MIRA INFORM REPORT
|
Report No. : |
338363 |
|
Report Date : |
26.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
PENNAR INDUSTRIES LIMITED (w.e.f. 30.09.1998) |
|
|
|
|
Formerly Known
As : |
PENNAR STEELS LIMITED |
|
|
|
|
Registered
Office : |
Floor No. 3, DHFLVC Silicon Towers, Kondapur, Hyderabad – 500084, Andhra Pradesh |
|
Tel. No.: |
91-40-40061621/2/3/4 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
08.08.1975 |
|
|
|
|
Com. Reg. No.: |
36-001919 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 629.500 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27109AP1975PLC001919 |
|
|
|
|
IEC No.: |
0990004317 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDP00081E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABC93074H |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of steel and stainless steel, solar module mounting
solution, cold rolled steel strips, ESP electrodes. |
|
|
|
|
No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject was incorporated in August 1975, it is having a fine track
record. Overall General financial position of the company seems to be decent. The rating takes into consideration established track record of the
company, experienced management team and reputed clientele base. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. Note: Subject has been found under RBI Defaulter’s list the name of
credit Grantors is Andhra Bank and the amount charged is Rs. 171.300 Million dated
31.03.2015 and latest updates about the same are not available. |
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long terms Bank facilities : A |
|
Rating Explanation |
Have adequate of safety and carry low credit
risk |
|
Date |
29.01.2015 |
|
Rating Agency Name |
CARE |
|
Rating |
Short terms Bank facilities : A1 |
|
Rating Explanation |
Have very strong degree of safety and carry
lowest credit risk. |
|
Date |
29.01.2015 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available RBI Defaulters’ list and the details of the
same are as under :
|
Borrowers’ Name : |
Pennar Industries Limited |
|
Address : |
1-10-75/1/1-6, Sardar Patel Road, Begumpet,
Hyderabad, Andhra Pradesh, India |
|
Name of Individual : |
Anantha Reddy C. Rangamani Laximinarayan Nrupender Rao P Bhaskar Rao |
|
Name of Credit Grantors / Bank & Branch: |
Andhra Bank, Somajiguda, Hyderabad |
|
Amount (Rs. In Millions) : |
Rs. 171.300 Million |
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
31-03-2013.
INFORMATION PARTED BY
|
Name : |
Mr. Srinivas Krishna Prasad |
|
Designation : |
CFO |
|
Contact No.: |
91-40-40061621 |
|
Date : |
25.08.2015 |
LOCATIONS
|
Registered Office : |
Floor No. 3, DHFLVC Silicon Towers, Kondapur, Hyderabad – 500084, Andhra Pradesh |
|
Tel. No.: |
91-40-40061621/2/3/4 |
|
Fax No.: |
91-40-40061618 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
3000 Sq. ft. |
|
Location : |
Owned |
|
Locality : |
Commercial |
|
|
|
|
Corporate Office / Factory 1: |
Patancheru Unit IDA, Patancheru
- 502 319, Medak (Dist), Andhra Pradesh, India |
|
Tel. No.: |
91-8455-242184 To 242193 |
|
Fax No.: |
91-8455-242424 / 242161 |
|
E-Mail : |
|
|
Area: |
43 Acres |
|
|
|
|
Factory 2 : |
Isnapur Unit Isnapur Village - 502 307, Medak (Dist.), |
|
Tel. No.: |
91-8455-226615 / 17 |
|
Fax No.: |
91-8455-226412 |
|
Area: |
26 Acres |
|
|
|
|
Factory 3 : |
Tarapur Unit Pressmetal (Pennar), MIDC, Tarapur,
Maharashtra, India |
|
Tel. No.: |
91-2525-272517 / 609 / 429 |
|
Fax No.: |
91-2525 272536 |
|
E-Mail : |
|
|
Area: |
5 Acres |
|
|
|
|
Factory 4 : |
Chennai Unit Kannigaipair Village, Periyapalem Main Road,
Tiruvellore Dist. Tamil Nadu-601 102, |
|
Tel. No.: |
91-44-27629042 / 27601009 / 27601010 |
|
Fax No.: |
91-44-2762 9298 |
|
E-Mail : |
|
|
Area: |
5 Acres |
|
|
|
|
Factory 5 : |
Hosur Unit 43, SIDCO Industrial Estate, II Phase, Hosur, Tamil Nadu, India |
|
|
|
|
Branches: |
Located
At: ·
·
Chennai ·
·
·
Hosur ·
·
·
Kolkotta ·
Mumbai ·
Pune ·
|
