MIRA
INFORM REPORT
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Report Date : |
05.08.2011 |
IDENTIFICATION DETAILS
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Name : |
SABERO ORGANICS GUJARAT LIMITED |
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Registered Office : |
Plot No. 2102, G.I.D.C., District Bulsar, Sarigam – 396
155, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
29.11.1991 |
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Com. Reg. No.: |
04-020753 |
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Capital
Investment / Paid-up Capital : |
Rs. 337.975 Millions |
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CIN No.: [Company
Identification No.] |
L24110GJ1991PLC020753 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS15850C / SRTS05781G |
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PAN No.: [Permanent
Account No.] |
AABCS5313C |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of chemical intermediates for the pesticides and flame-retardant industries. |
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No. of Employees
: |
About 300 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (47) |
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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 4600000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track records. Financial position of the company appears to be sound. Trade relations
are fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/ Factory : |
Plot No. 2102, G.I.D.C., District Bulsar, Sarigam – 396
155, |
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Tel. No.: |
91-260-2780395/ 2780396/ 915/ 2780852/ 3918500 |
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Fax No.: |
91-260-2780853/ 3918500 |
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E-Mail : |
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Website : |
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Corporate Office
: |
A-302, |
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Tel. No.: |
91-22-24960979/ 24960978/ 24981198/ 24982032/ 30017600 /61132400 |
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Fax No.: |
91-22-24953727 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Hero J. Chuganee |
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Designation : |
Chairman |
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Qualification : |
B.Sc., MII CHE, D.Chem E-London, AMP, |
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Date of Appointment : |
29th November, 1991 |
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Name : |
Mr. Mohit H. Chuganee |
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Designation : |
Vice Chairman and Managing Director |
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Qualification : |
B.S. in Electrical
Engineering, Virginia Tech, |
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Date of Appointment : |
29th November, 1991 |
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Name : |
Mr. Sumit H. Chuganee |
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Designation : |
Executive Vice Chairman and Whole-Time Director |
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Qualification : |
B.S., in
Electrical Engineering Virginia Tech, M.B.A. in |
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Date of Appointment : |
15th Sept., 1993 |
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Name : |
Mr. S.R.B. Nair |
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Designation : |
Whole Time Director and Chief Operating Officer (Upto 31/07/2010) |
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Name : |
Mr. John R. English |
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Designation : |
Director |
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Name : |
Mr. Raj Tandon |
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Designation : |
Director |
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Name : |
Mr. Anand Swaminathan |
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Designation : |
Director |
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Name : |
Mr. Rajesh Sharma |
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Designation : |
Whole-time Director and Chief Operating Officer (w.e.f. 31/07/2010) |
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Name : |
Mr. Kishore
Dudani |
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Designation : |
Director (w.e.f. 30/07/2010) |
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Name : |
Dr. Mahendra S. Kothari |
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Designation : |
Additional Director (w.e.f. 28th March, 2009) |
KEY EXECUTIVES
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Name : |
Ms. Pritam P. Vartak |
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Designation : |
Company Secretary |
COMPANY SECRETARIAL CONSULTANTS
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Name : |
Rathi and Associates |
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Designation : |
Company Secretaries |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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6,195,022 |
18.29 |
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6,195,022 |
18.29 |
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5,063,393 |
14.95 |
