MIRA
INFORM REPORT
|
Report Date : |
10.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
EXCEL INDUSTRIES
LIMITED |
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Registered Office : |
184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai - 400102,
Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.09.1960 |
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Com. Reg. No.: |
11-11807 |
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CIN No.: [Company
Identification No.] |
L24200MH1960PLC011807 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME00146G |
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Legal Form : |
Public Limited
Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and
Marketing of Phosphorous & its Compounds viz. Phosphorous White,
Phosphorous Pentasulphide, Phosphorous Trichloride, Dimethly / Dethyl Thio
Phosphoryl Chloride, Ortho Phosphoric Acid & its derivatives; Pesticides
viz. Aluminium Phosphide, Methoxy Ehtyl Mercury Chloride, Wettable Sulphur,
Zinc Phosphide, Endosulfan, Gluphosate, Chlorpyriphos Technical; Chemicals
viz. Mercury Salts, Sodium Penta Chloro Phenate, Pentachloro Phenol,
Trichloro Phenol, Butene Diol, Malathion Technical / Dethyl Oxalate, Acetyl
Chloride and Organics Manure. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED
CREDIT LINE |
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|
26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial difficulties
seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
-- |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having moderate track. Trade relations are fair. Payments
are reported as correct and as per commitments. Profit margin is under severe
pressure. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai - 400 102, Maharashtra, India |
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Tel. No.: |
91-22-66464200/
26704569 / 26704653 / 26794866 / 26705812 / 26788258 / 69 / 269433000 |
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Fax No.: |
91-22-66963514/
26784522 / 26783732 |
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E-Mail : |
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Website : |
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Head Office : |
184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai - 400 102, Maharashtra, India |
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Tel. No.: |
91-22-66464200/
26704569 / 26704653 / 26794866 / 26705812 / 26788258 / 69 / 269433000 |
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Fax No.: |
91-22-66963514/
26784522 / 26783732 |
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E-Mail : |
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Factory 1 : |
v 184/87, S. V. Road, Jogeshwari (West),
Mumbai - 400 102, Maharashtra v Veera Desai Road, Andheri (West), Mumbai –
400 053, Maharashtra v 6/2, Ruvapari Road, Bhavnagar-364 005,
Gujarat v Plot No.112, M.I.D.C. Industrial Area,
Dhatav, Roha, District Raigad-402 116, Maharashtra v D-9, M.I.D.C Lote Parashuram, Taluka Khed,
Ratnagiri-415722, Maharashtra v Plot No.60, B. Nanji Industrial Estate, Kharadpada,
Silvassa - 396 230 v Ajitsingh Nagar, Dhaba Kotla Road,
Vijayawada - 520 015, Andhra Pradesh v Near Sewage Farm, Narol Sarkhej Octroi
Noka, Baherampura, Ahmedabad – 380 022, Gujarat v Revakaka Estate, Piplaj Pirana Road,
Behind Eicher Tractor Compound, Piplaj – 382 405, Gujarat |
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Zonal Offices
: |
v
2/3, West
Patel Nagar, 1st Floor, Main Patel Road, Opposite Vivek Cinema, New Delhi – 110 008 Tel. 91-11-25817628/39/40/41 Fax. 91-11-25817637 E-mail. xldelhi@exvelind.com v
606, Sakar –
III, 6th Floor, Opposite Old High Court, Navrangpur, Ahmedabad – 380 014, Gujarat Tel. 91-79-27543622/3623 Fax. 91-79-27544626 E-mail. xlhad@excelind.com v
H-206 B, 2nd
Floor, Minerva Complex, 94, S. D. Road, Secunderabad – 500 003, Andhra Pradesh Tel. 91-40-27813273/5305/0899 Fax. 91-40-27841366 E-mail. ganesan@excelind.com v
Central
Plaza 2/6, Sarat Bose Road, 7th Floor, Flat No. 706, Kolkata – 700 020, West Bengal Tel. 91-33-24743403 Fax. 91-33-24743439 E-mail. excal@vsnl.net |
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Overseas
Offices : |
Located at : v
Italielei 3,
2000 Antwerpen Belgium Tel. 0032-3-5425722 Cell. 0032-477446298 Fax. 0032-3-2323735/2398269 v
Excel Industries
(Australia) Private Limited Level 2, 333 George Street, Sydney NSW 2000, GPO Box 3293, Sydney NSW 2001, Australia v
111, North
Bridge Rod, #11-04/06 Peninsula Plaza, Singapore – 179098 Tel. +65-3360431 Fax. +65-3396291 |
DIRECTORS
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Name : |
Mr. K C Shroff |
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Designation : |
Chairman |
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Name : |
Mr. G Narayana |
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Designation : |
Chairman |
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Qualification : |
Grad. Instn.of Engg. Grad. Instn. of Electronic & Radio Engg. (England) Diploma in Operations Management & Factory Management. |
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Date of Appointment : |
31.07.1999 |
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Name : |
Mr. A C Shroff |
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Designation : |
Chairman and
Managing Director |
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Date of Birth/Age : |
61 Years |
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Qualification : |
B.Sc. |
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Experience : |
41 Years |
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Date of Appointment : |
01.09.1965 |
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Name : |