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Joginapally Venkata Nrupender Rao |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. C Parthasarathy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ravi Chachra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kamalaker Rao Bhandari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manish Mahendra Sabharwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jupally Ramu Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vishal Satinder Sood |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Varun Chawla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Lavanya Kumar Rao Kondapally |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Sita Vanka |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Aditya Narsing Rao |
|
Designation : |
Vice Chairman and Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Mirza Mohammed Ali Baig |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2015
|
Category of Shareholder |
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
||
|
|
|
|
|
|
22803129 |
18.95 |
|
|
20953811 |
17.41 |
|
|
43756940 |
36.36 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
43756940 |
36.36 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
4872043 |
4.05 |
|
|
7982968 |
6.63 |
|
|
12420683 |
10.32 |
|
|
25275694 |
21.00 |
|
|
|
|
|
|
9863772 |
8.20 |
|
|
|
|
|
|
20741077 |
17.23 |
|
|
19209036 |
15.96 |
|
|
1502995 |
1.25 |
|
|
51316880 |
42.64 |
|
Total Public
shareholding (B) |
76592574 |
63.64 |
|
Total (A)+(B) |
120349514 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
120349514 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of steel and stainless steel, solar module mounting
solution, cold rolled steel strips, ESP electrodes. |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
|
|
Products : |
Finished Goods |
|
|
|
|
Imports : |
|
|
Products : |
Raw Material |
|
Countries : |
|
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit (30/60/90 Days) |
|
|
|
|
Purchasing : |
Cash and Credit (30/60/90 Days) |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
NCC
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Customers : |
End Users and OEMs
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
500 (Approximately) |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Million)
|
|
Auditors : |
|
|
Name : |
Rambabu and Company Chartered Accountants |
|
Address : |
31, Pancom Chambers, 6-3-1090/1/A, |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Subsidiaries (As on
31.03.2014) : |
|
|
|
|
|
Significant Influence (As
on 31.03.2014) : |
Saven Technologies Limited |
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital : Rs. 629.500 Million
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15,00,00,000 |
Equity Shares |
Rs.5/- each |
Rs. 750.000Million |
|
5,00,000 |
Series - A : Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs. 50.000 Million |
|
4,00,00,000 |
Series - B : Cumulative Redeemable Preference Shares |
Rs.5/- each |
RS. 200.000 Million |
|
|
Total |
|
Rs. 1000.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12,04,61,410 |
Equity Shares |
Rs.5/- each |
Rs. 602.300
Million |
|
1,66,49,119 |
Cumulative redeemable Preference Shares |
Rs. 3.34/- each |
Rs. 55.600
Million |
|
1,75,53,299 |
Cumulative redeemable Preference Shares |
Rs.5/- each |
|
|
|
Total |
|
Rs. 657.900 Million |
All Equity Shares issued by the company carry equal voting and participatory rights
Persuant to board of directors approval for buy back of equity shares under section 77 A of the companies act, 1956, the company has bought back 15,62,590 shares of Rs.5/- each through open market for an aggregate amount of Rs. 35.700 Million. Out of the said amount, an amount of Rs.27.900 Million debited to share premium account and the balance amount of RS.7.800 Million has been reduced from share capital. 60,16,069 equity shares out of the issued, subscribed and paid up capital were bought back and extinguished in the last five years out of which 15,62,590 pertains to current FY 2013-14.
