MIRA INFORM REPORT
|
Report Date : |
02.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
GMM PFAUDLER LIMITED (w.e.f. 01.10.2000) |
|
|
|
|
Formerly Known
As : |
GUJARAT MACHINERY MANUFACTURERS LIMITED |
|
|
|
|
Registered
Office : |
Vithal Udyognagar, Anand - Sojitra Road, Karamsad- 388325,
Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
17.11.1962 |
|
|
|
|
Com. Reg. No.: |
04-001171 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 29.230 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29199GJ1962PLC001171 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Corrosion Resistant Glass-Lined Equipment and Flouro-Polymer Products and Other Chemical Process Equipment such as Agitated Nutsche Filters, Filter Driers, Wiped Film Evaporators and Mixing Systems. |
|
|
|
|
No. of Employees
: |
348 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist (Matter Converted to CA/1950/2014) |
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|
|
|
Comments : |
Subject is a subsidiary of PFAUDLER INC. USA. It is a well-established
company having fine track record. The rating reflects Pfaudler’s adequate market position supported by
leadership in the glass lined equipment (GLE) market and its strong financial
risk profile, marked adequate liquidity position and fair profitability of
the company. 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “AA-” |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
12.09.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A1+” |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
12.09.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management Non-Cooperative
LOCATIONS
|
Registered Office/ Factory : |
Vithal Udyognagar, Anand - Sojitra Road, Karamsad- 388325, Gujarat, India |
|
Tel. No. : |
91-2692-230516/ 230367/ 230416/
661700 |
|
Fax No. : |
91-2692-661888/ 236467 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate / Mumbai Sales Office |
1001, Peninsula Towers, Peninsula Corporate Park,
Ganpatrao Kadam Marg, |
|
Tel. No. : |
91-22-66503900 |
|
Fax No. : |
91-22-66503939 |
|
E-Mail : |
|
|
|
|
|
Regional Sales
Offices: |
New
Delhi Tel: 91-11-25721566 Fax: 91-11-25814913 Tel: 91-44-28157906 Fax: 91-44-28158249 Tel: 91-79-27546822/ 27546824/ 27546924 Fax: 91-79-27546894 Tel: 91-40-23150222/ 40055058 Fax: 91-40-23150261 Tel: 91-80-22225208 Fax: 91-80-22234339 Tel: 91-265-2354790 Fax: 91-265-2311482 |
DIRECTORS
As on 31.03.2013
|
Name : |
P. Krishnamurthy |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ashok J. Patel |
|
Designation : |
Managing Director |
|
Date of Birth/Age: |
68 Years |
|
Qualification : |
Degree in Mechanical Engineering and Masters in Business Administration Degree. |
|
|
|
|
Name : |
Mr. Michael C. Reed |
|
Designation : |
Director |
|
Date of Appointment : |
30.05.2013 |
|
|
|
|
Name : |
Mr. Kevin J. Brown |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S. Sivaram |
|
Designation : |
Director |
|
|
|
|
Name : |
Darius C. Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Tarak A. Patel |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Vidhi Patel |
|
Designation : |
Chartered Accountant |
|
|
|
|
Name : |
Mr. Ashok C. Pillai |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Amar Nath Mohanty |
|
Designation : |
Financial Controller |
|
|
|
|
Name : |
Ms. Mittal Mehta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of Shareholder |
Total No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
1301045 |
8.90 |
|
|
2036480 |
13.93 |
|
|
253125 |
1.73 |
|
|
253125 |
1.73 |
|
|
3590650 |
24.56 |
|
|
|
|
|
|
7614947 |
52.09 |
|
|
7614947 |
52.09 |
|
Total
shareholding of Promoter and Promoter Group (A) |
11205597 |
76.66 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
658 |
0.00 |
|
|
138300 |
0.95 |
|
|
138958 |
0.95 |
|
|
|
|
|
|
362863 |
2.48 |
|
|
|
|
|
|
2301087 |
15.74 |
|
|
523755 |
3.58 |
|
|
85240 |
0.58 |
|
|
23695 |
0.16 |
|
|
61470 |
0.42 |
|
|
75 |
0.00 |
|
|
3272945 |
22.39 |
|
Total Public
shareholding (B) |
3411903 |
23.34 |
|
Total (A)+(B) |
