MIRA
INFORM REPORT
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Report Date : |
03.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
GUJARAT AMBUJA EXPORTS LIMITED |
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Registered Office : |
Ambuja Tower, Opposite Memnagar
Fire Station, Post Navjivan, Ahmedabad – 380014, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
21.08.1991 |
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Com. Reg. No.: |
016151 |
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CIN No.: [Company
Identification No.] |
L15140GJ1991PLC16151 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMG00194F |
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PAN No.: [Permanent
Account No.] |
AAACG3980A |
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Legal Form : |
A public limited liability company. The company’s shares are listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer and Supplier of products of cotton yarn. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 17900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Payments are usually correct and as per commitments. Financial position is satisfactory. The company can be considered normal for
business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered / Corporate Office: |
Ambuja Tower, Opposite Memnagar Fire Station, Post Navjivan, Ahmedabad
– 380014, Gujarat, India |
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Tel. No.: |
91-79-26405535 / 37 / 39 / 26423316 |
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Mobile No.: |
91-9825095185 |
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Fax No.: |
91-79-26423079 / 26423079 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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PLANTS |
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Address: |
100% EOU Cotton
yarn Division 1, Vrindavan Road, Village:Dalpur, Taluka:Prantij,
District:Sabarkantha, Gujarat |
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Tel. No.: |
91-2772-226252 / 54 |
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Fax No.: |
91-2771-226250 / 52 |
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E-Mail : |
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Address: |
Soya Processing
Unit Plot No. 414/417, Sector-III, Pithampur Industrial Area, District:Dhar,
Madhya Pradesh, |
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Tel. No.: |
91-7292-256790/256264 |
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Fax No.: |
91-7292-256199 |
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E-Mail : |
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Address: |
Maize Processing
Unit 1, Vrindavan Road, Village:Dalpur, Taluka:Prantij,
District:Sabarkantha, Gujarat |
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Tel. No.: |
91-2772-226252/54 |
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Fax No.: |
91-2772-226252 |
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E-Mail : |
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Address: |
Solvent Extraction,
Refinery, Wheat Flour, Cattle Feed Units Kadi Complex Kadi – Thore Road, Kadi, Dist. Mehsana, Gujarat |
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Tel. No.: |
91-2764-264013/17 |
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Fax No.: |
91-2764-264012 |
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E-Mail : |
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Address: |
Akola Soya
Processing and Refinery Village Kanheri-Gawali, N.H. No.: 6, Akola-Balapur Road, District –
Akola, Maharashtra, India |
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Tel. No.: |
91-7257-285026/285027 |
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Fax No.: |
91-7257-285025 |
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E-Mail : |
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Address: |
Vietnam Office 14th Floor, Suite 1420, Level 13F-14F, North Asia Tower,
No.9 Dao Duy Anh Street, Dong Da District Hanoi, Vietnam |
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Tel. No.: |
91-84-45771711 |
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Fax No.: |
91-84-45771720 |
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Address: |
Maize Processing
Unit C-50, Eldeco Sidcul Industrial Park, Sitargang District:Udhamsingh
Ngar – 263153, Uttranchal |
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Tel. No.: |
91-5948-260564 |
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Fax No.: |
91-5948-260564 |
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Email: |
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Branch Office 1: |
Mumbai 17, Anjani Complex, Ground Floor, Pereira Hill Road, Opp. Gurunanak
Petrol Pump, Chakala, Off. Andheri – Kurla Road, Andheri (E), Mumbai – 400099,
Maharashtra, India |
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Tel. No.: |
91-22-28356497 |
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Fax No.: |
91-22-28356493 |
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E-Mail : |
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Branch Office 2: |
New Delhi 208, Deep Shikha Building, Rajendra Place, New Delhi – 110008, India |
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Tel. No.: |
91-11-25745761 |
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Fax No.: |
91-11-25763819 |
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E-Mail : |
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Branch Office 3: |
Indore 126/129, Starlit Tower, 29 Y.N.Road, Opp. State Bank Of Indore (H.O.),
Indore – 452001 |
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Tel. No.: |
91-731-4040225/26/27 / 4082182 |
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Fax No.: |
91-731-2436477 |
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E-Mail : |
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Branch Office 4: |
Akola Narmada Sadan, 1st Floor, New Radhekrishna Plot, Gurudwara
Road, Akola – 444001, Maharashtra, India |
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E-Mail : |
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Branch Office 5: |
Vietnam Mr. Nguyen Quoc Tuan Business Development Officer, Rmmo 420, Hanoi
Press Club Building, 59 A, Ly Thai to Street, hanoi S. R. Vietnam |
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Tel. No.: |
91-84-4-9364590 |
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Fax No.: |
91-84-4-9364577 |
DIRECTORS