The details of shareholders holding more than 5% shares:
|
Name of the share holder |
As at 31st March |
|
|
|
No of Shares |
% held |
|
Saif Advisors Mauritius Limited A/C Saif India IV |
1,21,38,080 |
10.08 |
|
My Home Constructions P Ltd |
1,15,73,375 |
9.61 |
|
Eight Capital Master Fund Limited |
87,11,854 |
7.23 |
|
Palguna Consultants Private Limited |
63,20,148 |
5.25 |
|
Thapati Trading Private Limited |
-- |
-- |
|
Copthall Mauritius Investment Limited |
-- |
-- |
The reconciliation of the no of equity shares outstanding is set out below :
|
Particulars |
As at 31st March,
2014 No. of shares |
|
Equity Shares at the beginning of the year |
12,20,24,000 |
|
Add/(Less) : Shares bought back and extinguished |
15,62,590 |
|
Equity Shares at the end of the year |
12,04,61,410 |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
629.500 |
657.900 |
697.900 |
|
(b) Reserves & Surplus |
2711.900 |
2539.000 |
2466.400 |
|
(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) |
3341.400 |
3196.900 |
3164.300 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
453.100 |
428.000 |
324.200 |
|
(b) Deferred tax liabilities
(Net) |
229.800 |
157.700 |
132.700 |
|
(c) Other long term
liabilities |
10.300 |
8.900 |
9.100 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
693.200 |
594.600 |
466.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
939.100 |
704.800 |
733.000 |
|
(b) Trade payables |
1011.400 |
1030.800 |
619.600 |
|
(c) Other current liabilities |
347.800 |
342.500 |
221.100 |
|
(d) Short-term provisions |
2.800 |
2.800 |
145.900 |
|
Total
Current Liabilities (4) |
2301.100 |
2080.900 |
1719.600 |
|
|
|
|
|
|
TOTAL |
6335.700 |
5872.400 |
5349.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2023.900 |
1903.500 |
1853.700 |
|
(ii) Intangible Assets |
124.000 |
130.300 |
13.000 |
|
(iii) Capital work-in-progress |
5.400 |
42.200 |
7.700 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
227.700 |
227.700 |
227.700 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
11.200 |
57.000 |
57.600 |
|
(e) Other Non-current assets |
41.700 |
47.500 |
40.400 |
|
Total
Non-Current Assets |
2433.900 |
2408.200 |
2200.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1316.800 |
1212.100 |
1193.700 |
|
(c) Trade receivables |
2266.200 |
1885.300 |
1744.100 |
|
(d) Cash and cash equivalents |
100.800 |
124.900 |
104.500 |
|
(e) Short-term loans and
advances |
170.300 |
202.300 |
85.600 |
|
(f) Other current assets |
47.700 |
39.600 |
21.900 |
|
Total
Current Assets |
3901.800 |
3464.200 |
3149.800 |
|
|
|
|
|
|
TOTAL |
6335.700 |
5872.400 |
5349.900 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
8282.100 |
7358.400 |
8480.600 |
|
|
Other Income |
11.500 |
20.900 |
8.700 |
|
|
TOTAL
(A) |
8293.600 |
7379.300 |
8489.300 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
6038.100 |
5242.700 |
6100.500 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(16.100) |
(11.400) |
6.500 |
|
|
Employees benefits expense |
435.500 |
447.400 |
421.200 |
|
|
Other expenses |
1132.300 |
342.000 |
340.800 |
|
|
Manufacturing Expenses |
0.000 |
827.700 |
803.100 |
|
|
TOTAL
(B) |
7589.800 |
6848.400 |
7672.100 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
703.800 |
530.900 |
817.200 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
260.600 |
184.700 |
197.100 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
443.200 |
346.200 |
620.100 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
109.500 |
152.800 |
149.200 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
333.700 |
193.400 |
470.900 |
|
|
|
|
|
|
|
Less |
TAX (H) |
120.400 |
67.600 |
159.500 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
213.300 |
125.800 |
311.400 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1527.300 |
1401.500 |
1256.400 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
23.600 |
|
|
Dividend |
NA |
NA |
122.000 |
|
|
Tax on Dividend |
NA |
NA |
20.700 |
|
|
Total
(M) |
NA |
NA |
166.300 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
1740.600 |
1527.300 |
1401.500 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
1.77 |
1.04 |
2.55 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
NA |
58.100 |
40.100 |
|
Cash generated from operations |
NA |
724.600 |
697.900 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
2.58 |
1.71 |
3.67 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
8.50 |
7.21 |
9.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.47 |
3.45 |
9.21 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.06 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.42 |