14617500 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
14617500 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Corrosion Resistant Glass-Lined Equipment and Flouro-Polymer Products and Other Chemical Process Equipment such as Agitated Nutsche Filters, Filter Driers, Wiped Film Evaporators and Mixing Systems. |
GENERAL INFORMATION
|
No. of Employees : |
348 (Approximately) |
|
|
|
|
Bankers : |
· State Bank of India · Axis Bank Limited · Citibank N.A. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Kalyaniwalla and Mistry Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Solicitors: |
Vigil Juris |
|
|
|
|
Holding Company: |
Pfaudler Inc. USA |
|
|
|
|
Ultimate Holding
Company: |
· Robbins and Myers Inc. USA (Upto 20th February 2013) · National Oilwell Varco Inc. USA (from 21st February 2013) |
|
|
|
|
Subsidiary
Companies: |
· Karamsad Holdings Limited · Karamsad Investments Limited · GMM Mavag AG · Mavag AG |
|
|
|
|
Fellow
Subsidiaries: |
· Pfaudler Werke GMBH · Pfaudler Balfour Limited · Edlon PSI Inc. · Suzhou Pfaudler Glass Lined Equipment Company Limited · Glass Steel Parts and Services · Tycon Technoglass · Robbins and Myers DE Mexico, SA.DECV · Robbins and Myers Inc.(Upto 20th February 2013) |
|
|
|
|
Other Related
Parties: |
· Skyline Millars Limited · Ready Mix Concrete Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25,000,000 |
Equity Shares |
Rs.2/- each |
Rs. 50.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14,617,500 |
Equity Shares |
Rs.2/- each |
Rs. 29.230 Millions |
|
|
|
|
|
NOTE
a) Reconciliation of
equity shares outstanding at the beginning and end of the reporting year
|
Equity Shares: |
31.03.2013 |
|
|
In Numbers |
Rs. in Millions |
|
|
At the Beginning of the year |
14,617,500 |
29.230 |
|
Issued during the year |
-- |
-- |
|
Outstanding as at
the end of the year |
14,617,500 |
29.230 |
b) Terms/rights
attached to equity shares
The Company has only one class of equity shares having a par value Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c) Details of
sharehoders holding more than 5% shares in the company
|
Equity Shares: |
31.03.2013 |
|
|
In Numbers |
% holding |
|
|
Pfaudler Inc (Holding Company) |
7,454,400 |
50.99% |
|
Millars Machinery Company Private Limited |
1,625,595 |
11.12% |
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 |
29.230 |
29.230 |
29.230 |
|
(b) Reserves & Surplus |
1,046.790 |
996.030 |
952.510 |
|
(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) |
1,076.020 |
1,025.260 |
981.740 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
46.500 |
51.280 |
36.550 |
|
(c) Other long term
liabilities |
0.190 |
0.290 |
0.290 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
46.690 |
51.570 |
36.840 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
43.710 |
|
(b) Trade
payables |
203.210 |
213.700 |
229.800 |
|
(c) Other
current liabilities |
268.770 |
294.950 |
271.350 |
|
(d) Short-term
provisions |
15.960 |
30.340 |
14.130 |
|
Total Current
Liabilities (4) |
487.940 |
538.990 |
558.990 |
|
|
|
|
|
|
TOTAL |
1,610.650 |
1,615.820 |
1,577.570 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
389.200 |
370.330 |
285.480 |
|
(ii)
Intangible Assets |
23.780 |
0.950 |
0.650 |
|
(iii)
Capital work-in-progress |
8.810 |
28.840 |
59.960 |
|
(iv)
Intangible assets under development |
0.000 |
9.570 |
0.000 |
|
(b) Non-current Investments |
232.870 |
245.410 |
234.870 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
42.810 |
23.930 |
19.260 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
697.470 |
679.030 |
600.220 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
103.420 |
50.460 |
48.380 |
|
(b)
Inventories |
465.490 |
515.780 |
628.000 |
|
(c) Trade
receivables |
254.100 |
269.860 |
236.570 |
|
(d) Cash
and cash equivalents |
46.010 |
66.680 |
6.990 |
|
(e)
Short-term loans and advances |
20.680 |
22.770 |
49.840 |
|
(f) Other
current assets |
23.480 |
11.240 |
7.570 |
|
Total
Current Assets |
913.180 |
936.790 |
977.350 |
|
|
|
|
|
|
TOTAL |
1,610.650 |
