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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

507223

Report Date :

08.05.2018

 

 

 

 

IDENTIFICATION DETAILS

 

Name :

SKIPPER LIMITED                                      

 

 

Registered Office :

3A, Loudon Street, 1st Floor, Kolkata – 700017, West Bengal

Tel. No.:

91-33-22895731

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

05.03.1981

 

 

Com. Reg. No.:

21-033408

 

 

Capital Investment / Paid-up Capital :

INR 102.320 Million

 

 

CIN No.:

[Company Identification No.]

L40104WB1981PLC033408

 

 

IEC No.:

0294006109

 

 

TIN No.:

19460350006

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AADCS7272A

 

 

GSTN :

[Goods & Service Tax Registration No.]

19AADCS7272A1ZE

 

 

Legal Form :

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

 

 

Line of Business :

Subject is engaged in the business of:

 

·         Manufacturing of Engineering Products includes Towers, Angles, Highmast Poles, Swaged Poles, scaffoldings etc.

 

·         Manufacturing of Polymer Product includes PVC, CPVC, UPVC, SWR pipes and fittings and other related products.

 

·         The Infrastructure Projects segment includes Horizontal Direct Drilling services and Engineering, Procurement and Construction services.

 

[Registered Activity]

 

 

No. of Employees :

2245 (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

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Maximum Credit Limit :

USD 14000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject was established in the year 1981 and is engaged in manufacturing of engineering products, PVC water pipes and related accessories.

 

As per the financial record of 2017, the company has achieved 13.06% growth in its revenue as compared to previous year and has maintained satisfactory profitability margin of 6.55% during the year under review.

 

The company’s sound financial profile is reflected by its above average solvency indicators due to low debt balance sheet profile along with sound net worth base and average liquidity position.

 

Rating also derive strength from company’s established track record of business operations and promoters extensive industry experience.

 

However, rating strengths is partially offset by vulnerability of its operating margins to volatility in raw material prices and working capital intensive operations.

 

Payments are reported to be regular and as per commitment.

 

In view of aforesaid, 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

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Borrowing = AA-

Rating Explanation

High degree of safety and very low credit risk

Date

27.03.2018

 

 

Rating Agency Name

CARE

Rating

Short Term Borrowing = A1+

Rating Explanation

Very Strong degree of safety and carry lowest credit risk

Date

27.03.2018

 

 

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 08.05.2018

 

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 PARTED BY

 

Name :

Mr. Himadri 

Designation :

Accounts Department

Contact No.:

91-8071743067

Date :

05.05.2018

 

 

LOCATIONS

 

Registered Office :

3A, Loudon Street, 1st Floor, Kolkata – 700017, West Bengal, India  

Tel. No.:

91-33-22895731/32/33/ 22892327

Mobile No.:

91-8071743067 (Mr. Himadri)

Fax No.:

91-33-22895733

E-Mail :

mail@skipperlimited.com

manish.agarwal@skipperlimited.com

investor.relations@skipperlimited.com

Website :

http://www.skipperlimited.com

Location :

Owned

Locality :

Industrial

 

 

Corporate Office :

B-68, Swashtya Vihar, Near Sakarpur, New Delhi – 110092, India

 

 

Factory 1:

NH6, Madhabpur, Post: Uluberia Howrah – 711303, West Bengal, India  

 

 

Factory 2:

Jalan Complex, NH6 (Bombay Road), Village: Jangalpur Post: Andu Mouri, Andul, Howrah – 711302, West Bengal, India

 

 

Factory 3:

Survey No. 823, Opposite Rajvi Apartment Rajoda Village, Pavla, Taluka: Bavla District – Ahmedabad, Gujarat, India

 

 

Factory 4:

Plot No – 5, UPSIDC, Industrial Area, G.T Road No – 91, Sikandrabad,
Dist – Bulandshahar– 203206, West Bengal, India

 

 

Factory 5:

Lohia Industrial Estate, 659, Mouza: Dakhin Rani Kahi Kuchi Village Near Railway Gate District – Kamrup (Metro)– 781017, Assam, India

 

 

Factory 6:

Village- Parlley Mouza- Chayani Revenue Circle- Palashbari District- Kamrup Rural, Assam

 

 

Factory 7:

Survey No.296/7/8/9, IDA Bollaram, Jinnaram, District – Medak - 502325, Telangana, India

 

 

Marketing Office 1:

6, Bishop Leffroy Road, 1st Floor, Paul Mansion, Near Lee Banquets, Kolkata – 700020, West Bengal, India

Tel. No.:

91-33-22901231

 

 

Marketing Office 2:

Solitaire Corporate Park 1, Building No. 6, 5th Floor 652, Andheri Ghatkopar, Link Road, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India

Tel. No.:

91-22-61935300

 

 

Marketing Office 3:

19 R N Mukherjee Road, Kolkata – 700001, West Bengal, India

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Ashok Bhandari

Designation :

Additional Director

Address :

19B, Mandeville Garden Rajiv Apartment, 4th Floor, Kolkata – 700019, West Bengal, India

Date of Appointment :

06.09.2017

DIN No.:

00012210

 

 

Name :

Mr. Yash Pall Jain

Designation :

Additional Director

Address :

Flat No. 1/B 14-4/A, Burdwan Road, Kolkata – 700027, West Bengal, India

Date of Appointment :

06.09.2017

DIN No.:

00016663

 

 

Name :

Mr. Sharan Bansal

Designation :

Wholetime Director

Address :

17, Moore Avenue Regent Estate, Kolkata – 700040, West Bengal, India

Date of Appointment :

29.06.2004

DIN No.:

00063481

 

 

Name :

Mr. Sajan Kumar Bansal

Designation :

Managing Director

Address :

17, Moore Avenue Regent Estate, Kolkata – 700040, West Bengal, India

Date of Appointment :

26.10.1984

DIN No.:

00063555

 

 

Name :

Mr. Devesh Bansal

Designation :

Wholetime Director

Address :

17, Moore Avenue Regent Estate, Kolkata – 700040, West Bengal, India

Date of Appointment :

05.04.2002

DIN No.:

00162513

 

 

Name :

Mr. Manindra Nath Banerjee

Designation :

Director

Address :

124, Jodhpur Park, Kolkata – 700068, West Bengal, India

Date of Appointment :

17.09.2007

DIN No.:

00312918

 

 

Name :

Ms. Mamta Binani

Designation :

Director

Address :

105/1, Bidhannagar Road, C-203, Suncity Complex, Kolkata – 700067, West Bengal, India

Date of Appointment :

12.02.2015

DIN No.:

00462925

 

 

Name :

Mr. Amit Kiran Deb

Designation :

Director

Address :