0.35 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70 |
1.66 |
1.83 |
STOCK
PRICES
|
Face Value |
Rs.5 |
|
Market Value |
Rs.48 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
697.900 |
657.900 |
629.500 |
|
Reserves & Surplus |
2466.400 |
2539.000 |
2711.900 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
3164.300 |
3196.900 |
3341.400 |
|
|
|
|
|
|
long-term borrowings |
324.200 |
428.000 |
453.100 |
|
Short term borrowings |
733.000 |
704.800 |
939.100 |
|
Total
borrowings |
1057.200 |
1132.800 |
1392.200 |
|
Debt/Equity
ratio |
0.334 |
0.354 |
0.417 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
8480.600 |
7358.400 |
8282.100 |
|
|
|
-13.233 |
12.553 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
8480.600 |
7358.400 |
8282.100 |
|
Profit |
311.400 |
125.800 |
213.300 |
|
|
3.67% |
1.71% |
2.58% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
Yes |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
Yes |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
Yes |
|
19 |
Major customers |
Yes |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
LITIGATIONS
DETAILS
CRLP 7365/2013 CRLPSR
23837/2013 CASE IS:
PENDING
|
PETTIONER |
M/S. SILICON VALLEY AUTO COMPONENTS PVT. LTD. AND 2 OTHERS |
RESPONDENT |
V/S M/S. PENNAR INDUSTRIES LTD. AND ANOTHER |
|
Pet’s Adv:- |
PRADYUMNA KUMAR REDDY |
Resp. Adv.: |
PUBLIC PROSECUTOR |
|
SUBJECT : |
U/s. 482 Cr.p.c. under sec. 138 and 142 |
DISTRICT |
HYDERABAD |
|
FILLING DATE : |
12.07.2013 |
POSTING STAGE : |
FOR ADMISSION |
|
REG. DATE |
12.07.2013 |
LISTING DATE |
01.06.2015 |
|
STATUS |
----- |
HON’BLE JUDGE (S) |
B.SIVA SANKARA RAO |
UNSECURED LOAN
(Rs.in
Million)
|
Particulars |
As
on 31.03.2015 |
As
on 31.03.2014 |
|
LONG TERM
BORROWING |
|
|
|
Sales Tax Deferment Loan |
NA |
230.400 |
|
Total |
NA |
230.400 |
CORPORATE INFORMATION
(As on 31.03.2014)
Pennar Industries Limited is a multi-location, multi-product company manufacturing Cold Rolled Steel Strips, Precision Tubes, Cold Rolled Formed Sections, Electro Static Precipitators, Profiles Railway Wagons and Coach Components, Press Steel Components and Road Safety Systems. Pennar Industries Limited has manufacturing facilities at Patancheru and Isnapur (in Andhra Pradesh), Chennai and Hosur (Tamil Nadu) Tarapur (Maharashtra). Further Pennar Industries Limited has two subsidiaries viz i) Pennar Engineered Building Systems Limited, which at its state of the art manufacturing facility at Sadashivpet, near Hyderabad designs, manufactures
and erects pre-engineered steel buldings and ii) Pennar Enviro Limited which is engaged in the business of manufacturing and distribution of Fuel Additives and Water Treatment Chemicals, Water and Waste Water Treatment Solution Providers and EPC contracts.
OVERVIEW (As on
31.03.2014)
Pennar’s steel product strategic business unit comprises structural components comprising special steels and cold rolled formed sections for building products, profiles (infrastructure and auto), road safety systems and sheet piles. Structural steel has gained growing acceptance as a preferred construction material in fast track projects; Pennar possesses a capacity to deliver large quantities of purlins, cold-roll formed sections and roofing sheets around short lead times, emerging as a leading supplier to construction projects in India and abroad. The company’s ready-to-use cold rolled steel possess superior surface finish and uniform thickness with close tolerances, helping customers minimize wastage and maximize yield.
At a time when the country’s infrastructure sector is expected to rebound, Pennar is positioned as a one-stop producer of sheet metal products for use in the automobile industry (OEMs), strengthening its preference and leadership.
- STEEL PRODUCTS
BUSINESS OVERVIEW
Steel Products division has been static in FY 14. However most of the revenue is driven by cold rolled steel business.
OUTLOOK
In order to further strengthen the division, the company is planning to expand into special profiles and higher margin products. New products like pumping solutions, ESP retro fitting, and specialized sheet piles etc. will be added into the products profile of the company. Apart from this, the company is also looking to expand into International markets. The manufacturing units will also be strengthened with high end equipments to suit requirements of the customers.
The Company operates four plants addressing the growing needs of customers like Lloyds Insulation Ltd, Alstom Projects, Lanco Infratech, FLSmidth, Thermax, Johnson Lifts, Adani Power, L&T and Ashok Leyland, among others.
