MIRA
INFORM REPORT
|
Report Date : |
19.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
P I INDUSTRIES LIMITED |
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Registered Office : |
Post Box No. 20,
Udaisagar Road, Udaipur – 313001, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
31.12.1946 |
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Com. Reg. No.: |
17-469 |
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CIN No.: [Company
Identification No.] |
L24211RJ1946PLC000469 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHP01697D |
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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 Pesticides, Industrial Chemicals and Polymers, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 2572556 |
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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 whose profit margin is under severe pressure.
General Financial position is satisfactory. Payments are reported as correct
and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Post Box No. 20,
Udaisagar Road, Udaipur – 313001, Rajasthan, India |
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Tel. No.: |
91-294-2492451-55 |
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Fax No.: |
91-294-2491946 /
2491384 |
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E-Mail : |
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Website : |
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Corporate Office : |
4th
Floor, Tower – A, Millennium Plaza, Sector – 27, Gurgaon – 122 022, Haryana,
India |
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Tel. No.: |
91-124-5159000 |
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Fax No.: |
91-124-5081247 |
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Factory : |
Millenium Plaza Tower – A, Sector – 27, Gurgaon, Haryana, India |
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Plants : |
Tel.
91-294-2492451-55 Fax.
91-294-2491946 Telex. 0335-202-COMP
IN
Tel. No. 91-2646-272105/399 Fax. No.: 91-2646-272313
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Regional
Offices : |
Located at :- ·
Agra, Uttar
Pradesh ·
Kolkata,
West Bengal ·
Jalandhar,
Punjab ·
Vijayawada,
Andhra Pradesh ·
Coimbatore ·
Ahmedabad,
Gujarat |
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Branches : |
Located at:- ·
Cuttack,
Orissa ·
Patna, Bihar
·
New Delhi |
DIRECTORS
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Name : |
Mr. Salil Singhal
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Designation : |
Chairman and
Managing Director |
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Address : |
Lake House, P P
Singhal Marg, Udaipur – 313 001, Rajasthan, India |
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E-Mail: |
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Date of
Birth/Age : |
21.08.1946 |
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Date of
Appointment : |
03.12.1984 |
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Name : |
Mr. Mayank
Singhal |
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Designation : |
Joint Managing
Director |
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Address : |
P P Singhal Marg,
Udaipur – 313 001, Rajasthan, India |
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E-Mail: |
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Date of
Birth/Age : |
03.04.1973 |
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Date of
Appointment : |
28.09.1998 |
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Name : |
Mr. Gautam
Ramanlal Divan |
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Designation : |
Director |
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Address : |
134, Mittal
Towers, Nariman Point, Mumbai – 400 021, Maharashtra, India |
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Date of Birth/Age
: |
22.07.1940 |
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Date of
Appointment : |
17.02.1998 |
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Name : |
Mr. Arvind
Singhal |
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Designation : |
Director |
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Address : |
P P Singhal Marg,
Udaipur – 313 001, Rajasthan, India |
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Date of
Birth/Age : |
29.11.1947 |
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Date of Appointment
: |
03.12.1984 |
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Name : |
Mr. Pradhuman
Natvarlal Shah |
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Designation : |
Director |
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Address : |
Maker Bhawan No.
2, 18 new Marine Lines, Mumbai – 400 020, Maharashtra, India |
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Date of
Birth/Age : |
01.01.1929 |
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Date of Appointment
: |
07.09.1990 |
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Name : |
Mr. Amiya Kumar
Mukherjee |
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Designation : |
Director |
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Address : |
Bunglow No. 20,
Amrakadamb Co-operative Housing Society Limited, Ramdev Nagar, Satelite Road,
Ahmedabad – 380 015, Gujarat, India |
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Date of
Birth/Age : |
11.02.1929 |
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Date of
Appointment : |
12.03.1993 |
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Date of
Ceasing: |
30.09.2005 |
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Name : |
Mr. Satya Prakash
Vishnoi |
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Designation : |
Director |
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Address : |
C 9/9106 Vasant
Kunj, New Delhi – 110 070, India |
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Date of Birth/Age
: |
23.11.1934 |
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Date of
Appointment : |
29.01.2004 |
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Name : |
Mr. Anurag Surana
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Designation : |
Whole Time
Director |
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Address : |
Ameya Plot No. 1
/ 2, B/H Sagar Darshan Apartment, Devali, Udaipur – 313 004, Rajasthan, India
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E-Mail: |
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Date of
Birth/Age : |
22.01.1965 |
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Date of
Appointment : |