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Name : |
Mr. Vijay Kumar Gupta |
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Designation : |
Chairman and Managing Director |
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Address : |
8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad –
380009 |
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Date of Birth/Age : |
01.07.1949 |
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Qualification : |
Bachelor of Indental Services [B.IS.] |
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Experience : |
36 Years |
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Date of Appointment : |
18.04.1998 (As M.D.) |
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Last Employment : |
Erstwhile Gujarat Ambuja Cotspin Limited (As Managing Director) |
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Name : |
Mr. Manish V. Gupta |
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Designation : |
Managing Director |
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Address : |
8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad –
380009 |
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Date of Birth/Age : |
18.09.1971 |
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Qualification : |
B. Com. |
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Experience : |
17 Years |
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Date of Appointment : |
28.12.1998 |
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Last Employment : |
Erstwhile Gujarat Ambuja Proteins Limited (As Managing Director) |
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Name : |
Mr. Parshottam G. Makhija |
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Designation : |
Executive Director |
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Address : |
F – 2, Pemanand Apartments, Opposite Punjabi Hall, Navrangpura,
Ahmedabad – 380009, Gujarat, India |
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Date of Birth/Age : |
23.11.1958 |
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Qualification : |
M. Com. L.L.B., ACS, CAIIB-1 |
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Name : |
Mrs. Sulochana V. Gupta |
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Designation : |
Director |
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Address : |
8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad –
380009 |
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Date of Birth/Age : |
01.11.1953 |
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Qualification : |
Under Graduate |
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Name : |
Mr. Jagdish Sharan Varshneya |
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Designation : |
Director |
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Address : |
21, Jayshree, 75 Worli Sea Face, Mumbai – 400025 |
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Date of Birth/Age : |
08.07.1929 |
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Qualification : |
M. Com. LLB |
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Name : |
Mr. Chaitan M. Maniar |
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Designation : |
Director |
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Address : |
Garden House, Dadyseth, 2nd cross Lane, Chowpatty
Bandstand, Mumbai – 400007 |
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Date of Birth/Age : |
04.12.1935 |
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Qualification : |
B. Com. LLB, MA |
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Name : |
Mr. Prakash G. Ramrakhiani |
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Designation : |
Director |
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Address : |
Block No. 154, Sector – 8, Gandhinagar – 382008 |
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Date of Birth/Age : |
25.11.1940 |
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Qualification : |
B.A. [Hons], M.A. [Eco], IAS |
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Name : |
Mr. Ashok C. Gandhi |
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Designation : |
Director |
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Address : |
2, Prabhat Society, Paldi, Ahmedabad – 380007 |
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Date of Birth/Age : |
04.12.1939 |
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Qualification : |
B. Com. LLB |
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Name : |
Mr. Sandeep N. Agarwal |
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Designation : |
Director |
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Address : |
402, Gold Residency, 7/2, Manotamaganj, Indore – 452001 |
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Date of Birth/Age : |
12.12.1971 |
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Qualification : |
B. Com. [Hons], MBA |
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Name : |
Mr. Rohit J. Patel |
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Designation : |
Director |
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Address : |
22.02.1946 |
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Date of Birth/Age : |
7, Anand park Society, Near Naranpura Bus Stand, Nanarnpura, Ahmedabad
– 380013 |
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Qualification : |
B. E. [Electrical] |
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Name : |
Mr. Mohit V. Gupta |
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Designation : |
Director |
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Address : |
8, Pratima Society, Near Dada Sahebna Pagla, Navrangpura, Ahmedabad –
380009 |
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Date of Birth/Age : |
20.11.1981 |
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Qualification : |
B. Com., Diploma in IBM, HRM, FBM and Diploma in computer Information
Systems |
KEY EXECUTIVES
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Name : |
Mr. Kaushik C. Khona |
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Designation : |
Chief Financial Officer and Company Secretary |
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Name : |
Mr. Sanjay S. Maniar |
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Designation : |
Company Secretary (w.e.f. 25.01.2008) |
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Name : |
Mr. N. Giridhar |
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Designation : |
Vice President w.e.f.
