MIRA
INFORM REPORT
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Report Date : |
27.08.2007 |
IDENTIFICATION DETAILS
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Name : |
GUJARAT STATE CO-OPERATIVE MARKETING FEDERATION LIMITED |
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Registered Office : |
“Sahakar Bhavan”, Relief Road, Ahmedabad – 380 001, |
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Country : |
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
1960 |
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Legal Form : |
Subject is a Co-operative Society. |
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Line of Business : |
Manufacturers and Traders of groundnut oil, Chana Dal, Basmati rice,
Cotton Bale, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed co-operative society. We
spoke to Mr. M M Patel, Chief Executive who parted with some general information,
but declined to part with other details. Trade relations are reported as
fair. Payments are reported as usually correct and as per commitments. The society can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
“Sahakar Bhavan”, Relief Road, Ahmedabad – 380 001, |
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Tel. No.: |
91-79-25391861 – 68, 5350653 |
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Fax No.: |
91-79-25351316 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Representatives of Co-operative marketing/ processing Society
/Purchase and Sale Union |
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Designation : |
Director |
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Name : |
Representative of Gujarat State Co-operative Bank Limited |
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Designation : |
Director |
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Name : |
Representatives of District Central Co-operative Banks |
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Designation : |
Director |
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Name : |
The Registrar of Cooperative societies |
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Designation : |
Director |
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Name : |
Representatives of National cooperative Development Corporation, |
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Designation : |
Director |
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Name : |
Co-opted Members |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Natvarlal P. Patel |
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Designation : |
Chairman |
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Name : |
Mr. Dahyabhai F. Patel |
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Designation : |
Vice Chairman |
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Name : |
Mr. Mahendrakumar R. Shah |
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Designation : |
Chief Executive |
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Name : |
Mr. M M Patel |
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Designation : |
Chief Executive |
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Tel. No.: |
91-79-25352053 |
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E-Mail: |
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Name : |
Mr. D J Prajapati |
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Designation : |
Dy. Manager (Administration) |
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Tel. No.: |
91-79-25350778 |
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E-Mail: |
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Name : |
Mr. G L Jhala |
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Designation : |
Dy. Manager (Pesticides) |
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Tel. No.: |
91-79-25351551 |
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E-Mail: |
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Name : |
Mr. K B Patel |
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Designation : |
Dy. Manager (Fertilizer) |
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Tel. No.: |
91-79-25350766 |
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E-Mail: |
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Name : |
Mr. D A Suthar |
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Designation : |
Assistant Manager (Seeds and bio-Fertilizer, Tissue Culture) |
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Tel. No.: |
91-79-25350653 |
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E-Mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Representatives of Co-operative marketing/ processing Society
/Purchase and Sale Union |
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24 |
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Representative of Gujarat State Co-operative Bank Limited |
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1 |
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Representatives of District Central Co-operative Banks |
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1 |
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The Registrar of Cooperative societies |
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1 |
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Representatives of National cooperative Development Corporation, |
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1 |
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Co-opted Members |
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1 |
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Total |
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29 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Traders of groundnut oil, Chana Dal, Basmati rice,
Cotton Bale, etc. |
PRODUCTION STATUS
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Place |
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No. of Godowns |
Storage
Capacity |
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Narol (Ahmedabad) |
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14 |
11000 |
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Lambha (Ahmedabad) |
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3 |
1000 |
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Bhalakia (Ahmedabda) |
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1 |
300 |
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Navagam ( |
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18 |
170000 |
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Gavadka (Amreli) |
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1 |
1000 |
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Bhuj ( |
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4 |
2000 |
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Bandhani (Kheda) |
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4 |
2000 |
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Tarapur (Kheda) |
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7 |
7000 |
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Chhani ( |
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2 |
4000 |
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Saij (Kalol) |
