MIRA
INFORM REPORT
|
Report Date : |
15.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
EXCEL CROP CARE
LIMITED |
|
|
|
|
Registered Office : |
184-87, Swami Vivekanand
Road, Jogeshwari (West), Mumbai – 400 102, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
21.03.1964 |
|
|
|
|
Com. Reg. No.: |
11-12878 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74999MH1964PLC012878 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUME04609D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACW3810D |
|
|
|
|
Legal Form : |
A Public Limited Liability
Company. Company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
The company is
engaged in the business of agrochemicals comprising insecticides, herbicides,
fungicides, lumigants and rodenticides. |
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 5144000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an
established company having fine track. Directors are reported as experienced,
respectable and resourceful industrialists. Their trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company is
doing well. It can be regarded as a promising business partner in a medium to
long run. |
LOCATIONS
|
Registered Office/ Head Office : |
184-87, Swami
Vivekanand Road, Jogeshwari (West), Mumbai – 400 102, Maharashtra, India |
|
Tel. No.: |
91-22-56464200 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
Plot No. B/ 5, Gaiwadi
Industrial Estate, Goregaon (West), Mumbai - 400 062, Maharashtra, India |
|
Tel. No.: |
91-22-28713031 / 28713032 / 28713033 / 2871 3034 /
28713035 |
|
Fax No.: |
91-22-28713037/ 28712523 |
|
E-Mail : |
|
|
|
|
|
Manufacturing Units / Factories : |
Located at: §
6/2,
Ruvapari Road, Bhavnagar – 364 005. §
Kaira Gajod
Highway, Gajod, Kutch §
Plot No. 60,
B, Nanji Industrial Estate, Kharadpada, Silvassa – 396 230, Union Territory
of Dadra and Nagar Haveli |
|
|
|
|
Windmills : |
Located at: §
Plot No.
A/2, Village Dhank, Taluka Upleta, District Rajkot. §
Survey No.
160, Village Navadra, Taluka Kalyanpur, District Jamnagar §
Survey No.
16/1, Jodhpur, District Jamnagar |
|
|
|
|
Zonal Offices:
|
Located at: §
Indore §
Ahmedabad §
Delhi §
Kolkata §
Secunderabad
|
|
|
|
|
Branches : |
Located at: Akola, Cuttack, Gulbarga,
Guwahati, Hissar, Hubli, Jaipur, Kottayam, Madurai, Punjab, Patna, Pune,
Raipur, Ranchi, Indore, Siliguri. |
|
|
|
|
International
Office: |
Excel N. V. |
|
Tel. No.: |
0032-3-5425722 |
|
Fax No.: |
0032-3-2323735/2398269 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. A C Shroff |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Deepak K.
Shroff |
|
Designation : |
Managing Director
|
|
|
|
|
Name : |
Mr. Prakash K
Shroff |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. J R Naik |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M L Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mukul G Asher
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sandeep
Junnarkar |
|
Designation : |
Director |
|
Date of Birth/Age : |
02.07.1951 |
|
Qualification : |
B. Sc. (Hons),
LL. B. |
|
Date of Appointment : |
03.09.2003 |
|
Other Directorships : |
*
Everest
Industries Limited *
IL & FS
Infrastructure Development Corporation Limited *
Indian
Petrochemicals Corporation Limited *
Jai
Corporation Limited *
Reliance
Industrial Infrastructure Limited *
Reliance Industrial
Investments and Holdings Limited *
Reliance
ports and Terminals Limited *
Sterlite
Industries India Limited *
Sunshield
Chemicals Limtied *
Tilaknagar
Industries Limited |
|
|
|
|
Name : |
Mr. B V Bhargava |
|
Designation : |
Director |
|
Date of Birth/Age : |
16.04.1936 |
|
Qualification : |
M. Com., LL. B. |
|
Date of Appointment : |
29.10.2003 |
|
Other Directorships : |
*
CRISIL
Limited *
Grasim
Industries Limited *
ICICI
Lombard General Insurance Company limited *
IREVNA Research
Services Limited *
J K Lakshmi
Cement Limited *
National
Commodity and Derivatives Exchange Limited *
Raymond
Limited *
SI Group –
India Limited *
Supreme
Industries Limited *
L and T
Infrastructure Finance Company Limited |
|
|
|
|
Name : |
Mr. Douglas J
Rathbone |
|
Designation : |
Director |
|
Date of Birth/Age : |
03.11.1945 |
|
Qualification : |
B. Com. (Melb.),
ARMIT (Chem. Eng.) and Diploma in E. D. |
|
Date of Appointment : |
31.03.2004 |
|
Other Directorships : |
*
Nufarm
Limited |
|
|
|
|
Name : |
Mr. Kevin Martin |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sharad L
Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinayak B
Buch |
|
Designation : |
Director (w.e.f.