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5,063,393 |
14.95 |
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Total shareholding of Promoter and Promoter Group (A) |
11,258,415 |
33.24 |
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(B) Public Shareholding |
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432,870 |
1.28 |
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300 |
- |
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4,267,834 |
12.60 |
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4,701,004 |
13.88 |
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5,619,146 |
16.59 |
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5,165,451 |
15.25 |
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1,514,297 |
4.47 |
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5,607,764 |
16.56 |
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5,098,104 |
15.05 |
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120,098 |
0.35 |
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2,100 |
0.01 |
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313,572 |
0.93 |
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62,490 |
0.18 |
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11,400 |
0.03 |
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17,906,658 |
52.87 |
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Total Public shareholding (B) |
22,607,662 |
66.76 |
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Total (A)+(B) |
33,866,077 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 MillionBUSINESS DETAILS
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Line of Business : |
Manufacturing of chemical intermediates for the pesticides
and flame-retardant industries. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2010)
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Inorganic Compounds |
MT |
|
16200 |
9127.33 |
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Organo Phosphorus Intermediates |
MT |
|
15120 |
2727.15 |
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Pesticides |
MT |
|
41600 |
20084.14 |
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Pesticides Formulation [in MT] # |
MT |
|
10000 |
1690.85 |
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Pesticides Formulation [in KL] # |
MT |
|
10000 |
2491.45 |
Notes:
# represents quantities produced in the factory
of a third party on job work basis
GENERAL INFORMATION
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No. of Employees : |
About 300 (Approximately) |
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Bankers : |
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Facilities : |
NOTES: 1 The above Term Loans are
secured by a first mortgage on the immovable properties, both present and future
and a first charge by way of hypothecation of all the movables (save and
except book debts), present and future, ranking pari passu inter se, subject
to prior charges created in favour of the Bankers on the inventories and
other movables for securing the borrowings for working capital requirements. 2 Working capital loans from
banks are secured by a first charge by way of hypothecation of all tangible
assets including stocks of raw materials, work-in-process, finished goods and
book debts and a second charge on the immovable properties, both present
& future. 3 Other Loans are secured by
hypothecation of earmarked vehicles acquired there against. 4 Borrowings from Banks and
Financial Institutions are personally guaranteed by three Directors of the
Company. 5 A Financial Institution
under certain circumstances of default by the company, has an option to
convert the outstanding Term Loan in to fully paid-up equity shares of the
company, at par, at any time during the currency of the Term Loan. 6 Installments due within one
year for term loans Rs. 75.290 Millions (P.Y. 78.465 Millions) and in case of
other loans Rs. 3.009 Millions (P.Y. Rs. 2.319 Millions). |
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Banking
Relations : |
Fair |
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Auditors : |
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Name : |
SMNP and Company Chartered Accountants |
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Address : |
304, Chartered House, 297/ 299, |
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Tel. No.: |
91-22-22085422 |
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Fax No.: |
91-22-22008360 |
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E-Mail: |
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Website : |
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Solicitors : |
v
Manilal Kher Ambalal and Company v
Rajani Associates |
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Subsidiaries : |
Sabero Australia Pty Limited Address: Level 12, Gateway, Macaquarie 1 Place, E-mail : mails@sabero.com
Address: Markerwaardweg 8, 1606 AS Venhuizen, The E-mail : mails@sabero.com
Address: Rua Idalina Dornas No 227, 35681 - 156, Bairro Universitario,
Itauna, Minas Gerais, E-mail : mails@sabero.com Sabero Argentina S.A. Address: Viamonte 850, (1832) E-mail : mails@sabero.com |
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Associates |
-
Sabero Echostar ( -
Harvard Finance Company Private Limited -
Markan Argoquimica Ltda. -
Mosum Enterprises Limited -