1,615.820 |
1,577.570 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1,675.010 |
2,018.130 |
1,440.210 |
|
|
|
Other Income |
50.950 |
28.800 |
26.150 |
|
|
|
TOTAL (A) |
1,725.960 |
2,046.930 |
1,466.360 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
847.150 |
1,178.320 |
899.360 |
|
|
|
Change in inventories of finished goods and work-in-progress |
39.970 |
45.590 |
(143.450) |
|
|
|
Employee benefits expense |
198.990 |
193.130 |
166.040 |
|
|
|
Other expenses |
444.520 |
438.980 |
338.570 |
|
|
|
TOTAL (B) |
1,530.630 |
1,856.020 |
1,260.520 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
195.330 |
190.910 |
205.840 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7.280 |
11.650 |
8.810 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
188.050 |
179.260 |
197.030 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
55.930 |
49.100 |
34.740 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
132.120 |
130.160 |
162.290 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
35.460 |
38.750 |
52.110 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
96.660 |
91.410 |
110.180 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
676.120 |
641.740 |
590.480 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
30.700 |
30.700 |
40.930 |
|
|
|
Final Dividend |
10.230 |
10.230 |
0.000 |
|
|
|
Tax on distributed profits |
4.970 |
6.960 |
6.960 |
|
|
|
Transfer to General Reserve |
9.670 |
9.140 |
11.020 |
|
|
BALANCE CARRIED
TO THE B/S |
717.210 |
676.120 |
641.750 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value exports |
102.560 |
154.380 |
34.320 |
|
|
|
Commission |
11.330 |
8.470 |
5.940 |
|
|
TOTAL EARNINGS |
113.890 |
162.850 |
40.260 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw material and components |
65.680 |
123.150 |
55.350 |
|
|
|
Stores and spares |
5.710 |
8.550 |
0.890 |
|
|
TOTAL IMPORTS |
71.390 |
131.700 |
56.240 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
6.61 |
6.25 |
7.54 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
751.800 |
338.800 |
377.500 |
|
Total Expenditure |
1753.700 |
(511.100) |
278.200 |
|
PBIDT (Excl OI) |
1001.900 |
849.800 |
99.300 |
|
Other Income |
10.300 |
750.700 |
0.800 |
|
Operating Profit |
(991.600) |
1600.600 |
100.100 |
|
Interest |
592.300 |
1346.200 |
3.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(1584.000) |
254.400 |
96.700 |
|
Depreciation |
113.800 |
138.400 |
141.000 |
|
Profit Before Tax |
(1697.700) |
115.900 |
(44.400) |
|
Tax |
0.000 |
158.300 |
13.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(1697.700) |
(42.300) |
(57.800) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(1697.700) |
(42.300) |
(57.800) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.60
|
4.47 |
7.51 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.89
|
6.45 |
11.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.65
|
9.77 |
0.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.13 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.04 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.87
|
1.74 |
1.75 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
29.230 |
29.230 |
29.230 |
|
Reserves & Surplus |
952.510 |
996.030 |
1046.790 |
|
Net
worth |
981.740 |
1,025.260 |
1,076.020 |
|
|
|
|
|
|
Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
43.710 |
0.000 |
0.000 |
|
Total
borrowings |
43.710 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.045 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1,440.210 |
2,018.130 |
1,675.010 |
|
|
|
40.127 |
(17.002) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1440.210 |
2018.130 |
1675.010 |
|
Profit |
110.180 |
91.410 |
96.660 |
|
|
7.65% |
4.53% |
5.77% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
CURRENT MATURITIES OF
LONG TERM DEBTS: NOT AVAILABLE
LITIGATION DETAILS
Note: Matter Converted to: CPA/272/2014
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10171518 |
11/12/2013 * |
700,000,000.00 |
STATE BANK OF INDIA |
JAYLAXMI PLAZA, GANESH CROSS, ANAND - 388001, GUJARAT, INDIA |
