MIRA INFORM REPORT
|
Report Date : |
07.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
MANALI PETROCHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
SPIC House 88, Old No.97, Mount Road, Guindy, Chennai – 600032,
Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
11.06.1986 |
|
|
|
|
Com. Reg. No.: |
18-013087 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.859.996 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24294TN1986PLC013087 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEM00306F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Petrochemical Products like Propylene Oxide (PO),
Propylene Glycol (PG) and Polyols (PY). |
|
|
|
|
No. of Employees
: |
Information declined by the management. |
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 6000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well-established company having fine track record. The rating reflects company’s diversified product portfolio marked by
healthy financial risk profile and comfortable liquidity position. 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities - A- |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
23.04.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities - A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
23.04.2014 |
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
31-03-2014.
INFORMATION DENIED
Management Non-Co-operative (91-44-25941025)
LOCATIONS
|
Registered Office : |
SPIC House 88, Old No. 97, Mount Road, Guindy, Chennai - 600032, Tamilnadu, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-mail: |
|
|
Website: |
|
|
|
|
|
Principal Office and Plant I: |
|
|
Tel. No.: |
91-44-25941025/ 25941249/ 25941253/ 25941557/ 25943910/ 25941421 |
|
Fax No.: |
91-44-25941199 |
|
E-Mail : |
|
|
|
|
|
Plant II: |
Sathangadu Village, Manali, Chennai – 6000680, Tamilnadu, India |
|
Tel. No.: |
91-44-25941698/ 25941402 |
|
|
|
|
Secretarial Department: |
Ponneri High Road, Manali, Chennai - 600068, Tamilnadu, India |
|
Tel. No.: |
91-44-25943895 |
|
E-Mail : |
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|
Website: |
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|
|
|
|
Branches |
Located at: · Delhi · Mumbai · Kolkata |
DIRECTORS
|
Name : |
Mr. Ashwin C Muthiah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. T K Arun |
|
Designation : |
Director (Nominee of TIDCO) |
|
|
|
|
Name : |
Mr. Brig (Retd.) Harish Chandra Chawla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kulbir Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjiv Ralph Noronha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Muthukrishnan Ravi |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. G. Balasubramanian |
|
Designation : |
Whole-Time Director (Works) |
KEY EXECUTIVES
|
Name : |
Mr. R. Kothandaraman |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Anis Tyebali Hyderi |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Audit Committee : |
· Mr. Brig (Retd.) Harish Chandra Chawla ·
Mr. T K Arun · Mr. Kulbir Singh · Mr. Sanjiv Ralph Noronha |
SHAREHOLDING PATTERN
As on 30.06.2014
|
Category
of Shareholder |
Total No.
of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
||
|
|
|
|
|
|
65856053 |
38.29 |
|
|
11212500 |
6.52 |
|
|
13648 |
0.01 |
|
|
13648 |
0.01 |
|
|
77082201 |
44.82 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
77082201 |
44.82 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
185100 |
0.11 |
|
|
96246 |
0.06 |
|
|
2260000 |
1.31 |
|
|
2541346 |
1.48 |
|
|
|
|
|
|
10689156 |
6.21 |
|
|
|
|
|
|
58349992 |
33.92 |
|
|
16738347 |
9.73 |
|
|
6598187 |
3.84 |
|
|
256962 |
0.15 |
|
|
3090298 |
1.80 |
|
|
3162427 |
1.84 |
|
|
85050 |
0.05 |
|
|
3250 |
0.00 |
|
|
200 |
0.00 |
|
|
92375682 |
53.71 |
|
Total Public shareholding (B) |
94917028 |
55.18 |
|
Total (A)+(B) |
171999229 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total |
171999229 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Petrochemical Products like Propylene Oxide (PO), Propylene
Glycol (PG) and Polyols (PY). |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
|||||||||||||||
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|
|
|||||||||||||||
|
Bankers : |
·
State Bank of India ·
State Bank of Hyderabad ·
State Bank of Patiala ·
Indian Bank ·
Punjab National Bank ·
Corporation Bank ·
State Bank of Bikaner and Jaipur ·
State Bank of Mauritius |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
ASV N Ramana Tower, 52, Venkatnarayana Road, T. Nagar, Chennai-
600017, Tamilnadu, India |
|
|
|
|
Cost Auditor : |
|
|
Name : |
S Gopalan and Associates |
|
Address : |
F-1, Nethrambigai Apartments 15, Vembuli Amman Koil
Street, K K Nagar West, Chennai – 600078, Tamilnadu, India |
|
|
|
|
Related Party: |
· Tamil Nadu Petroproducts Limited |
|
|
|
|
Associates: |
·
SIDD Life Sciences Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24000000 |
Equity Shares |
Rs.5/-each |
Rs.1200.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
171999229 |
Equity Shares |
Rs.5/-each |
Rs.859.996
Million |
Notes:
There has been no movement in the Share Capital
during the year. The Company has only one class of equity shares having a par
value of Rs.5 per share. Each holder of the equity shares is entitled to one
vote per share. In the event of repayment of Share Capital, the same will be in
proportion to the number of equity shares held.