Sabero Organics Phillipines Asia Inc. |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,60,00,000 |
Equity Shares |
Rs.10/- each |
Rs.360.000 Millions |
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
3,38,09,105 |
Equity Shares |
Rs.10/- each |
Rs.338.091 Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,38,09,105 |
Equity Shares |
Rs.10/- each |
Rs.338.091 Millions |
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Less : Calls in arrears (others) |
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Rs.0.116 Million |
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Total |
|
Rs. 337.975
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
337.975 |
291.824 |
291.824 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
812.155 |
436.787 |
218.884 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1150.130 |
728.611 |
510.708 |
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LOAN FUNDS |
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1] Secured Loans |
819.842 |
758.095 |
516.144 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
819.842 |
758.095 |
516.144 |
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DEFERRED TAX LIABILITIES |
112.972 |
63.444 |
45.842 |
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TOTAL |
2082.944 |
1550.150 |
1072.694 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
919.328 |
893.859 |
582.458 |
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Capital work-in-progress |
6.103 |
23.840 |
13.017 |
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INVESTMENT |
5.319 |
5.319 |
0.779 |
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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 |
550.359 |
488.960 |
396.601 |
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Sundry Debtors |
757.758 |
562.987 |
272.946 |
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Cash & Bank Balances |
192.944 |
184.183 |
132.418 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
433.409 |
405.149 |
237.485 |
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Total
Current Assets |
1934.470 |
1641.279 |
1039.450 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
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|
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Sundry Creditors |
653.196 |
868.545 |
511.888 |
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Current Liabilities |
122.027 |
92.546 |
40.964 |
|
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Provisions |
15.513 |
53.056 |
10.158 |
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Total
Current Liabilities |
790.736 |
1014.147 |
563.010 |
|
|
Net Current Assets |
1143.734 |
627.132 |
476.440 |
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MISCELLANEOUS EXPENSES |
8.460 |
0.000 |
0.000 |
|
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TOTAL |
2082.944 |
1550.150 |
1072.694 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
4303.193 |
3666.608 |
1961.007 |
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Other Income |
37.124 |
15.381 |
23.680 |
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TOTAL (A) |
4340.317 |
3681.989 |
1984.687 |
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Less |
EXPENSES |
|
|
|
|
|
|
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Materials Consumed |
2496.821 |
2459.624 |
1266.945 |
|
|
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Employee related expenditure |
165.917 |
120.846 |
98.023 |
|
|
|
Manufacturing, Administrative & Other
Expenses |
763.293 |
552.133 |
337.177 |
|
|
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Variation in Inventories |
53.378 |
21.216 |
9.522 |
|
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|
Miscellaneous Expenditure written off |
2.115 |
0.000 |
0.000 |
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TOTAL (B) |
3481.524 |
3153.819 |
1711.667 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
858.793 |
528.170 |
273.020 |
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Less |
FINANCIAL
EXPENSES (D) |
170.495 |
171.411 |
148.273 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
688.298 |
356.759 |
124.747 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
74.948 |
56.673 |
52.757 |
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|
|
|
|
|
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PROFIT BEFORE
TAX (E-F) (G) |
613.350 |
300.086 |
71.990 |
|
|
|
|
|
|
|
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Less |
TAX (I) |
223.741 |
82.379 |
19.062 |
|
|
|
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|
|
|
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|
PROFIT AFTER TAX
(G-I) (J) |
389.609 |
217.707 |
52.928 |
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|
|
|
|
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|
|
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Prior Period Adjustments |
(2.478) |
0.196 |
(0.031) |
|
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|
|
|
|
|
|
|
|
Amount Available for Appropriation |
387.131 |
217.903 |
52.897 |
|
|
|
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|
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
40.625 |
0.000 |
NA |
|
|
|
Dividend |
6.905 |
0.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
339.601 |
217.903 |
NA |
|
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|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
