MIRA
INFORM REPORT
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Report Date : |
28.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
ALCHEMIST LIMITED |
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Formerly Known As : |
Toubro Infotech and Industries Limited |
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Registered Office : |
Village Dapper, Ambala-Chandigarh Highway, Distt Patiala, Punjab. |
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Country : |
India |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
05.07.1988 |
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Com. Reg. No.: |
008524 |
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CIN No.: [Company
Identification No.] |
L72200PB1988PLC008524 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLA12225D |
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PAN No.: [Permanent
Account No.] |
AABCT1238R |
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Legal Form : |
Subject is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Welded Wire Mesh, Flower Plants, Cut Flower and Software Development. |
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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Maximum Credit Limit : |
USD 5699200 |
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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 Company having fine track.
Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The Company can be considered normal for business dealings of usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Village Dapper, Ambala-Chandigarh Highway, Distt Patiala, Punjab,
India. |
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Tel. No.: |
91-172-2743480/81/82 |
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Fax No.: |
91-172-2740099 |
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E-Mail : |
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Corporate Office : |
SC: 12-13, Sector: 9-D, Madhya Marg, Chandigarh - 160009, India. |
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Tel. No.: |
91-172-4680000, 91-172-2743480/81/82 |
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Fax No : |
91-172-2740099 |
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Factories : |
Near Fast Track Court, Solan, Himachal Pradesh, India. |
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Village Dappar, District Patiala, Punjab |
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91-171-2772666/67/68 |
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Village Chanalon, Near Kurali, District Ropar, Punjab, India. |
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91-1888-2640015/2641170 |
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Village Banmajra, Ropar Kurali Road, District Ropar, Punjab, India. |
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91-1888-2642607 |
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Village Ranjit Pura, Kurali-Morinda Road, District Ropar, Punjab, India. |
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Village Boothgarh, Morinda-Ludhiana Road, District Ropar, Punjab, India. |
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Village Kanogata Rajgarh, District Sirmour, Himachal Pradesh, India. |
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Branches : |
LLC, 1680, N Delany Road, Gurnee IL, 60031 – 1238, USA. |
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Tel. No.: |
847-360-5060 |
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Branches : |
100, First Floor, Okhla Industrial Estate, Phase-3, New Delhi – 20,
India. |
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Tel. No.: |
91-11-4654000 |
DIRECTORS
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Name : |
Mr. Kanwar Deep Singh |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Gurjeet Singh |
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Designation : |
Director |
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Name : |
Mr. Sergio Coreno |
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Designation : |
Director (Nominee of cam financing and General Trade SA of Switzerland) |
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Name : |
Mr. R. P. Chihabra |
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Designation : |
Director |
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Name : |
Mr. Lakhwinder Singh |
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Designation : |
Director |
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Name : |
Mr. Ravinder Singh |
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Designation : |
Director |
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Name : |
Mr. Sarabjit Singh |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters and Associates |
16,00,000 |
30.48 |
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Foreign Collaborators |
3,10,000 |
5.90 |
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Public Financial Institutes |
6,00,000 |
11.43 |
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Mutual Funds |
2,700 |
0.051 |
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Trust (Indian) |
3,600 |
0.068 |
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NRI’s / OCB |
7,34,437 |
13.99 |
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Others |
19,99,663 |
38.09 |
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Total |
52,50,400 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Welded Wire Mesh, Flower Plants, Cut Flower and Software Development. |
PRODUCTION STATUS
|
Particulars |
Qty |
Actual Production |
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Welded Wire Mesh |
Rolls |
22985.5 |
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Welded Wire Mesh |
Sheets |
96139 |
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Cut Flower |
No. |
1332008 |
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Pulses |
Bags |
193350 |
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GENERAL
INFORMATION
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No. of Employees : |
5000 Employees |
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Bankers : |