30.09.1998 |
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Name : |
Mr. Yatin Ajitrai
Mankad |
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Designation : |
Nominee Director
of IDBI Limited |
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Address : |
IDBI Ahmedabad
Branch, IDBI Complex, Near Lal Bungalow CGO Road, Ahmedabad – 380 006,
Gujarat, India |
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Date of
Birth/Age : |
22.04.1957 |
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Date of
Appointment : |
08.04.2004 |
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Name : |
Mr. G G Agarwal
(Doctor) |
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Designation : |
Director – Finance
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KEY EXECUTIVES
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Name : |
Mr. Sanjay Kumar
Tiwari |
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Designation : |
Company Secretary
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Address : |
31C, CPWD
Complex, Vasant Vihar, New Delhi – 110 057, India |
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E-Mail: |
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Date of
Birth/Age : |
11.09.1973 |
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Date of
Appointment : |
20.12.2004 |
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Name : |
Mrs. Sujata
Sharma |
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Designation : |
Secretary |
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Address : |
D – 650, Saraswati
Vihar, New Delhi – 110 034, India |
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Date of
Birth/Age : |
22.05.1965 |
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Date of
Appointment : |
24.04.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders [As on 31.03.2007] |
No. of Shares |
Percentage of Holding |
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Overseas
Corporate Bodies |
457400 |
12.91 |
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Promoters |
2657579 |
74.99 |
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Others |
428775 |
12.10 |
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TOTAL |
3543754 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of Pesticides, Industrial Chemicals and Polymers, etc. |
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Products : |
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Exports : |
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Countries : |
·
South Asia ·
Europe ·
Japan ·
Russia. |
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Imports : |
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Countries : |
·
USA ·
China ·
Japan ·
Europe ·
Far East |
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Terms : |
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Purchasing : |
L/C, D/A and D/P
(90 days) |
PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Chemical including by products |
Tones |
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38537 |
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Others |
Tones |
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3823 |
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Total |
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42360 |
GENERAL
INFORMATION
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No. of Employees : |
Around 800 |
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Bankers : |
·
State Bank of
India, Udaipur, Rajasthan, India ·
State Bank
of India, Commercial Branch, 6th Floor, Palm Court, Near MDI,
Gurgaon – 122002, Haryana , India ·
State Bank
of Bikaner and Jaipur, Udaipur, Rajasthan, India ·
ICICI Bank Limited,
9 A, Phelphs Building, Connaught Place, New Delhi – 110001 ·
Canara Bank,
New Delhi, India ·
Canara Bank,
Udaipur, Rajasthan, India ·
Bank of
Rajasthan Limited, Udaipur, Rajasthan, India ·
Axis Bank
Limited, 151-152, Chetak Marg, Udaipur – 313001 |
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Facilities : |
SECURED LOAN (Rs. in Millions)
Note: i) Loans from IDBI under its
Equipment and Corporate Loan Schemes and Vehicle Loans are secured by
exclusive charge by way of hypothecation of the specific assets purchased
under the scheme. ii) Other term loans are secured
on pari pasu basis by a joint equitable mortgage through deposit of Title
Deeds on all immovable properties and first charge ranking pari pasu by way
of hypothecation of all movable properties, present and future, subject to
prior charge in favour of the Company's bankers over the book debts and
stocks. iii) Working Capital Loans
are secured on pari pasu basis by hypothecation of stocks of raw materials, finished
and semi-finished goods, consumable stores and book debts "and are
additionally secured by a second charge on all the movable and immovable
properties of the Company. All the above loan have been guaranteed by two Directors of the
Company UNSECURED LOANS (Rs. in millions)
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B. D.
Gargieya and Company Chartered
Accountants, |
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Address : |
Bank of Rajasthan
Building, M I Road, Jaipur – 110065, Rajasthan, India |
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Name : |
S. S. Kothari and
Company Chartered
Accountants |
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Address : |
146 – 149,
Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi – 110065, India |
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Cost Auditors : |
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Name
: |
K. G. Goyal and
Company Chartered
Accountants, |
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Address: |
8, Chitra Gupta
Nagar, Jyoti Nagar Railway Crossing, Jaipur – 302 005, Rajasthan, India |
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Associates : |
·
Wolkem
Limited It exports Wolkastonite to USA, UK, Germany, Spain, Italy, Japan and
South Korea. ·
Secure
Meters Limited Manufacturer of highly sophisticated and accurate solid state
electronic energy meters and energy management systems ·
Samaya
Investment and Trading Private Limited ·
Parteek
Finance and Investment Company Limited ·
Lucrative
Leasing Finance and Investment Company Limited ·
Binarvi Holding
Private Limited ·
Nansjay
Investment Private Limited ·
Polymeters
Response International Limited ·
Lipi Data
Systems ·
Manufacturers
of large size heavy-duty line printers for ·
computers in
technical collaboration with a USA company |
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Subsidiaries : |