Pennar was among the first companies in India to engage in narrow cold rolling and profiles business, gradually emerging as a market leader. The company possesses an installed capacity of 2,50,000 TPA. The cold rolling business possesses attractive value-added opportunities; the Company uses personalized tools to optimize lead time, leveraging in-house engineering and design capabilities to enduring customer relationships.
- SYSTEMS AND PROJECTS
Overview
Pennar caters to the requirement of railway wagon components for Indian Railways. Pennar manufactures cold roll formed profiles and fabricated structures with superior strength-toweight ratio in the manufacture of railway wagons. The Company developed and supplied stainless steel sections for modern-day stainless steel wagons; the company also emerged as a supplier of several sections (including heavy fabrication parts) for railway coaches. For the railways business, the company addresses the needs of Integral Coach Factory (Perambur), Southern Railways, Texmaco and Besco, among others.
With public transportation facilities assuming rising significance, the requirement of the Indian Railways for railway coaches is also growing. Pennar’s Railways business caters to the requirements of the Indian Railways supported by a dedicated manufacturing facility.
Pennar’s solar power projects also fall under this segment. The Company also accounted for a 10% market share in solar module mounting structures, demand for which is expected to increase following the implementation of the National Solar Mission. The Company’s key clientele for the solar business includes L&T, Tata Power Solar,Navalakha, Lanco Solar, ABB, Schneider Electric and Solaris, among others. Pennar intends to expand its solar business presence from Tamil Nadu, Maharashtra and Andhra Pradesh to Northern India.
With deep expertise in structural steel and pre-engineered buildings and as an extension to our product offerings Pennar will provide warehousing solutions. As the markets mature, Pennar will focus on delivering new designs and technologies.
BUSINESS OVERVIEW
During the year under review, the railway business reported a net revenue of Rs.7510.000 Million accompanied by higher margins. The solar business on the other hand reported a Net Revenue of Rs.4470.000 Million. Pennar, enjoying a market share 15%, is expected to capitalize on this attractive opportunity.
Pennar’s growth has been driven by continuous product extension - from cold rolled steel strips to fabricated structures and solar module mounting structures. With a strategy to expand in related segments, the Company intends to introduce new products and solutions for the infrastructure and warehousing sector.
Pennar’s delivery of customized new-age designs and technologies have facilitated quicker delivery, wide range of sectional dimensions and thickness, reduced project costs and optimized mounting structure weight. Pennar is the largest cold roll formed steel section manufacturer in India, having supplied mounting structures and structural components to various solar plants.
OUTLOOK
Pennar will utilise its deep expertise in the area of structural steel and pre-engineered buildings to grow its presence in the warehousing solutions space. While exploring newer growth areas, the Company will enhance its focus on stainless steel coaches and the metro rail segment. Going ahead, the Company is expected to expand the business of solar structures with tracking systems.
- TUBES
OVERVIEW
The strategic business unit manufacturing tubes across categories addressing four industrial segments.The Company’s products comprise electric resistance welded pipes, cold drawn welded tubes, air pre-heater tubes, Indian boiler regulation tubes.
The tubes manufactured by the company are widely used as structural components for various products in the automobile, power, manufacturing, structural and general engineering segments. The company possesses the capability to manufacture tubes of different shapes and dimensions catering to different client requirements.
Pennar brings to each project a rich experience in fabrication, precision engineering and customised client requirements. The in-house tool design and manufacturing capability has helped produce designed rolls at low costs with short lead times.
The Company services the growing needs of prominent automobile companies like Mahindra, Volvo-Eicher commercial vehicles, Hyundai, TVS, Tata Motors and Ashok Leyland.
In the power sector, several major players (Thermax, BGR, Paharpur, Cethar, KCP, Airco Fin, among others) use Pennar’s products. Besides, the products are also used by cement plant and sugar plant equipment manufacturers. The Company’s auto-controlled pollution-free wet process plants with bright annealing furnace produce diverse tubes supported by stringent quality norms.
BUSINESS OVERVIEW
The company supplemented the manufacture of electric resistance welded tubes with cold drawn welded tubes. The year 2013-14 was the first full year of operations of the Company’s cold drawn welded tubes range. During the year under review, the Company streamlined CDW tube operations at its Isnapur facility, marked by precision, dimensional tolerance, strength, controlled mechanical properties and inner surface smoothness.