Ř Bank of Baroda, Sector 22-B, Chandigarh Ř HDFC Bank, Sector 8-C, Chandigarh Ř Punjab National Bank, Sector 17-C, Chandigarh |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ř N. Kumar Chhabra and Company Chartered Accountants Chandigarh Ř T. S. Kapoor and Company Chartered Accountants Patiala, Punjab |
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Associates : |
Ř Toubro Investments Limited Ř Toubro Finance Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,2,1,250,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 1212.500 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,84,97,200 |
Equity Shares |
Rs. 10/- Each |
Rs. 584.972
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2007 |
30.06.2006 |
30.06.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
584.900 |
582.800 |
576.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
839.900 |
874.600 |
753.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1424.800 |
1457.400 |
1330.400 |
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LOAN FUNDS |
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1] Secured Loans |
455.000 |
281.300 |
69.500 |
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2] Unsecured Loans |
377.100 |
303.900 |
222.800 |
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TOTAL BORROWING |
832.100 |
585.200 |
292.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2256.900 |
2042.600 |
1622.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1606.100 |
1482.600 |
1233.800 |
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Capital work-in-progress |
223.800 |
240.600 |
264.000 |
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INVESTMENT |
119.600 |
116.400 |
205.800 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
289.400
|
164.500 |
33.400 |
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Sundry Debtors |
263.200
|
547.000 |
275.000 |
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Cash & Bank Balances |
136.800
|
135.600 |
174.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
81.400
|
85.300 |
80.800 |
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Total
Current Assets |
770.800
|
932.400 |
563.600 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
445.700
|
717.800 |
623.000 |
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Provisions |
59.000
|
46.100 |
31.200 |
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Total
Current Liabilities |
504.700
|
763.900 |
654.200 |
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Net Current Assets |
266.100
|
168.500 |
(90.6) |
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MISCELLANEOUS EXPENSES |
41.300 |
34.500 |
9.700 |
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TOTAL |
2256.900 |
2042.600 |
1622.700 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2007 |
30.06.2006 |
30.06.2005 |
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Sales Turnover |
3821.000 |
3075.800 |
2509.500 |
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Other Income |
26.800 |
28.600 |
7.400 |
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Total Income |
3847.800 |
3104.400 |
2516.900 |
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Profit/(Loss) Before Tax |
185.300 |
153.700 |
139.300 |
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Provision for Taxation |
49.000 |
48.800 |
5.500 |
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Profit/(Loss) After Tax |
136.300 |
104.900 |
133.800 |
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Expenditures : |
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Manufacturing Expenses |
33.100 |
30.600 |
31.000 |
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Selling and Administration Expenses |
90.100 |
52.500 |
32.500 |
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Raw Material Consumed |
3355.700 |
2729.300 |
2261.700 |
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Employees Cost |
38.300 |
28.800 |
9.500 |
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Miscellaneous Expenses |
18.500 |
15.900 |
5.300 |
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Interest and Financial Charges |
68.800 |
62.400 |
8.400 |
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Power & Fuel |
23.800 |
22.500 |
20.600 |
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Depreciation |
74.700 |
67.200 |
16.700 |
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Stock Adjustments |
(40.500) |
(58.500) |
(8.100) |
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Total Expenditure |
3662.500 |
2950.700 |
2377.600 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.09.2007 |
31.12..2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
883.700 |
932.900 |
|
Other Income |
3.800 |
4.300 |
|
Total Income |
887.500 |
937.200 |
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Total Expenditure |
803.000 |
847.300 |
|
Operating Profit |
84.500 |
89.900 |
|
Interest |
19.800 |
20.600 |
|
Gross Profit |
64.700 |
69.300 |
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Depreciation |
17.100 |
17.600 |
|
Tax |
4.100 |
4.600 |
|
Reported PAT |
43.500 |
47.100 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2007 |
30.06.2006 |
30.06.2005 |
|
PAT / Total
Income |
(%) |
3.54
|
3.38 |
5.32 |
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Net Profit Margin (PBT/Sales) |
(%) |
4.85
|
5.00 |
5.55 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.82
|
4.95 |
5.53 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11 |
0.10 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.35
|
0.52 |
0.49 |
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Current Ratio (Current Asset/Current Liability) |
|
1.53
|
1.22 |
0.86 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 5th July, 1988 at District Patiala in Punjab having Company Registration Number 8524.
Subject was originally incorporated as Turbo Mesh Private Limited with the Registrar of Companies at Chandigarh and subsequently the name was changed to Toubro Industries Private Limited under a fresh certificate of incorporation. Later the company was converted into a public company and the name was changed to Toubro Infotech and Industries Limited (formerly known as Toubro Industries Limited)
The company was promoted by Shri Kanwar Deep Singh, graduate with over 12 years of varied business experience.
