MIRA
INFORM REPORT
|
Report Date : |
02.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
GRP LIMITED (w.e.f. 21st June, 2012) |
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Formerly Known
As : |
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Registered
Office : |
Plot No.8, G.I.D.C. Estate, Ankleshwar, District: Bharuch – 393002,
Gujarat |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
29.06.1974 |
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Com. Reg. No.: |
04-002555 |
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Capital Investment
/ Paid-up Capital : |
Rs.13.333 Millions |
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CIN No.: [Company Identification
No.] |
L25191GJ1974PLC002555 |
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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
: |
Subject is engaged mainly in Reclaim Rubber. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
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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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Maximum Credit Limit : |
USD 3900000 |
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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 and reputed company having a fine track
record. There appears some dip in the profits of the company during current year
however, financial position of the company appears to be sound. Directors are
reported to be well experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. 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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
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
Uptick in
agriculture and construction spread some cheer as the economy grew a higher-than-expected
4.8 % in the three months through September. Manufacturing rose an annual rate
per cent during the quarter and mining fell by 0.4 %, government data showed
while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence Barometer report based on a
survey across 70 nations. The US, France and Japan have emerged as the top
three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of
payments is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the
time taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1 billion smartphone
shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost
computing in emerging markets. By 2017, total smartphone shipments are expected
to approach 1.7 billion units, resulting in a compound annual growth rate of
18.4 % between 2013 and 2017, according to research from IDC.
20 % vacancy rate of
office space in Mumbai and Delhi in the third quarter, the highest in Asia
after Chengdu, in China. According to Cushman and Wakefield, six Indian cities
are among the 10 office markets with the worst vacancies.
Foreign banks will
not have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of
Investigation has booked State Bank of India, Deputy Managing Director Shyamal
Acharya and others in a graft case related to distribution of a loan of over Rs
4000 mn. Gold and jewellery worth Rs 6.7 mn have been recovered from the
residence of Acharya.
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
Plot No.8, G.I.D.C. Estate, Ankleshwar – 393002, District: Bharuch, Gujarat,
India |
|
Tel. No.: |
91-2646-250471/ 251204 |
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Fax No.: |
91-2646-251622 |
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E-Mail : |
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Website : |
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Head Office/ Corporate Office : |
510, "A" Wing, |
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Tel. No.: |
91-22-67082600/ 2500/ 67082641 |
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Fax No.: |
91-22-67969240/ 25004376 |
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Factory 2 : |
Plot No.C-10-1, M.I.D.C. Industrial Estate, |
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Factory 3 : |
Plot No.664/520, G.I.D.C. Estate, Panoli – 394 116, District: Bharuch,
State: |
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Factory 4: |
Perundurai, Tamilnadu, India |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Kandathil M. Philip |
|
Designation : |
Chairman |
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Date of Birth : |
02.05.1912 |
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Qualification : |
Graduate |
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Date of Appointment : |
04.07.1975 |
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Name : |
Mr. Rajendra V. Gandhi |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. Mahesh V. Gandhi |
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Designation : |
Director |
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Name : |
Dr. Peter Philip |
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Designation : |
Director |
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Date of Birth : |
16.06.1943 |
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Qualification : |
Doctorate in Economics |
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Date of Appointment : |
01.04.1981 |
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Name : |