For the year ended March 31, 2014, the amount
of dividend proposed to be distributed to equity shareholders is
Re.0.50 per share (previous year: Re.0.50 per
share). The Dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
Details of shares held by shareholders holding more than 5% shares in
the Company:
|
|
31.03.2014 |
|
|
Name of
shareholders |
No. of Shares |
% Holding |
|
M/s. SIDD Life Sciences Private Limited |
65846053 |
38.28 |
|
M/s. Tamilnadu Industrial Development Corporation Ltd. |
11212500 |
6.52 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
860.347 |
860.347 |
860.347 |
|
(b) Reserves &
Surplus |
1254.202 |
1064.316 |
883.373 |
|
(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) |
2114.549 |
1924.663 |
1743.720 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
154.025 |
150.247 |
134.420 |
|
(c) Other long term
liabilities |
17.634 |
19.167 |
20.700 |
|
(d) long-term provisions |
11.140 |
9.301 |
5.624 |
|
Total Non-current
Liabilities (3) |
182.799 |
178.715 |
160.744 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
22.901 |
20.290 |
11.872 |
|
(b) Trade payables |
551.269 |
444.174 |
503.614 |
|
(c) Other current
liabilities |
85.375 |
55.494 |
67.957 |
|
(d) Short-term provisions |
162.081 |
167.213 |
217.197 |
|
Total Current Liabilities
(4) |
821.626 |
687.171 |
800.640 |
|
|
|
|
|
|
TOTAL |
3118.974 |
2790.549 |
2705.104 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1036.985 |
1025.483 |
989.090 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.807 |
|
(iii) Capital
work-in-progress |
25.239 |
37.440 |
47.155 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
41.245 |
41.245 |
0.045 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
147.847 |
153.781 |
57.271 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1251.316 |
1257.949 |
1094.368 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
147.722 |
22.406 |
180.345 |
|
(b) Inventories |
627.305 |
598.389 |
654.381 |
|
(c) Trade receivables |
527.524 |
391.981 |
383.541 |
|
(d) Cash and cash
equivalents |
259.306 |
64.587 |
63.178 |
|
(e) Short-term loans and
advances |
302.982 |
455.000 |
326.992 |
|
(f) Other current assets |
2.819 |
0.237 |
2.299 |
|
Total Current Assets |
1867.658 |
1532.600 |
1610.736 |
|
|
|
|
|
|
TOTAL |
3118.974 |
2790.549 |
2705.104 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
5544.375 |
5153.396 |
5739.630 |
|
|
Other Income |
62.979 |
70.776 |
68.321 |
|
|
TOTAL |
5607.354 |
5224.172 |
5807.951 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
3647.114 |
3597.543 |
3943.227 |
|
|
Purchases of
Stock-in-Trade |
218.382 |
190.497 |
136.505 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(43.321) |
(50.554) |
(138.146) |
|
|
Employees benefits
expense |
179.783 |
188.742 |
248.374 |
|
|
Other expenses |
1073.247 |
859.567 |
951.034 |
|
|
TOTAL |
5075.205 |
4785.795 |
5140.994 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
532.149 |
438.377 |
666.957 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
18.953 |
21.448 |
19.229 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
513.196 |
416.929 |
647.728 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION
|
65.626 |
63.579 |
58.840 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
447.570 |
353.350 |
588.888 |
|
|
|
|
|
|
|
Less |
TAX (I) |
157.068 |
80.191 |
152.091 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
290.502 |
273.159 |
436.797 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
175.846 |
28.263 |
34.089 |
|
|
Freight and Insurance |
4.355 |
0.536 |
1.002 |
|
|
TOTAL EARNINGS |
180.201 |
28.799 |
35.091 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
688.175 |
952.419 |
1184.559 |
|
|
Traded Goods |
158.129 |
160.705 |
102.961 |
|
|
TOTAL IMPORTS |
846.304 |
1113.124 |
1287.520 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
1.69 |
1.59 |
2.54 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
5.18 |
5.23 |
7.52 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
9.59
|
8.50 |
11.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.66 |
13.03 |
22.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21 |
0.18 |
0.34 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.01 |
0.01 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.27 |
2.23 |
2.01 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
860.347 |
860.347 |
860.347 |
|
Reserves & Surplus |
883.373 |
1064.316 |
1254.202 |
|
Net worth |
1743.720 |
1924.663 |
2114.549 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
11.872 |
20.290 |
22.901 |
|
Total borrowings |
11.872 |
20.290 |
22.901 |
|
Debt/Equity ratio |
0.007 |
0.011 |
0.011 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
5739.630 |
5153.396 |
5544.375 |
|
|
|
(10.214) |
7.587 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
5739.630 |
5153.396 |
5544.375 |
|
Profit |
436.797 |
273.159 |
290.502 |
|
|
7.61% |
5.30% |
5.24% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
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 |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
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 |
LITIGATION
DETAILS:
CHENNAI COURT
CASE STATUS INFORMATION SYSTEM
|
CASE STATUS : |
Pending |
|
|
|
|
Status of: |
Civil Misc. APPEAL |
|
Case No.: |
3216 |
|
Year : |
2006 |
|
Petitioner : |
THE COMMR. OF
CUSTOMS |
|
Respondent : |
M/S. MANALI
PETROCHEMICALS |
|
Pet’s Advocate : |
M/S P. MAHAADEVAN |
|
Res’s Advocate : |
M/S G. RM.