Mrs. Usha A
Shroff |
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Designation : |
Vice Chairperson |
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Date of Birth/Age : |
28.03.1947 |
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Qualification : |
M. Com with Cost
Accounting |
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Date of Appointment : |
13.09.2000 |
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Other Directorships : |
© Argocel Industries Limited © Anshul Chemicals Limited © Kamaljyot Investment Limited © Nirmal Colorants & Chemicals Manufacturing Company Limited © Shree Resham Textile Mills Limited © Transmetal Limited © Waman Industrial Chemicals Limited |
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Name : |
Mr. S R Potdar |
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Designation : |
Executive
Director |
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Name : |
Mr. A D Mango |
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Designation : |
Director |
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Date of Birth/Age : |
24.11.1915 |
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Qualification : |
Bachelor of Philosophy |
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Date of Appointment : |
18.06.1964 |
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Name : |
Mr. A G Shroff |
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Designation : |
Director |
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Date of Birth/Age : |
23.12.1947 |
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Qualification : |
SSC |
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Experience : |
Industrialist
with wide business experience |
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Date of Appointment : |
26.08.1994 |
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Other Directorships : |
v Transpek Industry Limited v Transmetal Limited v Shree Dinesh Mill Limited v Punjab Chemicals & Pharmaceuticals Limited v Banco Products (India) Limited v Ace Zipper Industrial Company Limited v Nascent Chemicals Industries Limited v Onix Industry Limited v Sayaji Iron & Engineering Limited v Transpek Marketing Limited v Transpek Metadust Limited v Benzo Petrochemicals Limited |
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Memberships : |
v Chairman of Shareholder’s Grievance
Committee and Member of Audit Committee of Banco Products (India) Limited v Chairman of Investors’ Grievance Committee
and Member of Remuneration Committee of Shree Dinesh Mills Limited v Member of Audit Committee and Share
Transfer Committee and a Committee of Directors of Transpek Industry Limited v
Member of
Share Transfer Committee and two other Committee of Directors of Transmetal
Limited |
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Name : |
Mr. R N Bhogale |
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Designation : |
Director |
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Name : |
Mr. H N Motiwalla
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Designation : |
Director |
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Date of Birth/Age : |
24.03.1945 |
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Qualification : |
Chartered
Accountant |
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Experience : |
Accounting,
Audit, Finance, Taxation, Company Law |
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Date of Appointment : |
24.05.2002 |
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Other Directorships : |
v Asian Electronics Limited v Enzymes Pharmaceuticals & Industrial Chemicals Limited v Ashok Alco Chem Limited v Ashok Organics Industries Limited v Lalit Polymers and Electronics Limited v Kadakia Alkalies & Chemicals Limited |
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Memberships : |
v Chairman of Audit Committee of Ashok Organics Industries Limited v Chairman of Audit Committee of Asian Electronics Limited |
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Name : |
Mr. P S Jhaveri |
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Designation : |
Director |
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Name : |
Mr. Dipesh K
Shroff |
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Designation : |
Director |
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Name : |
Mr. M K Vadgama |
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Designation : |
Director |
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Date of Birth/Age : |
22.10.1928 |
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Qualification : |
HNC in Mechanical
Engineering from United Kingdom, Chartered Engineer |
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Experience : |
Design of
Equipment for Chemical Plants and Project Management |
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Date of Appointment : |
28.01.1994 |
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Other Directorships : |
v
Ashok
Organics Industries Limited v
Transpek
Industry Limited |
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Memberships : |
Member of Audit
Committee and Remuneration Committee of Ashok Organics Limited |
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Name : |
Mr. M B Parekh |
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Designation : |
Director |
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Name : |
Mr. V R Galkar |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Sunita
Agarwal |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2006
|
Category Code |
Category of Shareholder |
Number of shares held in
dematerialized form |
Total shareholding as