Pill Finance and Investment Limited Board of Director Mr. A K Mukherjee Mr. Salil Singhal Mr. Anurag Surana Mr. R Srinivasan Banker ICICI Bank
Limited IDBI Limited Auditors Kishan M Mehta
and Company Chartered
Accountant Registered Office – 209, Himalaya
Arcade, Near Bharat Petrol Pump, Vastrapur, Ahmedabad –
380015 |
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PI Life Science Research Limited Board of Directors Dr. S P Vishnoi Mr. Anurag Surana Mr. R Srinivasan Bankers: Axis Bank Limited Auditors K S Mehta and Company Chartered
Accountant Registered Office: 603 – C, Philips
CGHS Limited, Plot No. 3, Sector – 23, Dwarka, New Delhi - 110075 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7000000 |
Equity Shares |
Rs.10/- each |
Rs.70.000 millions |
|
300000 |
Preference Shares
|
Rs.100/- each |
Rs.30.000 millions |
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Total |
|
Rs.100.000 millions |
Issued capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3561411 |
Equity Shares |
Rs.10/- each |
Rs.35.614 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3543754 |
Equity Shares |
Rs.10/- each |
Rs.35.438 millions |
Note : Of the above Equity Shares : 9,34,749 Equity Shares of Rs.10/- each fully
paid up and 122 fractional coupons of Rs. 5/- each fully paid up were allotted
as Bonus shares by capitalization of reserves in earlier years.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
|
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|
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1] Share Capital |
35.438 |
35.438 |
35.400 |
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2] Share Application Money |
0.000 |
0.000 |
.0000 |
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3] Reserves & Surplus |
607.701 |
563.525 |
524.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
643.139 |
598.963 |
559.600 |
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LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
1459.948 |
952.645 |
654.600 |
|
|
2] Unsecured Loans |
143.061 |
126.473 |
128.200 |
|
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TOTAL BORROWING |
1603.009 |
1079.118 |
782.800 |
|
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DEFERRED TAX LIABILITIES |
201.700 |
174.413 |
0.000 |
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TOTAL |
2447.848 |
1852.494 |
1342.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1476.538 |
1180.833 |
923.600 |
|
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Capital work-in-progress |
0.000 |
0.000 |
8.800 |
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INVESTMENT |
27.141 |
25.281 |
13.300 |
|
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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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|
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|
Inventories |
692.359 |
596.407 |
587.500 |
|
|
Sundry Debtors |
822.612 |
468.935 |
446.600 |
|
|
Cash & Bank Balances |
29.911 |
22.993 |
25.200 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
238.184 |
154.757 |
90.200 |
|
Total
Current Assets |
1783.066 |
1243.092 |
1149.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
849.316 |
608.030 |
755.500 |
|
|
Provisions |
0.674 |
5.330 |
2.600 |
|
Total
Current Liabilities |
849.990 |
613.360 |
758.100 |
|
|
Net Current Assets |
933.076 |
629.732 |
391.400 |
|
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MISCELLANEOUS EXPENSES |
11.093 |
16.648 |
5.300 |
|
|
|
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|
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TOTAL |
2447.848 |
1852.494 |
1342.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
3175.687 |
2592.457 |
2741.477 |
|
|
Other Income |
23.886 |
20.647 |
0.000 |
|
|
Total Income |
3199.573 |
2613.104 |
2741.477 |
|
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|
|
|
|
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|
Profit/(Loss) Before Tax |
89.913 |
72.088 |
138.404 |
|
|
Provision for Taxation |
45.288 |
32.297 |
38.800 |
|
|
Profit/(Loss) After Tax |
44.625 |
39.791 |
99.604 |
|
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|
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|
Export Value |
898.134 |
672.099 |
598.813 |
|
|
|
|
|
|
|
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Import Value |
709.866 |
558.951 |
562.097 |
|
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Expenditures : |
|
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Cost of Materials |
1976.845 |
1566.820 |
|
|
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Operating Expenses |
208.255 |
175.383 |
|
|
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Payment to and Provisions for Employees |
255.659 |
219.041 |
|
|
|
Administrative, Selling and Other Expenses |
442.792 |
405.033 |
|
|
|
Interest and Other Financial Charges |
139.487 |
101.597 |
|
|
|
Depreciation |
87.071 |
73.651 |
|
|
|
Less: Transferred from Revaluation Reserve |
[0.449] |
[0.509] |
2605.729 |
|
Total Expenditure |
3109.660 |
2541.016 |
2605.729 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 (1st Quarter) |
30.09.2007 (2nd Quarter) |
31.12.2007 [3rd Quarter] |
|
Sales Turnover |
818.100
|
1069.000
|
836.900
|
|
Other Income |
02.000
|
7.400
|
5.000
|
|
Total Income |
820.100
|
1076.400
|
841.900
|
|
Total Expenditure |
726.200
|
942.600
|
806.600
|
|
Operating Profit |
93.900
|
133.800
|
35.300
|
|
Interest |
44.800
|
38.700
|
41.400
|
|
Gross Profit |
49.100
|
95.100
|
-06.100
|
|
Depreciation |
23.700
|
24.000
|
24.500
|
|
Tax |
4.100
|
10.500
|
-2.000
|
|
Reported PAT |
18.000
|
57.700
|
-30.900
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
2.24 |
1.67 |
1.29 |
|
Long Term Debt-Equity Ratio |
1.27 |
1.03 |
0.88 |
|
Current Ratio |
1.01 |
1.06 |
1.08 |
|
Fixed Assets |
2.20 |
2.26 |
2.71 |
|
Inventory |
6.07 |
5.65 |
6.90 |
|
Debtors |
6.06 |
7.31 |
10.23 |
|
Interest Cover Ratio |
1.64 |
1.71 |
2.76 |
|
Operating Profit Margin(%) |
8.08 |
7.39 |
8.49 |
|
Profit Before Interest And Tax Margin(%) |
5.86 |
5.21 |
6.36 |
|
Cash Profit Margin(%) |
3.36 |
3.37 |
5.05 |
|
Adjusted Net Profit Margin(%) |
1.14 |
1.19 |
2.92 |
|
Return On Capital Employed(%) |
11.90 |
11.79 |
19.44 |
|
Return On Net Worth(%) |
7.44 |
7.15 |
20.29 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was
incorporated on 31st December, 1946 at Udaipur in Rajasthan under
the name and style of Mew Oil and General Mills Limited having Company Registration
Number 469. Subsequently, the name of the company was changed to Pesticides
India Limited with effect from 01.01.1990.