Block - Da -38, Sector - 1, Salt Lake Bidhannagar (N), North 24, Parganas Salt Lake – 700064, West Bengal, India

Date of Appointment :

28.01.2010

DIN No.:

02107792

 

 

Name :

Mr. Joginder Pal Dua

Designation :

Director

Address :

House No. 1715, First Floor, DLF, Phase - 4, Chakkarpur, Gurugram -  122002, Haryana, India

Date of Appointment :

01.02.2016

DIN No.:

02374358

 

 

Name :

Mr. Siddharth Bansal

Designation :

Wholetime Director

Address :

17 Moore Avenue, Regent Park Kolkata – 700040, West Bengal, India

Date of Appointment :

10.03.2010

DIN No.:

02947929

 

 

KEY EXECUTIVES

 

Name :

Mr. Himadri 

Designation :

Accounts Department

 

 

Name :

Mr. Manish Agarwal

Designation :

Company Secretary

Address :

Jessore Heritage 48/8, Jessore Road, Kolkata- 700055, West Bengal, India

Date of Appointment :

08.02.2017

PAN No.:

AHXPA8328B

 

 

Name :

Mr. Sanjay Kumar Agrawal

Designation :

Chief Finance Officer

Address :

83/84/85 Salkia School Road, Block-A, 2nd Floor Howrah – 711106, West Bengal, India

Date of Appointment :

12.08.2014

PAN No.:

AEWPA6446E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on March, 2018

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

Promoter and Promoter Group

72044162

70.23

Public

30538800

29.77

Grand Total

102582962

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

A1) Indian

0.00

Individuals/Hindu undivided Family

42436537

41.37

Meera Bansal

2779859

2.71

Devesh Bansal

3622175

3.53

Sharan Bansal

4696955

4.58

Sumedha Bansal

5766631

5.62

Rashmi Bansal

6864396

6.69

Sajan Kumar Bansal

8237796

8.03

Siddharth Bansal

10468725

10.21

Any Other (specify)

29607625

28.86

Vaibhav Metals Private Limited

367500

0.36

Utsav Ispat Private Limited

380625

0.37

Skipper Polypipes Private Limited

399000

0.39

Samriddhi Ferrous Private Limited

1443750

1.41

Aakriti Alloys Private Limited

1979250

1.93

Ventex Trade Private Limited

4987500

4.86

Skipper Plastics Limited

20050000

19.55

Sub Total A1

72044162

70.23

A2) Foreign

0.00

A=A1+A2

72044162

70.23

 


STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

B1) Institutions

0

0.00

Mutual Funds/

9415169

9.18

DSP Blackrock Fund (Consolidated)

1866601

1.82

IDFC Equity Fund (Consolidated)

1958380

1.91

L & T Mutual Fund Trustee Limited (Consolidated)

5100031

4.97

Alternate Investment Funds

1823597

1.78

DSP BLACKROCK EMERGING STARS FUND

1758024

1.71

Foreign Portfolio Investors

6318432

6.16

ICG Q LIMITED

1305000

1.27

OCEAN DIAL GATEWAY TO INDIA MAURITIUS LIMITED

2750000

2.68

Financial Institutions/ Banks

5220

0.01

Sub Total B1

17562418

17.12

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

5794007

5.65

Individual share capital in excess of INR 0.200 Million

3054447

2.98

NBFCs registered with RBI

2130

0.00

Any Other (specify)

4125798

4.02

Non-Resident Indian (NRI)

750527

0.73

Aakarshan Tracom Private Limited

1607242

1.57

Clearing Members

138714

0.14

Trusts

651

0.00

Bodies Corporate

3235906

3.15

Sub Total B3

12976382

12.65

B=B1+B2+B3

30538800

29.77

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of:

 

·         Manufacturing of Engineering Products includes Towers, Angles, Highmast Poles, Swaged Poles, scaffoldings etc.

 

·         Manufacturing of Polymer Product includes PVC, CPVC, UPVC, SWR pipes and fittings and other related products.

 

·         The Infrastructure Projects segment includes Horizontal Direct Drilling services and Engineering, Procurement and Construction services.

 

[Registered Activity]

 

 

Products :

Item Code No.

Product Description

25119

Engineering Products

22209

Polymer Products

4220

Infrastructure Projects

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :

Finished Goods

Countries :
  • United States of America
  • United Arab Emirates
  • Sri Lanka
  • European Countries etc.

 

 

Imports :

Not Available

 

 

Terms :

 

Selling :

Cash, Cheque, Credit, Others (NEFT, RTGS)

 

 

Purchasing :

Cash, Cheque, Credit, Others (NEFT, RTGS)

 

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 :

Wholesalers and End users

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

2245 (Approximately)

 

 

Bankers :

Bank Name

State Bank of India

Branch

11 Loudon Street, District – Kolkata - 700017, West Bengal, India

Person Name (With Designation)

--

Contact Number

91-33-22876676 (Ringing)

Name of Account Holder

--

Account Number

--

Account Since (Date/Year of Account Opening)

--

Average Balance Maintained (If Possible)

--

Credit Facilities Enjoyed (If any)

--

Account Operation

--

Remarks (If any)

--

 

  • Allahabad Bank
  • Bank of Baroda
  • Punjab National Bank
  • Oriental Bank of Commerce
  • Corporation Bank
  • Bank of India
  • Union Bank of India
  • IDBI Bank
  • Syndicate Bank
  • Dena Bank
  • HDFC Bank

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

From Banks:

 

 

Rupee Term Loans

610.930

434.910

Foreign Currency Term Loans From Banks

694.100

479.990

Less: Current maturities of term loan

(203.170)

(148.810)

From Bodies Corporate :

 

 

Rupee Term Loan

187.350

185.900

Less: Current maturities of term loan

0.000

(9.300)

Hire purchase loans :

 

 

From banks

10.370

18.070

From others

3.080

3.690

 

 

 

Short-term borrowings

 

 

Working Capital Facilities from Banks:

 

 

Cash Credit facilities including Commercial Paper

1931.520

1490.560

Buyers Credit from Banks:

 

 

For Capital Expenditure

123.870

101.780

For Operational Use

344.940

336.840

Total

3702.990

2893.630

Note:

 

Long-term Borrowings

 

Security against Secured Loans are as follows :

 

Rupee Term Loans from Banks of INR 9.170 million (Previous Year: INR 27.500 million) are secured by way of first pari- passu charge over all immovable and moveable fixed assets, both present and future of Jangalpur unit, Howrah of the company excluding those assets for which there is an exclusive charge of other lenders. It is further secured by the second pari-passu charge on the current assets of the Company both present and future, excluding those assets for which there is an exclusive charge of other lenders.