a percentage of total number of shares |
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As a percentage of (A+B) |
As a percentage of (A+B+C) |
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(A) |
SHAREHOLDING OF PROMOTERS AND GROUP |
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(1) |
Indian |
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(a) Individuals/
Hindu Undivided Family |
308765 |
3.79 |
3.79 |
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(c ) Bodies
Corporate |
3164371 |
30.21 |
30.21 |
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Sub-Total (A)(1) |
3473136 |
34.33 |
34.33 |
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(2) |
Foreign |
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(a) Individuals
(Non- Resident Individuals/ Foreign individuals) |
95495 |
0.88 |
0.88 |
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Sub-Total(A)(2) |
95495 |
0.88 |
0.88 |
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Total Shareholding of Promoter
and Promoter Group A= (A)(1)+(A)(2) |
3568631 |
35.20 |
35.20 |
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Category Code |
Category of Shareholder |
Number of shares held in
dematerialized form |
Total shareholding as
a percentage of total number of shares |
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As a percentage of (A+B) |
As a percentage of (A+B+C) |
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(B) |
PUBLIC SHAREHOLDING |
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(a) Mutual Funds/
UTI |
825 |
0.01 |
0.01 |
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(b) Financial
Institutions/ Banks |
1016371 |
9.40 |
9.40 |
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(e) Insurance
Companies |
245441 |
2.25 |
2.25 |
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(d)Foreign
Institutional Investors/Foreign Banks |
399 |
0.02 |
0.02 |
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(h) Non-Resident
Shareholders |
52863 |
0.50 |
0.50 |
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Sub-Total (B)
(1) |
1262636 |
11.67 |
11.67 |
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(2) |
Non-Institutions |
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(a) Bodies
Corporate |
757020 |
7.17 |
7.17 |
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(b) Individuals - |
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i. Individual
Shareholders holding nominal Share Capital up to Rs.0.100 million. |
3743655 |
41.27 |
41.27 |
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ii. Individual
shareholders holding nominal share capital in excess
of Rs.0.100 million. |
429827 |
4.29 |
4.29 |
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Sub-Total(B)(2) |
4974440 |
53.12 |
53.12 |
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Total Public Shareholding B=(B)(1)+(B)(2) |
6237076 |
64.80 |
64.80 |
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TOTAL (A)+(B) |
9805707 |
100.00 |
100.00 |
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GRAND TOTAL (A)+(B)+( C) |
9805707 |
100.00 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Phosphorous & its Compounds viz. Phosphorous White,
Phosphorous Pentasulphide, Phosphorous Trichloride, Dimethly / Dethyl Thio
Phosphoryl Chloride, Ortho Phosphoric Acid & its derivatives; Pesticides
viz. Aluminium Phosphide, Methoxy Ehtyl Mercury Chloride, Wettable Sulphur,
Zinc Phosphide, Endosulfan, Gluphosate, Chlorpyriphos Technical; Chemicals
viz. Mercury Salts, Sodium Penta Chloro Phenate, Pentachloro Phenol,
Trichloro Phenol, Butene Diol, Malathion Technical / Dethyl Oxalate, Acetyl Chloride
and Organics Manure. |
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Products : |
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Exports to : |
USA, Mexico, Haiti,
Argentina, Chile, Belgium, Bulgaria, Germany, France, UK, Spain, Italy, The
Netherlands, Greece, Kenya, Zimbabwe, Sudan, Egypt, Ethiopia, Tanzania, Ivory
Coast, South Africa, Djibouti, Iran, Saudi Arabia, UAE, Oman, Cyprus, Turkey,
Israel, Syria, Y.A.R., Australia, New Zealand, Thailand, Myanmar, Malaysia,
Philippines, Bangladesh, Hong Kong, Singapore, Japan, South Korea, Taiwan and
Nepal. |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Phosphorous and its Components |
Tonnes |
50200 |
30200 |
21324 |
|
Chemicals |
Tonnes |
9300 |
8300 |
6586 |
|
Organic Manure |
Tonnes |
31700 |
19500 |
7082 |
GENERAL
INFORMATION
|
No. of Employees : |
About 2708 |
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Bankers : |
Ø
Bank of
India, Mumbai Ø
Syndicate
Bank, Mumbai Ø
State Bank
of India Ø
Citibank
N.A. Ø
ABN Amro
Bank N.V. Ø
The Saraswat
Co-Operative Bank Limited |
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Facilities : |
Secured Loans (Rs. in millions)
Notes: 1. Debentures referred to in clauses 1(a) and 1(b) above are secured by a deed of hypothecation of all the movable properties, both present and future, situated at Roha and Lote Parashuram, and by a floating charge on all the other movable assets at the aforesaid sites. 2. Loans from Banks on Cash Credit and Working Capital Demand Loan Accounts are secured by hypothecation of all tangible movable assets, both present and future, including stock of raw materials, finished goods, goods-in-process, stores, book debts etc. and is secured by a second charge on the fixed assets at Roha and Lote Parashuram. 3. Term Loan from HDFC Bank Limited amounting to Rs. 2.978 (Previous Year: Rs. 3.132) is secured by hypothecation of the vehicles acquired by utilizing the said loan. 4. Term Loans from UTI Bank Limited and Bank of India amounting to Rs.187.500 (Previous Year: Rs. 200) and Rs.100 (Previous Year: Nil) respectively, are secured by a pari passu first charge on all movable fixed assets, both present and future, and is secured by a mortgage of immovable properties, both present and future, of its units situated at Roha and Lote Parshuram. 5. Long-Term Working Capital Rupee Loan from Export Import Bank of India amounting to Rs. 15.450 (Previous Year: Rs. 30.900) is secured by hypothecation of all movable fixed assets of the Company, both present and future, and by mortgage of immovable properties, both present and future, of its units located at Roha and Lote Parashuram. Unsecured Loans (Rs. in millions)