Again, the name of
the company was changed to present.
PILL Finance and
Investment is a 100% subsidiary of the company. As a part of its
diversification, it has set up a plant to manufacture polyurethane compounds
used in the adhesive industry at a project cost of Rs.23.000 millions and also
put up a compounding unit for supplying plastic and polymer moulders.
In the year 1999,
the expansion which was undertaken at the company’s plant at Panoli including
state of art multi product plant for manufacturing of industrial chemical has
been completed and is now fully operational.
The polymer
business witnessed a revival and growth in business after a prolonged necessary
situation with the industrial climate showing positive trends.
The company
Manufactures Pesticides and Insecticides. The company is also engaged in other
segments such as Minerals, Metering and Allied Products.
SALIL SINGHAL,
Chairman & Managing Director
Mr. Salil Singhal is the Chairman and Managing Director of the Company.
Mr. Singhal is graduate from St. Xavier's College, Mumbai and has more than 40
years extensive, rich and varied experience in the fields of Chemicals,
Intermediate and Agrochemicals industries. Mr. Singhal has been instrumental in
bringing about technological and managerial excellence in the Company's
operations. Mr. Singhal is currently on the Board of Wolkem India Limited,
Historic Resorts Hotels Private Limited., The Lake Palace Hotels and Motels
Private Limited, Secure Meters Limited, Somany Ceramics Limited, PILL Finance
and Investments Limited.
MAYANK SINGHAL,
Joint Managing Director
Mr. Mayank Singhal is Graduate Engineer from Engineering Management,
London. Mr. Singhal was inducted on the Board of the Company in the year 1998.
He has been the Joint Managing Director of the Company since December, 2004.He
has been contributing in the fields of financial management, general
management, strategic management and business leadership and under his
direction and leadership Company has achieved robust growth. Presently he is
also a Director on the Board of PI Life Science Research Limited, PILL Finance
and Investments Limited. And Samaya Investment and Trading Private Limited.
ANURAG SURANA,
Whole time Director
Mr. Anurag Surana is a 6. Com (Hons)
graduate and has a career spanning over 19years. He has been actively involved
in the Indian and International marketing for the Company and is playing an
active role in the growth of the Company. Mr. Surana is a Director on the Board of PILL Finance and Investments
Limited, PI Life Science Research Limited and WILL Investments Limited.
G.R.DIVAN,
Director
Mr. G.R. Divan is a Chartered Accountant and Partner of M/s Rahul
Gautam Divan & Associates, a leading Chartered Accountants firm. He has
specialized knowledge in corporate laws, taxation etc. Mr. Divan is a Director
on the Board of the Company since 1998 Presently he serves as a Director on the
Board of Bell Ceramics Limited., Baltic Consultancy and Services Private
Limited, Serendib Investments Private Limited, Chandabhoy and Jassoobhoy
Consultants Private Limited, HDFC Standard Life Insurance Co. Limited. HDFC
Bank Limited. Ascent Hotels Private Limited.
P. N. SHAH.
Director
Mr. P.N. Shah is a Chartered Accountant and partner of M/s Shah &
Co., Chartered Accountants, Mr. Shah is a Director on the Board of the Company
since 1991. Mr. Shah brings with him extensive experience in the fields of
Finance. Presently he is a Director on the Board oflndo Count Industries
Limited, Secure Meters Limited, Taparia Tools Limited, Lipi Data Systems
Limited, Wolkem India Limited, LIC Mutual Fund Trustee Company Private Limited.
