MIRA INFORM REPORT

 

 

 

Report Date :

21.04.2008

 

IDENTIFICATION DETAILS

 

Name :

ATUL LIMITED

 

 

Formerly known as:

ATUL PRODUCTS LIMITED

 

 

Registered Office :

Ashoka Chambers, Rasala Marg, Eills Bridge, Ahmedabad, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

11.12.1975

 

 

Com. Reg. No.:

002859

 

 

CIN No.:

[Company Identification No.]

L99999GJ1975PLC002859

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AMMA00199D

 

 

PAN No.:

[Permanent Account No.]

AABCA2390M

 

 

Legal Form :

Public Limited Liability Company.  The company's Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing of Dyestuff Chemicals, Drugs and Pharmaceuticals, Cresol, Sodium Sulphite, Sodium Sulphate, Soda Ash, Gypsum, Resorcinol, Aslurry, Spent Acid, Dinitro Diphenye, Sulfone, Metanilic Acid, Heavy Duty Break Fluid, Para Cand Panisaldehyde.

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

USD 12000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old established company having satisfactory track.  The company is a member of Lalbhai Group, a diversified group.  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

 

Registered Office :

Ashoka Chambers, Rasala Marg, Eills Bridge, Ahmedabad, Gujarat, India

Tel. No.:

91-79-26423706/26427520/26449294

Fax No.:

91-79-26404111

E-Mail :

wk.ag@atul.co.in

wk.ar@atul.co.in

wk.cl@atul.co.in

fi@atul.co.in

sec@atul.co.in

ahd@atul.co.in

Website :

http://www.atul.co.in

 

 

Head Office/ Plant 1/

Correspondences Address:

Colours Division Post Atul, Valsad – 396020, Gujarat, India

Tel. No.:

91-2632-233261/233265

Fax No.:

91-2632-233619

E-Mail :

sec@atul.co.in

ahd@atul.co.in

corporate.office@atul.co.in

wk.ar@atul.co.in

Website:

http://www.atul.co.in

 

 

Plant 2:

Ankleshwar, District Bharuch, Gujarat, India

 

 

Mumbai Office:

310 –B, Veer Savarkar Marg, ( Cadell Road), Adjacent to Prabhadevi Telephone Exchange, Dadar (West), Mumbai – 400028, India

 

 

Factory :

297, GIDC Industrial Estate,  Ankleshwar - 393 002, Gujarat, India

 

 

Divisional Marketing Departments

Agrochemicals division

East Site, Atul - 396 020, Gujarat, India

E-Mail:  wk.ag@atul.co.in

Tel. No.:91-2632-233261

Telefax: 91-2632-233024 / 233619

 

Aromatics division

Atul - 396 020, Gujarat, India

Tel. No.:91-2632-233261

Telefax: 91-2632-233633 / 233349

E-Mail:  wk.ar@atul.co.in

 

Bulk chemicals and intermediates division

East Site , Atul - 396 020, Gujarat, India

Tel. No.:91-2632-233261 / 233021

Telefax: 91-2632-233375 / 233619

E-Mail:  wk.bl@atul.com.in

 

International, colours DIVISION:

East Site , Atul - 396 020, Gujarat, India

Tel. No.:91-2632-233261

Telefax: 91-2632-233384 / 233619

E-Mail:  wk.cl@atul.com.in

 

National, colours division

West Site , Atul - 396 020, Gujarat, India

Tel. No.:91-2632-233291 / 92 / 233617 / 233618

Telefax: 91-2632-233667 / 233122

E-Mail:  wk.cl@atul.com.in

 

Pharmaceuticals and intermediates division

PP Site, Atul - 396 020, Gujarat, India

Tel. No.:91-2632-233621 / 233622

Telefax: 91-2632-233639

E-Mail:  wk.pl@atul.co.in

 

Polymers divisions

PP Site, Atul - 396 020, Gujarat, India

Tel. No.:91-2632-233621 / 233622

Telefax: 91-2632-233639

E-Mail:  wk.po@atul.co.in          

 

 

Overseas Offices:

Atul Americas Inc.,

11121, Carmel Commons Boulevard, Suit 460, Charlotte, North Carolina - 28226, USA

Tel. No.:91-1-704-540 8460

Telefax: 91-704-540 8461

E-Mail:  aal@bellsouth.net

 

Atul Europe Limited

1st Floor, Office Suite B, Summerfields Village Centre, Dean Row Road, Wilmslow SK92TB, UK

Tel. No.: 91-44-625-539 209

Telefax: 91-44-1625-529 484

E-Mail:  Atul.Europeltd@btinternet.com

 

Atul China

Rm 303A, Building F, Dartguild-hall, No - 20, Guan Gong Dian, Chao Yang District, Beijing 100 020, China

Tel. No.:  91-86-10-650 22431 / 650 22213

Telefax: 91-86-10-650 85647

E-Mail:  atul@cgw.net.cn

 

 

Branches:

Located At :

  • Ahmedabad
  • Kolkata
  • Chennai
  • Delhi
  • Erode
  • Kanpur
  • Ludhiana
  • Mumbai
  • Secunderabad
  • Solapur
  • Surat
  • Tirupur
  • Udaipur

 

 