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Banking Relations : |
Satisfactory |
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Auditors : |
S V Ghatalia
& Associates Chartered
Accountants |
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|
Associates : |
Ø
Agrocel
Industries Limited Ø
Anshul
Chemicals Limited Ø
C.C. Shroff Research
Institute Ø
C. C. Shroff
Self Help Centre Ø
Divakar
Chemicals Limited Ø
Good Rasayan
Limited Ø
Netafim
Irrigation India Private Limited Ø
Nirmal
Colorants & Chemicals Manufacturing Company Limited Ø
Punjab
Chemicals & Pharmaceuticals Limited Ø
Shroff
Engineering Limited Ø
Shroff
Family Charitable Trust Ø
Shroff
Foundation Trust Ø
Shrujan Ø
Transmetal
Limited Ø
Transpek
Industrial Limited Ø
Transpek-Silox
Industry Limited Ø
Upexcel
Limited Ø
Vivekanand
Research & Training Institute Ø
Waman
Industrial Chemical Limited |
|
|
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|
Subsidiaries : |
Ø
West Coast
Oxygen Limited Ø
Kamaljyot
Investments Limited Ø
Excel
Industries (Australia) Pty Limited Ø
Excel
Industries (Europe) N.V. |
|
|
|
|
Joint Ventures Companies : |
Ø
Upexcel
Limited Ø
Wexsam
Limited, Hong Kong |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3,80,00,000 |
Equity Shares |
Rs. 5/- each |
Rs. 190.000 millions |
|
8,50,000 |
11% Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 8.500 millions |
|
3,00,000 |
Unclassified Shares |
Rs. 5/- each |
Rs. 1.500 millions |
|
|
TOTAL |
|
Rs. 200.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,09,05,630 |
Equity Shares |
Rs. 5/- each |
Rs. 54.528 millions |
|
|
(of the above
shares 98,10,710 shares have been allotted as fully paid up by way of Bonus
Shares by capitalisation of General Reserve) |
|
|
|
|
Total |
|
Rs. 54.528 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
54.500 |
54.500 |
54.500 |
|
|
2 Reserves & Surplus |
893.700 |
890.600 |
905.000 |
|
|
NETWORTH |
948.200 |
945.100 |
959.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
754.900 |
668.700 |
658.300 |
|
|
2] Unsecured Loans |
307.300 |
334.900 |
371.100 |
|
|
TOTAL BORROWING |
1062.200 |
1003.600 |
1029.400 |
|
|
|
|
|
|
|
|
TOTAL |
2010.400 |
1948.700 |
1988.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1035.000 |
1010.700 |
1090.100 |
|
|
Capital work-in-progress |
11.000 |
53.400 |
20.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
149.000 |
149.600 |
155.700 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
417.300
|
454.200 |
249.100 |
|
|
Sundry Debtors |
583.300
|
599.100 |
449.500 |
|
|
Cash & Bank Balances |
41.200
|
39.900 |
52.400 |
|
|
Loans & Advances |
426.900
|
375.500 |
414.200 |
|
Total Current Assets |
1468.700
|
1468.700 |
1165.200 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
611.200
|
727.400 |
643.600 |
|
|
Provisions |
42.100
|
6.300 |
12.300 |
|
Total Current Liabilities |
653.300
|
733.700 |
655.900 |
|
|
Net Current Assets |
815.400
|
735.000 |
509.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
213.000 |
|
|
|
|
|
|
|
|
TOTAL |
2010.400 |
1948.700 |
1988.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
2329.900 |
2732.500 |
2067.000 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
(28.100) |
(76.400) |
6.200 |
|
Provision for
Taxation |
(10.900) |
(68.500) |
3.000 |
|
Profit/(Loss)
After Tax |
(17.200) |
(7.900) |
3.200 |
|
|
|
|
|
|
Export Value |
407.440 |
333.849 |
NA |
|
|
|
|
|
|
Import Value |
445.606 |
766.880 |
NA |
|
|
|
|
|
|
Total Expenditure |
2376.600 |
2890.100 |
1967.560 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1st Qtr) |
30.09.2006 (2nd Qtr) |
30.12.2006 (3rd Qtr) |
|
Type |
|
|
|
|
Sales Turnover |
486.000 |
550.200 |
505.200 |
|
Other Income |
13.300 |
16.300 |
9.000 |
|
Total Income |
499.300 |
566.500 |
514.200 |
|
Total Expenditure |
470.200 |
508.000 |
454.200 |
|
Operating Profit |
29.100 |
58.500 |
60.000 |
|
Interest |
24.400 |
22.700 |
23.800 |
|
Gross Profit |
4.700 |
35.800 |
36.200 |
|
Depreciation |
22.900 |
23.100 |
23.800 |
|
Tax |
0.500 |
0.600 |
0.800 |
|
Reported PAT |
(18.700) |
12.100 |
11.600 |
200606 Quarter 1
Notes:
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (17.80) million Consumption of Raw Materials / Purchase of Traded Goods Rs 263.00 million Personnel Cost Rs 62.10 million Other Expenditure Rs 162.70 million Tax indicate Provisin for Fringe Benefit Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 08 Complaints disposed off during the quarter 08 Complaints unresolved at the end of the quarter Nil 1. The above results as reviewed by the Audit Committee, have been approved in the meeting of the Board of Directors held on July 28, 2006 and have been subjected to Limited Review by the Auditors. 2. The unionized workmen at Roha, which is one of the manufacturing units of the Company, have resorted to non-cooperation with effect from July 08, 2006 on account of non-settlement of the issue in respect of bonus and/or ex-gratia amount payable, if any, for Financial Year 2004-2005 resulting in disruption of manufacturing operations at the said unit. The Company is taking necessary steps to settle the issue. 3. The figures for the previous period have been regrouped wherever necessary.
