MIRA
INFORM REPORT
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Report Date : |
30.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
BHARAT RASAYAN LIMITED |
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Registered Office : |
1501, Vikram Tower, Rajendera Place, New Delhi-110008 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.05.1989 |
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Com. Reg. No.: |
036264 |
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CIN No.: [Company
Identification No.] |
L24119DL1989PLC036264 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB06167A |
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PAN No.: [Permanent
Account No.] |
AAACB4127A |
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Legal Form : |
A Public Limited Liability Company. Company’s Shares are listed on
Stock Exchanges |
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Line of Business : |
Manufacturer of Technical Grade Pesticides |
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 1473320 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow by Average 30 days |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track records. The
company’s profit margin is under pressure. Its payments are reported as slow
by average 30 days. However it can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
1501, Vikram Tower, Rajendera Place, New Delhi-110008, India |
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Tel. No.: |
91-11-25731818/25195834/5450727/827/5195835/5836/5435093 |
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Fax No.: |
91-11-25727781/5448264/5195834 |
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E-Mail : |
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Website : |
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Factory: |
2 KM stone, Madina- Mokhra Road, Mokhra Village, Tehsil Meham, Rohatk
District , Haryana, India |
DIRECTORS
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Name : |
Mr. S.N Gupta |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. M.P Gupta |
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Designation : |
Whole Time Director |
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Name : |
Mr. Sandesh Kumar Jain |
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Designation : |
Independent and Non – Executive Director |
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Name : |
Mr. Pradeep Kumar Gupta |
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Designation : |
Independent and Non – Executive Director |
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Name : |
Mr. Naresh Agarwal |
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Designation : |
Independent and Non – Executive Director |
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Name : |
Mr. R.P Gupta |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mrs. Lakshmi Gurung |
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Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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SHAREHOLDING OF
PROMOTER AND PROMOTER GROUP |
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Indian a)
Individuals/ Hindu Undivided family b)
Bodies corporate |
2821972 215172 |
66.4190% 5.06445 |
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Foreign Total shareholding of promoter and promoter group |
3037144 |
71.4834% |
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PUBLIC
SHAREHOLDING |
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Institutions Non-
Institutions
a)
Individual shareholders holding nominal share capital upto Rs. 0.100
million b)
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million
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-- 296857 760484 153700 555 |
---- 6.9869% 17.8990% 3.6175% 0.0131% |
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Shares held by custodian and against which depositary receipts have
been issued |
--- |
---- |
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Total: |
4248740 |
100.0000% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Technical Grade Pesticides |
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Products : |
ITC Code: 291221.00
ITC Code: 380810.29
ITC Code: 380810.24 |
PRODUCTION STATUS As On 31.03.2007
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production* |
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Technical Grade Pesticides |
MT |
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1000 |
643 |
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Pesticides Formulations |
MT |
|
600 |
278 |
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Intermediates |
MT |
|
400 |
736 |
Notes:
- Installed capacities are interchangeable between different products
- *Net of capative consumption and as certified by the management and
relied on by the auditors being a technical matter.