Mr. Bhagwandas T. Doshi |
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Designation : |
Director |
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Name : |
Mr. Atul S. Desai |
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Designation : |
Director |
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Name : |
Mr. Nikhil M. Desai |
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Designation : |
Director |
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Name : |
Mr. Harsh R. Gandhi |
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Designation : |
Executive Director |
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Name : |
Mr. Rajeev M. Pandia |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
G.A. Ghangurde |
|
Designation : |
Vice President and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2013)
|
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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|
501891 |
37.64 |
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|
115797 |
8.68 |
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617688 |
46.33 |
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Total shareholding
of Promoter and Promoter Group (A) |
617688 |
46.33 |
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(B) Public
Shareholding |
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|
50 |
0.00 |
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50 |
0.00 |
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|
44009 |
3.30 |
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|
404066 |
30.30 |
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|
254225 |
19.07 |
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|
13295 |
1.00 |
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|
11048 |
0.83 |
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|
2247 |
0.17 |
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|
715595 |
53.67 |
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Total Public
shareholding (B) |
715645 |
53.67 |
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Total (A)+(B) |
1333333 |
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) |
1333333 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged mainly in Reclaim Rubber. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
v
HDFC Bank Limited v
Citibank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
A.B. Modi and Associates Chartered Accountants |
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Address : |
Mumbai, |
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Subsidiary
Company : |
· Grip Polymers Limited (99.80% of total shareholdings held by the company) |
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Associate
Concern : |
· Alphanso Netsecure Private Limited (46% of total shareholdings held by the company) |
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Enterprises
owned or significantly influenced by Key Management Personnel or their
relatives : |
· Enarjee Investments Private Limited · Enarjee Consultancy and Trading Company LLP · Industrial Development and Investment Company Private Limited · Ghatkopar Estate and Finance Corporation Private Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000 |
Equity Shares |
Rs.10/- each |
Rs.15.000 Millions |
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1333333 |
Equity Shares |
Rs.10/- each |
Rs.13.333
Millions |
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(a) Rights,
preferences and restrictions attached to shares
(i) The Company
has only one class of shares referred to as equity shares having a par value of
` 10/-. Each holder of equity shares is entitled to one vote per share.
(ii) The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
(iii) In the event
of liquidation of the Company, the holders of the equity shares of the
Company will be
entitled to receive the remaining assets of the Company, after distribution of
all preferential amounts in proportion to their shareholding.
(b) The
reconciliation of the number of shares outstanding and the amount of share
capital as at March 31, 2013 and March 31, 2012, is set out below :
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
At the beginning |
|
|
|
- Number of
shares |
1,333,333 |
1,333,333 |
|
- Amount |
13.333 |
13.333 |
|
At the end |
|
|
|
- Number of
shares |
1,333,333 |
1,333,333 |
|
- Amount |
13.333 |
13.333 |
(c) Details of
shares held by shareholders holding more than 5% of the aggregate shares in the
company
|
Particulars |
31.03.2013 |
|
|
|
No. of Shares |
% of Holding |
|
Mr. Mahesh
Vadilal Gandhi |
77,411 |
6% |
|
Enarjee
Consultancy and Trading Co LLP (formerly known
as Enarjee Investment Private Limited) |
88,464 |
7% |
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 |
13.333 |
13.333 |
13.333 |
|
(b) Reserves & Surplus |
959.309 |
865.658 |
659.749 |
|
(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) |
972.642 |
878.991 |
673.082 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
378.501 |
462.438 |
175.567 |
|
(b) Deferred tax liabilities (Net) |
208.383 |
148.835 |
100.705 |
|
(c) Other long term liabilities |
0.000 |
0.944 |
0.944 |
|
(d) long-term provisions |
12.633 |
4.316 |
4.284 |
|
Total Non-current Liabilities (3) |
599.517 |