DIRECTORS

 

Name :

Mr. Arvind N. Lalbhai

Designation :

Chairman

 

 

Name :

Mr. Sunil S. Lalbhai

Designation :

Managing Director and Chief Executive Officer

 

 

Name :

Mr. Nusli N. Wadia

Designation :

Director

 

 

Name :

Mr. R. A. Shah

Designation :

Director

 

 

Name :

Mr. G. S. Patel

Designation :

Director

 

 

Name :

Dr. S. S. Baijal

Designation :

Director

 

 

Name :

Mr. Manu R. Shroff

Designation :

Director

 

 

Name :

Mr. Bansi S. Mehta

Designation :

Director

 

 

Name :

Mr. Hasmukh S. Shah

Designation :

Director

 

 

Name :

Dr. H. Kaiwar

Designation :

Director

 

 

Name :

Mr. J. L. Shah

Designation :

Director

 

 

Name :

Mr. S. M. Datta

Designation :

Additional Director

 

 

Name :

Mrs. Shalini S. Shah

Designation :

(Nominee of ICICI Bank Limited)

 

 

Name :

Mr. Samveg Arvind Lalbhai

Designation :

Managing Director

 

 

Name :

Mr. K Aparajithan

Designation :

Additional Director

 

 

Name :

Mr. M. K. Tandon

Designation :

(Nominee of UTI w.e.f. 28/01/2002)

 

 

KEY EXECUTIVES

 

Name :

Mr. T. R. Gopi Kannan

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders (As on 31.03.2007)

 

No. of Shares

Percentage of Holding

Promoters Holding

 

 

Promoters

10895764

36.733%

Non-Promoters Holding

 

 

Mutual Funds and UTI Administrator of the specifield undertaking of UTI

2421327

8.163%

Banks, Financial Institutions, Insurance Companies etc.

2628133

8.861%

Foreign Institutional Investors [FIIS]

4077671

13.747%

Others

 

 

Private Corporate Bodies

3155721

10.639%

NRIs/OCBs

63236

0.213%

State Government

336

0.001%

Indian Public

6419545

21.643%

 

 

 

Total

29661733

100.000%

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Dyestuff Chemicals, Drugs and Pharmaceuticals, Cresol, Sodium Sulphite, Sodium Sulphate, Soda Ash, Gypsum, Resorcinol, Aslurry, Spent Acid, Dinitro Diphenye, Sulfone, Metanilic Acid, Heavy Duty Break Fluid, Para Cand Panisaldehyde.

 

 

Products :

Item Code No.

Description

3204

Synthetic Organic Colouring Matter

291200

Para Anisic Aldehyde

390730.09

Epoxy Resins

Imports :

 

Countries :
  • Germany
  • U.K.
  • USA

Terms :

 

Purchasing :

L/C, D/A or D/P

 

 

 

 

 

 

 

PRODUCTION STATUS     (As on 31.03.2007):-

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Cresol

MT

5000

12000

4078

Toluidines

MT

-

-

-

Sodium Sulphite

MT

7350

12000

11019

Sodium Sulphate

MT

1160

2200

-

Soda ash

MT

1310

-

-

Gypsum

MT

5900

-

-

Resorcinol(b)

MT

150

-

-

LABASA (Accid Slurry) (b)

MT

4000

-

-

Spent acid

MT

2000

-

-

Para Cresidine

MT

-

420

344

Para Anisic Aldehyde

MT

-

6000

3228

Para Anisic Alcohol

MT

-

700

704

Dyestuff (b and d)

MT

11537

19996

9505

Chemicals (other than fertilizers) (b and d)

MT

125004

228202

68284

Drugs and Pharmaceuticals (b and d)

MT

722

170

21

Sulpha drug intermediate

MT

1830

6525(c)

120

2,6 – Dichloraniline

MT

20

Nil(e)

-

Bulk Drug and Drug intermediate

MT

1150

57(c)

23

Pharmaceuticals intermediate (PHIN)

MT

320

300

57

Sulpha methyl phenazole sodium

MT

13

Nil(e)

-

Pyrazole base

MT

107

Nil(e)

-

UF/MF/Pfdicyandiamide resins

MT

3250

6600

785

Epoxy resins

MT

1948

3750

6243

Hardners and auxilliaries

MT

1000

1215

3256

Hardners (inermediates)

MT

230

485(c)

-

Formaldenhyde

MT

30000

20000

13592

Hexamine (tech)

MT

1257

1800

-

Bisphenol – A

MT

900

1500

-

Vinyl ester resins

MT

450

450

-

Polyaminoamide and their intermediates

MT

1940

1940

160

Sulphanilic acid

MT

300

Nil(f)

-

Bisphenol – S and intermediate chemicals

MT

200

40

-

Ketone formaldehyde resins and Sulphomide formaldehyde resins

MT

250

100

-

Polyurethane

MT

-

-

-

Sulpha bulk drugs for export (g)

MT

-

-

638

 

 

GENERAL INFORMATION

 

No. of Employees :

4315

 

 

Bankers :
  • State Bank of India
  • Bank of Baroda
  • Bank of India
  • UCO Bank
  • Credit Lyonnais
  • Dena Bank
  • Karur Vysya Bank
  • State Bank of Saurashtra
  • ICICI Bank Limited
  • Axis Bank
  • Export import Bank of India

