Investments have gone up largely due to Uniply Decor transactions as evident from the detailed breakdown of the non-current investments as per FY18 Annual Report of Uniply Industries:
In regards to interest income, another curious thing is that interest income is exactly same at 2.33cr for both standalone and consolidated level. This is despite average cash and bank balances (average of FY17 and FY18 end) of 2.5cr for standalone vs large amount of 41cr for consolidated entity. This implies such large amounts of cash was parked in current accounts. This also suggests that the source of interest income was probably from inter-corporate deposits of average of about 34cr as per below. This suggests effective interest income yield of approx 7% (2.33cr/34cr). On the other hand, interest paid of 30cr on average debt of about 265cr suggest interest expense yield of 11%. Of course, these numbers are based on average year-end balances since we donât know the exact timing and cannot be trusted fully. But if one were to go by these numbers, mathematically, better use of funds is to repay debt and not give inter-corporate deposits.
The investment in associate company has gone up because of plywood business sale and the equity they got in return for it.
Cash deposits firstly wonât be shown in long term investments and probably good to see latest balance sheet and see differences between latest balance sheet and the 2018 closing balance sheet
Resignation of Mr. Srinivasan Sethuraman from the Board of the Directors as well as from the position of Managing Director of the company w.e.f 14.08.2019. The Board would like to thank Mr. Srinivasan for his contributions to the Company during his tenure.
Resignation of Mr. B.V.M Sarma from the Board of the Directors as well as from the position of Joint Managing Director of the company w.e.f 14.08.2019. The Board would like to thank Mr. Sarma for his contributions to the Company during his tenure.
Resignation of the Statutory Auditor of the Company M/s. Lily & Geetha Associates, Chartered Accountants, Chennai from the Office of the Statutory Auditors w.e.f. 14.08.2019. The Board would like to thank M/s. Lily & Geetha Associates, Chartered Accountants, Chennai for their support to the Company during their tenure.
The Board of Directors of the Company in their meeting held on today has appointment of M/s. N.D. Kapur & Co., Chartered Accountants, New Delhi as the Statutory Auditors of the Company w.e.f. 14.08.2019, in place of M/s. Lily & Geetha Associates, Chartered Accountants, Chennai. Their appointment is subject to the approval of the Shareholders in the ensuing General Meeting and in compliance with the applicable laws.
The Board was updated on the status of the ongoing transaction between the promoters of M/s Uniply Industries Limited and M/s Markab Capital WLL, Kuwait.
Markab stands committed to the acquisition of majority stake in Uniply, and is currently in the process of securing a line of Credit with a Scheduled Commercial Indian Bank for bank guarantee to the open offer, as against their original plan to establish a guarantee from an International Bank.
The synergies from the ongoing Markab transaction are already visible with a large global order pipeline being developed by Markab for Uniply Industries Limited. This pipeline of orders, backed by working capital from a mezzanine fund of theirs, is expected to start post closure of the open offer and get executed over various timelines, extending up to 27 months from their start date.
Also Nazeer is coming in as MD
Appointment of Mr. Nazeer Azam Sulthan (DIN: 08072833) (Aged About 52 years) ( Bsc, B.Tech, MBA), Director of Markab India SPV Pvt Ltd as Director on the Board of the Company w.e.f 14.08.2019 and further appointment as Managing Director of the Company w.e.f 16.09.2019. Mr. Azam joins the Company with a wealth of experience in handling both domestic and international organisations. He started his career in and had a 21 years stint with a Japanese Automation Major, Yakogawa. Mr. Azam is currently heads the Middle East and African operations of a large MARKAB associate contracting company.
One interesting point from the notes:
The Board was updated on the status of the ongoing transaction between the promoters of M/s
Uniply Industries Limited and M/s Markab Capital WLL, Kuwait.
Markab stands committed to the acquisition of majority stake in Uniply, and is currently in the
process of securing a line of Credit with a Scheduled Commercial Indian Bank for bank
guarantee to the open offer, as against their original plan to establish a guarantee from an
International Bank.
