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|
MIRA INFORM REPORT
|
Report No. : |
504840 |
|
Report Date : |
23.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
FOSECO INDIA LIMITED |
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Formerly Known
As : |
GREAVES FOUNDRY SERVICES LIMITED (w.e.f. 14.12.1972) GREAVES FOUNDRY SERVICES PRIVATE LIMITED |
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Registered
Office : |
Gat No 922 and 923, Taluka Shriur, Sanaswadi, Pune - 412208,
Maharashtra |
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Tel. No.: |
91-2137-668100 |
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Country : |
India |
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Financials (as
on) : |
31.12.2017 |
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Date of
Incorporation : |
22.03.1958 |
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Com. Reg. No.: |
11-011052 |
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Capital
Investment / Paid-up Capital : |
INR 63.865 Million |
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CIN No.: [Company Identification
No.] |
L24294PN1958PLC011052 |
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IEC No.: [Import-Export Code No.] |
0388030054 |
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TIN No: |
27070000152 |
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GSTN : [Goods & Service Tax
Registration No.] |
27AAACF1049H1ZW |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Divulged |
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PAN No.: [Permanent Account No.] |
AAACF1049H |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
· The Company is engaged in the manufacture of products used in the metallurgical industry. The products are in the nature of additives and consumables that improve the physical properties and performance of castings. · Manufacturer of Foundry Chemicals and Fluxes. (Registered Activity) |
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No. of Employees
: |
222 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
USD 4160000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject operates as a subsidiary of “Foseco Overseas Limited” but its ultimate holding is “Cookson Group Plc” based in United Kingdom. It was incorporated in the year 1958 and is engaged in the manufacture of products used in the metallurgical industry. The products are in the nature of additives and consumables that improve the physical properties and performance of castings. As per financials of December 2017, the company has registered a growth of 5.33% in its revenue as compared to its previous year’s revenue and has reported good profit margin of 8.76%. Rating takes into consideration the company’s long established track record of business operations marked by healthy net worth base along with debt free balance sheet and good liquidity position. Rating also takes into account the extensive experience of the promoters in the metallurgical industry and strong support received from its holding company. Shares are quoted very high on Stock Exchanges. (Shares are traded at a price of INR 1590 against its face value of INR 10.) Payments terms seems to be regular as per commitments. In view of strong financial base and established position, 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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
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Rating Explanation |
Not Available |
|
Date |
Not Available |
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
31-03-2018.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 23.04.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED BY
|
Name : |
Mr. Prashant Jave |
|
Designation : |
Not Divulged |
|
Contact No.: |
91-2137-668302 |
|
Date : |
18.04.2018 |
LOCATIONS
|
Registered Office/ Corporate Office/Factory 1: |
Gat No 922 and 923, Taluka Shriur, Sanaswadi, Pune - 412208,
Maharashtra, India |
|
Tel. No.: |
91-2137-668100 / 252940/ 41/ 44/45 |
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Fax No.: |
91-2137-252970/252942 / 568160 |
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E-Mail : |
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Website : |
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Factory 2 : |
Medium Scale Industrial Area, PIPDIC Industrial Estate, Mettupalayam, Puducherry – 605009, India |
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Tel. No.: |
91-413-4302022/28 |
