at its meeting held on February 14, 2013, the Company has bought back through
open market transactions 56,175 equity shares of Rs. 10/- each, from 1st July, 2013 to September 30, 2013.
All the equity shares have been extinguished till the date of board meeting.
Further, 5,710 equity shares were bought back from 1st October, 2013 to 18th
October, 2013.
7.
Previous year period figures have been regrouped
and rearranged, wherever considered necessary, to confirm to the classification
adopted in the current period.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.19 |
|
|
1 |
Rs.102.14 |
|
Euro |
1 |
Rs.84.74 |
INFORMATION DETAILS
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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.