The synergies from the ongoing Markab transaction are already visible with a large global order pipeline being developed by Markab for Uniply Industries Limited. This pipeline of orders, backed by working capital from a mezzanine fund of theirs, is expected to start post closure of the open offer and get executed over various timelines, extending up to 27 months from their start date.
PS: emphasis above are mine
On 3rd July 2019 M/s Markab Capital WLL, Kuwait & M/s Markab India SPV Private Limited (collectively âAcquirersâ) enter into Share Purchase Agreement with Mr. Keshav Kantamneni, M/s KKN Holdings Private Limited and M/s Madras Electronic Solutions Private Limited (collectively âSellersâ) and propose to acquire 20.71% shares of Uniply Industries Limited
Following the transaction the promoter group (led by Mr. Keshav Kantamneni) holding declined to single-digit while that of Markab group increased to in excess of 20%.
The acquirer announced open offer for additional 26% stake at a price of 82 per share.
Before the release of Detailed Public Statement (DPS), the Acquirers were required to create an escrow account and deposit therein 25% of the Offer Size as Cash Deposit or Bank Guarantee equivalent to 25% of the Offer Size in favour of Manager to the Offer together with 1% of the Offer Size as Cash Deposit.
Despite various assurances given by the Acquirers regarding the compliance of the Escrow Requirements the same could not be complied by the Acquirers.
Shareholders were informed that Markab stands committed to the acquisition of majority stake in Uniply, and is currently in the process of securing a line of Credit with a Scheduled Commercial Indian Bank for bank guarantee to the open offer, as against their original plan to establish a guarantee from an International Bank.
The synergies from the ongoing Markab transaction are already visible with a large global order pipeline being developed by Markab for Uniply Industries Limited. This pipeline of orders, backed by working capital from a mezzanine fund of theirs, is expected to start post closure of the open offer and get executed over various timelines, extending up to 27 months from their start date.
Mr. Nazeer Azam Sulthan appointed as Director w.e.f. 14.08.2019 and as Managing Director w.e.f. 16.09.2019 and the same was subsequently approved by the Shareholders at the AGM on 30.09.2019.
Mr. Azam had a wealth of experience in handling both domestic and international organisations. He started his career in and had a 21 years stint with a Japanese Automation Major, Yakogawa. Mr. Azam at that point heads the Middle East and African operations of a large MARKAB associate contracting company.
Mr. Srinivasan Sethuraman resigns as Director as well as from the position of Managing Director w.e.f 14.08.2019.
Mr. B. V. M Sarma resigns as Director as well as from the position of Joint Managing Director w.e.f 14.08.2019.
M/s. Lily & Geetha Associates (Chennai) resign as the Statutory Auditor of the Company on 14.08.2019.
M/s. N. D. Kapur & Co.,(New Delhi) Appointed as the Statutory Auditors of the Company w.e.f. 14.08.2019
The Chairman has recovered from his recent health altercation and has rejoined official duties w.e.f 04.11.2019.
Mr. Nazeer Azam Sulthan who was appointed as Director w.e.f. 14.08.2019 and as Managing Director w.e.f. 16.09.2019 did not report for duty on 16.09.2019 and resigned from the Directorship and Managing Director of the Company and his resignation accepted effective from 07.11.2019
Mr. Keshav Kantamneni is appointed as Managing Director of the Company w.e.f 07.11.19. He will serve the Company as Chairman and Managing Director. The Boards of Directors was updated by the Chairman of the Board, that he has recovered from his recent health altercation and has rejoined official duties w.e.f 04.11.2019.
All eyes now on the meeting of the Board of Directors of the Company which will be held on Thursday, the 14th November, 2019, inter alia, to consider, approve and take on record the un-audited Standalone and Consolidated Financial Results of the Company tor the second quarter/ half year ended 30th September, 2019.
Hi, Valuepickrs. Is there any further update about the company. People who ever are tracking the company please comment. It has falling to lower circuit everyday. After a small recovery to (~32) it seem to be going towards single digit price.