04.07.2008 (Finance and Accounts) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008 (Including Demat)
|
Category
of Shareholder |
No. of Shares |
Percentage of Holding |
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Promoters/
Directors and Relatives |
87935895 |
63.56 |
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Financial Institutions/ Mutual Fund/ Banks |
6332523 |
4.58 |
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Non-Residents/ FIIs/ OCBs |
9194734 |
6.65 |
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Other Corporate Bodies |
1993583 |
1.44 |
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Indian Public |
32895140 |
23.77 |
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Total |
138351875 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Supplier of products of cotton yarn. |
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Products: |
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Agencies Held : |
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Exports : |
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Products : |
Cotton Yarn, Maize Products and De-Oiled Cakes |
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Countries : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
L/C and Cash |
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Purchasing : |
L/C, Cash and Credit [30 days] |
PRODUCTION STATUS As on 31.03.2008
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Particulars |
Unit |
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Installed
Capacity |
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Solvent Extraction Unit |
TPA |
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990000 |
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Vanaspati Unit |
TPA |
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30000 |
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Refining of any kind of oil |
TPA |
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360000 |
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Maize Based Starch, Seed Crushing |
TPA |
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355000 |
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Wheat Products |
TPA |
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112500 |
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100 % E.O.U. Cotton Spinning Unit Ring Spun Yarn |
TPD |
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44 |
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Power generation Unit [Wing Mills] |
M W |
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6.95 |
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Particulars |
Unit |
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Actual
Production |
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Agro Processing
Division |
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Food Products |
M.T. |
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196262 |
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Chemicals and Allied products |
M.T. |
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65826 |
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Extractions and Derivatives |
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514511 |
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Cotton Yarn
Division |
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Cotton Yarn |
M.T. |
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15297 |
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Others |
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0 |
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Windmill
Division |
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Power Generation Unit |
Unit |
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10921436 |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
Wholesalers and Retailers Ř Hans Company Limited Ř Yangtex S. A. Ř Shinsung Tongsang Company Limited Ř Chutey TIV Limited Ř Cairo Cotton Center Ř B. J. Hong Ř Asia Nutrition Ř Proactive Synegies Ř Cargill International Trading Pte Limited Ř Toepfer International Asia Pte Limited Ř Bung Agribusiness Singapore Pte Limited Ř Pt. Nakita Ř Com Inter Company Limited Ř Hayleys Industries Ř House of Chemicals Ř United Feed Industries |
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No. of Employees : |
5175 [In Office : 150; In Factory : 5000; In Branch : 25] |
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Bankers : |
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Facilities: |
Secured Loans :
Unsecured Loans :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kantilal Patel and Company Chartered Accountants |
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Address : |
2nd Floor, Paritosh Building, Usmanpura, Ahmedabad – 380013
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Tel. No.: |
91-79-27551333 / 27552333 |
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Fax No.: |
91-79-27550538 |
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E-Mail : |
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Associates/Subsidiaries : |
GUJARAT
AMBUJA INTERNATIONAL (PRIVATE) LIMITED Phone:
00-65-63243701,
63243702 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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250000000 |
Equity Shares |
Rs.2/-each |
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
138351875 |
Equity Shares |
Rs.2/-each |
Rs.276.700
Millions |
Notes:
i. Includes
31500000 (P.Y.31500000) Equity shares of Rs.2/- each issued at a premium of
Rs.0.20 per share on conversion of Optionally Convertible Unsecured Debentures.
ii. Includes 82188910
(P.Y.82188910) Equity shares of Rs.2/- each fully paid alloted on 30.4.99 in
exchange of shares on amalgamation for consideration other than cash.
iii. 31085420
(P.Y.31085420) Equity shares of Rs.2/- each reduced as per Scheme of
arrangement approved by Honourable Gujarat High Court order dated 17th February
2003.
iv. Includes
20490000 (P.Y.20490000 ) Equity Shares of Rs.2/- each fully paid, alloted on
31.1.2004 in exchange of shares on amalgamation for consideration other than
cash.