 

 

Facilities :

(Figures are in Rupees Millions)

Secured loan

31.03.2007

 

 

Bank of Baroda  - Term Loan (note 8 below)

-

Banks, against hypothecation of inventories and book debts

 

Exim Bank (Note 3 below)

32.637

Axis Bank Limited – (note 4 below)

-

Axis Bank Limited (note 9 below)

13.447

Axis Bank Limited – Foreign Currency (note 9 below)

-

Axis Bank Limited-Term Loan (note 8 below)

112.500

Bharat Overseas Bank Limited-Foreign Currency Loan  (note 8 below)

-

Bharat Overseas Bank Limited-Foreign Currency Loan  (note 8A below)

170.001

Bharat Overseas Bank Limited (note 8 below)

23.073

ICICI Bank (Note 2 below)

14.233

Housing Developments Finance Co-op Limited Term Loan (note 5)

28.430

Housing Developments Finance Co-op Limited Term Loan (note 5)

-

Housing Developments Finance Co-op Limited Corporate Loan (note 5)

50.000

Housing Developments Finance Co-op Limited Corporate Loan (note 10)

37.800

The Karur Vysya Bank Limited- Term Loan (note 6 )

-

The Karur Vysya Bank Limited- Term Loan (note 8)

50.050

Infrastructure Leasing and Financial Services Limited (note 7)

-

HDFC Bank

28.125

Bank of India MCBB – FC Loan (Note 8)

137.287

Bank of India  Newyork FC Loan (note 8)

136.219

LIC of India – Term Loans (Note 8)

140.000

Syndicate Bank – Term Loan (Note 8)

-

State Bank of Hyderabad – Corporate (note 8)

74.994

Bank of India  - Foreign Currency Loan (Note 8A)

295.128

Exim Bank – Rupee Term Loan (Note 8)

230.001

State Bank of Hyderabad – Rupee Term Loan (note 8A)

50.315

State Bank of India (note 7)

132.448

State Bank of Indore – Rupee Term Loan (note 8)

199.988

State Bank of Travncore – Foreign Currency Loan (Note 8A)

87.180

Axis Bank Limited – Agri Loan (Note 11)

5.833

HDFC Bank Pledge of Equity shares

-

HDFC Bank Pledge of 39775 Equity shares of India

14.530

HDFC Bank

-

HDFC Bank,

10.898

IDBI Bank Limited

-

Banks-Working Capital Loans(note 1)

Cash Credit                                            107.071 

Working Capital Demand Loan                          -

FCNRB (DL)                                           387.335

Packing Credit                                        538.146

Bills Discounting                                       81.604

Interest accrued and due                                   -

 

 

 

 

 

 

 

1114.156

Total

3189.273

 

 

 

Notes:

1.       Secured by hypothecation of tangible current assets (other than movable machinery), namely raw-materials, finished and semi-finished goods, inventories and, book-debts of the company as a whole and also secured by second and subservient charge on Company's immovable assets to the extent of individual banks' limit as mentioned in joint consortium documents.

 

2.       Secured by exclusive charge by way of hypothecation of vehicles purchased thereunder.

 

3.       Secured by first pari passu charge by way of hypothecation of all the movable fixed assets and mortgage of the entire immovable properties of the company, present and future, excluding specific assets with exclusive charge and second charge on the entire current assets of the company, present and future.

 

4.       Secured by exclusive first hypothecation charge on the boiler and auxiliary equipments and pari passu second charge on the fixed assets of the company.

 

5.       Secured by exclusive first charge on: (i) guest house, club house and 27 residential quarters situated at village Gadkhol,Tal. Ankleshwar, Dist. Bharuch (ii) 15 dwelling units on land situated village Chanvai, Atul, Tal. and Dist. Valsad and first pari pass charge on balance immovable and movable properties of the company, subject to prior exclusive charges in favour of lenders.

 

6.       Secured by first pari passu charge on all assets and properties of the company, both present and future, save and except the properties exclusively charged in favour of certain lenders for their financial assistance and the properties exclusively charged to the banks for their working capital loans / specific loans / term loans etc. and also second pari passu on the entire current assets of the company.

 

7.       Secured by first pari passu charge by way of mortgage on entire immovable properties and by hypothecation of entire movable fixed assets of the company present and future, excluding assets with exclusive charge, if any and second pari passu charge on the entire current assets of the company.

 

8.       Secured by first pari passu charge on the fixed assets of the company as a whole, both present and future, excluding specific assets with specific charge.

 

8A To be Secured by first pari passu charge on the fixed assets of    

      the company as a whole, both present and future, excluding 

      Specific assets with specific charge.

 

9.       Secured by a first pari passu charge over the present and future immovable and movable (save and except current assets and specific charge $n specific assets) properties of the borrower situated at Atul and Ankleshwar.

 

10.   Secured by exclusive charge'on Office Premises (including Land and Building) situated at Cadastral Survey Nos.1/92 and 3/92 of Mahim Division, Veer Sawarkar Marg, Prabhadevi, Murnbai , both present and future.

