MIRA INFORM REPORT
|
Report Date : |
06.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
ORIENT ABRASIVES LIMITED |
|
|
|
|
Registered
Office : |
1307, Chiranjiv Tower, 43, Nehru Place, New Delhi – 110019 |
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Country : |
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|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
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Date of
Incorporation : |
12.11.1971 |
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|
|
|
Com. Reg. No.: |
55-005854 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.119.652
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24299DL1971PLC005854 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RKTO00158E |
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|
|
|
PAN No.: [Permanent Account No.] |
AAACO0221C |
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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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|
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Line of Business
: |
The company engaged in the production and selling of Fused Aluminum Oxide Grains, Calcined Products and Generation of Power. |
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|
|
|
No. of Employees
: |
700 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5700000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is well established company having a fine track record.
Financial position of the company seems to be sound and healthy. The
performance capability is good. Trade relations are reported as fair. Business is active. Payment
terms are regular and as per commitment. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs.39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital firms
in India during 2013, registering a drop of about 18 % over the previous year.
The Information Technology and IT-Enabled Services Industry retained its
status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs.35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: A |
|
Rating Explanation |
Have adequate degree of safety and carry low
credit risk. |
|
Date |
20.01.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A1 |
|
Rating Explanation |
Have very strong degree and safety and carry
lowest credit risk. |
|
Date |
20.01.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
1307, |
|
Tel. No.: |
91-11-26449480/ 26462225/ 26425446/ 26425447/ 46425400 |
|
Fax No.: |
91-11-26443859/ 46425444 |
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E-Mail : |
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|
Website : |
http://www.orientabrasives.com |
|
Location : |
Owned |
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|
|
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Factory 1 : |
High Alumina Raw Materials (Abrasives Grains and Power Division) GIDC Industrial Area, Porbandar - 360577, Gujarat, India |
|
Tel. No.: |
91-286-242913/ 241788/ 789/ 246064 |
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Fax No.: |
91-286-242719 |
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E-Mail : |
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Factory 2 : |
Refractories Division: SP – 148B, RIICO Industrial Area, Bhiwadi, District Alwar, |
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Factory 3 : |
13/1B, Mullathopu, Mamangam Post, Salem – 632302, Tamilnadu,
India |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Rajendra Kumar Rajgarhia |
|
Designation : |
Chairman |
|
Date of Birth : |
14.08.1938 |
|
Date of Appointment
: |
09.12.1980 |
|
Experience : |
Mr. R K Rajgarhia is an eminent industrialist with about 48
years of experience. He is the eldest brother of Company’s Managing Director.
He has been associated with the Company since 1980 as an ordinary Director.
He has been the Chairman of the Company since May, 1998. |
|
Directorship in other Companies : |
1. APM Industries Limited 2. Perfectpac Limited 3. Gini Silk Mills Limited 4. Rajgarhia Leasing and Financial Services Private Limited |
|
|
|
|
Name : |
Mr. Rama Shankar Bajoria |
|
Designation : |
Director |
|
Date of Birth : |
17.05.1943 |
|
Date of Appointment
: |
30.07.2001 |
|
Qualifications : |
B.Com. |
|
Experience : |
Wide experience in Rubber Industry |
|
Directorship in other Companies : |
1. Orient Refractories Limited 2. Farseen Rubber Industries Limited 3. Rajputana Investment and Finance Limited |
|
|
|
|
Name : |
Mr. Sudhir Kumar Samarendra Narayan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Umesh K Khaitan |
|
Designation : |
Director |
|