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11 |
6850 |
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Vagusana (Broach) |
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10 |
6500 |
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Amreli |
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6 |
15000 (Silo) |
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Mahesana |
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6 |
5300 10000 (Silo) |
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Unava (Unjha) |
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2 |
9600 (Silo) |
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Kayoli (Junagadh) |
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6 |
5000 |
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Varli Pardi (Kheda) |
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5 |
2150 |
GENERAL INFORMATION
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No. of Employees : |
588 |
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Bankers : |
Not Available |
CAPITAL STRUCTURE
Authorised Capital : Not Available
Paid-up Capital : Rs. 26.600 millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
Gujarat
Sales Co-operative Marketing Federation Limited (Rs. in Millions) |
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2002-03 |
2003-04 |
Total |
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Total Turnover |
6100.500 |
7192.000 |
13292.500 |
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5082.600 |
6407.000 |
11489.600 |
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Percentage of fertilizer sales to total turnover |
833.100 |
890.800 |
864.400 |
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Gross Profit |
154.300 |
129.900 |
284.200 |
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Percentage of Gross Profit to Sales |
25.300 |
18.000 |
21.400 |
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Fertilizer Profit |
104.200 |
95.400 |
199.60 |
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Percentage of Fertilizer Profit |
20.500 |
14.900 |
17.300 |
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Net Profit |
20.100 |
10.000 |
30.100 |
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Percentage of Net Profit to Sales |
3.300 |
13.300 |
2.300 |
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Establishment Cost |
97.500 |
83.400 |
178.00 |
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Percentage of establishment cost to Sales |
16.000 |
11.600 |
13.500 |
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Paid up Capital |
26.600 |
26.600 |
53.200 |
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Ratio of Capital to Turnover |
229 |
270 |
250 |
LOCAL AGENCY FURTHER INFORMATION
Website details attached:
Subject is popularly known as GUJCOMASOL undertakes many types of activities and most of them are related with agriculture. Being a cooperative federation, it has a tendency to give more weightage on services to the farmers other than profit.
The missions of this Federation are as under:
- Government of
At present, this
Federation has following two processing units for oilseeds.
1. Castor seeds Processing Unit as Mehsana
2. Groundnut Processing Unit at Amreli.
It has storage capacity of 1 lakhs MTs.
The second mission of this Federation is to provide agriculture inputs like
fertilisers, seeds, pesticides etc. to the farmers through cooperative channel.
In fact, the cooperative channel in
In fact, the mission of this Federation is to purchase agricultural
produces whenever market price goes down and to give reasonable prices to the
farmers.
Vision
The future planning of Subject is to develop
agricultural market when the policy of Government of Gujarat which is to be
introduced as Agro-vision 2010 as under:
1.
To do
agricultural activities through greenhouse
2.
To
produce various vegetables, food etc. and to do export so that farmers can get
good price to the products
3.
To give
demonstration to the farmers for modernization of agricultural activities and
to construct cold storage for long term storage of farmer's agriculture
produces
Products
Since 1968-69 the federation has began its
activity in its own formulation plant at Narol (Ahmedabad) with an annual (200
days working) production capacity of 4000 MT. For dust formulation and 400 KL
for liquid formulation.
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Liquid Formulation: |
Dust / DP & Granule Formulation: (Powder) |
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D.D.V.P.
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76% EC |
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M.
Parathion |
2 DP |
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Monocrotophos |
36% SL |
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Lindane |
0.65 DP |
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Quinalphos |
25% EC |
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Quinalphos |
1.5 DP |
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Gujcofen |
20% EC |
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Gujcofen |
0.4 DP |
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Cypermethrin |
10% EC |
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Thiram |
75 DS |
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Cypermethrin |
25% EC |
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Gujcozim |
50 WP |
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M. Parathion |
50% EC |
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Endoculphan |
35% EC |
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Chlorpyeiphos |
20% EC |
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Malathion |
50% EC |
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Acephate |
75% EC |
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Pesticides are packed in plastic bag, plastic bottle and plastic carbo in
different packing like 250ml, 500ml, 1 ltr., 5 ltr., 10 ltr., 20 ltr.,.
Since 1967 the Federation is
engaged in production of seed of various grain and pulse.
GUJCOMASOL distributes following seeds for various crops:
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Hybrid Cotton |
Sankar 6, Sankar 8, Sankar 10 |
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M.H.179, M.H.169 (Pusa-23), GHB GHB-235, SHB (Sardar-1) |
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G.A.U.C.H.-1, G.C.H.-4,2,5 |
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G.G.-2, G.G.-20, G.G.G.-11, G.A.U.G.-10, G.G.-4 |
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Gujarat-1, Gujarat-2 |
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T-9 |
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B.D.N.-2 |
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K-815 |
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G.R.-11, G.R.-4, Jaya, Gurjari Masoori, G.R.-., G.R.-103 |
Processing
The Federation is engaged in procurement,
processing and marketing of various agriculture produces such as food grains, paddy,
pulses, groundnut, castor rape/mustard seed spices, sesame seed, cotton seed,
cotton, onion, garlic, etc. on a massive scale.