The Company introduced a new tubular component to cater to the oil and gas segment, whose performance will become visible in 2014-15. Additional tube mills were commissioned at Isnapur; product distribution and service setups in Chennai and Hosur addressed specific client needs that enhanced revenues.
Outlook
Going ahead, the company’s capex is expected to translate into attractive revenues
- INDUSTRIAL COMPONENTS DIVISION
Overview
The company’s business of industrial components comprises press metal components used in the automotive and white goods sectors. The Company’s product portfolio comprises refrigerator and A/C compressor shells, four-wheeler parts (car seating system assembly), two-wheeler parts (disc brakes) and heavy vehicle filter parts.
This SBU addresses a market segment estimated around Rs.2,8000.000 Million; the company accounts for 2% of the country’s market share in this segment. The Company leveraged its longstanding engineering insight to market these components and has capitalized on the growth of the country’s automotive and white goods sectors.
Over 50% of the Company’s business in this segment is derived from repeat customers like Tecumseh Products, Emerson
Climate Technologies, Endurance Technologies, India Nippon Electricals, IFB Automotive Private Limited, Fleetguard Filters, WABCO India and Brakes India, among others. The Company’s plants in Patancheru and Chennai are equipped with state-of-the-art equipment and facilities (press shops and tool maintenance) that ensure the fabrication of high-precision quality products supported by centralised CNC tool rooms to address the emerging tool manufacturing needs of customers. The company’s commitment to quality and total customer satisfaction facilitated the ISO 9001:2000 accreditation.
BUSINESS OVERVIEW
The Company added Yamaha, BEML, INEL and many more as its customers and Braking components, Steering componets (in Auto component Segment), Wabco Piston Assy, Air Spring, Guide Bracket, Rotor cup components to its product offerings in 2013-14. The Company acquired the hydraulics business of Wayne Burt in Chennai.
MANAGEMENT DISCUSSION
AND ANALYSIS (As on 31.03.2014)
Industry overview
Despite an ongoing slowdown, India reported a GDP growth of 4.7% during 2013-14,marginally surpassing the previous year’s 4.5% but unable to meet forecasts of around 4.9%.The country’s fiscal deficit was recorded at 4.5% of GDP, than 2012-13 readings by 0.4%. The current account deficit of the country declined from H88 billion to H32.4 billion.
Manufacturing, the biggest constituent of Indian industry, shrank 0.7 per cent in 2013-14, against 1.1 per cent growth in the previous financial year.Total FDI inflows into various infrastructural sectors were 22.8% higher than in the last fiscal. (Source: IBEF) The country is optimistic of reporting higher GDP growth on account of quicker government clearance for projects long stuck in procedural delays, easier FDI norms and focus on government project implementation.
Index of Industrial
Production
The Index of Industrial Production contracted by 0.1% in April to March 2013-14 over the corresponding period of the previous year. Production in the mining sector and the manufacturing sector moderated by 0.6% and 0.8% respectively during April to March 2013-14 over the same period in 2012-13. Electricity generation increased by 6.1% during April to March, 2013-14 over corresponding period during the previous year. Interestingly, IIP grew 3.4% in April 2014 over April 2013 mainly on the back of a growth in the electricity generation (11.9%) and manufacturing (2.6%) sectors.