 

Rupee Term Loans from Banks of INR 119.760 million (Previous Year: INR 207.410 million) and Foreign Currency Term Loans of INR 538.490 million (Previous Year: INR 479.990 million) are secured by way of first pari- passu charge over all immovable and moveable fixed assets, both present and future of Uluberia unit, Howrah of the company excluding those assets for which there is an exclusive charge of other lenders. It is further secured by the second pari-passu charge on the current assets of the Company both present and future, excluding those assets for which there is an exclusive charge of other lenders.

 

Foreign Currency Term Loan from Banks of INR 155.610 million (Previous Year: Nil) and Rupee Term Loan from banks of INR Nil (Previous Year: INR 200.000 million) is secured by way of first pari- passu charge over all immovable and moveable fixed assets, both present and future of Uluberia unit and Jangalpur Unit, Howrah of the company excluding those assets for which there is an exclusive charge of other bankers. It is further secured by the second pari-passu charge on the current assets of the Company both present and future, excluding those assets for which there is an exclusive charge of other bankers.

 

Rupee Term Loan from Body Corporate of INR 187.350 million (Previous Year: INR 185.900 million) is secured by way of first pari- passu charge on plant and machinery of Polymer units situated at Ahmedabad, Guwahati (Unit 1), Hyderabad and Sikandrabad.

 

Rupee Term Loans from Banks of INR 482.000 million (Previous Year: Nil) is secured by way of first pari- passu charge over all immovable and moveable fixed assets, both present and future, of Guwahati (Unit 2).

 

Vehicle loans from Banks of INR 21.700 million (Previous Year: INR 32.780 million) and INR 3.690 million (Previous Year: INR 4.240 million) from Others are secured against hypothecation of respective fixed assets financed by them.

 

Loans From Related Parties of INR 253.740 million (Previous Year: INR 107.650 million) and Loans From Other Body Corporate of INR 100.500 million (Previous Year: INR 745.250 million), being long term in nature, have not been considered in the above repayment schedule.

 

Interest Rates:

 

(i) Rupee Term Loan from Banks carries interest ranging from base rate/MCLR plus 20 bps to base rate/ MCLR plus 300 bps, Rupee Term Loan from Body Corporates carries interest of SBI base rate plus 130 bps and Foreign currency Term Loans from Banks bear interest from 3 months libor plus 250 bps to 6 months libor plus 390 bps.

 

(ii) Vehicle Loan from Banks/Others carries interest rate between 9% to 12% p.a.

 

(iii) Unsecured Loan from Body corporates, from Related parties and from Banks carries interest between 9% to 12.50% p.a.

 

SHORT-TERM BORROWINGS

 

Working Capital and Buyers Credit are secured by first charge on current assets and second charge on fixed assets of Jangalpur, Uluberia, Ahmedabad, Guwahati (Unit 1), Hyderabad and Sikandrabad Units of the Company and also by personal guarantees of some of the directors of the Company.

 

Interest on working Capital Facilities from banks carries interest ranging from 6.75% to 10.45%. Buyer’s Credit from Banks bears interest from 3 months/ 6 months libor plus 20 bps to 3 months/6 months libor plus 80 bps.

 

Auditors :

 

Name :

Singhi and Company

Chartered Accountants

Address :

161, Sarat Bose Road, Kolkata- 700026, West Bengal, India

Tel. No.:

91-33-24196000

Mobile No.:

91-9836233222

E-Mail :

kolkata@singhico.com

Website :

www.singhico.com

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Parties where key managerial personnel along with their relatives have significant influence.

  • Skipper Realties Limited (Formerly Bansal TMT Steels Limited)
  • Skipper Telelink Limited
  • Ventex Trade Private Limited
  • Skipper Plastics Limited (Formerly Rama Consultancy Company (1993) Limited)
  • Suviksit Investments Limited
  • Skipper Polypipes Private Limited (Formerly Prakriti Steels Private Limited)
  • Skipper Foundation
  • Sadhuram Bansal Foundation
  • Sheo Bai Bansal Charitable Trust

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

410000000

Equity Shares

INR 1/- each

INR 410.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

102316462

Equity Shares

INR 1/- each

INR 102.320 Million

 

 

 

 

 

The Reconciliation of the number of shares outstanding is set out below:

(INR IN Million)

Particulars

As at 31-03-2017

Equity Shares at the beginning of the year

102.316

Add: Equity Shares issued during the year

--

Equity Shares At the end of the year

102.316

 

Rights, Preferences and Restrictions attached to Equity Shares:

 

The Company has one class of equity shares having a par value of INR 1 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, except in case of interim dividend. 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.

 

Details of shareholders holding more than 5% shares:

 

Name of Shareholders

As at 31-03-2017

 

No of Shares

%

Mr. Sajan Kumar Bansal

8,237,796

8.05

Mr. Siddharth Bansal

10,468,725

10.23

Mrs. Rashmi Bansal

6,864,396

6.71

Mrs. Sumedha Bansal

5,766,631

5.64

Skipper Plastics Limited

20,050,000

19.60

 

The Company does not have any Holding Company

 

The Company has reserved Equity Shares for issue under the Employee Stock Options Scheme. Please refer note no. 38 on “Employee Share-Based Payment” for details of Employee Stock Options Plan.

 

None of the securities are convertible into shares at the end of the reporting period.

 

The Company during the preceding 5 years –

(i) Has not allotted shares pursuant to contracts without payment received in cash.

(ii) Has issued 4,872,212 nos. of shares as fully paid up by way of bonus shares.

(iii) Has not bought back any shares.

 

There are no calls unpaid by Directors / Officers.

 

The Company has not forfeited any shares.

 

                                                                   


 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

102.320

102.320

102.320

(b) Reserves & Surplus

4840.660

3712.910

2936.340

(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)

4942.980

3815.230

3038.660

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1758.290

1983.220

1706.930

(b) Deferred tax liabilities (Net)

390.950

314.770

264.660

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

21.900

13.460

2.140

Total Non-current Liabilities (3)

2171.140

2311.450

1973.730

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2400.330

2521.190

1724.080

(b) Trade payables

2891.060

2123.800

2415.030

(c) Other current liabilities

899.480

937.700

1277.330

(d) Short-term provisions

4.660

193.210

208.070

Total Current Liabilities (4)

6195.530

5775.900

5624.510

 

 

 

 

TOTAL

13309.650

11902.580

10636.900

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

4633.900

3839.960

3500.770

(ii) Intangible Assets

8.470

12.460

11.900

(iii) Capital work-in-progress

143.620

399.460

34.680

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

149.990

21.780

30.600

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

4935.980

4273.660

3577.950

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

3681.800

2499.870

2282.400

(c) Trade receivables

3729.660

3723.670

3757.810

(d) Cash and cash equivalents

249.350

497.960

560.940

(e) Short-term loans and advances

712.860

907.420

457.800

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

8373.670

7628.920

7058.950

 