B95182218 |
* Date of charge modification
BACKGROUND
Subject, formerly Gujarat Machinery Manufacturers Limited, (“the
Company”) was incorporated in India on November 17, 1962. The Company’s
manufacturing unit is located at Karamsad, Gujarat. The Company’s principal
activity is the manufacture of corrosion resistant glass-lined equipment used
primarily in the chemical, pharmaceutical and allied industries. The Company
also manufactures flouro-polymer
products and other chemical process equipment such as agitated nutsche filters,
filter driers, wiped film evaporators and mixing systems.
The Company has entered into an investment and technical know-how agreement with Pfaudler Inc. USA (‘Pfaudler’) a Company incorporated in the United States of America, which owns 50.99 percent of the total issued share capital of the Company. The Company’s ultimate holding Company Robbins and Myers Inc, USA, merged with National Oilwell Varco Inc. (NOV), USA on February 20, 2013. By virtue of this merger NOV has become the ultimate holding Company from February 21, 2013.
FINANCIAL
REVIEW:
The business environment during the year remained recessionary leading to slowdown in demand. Revenue from Operations for the year at Rs. 1675.010 Millions declined by 17% over the previous year primarily due to reduced focus on Tailor Made products. While sales of glassline products increased moderately by 3%, sales of non glassline products declined by 43% as compared to previous year. Orders inflow in fourth quarter showed improvement resulting in a healthy unexecuted Rs. 1113.000 Millions including Rs. 698.000 Millions of glasslined products and Rs. 415.000 Millions of non-glasslined products, at the end of this year.
In spite of adverse business environment, the Company has been able to maintain its overall performance. Profit before tax for the year at Rs. 132.120 Millions was 2% above Rs. 130.160 Millions in the previous year. Profit after tax also increased by 6% to Rs. 96.660 Millions from Rs. 91.041 Millions in the previous year. Earnings per share increased by 6% to Rs. 6.61 per share as compared to Rs. 6.25 of the previous year.
Sales of the Company’s Swiss subsidiary, Mavag AG for the year was at Rs. 469.200 Millions, 19% lower than Rs. 579.910 Millions in the previous year due to continued economic slow down in the European market with pressure on price and volatility in the foreign exchange rates. Profitability also remained low. Profit after tax for the year decreased by 6% to Rs. 3.200 Millions, as compared to Rs. 3.400 Millions in the previous year.
MERGER OF
ROBBINS AND MYERS INC, USA WITH NATIONAL OIL WELL VARCO INC, USA:
The Company’s ultimate holding Company Robbins and Myers
Inc, USA, merged with National Oilwell Varco Inc. (NOV) USA on February 20,
2013. By virtue of this merger NOV has become the ultimate holding company from
February 21, 2013.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
COMPANY OVERVIEW:
Subject was established in the year 1962. The Company has a state of the art manufacturing facility spread over a 20 acre plot of land located at Karamsad in Gujarat State, about 45 km from Vadodara. The Company enjoys the leadership position in design, manufacture and marketing of glass-lined reactor vessels, storage tanks, valves and pipe and fittings. The Company also undertakes design and fabrication of specialized chemical process equipment in Alloy steel. It has created for itself a niche position in the chemical process equipment market for proprietary products manufactured by it such as Agitated Nutsche Filters and Filter Dryers, Wiped Film Evaporators, EconoMix Mixing Systems, Thermal Control Units and PTFE lined pipes and fittings. Its access to the Mavag’s high end technology for top driven Spherical Dryers, Agitated Nutsche Filters and Filter Dryers for sterile applications and Magnetic Drive Agitators has complemented the Company’s position as a complete process solution provider for pharmaceuticals, bio pharmaceuticals, chemicals and allied segments.