 

11.   Secured by hypothecation of the standing crop of patchouli in the Co's Farms and also to be secured by pari passu first charge on the existing and future fixed assets of the company, other than exclusively charged assets

 

UNSecured loan

31.03.2007

 

(Rs in millions)

Fixed deposits including interest on cumulative deposits

135.069

Sales tax deferment under govt. of Gujarat new sales tax incentive scheme for industries

1.966

Companies

2.928

ICICI Bank – Short term loan

---

HDFC Bank – Short term loan

139.488

State Bank of Saurashtra – Short term loan

130.770

A Company – ECB Loan

---

 

 

Total

490.221

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

Dalal and Shah

Chartered Accountants

 

Cost Auditors

R. Nanabhoy and Company

Chartered Accountants

 

 

Associates :
  • Amal Products Limited

            Atul - 396 020, Gujarat

            Tel. No. 91-2632-233663 / 234330

            Telefax :  91-2632-233402 / 233619

            E Mail :  wh.amal@atul.co.in

 

  • ATRo Limited

            Atul - 396 020, Gujarat

            Tel. No. 91-2632-233261 / 331

            Telefax :  91-2632-233024 / 233619

 

  • Gujarat Synthwood Limited

            Atul - 396 020, Gujarat

            Tel. No. 91-2632-233401 / 233654

            Telefax :  91-2632-233619

            E Mail :  w.synthwood@atul.co.in

 

  • Arvind Mills Limited
  • Arvind Intex Limited
  • Arvind Polycot Limited
  • Arvind Clothing Limited
  • Arvind Cotspin Limited
  • Arvind Fashions Limited
  • Arvind Growel Limited
  • Arvind Overseas Limited
  • Arvind Products Limited
  • Anil Starch Products Limited
  • Amol Dicalite Limited
  • Anup Engineering Limited
  • Anagram Securities Limited
  • Amtrex Appliances Limited
  • Lalbhai Realty Limited

 

 

Subsidiaries :
  • Ameer Trading Corporation Limited
  • Anusandhan Investments
  • Sharik Investment Private Limited
  • Atul Americas Inc.
  • Atul Europe Limited
  • Atul Deutchland GMBH
  • Atul International Trading Company (Shangai) Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

8000000

Cumulative Redeemable Preference Shares

Rs. 100/- each

Rs. 800.000 millions

80000000

Equity Shares

Rs. 10/- each

Rs. 800.000 millions

 

 

 

 

 

Total

 

Rs. 1600.000 millions

 

Issued  Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

29691780

Equity Shares of

Rs. 10/- each

Rs. 296.918 millions

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

29661733

Equity Shares of

Rs. 10/- each

Rs. 296.617 millions

Add:

Forfeited Shares (amount paid up)

 

Rs. 0.131 million

 

 

 

 

 

Total

 

Rs. 296.748 millions

 

Notes:

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

296.748

296.700

296.748

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2697.698

2433.300

1704.363

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2994.446

2730.000

2001.111

LOAN FUNDS

 

 

 

1] Secured Loans

3189.273

3074.100

3140.423

2] Unsecured Loans

490.221

414.000

414.361

TOTAL BORROWING

3679.494

3488.100

3554.784

DEFERRED TAX LIABILITIES

154.733

0.000

243.924

 

 

 

 

TOTAL

6828.673

6218.100

5799.819

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2394.876

2312.400

2322.965

Capital work-in-progress

247.213

420.700

122.354

Advance Against Capital Exp.

306.548

0.000

44.378

 

 

 

 

INVESTMENT

651.291

651.500

690.296

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1723.246
2092.800
1712.215

 

Sundry Debtors
2588.997
2223.700
2026.313

 

Cash & Bank Balances
371.332
137.900
142.506

 

Other Current Assets
5.746
0.000
7.524

 

Loans & Advances
734.282
731.100
625.276

Total Current Assets
5423.603

5185.500

4513.834

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
1951.146
2018.500
1580.926

 

Provisions
243.712
333.500
313.082

Total Current Liabilities
2194.858

2352.000

1894.008

Net Current Assets
3228.745

2833.500

2619.826

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

6828.673

6218.100

5799.819

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

9108.346

10060.100

7101.167

Other Income

104.359

0.000

0.000

Total Income

9212.705

10060.100

7101.167

 

 

 

 

Profit/(Loss) Before Tax

263.710

829.400

187.681

Provision for Taxation

7.170

(13.500)

25.070

Profit/(Loss) After Tax

256.540

842.900

162.611

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

4638.852

4145.403

3408.554

 

Commission Earnings

0.000

0.000

0.000

 

Other Earnings

0.000

0.000

0.000

Total Earnings

4638.852

4145.403

3408.554

 

 

 

 

Imports :

 

 

 

 

Raw Materials

1053.904

1331.924

0.000

 

Stores & Spares

0.013

5.497

0.000

 

Capital Goods

16.741

13.268

0.000

 

Others

0.000

0.000

939.327

Total Imports

1070.658

1350.689

939.327

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods Sold

5122.195

0.000

0.000

 

Manufacturing Expenses

1735.063

0.000

0.000

 

Administrative Expenses

670.738

0.000

0.000

 

Interest

282.156

0.000

0.000

 

Depreciation & Amortization

305.867

0.000

0.000

 