 

 

 

TOTAL

13309.650

11902.580

10636.900

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

17029.640

15062.230

13127.970

 

Other Income

31.250

51.660

16.560

 

TOTAL

17060.890

15113.890

13144.530

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

11729.500

9538.050

8550.870

 

Purchases of Stock-in-Trade

0.000

0.000

0.000

 

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

(821.480)

(53.110)

246.460

 

Employees benefits expense

731.540

499.620

340.980

 

Other expenses

2929.690

2885.180

1838.050

 

TOTAL

14569.250

12869.740

10976.360

 

 

 

 

 

 

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

2491.640

2244.150

2168.170

 

 

 

 

 

Less

FINANCIAL EXPENSES

610.980

570.040

582.570

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

1880.660

1674.110

1585.600

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

315.470

241.150

219.920

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

1565.190

1432.960

1365.680

 

 

 

 

 

Less

TAX

450.220

481.660

473.970

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

1114.970

951.300

891.710

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2159.870

1529.400

932.500

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transfer to General Reserve

0.000

148.430

134.720

 

Proposed Dividend on Equity Shares

0.000

143.240

133.010

 

Corporate Tax on Dividend

0.000

29.160

27.080

 

Total (M)

0.000

320.830

294.810

 

 

 

 

 

 

Balance Carried to the B/S

3274.840

2159.870

1529.400

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

1322.530

6230.850

523.120

 

TOTAL EARNINGS

1322.530

6230.850

523.120

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

1623.490

1167.010

483.770

 

Components, Spare Parts and Stores etc.

5.430

9.500

3.480

 

Capital Goods (including Capital Work In Progress)

65.090

115.700

94.810

 

TOTAL IMPORTS

1694.010

1292.210

582.060

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

10.90

9.30

8.72

 

Particulars

 

 

 

31.03.2018

Sales Turnover (Approximately)

 

 

14000.000

 

 

 

 

 

The above information has been parted by Mr. Himadri (Accounts Department)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

207.860

162.290

380.490

Cash generated from operations

2204.630

1106.060

2076.290

Net cash flow from operating activity

1752.320

651.210

1738.160

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2017

30.09.2017

31.12.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

4327.240

5156.200

5664.240

Total Expenditure

3811.140

4473.340

4923.480

PBIDT (Excl OI)

516.100

682.860

740.760

Other Income

7.520

3.260

3.300

Operating Profit

523.620

686.120

744.060

Interest

168.560

200.290

176.260

Exceptional Items

NA

NA

NA

PBDT

355.060

485.830

567.800

Depreciation

107.480

120.500

117.600

Profit Before Tax

247.580

365.330

450.200

Tax

87.820

132.920

158.220

Provisions and contingencies

NA

NA

NA

Profit After Tax

159.760

232.410

291.980

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

159.760

232.410

291.980

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

79.94

90.23

104.48

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

4.57

4.04

3.49

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

89.96

81.27

103.09

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.68

0.90

0.95

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.52

0.53

0.61

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.61

0.67

0.73

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.88

1.22

1.25

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

1.25

1.51

1.85

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.97

1.11

1.17

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

4.08

3.94

3.72

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

6.55

6.32

6.79

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

8.38

7.99

8.38

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

22.56

24.93

29.35

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.35

1.32

1.26

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.76

0.89

0.85

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.37

0.32

0.29

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

42.67

45.61

37.25

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.35

1.32

1.26

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

 

 

STOCK PRICES

 

Face Value

INR 1.00/-

Market Value

INR 195.45/-

 

 

FINANCIAL ANALYSIS

[all figures are 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

102.320

102.320

102.320

Reserves & Surplus

2936.340

3712.910

4840.660

Net worth

3038.660

3815.230

4942.980

 

 

 

 

Long Term borrowings

1706.930

1983.220

1758.290

Short Term borrowings

1724.080

2521.190

2400.330

Current Maturities of Long term debt

380.490

162.290

207.860

Total borrowings

3811.500

4666.700

4366.480

Debt/Equity ratio

1.254

1.223

0.883

 

 

 

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

13127.970

15062.230

17029.640

 

 

14.734

13.062

 

 

 

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

13127.970

15062.230

17029.640

Profit

891.710

951.300

1114.970

 

6.79%

6.32%

6.55%

 

 

 

LEGAL CASES

 

HIGH COURT

 

MS GSL PROTFOLIO P LTD Vs. MS SKIPPER LTD & OTHERS MEHTAPRITPAL NIJJAR

high court-Delhi

Case no:CS(OS) 1218/2013 I.A. 9881/2013 I.A. 15028/2013 I.A. 7622/2015

Case status:Pending

Judge:HON BLE MR. JUSTICE VIBHU BAKHRU

Date:2016-07-22

 

HIGH COURT

 

MS GSL PROTFOLIO P LTD Vs. MS SKIPPER LTD & OTHERS MEHTAPRITPAL NIJJARROHIT

high court-Delhi

Case no:CS(OS) 1218/2013 I.A. 9881/2013 I.A. 15028/2013 I.A. 7622/2015

Case status:Pending

Judge:HON BLE MR. JUSTICE NAVIN CHAWLA

Date:2017-12-18

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

Yes

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

Yes

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

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 four years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

 

 

FINANCIAL PERFORMANCE HIGHLIGHTS

 

The Company has achieved consistent, robust and continuing growth in the areas of its business segments. The

Company’s performance during the year has reached its expected goal and the Company continued to grow its market both domestic and international.

 

The net income of the Company increased to INR 17060.890 million from INR 15113.890 million in the previous year registering a growth of 12.88 %. At the same time Profit Before Taxation (PBT) has also increased to INR 1565.190 million from INR 1432.960 million in the previous year registering a growth of 9.23% and Profit After Taxation increased to INR 1114.970 million from INR 951.300 million registering a growth of 17.20%.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Economic Overview

 

India Economic Outlook

 

The Indian economy is growing strongly and remains a bright spot in the global landscape. The decline of global oil prices has boosted economic activity in India, further improved the external current account and fiscal positions, and helped lower inflation. In addition, continued fiscal consolidation, by reducing government deficits and debt accumulation, and an anti-inflationary monetary policy stance have helped cement macroeconomic stability.

 

The government has made significant progress on important economic reforms, which will support strong and sustainable growth going forward. In particular, the implementation of the goods and services tax, which has been in the making for over a decade, will help raise India’s medium-term growth, as it will enhance the efficiency of production and movement of goods and services across Indian states.

