MIRA INFORM REPORT

 

 

Report No. :

496946

Report Date :

12.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

KIRI INDUSTRIES LIMITED (w.e.f. 28.03.2011)

 

 

Formerly Known As :

KIRI DYES AND CHEMICALS LIMITED (w.e.f. 10.03.2006)

 

KIRI DYES AND CHEMICALS PRIVATE LIMITED

 

 

Registered Office :

7th Floor, Hasubhai Chambers, Opposite Town Hall, Ellisbridge, Ahmedabad - 380006, Gujarat

Tel. No.:

91-79-26574371

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

14.05.1998

 

 

Com. Reg. No.:

04-034094

 

 

Capital Investment / Paid-up Capital :

INR 321.775 Million

 

 

CIN No.:

[Company Identification No.]

L24231GJ1998PLC034094

 

 

IEC No.:

[Import-Export Code No.]

0896009025

 

 

TIN No:

24073700230

 

 

GSTIN :

[Goods & Service Tax Registration No.]

24AAACK9025C1ZZ

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMK01019E

 

 

PAN No.:

[Permanent Account No.]

AAACK9025C

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Reactive Dyes, Dye Intermediates and Basic Chemicals. (Registered Activity)

 

 

No. of Employees :

833 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A+

 

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

 

Maximum Credit Limit :

USD 11000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company incorporated in the year 1998 and it is having good track record.

 

For the financial year 2017, the company has increased in its revenue from operations as compared to previous year and maintained decent profitability margin of 9.87%.

 

Rating takes into consideration sound financial profile of the company marked by healthy networth base and low debt balance sheet.

 

Further, rating also reflects from vast experience of the promoters in chemical industry, established track record of business operations along with market position and improvement in the revenue as well as profitability profile during the year.

 

Trade relations are reported as fair. Business is active. Payment terms are seems to be regular.

 

In view of aforesaid, the company can be considered for business dealings at usual trade terms and conditions.

 

 

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

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

Rating

Not Available

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 31-03-2016.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 12.03.2018

 

 

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 

 

Management non-cooperative (Tel No.: 91-79-26574371)

 

 

LOCATIONS

 

Registered Office :

7th Floor, Hasubhai Chambers, Opposite Town Hall, Ellisbridge, Ahmedabad - 380006, Gujarat, India

Tel. No.:

91-79-2657 4371-72-73

Fax No.:

91-79-2657 4374

E-Mail :

info@kiriindustires.com

Website:

http://www.kiriindustries.com

Location :

Owned

 

 

Corporate Office/ Factory

1 :

Dyes Division:

 

Plot No. 299/1/A and B, 293/2, Near Water Tank, Phase II, GIDC Industrial Estate, Vatva, Ahmedabad – 382445, Gujarat, India

Tel. No.:

91-79-25894477, 40237444

Fax No.:

91-79-25834960

E-Mail :

info@kiriindustires.com

engage@kiriindustries.com

Location :

Owned

 

 

Factory 2 :

Intermediates Division:

 

Plot No: 396 /399/403/404 EPC Canal Road, Village: Dudhwada, Karakhadi, Taluka: Padra, District Vadodara -  391450, Gujarat, India

Tel. No.:

91-2662-273444

Fax No.:

91-2662-273444

E-Mail :

intermediates@kiriindustries.com  

 

 

Factory 3 :

Basic Chemicals Division:

 

Plot No. 552, 566, 567, 569, 570, 571, Village: Dudhwada, Karakhadi, Taluka: Padra, Vadodara- 391450 Gujarat , India

Tel. No.:

91-2662–273724/ 25

Fax No.:

91-2662-273726

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Pravin Amritlal Kiri

Designation :

Chairman

Address :

53, Manek Baug Society, Ambawadi, Ahmedabad-380006, Gujarat, India

Date of Birth/Age :

01.11.1945

Qualification :

B. Sc. (Chemistry)

Date of Appointment :

14.05.1998

PAN No.:

AIGPK7830A

DIN No.:

00198275

Other Directorship:

CIN/FCRN

Company Name

Begin Date

End Date

U24100GJ2011PLC065068

KIRI PEROXIDE LIMITED

20/04/2011

-

U51109GJ2011PTC066697

CHEMHUB EXIM PRIVATE LIMITED

09/08/2011

-

U24230GJ2015PTC082161

KIRI LABORATORIES PRIVATE LIMITED

03/01/2018

-

 

 

Name :

Mr. Manish Pravinbhai Kiri

Designation :

Managing Director

Address :

53, Manek Baug Society, Ambawadi, Ahmedabad-380006, Gujarat, India

Date of Birth/Age :

26.12.1972

Qualification :

B. E. (Ele. and Comm.) MBA. (Michigan University, USA)

MBA (Waybe State University, Michigan, USA)

Date of Appointment :

14.05.1998

DIN No.:

00198284

Other Directorship:

CIN/FCRN

Company Name

Begin Date

End Date

U33125MH1995PTC090076

TEXANLAB LABORATORIES PRIVATE LIMITED

29/09/2017

-

U24114MH1995PTC094620

DYSTAR INDIA PRIVATE LIMITED

29/09/2017

-

U24114GJ2008PLC053537

LONSEN KIRI CHEMICAL INDUSTRIES LIMITED

01/09/2008

-

U24100GJ2011PLC065068

KIRI PEROXIDE LIMITED

20/04/2011

-

U45200GJ2015PTC081849

INDOCHIN DEVELOPMENT PRIVATE LIMITED

12/01/2015

-

U74999GJ2016PTC093622

KIRI CARBON PRIVATE LIMITED

06/09/2016

-

 

 

Name :

Mrs. Veenaben Jayantilal Padia

Designation :

Independent Director

Address :

10, Rajvi Sapphiregala, Gymkhana Road, Bopal, Ahmedabad - 380058, Gujarat, India

Date of Appointment :

10.10.2014

DIN No.:

06992591

 

 

Name :

Mr. Keyoor Madhusudan Bakshi

Designation :

Independent Director

Address :

205, Nisha Apartments, Opposite Priyadarshini Towers, Near Judges Bungalow's Cross Road, Ahmedabad - 380015, Gujarat, India

Date of Appointment :

26.04.2010

DIN No.:

00133588

Other Directorship:

 

CIN/FCRN

Company Name

Begin Date

End Date

L17119GJ1988PLC096379

TRUPTI TWISTERS LIMITED.