Date of Birth : |
20.12.1948 |
|
Date of Appointment
: |
11.02.1997 |
|
Experience : |
Mr. Umesh Kumar Khaitan is an accomplished Lawyer
practicing both in the Supreme Court and the High Courts. He has experience
of about 42 years in the field of law. He is also on the Board of some other
well known companies. |
|
Directorship in other Companies : |
1. United Holdings Private Limited 2. Sutlej Textiles and Industries Limited 3. Indo Continental Hotels and Resorts Limited 4. Amrit Agro Industries Limited 5. Aiyer Manis Rubber Estate Limited 6. Nehru Place Hotels Limited 7. Hindustan Everest Tools Limited 8. Ashutosh Holdings Private Limited 9. Shreeparna Holdings Private Limited 10. K and K Feast Makers Private Limited 11. Oriental Bank of Commerce 12. Ferro Alloys Corporation Limited 13. Combine Accurate Financial Services (India) Limited 14. Numero Uno Clothing Limited 15. Geepee Agri Products Private Limited 16. Combine Fin Products Private Limited |
|
|
|
|
Name : |
Mr. Shri Gopal Rajgarhia |
|
Designation : |
Managing Director |
|
Qualification : |
B. Tech. (Hons.), S. M. (MIT) |
|
Date of Appointment
: |
01.08.1973 |
|
|
|
|
Name : |
Mr. Prem Prakash Khanna |
|
Designation : |
Executive Director |
|
Date of Birth : |
03.04.1939 |
|
Date of Appointment
: |
07.10.2006 |
|
Qualifications : |
B.Sc., BE, AMIE |
|
Experience : |
Wide experience in setting up manufacturing and power plants of the Company. |
|
Directorship in other Companies : |
1. Orient Refractories Limited |
KEY EXECUTIVES
|
Name : |
Mr. Satish Gupta |
|
Designation : |
Finance Manager |
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|
|
|
Name : |
Mr. R K Khanna |
|
Designation : |
President |
|
Date of Birth/Age : |
25.01.1953 |
|
Date of Appointment : |
11.08.2012 |
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Qualification : |
B.E. |
|
Experience : |
Wide experience in implementation of various projects works,
maintenance and production. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2013)
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter
Group |
||
|
|
|
|
|
|
31719277 |
26.51 |
|
|
15580 |
0.01 |
|
|
31734857 |
26.53 |
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
31734857 |
26.53 |
|
|
|
|
|
(B) Public Shareholding |
||
|
|
|
|
|
|
40500 |
0.03 |
|
|
3264273 |
2.73 |
|
|
3304773 |
2.76 |
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|
|
|
|
|
|
|
|
|
37883126 |
31.66 |
|
|
|
|
|
|
|
|
|
|
21837068 |
18.25 |
|
|
22614017 |
18.90 |
|
|
2265359 |
1.89 |
|
|
445281 |
0.37 |
|
|
75416 |
0.06 |
|
|
1744662 |
1.46 |
|
|
84599570 |
70.71 |
|
|
|
|
|
Total Public shareholding (B) |
87904343 |
73.47 |
|
|
|
|
|
Total (A)+(B) |
119639200 |
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) |
119639200 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company engaged in the production and selling of Fused
Aluminum Oxide Grains, Calcined Products and Generation of Power. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
700 (Approximately) |
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Bankers : |
· HDFC Bank Limited, Delhi Branch, India · State Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
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|
|
|
The Enterprises controlled, owned or significantly influenced by key
managerial personnel or their relatives: |
· Unifrax India Limited · Pyramid Abrasives Private Limited · Hindustan General Industries Limited · HGI Finance and Leasing Limited · Rovo Marketing Private Limited · Madhushree Properties Private Limited · Orient Coated Private Limited · Orient Refractories Limited after November 15, 2011 · Zipper Trading Enterprises Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2013)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.1/- each |
Rs.120.000 Millions |
|
400000 |
6% redeemable cumulative preference shares |
Rs.100/- each |
Rs.40.000 Millions |
|
|
Total |
|
Rs.160.000
Millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119639000 |
Equity Shares |
Rs.1/- each |
Rs.119.639
Millions |
|
|
Shares forfeited |
|
Rs.0.013 Million |
|
|
Total |
|
Rs.119.652 Millions |
Reconciliation of the equity
shares outstanding at the beginning and at the end of reporting period
|
Particulars |
Rs. In Millions |
|
At the beginning of the year |
|
|
119639000 (Previous year 119639000) equity shares of Rs. 1.00 each |
119.639 |
|
Outstanding at the year end |
|
|
119639000 (Previous year 119639000) equity shares of Rs. 1.00 each |
119.639 |
Terms/rights attached to
equity shares
The
Company has only one class of equity shares having a par value of Rs. 1.00 per share.