GENERAL
INFORMATION
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Bankers : |
State Bank of India |
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Facilities : |
Secured loans: Working capital borrowing as on 31.03.2007
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Auditors : |
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Name : |
B.K. Geol and Associates (Chartered Accountant) |
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Address : |
P-16, N.D.S.E- II, New Delhi-110049, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4248740 |
Equity Shares |
Rs. 10/-
each |
Rs. 42.487
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
42.487 |
42.487 |
42.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
252.177 |
243.420 |
227.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
294.664 |
285.907 |
270.400 |
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LOAN FUNDS |
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1] Secured Loans |
43.698 |
41.171 |
7.500 |
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2] Unsecured Loans |
10.950 |
25.600 |
40.000 |
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TOTAL BORROWING |
54.648 |
66.771 |
47.500 |
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DEFERRED TAX LIABILITIES |
7.895 |
6.866 |
0.000 |
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TOTAL |
357.207 |
359.544 |
317.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
57.197 |
62.004 |
52.600 |
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Capital work-in-progress |
5.649 |
3.808 |
0.000 |
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INVESTMENT |
23.179 |
13.159 |
66.500 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
61.266 |
77.625 |
66.500 |
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Sundry Debtors |
166.445 |
131.373 |
43.600 |
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Cash & Bank Balances |
7.618 |
3.272 |
10.100 |
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Other Current Assets |
2.768 |
1.242 |
0.000 |
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Loans & Advances |
58.582 |
109.311 |
49.700 |
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Total
Current Assets |
296.679 |
322.823 |
169.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
24.892 |
42.086 |
22.600 |
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Provisions |
0.605 |
0.164 |
2.000 |
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Total
Current Liabilities |
25.497 |
42.250 |
24.600 |
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Net Current Assets |
271.182 |
280.573 |
198.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
357.207 |
359.544 |
317.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
590.552 |
476.400 |
500.900 |
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Other Income |
11.510 |
20.334 |
24.600 |
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Total Income |
602.062 |
496.734 |
525.500 |
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Profit/(Loss) Before Tax |
12.378 |
23.782 |
18.600 |
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Provision for Taxation |
0.201 |
0.362 |
8.500 |
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Profit/(Loss) After Tax |
12.177 |
23.420 |
10.100 |
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Export Value: |
244.375 |
213.957 |
NA |
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Imports : |
71.024 |
39.798 |
NA |
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Expenditures : |
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Cost of Goods Sold |
475.720 |
366.950 |
0.000 |
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Manufacturing Expenses |
43.903 |
36.907 |
19.900 |
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Administrative Expenses |
26.395 |
26.209 |
25.900 |
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Interest |
5.203 |
6.776 |
7.700 |
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Depreciation & Amortization |
9.588 |
8.469 |
8.900 |
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Other Expenditure |
28.875 |
27.641 |
444.500 |
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Total Expenditure |
589.684 |
472.952 |
506.900 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th
Quarter |
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Sales turnover |
116.700 |
181.800 |
181.700 |
210.100 |
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Other income |
2.200 |
5.300 |
0.000 |
2.700 |
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Total Income |
118.900 |
187.100 |
181.700 |
212.800 |
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Total
expenditure |
111.700 |
164.500 |
162.000 |
197.700 |
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Operating profit |
7.200 |
22.600 |
19.700 |
15.100 |
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Interest |
1.100 |
1.700 |
1.500 |
0.200 |
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Gross profit |
6.100 |
20.900 |
18.200 |
14.900 |
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Depreciation |
2.100 |
2.200 |
2.200 |
2.300 |
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Tax |
1.300 |
6.200 |
5.600 |
4.800 |
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Reported PAT |
2.700 |
12.500 |
10.400 |
14.400 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
|
0.21 |
0.21 |
0.16 |
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Long Term Debt Equity Ratio |
|
0.06 |
0.12 |
0.08 |
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Current Ratio |
|
3.76 |
4.49 |
5.20 |
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TURNOVER RATIOS |
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Fixed Assets |
|
3.31 |
2.84 |
3.24 |
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Inventory |
|
7.79 |
7.43 |
9.48 |
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Debtors |
|
3.88 |
3.70 |
3.93 |
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Interest Cover Ratio |
|
2.88 |
3.80 |
3.42 |
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Operating Profit Margin (%) |
|
4.95 |
8.76 |
7.03 |
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Profit Before Interest And Tax Margin (%) |
|
3.29 |
6.95 |
5.25 |
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Cash Profit Margin (%) |
|
3.19 |
5.14 |
3.79 |
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Adjusted Net Profit Margin (%) |
|
1.52 |
3.34 |
2.02 |
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Return On Capital Employed (%) |
|
5.41 |
9.63 |
8.55 |
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Return On Net Worth (%) |
|
3.03 |
5.57 |
3.81 |
LOCAL AGENCY
FURTHER INFORMATION
Profile:
- Established in
the year 1989 as a backward integration project.
- An ISO 9001:2000 & ISO 14001:2000 Certified Company.
- Manufacturer
of Technical Grade Pesticides / Intermediates confirming to International
Standards.
- Plant
capacity more than 2000 mt P.A
- Formulation
facilities available for bulk packing.
- Government Approved well
established R&D center led by a team of highly qualified
people.
- Pilot plant
facility to undertake process research on new products.
- In house
facility for treatment of solid, liquid and gaseous effluent treatment
system.
- Permanent
Registration No. with Dun & Bradstreet is 91-846-1229.