DR.S.P. VISHNOI,
Director
Dr. S. P. Vishnoi holds a Masters Degree in Mathematics and Ph. D in
Management and Agriculture Economics. He joined Indian Administrative Services
(IAS) in 1957 and retired from the service in 1992,as a Secretary to the Government
of India. He also worked on both State/Central Government Departments in top
level position. He was the Executive Director, Agrochemicals Information
Centre, New Delhi during 1994-1999 and Resident Director, Indian Crop
Protection Association / Crop Life India at New Delhi during 1999-2003. Dr.
Vishnoi is also a Director on the Board of PI Life Science Research Limited.
NARAYAN
K.SESHADRI, Director
Mr. Narayan K. Seshadii, a Chartered Accountant having specialized
knowledge in the areas of Financial and Consultancy services is a Director on
the Board of the Company since 2006. Presently he is also a Director on the
Board of Halcyon Enterprises Private Limited, Halcyon Resources &
Management Consulting Private Limited, Development Credit Bank Limited, DHFL
Venture Capital India Private Limited, Haldyn Glass Gujarat Limited, Halcyon GB
Holding Private Limited, Magma Leasing Limited, Kalpataru Power Transmission
Limited and The Barodii Rayon Corporation Limited.
Y. A. MANKAD,
Nominee Director of IDBI Limited
Mr. Y.A. Mankad has been appointed by IDBI Limited on the Board of the
Company in April 2004. Mr. Mankad is working as Deputy General Manager of IDBI
Ltd. Presently he is also a Director on the Board of M/s Gujarat Toll Road
Investment Co. Limited as nominee Director of IDBI Limited
MANAGEMENT DISCUSSION AND ANALYSIS:
·
Industry Structure and Developments:
Indian Agriculture,
which has been passing through a flat phase, has now become a focus area
particularly for the Central Government. With the right policy initiatives,
Indian Agriculture is capable of delivering a second Green Revolution. The
Central Government is actively promoting market driven agriculture,
diversification of crops and opening up of the markets. Horticulture (fruits
and vegetables) and seeds continue to be future growth areas with adequate
support from the government. A National Horticulture Board has also been
established.
With this focus at
the policy front, the medium and long term prospects of agriculture are really sound.
In the short term, the major dependence on monsoon and the poor infrastructure
of material movements and markets do have a major impact on agricultural
production.
The monsoon in 2004 was by and large normal with some regional imbalances.
Monsoon was particularly beneficial in the Southern part of the country, which
reflected in the good agricultural production in the region.
The seed industry continued its upward trend. Farmers are increasingly adopting
hybrid seeds due to the higher yield and better quality of produce. Genetically
modified cotton established itself in the market, with several new companies
getting approvals, entering the field and expanding the market. However spread
of illegal BT cotton seed is a matter of concern for the Industry.
The patent legislation in line with WTO requirements was adopted with effect
from 1st January, 2005. Given the large number of generics in the
market. The impact is expected to be limited during the next few years. However,
in the long run Indian companies will need to have access to unique
molecules.
The fine chemical business ail over the world has come under a huge cost
pressure due to very large increase in petroleum prices leading to increase in
downstream petrochemical product prices. On the other hand, due to a general
situation of over supply the selling prices have remained constant leading to
erosion in profit margins in most of the chemical companies. The problem in
India is compounded due to poor export realizations caused by the strengthening
Rupee.
On the other hand. Opportunities are always available due to large number of
pharmaceutical products coming off patent in the U.S. as also by pursuing right
market opportunities.
Due to changing global consumption trends in the areas of electronics,
photography etc. there is a large potential business possibility from companies
looking to outsource such performance chemicals like electronic chemicals,
photographic chemicals etc.
The major customer segments of engineering plastic compounds, auto components
and the electrical and electronics industry are going through a remarkable
growth phase.
However, most OEMs are demanding lower prices at a time when the prices of
steel and other raw materials are soaring. Therefore, compounders must compete
with cheaper economies and lower margins.
PERFORMANCE
HIGHLIGHTS
The Company has
reported a marked performance during the year 2006-07. During the year under
review, income increased to Rs.3199.573 Millions as compared to Rs.2613.104
Millions during the previous year. The
Profit after tax for the year under review was Rs.44.625 Millions as compared
to Rs.39.791 Millions during the previous year.
Outlook:
The onset of
monsoon in 2005 though delayed has been widespread and adequate in most parts
of the country. Given the growth strategies, better systems, and new
initiatives taken by the company, continued improved performance is expected in
the current year.
In light of the new patent regime it is proposed to source new technologies and
commercialize them in a phased manner. This will secure the company's
future.
Further, due to the various initiatives taken, the company expects to finalize
new contract manufacturing businesses during the current year.
Polymer business is targeted to grow by about 30% for the financial year
2005-06 over the previous year of 2004-05.
To augment its
supply chain, it has made toll manufacturing arrangement with one of the
leading toll manufacturer near its manufacturing facility at Panoli (Gujarat).