 

India’s economy grew by 7.1% in fiscal 2017. India’s overall outlook remains positive, although growth slowed temporarily as a result of disruptions to consumption and business activity from the recent withdrawal of high-denomination banknotes from circulation. The year 2017 was marked by a variety of institutional reforms such as the implementation of the Insolvency and Bankruptcy Code, creation of Monetary Policy Committee, redesigning of the FRBM framework, passage of GST, and the policy thrust towards a less-cash formal economy.

 

India remains the fastest growing large developing economy. India has positioned itself as the most dynamic emerging economy among the largest countries and is expected to remain the fastest growing on the back of robust private consumption and significant domestic reforms gradually being implemented by the government.

 

Challenges remain, however, and there is little scope for complacency. A key concern is the health of the banking system, which is still dealing with a large amount of bad loans, and also heightened corporate vulnerabilities in several key sectors of the economy.

 

 

India’s Competitiveness

 

The Indian economy has benefited from a stable macroeconomic environment of low inflation and interest rates, which has helped it overcome a temporary slow-down in consumer spending and a drop in investment that followed the demonetisation program. India’s economy has also benefited from ongoing market reforms that have improved competitiveness.

 

India has risen rapidly among all countries in the global competitive stakes by climbing 16 notches to the 39th position during the past year in the World Economic Forum’s (WEF) Global Competitiveness Index. This has marked the biggest scale of improvement in competitiveness among all countries and it is the second year in a row India has gone up 16 ranks in the WEF index. The increased overall competitiveness has been a result of improvement in institutions and infrastructure, recent reforms of opening the economy to foreign investors and increasing transparency in the financial system.

 

India’s competitiveness has improved, particularly in goods market efficiency, business sophistication and innovation, while lower oil prices and improved monetary and fiscal policies have made the economy not only stable, but also the fastest growing among G20 countries.

 

 

Global Economic Outlook

 

Economic activity gained momentum in the second half of 2016, especially in advanced economies. Growth picked up in the United States as firms grew more confident about future demand, and inventories started contributing positively to growth. Growth also remained consistent in the United Kingdom, where spending proved resilient in the aftermath of the June 2016 referendum in favor of leaving the European Union.

 

Activity surprised on the upside in Japan, owing to strong net exports; as well as in Euro area countries, such as Germany and Spain, as the result of a strong domestic demand. Financial market sentiment toward emerging market economies has improved with expectations of lower interest rates in advanced economies, reduced concern about China’s near-term prospects following policy support to growth, and some firming of commodity prices. But prospects differ sharply across countries and regions, with emerging Asia in general and India in particular showing robust growth and remains the fastest growing economy; while sub-Saharan Africa experiencing a sharp low down. In advanced economies, a subdued outlook subject to sizable uncertainty and downside risks may fuel further political discontent, with anti-integration policy platforms gaining more traction. Activity remained generally weak in fuel and non-fuel commodity exporters, while geopolitical factors held back growth in parts of the Middle East and Turkey. Overall, global growth was reported to be 3.1% in 2016, and is projected to increase to 3.5% in 2017 and 3.6% in 2018.

 

 

INDUSTRY OVERVIEW

 

Power Sector – India

 

Electricity sector in India is growing at rapid pace. During the year FY 2017, the peak demand stood at 159 GW and the installed generation capacity was 326.84 GW. The demand for electricity is expected to increase at a CAGR of 7% to 1894.7 TWh by FY 2022. The expansion in industrial activity, growing population and increasing penetration and percapita usage will drive demand for electricity.

 

In an indication of growing appetite for electricity in India, the country’s per capita electricity consumption has reached 1075 kilowatt-hour (kWh) in 2015-16, compared with 914.41 kWh in 2012-13, according to the Central Electricity Authority (CEA). However, India’s per capita power consumption is among the lowest in the world. Around 280 million people in the country do not have access to electricity. In comparison, China has a per capita consumption of 4,000 kWh, with developed nations averaging around 15,000 kWh per capita.

 

Power Transmission

 

India’s Power Transmission networks constitute the vital arteries of the entire power value chain. It goes without saying that the growth of power sector is contingent to development of a robust and a non-collapsible transmission network. Over the past decades, the total power capacity has witnessed commendable growth, with over 327 GW of generation capacity currently installed in India. However, some of India’s power surplus regions do not have adequate power evacuation infrastructure, which could alleviate the recurring supply shortages in other parts of the nation. Transmission bottlenecks are an important reason for these shortages. Non-performance of the power transmission sector has an adverse spiral effect on the entire economy. Improvement of this sector is, therefore, essential for the economic well-being of the country and enhancement of the quality of life of citizens. Since demand and generation capacity are both expected to increase in the future, transmission constraints need to be addressed urgently. During the year 2016-17, a total of 26,300 circuit-km (ckm) of transmission lines and 81,816 MVA transformation capacity was added in Central, State and Private Sector.

 

The transmission sector has taken up several initiatives in order to expand the grid resource efficiently. For instance, to reduce Right Of Way (ROW) requirements for transmission lines, 765kV transmission voltage is increasingly being adopted. This is due to the fact that a single-circuit 765 kV line can carry as much power as three single-circuit 500 kV lines, three double circuit 345 kV lines, or six single-circuit 345 kV lines, reducing the overall number of lines and rights of way required to deliver equivalent capacity.

 

With the massive generation capex witnessed in India over the past decade, the country’s transmission capex is now catching up. This positions the T&D focused players in a sweet spot in terms of order inflows. There is an estimated INR 2.6 tn capex till 2022 which gives strong growth visibility for T&D players. Of this capex, INR 1.4 tn is allocated towards transmission and INR 1.2 tn in transformation. Over 60% of the total spend is likely to come from states with INR 1 tn of spending in inter regional grid capacity, INR 1.3 tn in intra-regional grid capacity and INR 300 bn in distribution (sub 220KV) systems. In terms of Inter regional grid capacity, India is expected to add another 46GW during the five-year period from 2017-22.

 

At the end of FY 2017, PGCIL has a CWIP of INR 390 bn along with a pipeline of INR 1tn, which it expects to be executed over the next four years. Such order book depict the sustained robustness of growth for the T&D EPC companies. While PGCIL capex over the next few years will remain them ainstay for the T&D companies, newer opportunities in terms of intrastate transmission projects and renewables are expected. With SEB balance sheets improving post UDAY, there is renewed hope of increased capex within states. The thrust on renewables grid connectivity and the green energy corridor are also expected to bring new opportunities in this space.

 

Riding on reforms, and significant investments planned by the Government, private players are increasingly eyeing the transmission segment as a potential steady income generating business. India’s transmission sector has key fundamentals such as strong regulatory push, expanded market base with push for renewable sector, and attractive risk return profiles. Furthermore in the last two years, the Government has taken several measures to resolve current bottlenecks and enable players to make investments in creating new T&D platforms resulting in viable opportunities for capital deployment.