Other Expenditure

782.520

10054.200

6913.486

Total Expenditure

8898.539

10054.200

6913.486

 

 

QUARTERLY RESULTS

 

 

PARTICULARS

 

30.06.2007

1st Quarter

30.09.2007

2nd Quarter

31.12.2007

3rd Quarter

 

 

 

 

Sales Turnover

2049.800

2502.100

2857.900

Other Income

38.500

84.200

44.400

Total Income

2088.300

2586.300

2902.300

Total Expenditure

1994.600

2280.700

2659.500

Operating Profit

93.700

305.600

242.800

Interest

76.700

69.200

87.700

Gross Profit

17.000

236.400

155.100

Depreciation

71.600

63.500

85.200

Tax

1.500

2.100

2.100

Reported PAT

(44.100)

160.300

70.700

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Debt Equity Ratio

1.28

1.55

1.39

Long Term Debt Equity Ratio

0.82

1.04

1.13

Current Ratio

1.45

1.44

1.68

TURNOVER RATIOS

 

 

 

Fixed Assets

1.39

1.31

1.14

Inventory

5.06

4.62

4.42

Debtors

4.01

4.08

3.81

Interest Cover Ratio

2.03

2.40

1.72

Operating Profit Margin (%)

9.30

11.53

9.11

Profit Before Interest and Tax Margin (%)

6.13

8.26

5.41

Cash Profit Margin (%)

6.18

8.51

5.66

Adjusted Net Profit Margin (%)

3.01

5.24

1.96

Return on Capital Employed (%)

9.29

12.42

7.34

Return on Net Worth (%)

10.43

20.07

6.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY:

 

The company was incorporated on 5th September 1947 at Ahmedabad in Gujarat under the name and style of Atul Products Limited having company Registration Number 2859 and subsequently the name of the company was changed to the present.

 

Subject was set up by Mr. Kasturbhai Lalbhai as a related diversification and commenced the manufacture of dyes and dye intermediates, agro-chemicals, aromatics like para-anisaldehyde, epoxy resins and pharma intermediates in 1947 at Valsad

 

In 1988-89 Gujarat Aromatics was merged with the company. Subject has promoted two manufacturing companies, namely Atic Industries in 1956 and Cibatul in 1960. An atic industry which was promoted in collaboration with ICI, UK manufactures Vat and other dyes and sulphuric acid. While the Cibatul which was promoted in collaboration with Ciba-Geigy, manufactures sulphur drug intermediates, resins and auxiliaries. In 1985, the company transferred its investments in Atic and Cibatul to a wholly owned subsidiary, Ameer Trading Corporation and later in 1995-96 this Atic Industries was integrated with the company.

 

In 1986, the company took over the management of Piramal Rasayan through its 100% subsidiary and subsequently changed the name of the company to Amal Rasayan.

 

Subject has also promoted Gujarat Synthwood to manufacture PVC Foam sheets. In 1995, the company commissioned para-cresidine and para anisicaldehde manufacturing plants.

 

In 1995-96, the company was implementing a project to manufacture non-benzidine dyestuffs with a capacity of 1700 tpa and the company has commissioned the project for manufacture of para cresol in 1997-98.

 

In 1996-97, the company issued 50,000 14% cumulative redeemable preference shares of Rs.100/- each amounting to Rs.5 millions.

 

Subject has been accredited with ISO 9002 certification for agro chemicals and pharmaceuticals division from TUV Bayern, Germany in 1996-97.

 

In 2000-01, the company has initiated the plan of installation of third fluidised boiler in order to become self reliant in captive power generation.

 

Subject is a part of Lalbhai Group manufacturing a wide range of chemicals, dyes, dye intermediates and pigments alongwith agrochemical, and pharmaceuticals. The group has grown from one textile mill in 1908 to become an international business conglomerate today.  Currently, the group has strong presence in textiles, chemicals, engineering, finance, white goods and real estate. 

 

1947     The Atul Products Limited incorporated.

Lederle Laboratories (India) Limited incorporated

 

1952     Sulphur Black and acid / direct dyes plants inaugurated by Jawaharlal Nehru, the then Prime Minister of India.

Two 11 t/h Coal Fired Steam Generating System commissioned (replaced by high pressure Steam Generating System in 1990).

1 MW Steam Turbine Set commissioned (replaced by 2.5 MW Back Pressure Steam Turbine for co-generation in 1977).

477000 m3 Weir No. 1 near Atul in River Par commissioned.

 

1955     Atic Industries Limited incorporated

 

1956     Vat dyes plant commissioned.

11 t/h Coal Fired Steam Generating System commissioned (replaced by High Pressure Steam Generating System in 1990).

4 MW Steam Turbine commissioned

 

1959     Vat dyes plant expanded.

 

1960     Sulphuric acid and oleum plant commissioned.

Cibatul Limited incorporated.

 

1961     1364000 m3 Weir No. 2 near Panchalai, in River Par commissioned.

 

1962     Lederle Laboratories (India) Limited renamed Cyanamid India Limited

 

1963     BON acid plant commissioned.

 

1964     Chlor-alkali (mercury cell) plant commissioned.

 

1965     Chlorosulphonic acid plant commissioned.

Dicalcium phosphate plant commissioned.

