MIRA INFORM REPORT
|
Report Date : |
22.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
TRANSPEK-SILOX INDUSTRY LIMITED |
|
|
|
|
Registered
Office : |
Kalali Road, Atladra, Vadodara – 390012, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2012 |
|
|
|
|
Date of
Incorporation : |
29.03.1996 |
|
|
|
|
Com. Reg. No.: |
04-029188 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 120.609 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U28999GJ1996PLC029188 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDT00555C |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of inorganic chemicals for a
wide range of applications such as Textile, Paper and Pulp, Tyre and Rubber,
Paint and Plastics etc. |
|
|
|
|
No. of Employees
: |
1000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
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 8200000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track
record. Management of the company has failed to file its financial for the
year 2013 with the government department. As per available financials (2012), financial position of the company
seems to be sound. Directors are reported to be experienced and respectable businessmen. Overall fundamentals of the company seems to be strong and healthy. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
State-run banks hired nearly
300000 personnel including more than 94000 officers in the last four years, according
to the Indian Banks Association. A study by trade lobby Assocham in September
2013 indicated that banks would need 800000 people in the next six years. It
estimated that state-run lenders alone would hire 50000 people in 2013/14.
The Competition Commission of
India plans to issue final orders within a broad time-frame of one year in
matters where it decides to carry out detailed investigations. The number of
complaints received by the watchdog which keeps tabs on unfair trade practices
in the market place.
The government has detected
custom tax evasion totaling around Rs 37920 mn in 14 states until December.
Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs
8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.
Connaught Place in New Delhi
slipped four notches to become the world’s eighth most expensive office
locations. London’s West End is the world’s most expensive office market.
There are 4.072 mn number of
high value spenders under the scanner of the income tax department. The income
tax department has information that they have made cash deposits announcing to
Rs 1 mn or more in their savings bank accounts in the current financial year.
It plans to check potential evasion before the closing of the financial year on
March 31.
Estimated pharmaceutical sales
in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago.
The life sciences and health care industry is up against challenges such as
quality management, says a recent Deloitte report.
The gross non-performing assets
of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months
of the financial year. In absolute terms, the 40 listed banks added Rs 3386
crore to their gross NPAs in nine months with the State Bank of India leading
with the State Bank of India leading with an accretion of Rs 16610 crore.
The inflow of smuggled gold
doubled in 2013 following restrictions to curb the supply from official
channels to contain the current account deficit. China surpassed India in the
demand for gold for the first time in 2013 due to liberalization of gold
trading norms by its local governments.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA (Long Term Rating) |
|
Rating Explanation |
Have high degree of safety and carry very low credit risk. |
|
Date |
25.04.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Rating) |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
25.04.2013 |
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 PARTED BY
|
Name : |
Mr. Varghese |
|
Designation : |
Export Department |
|
Contact No.: |
91-265-2680401 |
|
Date : |
19.03.2014 |
LOCATIONS
|
Registered Office/ Factory : |
Kalali Road, Atladra, Vadodara – 390012, Gujarat, India |
|
Tel. No.: |
91-265-2680401/ 2/ 3/ 4/ 5 |
|
Fax No.: |
91-265-2680407/ 2680062 |
|
E-Mail : |
rjeevm@tilbrd.com (Domestic) rajeevn@tilbrd.com (Exports) anirudh@tsilbrd.com (Purchase) creer@tsilbrd.com (HRM) |
|
Website : |
|
|
Location: |
Owned |
DIRECTORS
AS ON 14.03.2013
|
Name : |