21/11/2016

-

L74140GJ1981PLC084205

SAANVI ADVISORS LIMITED

30/09/2014

-

U74900MH2009PTC195414

ARETHA ADVISORS PRIVATE LIMITED

01/09/2009

-

L64203GJ2010PLC061366

INFIBEAM INCORPORATION LIMITED

30/09/2014

-

L25112GJ1995PLC086579

INNOVATIVE TYRES & TUBES LIMITED

01/06/2015

-

L15142GJ2014PLC080010

GOKUL AGRO RESOURCES LIMITED

16/09/2016

-

U24304GJ2017PTC099510

CEMSEAL INFRAAID PRIVATE LIMITED

17/10/2017

-

 

 

Name :

Mr. Mukesh Gunvantrai Desai

Designation :

Independent Director

Address :

15, Saraswati Society, Opposite Rituraj Complex, Saiyed Vasna Road, Vadodara - 390015, Gujarat, India

Date of Appointment :

11.08.2014

DIN No.:

00089598

Other Directorship:

CIN/FCRN

Company Name

Begin Date

End Date

L25112GJ1995PLC086579

INNOVATIVE TYRES & TUBES LIMITED

01/10/2016

-

U25113GJ2011PTC065716

FUTURE TYRES PRIVATE LIMITED

20/09/2014

-

 

 

KEY EXECUTIVES

 

Name :

Mr. Sureshkumar Savajibhai Gondalia

Designation :

Secretary

Address :

B-7, Ruchi Apartment Lad Society Road, Nehru Park, Vastrapur, Ahmedabad - 380015, Gujarat, India

Date of Appointment :

05.03.2007

PAN No.:

AJAPG5795M

 

 

Name :

Mr. Jayeshkumar Gajanand Vyas

Designation :

Chief Finance Officer

Address :

E/71, Surbhi Park, Behind Samta, Subhanpura, Vadodara - 390023, Gujarat, India

Date of Appointment :

10.10.2014

PAN No.:

ABBPV7408B

 

 

Audit Committee
  • Keyoor Bakshi- Chairman
  • Manish Kiri -- Member
  • Mukesh Desai - Member
  • Veenaben Padia - Member

 

 

Nomination And Remuneration Committee:
  • Mukesh Desai - Chairman
  • Keyoor Bakshi - Member
  • Veenaben Padia - Member

 

 

Stakeholders' Relationship Committee:
  • Veenaben Padia - - Chairman
  • Manish Kiri - Member
  • Keyoor Bakshi - Member

 

 

Corporate Social Responsibility Committee:
  • Veenaben Padia - Chairman
  • Pravin Kiri - Member
  • Manish Kiri - Member
  • Mukesh Desai - Member

 

 

Risk Management Committee:
  • Pravin Kiri - Chairman
  • Manish Kiri - Member
  • Mukesh Desai - Member
  • Yagnesh Mankad - Member
  • Jayesh Vyas - Member

 

 

MAJOR SHAREHOLDERS

 

AS ON DDECEMBER 2017

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of

(A) Promoter & Promoter Group

12890878

42.62

(B) Public

16728073

55.31

(C) Non Promoter-Non Public

625000

2.07

Grand Total

30243951

100.00

 

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)

A1) Indian

0.00

Individuals/Hindu undivided Family

10490878

34.69

Pravinchandra Amratlal Kiri

2501680

8.27

Manishkumar Pravinchandra. Kiri

1822728

6.03

Aruna Pravinchandra Kiri

461550

1.53

Pravinbhai Kiri (HUF)

3682

0.01

Anupama Manishkumar Kiri

5701238

18.85

Any Other (specify)

2400000

7.94

Equinaire Chemtech LLP

2400000

7.94

Sub Total A1

12890878

42.62

A2) Foreign

0.00

A=A1+A2

12890878

42.62

 

 

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 (A+B+C2)

B1) Institutions

0

0.00

Foreign Portfolio Investors

2886101

9.54

GMO Emerging Markets Fund

1322083

4.37

India Opportunities Growth Fund Ltd.- Pinwood Strategy

326091

1.08

APMS Invesment Fund Ltd.

349205

1.15

Financial Institutions/ Banks

738642

2.44

Any Other (specify)

993970

3.29

Vikasa India EIF 1 Fund

843970

2.79

Sub Total B1

4618713

15.27

B2) Central Government/ State Government(s)/ President of India

0

0.00

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

6351285

21.00

Individual share capital in excess of INR 0.200 Million

2333378

7.72

Any Other (specify)

3424697

11.32

Clearing Members

230622

0.76

Foreign Nationals

104291

0.34

HUF

589400

1.95

NRI

493392

1.63

Bodies Corporate

2003992

6.63

Trusts

3000

0.01

Sub Total B3

12109360

40.04

B=B1+B2+B3

16728073

55.31

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE NON PROMOTER- NON PUBLIC SHAREHOLDER

Category & Name of the Shareholders(I)

No. of fully paid up equity shares held(IV)

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)(VIII)

C1) Custodian/DR Holder

0

0.00

C2) Employee Benefit Trust

0

0.00

Employee Benefit Trust

625000

2.07

Sub Total C2

625000

2.07

C= C1+C2

625000

2.07

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Reactive Dyes, Dye Intermediates and Basic Chemicals. (Registered Activity)

 

 

Products / Services :

Item Code No. (NIC Code)

Product Description

20114

Dyes

2011

Intermediaries

2011

Basic Chemicals

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged 

 

 

Imports :

Not Divulged 

 