2165.815 |
2209.151 |
801.499 |
|
|
|
|
|
|
|
|
|
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IMPORTS |
1258.698 |
1425.602 |
567.864 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) -
Basic -
Diluted |
13.18 13.15 |
7.47 7.47 |
1.88 1.88 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
|
Sales Turnover |
1001.040 |
1299.710 |
928.700 |
897.750 |
|
Total Expenditure |
820.990 |
1124.410 |
862.300 |
916.300 |
|
PBIDT (Excl
OI) |
180.050 |
175.300 |
66.400 |
(18.550) |
|
Other Income |
4.190 |
22.300 |
10.400 |
31.110 |
|
Operating
Profit |
184.240 |
197.600 |
76.800 |
12.560 |
|
Interest |
37.540 |
34.520 |
40.200 |
45.140 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
(58.600) |
|
PBDT |
146.700 |
163.080 |
36.600 |
(91.180) |
|
Depreciation |
19.080 |
20.880 |
20.200 |
20.340 |
|
Profit
Before Tax |
127.620 |
142.200 |
16.400 |
(111.520) |
|
Tax |
43.130 |
49.440 |
6.000 |
(30.070) |
|
Reported PAT |
84.490 |
92.760 |
10.400 |
(81.450) |
|
Extraordinary Items |
(0.620) |
(5.400) |
0.000 |
6.020 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
84.490 |
87.360 |
10.400 |
(75.430) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.98 |
5.91 |
2.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.25 |
8.18 |
3.67 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.49 |
11.84 |
4.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.53 |
0.41 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.40 |
2.43 |
2.10 |
|
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|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.45 |
1.62 |
1.85 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject was incorporated in Nov.'91, was promoted by Hero J Chuganee and associates along with the Gujarat Industrial Investment Corporation (GIIC). The associate sector company has been set up to manufacture chemical intermediates for the pesticides and flame retardant industries. Subject came out with its maiden public issue in Jan. '94 to part-finance setting up of facilities for the manufacture of 5115 tpa of phosphorus trichloride, 2150 tpa of trimethyl phosphite and 1730 tpa diethyl thiophosphoryl chloride at Sarigam, Gujarat. One of the company's intermediate products, DETC, company intends to substantially increase the sales of this products through higher capacity utilisation and increase market penetration. Company is one of the few global manufacturers of this product. Comapny has new core product, Glyphosate the world larget selling herbicide and holds great potentials. Company is actively promoting this product and has executed orders for supply from its overseas customers. The Company's other products namely TMP/TEP, PSCL3, PCL3, DETC, Acephate etc are exported very well. Company has launched additional pesticide formulation namely "Glyweed", "Robust" and "Phosgrow" and hopes to achieve a higher sales turnover in pesticide formulation. During 1999-2000, SOGL commenced production of mancozeb, a fungicide and stablilised the acephate and glyphosate plants.
OPERATIONS:
The Company’s net sales increased to Rs. 4303.193 Millions
in 2009-10 from Rs.3666.608 Millions in 2008-09, registering a growth of more
than17% compared to Previous Financial Year. The Company’s net domestic sales
increased by 41% and it constitute more than 41% of
overall sales in 2009-10. The Company has reported a better margin with net
profit before taxes at Rs.613.35 Millions in 2009-2010 as against Rs.300.086
Millions in 2008-09. The profit after taxes also increased and was Rs.387.131
Millions in 2009-10 as compared to Rs.217.903 Millions in 2008-09.
EXPANSION PROGRAM:
The Company is currently in the process of setting up an
exportoriented unit for technical active ingredients, their formulations at
Dahej SEZ in
DIRECTORS:
In accordance with the provisions of the Companies Act,
1956 and the Articles of Association of the Company, Mr. Raj Tandon and Mr.
Hero Chuganee, Directors of the Company retire by rotation and being eligible,
offer themselves for re-appointment at the ensuing Annual General Meeting.
Mr. Hero Chuganee, one of the Promoters and Executive
Chairman since last two decades, under whose guidance and supervision the
Company has achieved number of milestones and the present position in the Agro
Chemical Industry of India, has considering his age and to make way for the
young blood, has stepped down from the Executive Directorship of the Company
with effect from 17th April 2010. However, at the request of the Board he has
agreed to remain associated with the Company as a Non Executive Chairman to
provide his expert services to the Company for its further growth.
Mr. Anand Swaminathan, resigned as a Director of the
Company with effect from 26th May 2010. Mr. S.R. B. Nair also resigned as a
Whole time Director and Chief Operating Officer (COO) of the Company w.e.f. 31st
July, 2010. The Board places on record its appreciation for the benefits and
contribution received by the Company from their rich and vast knowledge in
various areas.
Mr. Rajesh Sharma and Mr. Kishore Dudani who were
appointed as Additional Directors w.e.f. 30th July, 2010 pursuant to the
provisions of Section 260 of the Companies Act, 1956 and in accordance with the
Articles of Association of the Company, will vacate their respective offices on
the date of the ensuing Annual General Meeting of the Company.