Explanation to
Notes:
Till 16th January
2006, the Company‘s paid up Capital was made up of Equity Shares of Rs. 10/-
each which was then split into Equity Shares of Rs.2/- each.
In the above notes
the number of shares and premium is restated as related to Equity shares of Rs.
2/- each.
v. 966615 (P. Y
Nil) Equity Shaes of Rs. 2/- each bought back and extingushed pursuant to
scheme of Buy-back from open market through stock exchange route which closed
on 15.01.2008
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
276.700 |
278.600 |
278.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3306.700 |
2755.800 |
2346.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3583.400 |
3034.400 |
2625.500 |
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LOAN FUNDS |
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1] Secured Loans |
5139.500 |
1829.900 |
2110.700 |
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2] Unsecured Loans |
11.500 |
7.900 |
8.200 |
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TOTAL BORROWING |
5151.000 |
1837.800 |
2118.900 |
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DEFERRED TAX LIABILITIES |
485.700 |
496.800 |
0.000 |
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TOTAL |
9220.100 |
5369.000 |
4744.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2618.200 |
2347.800 |
2191.400 |
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Capital work-in-progress |
54.800 |
274.700 |
2.800 |
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INVESTMENT |
265.700 |
91.800 |
68.700 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4612.800
|
2170.700
|
2271.500 |
|
|
Sundry Debtors |
918.400
|
666.800
|
660.300 |
|
|
Cash & Bank Balances |
1414.800
|
150.300
|
45.400 |
|
|
Other Current Assets |
67.700
|
4.100
|
0.000 |
|
|
Loans & Advances |
575.700
|
99.500
|
33.500 |
|
Total
Current Assets |
7589.400
|
3091.400 |
3010.700 |
|
|
Less : CURRENT LIABILITIES
& PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1051.800
|
347.300
|
447.400 |
|
|
Provisions |
256.200
|
89.400
|
81.800 |
|
Total
Current Liabilities |
1308.000
|
436.700 |
529.200 |
|
|
Net Current Assets |
6281.400
|
2654.700
|
2481.500 |
|
|
|
|
|
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9220.100 |
5369.000 |
4744.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
18290.900 |
14002.400 |
12873.400 |
|
|
Other Income |
20.800 |
16.900 |
53.100 |
|
|
Total Income |
18311.700 |
14019.300 |
12926.500 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1095.100 |
698.200 |
455.000 |
|
|
Provision for Taxation |
382.600 |
230.700 |
151.900 |
|
|
Profit/(Loss) After Tax |
712.500 |
467.500 |
303.100 |
|
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|
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Earnings in Foreign Currency : |
|
|
|
|
|
Export Earnings |
8921.900 |
5109.700 |
3873.800 |
|
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Total Earnings |
8921.900 |
5109.700 |
3873.800 |
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Imports : |
|
|
|
|
|
Stores & Spares |
27.900 |
78.500 |
3.100 |
|
|
Capital Goods |
39.000 |
39.500 |
329.700 |
|
|
Others |
2561.800 |
771.400 |
3343.400 |
|
|
Total Imports |
2628.700 |
889.400 |
3676.200 |
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
13891.500 |
9119.100 |
10874.900 |
|
|
Excise Duty |
NA |
NA |
51.900 |
|
|
Power and Fuel Cost |
NA |
NA |
434.200 |
|
|
Manufacturing Expenses |
1061.200 |
802.300 |
146.000 |
|
|
Employee Cost |
296.300 |
216.300 |
196.900 |
|
|
Increase/(Decrease) in Finished Goods |
(555.200) |
(295.100) |
(241.200) |
|
|
Selling and Administration Expenses |
1142.100 |
863.100 |
638.600 |
|
|
Miscellaneous Expenses |
NA |
NA |
10.200 |
|
|
Interest and Financial Charges |
152.200 |
81.100 |
122.300 |
|
|
Purchase of Trading Goods |
909.300 |
2283.300 |
NA |
|
|
Exceptional Items (Loss on Discarding of
Assets) |
4.600 |
0.000 |
NA |
|
|
Depreciation |
314.600 |
251.000 |
237.700 |
|
Total Expenditure |
17216.600 |
13321.100 |
12471.500 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
|
|
|
|
|
Sales Turnover |
|
4381.300 |
3305.500 |
|
Other Income |
|
0.400 |
6.500 |
|
Total Income |
|
4381.700 |
3312.000 |
|
Total Expenditure |
|
3947.700 |
2965.800 |
|
Operating Proft |
|
434.000 |
346.200 |
|
Interest |
|
50.100 |
24.800 |
|
Gross Profit |
|
383.900 |
321.400 |
|
Depriciation |
|
89.100 |
91.600 |
|
Tax |
|
113.400 |
111.800 |
|
Reported PAT |
|
193.900 |
130.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
3.89
|
3.33 |
2.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.99
|
4.99 |
3.53 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.40
|
12.03 |
8.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.23 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.80
|
0.75 |
1.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.80
|
7.08 |
5.69 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject incorporated in August 1991 and was promoted by Vijaykumar Gupta
is engaged in the manufacture of refined castor oil, hydrated castor oil and
hydrogenated castor oil. These products have extensive usage in industries
manufacturing detergents, lubricants and chemicals. The promoters also have
interests in Ambuja Agro, Gujarat Ambuja Soya Products, Ambuja Flour Mills,
etc.
