MIRA
INFORM REPORT
|
Report Date : |
31.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
TRANSPEK-SILOX INDUSTRY LIMITED |
|
|
|
|
Registered
Office : |
Kalali Road, Atladra, Vadodara – 390012, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2013 |
|
|
|
|
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 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT3739J |
|
|
|
|
Legal Form : |
Private 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
: |
700 (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 10000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well-established and reputed company having fine track
record. Financial position of the company seems to be sound. Director 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. Payment
terms reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may grow
4.7 % in the current financial year, lower than the official estimate of 4.9 %,
Fitch Rating said. The global rating agency expects the economy to pick up in
the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays
hotspots for Indians. The total figure is expected to increase to 1.93 million
by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating = AA |
|
Rating Explanation |
High degree of safety and carry low credit |
|
Date |
22.05.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A1+ |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
22.05.2014 |
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 PARTED BY
|
Name : |
Mr. Unni |
|
Designation : |
Deputy Manger |
|
Contact No.: |
91-22-22622940 |
|
Date : |
26.05.2014 |
LOCATIONS
|
Registered Office / Factory 1 : |
Kalali Road, Atladra, Vadodara – 390012, Gujarat, India |
|
Tel. No.: |
91-265-2680401/ 2/ 3/ 4/ 5 |
|
Mobile No.: |
|
|
Fax No.: |
91-265-2680406/ 2680062 |
|
E-Mail : |
rjeevm@tilbrd.com (Domestic) rajeevn@tilbrd.com (Exports) anirudh@tsilbrd.com (Purchase) creer@tsilbrd.com (HRM) |
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Factory : |
Located At · Ekalbara, Vadodara, Gujarat, India · Silvassa, UT, India |
|
|
|
|
Branch Office : |
Dewar House 102, Next to Centeral Camera, D.M. Road, Fort, Mumbai –
400001, Maharashtra, India |
DIRECTORS
As on 21.03.2014
|
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 |
|
PAN No.: |
AHZPS4655B |
|
|
|
|
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 : |
Marc Damoisaux-Delnoy |
|
Designation : |
Director |
|
Address : |
Rue Leon Fredericq, 6, Liege, Belgium – 4020 |
|
Date of Birth/Age : |
27.04.1965 |
|
Date of Appointment : |
21.03.2014 |
|
DIN No.: |
06848600 |
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.: |
ACPPM5455L |
|
|
|
|
Name : |
Mr. Unni |
|
Designation : |
Deputy Manger |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 21.03.2014
|
Names of Shareholders |
|
No. of Shares |
|
|
|
949313 |
|
|
|
1 |
|
Societe Industrielle Liegeoise
des oxides S A (Silox) |
|
1 |
|
Shailesh K Solnki |
|
10044132 |
|
Tigrane Djierdjian |
|
1 |
|
Antonio Di Nallo |
|
1 |
|
Philippe Renier |
|
1 |
|
Excel Industries Limited,
India |
|
1067450 |
|
TOTAL |
|
12060900 |
As on 21.03.2014
Equity Share Break up (Percentage of Total Equity)
|
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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|
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 : |
|
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|
Selling : |
L/C / Credit |
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|
|
|
||||||||
|
Purchasing : |
L/C / Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
|
|
|
|
No. of Employees : |
700 (Approximately) |
|
|
|
|
Bankers : |
· State Bank of India, MID-Corporate Group Industrial Financial Branch, Marble Arch, Race Course Circle, Vadodara – 390007, Gujarat, India · Bank of Baroda · HDFC Bank Limited · The Federal Bank Limited · AXIS Bank · The Bank of Nova Scotia · ICICI Bank Limited |
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Hakins and Sells Chartered Accountants |
|
Address : |
31, Nutan Bharat Society, lakpuri, Vadodara – 390007, Gujarat, India |
|
PAN No.: |
AADFD2337G |
|
|
|
|
Enterprises which
are owned, or have significant influence of or are partners with Key management
personnel and their relatives |
· Unifab Engineers · Transpek Industry Limited · Silox S.A. · Silar S A · Shroff Engineering Limited · Excel Industries Limited · United way of Vadodara ·