 

 

UDAY Scheme

 

The Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the government. Under this, 75% of the discom debt is to be transferred to the respective state governments, while the rest would be converted into state government guaranteed bonds.

 

Except for West Bengal and Orissa, all the other states are part of UDAY. Of these, 16 DISCOMs aggregating to INR 3.2 tn (approximately 80% of total DISCOM debt) have gone for restructuring of loans. The scheme has already yielded savings of nearly INR 120 bn to the state power distribution companies. Over 85% UDAY Bonds have been issued leading to less rate of interest for DISCOMs.

 

As a result, there have been tangible improvements as ATC losses, which have come down to 22% (as per data of 22 states) from 24% levels in FY2016.

 

Impact of the Scheme

 

• Financially and operationally sound DISCOMs

• Increased demand for power

• Improvement in PLF of generating plants

• Reduction in stressed assets

• Availability of cheaper funds

• Increased capital investment

• Development of Renewable Energy sector Ultimately, availability of 24*7 Power For All at affordable price

 

COMPANY OVERVIEW

 

About Skipper

 

Skipper Limited, is India’s largest T&D Structure manufacturing company and among the 10th largest companies in the world. The Company is also a leading and reputed manufacturer of PVC pipes for water transportation and a trusted partner for executing critical Infrastructure EPC projects.

 

Skipper serves as a ‘one-stop solution’ providing clients advanced value added solutions that are optimally designed and meticulously executed. Its integrated manufacturing units, focused management and committed production and quality teams makes Skipper the preferred choice for all customers across sectors.

 

With a dominant presence across the country, the Company has a strong presence globally as well. It exports infrastructure and engineering products to countries in Africa, Australia, Middle East, South Asia, South America and Europe.

 

OUR BUSINESS VERTICALS

 

Engineering Products Business

 

Over the year, Skipper Limited has emerged as India’s only company of its size, focusing mainly on transmission tower manufacturing, rather than EPC. Skipper was the first company in India to manufacture and supply 800 KV transmission towers to PGCIL. It is also one of the lowest cost producer of transmission tower in the world. It ranks among the world’s Top 10 T&D Structure manufacturer and is recognized as the largest player in India. Skipper is also one of the first players to get into transmission monopoles production. The monopoles are gaining traction in the Indian market. During the year, it tested the first 66 KV transmission monopoles, qualifying itself for more transmission monopoles projects.

 

As a fully integrated manufacturing enterprise, the Company has the capability to deliver cost optimisation, swifter time-to-market entry, high quality control, timely dispatch, superior customer service, much lower exposure to commodity price fluctuations, higher margins, better business sustainability and the ability to enter into new geographies with new products and solutions. The Company has its own captive galvanising plants and angle and plate CNC lines to ensure the highest product quality and timely supplies, strengthening customer trust and ensuring repeat business. Over 75% of Skipper’s manufacturing is carried out using automated CNC lines, imported from reputed global suppliers.

 

Skipper has widened its presence across multiple business sub-segments, including Towers, Tubular Poles, Monopoles and EPC. Its backward integrated plant helps it to have complete control over the value chain from angles to tower production to fasteners to EPC with a high degree of performance.

 

 

Key Highlight, FY 2017

 

The Company has an order book of INR 25890.000 million, with a well diversified mix of domestic and export business. The engineering product segment, mainly catering to power transmission and distribution sector, is seeing robust growth from Power Grid, State Electricity Board, as well as private board operators. The robust growth is driven by initiatives such as smart grids, green corridor, renewed capex by State Electricity Boards (SEBs) and government’s focus on renewable energy. On the back of these, the Company’s order book is expected to remain healthy.

 

Skipper has built up a strong domestic base and over the years, and has now successfully transformed itself from being predominantly a domestic player, to a company with a significant exports business as its mainstay. During the year, the Company entered into newer geographies of Botswana, Philippines, Tanzania, Ghana, Cameroon, Kenya, Congo and Malaysia.

 

The Engineering Division recorded revenue of INR 13992.600 million, as compared to INR 12821.600 million in the previous year, constituting 83% of the company’s total overall revenue in FY2017.

 

 

Polymer Products Business

 

The Company continues to expand its national foot print and its upward growth trajectory in the organised PVC pipe market. Skipper’s overall piping capacity stands at 51,000 MT. The Company plans to double its capacity in order to address India’s need for superior quality of PVC pipes and products.

 

Over the years, the Company has developed a strong product portfolio of polymer products which includes UPVC Lead-Free Plumbing Pipes, CPVC by Durastream hot and cold Pipes and Fittings, SWR Magik Flow Pipes and Fittings, HDPE Pipes, Agricultural Pipes and Fittings, Overhead Tanks and Borewell and Irrigation Pipes and Fittings.

 

Skipper has now become a large-scale manufacturer enjoying tremendous economies of scale in the procurement of PVC resins, both locally as well as through imports. Even on the supply side, the Company has a widespread distributorship of over 3,500 channel partners that is paving way for the Skipper brand to become a household brand.

 

For its PVC capacity addition the Company has adopted an asset-light approach. Under the Company has opted to lease land, rather than own it. As this approach is likely to reduce costs significantly, by maintaining the debt level and through prudent capital allocation, this strategy is expected to help generate better returns on investments for the Company.

 

Key Highlight, FY 2017

 

During the year, the Company commissioned a new Greenfield project in Palasbari (near Guwahati) with a capacity of 7,000 MTPA of Polymer products (CPVC and UPVC Fittings) to cater nationwide Polymer fittings requirement. A new PVC asset light plant at Hyderabad with a capacity of 9,000 MTPA was also commissioned during the year. With this additional capacity, the Company is focused on building a robust network of channel partners to widen its geographical presence

 

Skipper’s key partnerships with Sekisui and Wavin group, is helping the Company achieve premium brand positioning and product differentiation. Over time, these value added products are expected to increase the blended margins of this business. Further, the Company is working towards diversifying its product mix to gain a larger share in the polymer market.

 

The Polymer Division recorded a revenue of INR 1980.100 million, as compared to INR 1525.300 million in the previous year, constituting 12% of the company’s total overall revenue in FY2017.

 

Infrastructure Division

 

The Company is a fully integrated global infrastructure Engineering, Procurement and Construction (EPC) major. It offers integrated solutions across tower design, tower testing, manufacturing, and onsite construction.

 

The Company possesses a dedicated vertical for EPC line construction, with a specialized skill set to execute turnkey transmission projects upto 800 kV HVDC for various utilities. The Company is also engaged in Horizontal Directional Drilling (HDD) which facilitates the faster installation of underground utilities, eliminating the need for surface excavation.