It came out with a public issue aggregating Rs.37.800 millions in April 1992.
The issue was to part-finance a project for crushing castor seed, setting up a
refinery and to meet working capital requirements.
The company has formed a strong technical department to continuously
monitor energy consumption and plan and execute energy conservation schemes.
Effective steps are being taken for overall technological upgradation of the
plant and machinery.
The company's soya flakes plant commenced commercial production in Dec'95 and
the vanaspati ghee project in the year 1996-97. During 1998-99, Gujarat Ambuja
Cotspin and Gujarat Ambuja Proteins were amalgamated with the company. The
company converted its two Solvent Extraction Plants at Kadi into 100% EOU. It
also received ISO 9000 certification for the above two plants.
The company has expanded the installed capacity of Solvent Extraction unit
during the year 2000 by 30000 tonnes and with this expansion the total capacity
has been increased to 450000 tonnes.
The company continued its journey to growth. The Soya DOC exports won the
company the coveted recognition of being Second Largest manufacturer Exporter
in India based on the performance of 1999-2000.The exports of DOC have also
registered tremendous growth during the year 2000-01.
The amalgamation of the company with Jupiter Biotech Limited was approved by
the Hon'ble High Court of Gujarat. The exchange ratio is fixed as 1:1.
With effect from 30.01.2004, Jupiter Biotech Limited was merged with the
company.
PERFORMANCE REVIEW FOR THE YEAR 2007-08
In the Financial Year 2007-08, the company has achieved better results.
The earning before interest, depreciation, and tax (EBIDTA) jumped from Rs.1030.300
millions in F.Y. 2006-07 to Rs.1561.900 millions in F. Y. 2007-08. The EBIDTA
has registered growth of about 52%.
The top line of the company has improved considerably from a level of
Rs.14002.400 millions to Rs.18290.900 millions. Revenue growth is about 30% in
F.Y 2007-08. The export sales of the company have registered growth of about
75% in F. Y. 2007-08. The company has achieved the export sales of Rs.8921.900
millions in F. Y. 2007-08, which is higher by Rs.3812.200 millions than the
export sales for previous year.
The profit after tax and corresponding EPS has also improved significantly and
registered growth of 52% during the last financial year.
All the segments of the company have performed well. The operations in Agro
Processing segment has improved substantially while the maize processing and
cotton yarn segment maintained their operational level. The returns from
windmill segment are dependent on carbon credit approval.
Capital Projects for the year 2007-08
The Board of Directors is glad to inform that Maize Processing plant at
Uttarakhand has begun its commercial production from 27.03.2008. In the first
quarter of the current financial year, the unit has achieved more than 50% of
capacity utilization and expects to contribute to the growth of the company in
the current financial year. The unit has benefit of various incentives of
Central Government in the form of Excise and Income-tax exemptions. Ministry of
Food Processing Industry has also approved the project for capital subsidy of
Rs.7.500 millions in March, 2008. The unit has also set up Biogas based captive
power generation plant from liquid industrial waste.