The holder of each fully paid equity share is entitled to one vote. The Company
declares and pays dividends in Indian rupees. The dividend proposed by the
board of directors is subject to the approval of the shareholders in the
ensuing annual general meeting.
During
the year ended March 31, 2013 the amount of per equity share dividend
recognized as distributions to equity shareholders is Rs.0.35 (Previous year
Rs.0.20)
In
the event of liquidation of the Company, 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.
Aggregate number of bonus shares
issued and shares issued for consideration other than cash during the period of
five years immediately preceding the reporting date:
(Rs. in Millions)
|
Particulars |
March 31, 2013 |
|
Equity shares issued as fully paid bonus shares by capitalisation of capital redemption reserve, securities premium and general reserve |
59.820 |
Details of shareholders
holding more than 5% shares in the Company
|
Name |
March 31, 2013 |
|
|
|
No. |
% holding |
|
Equity
Shares of Rs.1.00 each fully paid up |
|
|
|
Mr.
S G Rajgarhia |
17,786,000 |
14.87% |
|
Ms.
Anisha Mittal |
14,826,000 - |
12.39% - |
|
S
G Rajgarhia (HUF) |
|
|
|
Ms.
Bhavna Rajgarhia |
14,762,000 |
12.34% |
|
Mrs.
Usha Rajgarhia |
6,582,000 |
5.50% |
As per of the Company, including its register of
shareholders / members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and
beneficial ownerships of shares.
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 |
119.652 |
119.652 |
119.652 |
|
(b) Reserves & Surplus |
1308.121 |
1197.627 |
1717.427 |
|
(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) |
1427.773 |
1317.279 |
1837.079 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
90.458 |
130.025 |
191.526 |
|
(b) Deferred tax liabilities (Net) |
96.026 |
102.308 |
99.332 |
|
(c)
Other long term liabilities |
0.000 |
3.566 |
7.543 |
|
(d)
long-term provisions |
4.061 |
4.287 |
9.876 |
|
Total
Non-current Liabilities (3) |
190.545 |
240.186 |
308.277 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
102.732 |
353.919 |
597.250 |
|
(b)
Trade payables |
168.134 |
127.668 |
402.891 |
|
(c)
Other current liabilities |
157.296 |
106.738 |
179.304 |
|
(d)
Short-term provisions |
56.463 |
37.406 |
21.783 |
|
Total
Current Liabilities (4) |
484.625 |
625.731 |
1201.228 |
|
|
|
|
|
|
TOTAL |
2102.943 |
2183.196 |
3346.584 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1122.190 |
1229.432 |
1401.048 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
2.292 |
|
(iii)
Capital work-in-progress |
6.465 |
6.321 |
35.818 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.000 |
0.526 |
0.526 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
97.654 |
117.640 |
251.807 |
|
(e)
Other Non-current assets |
11.009 |
3.205 |
9.040 |
|
Total
Non-Current Assets |
1237.318 |
1357.124 |
1700.531 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
503.000 |
471.702 |
829.217 |
|
(c) Trade receivables |
265.394 |
287.341 |
707.191 |
|
(d) Cash and cash equivalents |
19.152 |
18.521 |
31.508 |
|
(e) Short-term loans and advances |
50.067 |
25.847 |
41.621 |
|
(f) Other current assets |
28.012 |
22.661 |
36.516 |
|
Total Current
Assets |
865.625 |
826.072 |
1646.053 |
|
|
|
|
|
|
TOTAL |
2102.943 |
2183.196 |
3346.584 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1819.649 |
1671.363 |
3658.897 |
|
|
|
Other Income |
26.020 |
12.198 |
39.014 |
|
|
|
TOTAL (A) |
1845.669 |
1683.561 |
3697.911 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material and components consumed |
544.332 |
516.229 |
1199.332 |
|
|
|
Purchase of Traded goods |
0.000 |
0.000 |
351.621 |
|
|
|
Increase in inventories of finished goods |
(16.460) |
(50.887) |
(129.161) |
|
|
|
Employee benefits expenses |
146.048 |
117.908 |
305.559 |
|
|
|
Other expenses |
785.821 |
785.638 |
1168.028 |
|
|
|
TOTAL (B) |
1459.741 |
1368.888 |
2895.379 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
385.928 |
314.673 |
802.532 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
52.328 |
65.781 |
78.388 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
333.600 |
248.892 |
724.144 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
127.398 |
123.130 |
129.821 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