 

The Company is a pioneer of trench-less technology service in India. It provides Trenchless horizontal drilling for the installation of Telecoms cable networks, HT/LT Power cable networks, water and sewerage pipelines and oil and gas pipelines, among others. Using state-of-the-art equipment, we have accomplished successful projects across India.

 

The Infrastructure Division recorded a revenue of INR 813.000 million, as compared to INR 276.600 million in the previous year, constituting 5% of the company’s total overall revenue in FY2017.

 

International Business

 

The Company enjoys a strong presence in the overseas T&D market and is increasingly focusing on developing new market geographies to further expand its international reach. During the year, the Company gained entry into the newer market geographies of Asia and Africa by bagging new orders in Botswana, Kenya, Tanzania, Cameroon, Congo, Ghana, Philippines and Malaysia.

 

Robust Order Book

 

The Company’s engineering products order book position as on 31st March 2017 stands at INR 25890.000 million, as compared to INR 24290.000 million in the previous year. The order book is well diversified between domestic and international orders. Also, the recently received Power Grid approval for the Distribution Pole will enable to tap the large potential Pole requirements for upcoming Power Grid DMS projects in the North-Eastern region of India. The Company is witnessing uptick in ordering and execution. It expects order book to remain strong, with increased participation opportunities from Power Grid, SEBs, TBCB projects and Renewable projects. In the international business, they are bidding for several international projects in different geographies.

 

 

MANAGEMENT OUTLOOK

 

The Company’s prudent approach to reinforce orders, industry barriers, efficient working capital management, and increasing PVC Pipes capacity through the asset light model augur well for their future growth. Their robust order book provides revenue visibility in the T&D business. In addition to this, a multi-fold expansion in the PVC business on a pan-India level provides scalable growth opportunities. Order traction from state transmission utilities will be our next driver for growth for the Engineering Products segment, with a huge potential depending on the success of the UDAY scheme. Additionally, the entry of large private players in the transmission sector will help them reduce their dependence on PGCIL. The ramp-up of production in the PVC segment will also drive growth.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Loans from Related Parties

253.740

107.650

From Bodies Corporate

59.790

119.580

From Banks

41.600

46.29

Intercorporate Loans

100.500

745.250

 

 

 

Short-term borrowings

 

 

Short Term Borrowings from Banks

0.000

592.010

 

 

 

Total

455.630

1610.780

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

G44441392

100099569

Export- Import Bank of India

28/04/2017

-

-

1000000000.0

Centre One Building, Floor 21, World Trade CentreCuffe Parade, MumbaiMumbaiMH400005IN

2

G43788553

100097244

CENTRAL BANK OF INDIA

19/04/2017

-

-

1800000000.0

Corporate Finance Branch33, Netaji Subhas RoadKolkataWB700001IN

3

G37122629

100080880

ICICI BANK LIMITED

28/12/2016

-

-

1675000.0

ICICI Bank Tower, Near Chakli Circle,Old Padra RoadVadodaraGu390007IN

4

G33884826

100073778

HDFC BANK LIMITED

26/12/2016

-

-

525000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMa400013IN

5

G32360687

100069833

ALLAHABAD BANK

16/12/2016

-

-

4948000000.0

INDUSTRIAL FINANCE BRANCH17, R. N. MUKHERJEE ROAD, 4TH FLOORKOLKATAWB700001IN

6

G32144024

100069316

UNION BANK OF INDIA

13/12/2016

-

-

2350000000.0

Industrial Finance Branch1/1, Camac Street, 1st FloorKolkataWB700016IN

7

G22369656

100060333

HDFC BANK LIMITED

16/09/2016

-

-

2185000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

8

G05230883

100031411

HDFC BANK LIMITED

18/04/2016

-

-

1459608.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

9

C76199603

10613888

TATA CAPITAL FINANCIAL SERVICES LIMITED

29/12/2015

-

-

250000000.0

One Forbes,Dr. V. B. Gandhi Marg, FortMumbaiMH400001IN

10

G03631041

100027746

DAIMLER FINANCIAL SERVICES INDIA PRIVATE LIMITED

29/04/2015

-

-

4650000.0

Unit 202, 2nd Floor, Campus 3B,RMZ MillenniaBusiness Park, No.143, Dr. M.G.R.Road,PerungudiChennaiTa600096IN

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED 31ST DECEMBER, 2017

 

(INR in Million)

 

 

Particulars

31.12.2017

(Quarter Ended)

30.09.2017

(Quarter Ended)

31.12.2017

(Nine Months Ended)

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

5664.240

5156.200

15147.680

 

 

b) Other Operating Income

3.300

3.260

14.08

 

Total Income from Operations (Net)

5667.540

5159.460

15161.760

2

Expenses              

 

 

 

 

a)

Cost of Materials consumed

3692.620

3854.920

10503.360

 

b)

Excise duty

0.000

0.000

338.990

 

c)

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

209.680

(397.390)

(673.370)

 

d)

Employee benefit expenses

235.540

251.290

696.800

 

e)

Finance Costs

176.260

200.290

545.110

 

f)

Depreciation and amortization expense

117.600

120.500

345.580

 

g)

Other expenses

785.640

764.520

2342.180

 

Total Expenses

5217.340

4794.130

14098.650

 

 

 

 

 

3

Profit before Tax

450.240

365.330

1063.110

4

Tax Expense

158.200

132.920

378.960

5

Net Profit for the period after tax

291.990

232.410

684.150

 

 

 

 

 

6

Other Comprehensive Income

 

 

 

 

Items that will not be reclassified of profit or loss

(0.280)

(0.280)

(0.840)

 

Income tax related to items that will not be reclassified of profit or loss

0.100

0.090

0.290

 

Total other Comprehensive Income

(0.180)

(0.190)

(0.550)

 

 

 

 

 

 

Total Comprehensive Income for the period

291.810

232.220

683.600

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

2.85

2.27

6.68

 

 

STATEMENT OF ASSETS AND LIABILITIES

 

(INR in Million)

SOURCES OF FUNDS

31.12.2017

(Quarter Ended)

30.09.2017

(Quarter Ended)

31.12.2017

(Nine Months Ended)

Particulars

 

 

 

 

 

 

 

Segment Revenue

 

 

 

a) Engineering Products   

4863.270

4633.670

13148.320

b) Polymer Products   

539.930

427.840

1400.810

c) Infrastructure Projects

261.040

94.690

598.550

 

 

 

 

Net Sales/Income from Operations

5664.240

5156.200

15147.680

 

 

 

 

Segment Results

 

 

 

 