25.01.2006) |
|
|
|
|
Name : |
Mr. L.
Rajagopalan |
|
Designation : |
Alternate
Director of Dr. Mukul G Asher |
KEY EXECUTIVES
|
Name : |
Mr. Pravin D
Desai |
|
Designation : |
General Manager
(Finance) and Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
|
Category of Shareholders |
No.
of Shares |
%
of Holding |
|
|
Shareholding of
Promoter and Promoter Group2 |
|
|
|
|
Indian |
|
|
|
|
Individuals/ Hindu Undivided Family |
432179 |
3.93 |
|
|
Bodies Corporate |
1621368 |
14.73 |
|
|
|
|
|
|
|
Sub Total(A)(1) |
2053547 |
18.66 |
|
|
|
|
|
|
|
Foreign |
|
|
|
|
Individuals (Non-Residents Individuals/
Foreign Individuals) |
81830 |
0.74 |
|
|
|
|
|
|
|
Sub Total(A)(2) |
81830 |
0.74 |
|
|
|
|
|
|
|
Total
Shareholding of Promoter and
Promoter Group (A)= (A)(1)+(A)(2) |
2135377 |
19.40 |
|
|
|
|
|
|
|
Public
shareholding |
|
|
|
|
Institutions |
|
|
|
|
Mutual Funds/ UTI |
950 |
0.01 |
|
|
Financial Institutions / Banks |
16390 |
0.15 |
|
|
Insurance Companies |
1468302 |
13.34 |
|
|
Foreign Institutional Investors/ Foreign Banks |
166282 |
1.51 |
|
|
|
|
|
|
|
Sub-Total (B)(1) |
|
1651924 |
15.01 |
|
|
|
|
|
|
Non-institutions |
|
|
|
|
Bodies Corporate |
384619 |
3.49 |
|
|
Individuals |
|
|
|
|
Individuals -i. Individual shareholders
holding nominal share capital up to Rs 0.100 million |
4608727 |
41.88 |
|
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 million |
560735 |
5.09 |
|
|
Non-Resident Indians |
47248 |
0.43 |
|
|
Nufarm Limited – Foreign Company |
1617000 |
14.69 |
|
|
|
|
|
|
|
Sub-Total (B)(2) |
7218329 |
65.59 |
|
|
|
|
|
|
|
Total Public
Shareholding (B)= (B)(1)+(B)(2) |
8870253 |
80.60 |
|
|
|
|
|
|
|
TOTAL (A)+(B) |
11005630 |
100.00 |
|
|
|
|
|
|
|
GRAND TOTAL
(A)+(B)+(C) |
11005630 |
100.00 |
|
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged
in the business of agrochemicals comprising insecticides, herbicides,
fungicides, lumigants and rodenticides. |
|
|
|
|
Products : |
§
Insecticides §
Herbicides §
Fungicides §
Lumigants §
Rodenticides
|
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
Pesticides |
Tonnes |
15003 |
12000 |
7743 |
|
Pesticides Intermediates |
Tonnes |
7620 |
3600 |
3201 |
GENERAL
INFORMATION
|
Suppliers : |
§ Aryan Paper Containers § Dimple Drums & Barrels Limited § Hindcomp Private Limited § Mullackal Polymers § Unitop Chemicals Private Limited § Bharat Tin Works § Packaging Remedies §
Omni Cans & Printers Private Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
Around 1158 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
*
Bank of
India *
Syndicate
Bank *
State Bank
of India *
Citibank N A
* Axis Bank * Standard Chartered Bank * ICICI Bank Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Secured Loans (Rs. in millions)
Notes: Debentures referred to in clause 1 (b) above are secured by first legal
mortgage of immovable properties situated at Bhavnagar. Loans from Banks on Cash Credit and Working Capital Demand Loan
Accounts are secured by way of hypothecation of all tangible movable assets,
both present and future, including stock of raw materials, finished goods,
goods-in-process, stores, book debts etc. and by a second charge on the
immovable property situated at Bhavnagar. Of the Working Capital Demand Loans and loans in the form of Cash
Credit Limits, loans aggregating to Rs.146.067
millions (Previous Year: Rs.246.637 millions) are further
secured by Corporate Guarantee given by Excel Industries Limited. Term Loans from ICICI Bank Limited for purchase of vehicles amounting
to Rs. 15.675 millions (Previous
Year: Rs.13.662 millions) is secured by an exclusive charge by way of
hypothecation of cars purchased under the said scheme. Unsecured Loans (Rs. in millions)
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
S V Ghatalia and
Associates Chartered
Accountants |
|
|
|
|
Joint Venture : |
§
Multichem Industries (a partnership firm) |
|
|
|
|
Subsidiaries : |
§
Excel Industries (Australia) Pty. Limited §
Excel Industries (Europe) N. V. §
ECCL Investments and Finance Limited |
|
|
|
|
Associates : |
§
Aimco Pesticides Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs. 5/-Each |
Rs. 60.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11005630 |
Equity Shares |
Rs. 5/-Each |
Rs. 55.028 millions |
Note:
Of the above,
(a) 92000 Equity Shares of Rs. 5/- each fully paid-up have been issued
by way of Bonus Shares by capitalisation
of the surplus in the Profit
and Loss Account.
(b) 10905630 Equity Shares of Rs. 5/- each fully paid-up have been
issued pursuant Scheme of Arrangement,
without payments being
received in cash.
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 |
55.028 |
55.028 |
55.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
973.793 |
811.128 |
685.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1028.821 |
866.156 |
740.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
173.807 |
306.217 |
316.100 |
|
|
2] Unsecured Loans |
814.162 |
567.590 |
597.200 |
|
|
TOTAL BORROWING |
987.969 |
873.807 |
913.300 |
|
|
DEFERRED TAX LIABILITIES |
131.213 |
108.566 |
0.000 |
|
|
Deferred Government Grants |
6.869 |
7.601 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2154.872 |
1886.130 |
1654.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
783.533 |
701.769 |
619.600 |
|
|
Capital work-in-progress |
12.083 |
27.118 |
2.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
12.361 |
7.740 |
19.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
678.919
|
624.154 |
692.600 |
|
|
Sundry Debtors |
897.248
|
776.517 |
841.300 |
|
|
Cash & Bank Balances |
152.793
|
101.559 |
92.600 |
|
|
Other Current Assets |
54.302
|
39.791 |
0.000 |
|
|
Loans & Advances |
273.951
|
183.352 |
257.600 |
|
Total
Current Assets |
2057.213
|
1725.373 |
1884.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
724.753
|
615.262 |
843.000 |
|
|
Provisions |
61.555
|
55.197 |
61.000 |
|
Total
Current Liabilities |
786.308
|
670.459 |
904.000 |
|
|
Net Current Assets |
1270.905
|
1054.914 |
980.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
4.517 |
16.243 |
32.800 |
|
|
|
|
|
|
|
|
TOTAL |
2154.872 |
1886.130 |
1654.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
4237.929 |
3875.324 |
4354.200 |
|
|
Other Income |
58.289 |
66.503 |
0.000 |
|
|
Total Income |
4296.218 |
3941.827 |
4354.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
294.989 |
341.004 |
341.500 |
|
|
Provision for Taxation |
110.047 |
123.252 |
119.300 |
|
|
Profit/(Loss) After Tax |
184.942 |
217.752 |
222.200 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
1411.397 |
1155.302 |
1257.910 |
|
Total Earnings |
1411.397 |
1155.302 |
1257.910 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
916.627 |
934.448 |
|
|
|
Stores & Spares |
0.000 |
0.000 |
|
|
|
Capital Goods |
0.378 |
6.138 |
668.949 |
|
|
Others |
2.928 |
0.000 |
|
|
Total Imports |
919.933 |
940.586 |
668.949 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
3819.961 |
3440.068 |
|
|
|
Interest |
95.858 |
84.077 |
4012.700 |
|
|
Depreciation & Amortization |
63.693 |
53.459 |
|
|
|
Other Expenditure |
21.717 |
23.219 |
|
|
Total Expenditure |
4001.229 |
3600.823 |
4012.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Sales Turnover |
1363.300 |
1433.500 |
1187.400 |
1212.800 |
|
Other Income |
24.800 |
20.300 |
18.800 |
19.000 |
|
Total Income |
1388.100 |
1453.800 |
1206.200 |
1231.800 |
|
Total Expenditure |
1201.900 |
1273.500 |
1129.800 |
1134.500 |
|
Operating Profit |
186.200 |
180.300 |
76.400 |
97.300 |
|
Interest |
23.900 |
23.300 |
24.600 |
27.500 |
|
Gross Profit |
162.300 |
157.000 |
51.800 |
69.800 |
|
Depreciation |
22.200 |
17.900 |
16.900 |
20.300 |
|
Tax |
38.000 |
38.900 |
12.300 |
35.800 |
|
Reported PAT |
91.500 |
89.200 |
20.100 |
33.400 |
|
|
|
|
|
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.96 |
1.09 |
1.38 |
|
Long Term Debt Equity Ratio |
0.07 |
0.17 |
0.33 |
|
Current Ratio |
1.10 |
1.13 |
1.15 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.65 |
3.86 |
4.30 |
|
Inventory |
6.76 |
6.35 |
6.83 |
|
Debtors |
5.26 |
5.17 |
5.22 |
|
Interest Cover Ratio |
4.07 |
5.05 |
5.89 |
|
Operating Profit Margin (%) |
10.54 |
11.60 |
11.05 |
|
Profit Before Interest and Tax Margin (%) |
8.87 |
10.16 |
9.90 |
|
Cash Profit Margin (%) |
5.87 |
6.65 |
6.49 |
|
Adjusted Net Profit Margin (%) |
4.20 |
5.21 |
5.35 |
|
Return on Capital Employed (%) |
20.66 |
25.12 |
26.48 |
|
Return on Net Worth (%) |
19.08 |
26.49 |
33.20 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS:
During the year under review, the net sales increased from Rs.3818.100 millions
in the previous year to Rs.4049.600 millions. Profit before tax for the year
was Rs.295.000 millions against Rs.341.000 millions in the previous year. The
domestic pesticides market continued to be difficult during the year owing to
intense competition resulting in falling prices and reduced margins. The
Company's domestic sales turnover dropped marginally from Rs.2624.300 millions
in the previous year to Rs.2582.800 millions in the year under review. The
export turnover increased from Rs.1193.800 millions in the previous year to
Rs.1466.800 millions in the year under review- registering a growth of
23%.
NEW
PROJECTS/EXPANSIONS/IMPROVEMENTS:
During the year under review, the Company commissioned a new plant for
manufacturing Glyphosate Technical at Bhavnagar to cater to the increasing
market demand for Glyphosate formulations. The Company also introduced an
improved process for Glyphosate formulations at Bhavnagar resulting in
enhancement of capacity and reduction of costs. The formulation facilities at
Silvassa also were upgraded and expanded during the year under review. One more 800 KWH Windmill was installed at
Jodhapar in the Jamnagar district of Gujarat. The Company has taken several
measures for energy conservation and energy cost reduction.
OUTLOOK:
Agriculture sector in India is poised for growth in view of the importance and
priority it is receiving from the Central and State Governments. Large private
sector investment is also attracted by the sector. With the expected growth of
the sector and the near normal monsoon forecast for the current year, the
short-term outlook for the agrochemicals industry and the Company appears
reasonably good, Exports, especially of branded formulation products, continue
to remain a focus area of growth of the Company.
The Company continues to make efforts to strengthen its presence in the
existing export markets and penetrate new markets.
Effective 1st April, 2007, the Company has acquired from Excel
Industries Limited the business of marketing agri input products such as Soil
Enricher, Bio-Pesticides and Plant Growth Promoters. These products have niche
markets especially in the area of soil nutrition, soil health management and organic
farming and an important role to play in 'Integrated Crop Management' and the
Company's 'Excel and Me' programme. These products would enlarge the Company's
product basket and would be marketed through the existing marketing and
distribution channel for agro chemicals.
ENTERPRISE RESOURCE MANAGEMENT
(ERP):
The Company has successfully implemented an ERP Package (SAP) in a record time
of six months and now operates seamlessly in an integrated environment which
would facilitate real time information, better working capital management and
improved and faster decision making.
QUALITY:
The Company continues to maintain ISO: 9000:2000 Quality Management System at
its Bhavnagar Site. ISO-9000 Systems were implemented and certification
received for the Company's Silvassa and Gajod sites. The Company continues to
maintain and adhere to the applicable national and international quality
standards for its products and continues to enjoy the reputation of a quality
supplier. Quality Management System is continuously updated to meet with market
requirement and expectations.
SUBSIDIARIES:
During the year, ECCL Investments and Finance Limited was incorporated as the
wholly-owned subsidiary. The newly formed subsidiary has not yet commenced
commercial activities.
Pursuant to Section 212 of the Companies Act, 1956, the Accounts of Excel
Industries (Australia) Pty. Ltd., Excel Industries (Europe) N.V., and ECCL
Investments and Finance Limited, subsidiaries of the Company, are annexed.
During the year under review. Excel Industries (Europe) N.V., exited
from S.D. Agchem (Europe) N.V., its joint venture company in Belgium, by
selling its 49% equity stake in favour of the joint venture partner Punjab
Chemicals and Crop Protection Limited and its nominee.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Industry Structure & Developments:
The Company is engaged in the business of agrochemicals comprising
insecticides, herbicides, fungicides, fumigants and rodenticides. With growing Indian
economy and the increasing emphasis placed by the Government on improving
productivity in the agriculture sector and increasing public and private
investment being attracted by the sector, the agriculture sector is poised for
steady growth.
Among the agrochemicals, insecticides have dominated the consumption pattern in
India. However, in recent years, consumption of herbicides has been increasing
significantly and offers a great potential. Cotton crop has dominated the use
of agrochemicals with a large share followed by rice, wheat, soya and
plantations in Indian agriculture. Fruits and vegetables are growing segments
consuming agrochemicals.
The industry has built up large capacities and has many players, especially in
formulation business, resulting in high level of competition. Several small and
medium players are under immense pressure due to competition and the industry
is undergoing transformation in terms of products, players, crop focus and
trade practices. Due to seasonal nature of the business and the uncertainties
related to timing and coverage of monsoon, a large inventory is required to be
maintained.
The supply of high quality products at competitive prices, development of new
products/formulations and their registration, particularly of generic products,
are emerging as key success factors.
The domestic industry is continuously striving to increase exports by providing
quality products at competitive prices with a view to ensure better utilisation
of capacities as also to hedge against uncertain climatic conditions within the
country.
Over the years, India has emerged as a major supplier of agrochemicals
in the international market. However, globally the agrochemicals business is
not growing much which leads to intense competition, especially in generic
molecules segment, dropping prices and declining margins.
Opportunities and Threats:
Favourable Agriculture Policy of Central and State Governments, availability of
credit to the agriculture sector as priority sector and increasing private
investments in farming are expected to improve the prospects of agrochemical
industry.
The consumption of agrochemicals in some parts of India is fairly low
and points to the growth potential. Genetically modified cotton crops have been
introduced in India in the last few years and have been gaining popularity.
Hybrid cotton which has been a major consumer of agrochemicals, especially
insecticides, is being replaced by genetically modified varieties, leading to
reduced usage of insecticides especially old generic molecules. At the same
time, the genetically modified crops offer growth prospects for the Company's
weedicide range.
The Company, with its vast experience in pest control practices and wide
product range, has been talking various steps like launching new molecules and
formulations, combination of molecules, improving processes to enhance yield
and quality and reducing costs in order to maintain its lead in the industry
and stay competitive. The Company has also introduced a new formulation for
weed control which is gaining new markets and customers.
In the current year, the Company has begun to market agri input products such
as Soil Enricher, Bio-Pesticides and Plant Growth Promoters. This product group
would enrich the Company's product range and would be useful in the area of
plant and soil nutrition, soil health management and organic farming. The
Company has been working closely with farmers through its programmes 'Excel
& Me' and 'Excel Kisan Mitra' and provides comprehensive package of
products, services, knowledge and solutions to farmers. The export market
continues to offer growth opportunities to the Company.
The Company has been strengthening its presence in the overseas market
by promoting existing and new products, especially branded products, protecting
its existing product registrations and making investment in new product
registrations.
Segment-wise performance and
outlook:
In the absence of growth and high competition in the domestic market,
the Company's domestic sales reduced marginally from Rs.2624.300 millions in
the previous year to Rs.2582.800 millions in the year under review. The
exports, however, grew from Rs.1193.800 millions in the previous year to
Rs.1466.800 millions in the year under review. The trade has been adopting a
cautious approach in the last few years owing to absence of growth and
competition. However, with increased emphasis on agriculture in public policies
and near normal monsoon forecast, the current year outlook for the industry and
the Company appears reasonably good. The outlook for weedicides, fungicides,
acaricides etc. appears good in the coming years.
Over the years, the share of branded formulation products has steadily and
significantly increased in the Company's sales turnover - both in domestic as
well as export markets. On the other hand the share of active technical grade
products, which are increasingly getting commoditised, is on decline.
Increasing sale of branded products brings long term advantages and
consolidates Company's market position.
The initiatives taken by the Company in promoting Integrated Pest Management
(IPM) and Integrated Crop Management (IGM) and its investment in brand
promotion, developing closer ties with farmers and corporate image building are
expected to help the Company in maintaining its leading position in the
industry.
Financial
Performance & Analysis:
The net sales increased from Rs.3818.100 millions in the previous year to
Rs.4049.600 millions in the year under review registering a growth of 6%. The
profit before tax was Rs.295.000 millions for the year as compared to Rs.
341.000 millions in the previous year.
The Company’s Fixed and Intangible Assets of important value includes:
§ Freehold Land
§ Leasehold Land
§ Buildings
§ Plant and Machinery
§ Electrical Installations
§ Laboratory Equipments
§ Furniture and Fixtures
§ Office Equipments
§ Vehicles
§ Technical Books
Intangible Assets
§ Data Compensation Charges
§ Toxicological Expenses
Joint Ventures with:
§ Multichem Industries (a partnership firm)
It is in trade terms with:
§ Agrocel Industries Limited
§ Anshul Agencies
§ Anshul Chemicals Limited
§ C.C. Shrofl Research Institute
§ C.C. Shroff Self Help Centre
§ Divakar Chemicals Limited
§ Excel Industries Limited
§ Hyderabad Chemical Supplies Limited
§ Hyderabad Chemical Products Limited
§ Parul Chemicals Limited
§ Parul Industries
§ Shroff Engineering Limited
§ Shroff Foundation Trust
§ Shrujan
§ Transmetal Limited
§ Transpek Industry Limited
§ Vivekanand Research & Training Institute
Contingent
Liabilities
(Rs in millions)
|
|
31.03.2007 |
31.03.2006 |
|
Bills discounted |
232.700 |
241.449 |
|
Disputed excise-duty liability |
0.277 |
0.407 |
|
Disputed service-tax liability |
0.276 |
0.211 |
|
Disputed Income-tax liability |
13.632 |
12.648 |
|
Disputed Sales-tax liability |
26.270 |
-- |
|
Guarantees given by Company's bankers on behalf of the Company to
third parties |
10.887 |
27.594 |
|
(i) Guarantees given by Company in respect of loans taken by Excel
Industries Limited (ii) Balance of loans outstanding as at 31 st March Liability in
respect of wage settlement |
811.776 448.682 |
811.776 430.806 |
|
Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) |
1.983 |
18.392 |
|
The Company has 50% ownership interest in Multichem Industries, a
partnership firm registered in India. The proportionate interest of the
Company in the said entity as per the latest Balance Sheet as at 31st March,
2007 is as under: Assets Liabilities Income Expense (*Rs. 247)
|
0.213 0.213 -- 0.008 |
0.209 0.209 -- -- |
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.42.82 |
|
UK Pound |
1 |
Rs.84.89 |
|
Euro |
1 |
Rs.68.07 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|