- Export House
status granted by Government of India.
- A Public
Limited company with more than 30% stake of Indian Public.
- Listed on the
National Stock Exchange.
Financial
Highlights:
During the Year, gross receipts were Rs. 602.000 millions as compared to
Rs. 496.700 millions in the previous year, registering a growth of 21.20%.
Exports during the year were Rs. 244.400 millions as compared to Rs. 214.000
millions in the previous year. Profit after tax has decreased to Rs. 8.800
millions as compared to Rs. 15.400 millions previous year mainly due to decline
in other income from Rs. 20.300 millions to Rs. 11.500 millions.
Shifting of Office
of Registrar and Transfer Agent (RTA):
Directors are pleased to inform, the office or RTA i.e. In time spectrum
Registry limited have moved to A-40, 2Nd floor, Naraina Industrial
Artea, Phase-II, Near Batra Banquet Hall, New Delhi-110028 With better
facilities to serve better.
Industry Structure
and Development:
The subject is
engaged in the business of agrochemicals. In Indian agro chemicals industry,
there is equal presence of Multinational as well as Indian Companies. The MNCs
have focused on high-end speciality products whereas Indian players have
focused on generic and off-patent products. With the growth of Indian economy
and the emphasis placed by the Government on improving productivity in the
Agriculture sector, the agrochemicals industry has a pivotal role to play. The
subject has built up large capacities and has many players resulting in high
level of competition. Due to seasonal nature of the business and uncertainties
involved in the coverage of monsoon, a large inventory is required to be
maintained.
Outlook
Having regard to
the thrust given by the Central Government to the agriculture sector and
overall normal monsoon, the outlook for the current year 2007-08 appears to be
good barring unforeseen circumstances.
Further, during
the year, the subject got some new registrations of the products and one new
product has been manufactured by the subject.
Risk, Concern and
Threats:
The overall
pesticides business is dependent on weather and sudden change in the weather
affects the demand for the agrochemicals and this kind of risk will always
remain in this industry. Due to the unusual increase in crude oil prices
globally, the prices of raw materials have consequently gone up, this has
adversely affected the input cost. However, the sale price has not improved in
same proportion. Even though, the agrochemical industry plays a very positive
role to increase the productivity of the agriculture but there is always a
negative perception in the minds of the people and environmentalists about its
effects on environment and agriculture produce. The subject has to maintain a
large inventory and offers extended credit due to seasonality of agricultural
operations and at times when the monsoon is not favourable, the subject suffers
and has to incur high cost of interest. Foreign Exchange Fluctuations -
Significant part of the turnover comprises of export. Falling Dollar value in
terms of Rupees was a matter of concern to subject. Subject has started hedging
measures for its foreign exchange fluctuation risk.
Dividend:
With a view to conserve the company’s resources directors have not
recommended any dividend for this financial year.
Contingent Liability:
|
Particulars |
31.03.2007(Rs. In Millions) |
31.03.2006(Rs.InMillions) |
|
Counter guarantee given to the banks in respect
of guarantee given by them |
0.833 |
0.280 |
|
Guarantee given to sales Tax Authorities
under Local and Central Sales Tax Act for Business associates |
0.760 |
0.670 |
Fixed Assets:
- Land
- Building
- Plant and
Machinery
- Furniture and
Fixture
- Office Equipments
- Vehicles
- R and D
equipments
Website Details
Attached:
Subject well equipped laboratories with modern and sophisticated
instruments such as H.P.L.C.,
G.C., I.R.U.V., Spectrophotometer, Polarimeter and Karl Fischer Titrators etc. All equipments used in
manufacturing, testing and packaging of the materials are regularly maintained
and calibrated both at our in-house and by third party laboratories. High
quality performance standards are achieved through qualified and experienced
staff, modern equipment, documented procedures and an established quality
assurance system.
Technical staff who are highly qualified and experienced in chemical research
analytical development, safety-health environment, regulatory requirements,
engineering and information technology, quality assurance, IPF etc. They
provide a comprehensive and complete technical support. Complementing them
qualified and well trained chemists, quality assurance and control personnel.
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.42.54 |
|
UK Pound |
1 |
Rs.84.86 |
|
Euro |
1 |
Rs.66.95 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
---- |
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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 |
|
45 |
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 |
|