Naphthalene intermediates plant commissioned.

Vat dye intermediates plant commissioned.

 

1966     Urea formaldehyde plant commissioned.

Sulpha drug intermediates plant commissioned.

Two 34 t/h Oil Fired Steam Generating System commissioned.

 

1968     Fast colour bases plant commissioned.

Epoxy resin plant commissioned.

Two 10 t/h Oil Fired Steam Generating System commissioned.

 

1969     Reactive dyes plant commissioned.

 

1970     Anthraquinone plant commissioned.

Vat dyes plant expanded.

Phosgene plant commissioned.

 

1972     Formaldehyde plant commissioned.

 

1974     Aluminium chloride plant commissioned.

Anthraquinone disperse dyes plant commissioned.

Azo disperse dyes plant commissioned

 

1976     Beta naphthol plant commissioned

 

1978     Vat dyes plant expanded.

Two 18 t/h Coal Fired Steam Generating System with 2 MW Back Pressure Turbine set for co-generation commissioned.

 

1980     Reactive dyes plant expanded.

Reactive dye intermediates plant commissioned.

Sulphuric acid and oleum plant commissioned.

 

1982     Central effluent treatment plant for Atul complex commissioned.

 

1985     Monochlorobenzene plant commissioned.

The Atul Products Limited and Gujarat Aromatics Limited (Cresols) merged.

The Atul Products Limited gained management control of Amal Rasayan Limited

1200 kVA D G Set commissioned.

 

1986     8 t/h Coal Fired Steam Generating System commissioned

 

1987     Diuron plant commissioned.

 

1988     Disperse dye-intermediates plant commissioned.

Sulphur dyes plant commissioned.

The Atul Products Limited renamed Atul Products Limited

2500 m3/d Effluent Treatment Plant commissioned.

 

1989     Multi-purpose pilot plant commissioned.

 

1990     Beta naphthol plant capacity enhanced.

Sulphuric acid plant capacity enhanced.

Two 34 t/h Coal Fired High Pressure Steam Generating System commissioned.

5 MW Extraction cum Back Pressure Steam Turbine set for co-generation commissioned.

 

1991     Dicalcium phosphate plant capacity enhanced.

Hazardous Waste Incinerator for solid/liquid Phase-I commissioned.

 

1992     Upgraded effluent treatment facilities commissioned.

9600 m3/d Effluent Treatment plant commissioned.

 

1993     Chlor-alkali (membrane cell) plant commissioned.

New acid/direct dyes plant (phase 1) commissioned.

Sulphur Black plant capacity enhanced.

 

1994     BON acid plant capacity enhanced

Dinitrochlorobenzene plant capacity enhanced

Diuron plant upgraded

Vat dyes capacity enhanced

 

1995     Chlorosulphonic acid plant capacity enhanced.

New acid/direct dyes plant (phase 2) commissioned.

Atul Products Limited restructured into business units.

Atic Industries Limited merged into Atul Products Limited

Para anisic aldehyde plant commissioned.

45 t/h Coal Fired Steam Generating System with 5.6 MW Back Pressure Steam Turbine Set for co-generation commissioned.

 

1996     Amal Rasayan Limited renamed Amal Products Limited

Atul Products Limited renamed Atul Limited

Herbicides capacity enhanced.

Hazardous Waste Incinerator for liquid Phase-II commissioned.

 

1997     H-acid plant of Amal Products Limited commissioned.

Agrochemicals business of Cyanamid India Limited spun off to form Cyanamid Agro Limited

Cyanamid India renamed Wyeth Lederle Laboratories Limited

4 kilometre pipeline laid for discharge of treated effluent.

 

1998     Para cresol capacity enhanced.

18 MW Steam Turbine set commissioned.

 

1999     Herbicides capacity enhanced.

AtRo Limited incorporated.

Cibatul Limited merged into Atul Limited

 

 

The company has joint ventures with the following :

Agrimore Limited

Atul - 396 020, Gujarat

Tel. No.: 91-2632-233713 / 484 / 575

 

Cynamid Agro Limited

Nyloc House, 254 / D-2, Dr. Annie Besant Road, Mumbai, Maharashtra

Tel. No.: 91-22-2493 5211

Telefax: 91-22-2495 0237

 

Wyeth Lederle Limited

Nyloc House, 254 / D-2, Dr. Annie Besant Road, Mumbai, Maharashtra

Tel. No.: 91-22-2493 5211

Telefax:  91-22-2495 0237

 

The company operates through six business divisions at its Atul and Ankleshwar sites and a global network of associates and subsidiaries.

 

 

PROFITABILITY: 

 

The PBT from operations showed a small decline of about 4% to Rs.314.200 Millions in spite of growth in sales of 10% including exports growth of 13%. The lower profitability was mainly due to higher input prices which more than off set the effect of higher sales, higher efficiencies and lower employee cost. The overall PBT however showed a steep decline from Rs.830.100 Millions in the previous year to Rs.263.700 Millions in the current year, mainly bepause of exceptional / non-recurring items which were Rs.501.200 Millions in the previous year primarily arising from profit on sale of long term trade investment; such items stood at Rs 50.500) Millions in the current year mainly on account of VRS

 

 

FINANCE: 

 

The interest and finance charges (net) for the year was Rs282.200 Millions compared to Rs.291.000 Millions during the previous year - a decrease of - 3% as compared to sales growth of 10%. The net interest to sales ratio, as a result decreased to 3.06% from 3.47% last year. In the current year, the benchmark interest rates like bank PLR's and LIBOR continued to rise. Efforts are on to shrink the interest costs as a % of sales through better working capital norms and utilization of assets.