 

Terms :

Not Divulged 

 

PRODUCTION STATUS – (NOT AVAILABLE)

 

 

GENERAL INFORMATION

 

Suppliers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

833 (Approximately)

 

 

Bankers :

Banker Name :

Indian Bank

Branch :

Ahmedabad Main Branch, Mission Road, Bhadra, Ahmedabad-380001, Gujarat, India

Person Name (With Designation) :

-

Contact Number :

--

Name of Account Holder :

--

Account Number :

--

Account Since (Date/Year of Account Opening) :

--

Average Balance Maintained :

--

Credit Facilities Enjoyed (CC/OD/Term Loan) :

--

Account Operation :

--

Remark :

--

 

 

  • State Bank of India, Overseas Branch, 3rd Floor, Amrit Jayanti Bhavannavjivan Turst Complex, Navjivan P.O., Ahmedabad-380014, Gujarat, India

 

  • Punjab National Bank, Ground Floor, 'A' Wingpelican Building, Ashram Road, Ahmedabad-380009, Gujarat, India

 

  • Export-Import Bank of India, Center One Building, Floor 21,World Trade Center Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India
  • Dhanlaxmi Bank Limited, 3, Motilal Chambers, Income Tax Circle, Near Sales India, Ashram Road, Ahmedabad-380009, Gujarat, India

 

  • Bank of India, Ahmedabad Corporate Banking Branch, 2nd Floor, Bank of India Building, Bhadra, Ahmedabad-380009, Gujarat, India

 

  • Oriental Bank of Commerce, "Neel Kamal" Opposite Sales India, Ashram Road, Ahmedabad-380006, Gujarat, India

 

  • ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Vadodara-390015, Gujarat, India

 

 

Facilities :

SECURED LOANS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Term Loans from Banks and Others

1514.210

2613.975

Total

1514.210

2613.975

 

Note:

 

Sr.

No.

Description of Assets/Security

Security given to

1

All that piece or parcel of lease hold Plot No. 299/1/A, admeasuring about 3767 sq. mtrs., alongwith factory shed

building, Plant and Machinery standing thereon of Vatwa Industrial Estate of Gujarat Industrial Development Corporation, situated upon land bearing Survey No. 416/p and 410/p of mouje: Vinzol, Taluka: Dascroi, Registration District Ahmedabad and Sub-District Ahmedabad-5 (Narol)

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

2

All that piece or parcel of lease hold Plot No. 299/1/B, admeasuring about 2050 sq. mtrs., alongwith factory shed

building, Plant and Machinery standing thereon of Vatwa Industrial Estate of Gujarat Industrial Development Corporation, situated upon land bearing Survey No. 416/p and 410/p of mouje: Vinzol, Taluka: Dascroi, Registration District Ahmedabad and Sub-District Ahmedabad-5 (Narol)

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

3

All that piece or parcel of lease hold Plot No. 10/8, (Phase-I),

admeasuring about 2539 Sq. mtrs. alongwith Factory shed

building, Plant and Machinery standing thereon of Vatwa Industrial Estate of Gujarat Industrial Development Corporation, situated upon land bearing Survey No. 418/p of mouje: Vinzol & Vatwa, Taluka: Dascroi, Registration District Ahmedabad and Sub-District Ahmedabad-5 (Narol)

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

4

All that piece or parcel of non-agricultural land bearing amalgamated Block No. 396 (allotted in lieu of old Block Nos. 396, 399, 400/A, 400/B, 401, 402, 403 and 404/A) totally admeasuring about 45773 sq. mtrs. alongwith factory shed building, plant and machinery at Mouje: Dudhavada, Taluka: Padra, Registration District Vadodara and Sub-District Padra.

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

5

All that piece and parcel of non-agricultural land bearing Block No. 552/A, 566, 567, 569, 570 & 571 admeasuring about 31942 sq. mtrs., alongwith factory shed building, plant and machinery at Mouje: Dudhwada, Taluka: Padra, Registration District: Vadodara and Sub-District: Padra

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

6

All that piece or parcel of lease hold Plot Nos. 365 & 366, admeasuring about 1507.93 sq. mtrs., alongwith factory shed building standing thereon of Vatwa Industrial Estate of Gujarat Industrial Development Corporation, situated upon land bearing Survey 410/p of mouje: Vinzol, Taluka: Dascroi, Registration District Ahmedabad and Sub-District Ahmedabad-5 (Narol)

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

7

All that piece and parcel of nonagricultural land bearing Block No. 390/A, 390/B, 391/A, 391/B, 394/A/1, admeasuring about 22311 sq. mtrs., alongwith factory shed building, plant and machinery situate lying and being at mouje: Dudhwada, Taluka: Padra, Registration District: Vadodara and Sub-District: Padra

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

8

All that piece and parcel of nonagricultural land bearing Block No. 393, 394/A/2 394/B/1, 394/B/2, admeasuring about 16313 sq. mtrs., alongwith factory shed building, plant and machinery, Power plant situate lying and being at mouje: Dudhwada, Taluka: Padra, Registration District: Vadodara and Sub-District: Padara

First charge for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited

9

All that pieces and parcels of lands, comprised in and forming part of lands admeasuring 1,69,463 Sq. mtrs., together with all buildings, structures, erections, etc. constructed and/or to be constructed thereon, both present and future, and being, lying and situated at Village: Kadodara, Tehsil: Wagra & Distt. Bharuch and uninstalled plant and machinery of Hydrogen Peroxide Plant of the Company.

First charge for securing corporate loan from Assets Care and Reconstruction Enterprise Limited.

10

Pledge of 13,11,677 equity shares of Dystar Global Holdings

(Singapore) Pte. Limited

Pledge of 13, 11, 677 equity shares for securing credit facilities from Invent Assets Securitisation and Reconstruction Private Limited.

 

The details of long term borrowings and current maturity of long term borrowings Loans guaranted

 

Secured Loans

Loans from Invent Assets Securitisation and Reconstruction Private Limited, and Assets Care and Reconstruction Enterprise Limited are secured by personal Guarantees of some of the directors.