The Company has received Notices pursuant to Section 257
of the Act from Shareholders of the Company along with requisite Deposit,
proposing the candidature of Mr. Rajesh Sharma and Mr. Kishore Dudani for the
offices of the Director of the Company, liable to retire by rotation. Requisite
resolutions have been proposed in the Notice of the ensuing Annual General
Meeting for appointment of Mr. Rajesh Sharma and Mr. Kishore Dudani as the
Directors of the Company.
BUSINESS ENVIRONMENT AND INDUSTRY OVERVIEW
Global Agrochemical Industry:
There is great potential in the global agrochemical
industry, which has grown from USD 25.8 billion in the year 2001 to USD 41.7
billion in 2008. The industry is expected to be worth USD 196 billion by 2014,
with Asian markets accounting for nearly 43% of the total revenues.
Indian Agrochemical industry:
As the Company directly depends on Agriculture Industry,
the Agrochemical Industry’s performance is based on the success and performance
of the Agriculture Industry. The Indian Agriculture Industry provides significant
support for economic growth and social transformation of the country. As one of
the world’s largest agrarian economies, the agriculture sector (including
allied activities) in
60% of the workforce. Agriculture Growth Rate had grown
earlier but in the last few years it is constantly declining. Still, the Growth
Rate of Agriculture in
Inspite of its decline in the share of the country’s GDP Agriculture
Growth Rate plays a very important role in the all round economic and social
development of the country. Agriculture Growth Rate in
The Indian Agrochemical Industry which is estimated at USD
1 billion ranks 2nd in
Demand for Agrochemicals is expected to be very strong in
the coming years due to the following reasons:
· International comparisons reveal that the average yield
in
· The World’s population is currently 6.7 billion and 750
million people are born every year. The population is expected to reach 9
billion by 2050. To keep pace with the growing population, food production,
especially in developing countries will have to double by 2050.
· The farmers will have to boost their yields. This will
encourage the demand for agrochemicals, being one of the key inputs to increase
in yields.
· Crop prices remain stable and are on an uptrend for the
last one year, improving the profitability of the farmer.
COMPANY’S PERFORMANCE
The Company has a diversified product portfolio for
Insecticides, Herbicides, Fungicides and Specialty chemicals.
In the current financial year, the company has plans to
introduce new products in the market viz. Pretilachlor (rice herbicide),
Tricyclazole (rice fungicide), Triclopyr (Herbicide) and Propineb (broad
spectrum fungicide). With these new products, the company hopes to grow these
businesses to a respectable size in the coming years. In propineb, which is a
broad spectrum fungicide and is a product with global sales of USD 150 million,
the Company hopes to be a viable alternative to the only other supplier of this
product in the world, namely Bayer. Hence, the Company will be the second
manufacturer of this product in the world. The Company already has a
registration package for propineb and the product is under registration in
various countries in Asia and
In the Current Financial Year 2010, the Company was accorded
Trading House status by Ministry of Commerce and Industry, Government of India.
The Company has taken up the expansion program for setting
up an export –oriented unit of technical active ingredients at Dahej SEZ,
The Company’s net sales increased to Rs.4303.193 Millions
in 2009-10 compared to Rs.3666.608 Millions in 2008-09. The domestic sales have
shown a good growth of over 41% in 2009-2010, contributing to 41% of the
overall sales of the Company in 2009-10. The Company has reported a better
margin with net Profit of Rs.389.609 Millions in 2009-10 as compared to
Rs.217.707 Millions in 2008-09. The debt equity ratio is 0.71 as of 31st March,
which reveals healthy financial position of the Company.