STATEMENT
OF STANDALONE UNAUDITED FINANCAIL RESULTS FOR THE QUARTER ENDED 30 JUNE 2015
(Rs. In Million)
|
Sr. No |
Particulars |
Standalone |
|
|
30.06.2015 |
|||
|
Unaudited |
|||
|
1 |
Income From
Operations |
|
|
|
|
a. Net Sales/ Income from Operations (Net of Excise Duty) |
1849.400 |
|
|
|
b. Other Operating Income |
1.800 |
|
|
|
Total Income from
Operations (Net) |
1851.200 |
|
|
2 |
Expenditure |
|
|
|
|
a. Cost of material Consumed |
1280.800 |
|
|
|
b. Purchase of Stock-in trade |
0.000 |
|
|
|
c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade |
8.200 |
|
|
|
d. Employees Benefit Expenses |
118.800 |
|
|
|
e. Depreciation and Amortisation Expenses |
28.000 |
|
|
|
f. Other expenses |
281.700 |
|
|
|
Total Expenses |
1717.500 |
|
|
5 |
Profit from
ordinary activities before finance cost & exceptional items |
133.700 |
|
|
6 |
Finance Costs |
61.100 |
|
|
7 |
Profit from
ordinary activities after finance costs & exceptional items |
72.600 |
|
|
8 |
Exceptional items |
-- |
|
|
9 |
Profit from
ordinary activities before tax |
72.600 |
|
|
10 |
Tax Expense |
|
|
|
|
- Income Tax |
21.200 |
|
|
|
- Deferred Tax |
13.300 |
|
|
11 |
Net Profit from
ordinary activity after tax |
38.100 |
|
|
12 |
Extraordinary Items |
-- |
|
|
13 |
Net Profit After
Tax |
38.100 |
|
|
14 |
Paid-up equity share capital (face value of Rs.10 per share) |
6017 |
|
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
-- |
|
|
16 |
Earning Per Share (of Rs.10 each) (not annualized) |
|
|
|
|
Basic and Diluted |
0.32 |
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
17 |
Public Shareholding |
|
|
|
|
- No. of shares |
76592574 |
|
|
|
- Percentage of shareholding |
63.64% |
|
|
18 |
Promoter &
Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- No. of shares |
3250000 |
|
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
7.43% |
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
2.70% |
|
|
|
b) Non-encumbered |
|
|
|
|
- No. of shares |
40506940 |
|
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
92.57% |
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
33.66% |
|
|
|
Particulars |
Quarter ended 30.06.2015 |
|
B |
Investor Complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
9 |
|
|
Disposed off during the quarter |
9 |
|
|
Remaining unresolved at the end of the
quarter |
Nil |
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10511889 |
21/07/2014 |
150,000,000.00 |
Axis Bank Limited |
Corporate Banking Branch, No:6-3-879-B, Ist Floor, |
C14092449 |
|
2 |
10470557 |
16/03/2015 * |
300,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH,6-3-879/B, FIRST FLOOR, |
C50556133 |
|
3 |
10304884 |
07/09/2011 |
150,000,000.00 |
AXIS BANK LIMITED |
5-2-183/184, 8751(old),, III rd Floor, RP Road, Secunderabad, Andhra Pradesh - 500003, INDIA |
B19908268 |
|
4 |
10222431 |
05/06/2010 |
895,200,000.00 |
State Bank of India |
Industrial Finance Branch, Raj Bhavan Road, Somajiguda, HYDERABAD, Andhra Pradesh - 500082, INDIA |
A87232930 |
|
5 |
10157652 |
18/11/2013 * |
1,600,000,000.00 |
State Bank of India |
Industrial Finance Branch, RajBhawan Road, Somajiguda, Hyderabad, Andhra Pradesh - 500082, INDIA |
B91573154 |
|
6 |
10152088 |
02/08/2010 * |
100,000,000.00 |
Axis Bank Limited |
5-2-183/184, 8751(old), III rd Floor, RP Road, Secunderabad, Andhra Pradesh - 500003, INDIA |
A95190559 |
|
7 |
10058235 |
25/08/2008 * |
1,200,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA,, RAJBHAVAN |
A45249216 |
|
8 |
90257093 |
11/06/2001 |
1,572,300,000.00 |
STATE BANK OF INDIA |
IFB; SOMAJIGUDA, HYDERABAD, Andhra Pradesh - 50008 2, INDIA |
- |
|
9 |
90258220 |
21/09/1996 |
540,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, SOMAJIGUDA, HYDERABAD, |
- |
|
10 |
90257840 |
03/09/1999 * |
284,650,000.00 |
STATE BANK OF INDIA |
IDB, SOMAJIGUDA, HYDERABAD, Andhra Pradesh - 500082, INDIA |
- |
*Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
|
Bank Guarantees |
NA |
103.800 |
|
Corporate Guarantee given for loans taken by subsidiary |
NA |
1847.300 |
|
Claims by Customs & Sales Tax |
NA |
21.000 |
|
Estimated amount of contracts remaining to be executed on capital account and not provided for |
NA |
98.300 |
|
LC/Bills Discounted |
NA |
34.700 |
FIXED ASSETS
·
·
Roads
·
Buildings
·
Plant and Machinery
·
Factory Equipments
·
Office Equipments
·
Computers
·
Furniture and Fittings
·
Vehicles
·
Computer Accessories
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.66.71 |
|
|
1 |
Rs.105.10 |
|
Euro |
1 |
Rs.77.11 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRP |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ART |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
YES |
|
--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.