INDUSTRY STRUCTURE
AND DEVELOPMENT:
The Indian economy has experienced considerable slowdown during the year. GDP growth estimate for the year has been revised downward to 5.3% from above 7%, Industrial output is volatile, escalated interest rates and high inflation levels were an ongoing concern. The fall out has extended to the Indian Pharmaceutical market and Chemical Industry, the industry growth being lower than the previous year. However, with increased government measures and industry’s proactive actions, outlook for the sectors remains positive. GDP Forecast for the year
2013-14 is 6%.
While the Chemical industry in India grew as a whole above 10% in 2013 and it is also expected to grow at a CAGR of above 10%.
The Pharmaceutical industry grew by about 15% during the year and it is expected to grow at a CAGR of 17% till 2016. Heightened competition and a greater presence of branded generics are putting greater pricing pressures on the industry. The low priced segment of the market has almost doubled its share over the last four years. The continued focus on India as a base for bulk drugs, both of a generic nature and increasingly for specialty patent protected drugs chemicals, the industry is expected to continue its growth momentum in the near term.
With investments by established companies, both Indian and multi nationals, as well as from new companies, the Company expects to see broadening of its customer base as well as increase in revenues from its existing customers.
FINANCIAL
PERFORMANCE:
Sales and Operating Income for the year has declined due to slow market demand and reduced focus on Tailor Made products. However, profitability for the year was maintained due to reduction of cost of outsourcing and reduction in input and other cost. The Company put greater focus on the management of working capital which resulted in improved cash flow for the year. Investment in upgradation of the manufacturing facility and computer
ERP systems has been funded from the internal accruals without resorting to any debts.
Higher order intake in the fourth quarter of the year has resulted in year end order backlog of Rs. 1113.000 Millions, being 23% above the previous year.
SEGMENT WISE
OPERATIONAL PERFORMANCE:
a) Chemical Process
Equipment
This Division of the Company designs manufactures and markets GMM Pfaudler Reactor Systems product line which primarily includes glass-lined corrosion resistant reactors, storage vessels and alloy steel equipment. This Division reported sales of Rs. 1428.070 Millions, 14% lower than that of previous year. This division contributed about 85% of the total sales of the Company. This Division of the Company continues to enjoy the number one position in manufacturer of glass-lined equipment in India. The profit from this segment was Rs. 128.320 Millions, a decrease of about 13% over the previous year due to lower sales of Tailer Made Products and increases in cost of Power and Fuel in the form of natural gas and electricity. The capital employed for this division was Rs. 588.100 Millions, an increase of 3% from the previous year level.
b) Mixing System
This Division designs, manufactures and markets EconoMix Agitators which provide solutions to customer’s mixing requirements. In addition to serving the CPI, this Division also caters to the bio-technology, mining and waste water treatment industry. Sales of this Division of the Company decreased by over 43% to Rs. 113.490 Millions from Rs. 199.630 Millions in the previous financial year due to low order intake during the year and hold put on some of the major customer orders. The profit from this segment was Rs. 8.900 Millions, a decrease of 38% over the previous year. Capital employed for this Division was Rs. 9.730 Millions, a decrease of about 53% from the previous year.
c) Filtration and
Separation
This Division’s primary business is design, manufacture and marketing of Agitated Nutsche Filter and Filter Dryers for separation of solids and liquid and Wiped Film Evaporators for separation of liquids and liquids with Mavag’s high end technology and products. This segment reported a sale of Rs. 133.450 Millions, a decrease of 12% over previous year. Profits however were higher by 23% at Rs. 6.240 Millions, Capital employed for this Division was Rs. 57.000 Millions an increase of 25% from the previous year.