After successful completion of the expansion program which
was taken up in 2008-09, resulted in significant increase in the capacity of
Herbicide segment. To achieve the benefit of increased capacity of Herbicide
segment, the Company has decided to focus on the European market with more
efforts. As a first step it has obtained registration of Glyphosate, an
environmental friendly formulation in
Europe which will ensure it to remain an important and
serious player of glyphosate in
In Fungicides Segment, the Company’s key product Mancozeb
has been performing very well as per expectations. The global market for the
said product is estimated at US $ 600 million. Further, the Company
manufactures entire range of formulations of Mancozeb viz. granules, oil
suspension, wettable powder, suspension concentrate. Hence the Company has an
edge over the other manufacturers who offer only specific range of product.
Additionally, the Company being the second largest producer of the said product
and having 240 registrations world wide will definitely help to boost its share
in the global market and in India. The Company expects to obtain registrations
for Mancozeb in a number of countries where it is not currently present such as
its product is under testing and approval from all the
main global plantation companies.
In Insecticides Segment, the Company manufactures and has
a strong presence in the local and international market for its main product,
Monocrotophos. It is currently one of the largest manufacturers of Monocrotphos
and has completely backward integrated products such as Acephate,
Chlorpyriphos, Dichlorovos and Methamidophos. The Company has obtained
registration for chloropyriphos in
FUTURE OUTLOOK
The Indian Agriculture Industry is on the brink of a
revolution that will modernize the entire food chain, as the total food
production in
In the domestic market, the country has been able to
manage one of the most deficient monsoons with concerted efforts of the
Governments. Several incentives and concessions allowed to farmers by the
States and the Central Government resulted in motivation for growth. The
sector, however, faces various challenges which need to be addressed sooner
than later. Although the yield per hectare of food grains has shown some
improvement in recent years, it is not significant enough to cater to the needs
of the rising population, particularly when income levels are also rising.
Since farm productivity is not showing desirable growth there is an need to
focus on research as well as better agricultural practices to ensure that
productivity levels are increased in the shortest time possible. Hence there is
a lot of scope available for further improvement in the productivity,
cultivation techniques and effective use of arable land with amalgamation of
fragmented land which can provide further scope in the domestic market.
Secondly, with a major step towards favourable policy
environment and availability of credit at reasonable rates for the private
sector will attract more private investment in the agriculture sector which can
further boost the growth in the sector. However, the Agriculture Sector is
still a matter of concern after the global meltdown in fiscal 2008-09 which had
resulted in slow down of economy and recession all over the world. Though with
strong all round efforts and stimulation packages as announced by the
Government the industrial sector has shown some recovery, but the Agriculture
sector has not responded to the favourable environment. In the international
market, Agrochemical Industry is expected to grow at a CAGR of 10.4% from 2009
to 2014 to $196 billion in which
share of nearly 40 percent. With all the large
agricultural nations like U.S,
consumers of agrochemicals, which have made
AUDITED
FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2011
(Rs. In millions)
|
Particulars |
Year Ended 31.03.2011 (Audited) |
|
Gross Sales |
4406.900 |
|
Less : Excise |
279.700 |
|
(a) Net Sales/ Income from
operation |
4127.200 |
|
(b) Other Operating Income |
68.000 |
|
Total Income |
4195.200 |
|
2. Expenditure |
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
(146.900) |
|
b. Consumption of Raw-Materials |
2773.700 |
|
d. Employees Cost |
199.700 |
|
e. Depreciation |
80.500 |
|
f. Other Expenditure |
897.500 |
|
g. Total |
3804.500 |
|
6. Interest |
157.400 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
233.300 |
|
8. Exceptional Items |
58.600 |
|
9. Profit(+)/ Loss (-) from ordinary activities before Tax (7-8) |
174.700 |
|
10. Tax Expenses |
68.500 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
106.200 |
|
12. Extraordinary Items |
-- |
|
13. Net Profit (+)/ Loss(-) for the period
(11-12) |
106.200 |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
3385 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
|
|
16. Earning per Share (EPS) |
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
3.14 |
|
b) Basic and diluted EPS after extraordinary items for the period,for
the year to date and for the previous year (not annualised) |
3.14 |
|
17. Public Shareholding |
|
|
Number of Shares |
19559715 |
|
% of Share holding |
57.76% |
|
18. Promoters and promoter group Shareholding |
|
|
a) Pledged/Encumbered |
-- |
|
- Number of shares |
-- |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
-- |
|
- Percentage of shares (as a %
of the total share capital of the
company) |
-- |
|
b) Non-encumbered |
|
|
- Number of shares |
14306362 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
100% |
|
- Percentage of shares (as a %
of the total share capital of the
company) |
42.24% |
Notes:
- The above results have been reviewed by the
Audit Committee and approved by the Board of Directors at their meeting
held on 27th May 2011.