Mr. Ashwin Chmpraj Shroff |
|
Designation : |
Chairman |
|
Address : |
B-15, Vasanta Theoophical Society, Juhu Road, Juhu, Mumbai,
Maharashtra, India |
|
Date of Birth/Age : |
22.01.1945 |
|
Date of Appointment : |
18.01.2001 |
|
DIN No.: |
00019952 |
|
|
|
|
Name : |
Mr. Paresh Manilal Saraiya |
|
Designation : |
Managing Director |
|
Address : |
18, Chrotar Society, Old Padra Road, Vadodara, , Pin – 390020,
Gujarat, India |
|
Qualification: |
B. E.(Mech.) |
|
Date of Birth/Age : |
12.08.1953 |
|
Date of Appointment : |
19.01.2001 |
|
DIN No.: |
00063971 |
|
|
|
|
Name : |
Mr. Tigrane Mouchegh Djierdjian |
|
Designation : |
Director |
|
Address : |
26, Boulevard DV Tenao, Monaco, France26, Boulevard DV Tenao, Monaco,
France |
|
Date of Birth/Age : |
02.09.1948 |
|
Date of Appointment : |
19.01.2001 |
|
DIN No.: |
00030676 |
|
|
|
|
Name : |
Mr. Antonio Angelo Di Nallo |
|
Designation : |
Director |
|
Address : |
75 Avenue De Gulle, F 78600 Maisons Laffitte, France |
|
Date of Birth/Age : |
29.09.1948 |
|
Date of Appointment : |
19.01.2001 |
|
DIN No.: |
00028439 |
|
|
|
|
Name : |
Mr. Philippe Georges Coster |
|
Designation : |
Director |
|
Address : |
18, Rue Du Werihet, 4052, Beaufays, Belgium |
|
Date of Birth/Age : |
24.04.1960 |
|
Date of Appointment : |
19.01.2001 |
|
DIN No.: |
00028008 |
|
|
|
|
Name : |
Mr. Robert Alfred De Coster |
|
Designation : |
Director |
|
Address : |
8 LA Clairiere B-5190, Onoz, jemeppe Sur Sambre, Belgium |
|
Date of Birth/Age : |
01.10.1943 |
|
Date of Appointment : |
19.09.2002 |
|
DIN No.: |
00030721 |
|
|
|
|
Name : |
Mr. Lakshminarsimhachari Rajgopaln |
|
Designation : |
Director |
|
Address : |
A-3, Sahyog, Gorwa – Refinery Road, Vadodara – 390016, Gujarat, India |
|
Date of Birth/Age : |
01.07.1937 |
|
Date of Appointment : |
19.01.2001 |
|
DIN No.: |
00063935 |
|
|
|
|
Name : |
Mr. Robert Jasmin |
|
Designation : |
Director |
|
Address : |
Avenue Guillaume, Macu, 8/001Er, Brussels, 1050, Belgium |
|
Date of Birth/Age : |
04.12.1950 |
|
Date of Appointment : |
18.03.2010 |
|
DIN No.: |
03024797 |
KEY EXECUTIVES
|
Name : |
Mr. Digamber Shriram Mahajni |
|
Designation : |
Secretary |
|
Address : |
101, Nityam Homes, 36, Shrinagar Society \, SBI Urmi Branch Lane, Akota,
Vadodara – 390020, Gujarat, India |
|
Date of Birth/Age : |
19.12.1963 |
|
Date of Appointment : |
14.03.2012 |
|
DIN No.: |
CPPM5455L |
|
|
|
|
Name : |
Mr. Varghese |
|
Designation : |
Export Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 14.03.2013
|
Name
of Shareholders |
No.
of Shares |
%age |
|
|
949,313 |
7.87 |
|
|
1 |
0.00 |
|
Societe Industrielle Liegeoise
des oxides S A (Silox) |
1 |
0.00 |
|
Shailesh K Solnki |
10,044,132 |
83.28 |
|
Tigrane Djierdjian |
1 |
0.00 |
|
Antonio Di Nallo |
1 |
0.00 |
|
Philippe Renier |
1 |
0.00 |
|
Excel Industries Limited,
India |
1,067,450 |
8.85 |
|
TOTAL |
12,060,900 |
100.00 |
Equity Share Break up (Percentage of Total Equity)
As on 14.03.2013
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
Indian(s) or Overseas Corporate bodies or Others |
83.28 |
|
Bodies corporate |
16.72 |
|
|
|
|
TOTAL |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of inorganic chemicals for a wide
range of applications such as Textile, Paper and Pulp, Tyre and Rubber, Paint
and Plastics etc. |
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|
|
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|
Products : |
|
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Exports : |
|
||||||||
|
Products : |
Finished Goods |
||||||||
|
Countries : |
· USA · France · Canada · Spain · UK · Italy · China |
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|
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Terms : |
|
||||||||
|
Selling : |
L/C and Credit |
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|
|
||||||||
|
Purchasing : |
L/C and Credit |
GENERAL INFORMATION
|
Customer: |
End users |
|
|
|
|
No. of Employees : |
1000 (Approximately) |
|
|
|
|
Bankers : |
State Bank of India, MID-Corporate Group Industrial Financial Branch,
Marble Arch, Race Course Circle, Vadodara – 390007, Gujarat, India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Hakins and Sells Chartered Accountants |
|
Address : |
31, Nutan Bharat Society, lakpuri, Vadodara – 390007, Gujarat, India |
|
PAN No.: |
AADFD2337G |
|
|
|
|
Related Parties: |