 

Loans taken have been used for the purposes for which they have been sanctioned by the respective banks or financial institutions.

 

The company takes forward contracts and uses other basic derivative products from time to time as permitted by RBI to cover its imports and exports. These are purely based on the actual exposure or likely future anticipated export receivables, but never in the nature of speculation. The net effect of these is accounted as per the guidelines of the Institute of Chartered Accountants of India.

 

The Board wishes to thank the Banks and Financial institutions for their continued support in meeting various long term, short term and emerging credit needs.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS 

Overview 

 

The sales grew from Rs.8140.000 Millions to Rs.8950.000 Millions, a rise of 10%. However, the PBT from operations dropped from Rs329.000 Millions to Rs.314.000 Millions. Domestic sales grew by 7% whereas export by 13%. The fixed costs were stable. The net cash-flow from operations improved from Rs. 268.000 Millions to Rs732.600 Millions mainly on account of significant inventory reduction, particularly in the colors division.

 

The company expanded the capacities of a few plants. It added new products to its range. A major project was undertaken by the Polymers Division to expand the capacities of epoxy resins. The process of seeking new customers, improving productivity apd the induction of new managers at various levels continued.

 

The high input costs, mainly on account of the oil prices, continued to impact the bottom line adversely. To guard

against the impact of FTA against Thailand, the company represented to the Government successfully and secured some relief in the import duty on the corresponding raw materials

 

 

Industry structure and developments :

 

The 300 + products manufactured by the Company are mainly used by Agriculture Industry, Fragrance and Flavours Industry, Tyre Industry, Textile Industry, Paper industry, Pharmaceutical Industry, Aerospace Industry, Construction Industry, Paints Industry and others.

 

Generally, many products belonging to Chemical Industry are shifting to Asia, particularly China and India. The base of some of the user industries is also shifting to Asia. Such changes are posing pressure on prices, but are also providing new growth possibilities.

 

 

Review of operations :

 

Agrochemicals (AG) and colours (CO) showed decline in their contributions and profitability. Contributions came down, on account of pressure on selling prices and input cost increase. The redeeming feature of the CO business was a significant reduction in working capital as a result of a very special focus.

 

The performance of Aromatics improved substantially on the back of further growth in volume and better efficiencies. In case of Bulk Chemicals.and Intermediates the growth in volume helped neutralize the adverse impact of prices. Pharma Intermediates remained steady on account of continued technology related issues on the new investment. The performance of Polymers improved due to introduction of value added products and greater geographical reach.

 

The company continued with its endeavour to seek global leadership in chosen products in volume, manufacturing efficiency and employee productivity. Certain organizational changes were made in line with the emerging requirements. It continued the thrust to improve its environment protection facilities.

 

 

 

 

Opportunities and threats :

 

The user industries, generally, are growing well. The existing products of the company as also the proposed products are expected to find ready market. Many products in developed countries are now being sourced from China and India and the company has taken several steps to seize these opportunities.

 

The appreciation of Rupee is causing significant erosion to the sales value and margins tor the Company as exports forms a huge part of our sales. While all possible steps are taken to hedge against the risks, the residual risks and the level of uncertainty are threats to the profitability of the operations.

 

Prices of finished products are likely to remain under pressure. Prices of raw materials may go up as many of them are based on crude oil. The Company is constantly taking up improvement projects to mitigate the impact of

Such movements in prices.

 

 

Risks and concerns :

 

The company is in the business of chemicals, prices of some of these chemicals are cyclical and remain low for

long periods. Its exports which is currently a little over 50% of its sales (and the % may rise further) has the inherent risk of fluctuations in the exchange rates.

 

The company has large manufacturing facilities. Some of the plants are obsolete and will require new technologies and fresh investments to upgrade. Introduction of new technologies may not always be immediately successful which in turn may impact the ROCE of the Company.

 

The company has been more than 50 years in business. It is endeavouring and is confident to face the threats and manage risks successfully. It is strengthening its management through recruitment and by training and development. It is reorganizing to enhance effectiveness.

 

 

Outlook :

 

The products of company find application in many major industries. With such industries generally growing, the future of chemical Industry remains secure. Having taken several concrete steps for technology up gradations and productivity improvements, as also towards a more effective market presence, the company has positioned itself well to take advantage of these opportunities and the company therefore feels confident to achieve sustainable growth in the coming years..

 

The company will further increase its global market share in its chosen products. It will debottleneck and expand its manufacturing capacities. It will introduce new value added products to increase its rate of contribution. It will also look for opportunities for synergistic acquisitions for inorganic growth.

 

The demand on Chemical Industry to take all actions to preserve the environment is increasing and will increase

further. The company has over the years invested heavily in creating such facilities. It is strengthening its R and D and Technology teams to play a very critical and responsible role.