PALANIAPPAN |
|
Category : |
NO CATEGORY
MENTIONED LAST LISTED ON: NO
DATE MENTIONED |
|
Case Updated On : |
Aug 5 2013 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
80047338 |
30/12/1996 |
663,868,000.00 |
DEPARTMENT OF COMMERCIAL TAXES |
GOVT. OF TAMIL NADU,
CHENNAI, Tamil Nadu - 600006, |
- |
|
2 |
90297555 |
08/08/2014 * |
254,020,000.00 |
State Bank of India |
Overseas Branch, 86 Rajaji Salai, Chennai, Tamil Nadu - 600001, INDIA |
C18992339 |
|
3 |
80053563 |
07/04/1995 * |
88,300,000.00 |
CANARA BANK |
TEYNAMPET BRANCH,
TEYNAMPET, CHENNAI, Tamil Nadu |
- |
OPERATIONAL
HIGHLIGHTS
During the year, the operations of the Company were better than the
previous year in spite of cut-throat competition from overseas polyol
suppliers. The export sales increased from Rs.28.300 Million to Rs.175.800
Million highest ever recorded by the Company. The net profit for the year was
higher by about 6% at Rs.290.500 Million against Rs.273.200 Million in the
previous year.
Availability of bio mass fuel for the Captive Power Plant continued to
be limited due to demand from paper mills and also similar power plants. Even
at increased costs supplies were not forthcoming, forcing the Company to
operate the CPP at lower loads. Alternate fuels for the CPP are being tried to
ensure operations at optimum load. The Company went in for purchase of power
through energy exchanges and third parties to meet the short-fall. These
resulted in higher cost of power and consequently the profitability was also
impacted.
Creation of bulk storage facility at Ennore Port was completed in April
2014 and the first shipment was received during the first week of May 2014.
With this availability of adequate input material for the derivative plants would
be ensured, paving way for optimum utilization of the facilities.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Company specializes in Polyether Polyol and operates in the
Polyurethanes (PUs) Market, comprising two sectors: Methylene diisocyanate
(MDI) and Toluene diisocyanate (TDI). The PUs market in India has displayed a
robust growth rate in the recent past and is highly potential. MDI-based PUs
are growing at a faster rate, as they are easier to handle and have a wider
application base compared to TDI-based PUs. Polyols find varied applications
and caters to various industries such as automotive, refrigeration, insulation,
etc.
Indian Polyurethane industry’s performance during 2007-2012 had been
impressive with double-digit growth, but the market become stagnant in 2013 due
to various factors like overall economic slow-down, impact of global economic
crisis on Indian manufacturers, inflationary pressures, monsoon failure, etc.
Some revival was seen during the year under review. However the ever increasing
imports of Polyol into India is a major concern for the domestic manufacturers.
The Company also manufactures Propylene Glycol (PG) for pharma,
fragrance and industrial applications and continues to perform well in the
Pharma and fragrance sectors. The off-take of PG for industrial applications
was very low due to availability of alternate cheaper materials. Import of PG
was also higher during the year under review, opening up fierce competition.
OUTLOOK
The World Trade Organization (WTO) has forecast aggregate trade growth
of 4.70% for the year 2014, more than double the growth of 2.10% in 2013. It
has been stated that the growth could be slightly faster at 5.3% in 2015. It
may be noted that the forecast for 2014 and 2015 are lower than the 20 year average
of 5.80%.
Forecast of higher growth rate seems to be a good sign in terms of the
possible increase in the domestic demand in the coming years. However, the huge
capacities created by MNCs could result in further dumping of Polyols into
India, again leading to a price war and cut in margins.
In order to overcome the setback, the company has taken steps to develop
new applications for its products like footwear, seat cushions for two
wheelers, specialty polyols, drilling applications, water proofing, etc., while
also taking care of its commitment to environment. The Company is in the
process to develop product applications in medical devices. With the in-house
PO capacity remaining static, the bulk storage facilities for imported raw
materials in Ennore Port has become a shot in the arm for the Company to
increase the capacity of the derivative plants and go for more of value added
products.
MARKET SCENARIO
During the year, the Company achieved a turnover of Rs.6256.800 Million
against Rs.5798.700 Million in FY 2012-13, higher by about 8%. Though there was
some marginal drop in the volume, the Company could improve the realizations
through its maneuvers in the otherwise volatile and tough market conditions.
FIXED ASSETS
- Land
- Development
on leasehold land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipment
- Computer
- 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 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.61.38 |
|
|
1 |
Rs.98.00 |
|
Euro |
1 |
Rs.76.98 |
INFORMATION DETAILS
|
Information Gathered
by : |
GAY |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PNM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
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.