616.533 |
281.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
370.834 |
238.307 |
210.131 |
|
(b) Trade payables |
180.360 |
176.682 |
135.456 |
|
(c) Other current
liabilities |
198.633 |
154.069 |
30.830 |
|
(d) Short-term provisions |
41.364 |
41.907 |
26.272 |
|
Total Current Liabilities (4) |
791.191 |
610.965 |
402.689 |
|
|
|
|
|
|
TOTAL |
2363.350 |
2106.489 |
1357.271 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1383.332 |
1061.362 |
684.951 |
|
(ii) Intangible Assets |
8.568 |
5.740 |
2.250 |
|
(iii) Capital
work-in-progress |
20.602 |
155.777 |
102.928 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1.400 |
1.400 |
3.396 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
64.283 |
43.524 |
32.771 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1478.185 |
1267.803 |
826.296 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.008 |
0.008 |
0.008 |
|
(b) Inventories |
323.356 |
218.594 |
151.032 |
|
(c) Trade receivables |
479.866 |
418.948 |
309.608 |
|
(d) Cash and cash
equivalents |
19.114 |
150.114 |
33.582 |
|
(e) Short-term loans and
advances |
55.845 |
48.720 |
31.670 |
|
(f) Other current assets |
6.976 |
2.302 |
5.075 |
|
Total Current Assets |
885.165 |
838.686 |
530.975 |
|
|
|
|
|
|
TOTAL |
2363.350 |
2106.489 |
1357.271 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue From Operations |
2738.985 |
2442.432 |
1855.602 |
|
|
|
Other Income |
26.917 |
50.550 |
40.986 |
|
|
|
TOTAL (A) |
2765.902 |
2492.982 |
1896.588 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
Materials Consumed |
1324.812 |
1098.924 |
852.905 |
|
|
|
Purchases of
Stock in Trade |
1.323 |
0.000 |
0.000 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
(47.467) |
(37.464) |
(18.955) |
|
|
|
Employee
benefits expenses |
310.235 |
246.019 |
186.152 |
|
|
|
Other expenses |
834.421 |
690.033 |
544.624 |
|
|
|
Exceptional
items |
0.000 |
1.996 |
0.000 |
|
|
|
TOTAL (B) |
2423.324 |
1999.508 |
1564.726 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
342.578 |
493.474 |
331.862 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
63.936 |
40.272 |
22.981 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
278.642 |
453.202 |
308.881 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
101.578 |
68.735 |
51.280 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
177.064 |
384.467 |
257.601 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
60.013 |
127.250 |
81.394 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
117.051 |
257.217 |
176.207 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods (F.O.B. value) (On accrual basis) |
1603.153 |
1435.338 |
1136.364 |
|
|
TOTAL EARNINGS |
1603.153 |
1435.338 |
1136.364 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
26.804 |
7.604 |
3.508 |
|
|
|
Machinery |
1.964 |
147.299 |
34.508 |
|
|
TOTAL IMPORTS |
28.768 |
154.903 |
38.016 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
87.79 |
192.91 |
132.16 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
657.900 |
794.300 |
|
Total Expenditure |
|
599.900 |
673.700 |
|
PBIDT (Excl
OI) |
|
58.000 |
120.700 |
|
Other Income |
|
13.500 |
(1.000) |
|
Operating
Profit |
|
71.500 |
119.700 |
|
Interest |
|
18.200 |
19.800 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
53.300 |
99.900 |
|
Depreciation |
|
29.700 |
30.900 |
|
Profit
Before Tax |
|
23.600 |
69.000 |
|
Tax |
|
6.800 |
22.800 |
|
Provision and Contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
16.800 |
46.200 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
16.800 |
46.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.23
|
10.32 |
9.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.46
|
15.74 |
13.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.56
|
19.72 |
20.59 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.44 |
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.77
|
0.80 |
0.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.12
|
1.37 |
1.32 |
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 |
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 |
No |
UNSECURED LOANS
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Long Term
Borrowings |
|
|
|
Loan from Banks |
1.073 |
2.257 |
|
Deferred sales Tax Payments |
1.022 |
1.664 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Fixed Deposits |
17.619 |
11.823 |
|
|
|
|
|
Total |
19.714 |
15.744 |
|
NOTE: Long Term
Borrowings Terms of repayment for unsecured borrowings: 1 Deferred sales-tax
payments Deferred
sales-tax payment is interest free loan and repayable from financial year
2006-07 to 2016-17. 2 Loans from
Bank Vehicle loans
are secured by vehicles under hypothecation with banks. Loans are
repayable in 36 monthly instalments from the date of respective loans. Bank
loan includes a loan of Rs.0.626 Millions (March 31, 2012 : Rs.1.630
Millions) taken in the name of the director for purchase of car Short Term
Borrowings Fixed Deposits
(unsecured) carry interest @ 12.50% p.a. and with maturity period of 12
months from the date of deposit. Fixed Deposits includes deposit accepted from the related parties is
Rs.7.925 Millions (March 31, 2012: Rs.7.475 Millions). |
||
CURRENT PERFORMANCE AND FUTURE OUTLOOK
The financial year
2012-13 was a challenging one for the global as well as the Indian economy.