 

The details of terms of repayment etc of long term borrowings and current maturity of long term borrowings

 

In respect of debts due to Invent Assets Securitization and Reconstruction Private Limited ("Invent") and as per settlement agreements executed by the Company with Invent, the outstanding settlement amount shall be repayable in Quarterly installments starting from September-2015 ending September, 2022. In respect of debts due to Assets Care and Reconstruction Enterprise Limited ("ACRE") and as per settlement agreements executed by the Company with ACRE, the outstanding settlement amount shall be repayable in Quarterly installments starting from March, 2015 ending September, 2019.

 

Financial Institutions:

  • Invent Assets Securitisation and Reconstruction Private Limited, 107, Jolly Maker Chambers No.2225, Nariman Point, Mumbai-400021, Maharashtra, India

 

  • Assets Care and Reconstruction Enterprise Limited, 6th Floor, IFCI Tower 61, Nehru Place, New Delhi-110019, India

 

  • IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai-400001, Maharashtra, India

 

  • SBI Factors and Commercial Services Private Limited, 1st Floor, B.B.C. Tower, Near World Trade Centre, Sayajigunj, Vadodara-390005, Gujarata, India

 

 

Auditors:

 

Name :

Pramodkumar Dad and Associates

Chartered Accountants

Address :

402, Shivalik – 10, Opposite SBI Zonal Office, Near The Grand Mall S.M. Road, Ambawadi, Ahmedabad – 380015, Gujarat, India

Tel No.:

91-79-26306027/ 26306047

Email:

capkdassociates@yahoo.co.in

 

 

Statutory Auditors:

 

Name :

V. D. Shukla and Company 

Chartered Accountants

Address :

22, Aakruti Society, Satellite Road, Ahmedabad - 380015, Gujarat, India

Tel No.:

91-79-26740078

Email:

vdshuklaco1984@yahoo.com

vdshuklaco1984@gmail.com

 

Cost Auditors:

 

Name :

V. H. Savaliya and Associates

Cost Accountants,

Address :

Ahmedabad, Gujarat, India

 

 

Secretarial  Auditors

 

Name :

Kashyap R Mehta and Associates

Company secretarial  

Address :

Ahmedabad, Gujarat, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Wholly Owned Subsidiaries:
  • Synthesis International Limited
  • SMS Chemicals Company Limited
  • Chemhub Trading DMCC

 

 

 

 

Directors Relative of Key Managerial Personnel:
  • Kiri Laboratories Private Limited
  • Indochin Development Private Limited
  • Kiri Peroxide Limited

 

 

 

 

Joint Venture:

Lonsen Kiri Chemical Industries Limited

 

 

 

 

Associate Company:
  • Dystar Global Holdings (Singapore) Pte. Limited any
  • Kiri Infrastructure Private Limited

 

 

 

 

Promoters are Key Managerial Personnel
  • Kiri Carbon Private Limited
  • Equinaire Chemtech LLP

 

 

 

CAPITAL STRUCTURE

 

AFTER: 29.09.2017

 

Authorised Capital : INR 2000.000 million

 

Issued, Subscribed & Paid-up Capital : INR 345.775 million

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

150000000

Equity Shares

INR 10/- each

INR 1500.000 Million

50000000

Preference Shares

INR 10/- each

INR 500.000 Million

 

Total

 

INR 2000.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

27843951

Equity Shares

INR 10/- each

INR 278.440 Million

4333500

Cumulative Non-Convertible Redeemable Preference Shares

INR 10/- each

INR 43.335 Million

 

Total

 

INR 321.775 Million

 

 

The reconciliation of the number of Equity Shares outstanding as at 31.03.2017

 

Particulars

31.03.2016

 

 

Number of shares at the beginning

26549951

Add: Equity Shares issued during the year

1294000

Number of shares at the end

27843951

 

 

The reconciliation of the number of Preference Shares outstanding as at 31.03.2017

 

Particulars

31.03.2016

 

 

Number of shares at the beginning

4333500

Add: Equity Shares issued during the year

--

Number of shares at the end

4333500

 

 

The details of shareholder holding more than 5% Equity Shares as at 31.03.2017

 

Name of the shareholders

No. of shares

% held as at 31.03.2017

Mr. Pravin Kiri

2501680

8.98

Mr. Manish Kiri

1822728

6.55

Mrs. Anupama Kiri

1951238

20.48

Vikasa India EIF I Fund

1498951

6.30

GMO Emerging Markets Fund

1709182

5.38

 

 

LISTING DETAILS:

 

Subject Stock Code :

BSE : 532967

NSE : KIRIINDUS

ISIN : INE415I01015

Stock Exchange Place :

The Stock Exchange, Mumbai

National Stock Exchange of India Limited

Listed Date :

29.09.2017

 

 

FINANCIAL DATA

[all figures are INR Million]

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

31.03.2015

I.      EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

321.775

308.835

270.586

(b) Reserves & Surplus

2417.146

1302.363

879.960

(c) Money received against share warrants

1270.500

175.984

510.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

4009.421

1787.182

1660.546

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1617.613

2688.530

7346.148

(b) Deferred tax liabilities (Net)

264.191

225.407

242.047

(c) Other long term liabilities

6.600

6.096

0.000

(d) long-term provisions

73.052

49.394

2.881

Total Non-current Liabilities (3)

1961.456

2969.427

7591.076

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

15.000

13.072

365.224

(b) Trade payables

1490.271

1355.296

886.546

(c) Other current liabilities

210.023

1666.306

1175.415

(d) Short-term provisions

12.021

8.904

13.526

Total Current Liabilities (4)

1727.315

3043.578

2440.711

 

 

 

 