OUTLOOK:
In line with the overall slowdown in the economy, the demand for some of the Company’s products have shown a decline during the year.
However, the Company is taking steps to focus on promoting additional value added features in Glassline product as well as high technology Mavag products.
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER/ NINE MONTHS
ENDED DECEMBER 31, 2013
(Rs. in Millions)
|
|
Standalone |
|||
|
Sr. No. |
Particulars |
Quarter ended |
Nine Months Ended |
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
||
|
1 |
lncome from
operations |
|
|
|
|
|
a) Net Sales Income from operations |
535.820 |
487.930 |
1413.120 |
|
|
b) Other Operating Income |
13.710 |
8.980 |
27.750 |
|
|
Total Income from
operations (net) |
549.530 |
496.910 |
1440.870 |
|
|
|
|
|
|
|
2 |
Expenses : |
|
|
|
|
|
a) Cost of materials consumed |
283.090 |
241.890 |
764.290 |
|
|
b) Changes in inventories of finished goods and work-in-progress |
(1.690) |
11.610 |
(47.040) |
|
|
c) Employee benefits expense |
57.990 |
52.190 |
167.200 |
|
|
d) Depreciation & amortization expenses |
15.110 |
15.050 |
45.180 |
|
|
e) Labour Charges |
40.180 |
41.290 |
114.770 |
|
|
f) Power and Fuel Cost |
38.990 |
35.640 |
109.730 |
|
|
g) Other Expenditure |
57.790 |
52.830 |
162.110 |
|
|
Total |
491.460 |
450.500 |
1316.240 |
|
3 |
Profit from Operation before Other income, lnterest and Exceptional Items |
58.070 |
46.410 |
124.630 |
|
4 |
Other Income |
3.270 |
7.980 |
19.310 |
|
5 |
Profit before Interest and Exceptional Items |
61.340 |
54.390 |
143.940 |
|
6 |
Interest & Financial Charges |
2.720 |
1.670 |
6.610 |
|
7 |
Profit I (Loss) from Ordinary Activities before tax |
58.620 |
52.720 |
137.330 |
|
8 |
Tax Expense |
|
|
|
|
|
- Current |
18.850 |
18.640 |
47.120 |
|
|
- Deferred |
(1.400) |
(1.440) |
(3.820) |
|
9 |
Net Profit I (Loss)
after tax |
41.170 |
35.520 |
94.030 |
|
10 |
Paid-up Equity Share Capital (Face Value Rs. 2/-) |
29.230 |
29.230 |
29.230 |
|
11 |
Reserves (as per Balance Sheet of previous Accounting Year) |
-- |
-- |
-- |
|
12 |
Basic and Diluted Earning Per Share (Rs.) |
2.82 |
2.43 |
6.43 |
|
|
|
|
|
|
|
13 |
Public Shareholding |
|
|
|
|
|
a) Number of Shares |
3411903 |
3411903 |
3411903 |
|
|
b) Percentage of Shareholding |
23.34% |
23.34% |
23.34% |
|
|
Promoters and
Promoter group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
-Number of Shares |
Nil |
Nil |
Nil |
|
|
-Percentage of Share (as a % of the total shareholding of promoter & promoter group) |
Nil |
Nil |
Nil |
|
|
-Percentage of Share (as a % of the total share capital of the Company) |
Nil |
Nil |
Nil |
|
|
b) Non-encumbered |
|
|
|
|
|
-Number of Shares |
11205597 |
11205597 |
11205597 |
|
|
-Percentage of Share (as a % of the total shareholding of promoter & promoter group) |
100% |
100% |
100% |
|
|
-Percentage of Share (as a % of the total share capital of the Company) |
76.66% |
76.66% |
76.66% |
NOTES:
1) The above unaudited results have been reviewed by the Audit Committee approved by the Board of Director in their meetings held on January 29, 2014.