· Divkar Chemicals Limited · Shroffs Engineering Limited · Hydro Technologies INC, Canada · Societe Nouvelledes Couleures Zinciques (SNCZ) |
CAPITAL STRUCTURE
AS ON 31.12.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs. 150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12060900 |
Equity Shares |
Rs.10/- each |
Rs. 120.609 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
120.609 |
120.609 |
120.610 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1940.680 |
1512.860 |
1298.570 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2061.289 |
1633.469 |
1419.180 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
107.650 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
107.650 |
|
|
DEFERRED TAX LIABILITIES |
121.242 |
106.767 |
102.760 |
|
|
|
|
|
|
|
|
TOTAL |
2182.531 |
1740.236 |
1629.590 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
927.496 |
739.940 |
698.270 |
|
|
Capital work-in-progress |
5.253 |
69.385 |
12.740 |
|
|
|
|
|
|
|
|
INVESTMENT |
576.861 |
180.874 |
195.780 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
176.985
|
178.495 |
146.170 |
|
|
Sundry Debtors |
1067.941
|
867.336 |
698.300 |
|
|
Cash & Bank Balances |
368.940
|
557.942 |
518.650 |
|
|
Other Current Assets |
8.476
|
5.697 |
0.000 |
|
|
Loans & Advances |
107.042
|
114.928 |
239.770 |
|
Total
Current Assets |
1729.384
|
1724.398 |
1602.890 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
446.590
|
583.834 |
0.000 |
|
|
Other Current Liabilities |
193.736
|
147.062 |
534.210 |
|
|
Provisions |
416.137
|
243.465 |
345.880 |
|
Total
Current Liabilities |
1056.463
|
974.361 |
880.090 |
|
|
Net Current Assets |
672.921
|
750.037 |
722.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2182.531 |
1740.236 |
1629.590 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5753.362 |
|
|
|
|
|
Other Income |
90.567 |
66.328 |
|
|
|
|
TOTAL (A) |
5843.929 |
4663.310 |
4020.970 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3174.212 |
2772.934 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
7.679 |
(12.335) |
|
|
|
|
Employee benefit expense |
331.966 |
280.925 |
|
|
|
|
Other Expense |
1209.868 |
1035.270 |
|
|
|
|
TOTAL (B) |
4723.725 |
4076.794 |
3429.010 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1120.204 |
586.516 |
591.960 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
19.947 |
24.128 |
26.420 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1100.257 |
562.388 |
565.540 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
61.017 |
51.082 |
45.970 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1039.240 |
511.306 |
519.570 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
317.054 |
149.831 |
157.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
722.186 |
361.475 |
361.960 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
134.275 |
219.980 |
205.690 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
400.000 |
300.000 |
200.000 |
|
|
|
Dividend |
253.280 |
126.640 |
126.640 |
|
|
|
Tax on Dividend |
41.090 |
20.540 |
21.030 |
|
|
BALANCE CARRIED
TO THE B/S |
162.091 |
134.275 |
219.980 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
59.88 |
27.93 |
30.01 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
PAT / Total Income |
(%) |
12.36
|
7.75 |
9.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.06
|
11.12 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
39.12
|
20.75 |
22.58 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.50
|
0.31 |
0.37 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00
|
0.00 |
0.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.64
|
1.77 |
1.82 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2010 |
31.12.2011 |
31.12.2012 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
120.610 |
120.609 |
120.609 |
|
Reserves & Surplus |
1,298.570 |
1,512.860 |
1,940.680 |
|
Net
worth |
1,419.180 |
1,633.469 |
2,061.289 |
|
|
|
|
|
|
Secured Loan |
0.000 |
0.000 |
0.000 |
|
Unsecured Loan |
107.650 |
0.000 |
0.000 |
|
Total
borrowings |
107.650 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.076 |
0.000 |
0.000 |
YEAR ON YEAR GROWTH
|
Year
on Year Growth |
31.12.2011 |
31.12.2012 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
4,596.982 |
5,753.362 |
|
|
|
25.155 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2011 |
31.12.2012 |
|
|
(INR) |
(INR) |
|
Sales |
4,596.982 |
5,753.362 |
|
Profit |
361.475 |
722.186 |
|
|
7.86% |
12.55% |