 

 

 

a) Engineering Products   

638.780

606.040

1684.280

b) Polymer Products   

36.010

28.190

95.090

c) Infrastructure Projects

32.010

11.250

72.710

Sub Total

706.80

645.480

1852.080

 

 

 

 

Less: Interest

176.260

200.290

545.110

Less: Interest Income 

2.960

3.170

10.410

         Other-Un-allocable Expenditure net off Un-allocable Income

83.300

83.030

254.270

 

 

 

 

Total Profit / (Loss) before Tax

450.200

365.330

1063.110

 

 

 

 

 Segment assets

 

 

 

a) Engineering Products   

14360.220

12613.900

14360.220

b) Polymer Products   

2582.660

2366.010

2852.660

c) Infrastructure Projects

877.140

757.050

877.140

d) Un-allocated

340.750

349.670

340.750

Total Segment assets

18160.770

16086.630

18430.770

Segment Liabilities

 

 

 

a) Engineering Products   

4281.730

3775.900

4281.730

b) Polymer Products   

364.550

269.920

364.550

c) Infrastructure Projects

176.860

133.200

176.860

d) Un-allocated

700.920

692.700

700.920

Total Segment Liabilities

5524.060

4871.720

5524.060

 

NOTE :

 

1. The Company has adopted Indian Accounting Standards (Ind AS), prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder, with effect from April 01, 2017 and accordingly these financial results have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016. The financial results have been prepared in accordance with the recognition and measurement principles in Ind AS 34 – Interim Financial Reporting. The figures for the quarter and nine months ended 31st December, 2016 presented here are also Ind AS compliant. 


The Company has opted to avail relaxation by SEBI vide circular no. CIR/CFD/FAC/62/2016 dated July 05, 2016 in respect of disclosure requirements for corresponding figures of earlier periods. Accordingly, the financial results for the year ended 31 March, 2017 have not been presented. The reserves (excluding revaluation reserve), as per the balance sheet of the previous accounting year not being mandatory, have not been presented. 


2. The aforementioned results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 6th February, 2018 at Kolkata. Limited Review of these results as required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been carried out by the Statutory Auditors. 


3. The Company has allotted 1,79,500 equity shares of Re 1 each on 4th January, 2018 to the option grantees, pursuant to the exercise of options under the Employee Stock Option Schemes. 


4. Consequent to introduction of Goods and Service Tax (GST) with effect from 1st July, 2017, Central Excise, Value Added Tax (Vat), etc. have been replaced by GST. In accordance with Indian Accounting Standard - 18 on Revenue and Schedule III on the Companies Act, 2013, GST is not included in the Gross Revenue From Operations for applicable periods. In view of the aforesaid restructuring of indirect taxes, Revenue From Operations and Segment Revenue (Gross) for the quarter ended 31st December, 2017, quarter ended 30th September, 2017 and nine months ended 31st December, 2017 are not comparable with previous periods. Following additional information is being provided Net of Excise Duty to facilitate Comparison of Segment Revenue: 

 

Particulars

31.12.2017

(Quarter Ended)

30.09.2017

(Quarter Ended)

31.12.2017

(Nine Months Ended)

Segment revenue (Net of Excise duty)

 

 

 

Engineering Products    

4863.270

4633.670

3522.560

Polymer Products   

539.930

427.840

465.850

Infrastructure Projects

261.040

94.690

262.900

Revenue from operations (Net of Excise duty)

5664.240

5156.200

4251.310

 

6. The previous period figures have been regrouped/rearranged wherever necessary, to confirm to the current period figures.

 

 

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Claims against the Company not acknowledged as debt Disputed tax/duties

are as follows:-

 

 

Nature of Contingent Liability

 

Status Indicating Uncertainties

 

 

Demand notices issued by Central

Excise Department

 

 

The matter is pending with Commissioner(A) /CESTAT. (Related

to year: 2005-06, 2007-08, 2009-10 to 2012-13) [Paid INR 10.000 million (Previous Year: ` 10 million)]

29.990

29.990

Demand notices issued by Service Tax Department

The matter is pending with Commissioner(A) / CESTAT (Related to year: 2005-06, 2007-08, 2009-10 to

2012-13) [Paid INR 0.010 million (Previous Year: INR 0.010 million)]

17.200

6.100

CST Demand issued by Assessing Authority

The matter is pending with Joint Commissioner- Commercial Taxes / WB Commercial Taxes Appellate and Revisional Board (Related to year: 2005-06, 2006-07, 2011-12 & 2012-13)

53.650

53.650

Sales tax/VAT demands issued by Assessing Authority

The matter is pending with Joint Commissioner- Commercial Taxes/Additional Commissioner- Commercial Taxes/ WB Commercial Taxes Appellate and Revisional Board (Related to year: 2005-06, 2006-07, 2009-10, 2011-12 and 2012-13)

77.180

77.180

Note:

 

The Company does not expect any reimbursements in respect of the above contingent liability.

 

It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at pending resolution of the appellate proceedings.

 

A nine judge bench of the Supreme Court of India upheld the constitutional validity of entry tax by majority decision subject to fulfilling of certain conditions. Majority members held that entry tax should not be discriminatory in nature. The writ petition is pending at the division bench of Kolkata challenging the levy of West Bengal tax on Entry of goods into local areas Act 2012 (the Act), on the ground that it is violation of articles 304(a) and Article 14 of the Constitution. The Hon’ble High Court of Calcutta has granted interim order that tax shall not be realized by State. However, the petitioner Companies have been directed to comply with the provisions of Entry tax relating to filing of return etc. It has been legally advised that the levy of Entry tax in the state of West Bengal would not pass the acid test of discrimination in as much as the Hon’ble Supreme Court has categorically stated that “State Legislature in exercise of its taxing power can grant exemption / set off to locally produce and manufactured goods only to a limited extent based on the intelligible differentia which is not in the nature of the general / unspecified exemptions.” There is a blanket, unlimited and unspecified exemption provided by the state of West Bengal on the intra-state movement of goods, which may contradict the guidelines laid down by the Hon’ble Supreme Court.

 

In view of the above fact and as per the legal opinion received, management is of the view that no provision is required on account of entry tax.

 

 

FIXED ASSETS

 

TANGIBLES:

 

  • Land and Land Development
  • Buildings
  • Plant and Machinery
  • Furniture and Fixtures
  • Vehicles

 

 

INTANGIBLES:

 

  • Computer Software

 

 

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 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 66.77

UK Pound

1

INR 90.58

Euro

1

INR 80.12

 

 

INFORMATION DETAILS

 

Information Gathered by :

RUB

 

 

Analysis Done by :

PRY

 

 

Report Prepared by :

KJL

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

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.