206.202 |
125.762 |
594.323 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
46.718 |
34.357 |
125.972 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
159.484 |
91.405 |
468.351 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
446.970 |
413.375 |
384.534 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
60.000 |
30.00 |
300.000 |
|
|
|
Dividend |
41.874 |
23.928 |
119.639 |
|
|
|
Tax on Dividend |
7.116 |
3.882 |
19.871 |
|
|
BALANCE CARRIED
TO THE B/S |
497.464 |
446.970 |
413.375 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports at F.O.B. Value |
82.408 |
7.256 |
408.078 |
|
|
|
Royalty |
0.000 |
0.000 |
3.101 |
|
|
TOTAL EARNINGS |
82.408 |
7.256 |
411.179 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2.870 |
5.783 |
190.882 |
|
|
|
Stores & Spares |
40.994 |
33.407 |
40.669 |
|
|
|
Capital Goods |
0.000 |
10.104 |
0.804 |
|
|
|
Goods purchased for resale |
0.000 |
0.000 |
7.380 |
|
|
TOTAL IMPORTS |
43.864 |
49.294 |
239.735 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.33 |
0.76 |
3.91 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net
Sales |
520.800 |
428.500 |
420.200 |
|
Total
Expenditure |
433.600 |
359.100 |
380.000 |
|
PBIDT
(Excl OI) |
87.100 |
69.400 |
40.300 |
|
Other
Income |
2.200 |
2.700 |
0.500 |
|
Operating
Profit |
89.300 |
72.100 |
40.800 |
|
Interest |
7.100 |
6.600 |
6.100 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
82.300 |
65.500 |
34.700 |
|
Depreciation |
31.700 |
31.800 |
31.700 |
|
Profit
Before Tax |
50.600 |
33.800 |
3.000 |
|
Tax |
17.600 |
5.800 |
2.200 |
|
Provisions
and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit
After Tax |
33.000 |
28.000 |
0.900 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
33.000 |
28.000 |
0.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.64
|
5.43 |
12.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.33
|
7.52 |
16.24 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.84
|
5.78 |
17.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.10 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.14
|
0.37 |
0.43 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.79
|
1.32 |
1.37 |
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 |
119.652 |
119.652 |
119.652 |
|
Reserves & Surplus |
1,717.427 |
1,197.627 |
1,308.121 |
|
Net worth |
1,837.079 |
1,317.279 |
1,427.773 |
|
|
|
|
|
|
long-term borrowings |
191.526 |
130.025 |
90.458 |
|
Short term borrowings |
597.250 |
353.919 |
102.732 |
|
Total borrowings |
788.776 |
483.944 |
193.190 |
|
Debt/Equity ratio |
0.429 |
0.367 |
0.135 |
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) |
|
Sales |
3,658.897 |
1,671.363 |
1,819.649 |
|
|
|
-54.321 |
8.872 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR) |
(INR) |
(INR) |
|
Sales |
3,658.897 |
1,671.363 |
1,819.649 |
|
Profit |
468.351 |
91.405 |
159.484 |
|
|
12.80% |
5.47% |
8.76% |
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 |
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 |
Yes |
|
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 |
No |
|
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 |
UNSECURED LOAN:
|
Particulars |
As on 31.03.2013 (Rs. in Millions) |
As on 31.03.2012 (Rs. in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Other loans and
advances |
|
|
|
Deposits from shareholders |
7.100 |
7.100 |
|
Deposits from public |
0.550 |
0.550 |
|
Less: Current
maturities of deposits disclosed |
|
|
|
under other current liabilities |
(1.200) |
(4.950) |
|
SHORT TERM
BORROWINGS |
|
|
|
Loan from body corporate |
18.682 |
13.354 |
|
Loan from director |
25.402 |
10.061 |
|
|
|
|
|
Total |
50.534 |
26.115 |
OPERATIONS REVIEW AND
FUTURE OUTLOOK
During the year, the performance of the Company was satisfactory. The gross turnover of the Company increased to Rs.2002.539 Millions during the year from Rs.1836.079 Millions in the previous year. Accordingly gross profit and net profit were Rs.206.202 Millions and Rs.159.484 Millions respectively as compared to Rs.125.762 Millions and Rs.91.405 Millions respectively in the previous year. The turnover of the abrasives grains decreased to Rs.1145.691 Millions during the year from Rs.1263.244 Millions in the previous year.