200609 Quarter 2
Notes
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs 37.70 million Consumption of Raw Materials/Purchase of Traded Goods Rs 252.60 million Personnel Cost Rs 67.10 million Other Expenditure Rs 148.30 million Tax indicate Provision for Fringe Benefit Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 10 Complaints disposed off during the quarter 10 Complaints unresolved at the end of the quarter Nil 1. The above results, as reviewed by the Audit Committee, have been approved in the meeting of the Board of Directors held on October 27, 2006 and have been subjected to Limited Review by the Auditors. 2. Other Income for the previous quarter and half year ended September 30, 2005 includes income of non-recurring nature amounting to Rs 44.20 million. 3. Other Expenditure for the quarter and half year ended September 30, 2006 includes an amount of Rs 7.80 million being the amount of bonus and/or ex-gratia in respect of earlier years as per the settlement now reached between the workmen and the Management. 4. The figures for the previous period have been regrouped/ rearranged wherever necessary.
200612 Quarter 3
Notes
EPS is Basic and Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 07 Complaints disposed off during the quarter 07 Complaints unresolved at the end of the quarter Nil 1.The above results, as reviewed by the Audit Committee, have been approved in the meeting of the Board of Directors held on January 25, 2007 and have been subjected to Limited Review by the Auditors. 2. The figures for the previous periods have been regrouped wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.09 |
1.07 |
1.11 |
|
Long Term Debt
Equity Ratio |
0.48 |
0.53 |
0.60 |
|
Current Ratio |
1.15 |
1.09 |
1.06 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.20 |
1.36 |
1.12 |
|
Inventory |
5.09 |
6.98 |
6.85 |
|
Debtors |
3.75 |
4.68 |
4.84 |
|
Interest Cover
Ratio |
0.73 |
0.40 |
1.06 |
|
Operating Profit
Margin (%) |
7.67 |
5.32 |
10.09 |
|
Profit Before
Interest and Tax Margin (%) |
3.49 |
1.55 |
5.43 |
|
Cash Profit
Margin (%) |
3.40 |
4.25 |
4.81 |
|
Adjusted Net
Profit Margin (%) |
(0.78) |
0.48 |
0.16 |
|
Return on Capital
Employed (%) |
3.91 |
2.04 |
5.96 |
|
Return on Net
Worth (%) |
(1.82) |
1.24 |
0.32 |
STOCK PRICES
|
Face Value |
Rs.5/- |
|
High |
Rs.51.25 |
|
Low |
Rs.47.80 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was
originally incorporated as a partnership firm in 1941 and became public in
1965. Promoted by the Shroff family the
promoters increased their stake further by acquiring 19% stake from Tatas in
1996-97. The Tatas originally acquired stake in Excel Industries in 1964 with
the company. Currently Shroffs and group companies with 33% shareholders of the
company are FIs who hold 33%. The company entered into joint venture with the
company in Israel for making drip irrigation systems.
Even though the
Tata Group acquired a financial interest in this company Excel Industries
continue to be managed by members of the Shroff family. To bring more focus on
each business line of activity the company has restructured its business under
four divisions i.e Agri Business, Chemicals Business, Environ and Biotech
Business and Life Sciences Business supported by appropriate corporate
functions in FY 1999-2000.
The company further commissioned the plant for manufacture of Celrich at
Ahmedabad having a treatement capacity of 500 MT of waste per day during
1999-2000.
During 2000-2001, the company successfully commissioned the plant to
manufacture special purpose Polymer Additive having a capacity of 200 tonnes
per annum and also carried out substantial expansion of production capacity of
Phosphonates from 5000 tonnes per annum to 7000 tonnes per annum at its Lote
Parshuram Unit.
The company has also launched 3 new formulations under the brand name of
Celcron, Hexzol and Bipex. The Chemicals Business division has successfully
commissioned 2 plants viz 200 TPA mining chemicals plant and 200 TPA to
manufacture speciality chemicals.
Erstwhile Agri Business :
The company received the ISO 9002 certification for its Bhavnagar unit in 1995,
becoming the first Indian agro-chemical company to achieve this distinction. It
made a beginning in new businesses like micro-irrigation systems, seeds, etc,
through a combination of marketing and manufacturing efforts. The plant to
produce butenediol, one of the major raw materials needed for the production of
endosulfan, was expanded in 1994-95.
The company also successfully converted the Endosulfan Plant at Bhavnagar
enabling consumption of non Ozone Depleting solvent in place of Ozone Depleting
Solvent, as required under the Montreal Protocol.
During 2001-02 the
Agribusiness division has expanded its manufacturing capacity of
Organophosphorous Compounds at this division.