It shall also strengthen its marketing team to achieve its budgeted sales
targets.
Given these growth strategies and new initiatives, all round improved
performance is expected in the current year.
SUBSIDIARIES:
·
PILL Finance & Investment Ltd.
(PILL-F):
The Company posted
a profit of Rs.0.765 millions during the year.
·
PI Life Science Research Ltd. (PILSR):
To achieve a better focus in R and D activities, a new subsidiary was
established during the year. PILSR has established a state of the art R and D
Laboratory and commenced activities during the current year:
Pursuant to section 212 of the Companies Act, 1956, the Directors' Report and
Accounts of the company's subsidiaries, as required, are appended.
The company's fixed
assets of important value include freehold and leasehold land, building, plant
and machinery, furniture, fixture and office equipments, vehicles, library,
tools and equipments and R and D equipments.
The company is in
trade terms with:-
·
Kaiser
Industries Limited, Delhi
·
Mipak Plastics
Private Limited, Mumbai
·
Maldar Barrels
Private Limited, Mumbai
·
Paper Plast
Industries (India) Private Limited
·
Vimal
Chemicals, Udaipur, Rajasthan
·
Ameeja
Enterprises, Mumbai
·
Akry Organics
(Private) Limited, Mumbai
·
Ajay
Packaging, Daman
·
Jalaram Box
Makers Private Limited, Ankleshwar
·
Krishna
Organics (Private) Limited, Vadodara, Gujarat
·
Mineral and
Matel Industries, Bhavnagar
·
Maharashtra
Metal Works Private Limited, Mumbai
·
Neogen
Chemicals Limited, Thane, Maharashtra
The company's
important overseas trading partners are Mitsubishi and Marubeni of Japan.
WEBSITE DETAILS ATTACHED:
Subject is in the
business of – Agri inputs,
Fine
Chemicals (CRAMS - Contract Research and
Manufacturing Services), Polymers and Engineering
Services.
Founded in 1947 in the city of lakes - Udaipur, Rajasthan
(India), it was named subject
in 1993 to reflect its new diversified businesses.
Subject is committed to growth, driven by its corporate philosophy, and
aims to achieve the highest standards in all its endeavors.
PI’s
strength lies in:
·
More than 30 years of strong business associations with large number of
leading multinationals across the globe.
·
One of the oldest, largest and most credible distribution networks in
rural India with some of the leading brands in agri-input sector.
·
Strong management capabilities, research and development and world class
manufacturing infrastructure.
·
One of the leading companies in Contract Research and Manufacturing
Services (CRAMS), having long term tie-ups with leading chemical companies
across the globe for newly invented products.
· Amongst the top 5 and fastest growing companies in polymer compounding by providing innovative solutions.
News and Events
PI CAP is their
quarterly releasing newsletter aiming at providing updation in development,
innovation, Opportunities and growth in the company. They have closed the
financial year 2006-07 with reasonably good performance. I congratulate every
member of PI family for his commitment to the organization. None of this could
have happened without the dedication and hard work. As I have said many times,
a company is only as good as the people who represent it. It is the commitment
to excellence that makes the PI brand shine brighter. Now it's time to look
forward. The New Fiscal Year offers excitement, optimism and new opportunities.
They have great challenges ahead. In the rapidly changing business environment,
they need to keep theirselves abreast of the latest developments happening
around us. Globally, the whole world is looking at India for the immense
opportunities it offers and locally big corporate are moving into rural areas.
They need to create, identify and work on these opportunities. The challenges
of the coming year would definitely be much bigger than of yesteryears. What
they all require is clarity in objectives, the right attitude and teamwork.
Today's challenges will be the stepping stones for tomorrow. And they are
growing as a team. I see many new faces with a mix of young blood and vast
experienced talent pool of varied backgrounds. I trust that with this energetic
talent pool, they will be able to establish the new benchmarks in corporate
excellence. In addition to show good business performance and corporate
governance, it is also important to be aware about the social purpose of being
in business. They must keep educating their farmers on the safe and judicious
use of agrochemicals as a part & parcel of their corporate social
responsibility. It is important that they continue with these initiatives. They
should also be available to fulfill their social responsibilities. The reverse
count for the year is on! I hope, by the time you will receive my message you
would have started delivering towards new heights. Once again, I wish you a
great and successful New Financial Year on both the personal and the
professional front.
National Energy
Conservation Award-2006
It was a proud
moment for PI family on December 14, 2006, when their Panoli Team comprising of
Vivek Srivastava, Vipul Parikh, D. Bhowmik and R.K. Tiwari, led by D. K. Ray,
received the prestigious National Energy Conservation Award from Shri. Sushil
Kumar Shinde, Union Minister of Power, Government of India, in a ceremony held
at Vigyan Bhavan, New Delhi. Awards were distributed on the occasion of
National Energy Conservation Day to the companies who have implemented best
practices for Energy Conservation, continuously for the past three years,
resulting in substantial returns in terms of energy conservation.