During the year, the Company has sold non-plant grade bauxite amounting to Rs.248.839 Millions which includes export sale of Rs.80.442 Millions. The management expects that the Company will sale/export non-plant grade bauxite at various mines in Jamnagar district, Gujarat, subject to approval from the state government.
Company has also wind generation power plants having capacity of 11.1 MW, located at Jodhpur and Jaisalmer in Rajasthan and Kalmangi and Gajendragarh in Karnataka. These plants are operating satisfactorily, the power generated by these plants are sold to the respective state power distribution companies. During the year gross revenue for sale of power (wind energy) increased to Rs.89.557 Millions from Rs.82.413 Millions.
The Company has a total thermal power plant capacity of 18 Mega Watt (MW) out of which 9 MW is based on coal and 9 MW on furnace oil. Due to unaffordable price of furnace oil, the furnace oil based power plant is used as and when required and found viable.
The directors are hopeful that the performance of the Company in the current year will remain satisfactory.
GENERAL REVIEW
The Company was incorporated in the year 1971 in New Delhi. The Company has two business divisions namely the Abrasives Grains, Refractory Monolithich Division at Porbandar, Gujarat that manufactures fused alumina grains. calcined products, refractory castables and monolithics and the Power division comprising of thermal power plants and wind turbine generators.
The Abrasives Grains Division, the first of Company’s all divisions, was established in the year 1974.The Company established Refractory Division in 1985 at Bhiwadi, Rajasthan, which was demerged in the year 2011-12.
The Company also has a Power Division that generates electricity for captive consumption which was set up in 1998 and expanded in 2007 with the addition of a 9 MW coal based thermal power plant. In 2010, the Company ventured into green energy projects by setting up wind turbines. At present the total commissioned capacity of the wind farms is 11.1 MW. The power generated from the windmills is sold to the state electricity board with which there are power purchase agreements in place.
BUSINESS
DIVISIONS/SEGMENTS
As mentioned above, the Company has two major business segments in terms of the nature of output (i) Fused Aluminium Oxide Grains including Calcined Products and Refractories Monolithics and (ii) Electricity (Power Division), which have been elucidated in the following paragraphs:
ABRASIVE GRAINS AND
REFRACTORY MONOLITHICS
The Abrasives Grains Division at Porbander is the first manufacturing unit set up by the Company. The Division manufactures calcined bauxite and fused aluminium oxide abrasive grains. Raw bauxite and calcined alumina are the basic raw materials used for the manufacture of abrasive grains. Raw bauxite is procured from mines owned by the Company and others and calcined alumina is purchased from aluminium companies, Hindalco Industries Limited being prominent amongst them. These products are used in the manufacture of refractories and grinding wheels and coated abrasives.
The Company manufactures refractory castables and monolithics used in the cement and steel industries. It is also located in Porbandar, Gujarat.
POWER GENERATION
The Company has a total thermal power plant capacity of 18 MW out of which 9 MW is based on coal and 9 MW on furnace oil. The thermal power plant based on coal is more economical and is operated at full capacity. The electricity from this power division is meant for captive consumption by the manufacturing division at Porbandar.
The Company also has wind power generation capacity of 11.1 MW. The power generated by these plants is sold to the respective state power distribution companies.