 

The challenge lies in retaining and recruiting employees with the right attitude and skills. Empowerment of such employees, along with apposite business processes and monitoring systems will ensure sustainable growth. This is the endeavour of the company.

 

 

Fixed Assets:

 

 

Contingent Liabilities :(31.03.2007- Rs. in Millions)

Disputed excise demands – matter under appeal

85.917

Disputed customs demands – matter under appeal

23.518

Disputed watercharges – matter under appeal

533.845

Claims against the company not acknowledged as debts

19.569

Income-tax demands including –matter under appeal

299.787

Sales tax matter under appeal

1.908

Guarantees given by the company to bank and financial institute on behalf of the third parties.

9.174

 

Notes: Future cash outflow in respect of (a) to (f) above are determinable on receipt of judgements/decisions pending with various forums/authorities.

 

Charge by way of Hypothecation of Tangible Current assets (other than moveable machinery), namely raw materials, finished and semi-finished goods, inventories and book debts of the company as a whole any also charge by second and subservient charge on companies immovable assets to the extent of individual banks limit as mentioned in joint consortium documents and also extends to guarantee given by the bankers.

 

 

WEBSITE DETAILS:

 

Infrastructure At Atul

Subject has made significant contributions to the development of infrastructure in Atul and nearby villages. The company has already built over 1000 houses, 2 schools, a medical centre, a sports complex, an open air theatre and a community centre.

 

Subject is self-sufficient in its requirement of electricity achieved through three state-of-the-art captive power plants. The company is also in the process of renewing its fifty year water agreement with the government of Gujarat.

 

 

Captive Power Generation

Atul Complex is self sufficient in meeting continuous and uninterrupted steam demand for all its chemical manufacturing processes and it also meets more than 95% of electricity demand for its housing colonies.

 

At Atul Complex, there are three captive power plants consisting of coal/oil fired boilers and turbo generator sets having capacity ranging from 2 MW to 18 MW. Over and above this, diesel generator sets have been installed so as to facilitate the start up from total black out

 

All boilers and power generation sets have been designed to meet the stringent pollution norms as fixed by Gujarat Pollution Control Board.

 

 

 

Treatment Storage Disposal Facility (TSDF)

Subject has developed a site for disposal of solid wastes by land filling. The site was selected on the basis of a technical Environment Impact Assessment (EIA) study done by National Productivity Council (NPC). NPC also has given the detailed design of the site. On the basis of this technical EIA and the design, site for TSDF was approved by the state level committee and Gujarat Pollution Control Board.

 

Snapshot of Facilities

The dimensions of the infrastructure facilities at Subject manufacturing sites at Atul and Ankleshwar are given below.

 

Description

Units of Measurement

Atul Site

Ankleshwar Site

 

 

 

 

Land Area

Acres

1250

33

Effluent Drainage System

Kilometres

65

GIDC drainage system

Effluent Treatment Plants

Cubic Metres/Day

30000

2500

Incinerators

Numbers

4

NIL

Captive Power Plant (installed capacity)

Megawatts

29

2.4

Electricity Consumption

Million Units/Month

13

1

Steam Generation (installed capacity)

Metric Ton/hour

217

32

Water Storage

Cubic Metres

2 million

1450

 

Subject is a member of Lalbhai Group, one of the oldest business houses of India, with interests mainly in textiles and chemicals. The Group is strongly committed to serve the society in the fields of education, health as well as culture.

 

Incorporated in 1947, subject (formerly Atul Products Limited) was founded by Kasturbhai Lalbhai with a dream to make India self reliant in chemicals, generate employment on a large-scale and create wealth for the society. For translating his dream into reality, Kasturbhai Lalbhai brought his confidant, Ballubhai Muzumdar, an economist- and his son, Siddharth Kasturbhai Lalbhai, a chemical engineer, to lead subject and establish a large chemical conglomerate.

 

Subject became the first private sector company of India to be inaugurated by Jawaharlal Nehru, the first Prime Minister of the country. The company thus commenced its business with just a few dyestuffs, the know-how of which was brought from foreign companies.

 

Over the years, subject joined hands with American Cyanamid Corp (1952), Imperial Chemical Industries plc (1955) and Ciba-Geigy Limited (1960) to form respectively 3 joint venture companies, namely, Cyanamid India Limited Atic Industries Limited and Cibatul Limited respectively.

 

Consequent to worldwide divestment of dyes and polymers business by ZENECA plc (formerly a part of ICI plc) and Ciba Limited respectively, Atic Industries Limited and Cibatul Limited were merged into Atul Limited in 1995 and 1998 respectively.

 

Subject operates through six business divisions, namely, Agrochemicals, Aromatics, Bulk Chemicals and Intermediates, Colors, Pharmaceuticals and Intermediates and Polymers. Each business, in step with the company vision, develops and implements its growth plans.

 

Subject registered office is in Ahmedabad whereas its corporate headquarters are located in the company, Gujarat. The Company is listed on the NSE in India and has over 35,000 shareholders. Subject also has offices in the USA, the UK, Germany, China and Vietnam that service its international customers.

 

 

 

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.39.96

UK Pound

1

Rs.78.66

Euro

1

Rs.63.31

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

 

81

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions