MIRA INFORM REPORT
|
Report Date : |
25.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
NOCIL LIMITED (w.e.f 29.11.2007) |
|
|
|
|
Formerly Known
As : |
NATIONAL ORGANIC CHEMICAL INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Mafatlal House, H T Parekh Marg, Backbay Reclamation, Churchgate,
Mumbai – 400020, |
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|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
11.05.1961 |
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|
|
|
Com. Reg. No.: |
11-012003 |
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|
|
Capital
Investment / Paid-up Capital : |
Rs.1607.870 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1961PLC012003 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMN00133A mumn10739b |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN4912E |
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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
: |
Manufacturing and Trading of Rubber Chemicals. |
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|
|
|
No. of Employees
: |
266 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
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 15000000 |
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|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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|
|
Comments : |
Subject is an established company having good track. Fundamentals of the company is decent. Financial position of the
company is strong and healthy. Trade relations are reported to be fair. Business is active. Payment
terns are reported to be regular and as per commitment. The company can be considered normal for business dealings at usula
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
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year
before.A sharp fall in gold imports due to restrictions on overseas purchases
and muted import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities: AA- |
|
Rating Explanation |
High degree of safety and low credit risk. |
|
Date |
31.03.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
31.03.2014 |
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.
INFORMATION DECLINED BY
|
Name : |
Mr. P. Srinivasan |
|
Designation : |
Chief Financial Officer |
|
Contact No.: |
91-22-66364062 |
|
Date : |
21.06.2014 |
LOCATIONS
|
Registered/ Head Office/ Export Department :: |
Mafatlal House, H T Parekh Marg, Backbay Reclamation, Churchgate,
Mumbai – 400020, |
|
Tel. No.: |
91-22-66364062 |
|
Fax No.: |
91-22-66364060/ 56364056 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Factory 1/ Marketing Technical Service : |
C-37, T.T.C. Industrial Area, Off Thane-Belapur Road,
Pawne Village, |
|
Tel. No.: |
91-22-66730551 |
|
Fax No.: |
91-22-27671862 |
|
Email : |
|
|
|
|
|
Factory 2 : |
12/A/1 and 13/B/1, Dahej Indl. Estate, Village Ambheta,
Talulka Vagra, District. Bharuch– 392130, Gujarat, India |
DIRECTORS
(AS ON 31.03.2014)
|
Name : |
Mr. Hrishikesh A. Mafatlal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rohit Arora |
|
Designation : |
Director |
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|
|
Name : |
Mr. V. R. Gupte |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. L. Jain |
|
Designation : |
Director - (GIC Nominee) |
|
|
|
|
Name : |
Mr. Vishad P. Mafatlal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D.N. Mungale |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. N. Sankar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. P. V. Bhide |
|
Designation : |
Director (w.e.f 26.10.2010) |
|
|
|
|
Name : |
Mr. C.R. Gupte |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S. R. Deo |
|
Designation : |
Executive Directors |
KEY EXECUTIVES
|
Name : |
Mr. V. K. Gupte |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. S. R. Deo |
|
Designation : |
President – Technical (w.e.f. – 1, January, 2014) |
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 |
|
|
|
|
|
|
|
|
727040 |
0.45 |
|
|
58224739 |
36.21 |
|
|
58951779 |
36.66 |
|
|
|
|
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
58951779 |
36.66 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
44480 |
0.03 |
|
|
1900285 |
1.18 |
|
|
880 |
0.00 |
|
|
5156814 |
3.21 |
|
|
639518 |
0.40 |
|
|
7741977 |
4.82 |
|
|
|
|
|
|
|
|
|
|
17889579 |
11.13 |
|
|
|
|
|
|
|
|
|
|
57339263 |
35.66 |
|
|
17585583 |
10.94 |
|
|
1278799 |
0.80 |
|
|
5000 |
0.00 |
|
|
1273799 |
0.79 |
|
|
94093224 |
58.52 |
|
|
|
|
|
Total Public shareholding (B) |
101835201 |
63.34 |
|
|
|
|
|
Total (A)+(B) |
160786980 |
100.00 |
|
|
|
|
|
(C) Shares held by Custodians and against
which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
160786980 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Trading of Rubber Chemicals. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
266 (Approximately) |
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Bankers : |
· HDFC Bank Limited · Export-Import Bank of India · AXIS Bank Limited ·
IDBI Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells LLP Chartered Accountants |
|
|
|
|
Solicitors and Advocates : |
·
Vigil Juris ·
PDS Legal |
|
|
|
|
Subsidiaries : |
· PIL Chemicals Private Limited (PIL) |
|
|
|
|
Enterprises over which Directors and Relatives of such personnel
exercise significant influence : |
· Navin Fluorine International Limited · Mafatlal Industries Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2014)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Equity Shares |
Rs.10/- each |
Rs.12000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
160786980 |
Equity Shares |
Rs.10/- each |
Rs.1607.870
Millions |
|
|
|
|
|
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
1607.870 |
1607.870 |
1607.870 |
|
(b) Reserves & Surplus |
2155.847 |
2032.538 |
1720.503 |
|
(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) |
3763.717 |
3640.408 |
3328.373 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
718.333 |
931.667 |
750.000 |
|
(b) Deferred tax liabilities (Net) |
389.732 |
268.877 |
219.016 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
114.965 |
117.956 |
182.300 |
|
Total Non-current
Liabilities (3) |
1223.030 |
1318.500 |
1151.316 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
590.591 |
373.363 |
54.588 |
|
(b) Trade
payables |
1240.993 |
714.574 |
627.746 |
|
(c) Other
current liabilities |
408.113 |
435.574 |
169.343 |
|
(d) Short-term
provisions |
138.107 |
137.258 |
128.351 |
|
Total Current
Liabilities (4) |
2377.804 |
1660.769 |
980.028 |
|
|
|
|
|
|
TOTAL |
7364.551 |
6619.677 |
5459.717 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
2970.315 |
2955.947 |
702.170 |
|
(ii)
Intangible Assets |
50.500 |
54.554 |
38.685 |
|
(iii)
Capital work-in-progress |
28.222 |
34.408 |
1265.532 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
12.330 |
|
(b) Non-current Investments |
473.058 |
473.058 |
250.558 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
457.579 |
518.624 |
533.146 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
3979.674 |
4036.591 |
2802.421 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1598.828 |
1154.395 |
1139.151 |
|
(c) Trade
receivables |
1477.186 |
1108.661 |
995.779 |
|
(d) Cash
and cash equivalents |
149.991 |
117.644 |
350.676 |
|
(e)
Short-term loans and advances |
156.146 |
198.288 |
170.683 |
|
(f) Other
current assets |
2.726 |
4.098 |
1.007 |
|
Total
Current Assets |
3384.877 |
2583.086 |
2657.296 |
|
|
|
|
|
|
TOTAL |
7364.551 |
6619.677 |
5459.717 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5961.439 |
4881.779 |
4814.910 |
|
|
|
Other Income |
107.570 |
138.737 |
232.455 |
|
|
|
TOTAL (A) |
6069.009 |
5020.516 |
5047.365 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3534.295 |
3033.771 |
2992.983 |
|
|
|
Purchases of stock-in-trade |
40.835 |
27.996 |
26.489 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(84.915) |
95.186 |
(70.868) |
|
|
|
Employee benefits expense |
410.133 |
356.422 |
345.479 |
|
|
|
Other expenses |
1451.839 |
1172.288 |
1192.154 |
|
|
|
Exceptional item |
20.345 |
(222.500) |
(2.245) |
|
|
|
TOTAL (B) |
5372.532 |
4463.163 |
4483.992 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
696.477 |
557.353 |
563.373 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
173.877 |
37.549 |
4.316 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
522.600 |
519.804 |
559.057 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
175.584 |
78.457 |
89.934 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
347.016 |
441.347 |
469.123 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
110.840 |
16.445 |
129.217 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
236.176 |
424.902 |
339.906 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
1499.446 |
1187.411 |
659.628 |
|
|
|
|
|
|
|
|
|
|
Transfer from Reserve for contingency |
0.000 |
0.000 |
300.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
96.500 |
96.472 |
96.472 |
|
|
|
Corporate tax on dividend |
16.400 |
16.395 |
15.651 |
|
|
BALANCE CARRIED
TO THE B/S |
1622.722 |
1499.446 |
1187.411 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2220.780 |
1896.045 |
1943.973 |
|
|
TOTAL EARNINGS |
2220.780 |
1896.045 |
1943.973 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1923.982 |
1230.291 |
1284.759 |
|
|
|
Stores & Spares |
0.815 |
1.334 |
1.470 |
|
|
|
Capital Goods |
2.519 |
129.025 |
7.794 |
|
|
TOTAL IMPORTS |
1927.316 |
1360.650 |
1294.023 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.47 |
2.64 |
2.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
3.89 |
8.46 |
6.73 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.82 |
9.04 |
9.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.06 |
7.22 |
11.93 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
0.12 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.35 |
0.36 |
0.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42 |
1.56 |
2.71 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
1607.870 |
1607.870 |
1607.870 |
|
Reserves & Surplus |
1720.503 |
2032.538 |
2155.847 |
|
Net worth |
3328.373 |
3640.408 |
3763.717 |
|
|
|
|
|
|
long-term borrowings |
750.000 |
931.667 |
718.333 |
|
Short term borrowings |
54.588 |
373.363 |
590.591 |
|
Total borrowings |
804.588 |
1305.030 |
1308.924 |
|
Debt/Equity ratio |
0.242 |
0.358 |
0.348 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from
Operations |
4,814.910 |
4,881.779 |
5,961.439 |
|
|
|
1.389 |
22.116 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from
Operations |
4,814.910 |
4,881.779 |
5,961.439 |
|
Profit |
339.906 |
424.902 |
236.176 |
|
|
7.06% |
8.70% |
3.96% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
----- |
|
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 |
No |
|
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 |
PERFORMANCE OF THE
COMPANY
The year continued to experience
challenging business conditions with the slowing down of GDP growth in India
and increased competition from foreign suppliers. The operating performance
consequently, got impacted particularly in the first half of financial year
2013-14.
In line with the depressed
automobile sector demand, majority of the company’s customers both in the
domestic as well as in the international market, undertook production cuts at
periodical intervals to align their production with demand. As a result there
was negligible growth in demand for Rubber Chemicals in the country. The silver
lining is that, at least some of the large economies like the US in the western
world are now showing healthy trends. The Indian economy too is expected to do
better in the coming year in the hope of a stable government at the centre,
which should augur well for their business.
The company achieved a
growth of 6.5% in its sales volumes as compared to the previous year through
sustained marketing efforts and also due to some exits/closures of a few local
and international Rubber Chemical players.
The gross turnover of the
company, for the year, touched Rs.6430.000 Millions as compared to Rs.5270.000
Millions in the previous year, representing an increase of about 22%. This
increase was possible due to a combination of Rupee depreciation, a change in
the product mix along with some price corrections which were done to offset
some rising input costs. While their efforts to improve their realisations
continue, they are severely constrained in this regard on account of the
aggressive dumping resorted to by their competitors, especially from China and
Korea. This in turn has also forced the European competitors to offer similar
aggressive pricing.
The production of rubber chemicals
and their intermediates, for the year was 37,333 MT as against 33,341 MT,
representing an increase of about 12% as compared to the previous year.
Unfortunately, the main product (Px-13) continues to suffer due to the
unrealistically low prices offered by international competitors. On the whole,
their selling prices continue to be unfavourably influenced and impacted by the
artificially low pricing adopted by competitors.
The Input costs, in sync
with the high crude oil and benzene prices, continued to show rising trend.
While their did manage to pass on some of these increases to their customers,
they were not commensurate with the increases they had to absorb.
EXPORTS
With some of the important
international markets showing some signs of improvement in the second half of
the current year, they registered a marginal growth in export volumes by 3%.
Due to a significant proportion of high value/speciality products in their
export basket as well as due to the weaker Rupee, the company managed to achieve
a substantially higher export turnover of Rs.2250.000 Millions as compared to
Rs.1880.000 Millions in the previous year. It would be worthwhile mentioning
that the company has over a period successfully developed and markets a few
speciality products, specifically tailored for its major international
customers, due to which it enjoys a niche position. As far as the other generic
products are concerned, the company enters the export segment, only out of a
compulsion to optimally utilise its own capacities in the absence of sufficient
orders from the domestic customers and not out of choice, since pricing in the
exports market is also vitiated by the aggressive dumping resorted by the
Chinese, Korean and other competitors.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC REVIEW
The economic activity in
the country was at a low key during the year, as GDP growth slowed down to
around 5% for the year. However some signs of improvements though minor are
visible since the last quarter. The outlook, particularly post elections, seems
more promising than the year.
Crude oil prices as in the
past few years, continue to remain at high levels. India being dependant on
large imports of crude oil, experienced an adverse impact in case of both,
economic growth as well as currency management. Rupee experienced huge
depreciation vis-a-vis US Dollar and other major currencies in the first half
of the financial year, which continued till the third quarter of the year.
During these volatile times, Rupee dipped close to Rs.70 per US$. Some
correction did take place in the last quarter on account of high forex inflows
into the country on the back of the upswing in the equity markets.
The uncertain political
scenario also compounded the problems further. This not only resulted in
hampering the Industrial growth in India for the second consecutive year but
also ensured that there were no major capital investments. Needless to mention,
this had a direct impact on the consumer demand. Automobile sector being one of
the key sectors of the economy, was badly affected. The company being a second
stage supplier to the Auto sector faced all these challenges in substantial
measure.
On the positive side, some
of the major economies like the US and Japan have started showing some encouraging
trends during the last few quarters. It is expected that the formation of the
new Indian Government post elections, at the centre, is expected to give some
boost to the manufacturing sector which in turn would show some improvement in
overall demand
pattern.
OPERATING
PERFORMANCE AND FINANCIAL PERFORMANCE FOR THE YEAR
The prices of practically
all the major inputs of the company continued to be at high levels. Due to the
aggressive dumping resorted to by the Chinese/Korean/European Manufacturers, the
company too had to occasionally cut down the production of certain key products
During the year, the
Company achieved a profit before tax of 347.000 Millions as compared to 441.300
Millions in 2012-13. The performance for the year should be viewed in the
context of higher depreciation, interest and establishment costs consequent on
setting up of Dahej operations site.
CORPORATE INFORMATION
The Company was
incorporated on 11 May 1961, and is engaged in manufacture of rubber chemicals.
The Company has manufacturing facilities at Navi Mumbai (Maharashtra) and at
Dahej (Gujarat). The products manufactured by the Company are used by the tyre
industry and other rubber processing industries.
CONTINGENT
LIABILITIES IN RESPECT OF:
|
Particulars |
31.03.2014 (Rs.
in millions) |
31.03.2013 (Rs.
in millions) |
31.03.2012 (Rs.
in millions) |
|
Claims against the Company not acknowledged as debts - Legal cases against the company |
6.227 |
14.058 |
20.288 |
|
Central excise duty and Customs duty demands dispute |
6.578 |
13.900 |
15.342 |
|
Income tax demands disputed |
107.430 |
86.583 |
281.688 |
|
Sales tax demands disputed |
39.381 |
36.436 |
79.487 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10435314 |
14/06/2013 |
350,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B78953569 |
|
2 |
10315780 |
03/09/2012 * |
500,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B58723214 |
|
3 |
10274532 |
03/09/2012 * |
750,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B58865171 |
|
4 |
10006868 |
10/04/2013 * |
650,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B74190315 |
|
5 |
90230121 |
31/01/2006 |
270,000,000.00 |
UTI BANK LIMITED |
NARIMAN POINT
BRANCH, ATLANTA POINT BRANCH; ATLAN |
- |
|
6 |
90241373 |
21/03/2005 |
152,289,030.00 |
STATE BANK OF INDIA |
BRANCH, MUMBAI, MAHARASHTRA, INDIA |
- |
|
7 |
90223229 |
21/03/2001 |
120,000,000.00 |
ICICI LIMITED |
ICICI TOWERS; BANDRA
- KURLA COMPLEX, BANDRA EAST |
- |
|
8 |
90222774 |
16/05/2000 * |
300,000,000.00 |
ICICI LIMITED |
163, BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
9 |
90222640 |
04/06/1996 |
220,000,000.00 |
INFRASTRUCTURE LEASING AND FINANCIAL SERVICES LIMITED. |
MAHINDRA TOWERS; 4TH FLOOR, DR. G. M. BHOSALE MARG, BOMBAY, MAHARASHTRA - 400018, INDIA |
- |
|
10 |
90222510 |
19/06/1995 |
20,000,000.00 |
ABN AMRO BANK N.V. |
14; VEER NARIMAN ROAD, FORT, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
11 |
90222443 |
16/02/1995 |
30,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G. N. VAIDYA MARG, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
12 |
90222425 |
26/12/1994 |
300,000,000.00 |
SCICI LIMITED. |
141, MARKER TOWERS F; CUFFE PARADE, BOMBAY, MAHARASHTRA - 400005, INDIA |
- |
|
13 |
90222318 |
19/04/1994 |
175,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400021, INDIA |
- |
|
14 |
90222269 |
21/12/1993 |
37,800,000.00 |
ABN AMRO BANK N.A |
14; VEER NARIMAN ROAR, FORT, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
15 |
90222254 |
24/11/1993 |
31,200,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, ]JUSTICE G. N. VAIDYA MARG, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
16 |
90225933 |
24/11/1993 * |
265,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G. N. VAIDYA MARG, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
17 |
90222226 |
13/09/1993 |
50,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, FORT, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
18 |
90222218 |
31/12/1994 * |
70,000,000.00 |
CORPORATION BANK |
INDUSTRIAL FINANCE
BRANCH; BHARAT HOUSE, GROUND F |
- |
|
19 |
90222213 |
07/04/1994 * |
150,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH,
1ST FLOOR; UNION BANK |
- |
|
20 |
90222172 |
09/04/1993 |
30,000,000.00 |
CREDIT LYONNAIS |
SCINDIA HOUSE, BALLARD PIAR, BOMBAY, MAHARASHTRA - 400038, INDIA |
- |
|
21 |
90224353 |
14/07/1992 |
1,500,000.00 |
BARCLAYS BANK OLC |
54; LOMBARD STREET, LONDON, UNITED KINGDOM |
- |
|
22 |
90222065 |
17/06/1992 |
40,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH; 1ST FLOOR, 239; VIDHAN BHAVAN MARG, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
23 |
90225864 |
17/06/1992 |
40,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH; 1ST FLOOR, UNION BANK BHAVAN; 239; VIDHAN BHAVAN MARG, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
24 |
90222031 |
06/03/1992 |
30,000,000.00 |
ABN AMRO BANK N.V. |
14; VEER NARIMAN
ROAD, BOMBAY, MAHARASHTRA - 40002 |
- |
|
25 |
90221979 |
07/11/1991 |
150,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE
BRANCH; UNION BANK BHAVAN, 1ST |
- |
|
26 |
90221948 |
08/09/1995 * |
100,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
27 |
90221722 |
15/12/1993 * |
30,000,000.00 |
BANK OF INDIA |
NARIMAN POINT BRANCH, AIR INDIA BUILDING; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
28 |
90225729 |
15/12/1993 * |
30,000,000.00 |
BANK OF INDIA |
NARIMAN POINT BRANCH, AIR INDIA BUILD; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
29 |
90221488 |
30/03/1989 * |
12,000,000.00 |
INDUSTRIAL RECONSTRUCTION BANK OF INDIA |
19, NETAJI SUBASH ROAD, CALCUTTA, WEST BENGAL - 700001, INDIA |
- |
|
30 |
90221211 |
26/08/1985 |
4,500,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORP. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
31 |
90225542 |
23/08/1985 |
15,000,000.00 |
BANK OF INDIA |
COMMERCIAL BRANCH; BANKS STREET, FORT, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
32 |
90221097 |
30/07/1984 * |
22,300,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
NARIMAN BHAVAN; 227, VINAY K. SHAH MARG; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
33 |
90221093 |
27/02/1984 |
20,000,000.00 |
THE HONGKONG AND SHANGHAI BANKING CORPORATION |
50/60, MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
34 |
90221055 |
23/08/1985 * |
13,786,824.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
35 |
90221053 |
30/07/1984 * |
30,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
NARIMAN BHAVAN; 227, VINAY K. SHAH MARG; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
36 |
90221025 |
19/04/1983 |
30,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
37 |
90220999 |
04/08/1988 * |
25,500,000.00 |
THE INDUSTRIAL CREDIT
AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
38 |
90226533 |
19/01/1983 |
14,000,000.00 |
THE INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANKOF BARODA BUILDING, 16; PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA |
- |
|
39 |
90220994 |
22/12/1982 |
20,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
40 |
90220954 |
31/03/1982 |
1,500,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPORATION OF |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
41 |
90225479 |
05/03/1982 |
20,000,000.00 |
MERCANTILE BANK LIMITED. |
52/60, MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
42 |
90220909 |
26/06/1981 |
10,900,000.00 |
THE INDUSTRIAL
CREDIT AND IVESTMENT CORP. OF INDIA L |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
43 |
90220872 |
01/12/1982 * |
25,000,000.00 |
SYNDICATE BANK |
NARIMAN POINT BRANCH, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
44 |
90225461 |
15/12/1980 |
25,000,000.00 |
SYNDICATE BANK |
NARIMAN POINT BRANCH, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
45 |
90220819 |
16/01/1980 |
5,000,000.00 |
LIFE INSURACE CORPORATION OF INDIA |
YOGAKSHEMA, JEEVAN BIMA MARG, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
46 |
90220801 |
20/06/1979 |
7,252,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
47 |
90220642 |
06/07/1972 |
10,200,000.00 |
THE INDUSTRIAL CREDIT AND INVE. CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
* Date of charge modification
FIXED ASSETS
·
Land Leasehold
·
Building
·
Plant and Machinery
·
Office Equipments
including computers
·
Furniture, Fixtures and
Equipment
·
Vehicle
·
Patents
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.19 |
|
|
1 |
Rs.102.56 |
|
Euro |
1 |
Rs.81.91 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NIT |
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 |
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 |
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 |
|
58 |
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.