With effect from October, 2001 Waman Industrial Chemicals Limited a company
with production of Phsophorous Pentasulphie was amalgamated with company.
Milestone
1968 12,500
Bonus Equity Shares in the prop. 1:2.
1970 7,500
Bonus shares issued in prop. 1:5 shares then subdivided. In March 1971, 5,00,000
shares issued at par : 34,500 shares reserved for working directors and staff
and 4,65,500 shares offered to the public.
1975 Plans
at the Roha Works were commissioned in June. 7,60,000 Bonus shares issued in
prop. 4:5.
1976 The
pilot plant for the manufacture of endosulfan was commissioned. A plant was put
up for the manufacture of aluminium chloride
1977 8,55,000 Bonus shares issued in
prop. 1:2.
1978 The
company concluded two more agreements for supply of technical know-how and
engineering services for the manufacture of malathion with FICOM Organics
Limited and Khatau Jhunker Limited.
1983 20,52,000 Bonus shares issued
in prop. 4:5.
1985 A plant was installed to
manufacture glyphosate, a weedicide.
1986 The
butene-diol plant with 600 TPA capacity was commissioned with an inbuilt
facility for generation of acetylene gas.
It was proposed to set up a 16,000 TPA plant for the recovery of
high-alumina refractory grade cement from the company’s phosphorous operations.
1989 Upexcel
Limited was formed as a joint sector company with Pradeshiya Industrial &
Investment Corporation of Uttar Pradesh for the manufacture of phosphorous and
its derivatives.
1990 The
company issued 4,00,000 – 14% secured non-convertible debentures of Rs. 100 each on private placement basis aggregating
to Rs. 40000 millions to Unit Trust of India (Rs. 2000 millions), Life
Insurance Corporation (Rs. 10 millions) and GIC and its subsidiary (Rs. 10
millions). These were to be redeemed at a premium of 5% on the expiry of 7
years from the date of allotment i.e. on 25th May, 1996.
1991 The
Project financing proposal was approved by financial institutions.
West Coast Oxygen Limited and Kamaljyot Investments Limited are wholly
owned subsidiaries of the company. During the year, the company has
incorporated a wholly owned subsidiary under the name “Excel Industries
(Australia) Pty Limited, in Australia.
The company issued 6,00,000 – 18% secured redeemable non-convertible
debentures of Rs. 100 each on private placement basis to financial
institutions. These are redeemable in three equal annual instalments commencing
on the expiry of 6 years from the date of allotment i.e. from 27th
March, 1998 at a premium of Rs. 5 per debenture payable on the expiry of the 7th
year from the date of allotment.
During the year, the company issued 2,00,000-14% secured redeemable
non-convertible debentures of Rs. 100 each on private placement basis with Unit
Trust of India. These are redeemable in three equal annual instalments
commencing on the expiry of 6 years from the date of allotment from 26th
September, 1997 at a premium of Rs. 5 per debenture payable on the expiry of 7th
year from the date of allotment of debentures.
1992 The
company issued 4,00,000-18% secured redeemable non-convertible debentures of
Rs. 100 each on private placement basis with Unit Trust of India. These are
redeemable in three equal annual instalments commencing on the expiry of 6
years from the date of allotment i.e. from 26th March, 1999.23,08,500
Bonus shares issued in prop. 1:2.
1993 Facility
for manufacture of 600 TPA of acetyl chloride was commissioned. In addition
steps were taken to expand the capacity of water treatment chemicals at its
Lote unit and to provide captive production of phosphorous trichloride for the
same.
During April, the company offered 3,50,000 Numbers of equity shares of
Rs. 10 each at a premium of Rs. 52.50 per share to its permanent employees’ (as
on 1st July, 1992), of the company both in appreciation of their services
and as a part of their Golden Jubilee Celebration.
344920 shares issued on preferential basis
to employees.
1994 The
company entered into new business like micro-irrigation systems, seeds,
biofertilizers etc. through a combination of marketing and manufacturing
efforts. The company also started offering technology in tackling the
ever-mounting menace of waste in cities and town.
The capacity of the plant to product butene Diol was expanded. The company
also undertook to further modernise its major plants to improve the operational
performance.
1995 The
company commissioned a windfarm project at Rajasthan with an installed capacity
of 2.7 MW.
3635210 bonus equity shares issued in prop.
1:2
1996 The
company had carried out expansion of production capacity of yellow phosphorous
at Bhavnagar unit and Glyphosate at Roha unit.
1997 The
company has commissioned a new pesticide formulation unit at Silvassa in the
Union Territory of Dadra & Nagar Haveli to manufacture Glycel 41% SL and
exports to add facilities in future to manufacture other formulations.
The company is setting up a joint venture (JV) with Netafim of Israel to
manufacture irrigation equipment in India.
The company is a leader in industrial and specialty chemicals,
agro-chemicals and bio-fertilizers and holds a major market share in endosulfan
and glyphosate pesticides. The company had developed expertise in organic soil
enrichers, drip irrigation system and pest control products.