The company has also upgraded its machinery in other segments.
OPERATIONAL PERFORMANCE
Agro Processing Division
The Company's Agro-processing Division comprises of Solvent Extraction
of Edible Oil Seeds, Edible Oil Refining, Wheat Processing and Cattle Feed
manufacturing. All segments of this Division performed substantially well in
the F. Y. 2007-08 and achieved better capacity utilization. The Company has
registered highest crushing of edible oilseed, which helped to achieve the
growth in export performance. This division has significantly contributed to
the revenue growth of the company. The margin in this segment also improved due
to improvement in the realisation of various finished goods.
Cotton Yarn Division
Soaring domestic cotton prices have hit the textile s, his year with
mills struggling to achieve a breakeven. High cotton r, high fuel prices and
sluggish garment demand in global market adversely affected textile industry
during 2007-08. However, the cotton yarn division maintained its capacity
utilization and operating efficiencies during the year.
Maize processing division
The Maize processing division witnessed unprecedented rise in raw
material cost due to increased demand for use of starch in bio-fuel in European
countries, increase of starch and its derivatives in various food applications
and acceptance as health and wellness product. Increase in overall
manufacturing capacity, considering the growth potential in the industry, has
also made the margin to shrink.
The maize-processing segment managed to maintain its performance during F.Y.
2007-OS on par with that of previous year. With the commissioning of
Uttarakhand project this segment has increased its processing capacity.
Windmills
The company has 7 wind turbines with total installed capacity of 6.95 MW. The
return from investment in wind energy is dependent on carbon credit approval. All
the turbines have performed satisfactorily in the F. Y. 2007-08.
Over all Analysis
The performance of the company for the year 2007-08 has improved significantly
compared to that of last year. The company registered growth in the top line
and other financial parameters. The company has developed different product mix
in the year 2007-08 to improve its realization. The company has also put in
efforts for quality consciousness and due to this, the company hopes to expand
its market base in domestic as well as international market in coming
years.
OUTLOOK FOR THE YEAR 2008-09
In the F. Y. 2007-08, the industry in general faced number of adverse
factors. These are in the form of higher input cost, rising fuel prices,
appreciation in Indian rupee and other economic factors. Due to these factors,
the cotton yarn and maize processing segments has not been able to maintain the
pace with agro, processing segment in F.Y.2007-08.
The F. Y. 2008-09 has begun with positive changes in economic factors affecting
the cotton yarn segment of the company. The rupee has depreciated by more than
7% in the first quarter of current financial year compared to average rate of
realization in F. Y. 2007-08. The cotton yarn prices have improved by about 15%
in the first quarter of current financial year, which would improve the
performance of this segment. The maize products prices have also moved upward
in line with the increase in maize seed price. Barring unforeseen economic
development, the outlook for the F. Y. 2008-09 is bright for the different
segments of the company.
In the first quarter of the current financial year the top line of the company
has risen from Rs.3540 millions to Rs.4380 millions with a growth of 24%. The
EBIDTA in the first quarter has also registered a growth of 37% as compared to
that of corresponding period of previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS
Overall Review of Economy
Economic Outlook
The economy of the country is passing through the difficult time at the moment.
The growth in Indian economy has slowed down due to international recession,
inflation and political uncertainties.
In spite of various factors, the economic growth in India
is projected at about 8% in 2008-09. The agricultural and manufacturing sectors
are expected to steady the Indian economy in spite of various negative factors.
The foreign investments are likely to slow down in current financial year
mainly due to the problems faced by the investing country rather than any
negative outlook for Indian economy. However, this would not effect the growth
estimation of Indian economy and the India would be able to maintain its growth
pace without any major negative impacts.
India's performance in Agriculture
India's potential in agriculture stands unrivalled mainly because of its
large resource base and the existence of varied agro-climatic zones, which
offers opportunities of producing a wide range of agriculture products all the
year round.
India's position in global agriculture is strengthened by the significantly
large contribution to the food grain output. The year 2007-08 was promising
bumper year for Indian agriculture, with a host of crops clocking record output
level.
However, rupee appreciation coupled with rising crude oil prices has affected
viability of exports of textile products.
The Company
In the year 2007-08, the company has consolidated its financial
position. The sales have registered growth of about 30%. The company has
achieved the growth of 75% in export sales. The EBIDTA margin of the company
improved from 7.36% of F.Y. 2006-07 to 8.54% in the FY. 2007-08. Various
profitability ratios have improved significantly in 2007-08. The company has
made new investments of about Rs.580 millions in fixed assets funded entirely
from internal accruals. The achievement in the year 2007-08 is considered
significant in spite of some adverse factors faced by the industry.
Segment wise Performance
The company's presence is in Cotton Yarn, Maize processing, Other Agro
processed products and Windmills.
Agro Processing Segment
The Agro processing segment is engaged in solvent extraction from
oilseed and refining of edible oil. The oil seed meal products under solvent
extraction have achieved excellent performance. The oil seed crushing have
registered the new high of more than 6.16 lacs MT. The edible oil segment has
also managed its growth in 2007-08. For the edible oil products, the company
has also focused more on consumer marketing over bulk marketing. The surge in
selling price of oil meal and edible oil has helped to improve EBIDTA margin
from 4% in 2006-07 to 8% in 2007-08.
The future of this segment is bright. The Government has encouraged this sector
by way of different incentive schemes from time to time.
Cotton Yarn Segment
Company's Cotton Yarn segment is an 100% EOU. The unit produces combed
and carded cotton yarn as well as open-end yarn. The combed and carded ring
spinning at the count range of 16 to 40 and the Open End yarn of 4 to 6 counts.
The segment has been able to expand its market base to about 40 countries
across the globe. Although the sales have come down by about 10%, the company
has been able to maintain the production at the same level as in the previous
year. Amongst the different segments of the company this segment has the
maximum impact of adverse factors like Rupee appreciation, raising cotton and
fuel prices, and international recession. These have resulted in negative top
line. The EBIDTA margin of the segment has also come down from around 18% in FY
2006-07 to around 70/ in F.Y.2007-08. However as compared to performance of the
textile industry in general, the textile segment of their company has performed
above par.
The situation in current year is improving steadily. The yarn price has now
adjusted with the input prices. The yarn prices have surged by around 15% in
the first quarter itself. The government has also noted the potential of the
textile industry and various promotional measures announced last year, are
continued in current year also.
Maize Processing Segment
The company has 2 maize processing units, one at Village: Dalpur, Tal:
Prantij, Gujarat and another one at Uttarkhand. The total maize crushing
capacity is 800 MT per day. It has diversified products, which includes Maize
Starch and other Maize by products. It also has value added derivatives like
Dextrose Monohydrate, Malto Dextrin, Liquid Glucose and Sorbitol. The segment
has good potential to be a major contributor in the future prospects of the
company. Significantly, in the F. Y. 2007-08 this segment has also concentrated
in export market. The jump in exports sales for this segment is more than 156%
in F. Y. 2007-08 compared to last year. The segment was able to acheive EBIDTA
margin of more than 12% in last financial year.
The future of this segment is very bright. The Uttarakhand plant would be
serving the Northern India market of the segment. The plant is located in
close. proximity to large institutional buyers for the product of this segment.
The segment is focusing on export market also. The Himatnagar plant being very
close to major Ports in Gujarat would now be able to focus on international
market.
Windmill Division and contribution to environment friendly atmosphere
To contribute to social cause of environment friendly company, the
company has installed total 7 windmills with the total capacity of 6.95 MW. All
are set up in Gujarat and are operational. The performance of the windmills has
been near to the projections. The carbon credit is vital part of the project and
the company hopes to get recognition for the carbon credits at the
earliest.
Further to their efforts for environment friendly practices, they have taken up
projects and are finding avenues to generate power through renewable resources.
Along with windmills, the Company has taken up capital incentive projects to
switch to modern environment friendly ways of running processes in all the
units. This will be an on going effort in future across all units.
FINANCE AND INSURANCE
Working Capital
The company has substantial working capital facilities from the
consortium of banks. The company has been assigned the highest rating for
safety by CRISIL as per Basel-II norms.
Term Loans
In the Financial year 2007-08, the company has availed fresh Term Loan
of Rs.1.000 million only. The company is repaying the installments regularly
for term loan availed-under Technology Up gradation Fund Scheme availed from
Bank of India. The company is regular in repayment of installment for term loan
availed from IREDA for its windmill projects.