While the world economy grew at 2.3%, the Indian economy grew at a mediocre 5%,
and against this backdrop, the company has registered a growth in revenue of
11% for the year ended 31st March, 2013. This muted growth compared with the
previous years has been a result of slowdown in demand from the international
markets, a slow automotive growth in India and low commodity prices. Despite
recessionary trends in its major markets of Europe and North America, the
company was able to grow export revenues on the back of entry into new
geographies and introduction of reclaim rubber into new applications. The
export presence of the company contributes 65% share of total revenue and the
company's exports account for a commendable 50% of India's reclaim rubber
exports. The domestic markets are going through a challenging phase, with an
overcapacity of tyre production, a not so encouraging growth in the automobile
sales and a weak infrastructure sector leading to lower mining activity and
consequently lower demand for related products. In these trying circumstances,
the company was able to enlarge market share among the organized consumers of
reclaim rubber in India and maintain a dominant share overall.
The company's
marginal growth in volume has not mirrored the ability to pass on input price
increases through to the customers. With reduction in global prices of natural
rubber, synthetic rubber and most other compounding ingredients, there has been
considerable pressure on the company to reduce prices. Owing to the company's
standing in the industry and deep customer relationships, the company has been
able to ward off price reduction pressures and maintain its price position
across all markets. Increase in input costs, on the other hand depressed
margins, with raw materials accounting a major portion of total input cost
pressure. Alternate uses of end of life tyres for pyrolysis, as fuel in cement
industry and for road surfacing have put the supply chain under pressure and
continue to reflect in higher prices. The company has invested in the past in
captive power generation plants to meet its energy demand. With Natural
Gas prices rising unabated and grid tariffs rising by upto 30% per unit, energy
costs have further burdened operating margins. The company was unable to
utilize capacity at its plant in Perundurai (Tamil Nadu) due to unavailability
of adequate power resulting in poor efficiencies.
The performance of
the company in the industrial polymers business unit continues to inspire
confidence for the future and several R&D initiatives undertaken to improve
product quality are beginning to bear fruit. The company hopes to undertake commercial
scale operations based on the R&D in the current year to augment the
existing capacities of industrial polymers.
The achievements
of the company have been acknowledged as follows:-
• The K .M. Philip
Gold Medal awarded to Mr. Rajendra Gandhi, Vice Chairman and Managing Director
for his outstanding contribution to the growth and development of the Indian
Rubber industry
• All India Rubber
Industries Association's Top Export Award in the Raw Material sector
• Industry 2.0's
Green and Sustainable manufacturing Certificate of Achievement to Mr. Harsh
Gandhi, Executive Director for the company's initiatives in building a
sustainable supply chain
• Quality Circle
Forum of India's Gold trophy presented to GRP Ankleshwar plant for achievements
in 5S across Gujarat state
SUBSIDIARY AND ASSOCIATE
Pursuant to the Central Government notification No: 5/12/2007-CL-III dated 8th February, 2011 issued by Ministry of Corporate Affairs, granting exemption under Section 212 of the Companies Act, 1956 and with the consent of the Board of Directors, the company will not be attaching the annual accounts (Balance Sheet, Profit and Loss account and schedules forming part thereof and other reports) of the subsidiary company viz. Grip Polymers Limited, to the Annual Report of the holding company viz. GRP Limited., for the financial year ended 31st March, 2013. Any shareholder interested in obtaining copy of audited annual accounts of the subsidiary company for the year ended 31st March, 2013, may write to the Company Secretary at the registered office of the company.
The company holds 46% of the equity share capital of Alphanso Net Secure
Private Limited which is its only associate company.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry Structure and Development
A key ingredient
of economic growth in developed as well as developing industries has been the
growth and expansion of the automotive sector by way of increasing penetration
of vehicle ownership - commercial as well as personal. Vehicle proliferation
leads to increased usage of tyres and like all other tyres too have an
end-of-life state when they either need to be discarded or recycled.