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Fax No.: |
91-413-2278065 |
DIRECTORS
As on 31.12.2017
|
Name : |
Mr. Sanjay Mathur |
|
Designation : |
Managing Director |
|
Address : |
102 B1, Garnet, Lapis Lazuli, Lane 5, South Main Road, Koregaon Park, Pune – 411001, Maharashtra, India |
|
Date of Birth/Age : |
53 Years |
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Qualification : |
B.E. (Mechanical), MMS (Operations) |
|
Experience : |
35 Years |
|
Date of Appointment : |
01.04.2011 |
|
DIN No.: |
00029858 |
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Name : |
Mr. Pradeep Mallick |
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Designation : |
Director |
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Address : |
A/2, Pallonji Mansion, 43, Cuffe Parade, Mumbai – 400005, Maharashtra, India |
|
Date of Birth/Age : |
75 Years |
|
Qualification : |
Electrical Engineer B.Tech |
|
Date of Appointment : |
21.10.2011 |
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DIN No.: |
00061256 |
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|
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Name : |
Indira Jitendra Parikh |
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Designation : |
Director |
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Address : |
Koregaon Park, Lane No. 7, Oxford Hallmark, "B" Building, Flat No. 1001, Pune – 411001, Maharashtra, India |
|
Date of Birth/Age : |
74 Years |
|
Qualification : |
M.Ed. |
|
Date of Appointment : |
21.07.2014 |
|
DIN No.: |
00143801 |
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|
|
|
Name : |
Mr. Ajit Shah |
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Designation : |
Director |
|
Address : |
Mansen Barrister Building 17/A, Banganga Road, Walkeshwar, Mumbai – 400006, Maharashtra, India |
|
Date of Birth/Age : |
71 Years |
|
Date of Appointment : |
17.10.2013 |
|
DIN No.: |
02396765 |
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|
|
|
Name : |
Mr. Merryl France Durrenbach |
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Designation : |
Director |
|
Address : |
La Tapie 47310 Moirax Na France |
|
Date of Birth/Age : |
43 Years |
|
Qualification : |
Management with a Master’s Degree in Finance and Management |
|
Date of Appointment : |
21.07.2014 |
|
DIN No.: |
06920690 |
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|
|
|
Name : |
Mr. Glenn Allan Cowie |
|
Designation : |
Director |
|
Address : |
7165, Settlers Ridge Road, Gates Mills, Ohio – 44040, United States |
|
Date of Birth/Age : |
56 Years |
|
Date of Appointment : |
24.04.2015 |
|
DIN No.: |
07163534 |
KEY EXECUTIVES
|
Name : |
Mr. Mahendra Kumar Dutia |
|
Designation : |
Company Secretary |
|
Address : |
'Adharshila Apartments', 120A, N. S. C. Bose Road, Kolkata – 700040, West Bengal, India |
|
Date of Appointment : |
09.01.2013 |
|
PAN No.: |
AEVPD4975J |
|
|
|
|
Name : |
Mr. Umesh Ramachandra Bhat |
|
Designation : |
Chief Executive Officer |
|
Address : |
Flat No 304 Carnation Behind Kalyani Bunglow, Near Preet Mandir, Pune – 411014, Maharashtra, India |
|
Date of Birth/Age : |
54 Years |
|
Qualification : |
B. Com., L.L.B., F.C.A. |
|
Experience : |
30 Years |
|
Date of Appointment : |
21.07.2014 |
|
PAN No.: |
AABPU2358J |
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|
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Audit Committee : |
· Mr. Ajit Shah, Chairperson · Mr. Pradeep Mallick · Mr. Merryl Durrenbach · Mr. Indira Parikh |
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|
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Stakeholders
Relationship Committee : |
· Mr. Pradeep Mallick, Chairperson · Mr. Ajit Shah · Mr. Indira Parikh · Mr. Glenn Cowie · Mr. Merryl Durrenbach · Mr. Sanjay Mathur |
|
|
|
|
Nomination and
Remuneration Committee : |
· Mr. Ajit Shah, Chairperson · Mr. Pradeep Mallick · Mr. Indira Parikh · Mr. Glenn Cowie |
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|
|
|
Corporate Social
Responsibility Committee : |
· Mr. Indira Parikh, Chairperson · Mr. Pradeep Mallick · Mr. Ajit Shah · Mr. Sanjay Mathur |
MAJOR SHAREHOLDERS
As on 31.03.2018
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of
shares (calculated as per SCRR, 1957) As a % |
|
|
(A) Promoter & Promoter
Group |
4788845 |
74.98 |
|
|
(B) Public |
1597614 |
25.02 |
|
|
Grand Total |
6386459 |
100.00 |
Statement showing
shareholding pattern of the Promoter and Promoter Group
|
Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957) As a % |
|
|
A1) Indian |
|
||
|