Swarvilas |
CAPITAL STRUCTURE
As on 21.03.2014
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 |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
120.609 |
120.609 |
120.609 |
|
(b) Reserves & Surplus |
2435.631 |
1940.680 |
1512.861 |
|
(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) |
2556.240 |
2061.289 |
1633.470 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
148.206 |
121.242 |
106.766 |
|
(c) Other long term liabilities |
171.808 |
155.253 |
115.243 |
|
(d) long-term provisions |
83.753 |
79.264 |
77.119 |
|
Total Non-current Liabilities (3) |
403.767 |
355.759 |
299.128 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
436.344 |
445.428 |
583.834 |
|
(c) Other current
liabilities |
70.413 |
39.645 |
31.819 |
|
(d) Short-term provisions |
376.819 |
336.873 |
166.346 |
|
Total Current Liabilities (4) |
883.576 |
821.946 |
781.999 |
|
|
|
|
|
|
TOTAL |
3843.583 |
3238.994 |
2714.597 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
984.126 |
919.009 |
728.610 |
|
(ii) Intangible Assets |
5.658 |
8.487 |
11.330 |
|
(iii) Capital
work-in-progress |
14.253 |
5.253 |
69.385 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
43.904 |
35.583 |
27.930 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1047.941 |
968.332 |
837.255 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
958.720 |
576.861 |
180.874 |
|
(b) Inventories |
208.132 |
176.985 |
178.495 |
|
(c) Trade receivables |
1084.223 |
1067.941 |
867.336 |
|
(d) Cash and cash
equivalents |
389.305 |
368.912 |
557.942 |
|
(e) Short-term loans and
advances |
145.070 |
71.487 |
86.998 |
|
(f) Other current assets |
10.192 |
8.476 |
5.697 |
|
Total Current Assets |
2795.642 |
2270.662 |
1877.342 |
|
|
|
|
|
|
TOTAL |
3843.583 |
3238.994 |
2714.597 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5963.406 |
5753.362 |
4596.982 |
|
|
|
Other Income |
146.347 |
90.567 |
66.328 |
|
|
|
TOTAL (A) |
6109.753 |
5843.929 |
4663.310 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3232.607 |
3174.212 |
2772.934 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(45.605) |
7.679 |
(12.335) |
|
|
|
Employees benefits expense |
362.540 |
331.966 |
280.925 |
|
|
|
Other expenses |
1215.928 |
1209.868 |
1035.27 |
|
|
|
TOTAL (B) |
4765.470 |
4723.725 |
4076.794 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1344.283 |
1120.204 |
586.516 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
21.947 |
19.947 |
24.128 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1322.336 |
1100.257 |
562.388 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
67.115 |
61.017 |
51.082 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1255.221 |
1039.240 |
511.306 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
421.615 |
317.054 |
149.831 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
833.606 |
722.186 |
361.475 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
69.12 |
59.88 |
27.93 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
13.64 |
12.36 |
7.75 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.05 |
18.06 |
11.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
32.78 |
32.14 |
19.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.49 |
0.50 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.16 |
2.76 |
2.40 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
120.609 |
120.609 |
120.609 |
|
Reserves & Surplus |
1512.861 |
1940.680 |
2435.631 |
|
Net
worth |
1633.470 |
2061.289 |
2556.240 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4596.982 |
5753.362 |
5963.406 |
|
|
|
25.155 |
3.651 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4596.982 |
5753.362 |
5963.406 |
|
Profit |
361.475 |
722.186 |
833.606 |
|
|
7.86% |
12.55% |
13.98% |
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 |
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 |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
CORPORATE INFORMATION
Subject an Indo- Belgium joint venture between Silox,S.A., Belgium and Transpek group is public Company incorporated under the provisions of the Companies Act, 1956.The Company is engaged in the manufacturing and selling of inorganic chemicals finding wide application in Textile, paper, Tyre and rubber, paint, plastic etc. based products. The Company has its manufacturing location at Atladra, Ekalbara in Gujarat and in Silvasssa.