During 1988 to January 1991, the company was in the pre-operative stages and this time was utilised for setting up the manufacturing facilities. The present business of the company is manufacture of welded wire mesh. This is a pre-fabricated steel reinforcement material manufactured on automatic welding machine. This has various applications such as reinforcement of concrete floors, roofs, walls, footings, retaining walls, swimming pools, tanks, roads, pavements precast concrete components and for the encasing and fire proofing of structural steel work canal lining and gunting. It is also used in general applications such as fencing, poultry cages, animal feed boxes, garden furniture, window grills, decorative and household articles, plant nurseries, etc. the product is sold throughout India through a network of hardware dealers numbering nearly 200. Some sale are also made directly to bulk users such as Thein Dam Project.
The present works of the company is located in Punjab.
The company has recently made some modifications in its existing Plant and Machinery by its own R and D efforts, thus making it capable of producing a wide variety of wire mesh enabling the unit at cater to wider range of end-users.
During the year 1998-99, the company has planned for future diversification and put up an integrated Chicken Processing Project, an outlay of Rs. 1000.000 millions which will be implemented in various phases and hence, build its own brand for these poultry products in the national market followed up by the international scenario. The company has tied up with PSIDC for their involvement in the projects under assisted sector.
In the year 1999-2000, the overall performance of the company is quite encouraging with an increased turnover of Rs. 272.338 millions as compared to Rs. 206.506 millions in the previous year.
OPERATIONS:
During the year ended 30th June, 2007, the Company has achieved
turnover of Rs. 38.475 millions as against Rs. 31.015 millions achieved in the
previous year.
The Company has earned net profit (net of all taxes including deferred tax) of Rs. 1.363 millions during the year against Rs. 1.049 millions during the previous year.
MANAGEMENT
DISCUSSIONS AND ANALYSIS REPORT:
The Year 2006-2007 has been a year of significant developments,
where GDP growth was above 9%. Indian economy continues to be one of the
fastest growing economy in the world. The services sector and manufacturing
sector have performed extremely well recording 11% and 12% growth respectively
in the previous year and the same is expected to be much stronger in the
current year.
Alchemist Limited is operating mainly in the pharma and agri business
(food processing being the main thrust area). The Indian Food Processing
Industry plays a significant role in development of the country. Changing
lifestyles, increasing awareness regarding healthy food and increase in
standard of living have led to increasing acceptance of processed, value added
and packaged foods. The Company is in the process of opening stores under the
brand name 'Red Cap' in various parts of the country. These stores will be
selling processed foods manufactured in the units.
The Company is manufacturing full range of pharmaceutical products both
ethical and generic. The Company has launched many products Podiem
(Antibiotic), Maast (anti-asthamatic), Gaseazy Syrup (Digestant), Anemi-Z Syrup
(Aneamia Management), Drospas (Antispasmodic), Drspas-M
(Antispasmodic-Analgesic), Solcee-Z (Vitamin C and Zinc) etc., and is in the
process of launching more products both ethical and generic in the near future.
Further, the company is in the process of launching OTC product range of
Nutraceuticals. The Company has got patent for manufacture of five
Nutraceutical products. Soon, the company will add more Nutraceutical and
Ayurvedic products.
The company is in the process of acquiring 100% shareholding in Alchemist
Hospitals Limited, thereby Alchemist Hospitals Limited becomes a wholly owned
subsidiary of the company. Alchemist Hospitals is a super specialty hospital
and has been created as per the standards laid down by the Joint Commission
International (JCI), USA. The Hospital is valued at about Rs. 2000.000 millions
by the experts in the Hospital Industry. The Company is already in the
pharmaceutical business and having a hospital will be a step towards forward
integration. The same will give boost to the operational activities of the
Company.
During the year ended 30th June, 2007 the Company has achieved turnover
of Rs. 38.475 millions as against Rs. 31.015 millions achieved in the previous
year. The Company has earned net profit (net of all taxes including deferred
tax) of Rs.1.363 millions during the year against Rs. 1.049 millions during the
previous year.