TOTAL

7698.192

7800.187

11692.333

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3048.977

2769.197

3066.478

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

360.339

30.340

885.403

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1711.914

1744.394

1724.088

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

229.559

140.792

228.407

(e) Other Non-current assets

0.000

0.023

13.272

Total Non-Current Assets

5350.789

4684.746

5917.648

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

32.000

0.000

0.000

(b) Inventories

403.254

504.461

538.832

(c) Trade receivables

1387.208

2165.131

4412.173

(d) Cash and cash equivalents

45.889

23.444

5.072

(e) Short-term loans and advances

472.177

403.196

796.752

(f) Other current assets

6.875

19.209

21.856

Total Current Assets

2347.403

3115.441

5774.685

 

 

 

 

TOTAL

7698.192

7800.187

11692.333

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

9648.295

8890.405

7802.913

 

Other Income

20.042

76.106

22.990

 

TOTAL

9668.337

8966.511

7825.903

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

6365.542

6561.803

5309.438

 

Purchases of Stock-in-Trade

211.066

133.782

214.346

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

235.122

(57.080)

276.361

 

Employees benefits expense

379.901

321.308

255.562

 

Other expenses

 

 

 

 

Administrative Expenses

141.942

257.821

269.853

 

Manufacturing Expenses

882.771

719.993

673.460

 

Selling & Distribution Expenses

153.282

124.521

97.744

 

Prior Period Adjustments

2.949

1.968

19.651

 

Extraordinary item

0.969

(46.961)

0.000

 

TOTAL

8373.544

8017.155

7116.415

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

1294.793

949.356

709.488

 

 

 

 

 

Less

FINANCIAL EXPENSES

80.214

671.503

844.407

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

1214.579

277.853

-134.919

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

223.428

203.768

202.180

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

991.151

74.085

-337.099

 

 

 

 

 

Less

TAX

38.784

(16.640)

31.539

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

952.367

90.725

(368.638)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

1899.571

1443.291

2342.023

 

TOTAL EARNINGS

1899.571

1443.291

2342.023

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

391.306

106.652

116.945

 

TOTAL IMPORTS

391.306

106.652

116.945

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

 

Basic

34.20

3.60

(17.75)

 

Diluted

26.12

2.87

(12.92)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

23.660

1412.226

0.000

Cash generated from operations

2142.664

3262.274

(867.971)

Net Cash Flow from Operations

2103.880

2040.208

(31.539)

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2017

(Unaudited)

30.09.2017

 (Unaudited)

31.12.2017

 (Unaudited)

 

1st  Quarter

2nd Quarter

3rd  Quarter

Net Sales

2897.820

3012.840

2040.620

Total Expenditure

2438.310

2523.810

1800.970

PBIDT (Excl OI)

459.510

489.030

239.650

Other Income

4.820

1.010

10.770

Operating Profit

464.330

490.040

250.420

Interest

9.950

9.590

1.790

Exceptional Items

NA

NA

NA

PBDT

454.380

480.440

248.630

Depreciation

76.760

77.810

59.550

Profit Before Tax

377.620

402.630

189.080

Tax

33.220

50.370

13.650

Provisions and contingencies

NA

NA

NA

Profit After Tax

344.400

352.260

175.440

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

344.400

352.260

175.440

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

52.48

88.89

206.39

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

6.96

4.11

1.77

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

82.71

73.88

58.58

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

3.21

1.88

1.32

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.38

0.34

0.18

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.44

0.92

0.84

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.41

2.30

4.64

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.43

1.70

1.47

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.85

1.57

2.38

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

16.14

1.41

0.84

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

9.87

1.02

(4.72)

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

12.37

1.16

(3.15)

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

23.75

5.08

(22.20)

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.36

1.02

2.37

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

1.13

0.86

2.15

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.52

0.23

0.14

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

5.15

13.32

28.50

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.36

1.02

2.37

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10/-

Market Value

INR 443.00/-

 

 

FINANCIAL ANALYSIS

[all figures are in INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

270.586

308.835

321.775

Reserves & Surplus

879.960

1302.363

2417.146

Money received against share warrants

510.000

175.984

1270.500

Net worth

1660.546

1787.182

4009.421

 

 

 

 

long-term borrowings

7346.148

2688.530

1617.613

Short term borrowings

365.224

13.072

15.000

Current maturities of long-term debts

0.000

1412.226

23.660

Total borrowings

7711.372

4113.828

1656.273

Debt/Equity ratio

4.644

2.302

0.413

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

7802.913

8890.405

9648.295

 

 

13.937

8.525

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

7802.913

8890.405

9648.295

Profit/ (Loss)

(368.638)

90.725

952.367

 

(4.72%)

1.02%

9.87%

 

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

 

31.03.2017

31.03.2016

I.      EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

321.775

308.835

(b) Reserves & Surplus

 

8808.223

5982.329

(c) Money received against share warrants

 

1270.500

175.984

 

 

 

 

(2) Translation Reserve

 

(5.397)

(22.026)

Total Shareholders’ Funds (1) + (2)

 

10395.101

6445.122

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

1617.613

2688.530

(b) Deferred tax liabilities (Net)

 

322.097

283.817

(c) Other long term liabilities

 

6.600

6.096

(d) long-term provisions

 

73.051

49.394

Total Non-current Liabilities (3)

 

2019.361

3027.837

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

105.196

146.012

(b) Trade payables

 

1874.547

1956.267

(c) Other current liabilities

 

313.198

1798.947

(d) Short-term provisions

 

60.725

17.754

Total Current Liabilities (4)

 

2353.666

3918.980

 

 

 

 

TOTAL

 

14768.128

13391.939

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

3668.716

3328.317

(ii) Intangible Assets

 

94.777

0.000

(iii) Capital work-in-progress

 

360.339

56.394

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

7248.667

5678.328

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

237.495

148.728

(e) Other Non-current assets

 

0.625

0.856

Total Non-Current Assets

 

11610.619

9212.623

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

825.001

857.759

(c) Trade receivables

 

1538.006

2534.541

(d) Cash and cash equivalents

 

132.461

200.488

(e) Short-term loans and advances

 