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
No |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10058454 |
23/01/2013 * |
420,000,000.00 |
STATE BANK OF INDIA |
MID-CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE,, VADODARA - 390007, GUJARAT, INDIA |
B70726633 |
|
2 |
90095214 |
23/01/2013 * |
420,000,000.00 |
STATE BANK OF INDIA |
MID-CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE,, VADODARA - 390007, GUJARAT, INDIA |
B70726708 |
*Date of Charge Modification
GLOBAL ECONOMIC SCENARIO AN OVERVIEW
Four years after
the eruption of the global financial crisis, the world economy is still
struggling to recover and during the Y 2012 the global economic growth weakened
further. A growing number of developed countries have fallen into double-dip
depression and those in severe sovereign debt distress have moved even deeper
into recession. These economies have been caught in a downward spiral caused by
high unemployment, weak aggregate demand compounded by fiscal austerity, high
public debt burdens and financial sector fragility.
Many European
economies are already in recession. In Germany output slowed down
significantly, while France is on a stagnation trail. A number of new policy
initiatives taken by the Euro area authorities during Y 2012, including the
Outright Monetary Transaction (OMT) programme and steps toward greater fiscal
integration as well as co-ordinated financial supervision and regulation,
helped to address some of the deficiencies in the original design of the
Economic and Monetary Union (EMU). Significant as they may be, these measures
are still being counteracted by other policy stances, fiscal austerity in
particular, and are not sufficient to take the economies out of the vicious
circle and restore output and employment growth in the short run. As a result
Europe is faced with a negative growth of 0.5 % during Y 2012.
The US economy
weakened notably during Y 2012, notwithstanding the nascent signs of recovery
shown by the beleaguered housing sector. Initiatives such as the new round of
Quantitative Easing (QE) from the US Federal Reserve, whereby monetary
authorities will continue to purchase mortgage backed securities until the
employment situation improves substantially, is expected to extend support to
the signs of recovery. However the lingering uncertainties about the fiscal
stance continue to restrain growth of business investment.
The economic
growth during Y 2012 in Japan was up from a year ago, mainly driven by reconstruction
works and recovery from the earthquake related disasters of Y 2011. The
government also took measures to stimulate private consumption. However exports
faced strong head winds from the slowdown in global demand as well as
appreciation of the Yen.
In Asian Region,
the growth engines China and India both shifted to low gear and the result was
evident in the form of lukewarm growth signs. While in China a significant
deceleration in exports has been a key factor for the slowdown, the effects of
policy tightening in the previous two years which led to marked softening in
domestic investment, also lingered.
INDIAN ECONOMY A PERSPECTIVE
Closer home, the
Indian economy has been slowing down since Y 2011 mainly due to policy
paralysis from the Government of India on one side and on the other side the
monetary tightening pursued by Reserve Bank of India, as a perceived measure to
contain inflation. However during September 12, the Government tried to kick
start the economy by signalling its determination to pursue pending economic
reforms including FDI in Multi-Brand retail and Civil Aviation as well as
partial facing out of fuel subsidies.
The growth
estimates for Y 2012-13 project agricultural and allied activities to grow at
only 1.8% as against 3.6% during Y 2011-12.
Manufacturing
growth is also expected to drop to 1.9% during this fiscal when compared to
2.7% of the previous year.
According to
advance estimates, the services sector including finance, insurance, real estate
and business services is expected to grow by 8.6% this fiscal and construction
by 5.9% as compared to 11.7% and 5.6% respectively in the previous year.
Even in other
sectors such as Trade, Hotel, Transport and Communication, the growth estimates
this fiscal is expected to be lower than the previous year.
All in all, the
Indian economy is expected to grow about 5% during Y 2012-13 as against 6.5% of
previous fiscal year.