- Sales were 4% less from the previous
financial year, due to two plants shutdowns related to the project
execution and
- The Export Sales of the Company for the
financial year 2010-11 was Rs. 2250.458 millions constituting 54.53% of
the total Sales, while the Domestic Sales was Rs. 18763.722 millions
constituting 45.47% of the total Sales.
- Of the Expansion Project of Rs. 300.000
millions at Sarigam, Insecticides Expansion, after some delay, was
completed and the plant is being stabilized. The Fungicide plant is
expected to be completed by the next quarter. The Company also has
invested Rs. 110.000 millions in 2010- 11 to expand and strengthening its
EMS Infrastructure and System to take care of next phase of growth.
- The Dahej Project is progressing and is
expected to start trial run in Jan-Mar 2012.
- Extraordinary items totaling to Rs.58.600
millions are related to balances written off during the year related to
goods lost by fire(net of insurance claim), Excise and VAT, that resulted
during the migration of the Company’s System from Tally to SAP and are of
one time nature.
- The Company has only one segment of activity
viz. Crop Protection Chemicals and Inputs.
- Status of Investor Complaints during the
quarter: Beginning - Nil, Received - 17, Resolved -17, Pending - Nil.
- The figures of previous periods/years have
been regrouped/rearranged wherever considered necessary.
FIXED ASSETS
·
·
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
WEBSITE DETAILS:
CORPORATE PROFILE:
Subject was established in the year 1991 to manufacture
specialty and crop protection chemicals. It is a publicly listed company
on the Bombay Stock Exchange and National Stock Exchange in
The company has an employee strength of over 700 people possessing competent
managerial, technical, supervisory and administrative skills. The Research and
Development department boasts of sophisticated analytical equipment and a well
qualified team of scientists. Technologies of all products manufactured by the
company have been developed in-house and are well accepted and acclaimed by
customers.
Subject has extensive manufacturing facilities with state-of-the-art
sophisticated equipment and PLC based process control. The company has offices
and subsidiaries in Europe,
Subject combines a sharp understanding of its industry with an experienced and
highly committed team of professionals dedicated to their work—a winning
combination indeed.
HISTORY AND
MILSTONE:
Subject founded by the Chuganee family, was incorporated on November 29,
1991, with a vision of building a strong agrochemical business.
1991: Subject was
registered in November, 1991, with a vision of building a strong agrochemical
business
1994: Was listed on the
NSE and BSE ; also began manufacturing Organo Phosphorous pesticide
intermediates namely Phosphorus Tricloride (PCL3), TriMethyl Phosphite (TMP)
and Di-Ethyl Thio Phosphoryl Choride (DETC)
1998: Forward
integrated to manufacture active ingredients - Acephate and Glyphosate
1999: Formed
subsidiaries in
2000: Began production of
Mancozeb and also entered the business of branded formulations, building an
all-India distribution network.