644.867

573.384

(f) Other current assets

 

17.174

13.144

Total Current Assets

 

3157.509

4179.316

 

 

 

 

TOTAL

 

14768.128

13391.939

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

11231.503

10299.236

 

Other Income

 

45.998

128.239

 

TOTAL

 

11277.501

10427.475

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

7490.579

7339.338

 

Purchases of Stock-in-Trade

 

211.066

133.782

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

145.034

1.214

 

Employees benefits expense

 

452.532

391.618

 

Other expenses

 

 

 

 

Administrative Expenses

 

162.136

298.723

 

Manufacturing Expenses

 

1025.196

864.216

 

Selling & Distribution Expenses

 

173.305

141.610

 

Prior Period Adjustments

 

3.105

2.217

 

Extraordinary item

 

0.969

(46.962)

 

TOTAL

 

9663.922

9125.756

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

1613.579

1301.719

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

88.215

737.977

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

1525.364

563.742

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

 

292.685

268.626

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

1232.679

295.116

 

 

 

 

 

Less

TAX

 

130.344

38.375

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

 

1102.335

256.741

 

 

 

 

 

Add

SHARE OF PROFIT FROM ASSOCIATES

 

1561.141

1700.392

 

 

 

 

 

 

PROFIT FOR THE YEAR

 

2663.476

1957.133

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

 

Basic

 

95.66

77.62

 

Diluted

 

73.05

61.88

 

 

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

No

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

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 two/ 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

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

HIGHLIGHTS OF OPERATIONS:

 

Total Revenue:

 

During the year, the revenues of the Company increased by 8%. The Company has reported turnover of INR 9668.337 Million for the financial year 2017 as compared to INR 8966.511 Million for the financial year 2016. The volumes of the company increased during the current fiscal year especially volumes in Dyestuff increased by 25%, Intermediates by 18% and basic chemicals by 7% as compared to FY 2015-16.

 

 

Profit before Finance Cost, Depreciation, Tax and Prior period adjustments:

 

During the year, earning before Finance cost, Depreciation, Tax and prior period adjustment is increased by 44% from INR 904.400 Million to INR 1298.700 Million which is mainly on account of reduction in cost of material consumed and administrative expenses as compared to the previous financial year. During the current fiscal year, Exports of the company increased by 56.72 % as compared to previous year.

 

Total Expense:

 

During the year, the Total Expense increased by 9% amounting to INR 89288.000 Million as Compared to INR 81630.000 Million of the previous financial year. The increases in total expenses are mainly on account of increase in cost of material consumed, Employee Benefits Expenses, Manufacturing Expenses and selling and distribution expenses as compared to the previous financial year.

 

Net Profit:

 

During the year, the Company has triggered a remarkable millstone to achieve historical earning after tax (EAT) of INR 952.367 Million as compared to INR 90.725 Million of the previous financial year ended March 31, 2016. EAT increase 10 times as compared to previous financial year due to the increase in Revenue and sharp reduction in finance cost on account of repayment of outstanding debt during the financial year 2017.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY STRUCTURE AND DEVELOPMENT:

 

Development in Indian Chemical Industries

 

The Indian Chemical Industry is fundamental part of Indian economy which is key linkages with several mainstream economic segments including agriculture, infrastructure, textiles, food processing plastic, paper etc. It is needed to focus and provide support to knowledge based segments of the chemical industry namely Specialty Chemicals. There is a large talent pool in the country, coupled with huge emerging market resulting from massive urbanization, infra building and increasing aspirations of the masses of India.

 

The development in the Chemical Industries depends upon the five pillars i.e. world class engineering and strong R&D capabilities, enormous growth for the domestic market, Government Policy support and increase in investment initiatives, Great Infrastructural Investment and Increase in GDP and purchasing power. With Asia’s growing contribution to the global chemical industry, India is emerging as one of the focus destinations for chemical companies worldwide.

 

The chemicals exports from India in 2015-16 went up by 7.5% in volume terms. During the period from April 2016 – Jan 2017, the exports have grown by 1.5% in value and 7.59% volume terms. Indian chemical companies now able to compete with world’s chemical companies including China. The impact of the steps initiated by the governments will be visible in the current financial year onwards. This industry has shown remarkable spirit in adverse global conditions.

 

India Chemical Operations continued strong focus on operational efficiencies contributed to improved profitability of the business in a mixed business environment.

 

Strengthening the backbone of Indian Chemical Industry

 

Since this industry has numerous forward and backward linkages, it is called the backbone of the industrial and agricultural development of the country and provides building blocks for many downstream industries. The GDP of a country depends mainly on its exports. The stability of a country improves when there is more export and less import, and also if the country is self sufficient to meet its needs. Chemical industry not only provides stability to the country but also enhances the confidence.

 

Global Economic Environment

 

The Global economic environment remained challenging in 2016 and is expected to continue for some more time, since the global economic scenario is growing at snails speed, especially in developed economies. International Monetary Fund (IMF) in its latest outlook has marginally upped the world GDP growth projections from 3.1% in 2016 to 3.5% in 2017 and 3.5 % in 2018.

 

The real GDP growth in the United States dropped sharply to 1.6% in 2016 primarily on account of soft exports and declining investments. The growth is expected to rebound to 2.3% in 2017 and expected 2.5% in 2018 backed by expectations of fresh fiscal stimulus from the administration.

 

The real GDP growth in the Euro area declined to 1.7% in 2016 as exports and investments lost momentum. A modest recovery is projected to be supported by a mildly expansionary fiscal stance, and a weaker euro and beneficial spillovers from a likely U.S. fiscal stimulus. However, risks associated with Brexit coupled with uncertainty arising from elections in several countries, will weigh down on the growth. The real GDP growth is expected to continue at 1.7% in 2017 and slow down marginally to 1.6% in 2018.