REVIEW OF COMPANYS OPERATIONS
The above
situation created a sure shot recipe for tumultuous times in the global
economy, which left an adverse financial impact on most of the businesses
worldwide.
However they are
pleased to share that even during such volatile and trying times, the Company
was able to buck the trend and post not only a very impressive but also its
best ever performance during the year.
One of the main
factors that contributed to the impressive performance during the year was the
favorable market conditions for SHS arising out of the lower global
availability of the product which helped us not only to significantly improve
their sales volumes together with same price advantage.
Focussed efforts
by the Company to widen the customer base and increase sales volumes both in
India and abroad for all products, along with debottlenecking /increase of
capacities for various products continued to improving their overall
performance.
The well tested
business model of spreading the business across a wide range of end use
segments as well as geographical markets in order to dampen the impact of
turbulence in business environment continued to support the Company.
During the year
the Company was adept at placing itself in the right place at the right time in
order to take advantage of the opportunities that the markets offered while
remaining focused on controlling costs and improving the business processes.
This not only
helped the Company to further strengthen its position as a market leader in
India for most of its product, but also helped it significantly enhance its global
presence.
The commissioning
and start of production of the Companys new Zinc Oxide facility at Ekalbara not
only helped to improve its self-sufficiency in capacity of Zinc Oxide
manufacture but also helped to improve the cost competitiveness through improvement
in cost of manufacture of the product.
The net result was
that the Company was able achieve a robust top line growth of 25 % to reach a
turnover of Rs.5844.000 Millions.
As regards exports
business, despite turbulence in the global business environment the Company
market reach across the world could be leveraged to make a big leap of 22% in
growth to clock an export turnover of Rs.1935 million (US $ 35.96 Million)
While the raw material prices remained volatile throughout the year, the Company
could manage to pass on more than the increase in raw material cost due to
favourable market conditions.
The Company
continued with its efforts to optimise the bought out costs, through improvement
in raw material efficiencies, containment of raw material prices, conserving
energy, optimisation of overheads etc. during the year.
R and D efforts
aimed at process improvements as well as improvement in raw material and energy
efficiencies were pursued in right earnest.
OUTLOOK
It appears that
the significant headwinds that restrained global growth during the Y 2012 has
begun to dissipate.
The financial
market instability and currency weakness that plagued the Euro zone have been
significantly reversed alongside the strategic support provided by the European
Central Bank and European Union member states, and the initial progress made in
redressing the structural budgetary and competitive deficiencies in many of the
southern peripheral nations looks positive. Even so, the Euro zone remains in
the grip of recession, with both Germany and especially, France still having
trouble generating sufficient take off velocity. The renewed strengthening of
Euro shall also work against a faster revival of exports and corporate
revenues.
Improving
sentiment regarding US prospects has been reinforced by Washington’s compromise
on taxes reached at the turn of the year, and more recently, Congressional
leaders who agreed to postpone raising the debt ceiling until May 2013. While
US politicians have begun addressing the country’s significant fiscal
shortcomings, they agreed to raise taxes on the wealthy and roll back the
two-year 2 % point reduction in payroll taxes for all Americans. Taking another
bite out of US pocket books will be the higher taxes on dividends and capital
gains, in addition to Obama cares health tax levy. The combined fiscal drag
undoubtedly will leave its mark on the US economy’s performance, though there
are a number of important sectors that appear to be generating more sustainable
momentum. Strengthening employment conditions a function of revitalized
manufacturing and energy production are unleashing pent-up customer demand and
underpinning a rebound in housing-related activity. Business investment is
expected to keep pace, highlighted by the strengthening trend in capital goods
orders.
The growth outlook for Japan for Y 2013 is an expansion of 1.2%, backed
up by a sizable stimulus package along with easing of monetary policy as well
as support from a pick up in external demand.