Government policies, foreign exchange fluctuation, political instability,
competition from international and domestic players, rise in cost of raw
materials are some of the factors which are cause of concern not only for the
business of the Company but for each concern, since these are inherent in every
business situation, the company has taken adequate care to minimize the impact
of such factors and is fully geared up to deal with such type of
situations.
The Company has adequate internal control systems and procedures. The
Company has established procedures for the purchase of raw materials and
stores, manufacture of goods and for its marketing thereof. All the transactions
are properly accounted for and physical verification has been conducted
periodically. The internal audit system of the company is adequate and
commensurate with the size of its business.
Company Profile:
With around 5,000 employees, the company forms a pool of highly dedicated and innovative individuals looking for excellence and above-par results all the times.
Equipped with sheer drive for achieving perfection in every sphere, the group has been moving from strength to strength since its inception in 1981.
Nurturing competition, opportunities and incentives within the group, they, in order to better themselves, work with open minds to let the best come forth. The company has been astutely driven by the values of meticulous attention and precision to the smallest details, thus leaving no scope for error.
While success has been a habit with us, there are certain achievements that have become milestones and benchmarks for others to follow. Above all, the group has earned enormous goodwill in the market and the society as well, owning to its ethical grooming. Mr K D Singh, who is the torchbearer of the company, has been recognized and awarded with several awards and honors that reflect his perseverance and commitment of the group as a whole.
His contribution as the leader of Alchemist Group has earned him accreditations from various national and international associations. These include:
Chairman,
Central Advisory Board, Minimum Wages, Ministry of Labor & Employment,
Government of India .
Federation of Indian Chambers of Commerce and
Industry (FICCI).
Confederation of India Industry (CII).
Nomination by the Honorable Governor of
Punjab, member of the Punjab Export Promotion Board.
The
Rashtriya Ratan Award by Integration and Economic Council of India.
Udyog
Ratan Award by Institute of Economic Study, New Delhi .
Young
Innovative Entrepreneur of the Year Award by Ludhiana Management Association.
International
Solidarity , New York, as Jewel of India 2003
Alchemist Limited is part of Rs. 20000.000 millions
Alchemist group, a leading corporate house with pan-Indian presence and
business interests spread globally. Established as a consolidated entity in
1981, the group has over the years grown into a diversified conglomerate with
business interests in diverse industry segments. The spirit of enterprise and
excellence unites the Alchemist group. The group was established in 1981 and
has grown exponentially over the last decade. The group presently has around
5,000 employees
Alchemist is spread across diverse and profitable businesses comprise: Steel ,
Floriculture , Pharma , Information Technology , Food Processing and
International Business . The company is driven by a spirit of enterprise and
excellence and has grown exponentially over the last decade . The company is
poised to make exponential growth in the near future. Some of the new
initiatives that are on the anvil will launch the group to earn even more
enviable equity in the market.
Union Minister of State For Food Processing Industries (Independent Charge), Mr Subodh Kant Sahai, flanked by Mr K D Singh, Chairman and Managing Director, Alchemist Group , at the Integrated Food Processing Plant of the group at Banmajra, district Ropar, on Jan 27, 2006.
The Union Minister of State for Food Processing Industries (Independent Charge) Subodh Kant Sahai visited Alchemist Limited's Integrated Food Processing Plant at Banmajra, district Ropar, Punjab. Speaking on the occasion, the Hon'ble Minster said that it was time to focus on the food-processing sector as it had long been neglected. He said that a campaign for encouraging retail outlets selling agriculture products would be beneficial for the economic growth of farmers. He said, "India has the potential of becoming the world's food factory and for this the sector needs to be given its due impetus. They are aiming at flooding the world food market with products not only 'Made in India' but also 'Made from India' in which India would be viewed as the world's largest agri raw material supplier. Countries like Thailand have developed their economy on the basis of food-processing alone".
Also speaking on the occasion, K D Singh, Chairman and Managing Director, Alchemist Group, suggested that the Union Government should give the food-processing sector all the perks and impetus presently being provided to the Information Technology and Infrastructure sector.
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 :
The 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.
The 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. 39.97 |
|
UK Pound |
1 |
Rs. 79.78 |
|
Euro |
1 |
Rs. 62.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|