FINANCIALS AND
INTERNAL CONTROL
During the year the gross turnover of the Company was Rs.2002.539 Millions and gross profit and net profit were Rs.206.202 Millions and Rs.159.484 Millions respectively. The turnover of the abrasives grains was Rs.1145.691 Millions. During the year, the Company has sold/ export non plant grade bauxite amounting to Rs. 248.839 Millions. The management expects that the Company will sale/export non-plant grade bauxite at various mines in Jamnagar district, Gujarat, subject to approval from the state government. During the year gross revenue for sale of power (wind energy) was Rs.89.557 Millions.
The Company has an adequate internal control system which is commensurate with its size and which adopts the best practices prevalent in the industry. Besides conducting internal audit at regular intervals and implementing the measures suggested from time to time there is a statutory audit committee comprising of independent directors in place to oversee the internal control processes in the Company.
CONCERNS AND FUTURE
OUTLOOK
The demand for abrasive grains on the domestic front is increasing steadily. The Company has adequate production capacity and technology to meet the increased demand while maintaining the quality.
The abrasive grains division is a power intensive unit and at present it depends on the State supplier and captive thermal power plant to fulfill its energy needs. The in house power plant was set up to economise on the cost of electricity and to avail uninterrupted supply. However since the cost of generation has increased over the years due to steep rise in fuel costs, the capacity availed from the State Electricity Board is being reviewed as an alternative. There was an increase in demand of royalty by the Gujarat Government for the low grade bauxite mined and exported by the Company in the previous years, which is being contested at higher levels by all the affected parties including the Company. The availability of abrasive grade bauxite is a matter of concern. The reserves in their mines are depleting. The Company is making efforts to get more mining leases. Efforts are also underway for importing the raw material.
Except for the above concerns, the future of the Company looks encouraging. The wind turbines have started generation on full scale which will increase the sales and profits in the coming years.
CONTINGENT
LIABILITIES (NOT PROVIDED FOR) IN RESPECT OF
(Rs.
in Millions)
|
Particulars |
31.03.2013 |
31.03.2012 |
|
Power claim matters decided in favour of the Company by the District Court (Civil Court, Senior Division, Porbandar) but Paschim Gujarat Vidyut Company Limited has gone into further appeal before Hon'ble High Court of Gujarat.* |
33.802 |
33.802 |
|
Sales tax and interest demand raised by Kolkata Sales tax authorities for non-submission of declarations forms for the year 1993-94 |
0.375 |
0.375 |
|
Demand raised by the Income Tax Authorities, being disputed by the Company (refer note A below) |
218.773 |
217.597 |
|
Demand for payment of royalty (refer note B below) |
380.946 |
380.946 |
|
Cases pending with Labour Courts# |
(Amount unascertainable) |
|
*In view of decision already in favour of Company by the District Court (Civil Court, Senior Division, Porbandar) and based on discussion with the solicitors, the management believes that the Company has a strong chance and hence no provision there against is considered necessary.
#In view of large number of cases, it is not practicable to disclose individual details of all the cases. On the basis of current status of individual case and as per legal advice obtained by the Company, wherever applicable, the Company is of view that no provision is required in respect of these cases.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10387307 |
13/06/2013 * |
75,000,000.00 |
INDUSIND BANK LIMITED |
DR. GOPAL DAS BUILDING, 28, BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA |
B77588861 |
|
2 |
10231125 |
12/12/2011 * |
240,000,000.00 |
STANDARD CHARTERED BANK (Acting as an Security Agent) |
CREDIT DOCUMENTATION UNIT, NARAIN MANZIL, 23 BARA KHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA |
B28178994 |
|
3 |
10055256 |
08/11/2012 * |
160,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA |
B62503032 |
|
4 |
10044733 |
30/11/2012 * |
180,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, VARDHMAN TRADE CENTER,DDA BUILDING,NEHRU PLACE, NEW DELHI, Delhi - 110019, INDIA |
B64349665 |
* Date of charge modification
FIXED ASSETS:
· Land (Leasehold, Freehold and Improvement)
· Building
· Plant and Machinery
· Furniture and Fixture
· Office Equipments
· Vehicles
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.61.86 |
|
|
1 |
Rs.103.06 |
|
Euro |
1 |
Rs.84.92 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
52 |
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.