 

In the United Kingdom (UK), the magnitude of the impact of Brexit is yet to be determined completely following a stronger than expected performance in the second half of 2016, leading to a GDP growth of 1.8%. Real GDP growth is expected to improve marginally to 2.0% in 2017 but fall to 1.5% in 2018 as the impact of Brexit is projected to materialise more gradually than expected.

 

Growth in China is expected to reduce further from 6.6% in 2017. This continues the gradual slowdown of economic growth for China as the economy is rebalancing from industry to services. Services have now overtaken industry as the leading growth driver.

 

Domestic Economic Outlook

 

India’s GDP is expected to expand at faster rate as compared to other major economies, according to the IMF World Economic Outlook, at 7.2% in FY 2017-18, compared to 7.1% in FY 2016-17. Economists suggest that the state action of demonetization and economic reforms in form of Goods and Services Tax (GST) shall not affect the growth of Indian economy because of the vast population and the economy is a consumption lead economy. Economists suggest policy initiatives by the Government of India, such as Make in India and Start-up concept, structural reforms (the introduction of GST and formalisation of the inflation targeting framework) has improved the overall confidence for India amongst Industry Captains worldwide.

 

Indian Chemical Industry

 

In terms of value and production volume, Indian chemical industry is the third largest producer in Asia and sixth by output in the world. The Indian Chemical Industry has witnessed robust growth in the past decade and according to United Nations Industrial Development Organization (UNIDO), it is expected to register a growth of 8-9% in the next decade and double its share in global chemical industry to 5-6% by 2021. Many MNCs are focusing on India for considering it as their manufacturing hub. Low labour cost, availability of key raw materials, large consumer markets and adaptability to technology, Governmental Reforms has been the main attractions for having a strong manufacturing base in India.

 

Company Overview and Sustainable Profitable Growth Strategy

 

Kiri is a manufacturer of Reactive Dyes, Dye Intermediates and Basic Chemicals. The Company is a total solution provider across the entire textile value chain providing quality products to its sales network globally.

 

Kiri’s operations are vertically integrated across the dyes synthesis textile value chain, to provide dyes, intermediates and basic chemicals. The Company’s facilities are also versatile enough to allow it the flexibility to produce Reactive Dyes, acid / metal complex dyes and wool reactive dyes. This in turn has enabled the Company to meet the time, quantity and quality requirement of its customers. By virtue of the large scale facilities and fully integrated operations from manufacturing of basic chemicals, manufacturing of dye intermediaries and dyes, the Company derives benefits of economies of scales and quality control. This along with the Company’s wide product range makes it a preferred partner for sourcing of dyes.

 

Kiri’s R&D activities broadly comprise various processes for developing new products and standardizing new analytical methods. It’s R&D center focuses especially on products and technologies that improve products and processes for a better ecological profile and provide cost advantages for customers. Through the R&D center, the Company continuously interacts with consumers to obtain feedback on its existing as well as new products to complement its new product development activities.

 

OUTLOOK AND OPPORTUNITIES

 

The Indian chemical industry has graduated from manufacturing principle chemicals in a highly regulated market to being a mature industry in a liberalized economy. Until 1991, India had a closed economy, with the domestic chemical industry enjoying protection in the form of differential import duties on raw materials and finished chemical products. Chemical manufacturing was largely controlled by licensing regulations.

 

The speed of innovations in chemical processing has exceedingly increased over the last couple of years. Now there is more focus on optimizing alternative production technologies and using alternative energy sources.

 

The chemical industry is among the fastest growing ones in India. The bulk of chemicals produced in India comprise either upstream products or intermediates, which go into a variety of manufacturing applications including fertilizers, pharmaceuticals, textiles and plastics, agrochemicals, paints and dyes.

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Zero Coupon Foreign Currency Convertible Bonds

103.403

74.555

Short-term borrowings

 

 

Inter Corporate Deposits

15.000

13.072

Total

118.403

87.627

 

INDEX OF CHARGES

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

C42211151

10455274

INVENT ASSETS SECURITISATION AND RECONSTRUCTION PRIVATE LIMITED

27/09/2013

03/11/2014

-

450000000.0

107, JOLLY MAKER CHAMBERS, NO.2225, NARIMAN POINT, MUMBAI-400021, MAHARASHTRA, INDIA

2

C56133093

10424536

INVENT ASSETS SECURITISATION AND RECONSTRUCTION PRIVATE LIMITED

23/03/2013

17/04/2015

-

2176400000.0

107, JOLLY MAKER CHAMBERS, NO.2225, NARIMAN POINT, MUMBAI-400021, MAHARASHTRA, INDIA

3

C56064264

10424538

INVENT ASSETS SECURITISATION AND RECONSTRUCTION PRIVATE LIMITED

23/03/2013

17/04/2015

-

2740100000.0

107, JOLLY MAKER CHAMBERS, NO.2225, NARIMAN POINT, MUMBAI-400021, MAHARASHTRA, INDIA

4

C42210393

10375838

INVENT ASSETS SECURITISATION AND RECONSTRUCTION PRIVATE LIMITED

09/08/2012

03/11/2014

-

85800000.0

107, JOLLY MAKER CHAMBERS, NO.2225, NARIMAN POINT, MUMBAI-400021, MAHARASHTRA, INDIA

5

C52064086

10360164

ASSETS CARE & RECONSTRUCTION ENTERPRISE LIMITED

01/06/2012

30/09/2014

-

468120010.0

6TH FLOOR, IFCI TOWER 61, NEHRU PLACE, NEW DELHI-110019, INDIA

6

B26610568

10321746

IDBI TRUSTEESHIP SERVICES LIMITED

09/11/2011

-

-

1000000000.0

ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI-400001, MAHARASHTRA, INDIA