The Chinese
economy is rebounding, with evident signs of revival in house hold spending,
investment and exports. The real GDP growth increase from 7.4% in Q3 2012 to
7.9% during Q4 2012 point to a growth rate for Y 2013 of 8.1%
The Indian economy
appears to be constrained by three factors- high fiscal deficit, slow growth
and high inflation. Poor infrastructure, low growth in agriculture and
industrial activities and the gap in energy supply demand is seen as the key
hurdles for growth. However positive impact of a partial global recovery along
with recent government policies including steps to open up FDI in Retail as
well as Civil Aviation and de-regulation of fuel prices, is expected to fuel
growth. Focus of the government is on reducing inflation through increase in
food production and better infrastructure to reduce agriculture waste and
reducing the fiscal deficit from 5.3% in the current fiscal to 4.8 % next year
through curtailing expenditure and increasing diesel prices. In the above
background the projection for growth for the Y 2013-14 is pegged at 6.1 - 6.7%
The key end use
segments of the Company such as Textile, Rubber, Paint and Paper etc. are more
domestic business oriented and the slower growth in the Indian economy is sure
to leave its mark on business prospects of these segments. Also the
appreciation in INR can impact the export competitiveness of these segments.
The Textile
segment in India is facing turbulent times with Denim Industry facing severe
drop in exports on account of weak global demand. However the muted global
demand for cotton along with surplus production is expected to keep cotton
prices stable and range bound during Y 2013. Stable cotton prices would help
spinning mills to improve their margins and streamline inventory buying.
However increase in labour, power and fuel prices are a matter of concern and
the overall growth projections for Textile segment is pegged from negative to
stable.
Regarding Rubber
and Tyre segment, subdued OEM demand, modest replacement demand and relatively
muted exports are expected to dampen the growth prospects during Y 2013-14.
However the positives are the drop in raw material prices mainly that of
Natural Rubber which has seen a steady decline during last 18 months and also
other inputs which are largely crude dependant having softened with crude
prices. While this is
expected to shore
up the bottom line, the falling demand is expected to play spoilsport.
The Indian Paper
industry which forms only 1.6 % of the Global Paper Industry largely stands
fragmented. The challenges faced by the Indian paper industry are insufficient
availability of raw material, need to modernise the plants, improve
productivity and build new capacities. Cheap imports from China especially of
New Print is adversely impacting the growth prospects of Indian paper Industry.
The Indian Paint
Industry is segregated into Decorative and Industrial/ Protective Coating segments,
with Decorative being the dominant one. The Industrial and Protective Coatings
segment where the companys products are consumed, has its growth prospects
linked to Industrial and Infrastructure expansion. With the Governments focus
on Infrastructure Development and the GDP growth expected to accelerate
Industrial expansion, the growth prospects of this segments look positive
during the coming year.
The fortunes of
Jaggery segment is linked to the sugar cane crop in the country and the drought
like situation prevailing in various Jaggery regions of the country along with
the dynamics of monsoon can influence the growth prospects of this segment.
In the above
background, the Company feels that its markets both in India and overseas have
started showing signs of fatigue and a slowdown in the market can lead to
accelerated competition resulting into pressure on prices. The prices of most
of the key raw materials are also showing an increasing trend.
The Company’s
focus on improvements in efficiencies in manufacturing as well as business
processes, cost reduction in all spheres of operations, optimizing utlisation
of resources, maximum capacity utilization of all plants etc. shall continue
during the forthcoming year.
Areas that can
help to further strengthen their bottom line are improvement in Zinc
Valorisation, reduction in waste generation and energy conservation As the
future beckons us with its share of challenges and opportunities, they need to
keep their spirits high, mind poised and skill honed to embrace the future with
open arms and make the best of all situations that they come across.
While the past
laurels rest lightly on their shoulders, let us look to the future hoping for
the best and preparing for the worst.
Success is a lousy teacher. It seduces even smart people to think that
they cant lose
FINANCE
During the year,
the Company continued its focus on prudent working capital management, which
helped to ensure that the average outstanding receivables as well as the
coverage for inventory and advances were significantly lower than the previous
year, despite increase in the level of activities.
On account of
healthy generation of cash, the Company was in a position to fund its Working
Capital, Capex and other requirements entirely through the internal accruals.
The year-end cash
surpluses also registered a significant increase which were parked in Fixed
Deposits as well as Liquid Plans of Mutual Funds.
The Company’s
rating with CRISIL stands at P1+ (indicating very strong safety regarding
timely payment) on the Commercial Paper Program of the Company as well as
Packing Credit, Letter of Credit and Bank Guarantee components of working
capital facilities. On the Cash Credit component, the rating stands at
AA/Stable (indicating high safety regarding timely payment)
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.61.04 |
|
|
1 |
Rs.100.80 |
|
Euro |
1 |
Rs.84.17 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.