GLOBAL ECONOMIC
SCENARIO AN OVERVIEW
“Learn from yesterday, live for today and hope for tomorrow. The important thing is not to stop questioning: - Albert Einstein
As you are aware, the year 2013 began on a dampened note on account of the economic woes of the previous year getting spilled over. A growing number of developed countries, especially in Europe, had fallen into double digit recession and those facing sovereign distress have moved even deeper into recession. Many developed economies of the world were caught in downward spiraling dynamics from high unemployment, weak aggregated demand compounded by fiscal austerity, high public debt burdens and financial fragility.
The economic woes of developed countries also had a cascading effect on developing countries as well as economies in transition through weakened demand for their exports and heightened volatility in capital inflows and commodity prices.
However, as Y 2013 went along, there were marked changes in the world economy with Europe appearing to be staging a come back. Germany remained solid and Spain and Italy have in the recent months clocked some of the best economic data since Y 2011. Even Greece started showing encouraging financial figures! The situation is not restricted to Eurozone alone. The financial data from UK appeared solid and the figures of Eastern European nations also looked stronger. It would not yet be right to say that Europe “is out of the woods” but things appeared to be moving in the right direction.
In US, it appeared that better than expected growth is around the corner with economic data for Y 2013 emerging stronger and seems more durable than any time since the last crisis. The labour and housing markets are showing signs of improvement and the Quantitative Easing (QE) appears to be further tapering down any time soon. However, the woes of US appear to be more political with the tussle between the Obama Administration and the Republicans on the Obamacare resulting in a siege on governance which not only led to a near default on debt servicing, but also shutdown of various government agencies for nearly two weeks.
China appeared to be heading towards a crash landing after more than two years of single digit growth following a decade of double digit growth. However, if the recent figures are anything to go by, things aren?t all that bad. Growth is not all that spectacular, but things are not deteriorating also. The new government is focused on having “quality growth” (i.e growth not just driven by aggressive investment) as well as pushing reforms and cracking down on corruption. So China might not be a voracious consumer for world’s commodities as it used to be, but a full-on melt down in the world’s most populous country doesn’t seem that likely either.
Japan has experienced an “impressive” pick up since the government launched a massive stimulus programme to spur the economy out of prolonged stagnation. The Abenomics seems to be leading the economy of the country on a growth path at least in the short term.
In addition to the above, various geopolitical issues such as the after effects of Arab Spring in Middle East continuing to rock countries like Egypt and Syria, the political standoff between Iran and the Western World etc. not only played spoil sport in lifting the global economic sentiments but also led to turbulence in the supply and price scenario of Oil, a key energy source of the world.
REVIEW OF COMPANY’S
OPERATIONS
As is evident from the above the business environment worldwide including India during the year remained very turbulent and input cost scenario was also exposed to high volatility.
Your Company’s end use segments such as Textile, Tyre and Rubber, Paper and Pulp, Protective Coatings etc. faced turbulent times. The Textile segment was besieged by lower demand due to a downturn in domestic consumption on account of dampened economic sentiments in the country as well as increasing competition from low cost economies such as Bangladesh, Vietnam, Pakistan and Cambodia in the export market.
The slowdown in the economy had a significant adverse impact on the Automotive segment of India and this significantly influenced the fortunes of Tyre and Rubber segment which is one of the key end use segments of the Company.
The significantly cheaper imports of newsprint and other types of paper put the Paper and Pulp Industry, another significant end use segment of the Company, under pressure leading to cut down in their production.