Insurance
All the assets and insurable interests of the Company, including building,
plant and machineries, stocks, stores and spares have been adequately insured
against various risks and perils.
OTHER INFORMATION
Contingent liabilities
not provided for in respect
|
Particulars |
2007-08 Rs.
in millions |
|
a) Claims against the Company /disputed liabilities not acknowledged
as debts |
46.700 |
|
b) Disputed Excise duty, Sales Tax. Motor Spirit Tax, Income Tax
Claims |
187.700 |
|
c) Differential
amount of custom duty in respect of machinery and raw materials purchased
under EPCG and Advance License Scheme |
1.100 |
|
d) Corporate guarantee in favour of Bank on behalf of wholly owned
subsidiary Gujarat Ambuja International Private Limited outstanding against this as at 31st March |
100.200 (US $ 2.5Mn) NIL |
|
|
|
Note:
(a) Outflow in
respect of 1 (a) and (b) disputes / contingencies is dependent upon final outcome
of the disputes or ultimate agreement to resolve the differences.
(b) Futures cash
outflow in respect of 1 (c) depends if Company is unable to fulfill export
obligation of Rs.0.800 million within next eight years under EPCG Scheme and
6986 MT of castor meal amounting to Rs.39.800 millions under Advance License
Scheme on or before 30th November 2008.
Fixed Assets:
- Free Hold Land
- Lease Hold Land
- Factory Building
- Non factory Building and colony
- Plant and Machinery
- Wind Mill
- Electric Supply Systems
- Vehicles
- Furniture and Fixtures
- Office Equipments
- D. G. Set
- Temple
- Factory Road
- Effluent Treatment Plant
- Trade Mark
- SAP/ ERP
Systems
WEBSITE DETAILS:
Cotton Yarn Exporter:
Subject Leading Cotton Yarn Exporter in India. They are one of the best
manufacturer and supplier of products of cotton yarn in India. They are
specialized in Gujarat and their services are in all the parts of India.
Subject is India's major manufacturer and exporter of maize starch, liquid
glucose, malto dextrin, dextrose monohydrate, sorbitol 70% solution,
white/yellow dextrines, non GMO liquid soya lecithin, defatted soya flour
toasted and untoasted, defatted soya flakes toasted and untoasted, full fat soya
flour enzyme active and inactive, hipro soyabean meal, deoiled cakes, rapeseed
meal, castor meal, groundnut meal, cotton cake, eedible oils, bakery
shortening, cotton yarn, wheat flour and cattle feeds from www.ambujagroup.com
Subject is principally involved in agro- processing and has focused on
exports, competing in the global market.
Excellent Projects
- 100% Export
Oriented Unit for Cotton Yarn Spinning.
- ISO 9001
certification to Soya Processing plants at Kadi.
- All the
plants are set up recently with latest technology and state-of-the-art
equipments and are fully equipped with complete infrastructure.
- Sourcing
requirement of all Important Inputs like Cotton, Maize Grain by sourcing
locally and by importing from various countries like USA, China,
Australia, Middle East and European countries.
- Captive Power
generation ensuring affordable, uninterrupted and good quality power at
all manufacturing plants
- Soya
Processing Plants having 2nd highest crushing capacity in India
Meritorious
Achievements
- Recipient of
award for the second largest manufacturer exporter of Soya meal for three
consecutive years
- Rated amongst
top thirty exporters
- Rated amongst
top 500 performing companies by business magazines for 3 consecutive
years
- Received
Export house status in the first year of operations. Thereafter upgraded
to Trading House on the basis of constantly improving export performance
- Recipient of
the Highest Exporter Awarded for Rapeseed extraction for two consecutive
years.
- Cotton
Spinning Division : Recipient of the Excellence Awarded conferred by the
Institute of Economic Studies, New Delhi and the Highest Awarded in
textile sector conferred by Kandla SEZ
Excellent Corporate
- Net worth of
more than Rs.2600.000 Millions fully backed by Fixed Assets of more than
Rs.3500.000 Millions
- No long term
Debt.
- Young and
Energetic Team led by CEO at each plant and professional Board of
Directors.
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.50.52 |
|
UK Pound |
1 |
Rs.75.08 |
|
Euro |
1 |
Rs.63.72 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|