A2) Foreign |
|
||
|
Any
Other (specify) |
4788845 |
74.98 |
|
|
Foseco Overseas Limited |
3704219 |
58.00 |
|
|
Vesuvius Holdings Limited |
544066 |
8.52 |
|
|
Foseco (UK) Limited |
540560 |
8.46 |
|
|
Sub
Total A2 |
4788845 |
74.98 |
|
|
A=A1+A2 |
4788845 |
74.98 |
Statement showing
shareholding pattern of the Public shareholder
|
Category & Name of the Shareholders |
No. of fully paid up equity shares held |
Shareholding % calculated as per SCRR,
1957 As a % of |
|
|
B1)
Institutions |
|
|
|
|
Foreign
Portfolio Investors |
5461 |
0.09 |
|
|
Financial
Institutions/ Banks |
579 |
0.01 |
|
|
Sub
Total B1 |
6040 |
0.09 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
Central
Government/ State Government(s)/ President of India |
23976 |
0.38 |
|
|
Sub
Total B2 |
23976 |
0.38 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share capital upto INR 0.200 million |
662738 |
10.38 |
|
|
Individual share capital in excess of INR 0.200 million |
25000 |
0.39 |
|
|
Any
Other (specify) |
879860 |
13.78 |
|
|
Karibu Limited |
733226 |
11.48 |
|
|
Sub
Total B3 |
1567598 |
24.55 |
|
|
B=B1+B2+B3 |
1597614 |
25.02 |
BUSINESS DETAILS
|
Line of Business : |
· The Company is engaged in the manufacture of products used in the metallurgical industry. The products are in the nature of additives and consumables that improve the physical properties and performance of castings. · Manufacturer of Foundry Chemicals and Fluxes. (Registered Activity) |
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Products / Services
: |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees
: |
222 (Approximately) |
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Bankers : |
·
Standard Chartered Bank ·
ICICI Bank Limited ·
HDFC Bank Limited ·
State Bank of India ·
UCO Bank |
|
Statutory Auditors
: |
|
|
Name : |
Price Waterhouse LLP Chartered Accountants |
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|
|
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Ultimate Parent
Company : |
Vesuvius Plc., United Kingdom |
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|
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|
Immediate Holding
Company : |
Foseco Overseas Limited, United Kingdom |
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|
|
|
Subsidiary of
Ultimate Parent Company : |
· Vesuvius Holdings Limited, United Kingdom · Foseco Holding Limited, United Kingdom ·
Foseco (U.K.) Limited., United Kingdom |
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|
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|
Fellow Subsidiaries
: |
· Foseco (Thailand) Limited · Foseco Foundry (China) Company Limited · Foseco Golden Gate Company Limited, Taiwan · Foseco Industrial e-Commercial Ltda., Brazil · Foseco International Limited, United Kingdom · Foseco Japan Limited · Foseco Korea Limited · Foseco Nederland BV. · Foseco Philippines Inc. · PT Foseco Trading Indonesia · PT Foseco Indonesia · Vesuvius Australia Pty Limited · Vesuvius Emirates (FZE), Dubai · Vesuvius Foundry Technologies (Jiangsu) Company Limited, China · Vesuvius GmbH, Germany · Vesuvius Group SA, Belgium · Vesuvius India Limited · Vesuvius Italia S.P.A. · Vesuvius Malaysia Sdn. Bhd. · Vesuvius New Zealand Limited · Vesuvius Poland Sp. Z.o.o. · Vesuvius Ras Al Khaimah FZ-LLC, Dubai · Vesuvius UK Limited, United Kingdom ·
Vesuvius Inc., USA |
CAPITAL STRUCTURE
As on 31.12.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7500000 |
Equity Shares |
INR 10/- each |
INR 75.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6386459 |
Equity Shares |
INR 10/- each |
INR 63.865 Million |
|
|
|
|
|
|
Details of shareholder’s holding more than 5% of shares in the
company |
Value (INR in Million) Number of Shares Percentage |
|
Promoter Group
representing 4788845 shares, cumulatively representing 74.98% of the total paid
up capital are held by |
|
|
|
|
|
a) Vesuvius Holdings Limited, United Kingdom - Subsidiary of Ultimate Parent Company |
5.441 |
|
|
544066 |
|
|
8.52% |
|
|
|
|
b) Foseco Overseas Limited, United Kingdom - Immediate Holding Company |
37.042 |
|
|
3704219 |
|
|
58.00% |
|
|
|
|
c) Foseco (UK) Limited, United Kingdom - Subsidiary of Ultimate Parent Company |
5.406 |
|
|
540560 |
|
|
8.46% |
|
|
|
|
Public Shareholding |
|
|
a) Karibu Limited, United Kingdom |
7.332 |
|
|
733226 |
|
|
11.48% |
Terms / Rights
attached to Equity Shares
The Company has only one class of equity shares having a par value of INR 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, expect incase of interim dividends.