Industrial and Infrastructure development is the key driver for the Protective Coating Industry which is yet another key end use segment of the Company and the on going policy paralysis with Government of India led to delay in execution of various Industrial and Infrastructure projects in India, which in turn left a significant adverse impact on the Protective Coating segment.
You would agree that the above volatile scenario offered a sure recipe for an adverse impact on the bottomline of the Company. However, the Directors are extremely pleased to share that even in such circumstances, the Company continued to show its mettle by clocking not only a wonderful but also the best ever financial performance during the year.
The Directors are pleased to place on record their sincere appreciation for the strong commitment as well as the exemplary efforts put in by each member of Team TSIL, which has resulted in this memorable performance.
The Directors believe that many significant factors have contributed to this best ever performance, namely our continuing efforts to widen the customer base, maximising sales volumes for all products both in India and abroad, quickly grasping opportunities in the market to significantly shore up their sales prices of all products, efforts to contain their input prices even in a volatile raw material scenario, optimization of input costs through process improvements, acceleration in cash flow through shortening the credit cycle for its products, further strengthening of the business processes through improved ERP systems etc.
Their efforts to maximize production and capacity utilization of their plants along with various improvement initiatives across the value chain, made significant contributions to the overall performance.
The Company made committed efforts for Energy Conservation by undertaking out of the box initiatives and these facilitated significant gain in terms of reduced energy costs during the year.
Able support was availed from R&D with respect to various process improvements as well as new product initiatives that can foster future growth.
During the year the Company was able place itself in the right place at the right time, to take advantage of the opportunities that the markets offered while remaining focused on controlling costs, strengthening its systems and improving the business processes.
The Directors are also pleased to inform that during the year , the Company had the privilege of receiving Awards from CHEMXCIL and Container Corporation of India (CONCOR) for growth in Exports and for maximum container movement from Vadodara ICD respectively
OUTLOOK
As you are aware, the Company has never been the one to comfort itself on the laurels but instead has always made efforts to the best of its ability to foresee the challenges that lie ahead in order to be able to make plans to deal with the same effectively.
While the global economic situation is expected to improve in the coming year, the Company foresees the markets to remain volatile with the uncertainties prevailing in various parts having the potential to have an adverse impact on demand and competition intensifying for various products. This could result in an adverse impact on the sales volumes and prices for their products. The improvement in business sentiments can also lead to an upswing in prices of key raw materials and a weak Indian Rupee can keep the energy costs high. The increase in zinc metal purchase premiums that we faced in Y 2013 has the possibility to further escalate in Y 2014.
In order to deal with the above challenges the Company’s efforts shall be focused on areas such as maximizing their market share as well as sales prices for all products, continued efforts to contain raw material prices through some out of the box procurement efforts, further optimization in raw material and energy efficiencies in order to contain bought out costs, optimum utilization of all resources including working capital for further improvement in cash flow, extending their ERP systems to areas hitherto uncovered such as technical areas so that their business processes as well as MIS become more integrated and real time.
Improvement in Zinc Valorisation shall continue to be a thrust area and focused efforts of the techno-commercial team in all areas related to this subject can lead to significant improvements during this year.
The recent shifting of Zinc Oxide plant from Bhiwandi to Ekalbara should help the Company to achieve self-sufficiency in Zinc Oxide production, which is very important from not only the angle of supply reassurance to customers but also from overall cost optimisation angle.
FINANCE
During the year, the Company had cast its focus on Treasury and Risk Management. On the treasury front, arising out of healthy cash flows, interest and dividend income aggregated to Rs.68.000 Millions during the year through investments in various plans of mutual funds. On the forex front too, the Company registered a substantial gain of Rs.580.000 Millions during the year. The Metal Risk was also managed through appropriate risk management tools.
The Company holds Crisil’s A1+ rating (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 payments).
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, GUJARAT |
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, GUJARAT |
B70726708 |
* Date of charge modification
FIXED ASSETS
· Land
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.03 |
|
|
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.80.34 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NTH |
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 |
|
DEFAULTER |
|
|
|
--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.