PI received this
prestigious award in recognition of consistent and continual improvement in the
area of power, fuel and resource utilization. With this award, their company
has come into the list of energy efficient companies of the country.
Founder's Day
2007
Once again all
Group Companies joined their hands together on February 13th in commemoration
of Founder’s Day. The celebrations were carried out at various locations across
India. In Udaipur, the day begun with puja and abhishek of the statue of their
founder, Late Shri. P. P. Singhal. The program was followed by sports
activities and fun games. The employees of group companies – Secure Meters and
Wolkem India also participated in the activities with great enthusiasm. All the
sports activities and fun games were held at company premises. All groups of
employees irrespective of their cadre, age took part in the various activities
and enjoyed their participation. In evening, a grand cultural show was
organized in Bhartiya Lok Kala Mandal. The program started with the address of
their CMD, Mr. Salil Singhal. During the program employees were felicitated by
mementos and certificates for their long association with the company by their
Chairman Mr. Salil Singhal and Mr. Arvind Singhal (MD, Wolkem India Ltd.). The
highlight of the Cultural Show was a Drama named “Kashmkash” performed by the
artists of IPTA, Mumbai likes of Anjan Srivastava, Avtar Gill and Sulbha Arya
which was well appreciated by all. The Program ended with Vote of Thanks by Mr.
Sanjay Singhal (MD, Secure Meters Ltd.) In the same line of celebrations, the
Founder's day was celebrated at Panoli, Jammu and Gurgaon. In Gurgaon,
employees with their family members participated in the celebration marked by
fun and Games. The event was organized at Unitech Country Club, Gurgaon. In
Panoli, cultural and sports activities were organized in company's premises to
mark the day. Jammu employees also showed enthusiasm in celebrating the
Founder's day by having a cultural trip.
Mr. Salil
Singhal Elected as Deputy Chairman, CII (Northern Region)
Their CMD, Mr.
Salil Singhal has been elected as Deputy Chairman of Confederation of Indian
Industry (Northern Region). He was the member of the Rajasthan State Council of
CII for two years and has been the member of Northern Region Council for the
past ten years. CII is a non-government, not-for-profit, industry led and
industry managed organisation, playing a proactive role in India's development
process. Founded over 111 years ago, it is India's premier business
association, with a direct membership of over 6300 organisations from the
private as well as public sectors, including SMEs and MNCs, and an indirect
membership of over 90,000 companies from around 336 national and regional
sectoral associations.
The Northern Region
(CII) comprises of the states of J&K, Himachal Pradesh, Punjab, Haryana,
Delhi, UP, Uttarakhand and Rajasthan.
CMD Visits Japan
as a Part of Prime Minister’s Delegation
Their CMD, Mr.
Salil Singhal was invited to accompany their Hon'ble Prime Minister Shri. Man
Mohan Singh as part of his delegation on his official visit to Japan from 14-
16th December, 2006. Visit was part of the increasing Eastern orientation of
India's foreign policy exploring potential of convergence of both countries'
long-term political, economic and strategic interests. Being part of the
businessmen’s delegation, their CMD met with many Japanese businessmen and
exchanged views to further their business interests.
Activities at PI
Udaipur
PI Industries
Udaipur is making regular efforts not only towards achieving the professional
target but also getting attached with the hearts of employees by organizing
various activities. The major
activities conducted during the last quarter at Udaipur were Christmas
celebration, New year eve celebration, Participation in ”Run For IIT” rally.
Besides there is monthly celebration of birthdays of the employees having a
cake cutting ceremony followed by Hi-tea programme.
Christmas
Celebration: The
celebration of “Christmas”, which turned out to be very merry and bright one!
Moti Singh (Security Guard) in the Santa dress looked awesome!! Absolute copy
of Santa……..Santa distributed Sweets and his blessings to all the team members
of PI and spread warmth in the cold winter!!
New Year Eve
Celebration: On New Year
eve, PI Udaipur held two celebrations one was New Year's celebration and other
was December month Birthdays Celebration. Mr. Anurag Surana, Director addressed
the team on this occasion and extended his best wishes to all team member for
prosperous, happier and healthier New Year. He also welcomed the new joinees on
this occasion and asked everyone to take a resolution for a better tomorrow and
commitment to make their Company ‘The Best Place’.
PI Fine Chem - A
Trusted Name In Japanese Chemical companies
India is getting
increasing attention from Japan for custom manufacturing of agrochemicals &
its' intermediates, API's & pharmaceutical intermediates, specialty
chemicals and fine chemicals. PI Fine Chem is also getting more inquiries due
to the excellent reputation it has built over the years. PI Fine Chem
successfully made on-time and good quality commercial supplies of a new product
in the last quarter to Europe. This project was completed in a record time. Due
to the performance PI Fine Chem is getting overwhelming response from across
the globe. It is already working on a number of projects in collaboration with
some of the very large European, Japanese and American companies, where it is
becoming increasingly popular.