In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
63.865 |
63.865 |
63.865 |
|
(b) Reserves & Surplus |
1392.678 |
1179.413 |
1025.388 |
|
(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) |
1456.543 |
1243.278 |
1089.253 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
6.453 |
18.481 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
10.738 |
6.384 |
6.820 |
|
(d) long-term provisions |
2.035 |
2.384 |
4.118 |
|
Total
Non-current Liabilities (3) |
12.773 |
15.221 |
29.419 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
634.932 |
442.907 |
359.548 |
|
(c) Other current liabilities |
88.687 |
65.491 |
74.894 |
|
(d) Short-term provisions |
16.507 |
62.692 |
74.756 |
|
Total
Current Liabilities (4) |
740.126 |
571.090 |
509.198 |
|
|
|
|
|
|
TOTAL |
2209.442 |
1829.589 |
1627.870 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
227.741 |
253.904 |
258.064 |
|
(ii) Intangible Assets |
0.007 |
3.074 |
6.129 |
|
(iii) Capital work-in-progress |
11.527 |
2.416 |
7.617 |
|
(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) |
22.327 |
18.079 |
14.065 |
|
(d) Long-term Loan and Advances |
38.831 |
75.061 |
98.370 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
300.433 |
352.534 |
384.245 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
167.115 |
191.643 |
158.788 |
|
(c) Trade receivables |
1005.759 |
996.066 |
903.087 |
|
(d) Cash and cash equivalents |
725.346 |
250.720 |
161.455 |
|
(e) Short-term loans and
advances |
9.095 |
38.574 |
20.278 |
|
(f) Other current assets |
1.694 |
0.052 |
0.017 |
|
Total
Current Assets |
1909.009 |
1477.055 |
1243.625 |
|
|
|
|
|
|
TOTAL |
2209.442 |
1829.589 |
1627.870 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
|
SALES |
|
|
|
|
|
Income |
3575.947 |
3395.050 |
2921.361 |
|
|
Other Income |
25.304 |
20.944 |
18.888 |
|
|
TOTAL
|
3601.251 |
3415.994 |
2940.249 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
2104.517 |
1914.052 |
1564.652 |
|
|
Purchases of Stock-in-Trade |
56.889 |
84.921 |
82.892 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(2.781) |
(0.934) |
(3.947) |
|
|
Employees benefits expense |
312.619 |
266.089 |
266.527 |
|
|
Other expenses |
595.264 |
583.967 |
504.420 |
|
|
TOTAL |
3066.508 |
2848.095 |
2414.544 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
534.743 |
567.899 |
525.705 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
3.526 |
4.152 |
1.220 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
531.217 |
563.747 |
524.485 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
53.413 |
50.520 |
45.400 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
477.804 |
513.227 |
479.085 |
|
|
|
|
|
|
|
Less |
TAX |
164.613 |
182.410 |
161.796 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
313.191 |
330.817 |
317.289 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
652.195 |
531.270 |
452.469 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
31.319 |
33.100 |
31.729 |
|
|
Interim Dividend |
83.024 |
102.183 |
124.535 |
|
|
Tax on Interim Dividend |
16.902 |
20.803 |
28.418 |
|
|
Proposed Final Dividend |
0.000 |
44.705 |
44.705 |
|
|
Tax on Proposed Final Dividend |
0.000 |
9.101 |
9.101 |
|
|
Total
|
131.245 |
209.892 |
238.488 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
834.141 |
652.195 |
531.270 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
183.150 |
132.230 |
105.835 |
|
|
Commission and Reimbursements |
30.348 |
29.206 |
35.904 |
|
|
TOTAL
EARNINGS |
213.498 |
161.436 |
141.739 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
458.960 |
403.453 |
299.482 |
|
|
Capital Goods and Spares |
2.739 |
3.242 |
3.396 |
|
|
TOTAL
IMPORTS |
461.699 |
406.695 |
302.878 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
49.04 |
51.80 |
49.68 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Current
Maturities of Long term debt |
|
|
|
|
Deferred Payment Liability - Sales Tax Deferral Loan |
6.453 |
12.028 |
17.322 |
|
Dues to Non-executive Directors |
2.170 |
2.170 |
2.170 |
|
Total |
8.623 |
14.198 |
19.492 |
|
Cash generated from operations |
793.774 |
486.052 |
360.922 |
|
Net cash from operating activities |
657.443 |
320.244 |
172.628 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
102.66 |
107.09 |
112.83 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
3.56 |
3.41 |
3.23 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
107.22 |
80.87 |
79.65 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
3.20 |
2.96 |
3.31 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
2.23 |
2.19 |
1.93 |
LEVERAGE RATIOS
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.34 |
0.32 |
0.34 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.01 |
0.02 |
0.03 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.51 |
0.46 |
0.47 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.16 |
0.21 |
0.25 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
151.66 |
136.78 |
430.91 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
8.76 |
9.74 |
10.86 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
14.18 |
18.08 |
19.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
21.50 |
26.61 |
29.13 |
SOLVENCY RATIOS
|
PARTICULARS |
31.12.2017 |
31.12.2016 |
31.12.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
2.58 |
2.59 |
2.44 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