The Credit Rating Information Services of India Limited (Crisil) has
rated Rs. 400 million non-convertible debenture of Excel Industries Limited as
‘AA-‘ indicating high safety with regard to timely payment of interest and
principal.
1998 ISRAEL’S
netfim, a US$ 200 million turnover micro irrigation company, has entered into a
joint venture with the company, the Mumbai-based manufacturer and exporter of
agri-chemicals and Jalbindu Agritech Private Limited an Umargaon-based
manufacturer of drip irrigation systems.
The company, pioneers in recycling wastes into fertilisers, plan to
expand business worldwide particularly in Asia and the Pacific region.
It has commissioned a pilot plant for herbal extraction at its
production site at Lote Parashuram.
It is one of the major domestic players in the pesticide industry and is
also one of the leading exporters of technical and formulations.
It is also the first company in Asia and third in the world, to make
endosulfan technical and first in Asia to make butene diol - a major intermediate of endosulphan. It is
second in the world to develop glyphosate technical. The company remains a
domestic leader in terms of capacities, marketing and distribution network and
has good brand in its portfolio.
1999 The
company is the largest domestic manufacturer of endosulfan, a broad spectrum
pesticide, used predominantly in cotton crop, but also finds use in oil seed,
pulses and plantations.
The company has entered into a co-marketing arrangement with Danish
multinational Cheminova for its glyphosate-based formulation, a systemic
weedicide.
2002 The
company has informed that a major fire broke out in one of the two main
buildings of the corporate and registered office of the company on March 22,
2002.The fire resulted in extensive damage to and destruction of building,
office equipments, furniture and fittings, EDP & IT Systems including
hardware and data storage devices, communication systems and records.
The company has informed that Mr M K Vadgama has resigned from the Board
of Directors of the Company.
The company has informed that Mr A N Poddar, Director of the Company has
expired on December 05, 2002.
2003 Mr. Dipesh K Shah resigns as
Joint Managing Director of the company.
The Company has signed a Memorandum of Understanding for sale of its
plot of land at Amboli, for a consideration of Rs 175 million
Operations
During the year under review, the net sales decreased to Rs.1932.900 millions
as compared to Rs. 2198 millions in the previous year registering a decline of
12%. Environment and Biotech Business at Rs. 205.600 millions registered 7%
growth as against previous year.
During the year under review, the Company had a loss of Rs. 28 millions as
against a loss of Rs. 48.700 millions in the previous year before Taxation and
Extraordinary Items. After accounting for current Tax of Rs. 0.200 million,
Deferred Tax write back of Rs. 15.900 millions and Fringe Benefit Tax Rs. 4.900
million, the loss after tax amounted to Rs. 17.200 millions as against Rs.7.900
million in the previous year.
During the year under review, the sales of pesticides intermediates
manufactured by the Company were lower due to reduced consumption of pesticides
in the country and intense competition from China. The Company also began
accepting job work in order to improve its capacity utilisation. The Company
also switched over to processing contract method in its supply of Glyphosate
Technical which resulted in decrease in sales turnover while contributing to
increase Income from processing charges.
Prices of both oil fuel and electricity increased substantially during the year
resulting in increased in cost of production of several products which could
not be passed on to the customers due to severe competition. Increased domestic
competition resulted in reduced price realisation and reduced volume in the
case of Polymer Adhesive Business. The domestic and export business of the
pharmaceutical intermediates improved thanks to the steady demands and improved
increased realisation.
New Projects/Expansions/Improvements
The facilities at Roha were reengineered to set up a plant to manufacture the
pharmaceutical intermediate Beta Thymidine. The Laboratory facilities and
systems at both Roha and Lote were upgraded to move towards GLP Standards. The
ageing Vapour Absorption Chiller Unit at Roha was replaced with a new design
energy saving equipment. Higher capacity brine unit was also procured for Roha
to meet the increased seasonal demands of the pesticide intermediate forecast
for this year. Several small and big energy conservation programmes were
carried out at both Roha and Lote. The Celrich Plant at Ahmedabad was also
streamlined for smooth and reliable operations at a higher capacity.
Outlook
The year under review was a difficult one for both agrochemicals and for
intermediates manufacturer. There was a significantly reduced demand for
intermediates and imports also continued to increase. As against this, there is
an optimistic forecast for the monsoon this year and the demand for
intermediates is expected to increase. The Company is taking steps to reduce
its manufacturing costs to be able to meet Chinese competition to improve its
market share. Speciality chemicals business is looking up and volumes are
expected to be higher. Some products are being relaunched for new applications.
Phoscel, the new product launched in the Soil Enricher range has been well
received and is expected to grow in the years to come. The bio pesticide range
is also being expanded with introduction of new products. The small size
Organic Waste Converter designed to treat wastes from households, co-operative
housing societies and industrial canteens as well as low scale agri wastes
shows a lot of promise. Overall, provided there is no substantial increase in
the input costs and barring unfortunate circumstances, the Company hopes to do
better in the year 2006-07.
Awards and Recognition
The Directors are pleased to inform you that units of the Company won the
following awards since the
date of last Annual Report.