Accumulation of end-of-life tyres is a world-wide issue receiving attention of
governments as well as the producing and consuming industry. Of the many
alternatives available for addressing the end-of-life tyres issue is recycling
these to manufacture reclaim rubber. The result is recovery of resources and
maintenance of environmental balance.
Over the last few
decades, reclaim rubber has carved out an important role for itself as a key
ingredient in majority of rubber products - tyre as well as non-tyre. Non tyre
sector includes conveyor belting, automotive profiles, hoses, flooring and
roofing applications, civil engineering etc. Being price stable it has helped
these industries in not only avoiding price uncertainty but also optimising
product cost. This has led to a growing demand for reclaim rubber around the
world, a demand which is expected to sustain as the need to conserve resources,
remain environment focused and optimizing product costs remains a priority for
all industries.
The custom die
forms business of the company is a unique business where end-of-life tyres are
used for their residual mechanical properties to cater to specialist
requirements ranging from global agricultural equipment manufacturers to dock
bumper pads and industrial floor mats, mainly in North America. Since India
continues to be the largest source of truck bias tyres (raw material for these
products), we expect this business to be robust for many years to come.
Segment wise or Product wise performance
In accordance with
the Accounting Standard-17 notified by the Companies (Accounting Standards)
Rules, 2006, the company has classified its business into two reportable
business segments based on nature of business.
a) Reclaim Rubber:
This segment
comprises of reclaim rubber sheets for tyre and non-tyre rubber goods
industries. The company continues to be the market leader in reclaim rubber
segment. The company has achieved a 12% growth in this segment in the current
financial year as compared to previous year.
The total sales
under this segment is Rs.2654.879 Millions lakhs for the financial year.
b) Windmill:
The company has
invested in Windmill at Kuchhadi in Gujarat in the financial year 2009-10. For
the power units generated by Windmill, the company gets credit in its
electricity bill of its Panoli plant in Gujarat.
OUTLOOK
Global demand for rubber has been forecast to reach 27.6 million tons during the year 2013, by the International Rubber Study Group (IRSG, November 12, 2012). Going by past trends, this should result in a growth for reclaim rubber as well. GRP believes that its brand equity, wide customer acceptance and enhanced global distribution footprint will help it in taking advantage of this. Going forward while economic growth is expected to remain moderate, if automotive growth returns to India and some key markets around the world (USA, South Asia, Far East), reclaim rubber growth can return to the trend it was witnessing till a year ago. Europe, however, is expected to remain subdued with large parts of EU still unable to come out of their economic woes. For GRP, this region constitutes a significant share of its business and hence has impacted growth; but the company has prudently targeted its efforts to grow business in Latin America, CIS countries and South Asia, regions largely expected to grow in the next few years.
CRISIL Research has forecast that India should grow at 6.7% in the financial year 2013-14 - an improvement over the financial year 2012-13. Going with this trend, for GRP, India will continue to remain a focus market with its share in overall business expected to improve in the next year.
General company
profile:
The 'Company' is
engaged mainly in Reclaim Rubber. Its other business include Power generation
from Windmill, Manufacturing of Thermo Plastic Elastomers and Punch and Split
products. The Company has manufacturing plants in India and sales in Domestic
as well as International market. The Company is a public limited company and is
listed on the Stock Exchange, Mumbai (BSE).
CONTINGENT LIABILITIES
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In
Millions) |
||
|
(a) Guarantees by Banks not provided for (Net) |
23.307 |
22.662 |
12.773 |
|
(b) Claims
against the company (Including Sales tax, Excise duty, etc. ) not
acknowledged as debts |
|
|
|
|
- |
0.052 |
0.052 |
0.052 |
|
- Excise Duty |
10.620 |
12.924 |
12.030 |
|
- Income Tax
liability |
20.802 |
17.416 |
9.501 |
INDEX OF CHARGES
FIXED ASSETS:
·
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Computers and Software
· Vehicles
· Capital Work in Progress
· Roads
·
·
Plant and Machinery
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.62.06 |
|
|
1 |
Rs.102.03 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Information
Gathered by : |
|
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
63 |
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.