2002: Obtained ISO 9001
certification and also began manufacturing Monocrotophos (Insecticide) and
Dichlorvos. Also expanded international export business to Latin America,
2004: Obtained ISO 9001
and ISO 14001 quality certifications
2005: Started
manufacturing Chlorpyriphos (insecticide)
2006: Set up
subsidiaries in
2008: De-bottlenecked
Acephate and Monocrotophos plants while conducting major expansion plans to
expand Mancozeb, Chlorpyriphos and Glyphosate capacities with majority of the
capital investment in Mancozeb
2009: Started
manufacturing Propineb and also obtained registrations in Europe and
2010: Commenced branded
formulations business in Europe and
Infrastructure,
Facilities and Locations
Subject has expanded its operations with offices and warehouses in over
15 States/Provinces in
The company has extensive manufacturing facilities, all located in the Indian
state of
The company has a state-of-the-art R and D center and a pilot plant with
sophisticated analytical equipment. A well qualified team of research fellows
and scientists work for the continuous improvement of existing products and the
development of new ones. The R and D facilities of the Company are approved by
the Indian regulatory agency CSIR (Council of Scientific and Industrial
Research). The laboratory is in the process of obtaining GLP certification. All
the existing products manufactured by the Company have been developed by its
in-house R and D facilities. Further developmental work is being done on
products, which will be shortly going off patent, including insecticides,
herbicides, fungicides and intermediates which shall ensure that Subject
becomes an agrochemical supplier of choice in the world.
In addition, the company has marketing offices in
PRESS RELEASES:
Q3 FY10 Net Sales up 25% to Rs.1094.100 millions
EBIDTA higher by 113%, PAT at Rs.102.500 millions, up by 104%
Mumbai, January 28, 2010: Sabero Organics is
an established player in the Indian and global agrochemical arena, today
announced its results for the quarter and nine months ended December 31, 2009.
The Company manufactures Active Ingredients, Technicals and Formulations for
each of its product categories namely, Fungicides, Herbicides and Insecticides
and sells these products under its own brand name and also that of its
customers.
In the quarter ended December 31, 2009, Net Sales was recorded at
Rs.1094.100 millions, registering an increase of 25% over Rs.877.600 millions
in the corresponding period last year. EBIDTA was up 113% at Rs.237.200
millions as compared to Rs.111.200 millions in the corresponding quarter.
Profit After Tax for the quarter stood at Rs.102.500 millions as against
Rs.50.000 millions last year up by 104%.
Commenting on the Company’s performance for
Q3 and 9M FY2010, Mr. Sumit Chuganee, Executive Vice Chairman said:
“We are happy to report strong growth for
both the quarters and nine months. This performance has been enabled by
enhanced sales volumes both in
The combination of limited arable land and increasing
food demand is resulting in a strongly increasing demand for agrochemicals. I
look forward to Sabero Organics continuing to deliver good growth and enhancing
value for all its stakeholders”
Sabero Organics has recently obtained three new product registrations
for (a) Chlorpyriphos 500 EC (Insecticide) in
Sabero Organics has also been added as a source in the registrations of
a large European MNC for Mancozeb Technical (Fungicide) in 7 EU countries,
Glyphosate Technical (Herbicide) in 15 EU countries, Acephate Technical and 90%
prills (Insecticide) in USA MNC.
In the current financial year, Sabero Organics has introduced
Methamidaphos, an insecticide, Methamidaphos which is used across several fruit
and vegetable produce and is sold in South America and
Sabero sells its products either as technical/active ingredients, bulk
formulations, small pack formulations in the customer’s brand name or in its
own brand name. Internationally, the Company has marketing offices in
ABOUT SABERO ORGANICS GUJARAT LIMITED
Sabero Organics is an established player in the agrochemical industry
which manufactures and sells a variety of specialty chemicals and crop
protection products. Sabero has a diversified product portfolio for
Insecticides, Herbicides, Fungicides and Specialty chemicals. The main products
namely Mancozeb, Acephate, Glyphosate, Chlorpyriphos are the largest selling
generic products in their respective segments with markets in most regions of
the world. Sabero’s manufacturing facility is located in
With more than 240 product registrations in 50 countries, Sabero has
subsidiaries in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.42 |
|
|
1 |
Rs.72.70 |
|
Euro |
1 |
Rs.63.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
47 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.