Ø National
Safety Award for 2004 for Maharashtra from Ministry of Labour, Govt. of
India.
Energy Conservation Award at Maharashtra level from Maharashtra Energy
Development Agency for Supplier Excellence Award from Bayer Crop Science under
their 'Bayer Supreme Evaluation of
Suppliers
Ø
The company
manufactures chemicals and exports to over 50 countries around the world and it
provides high quality chemicals to the industry.
Ø
The company is currently
organised into four divisions :
Agri Business :
It has a range of
agri-inputs products from soil enrichment to crop protective chemicals such as
Insecticides, Herbicides, Fungicides, Accaricides and Fumigants.
Chemicals :
Chemicals business
begins from the extraction of elemental yellow phosphorus. Phosphorus based
compounds includes phosphorus pentasulphide, phosphorus trichloride and DETC.
Water Treatment Chemicals includes HEDP, ATMP, PBTC, THPS and Scale Inhibitor
and Fine Chemicals includes acetyl chloride and speciality chemicals.
Environment &
Biotech :
It includes
sanitisation, bio-conversion, bio-remediation and bio-augmentation.
Life Sciences :
It includes bio
rational products for agricultural inputs to control pest and diseases, hygiene
and asepsis products for disinfection, herbal and tissue culture for micro
propagation.
Quality
The Chemicals Business Division has received the certification under IS/ISO
9001:2000.
The company imports raw materials and capital goods from Europe and Far East
against L/C and Credit terms.
The company has
been accredited with ISO 9002 Certification for its plants at Bhavnagar, Roha
and Lote Parashuram. The company's
Bhavnagar plant has been accredited with ISO 14001 Certification.
ISO 9002
certification renewals are being ensured whenever due and the company is taking
steps to adopt quality standards on the ISO 9000:2000, the new revised
standards.
The company is in
trade terms with :
Ø
Aditya
Chemicals
Ø
Aryan Paper
Containers
Ø
Autocom Engineering
Ø
Dimple Drums
& Barrels Limited
Ø
Frezco
Corporation
Ø
Hindcomp
Private Limited
Ø
Industrial
Processors
Ø
Mullackal
Polymers
Ø
NAV Gases
& Chemicals
Ø
Shreeji Metal
Works
Ø
Unitop
Chemicals Private Limited
Profile
Subject has come a long way since its origin in a kitchen laboratory in 1941.
Over the years, subject came to be known as an industry leader in the area of
agro-chemicals and agro chemical intermediates. Using its expertise in
Chemistry and Chemical technology, Excel also expanded its chemicals
manufacturing range to include Water treatment chemicals and Polymer Additives
and few other specialty chemicals.
Subject’s commitment to sustainable development led us to venture into the
field of Environment and Bio-technology. Excel is a Pioneer and Technology
leader in rapid conversion of Municipal Solid Waste to organic compost. Their
organic plant protection and soil/crop productivity enhancers are well accepted
in the market.
In order to ensure focused attention to the expanded range of activities, the
agro business division was spun off as a separate company, Excel Crop Care
Limited in 2003. Today, Excel is organized into three divisions i.e. a.
Chemicals, b. Pharmaceuticals and c. Environment and Biotech.
Ever since their inception, they have built up a solid history and reputation
of developing, manufacturing and exporting chemicals. They have achieved over
100 product and process breakthroughs that even now are serving the specific
needs of various clients.
They have excellent research facilities in Mumbai and at their manufacturing
locations. During the last six decades, they have received numerous awards in
recognition of their dedication and excellence in the field of chemicals.
From the very beginning, in 1941, when their founder Mr. C. C. Shroff
established Excel, they have believed that in every interaction they have with
their clients, their individual as well as their corporate character, integrity
and professionalism is under scrutiny.
They have always kept the virtues of high quality, cost effectiveness, consumer
need fulfilment, fair prices and fair trade practices uppermost in their minds.
The company's fixed
assets of important value includes freehold & leasehold land, buildings,
plant and machinery, date processing equipments, electrical installations,
laboratory equipments, furniture, fixtures and other office equipments, trade
marks, vehicles and technical books.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record exists
to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.27 |
|
UK Pound |
1 |
Rs.85.54 |
|
Euro |
1 |
Rs.58.23 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
|
|
PAID-UP CAPITAL |
1~10 |
|
|
OPERATING SCALE |
1~10 |
|
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
|
|
--PROFITABILIRY |
1~10 |
|
|
--LIQUIDITY |
1~10 |
|
|
--LEVERAGE |
1~10 |
|
|
--RESERVES |
1~10 |
|
|
--CREDIT LINES |
1~10 |
|
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
|
|
--LITIGATION |
YES/NO |
|
|
--OTHER ADVERSE INFORMATION |
YES/NO |
|
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
|
|
--EXPORT ACTIVITIES |
YES/NO |
|
|
--AFFILIATION |
YES/NO |
|
|
--LISTED |
YES/NO |
|
|
--OTHER MERIT FACTORS |
YES/NO |
|
|
TOTAL |
|
|
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/normal. |
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 |
|