PI at CPhI Tokyo
PI Fine Chem
participated in the CPhI Japan held at Tokyo Big Site from April 18 to 20,
2007. This was their fifth participation in a row at CPhI Tokyo.This year India
was the focus country at CPhI Tokyo and there was a special India pavilion
where 44 Indian companies were present as exhibitors. This number is next only
to Japan (168 exhibitors) and China (84 exhibitors). The number of visitors to
the CPhI in three days was 13,374. The number of visitors to their booth was
considerably higher than previous years. Many of their existing customers
visited their booth to discuss about ongoing projects as well as new inquiries.
Some new customers also visited their booth and showed keen interest in PI Fine
Chem and wanted to know more about their custom manufacturing capabilities and
strengths. Some of them gave us new inquiries for custom manufacturing. They
have since initiated work on these new inquiries in their R & D.
Mr. Toshiaki
Hashimoto, President PI Fine Chem Japan, also made a detailed presentation
titled, “Creation and Practice of Contract Research and Manufacturing Model for
Japanese Customers”. During the presentation Mr. Hashimoto emphasized upon the
various advantages offered by PI Fine Chem, particularly in the field of Custom
Synthesis and Contract Manufacturing. The presentation was attended by more
than 120 senior persons representing prominent chemical industries of Japan.
Japanese
Business Delegation visits Panoli FC Facility
Chemical Daily, a
major news paper dedicated to chemical industry in Japan, organized visit of a
large Japanese business delegation to their Panoli works on 29th November 2006.
The delegation was in India to attend “CPhI India”, held at Mumbai in December
2006. The delegation comprised of representatives of leading Chemical Companies
in Japan. The delegation was impressed to see the infrastructure &
capabilities, high safety standards, quality systems and their documentation,
good house keeping practice and discipline among the employees.
Latest
Developments in Fine Chem Business
During the quarter
that ended on March 2007, they received 16 new inquiries out of which 14 were
found worth investigating and work is in progress at various stages. Their
process development team at kilo lab, Udaipur, has worked on the scale up study
and synthesis of 5 new molecules which shall be commercialized within 2007-08.
Apart from these, one new product was commercially produced and supplied in the
quarter ended March 2007. High level business delegations from large
multinational companies from Japan, Europe & USA visited their R&D
center at Udaipur and commercial manufacturing facility at Panoli.
22/12/2006 - PI at CPhI Worldwide - Paris 2006
PI at CPhI
Worldwide - Paris 2006
PI Fine Chem had yet another successful participation in CPhI Worldwide this
year. CPhI is the world's largest international convention on pharmaceutical
ingredients and intermediates held every year. This year it was held at Nord
Villepinte, Paris from 3rd - 5th October 2006. This was their fourth
consecutive participation in CPhI world wide. In the previous years they had
participated in CPhI held at Madrid, London and Frankfurt. Two allied exhibitions
- ICSE - the International Contract Services Expo and P-MEC - the
Pharmaceutical Machinery and Equipment Congress were also set up as a part of
the mega event. This tripartite of events allowed visitors to indulge in the
complete one-stop -shopping experience for every part of their pharmaceutical
manufacturing business.
The overall participation this year was much better than last year. This year
over 1,500 exhibitors of API's, intermediates, excipients and other fine and
specialty chemicals participated in the fair. A large number of visitors, to
the tune of 21000, visited the fair.
This event had a number of specialist pavilions, to enable attendees to meet
company representatives from specific countries specializing in specific products
of their interest. In addition there were a number of geographically targeted
pavilions from Brazil, China, France, Japan, Korea, Argentina, India, USA, and
Portugal. A special area for biopharmaceutical manufacturing sector, BioTech
HotSpot, exhibited some of the world's leading suppliers in this burgeoning
market. During the course of CPhI Worldwide 2006 there was a comprehensive
programme of showcases from many of the exhibitors. These free sessions
presented an opportunity to find out more from many of the leading
practitioners in the pharmaceutical manufacturing industry. The third edition
of CPhI Innovation Awards gave the visitors an opportunity to listen to the
final presentations by the short listed nominees in advance of the judges deliberations.
The winners were announced at a special reception on the evening of 3rd
October.
Eminent people from different countries like Brazil, China, France, Germany,
Japan, Switzerland, Korea, Argentina, India, USA etc visited their booth and
showed keen interest in PI Fine Chem. Their participation in the coveted event
helped us in highlighting their presence in the international Fine chemicals
market, in building new business contacts and in strengthening the old ones. In
Addition to this it also gave us valuable insight into the ongoing advanced
developments in fine chemicals 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 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.39.96 |
|
UK Pound |
1 |
Rs.78.66 |
|
Euro |
1 |
Rs. 63.31 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
NO |
|
--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, we have no basis upon which to
recommend credit dealings |
No Rating |
|