2.35 |
2.25 |
2.13 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.66 |
0.68 |
0.67 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
0.14 |
0.32 |
0.59 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
2.58 |
2.59 |
2.44 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK
PRICES
|
Face Value |
INR 10/- |
|
Market Value |
INR 1590/- |
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particular |
31.12.2015 |
31.12.2016 |
31.12.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
63.865 |
63.865 |
63.865 |
|
Reserves & Surplus |
1025.388 |
1179.413 |
1392.678 |
|
Net
worth |
1089.253 |
1243.278 |
1456.543 |
|
|
|
|
|
|
long-term borrowings |
18.481 |
6.453 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Current Maturities of Long term debt |
19.492 |
14.198 |
8.623 |
|
Total
borrowings |
37.973 |
20.651 |
8.623 |
|
Debt/Equity
ratio |
0.035 |
0.017 |
0.006 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2015 |
31.12.2016 |
31.12.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
2921.361 |
3395.050 |
3575.947 |
|
|
|
16.215 |
5.328 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2015 |
31.12.2016 |
31.12.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
2921.361 |
3395.050 |
3575.947 |
|
Profit (Loss) |
317.289 |
330.817 |
313.191 |
|
|
10.86% |
9.74% |
8.76% |
LEGAL
CASES
Legal cases details file attached
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 |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
No |
|
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) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
No |
|
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 |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
NATURE OF OPERATIONS
The Company is engaged in the manufacture of products used
in the metallurgical industry. The products are in the nature of additives and
consumables that improve the physical properties and performance of castings.
The manufacturing activities are at Sanaswadi and Puducherry
MANAGEMENT DISCUSSION
AND ANALYSIS
INTRODUCTION
FOSECO is the Foundry Technologies Division of Vesuvius Group plc which is a global market player. Vesuvius Group is engaged in supporting the development of global steel and foundry manufacturing processes with new technologies. It has manufacturing capabilities in all the main steel and foundry markets in the world and is a leader in the supply of consumable products and solutions related to the foundry industry.
Foundry Services was born of an idea that took shape in a
small town of Birmingham in England in 1932. FOSECO as the name stands
originates from the term FOundry SErvices COmpany. One of the most recognised
brand names in the world, it has become an integral part of the foundry
industry as a supplier of high quality consumable products to the various
sectors. Foseco continuously focusses on technical service, market leading
technology supported by above industry average investment in R&D to provide
business enhancing solutions to its customers. It has manufacturing footprints
close to all the main steel and foundry markets in the world. It trains its
engineers who are progressively integrated within the global network of
experts. Local manufacturing, local expertise and leveraging global knowledge
of the foundry processes positions Foseco in a special relationship with its
customers. Helping them optimise their processes and product performances, it
provides its customers, products and expertise to create best solutions and reap
full benefits for success.
FOSECO'S BUSINESS
MODEL
Foseco operates a profitable, flexible, cash generative and growth-building business model centred around strong Customer Relationships and local presence. It has built the brand equity of its products through reliability, technology and service over many decades. Foseco provides a comprehensive range of foundry technologies, equipment and consumable supplies backed by world-leading foundry process and product application expertise. Understanding the need of the customers and offering them solutions that are unique puts Foseco on a different footing than its competitors. These are delivered to the customers by an international team of experts, passionate about consistently creating better castings through a partnership model with Foundries. The value addition is made through improvements in process capability, casting yields, resource utilisation, efficiency and development of new business opportunities.
ECONOMIC AND
INDUSTRIAL HIGHLIGHTS
The Global Economy
The global economy has seen an improvement in sentiment with growth in some major economies. However, the rising price of oil due to political uncertainties in West Asia, supply dislocation in some other oil-exporting countries, high exposure to natural disasters, increasing global tensions, concerns about global warming and rapid climatic changes, will pose threats to economic recovery. The restriction on availability of key raw materials in view of clamp down by Chinese Government due to environmental concerns, inward looking policies of major world economies, buildup of financial vulnerabilities are some of the key factors that will drive the global economy in the near future. The result of these factors will be felt during the coming period and will affect the foundry industry.