7

C56068869

10278588

INVENT ASSETS SECURITISATION AND RECONSTRUCTION PRIVATE LIMITED

29/03/2011

17/04/2015

-

6297800000.0

107, JOLLY MAKER CHAMBERS, NO.2225, NARIMAN POINT, MUMBAI-400021, MAHARASHTRA, INDIA

8

C42208264

10281369

INVENT ASSETS SECURITISATION AND RECONSTRUCTION PRIVATE LIMITED

25/03/2011

03/11/2014

-

945000000.0

107, JOLLY MAKER CHAMBERS, NO.2225, NARIMAN POINT, MUMBAI-400021, MAHARASHTRA, INDIA

9

C56059637

10272361

INVENT ASSETS SECURITISATION AND RECONSTRUCTION PRIVATE LIMITED

18/03/2011

17/04/2015

-

1381300000.0

107, JOLLY MAKER CHAMBERS, NO.2225, NARIMAN POINT, MUMBAI-400021, MAHARASHTRA, INDIA

10

A70358833

10177117

SBI FACTORS AND COMMERCIAL SERVICES PRIVATE LIMITED

15/09/2009

-

-

30000000.0

1ST FLOOR, B.B.C. TOWER, NEAR WORLD TRADE CENTRE, SAYAJIGUNJ, VADODARA-390005, GUJARATA, INDIA

 

 

 

CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Guarantees given by Banks on behalf of the Company for various purposes.

6.453

8.426

Disputed Income Tax / Excise matters for various assessment years f or which appeals are pending with Appellate authorities.

175.730

185.937

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS DECEMBER 31, 2017

 

[INR IN MILLION]

 

PARTICULARS

3 Months

9 Months

 

31.12.2017

30.09.2017

31.03.2017

 

[Unaudited]

[Unaudited]

[Unaudited]

1. Income from Operations

 

 

 

Net Sales/income from operations

2040.623

2559.718

6978.901

Other Operating Income

10.774

14.532

26.371

Total income from operations (net)

2051.397

2574.250

7005.272

 

 

 

 

Expenses

 

 

 

Cost of materials consumed

1151.869

1397.786

3991.983

Purchases of stock-in trade

33.653

71.424

152.637

Changes in inventories of finished goods. work-in-progress and stock in trade

(43.902)

(62.981)

(165.052)

Employee benefits expense

74.494

70.567

213.343

Depreciation and Amortization Expenses

59.551

59.244

176.954

Other Expenses

345.399

417.720

1104.087

Finance Costs

1.786

2.191

6.423

Excise Duty

239.467

292.785

692.727

Total expenses

1862.317

2248.736

6173.102

Profit/ (Loss) from ordinary activities after finance cost but before exceptional items

189.080

325.514

832.170

Exceptional items

0.000

0.000

0.000

Profit/ (Loss) from ordinary activities before tax

189.080

325.514

832.170

Tax expenses

13.645

24.834

52.936

Net Profit / (Loss) from ordinary activities after tax

175.435

300.680

779.234

Extraordinary item (net of tax expense)

0.000

0.000

0.000

Net Profit / (Loss) for the period

175.435

300.680

779.234

Comprehensive Income

0.025

0.032

0.453

Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates

175.460

300.712

779.687

Paid up equity share capital (Face Value of INR 10/-each)

302.440

278.440

302.440

Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year

- 

- 

- 

Earnings per share (before extraordinary items) of INR 10/- each (not annualized):

- 

- 

- 

(a) Basic

6.11

10.80

27.71

(b) Diluted

3.84

6.64

16.83

 

Note:

 

  1. The Company operates in a single segment i.e. Dyes, Dyes Intermediates and basic chemicals. As per Ind As 108 - Operating Segments, the Operation of the Company fall under Chemical Business which is considered to constitute as single primary segment.
  2. The financial results for the quarter and nine months ended December 31, 2017 have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) as per section 133 of the Companies Act, 2013 and other applicable accounting policies and practices. Accordingly the figures for the quarter and nine months ended December 31, 2016 have been restated as per the Ind AS to make it comparable with quarter and nine months ended December 31, 2017.
  3. The above results have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS), prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable. With effect from April 1, 2017, the company has first time adopted Ind AS with transition date of April 1, 2016.
  4. The statutory Auditors of the company have carried out a "Limited Review" of the above results as per Regulation 33 of the SEBI [Listing Obligation and Disclosure Requirements] Regulations, 2015.
  5. Earnings per share for the quarter and nine months ended has been calculated as per weighted average formula and diluted Earnings per share has been calculated considering proposed issue of equity shares on account of conversion of convertible securities.
  6. During the quarter, the Company has allotted 24,00,000 Equity Shares on account of conversion of warrants into Equity Shares to Promoter Group in accordance with SEBI (ICDR) Regulations, 2009.
  7. The above financial results were reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meeting held on February 13, 2018.
  8. There is a disagreement and dispute for a substantial amount in DyStar Results relating to Management Fees, Guarantee Fees and also Bonus & Special Incentives. During Calendar Year December 31, 2017, the disputed Management Fees and Guarantee Fees amounted to US$.10.30 Mio. Additionally Bonus & Special Incentive has been charged to DyStar's Financial Performance which are not included in the amount of US$10.30Mio, The Company has taken the position that the claims underlying such disputed amount by the DyStar Management/Longsheng Group have not been property substantiated and therefore should not be approved and/or paid. The Non-Recurring provision for restructuring cost in DyStar amounting to US$7.3Mio has also impacted the financial performance of DyStar.
  9. The reconciliation of net profit reported in accordance with Indian GAAP to Total Comprehensive Income in accordance with Ind AS is given For Table.
  10. Relevant material information of a major investment in DyStar Group (Company holds 37.57% shareholding) for the quarter ended December 31, 2017.

 

FIXED ASSETS

 

TANGIBLE ASSETS

 

  • Land
  • Building
  • Plant and Machinery
  • Electrification
  • Office Equipments
  • Furniture and Fixture
  • Vehicles
  • Computer

 

INTANGIBLE ASSETS

 

  • Computer Software
  • Capital Work In Progress

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records 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 65.08

UK Pound

1

INR 89.85

Euro

1

INR 80.16

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVT

 

 

Analysis Done by :

PSD

 

 

Report Prepared by :

MTN

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

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)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.