2) The above results have been reviewed by the Statutory Auditors of the Company.
3) The Board of Director have announced a third interim dividend Rs. 0.70 per share for the current financial year 2013-14. The record date for the payment of the said dividend has been fixed on February 5, 2014,
4) Public Shareholding in the Company decreased by 1.10% during the first quarter of the current year due to acquisition of 160547 shares by Pfaudler Inc. (Foreign Promoters) through open offer which closed on May 21, 2013, In terms of Regulation 7(4) of the Securities and Exchange Board of India (SEBI) Substantial Acquisition of Shares and Takeovers Regulations 2011 r/w Securities Contracts (Regulation) Rules, 1957, the company has a time limit of the year from the date of closure of the open offer i.e. upto May 20, 2014 to bring down the Promoters holding by 1.66% i.e. from 76.66% to 75% to comply with Clause 40A of the Listing Agreement.
5) Number of Investors complaints (i) received during the quarter: 2 (ii) disposed off: 2 and (iii) pending at the end: Nil.
6) Figures for the earlier periods have been re-grouped/ re-arranged where ever necessary.
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in Millions)
|
|
Standalone |
|||
|
Particulars |
Quarter ended |
Nine Months Ended |
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
|
1) Segment Revenue |
|
|
|
|
|
a) Chemical Process Equipment |
420.980 |
414.500 |
1166.110 |
|
|
b) Mixing Systems |
38.050 |
35.800 |
110.960 |
|
|
c) Filtration / Separation Equipment & Others |
90.500 |
46.610 |
163.800 |
|
|
Net sales I Income
from Operation |
549.530 |
496.910 |
1440.870 |
|
|
2) Segment Result: |
|
|
|
|
|
Profit I (Loss)
before Tax and Interest |
|
|
|
|
|
a) Chemical Process Equipment |
53.520 |
61.330 |
142.810 |
|
|
b) Mixing Systems |
3.160 |
2.420 |
6.780 |
|
|
c) Filtration / Separation Equipment and Others |
10.780 |
5.200 |
16.160 |
|
|
Total |
67.460 |
68.950 |
165.750 |
|
|
|
|
|
|
|
|
Less : Interest |
2.720 |
1.670 |
6.610 |
|
|
|
|
|
|
|
|
Less: Other Unallocable Expense net of Unallocable Income |
6.110 |
14.560 |
21.800 |
|
|
|
|
|
|
|
|
Total Profit before
Tax |
58.620 |
52.720 |
137.330 |
|
|
|
|
|
|
|
|
3) Capital
Employed: |
|
|
|
|
|
a) Chemical Process Equipment |
488.830 |
534.010 |
488.830 |
|
|
b) Mixing Systems |
28.830 |
24.670 |
28.830 |
|
|
c) Filtration I Separation Equipment & Others |
86.150 |
95.950 |
86.150 |
|
|
Unallocable Net Asset I (Net Liabilities) |
542.210 |
462.190 |
542.210 |
|
|
Total |
1146.020 |
1116.820 |
1146.020 |
|
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
a) Claim against the Company not acknowledged as debts |
|
|
|
i) Dispute relating to Cenvat and Sales tax |
8.320 |
5.280 |
|
ii) Dispute relating to tax demand |
15.490 |
0.490 |
|
b) Guarantee issued by bank |
239.140 |
212.790 |
|
c) Other Contingent Liability |
-- |
-- |
FIXED ASSETS
v
Tangible
Assets:
· Freehold Land
· Leasehold Land
· Lease Improvement
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
v
Intangible
Assets:
· Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.03 |
|
|
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.80.34 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
62 |
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.