Indian Economy – Opportunities and Threats
India being largely a domestically-driven economy, most investors, domestic and international, remain positive about its economic future. This belief emanates from the series of measures taken by the Government in boosting the economy, which recorded a growth of 7.1% in 2016-17, logging the fatest expansion globally. The Indian economy is poised for growth which is evident from the recent upgrade of India's local and foreign currency issuer ratings and also improvement in rating of the Indian economy on the global scale
The twin effects of demonetisation and the hardship faced by
the tax payers imposing enormous compliance burden of the Goods and Services
Tax (GST) has affected the Indian business environment, especially the business
in the foundry industry which largely exist in the unorganised sector. Other
bold measures of the Government, viz., the enactment of the Real Estate
(Regulation and Development) Act, 2016 (RERA) and implementation of the
Insolvency and Bankruptcy Code 2016 (IBC) and the Supreme Court's directive on
the BS IV legislation, whose effects were greatly felt during the year 2017,
kept the economy subdued for better part of the year. The movement of the
Indian rupee against the US dollar had been quite erratic, having appreciated
sharply in the beginning of the year. Concerns of fiscal slippage at the
Central and State Government levels, rising crude oil prices and increase in
trade deficit has exerted downward pressure on the rupee. The improvement seen
in the Indian Industrial Production (IIP) numbers since the last couple of
months suggest that the Indian economy has now moved on a recovery path which
is a good indicator of the effectiveness of the above measures. The turnaround
of the production cycle, is quite significant because that will bring in
investment, which is the most important autonomous driver of growth in a trade
deficit economy. All the above steps could give a strong push to private
investment and growth. The same is true of public infrastructure projects,
which have been a major priority of the present Government.
Foundry Industry
scenario – Future Outlook
Worldwide casting production grew by less than half a percent for the second year in a row in 2016. In 2016, worldwide casting production was 104.4 million metric tons, a near match to 2015's reported 104.1 million metric tons. Casting growth from 2014 to 2015 was 0.4%, and from 2015-2016 it was 0.2%. Of the 32 countries with data for the last two years, 14 reported an uptick in production. The world's top 10 casting producing nations produced 91.6 million metric tons of the total 104.4 million metric tons. China reported a 3.5% increase since 2015, putting its total production at 47.2 million metric tons — 45% of total world casting production. India reported a 5.4% increase in production to 11.35 million metric tons, gaining space ahead of the US, which has seen lower tonnage shipped in 2015 and 2016 compared to 2014.
The Indian foundry industry manufactures metal cast
components for applications in Auto, Tractor, Railways, Machine tools,
Sanitary, Pipe Fittings, Defence, Aerospace, Earth Moving, Textile, Cement,
Electrical, Power machinery, Pumps / Valves, Wind turbine generators etc.
Foundry Industry has reported a turnover of approximately USD 19 billion, with
exports of approximately USD 2.5 billion. However, Grey Iron Castings have the
major share i.e. approximately 68% of the total castings produced. Out of
nearly 5000 units, 90% of the units are in the small and micro-scale
enterprises.
UNSECURED LOAN
|
PARTICULARS |
31.12.2017 (INR
in Million) |
31.12.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Deferred Payment Liability - Sales Tax Deferral Loan (The repayment of Sales Tax Deferral Loan has commenced from April, 2011 and is scheduled to be repaid by April, 2018.) |
0.000 |
6.453 |
|
Total |
0.000 |
6.453 |
INDEX
OF CHARGES: NO CHARGES EXISTS FOR
COMPANY
CONTINGENT
LIABILITIES:
(INR in million)
|
Particulars |
31.12.2017 |
31.12.2016 |
|
Counter Guarantees given to Banks in respect of Guarantee given by them |
1.571 |
1.176 |
|
Central Excise Demands in respect of which the Company is in Appeal |
0.000 |
0.769 |
|
Income Tax Demands in respect of which the Company is in Appeal |
14.095 |
52.333 |
|
Sales Tax Demands in respect of which the Company is in Appeal |
2.665 |
0.000 |
FIXED ASSETS
- Computer Software
- Freehold Land
- Leasehold Land
- Factory Buildings
- Buildings
- Plant and Machinery
- Laboratory and Office Equipments
- Furniture and Fittings
- Motor Vehicles
- Commuter Software
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 66.02 |
|
|
1 |
INR 92.73 |
|
Euro |
1 |
INR 81.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
ARC |
|
|
|
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.