The Federation has
set up very modern and large capacity Groundnut Oil Mill Complex in Amreli.
The installed capacity of the Complex is as under:
150
Ton per Day Oil Mill Capacity (3000 tins/day)
10,000
MT Storage capacity “Muskogi” type Mechanized Bulk storage silo for storage of
Groundnut Pods.
100
Tons per Day continuous type solvent extraction plant.
15
Ton per day continuous type vegetable oil refineries.
The complex with its full expansion now process @30,000 MT p.a. of GN
pods and produces.
7500 MT
Groundnut (Expeller) oil p.a.
1300 MT
Refined Groundnut oil p.a.
16,500
MT Groundnut Extraction p.a.
200 MT
soap stock.
The Federation has ginning nit comprising of 66 Gins and a processing
machine with an installed capacity of 10,000 FP bales per annum at Mahesana in
The installed capacity of the Complex is as under:
20,000
MT of Castor seed as raw material.
10,000
MT British Standard Specification Grade Refined Castor Oil (Pharmaceutical
Grade)
2,000
MT British Pharmacopoea Grade Refined Castor Oil
12000 MT
Castor cakes as by product
12000
MT oil cake processing S.E. Plant
2500 MT
Refinery
Distribution
Subject is engaged in supplying fertilizer to farmers since June 1961. With the inception of Gujarat State Fertilizers Co. Ltd. (GSFC) in 1967, the federation was appointed as its principal distributors. This position is being continued even today. For IFFCO fertilizers, also the federation is principal distributor.
While for Krishak Bharati Coop. Ltd. (KRIBHCO) Subject
acts as sole distributors. Besides this, the federation is also principal
distributors for
Types of Fertilisers distributed by the federation are follows:
Nitrogen
Type: - Urea
Ammonium
Sulphate
Phosphate
Type: - Diammonium phosphate
NPK
In today's era, all over the world Farmers have started consumption of
Organic Fertilizers and Pesticides in agriculture, because such agriculture
products have received tremendous response from the health conscious consumers.
By using Organic inputs, farmers have got more value for their agriculture
products. Looking to the above facts and potential market of Herbal (organic)
pesticides in the future, Subject has also begun distribution of Herbal
pesticides
Types of Herbal pesticides distributed by the federation are follows:
Natural
P.R.
Protein Synthesizer: - GUJCO VIRCON–H
Broad
Spectrum Miticide: - GUJCO MITCON-H
First
Foliar Herbal Nematicide: -GUJCO NEMCON-H
Systemic
Fungicide: - GUJCO F-7
White
Fly Special: - GUJCO F-8
Economy
in sale of fertilizers
The fertilizer trading activity of the
Company was compared in audit with that of subject, a co-operative body engaged
in distribution of seeds, fertilizers and pesticides etc in the State. The comparison
was made to ascertain the efficiency, economy and effectiveness of the Company.
Fertilizer trading was the major activity as
the same constituted around 87% of total turnover in both the cases; however,
gross profit, profit from fertilizers and net profit of subject was higher than
that of the Company. The ratio analysis indicated that the Company was not
economical in fertilizer trading. Establishment cost of the Company was more
than double of subject. Moreover, ratio of capital to turnover of subject was
almost nine times of the Company, which indicates poor turnover of the Company.
Thus, higher establishment cost coupled with poor turnover rendered the
activity uneconomical for the Company.
The management stated (July 2005) that the
comparison of performance of the Company with that of subject could not be made
as better credit terms were offered by IFFCO/KRIBHCO to them; their performance
should be judged with reference to the sale of fertilizers of Gujarat State
Fertilizers and Chemical Limited (GSFC) and Gujarat Narmada Valley Fertilizers
Limited (GNFC). The reply is not tenable, as only credit dale could not make
the performance of subject better. Moreover, subject earns profit even after
offering better commission to their agents. Subject had sold 0.709 MT of GSFC /
GNFC fertilizers (Rs. 4493.100 millions) against 0.516 millions MT fertilizers
sold by the Company (Rs. 3170.200 millions) during 2002-04.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs. 41.18 |
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|
1 |
Rs. 82.41 |
|
Euro |
1 |
Rs. 55.85 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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