MIRA
INFORM REPORT
|
Report Date : |
27.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
PI INDUSTRIES LIMITED |
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Registered Office : |
Post Box No. 20, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
31.12.1946 |
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Com. Reg. No.: |
17-000469 |
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Capital Investment / Paid-up Capital : |
Rs.192.875 Millions |
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CIN No.: [Company
Identification No.] |
L24211RJ1946PLC000469 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHP01697D |
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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 and
Marketing of Pesticides, Industrial Chemicals and Polymers, etc. |
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No. of Employees
: |
1143 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 8400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 1 : |
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Tel. No.: |
91-294-6454304/305
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Fax No.: |
91-294-2491946 |
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E-Mail : |
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Website : |
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Corporate Office : |
4th
Floor, Tower – A, |
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Tel. No.: |
91-124-4159000 /
6790000 |
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Fax No.: |
91-124-4081247 |
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Factory 2 : |
Lane IV, |
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Factory 3 : |
Plot No. 237, GIDC, Panoli, District Bharuch- 313 001, |
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Tel. No.: |
91-2646-272392/320797/655471/72 |
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Fax No.: |
91-2646-272313/348 |
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Regional
Offices : |
Located at : ·
·
Kolkata, ·
Jalandhar, ·
·
·
Ahmedabad, |
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Branches : |
Located at: ·
·
·
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Salil Singhal
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|
Designation : |
Chairman and
Managing Director |
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Address : |
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E-Mail: |
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Date of
Birth/Age : |
21.08.1946 |
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Date of
Appointment : |
03.12.1984 |
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Name : |
Mr. Mayank
Singhal |
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Designation : |
Managing Director
and Chief Executive Officer |
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Address : |
P P Singhal Marg,
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E-Mail: |
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Date of
Birth/Age : |
03.04.1973 |
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Date of Appointment
: |
28.09.1998 |
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Name : |
Mr. Anurag Surana
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Designation : |
Whole Time
Director |
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Address : |
Ameya Plot No. 1
/ 2, B/H Sagar Darshan Apartment, Devali, |
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E-Mail: |
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Date of
Birth/Age : |
22.01.1965 |
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Date of
Appointment : |
30.09.1998 |
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Name : |
Mr. Narayan K
Seshadri |
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Designation : |
Director |
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Name : |
Mr. Raj Kaul |
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Designation : |
Director |
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|
Name : |
Mr. Pravin K.
Laheri |
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Designation : |
Director |
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Name : |
Mr. Bimal Kishore
Raizada |
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Designation : |
Director |
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Name : |
Mr. Rahul
Raisuarna |
|
Designation : |
Director |
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Name : |
Mr. P. N. Shah |
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Designation : |
Director |
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Name : |
Mrs. Ramni Nirula |
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Designation : |
Additional
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajnish Sarna |
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Designation : |
CFO and President (IT) |
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Name : |
Mrs. Payal M. Puri |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
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|
1353744 |
5.40 |
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|
14590278 |
58.25 |
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Sub Total |
15944022 |
63.65 |
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Total Shareholding of Promoter and Promoter Group
(A) |
15944022 |
63.65 |
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(B) Public Shareholding |
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|
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|
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Mutual Funds / UTI |
512027 |
2.04 |
|
Foreign Institutional Investors |
1576414 |
6.29 |
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Foreign Venture capital Investors |
2088441 |
8.34 |
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|
|
|
|
|
|
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|
2667339 |
10.65 |
|
|
|
|
|
|
1030956 |
4.12 |
|
|
935554 |
3.73 |
|
|
2382066 |
9.51 |
|
|
1626332 |
6.49 |
|
|
1584 |
0.01 |
|
Directors and their
Relatives |
365258 |
1.46 |
|
Non Resident Indians |
41738 |
0.17 |
|
Trust |
347154 |
1.39 |
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Sub Total |
7015915 |
28.01 |
|
Total Public
shareholding (B) |
9014356 |
36.35 |
|
Total (A) + (B) |
25048378 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
Promoter and Promoter Group |
-- |
-- |
|
Public |
-- |
-- |
|
Sub Total |
-- |
-- |
|
Total (A)+(B)+(C) |
25048378 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionsBUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Pesticides, Industrial Chemicals and Polymers, etc. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Organo Phosphorous Compounds/ Industrial Chemicals |
Tones |
11260 |
10090 |
|
Pesticides and other Formulations
|
Tones |
5597 |
53200 |
|
Polyurethane and others |
Tones |
7500 (In term of
Formulations) |
6400 (In term of
Formulations) |
GENERAL INFORMATION
|
No. of Employees : |
1143 (Approximately) |
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Bankers : |
·
State
Bank of ·
State
Bank of ·
State
Bank of ·
ICICI
Bank Limited, 9 A, ·
Canara
Bank, ·
Canara
Bank, ·
Bank
of Rajasthan Limited, ·
Axis
Bank Limited, 151-152, Chetak Marg, ·
IDBI
Bank Limited ·
Export
– Import Bank of ·
Housing
Development Finance Corporation Limited ·
Standard
Chartered Bank of |
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Facilities : |
NOTES: i) Term loans
are secured by way of first charge on pari passu basis by joint equitable mortgage
through deposit of title deeds on all the immovable properties of the Company
and second charge ranking pari passu by way of hypothecation of movable
properties, present and future. Term Loans from Financial Institutions &
Banks includes Rs.Nil (Previous Year Rs.17.242 Millions) Foreign Currency
Loan. ii) Working
capital loans are secured by way of first charge on pari passu basis by
hypothecation of stocks of raw materials, finished and semi finished goods,
stores and spares not related to plant and machinery, bills receivable, book
debts and all other movable properties and additionally secured by way of
second charge on all the immovable properties of the Company in favour of the
consortium bankers. Working Capital
Loan includes Rs.98.698 Millions (Previous Year Rs.118.702 Millions) Packing
Credit Foreign Currency Loan and Rs.12.656 Millions (Previous Year Nil)
Buyers Credit. All the above
loans are collaterally secured by personal guarantees by one or two directors
of the Company as specified in the respective agreements.
Notes: * Pursuant to the Special Resolution passed at the Extra Ordinary
General Meeting of Shareholders on 12th October 2009, the Company has
issued 29,40,000 Optionally Convertible Debentures (OCD) of Rs.100/- each to
Standard Chartered Investments and Loans (India) Limited, on preferential
basis on October 24, 2009. The OCD has lock in period of one year from the
date of allotment. The OCD is optionally convertible into equity shares
within the period of 18 months from the date of allotment. The unconverted
portion of OCD, if any, shall be redeemed at the end of 18 months or may be
further extended by another 18 months, if mutually agreed. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B. D.
Gargieya and Company Chartered
Accountants, |
|
Address : |
Bank of |
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|
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|
Name : |
S. S. Kothari and
Company Chartered
Accountants |
|
Address : |
146 – 149,
Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi – 110065, India |
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|
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Cost
Auditors : |
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Name
: |
K. G. Goyal and
Company Chartered
Accountants, |
|
Address: |
8, Chitra Gupta Nagar,
Jyoti Nagar Railway Crossing, Jaipur – 302 005, |
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Internal
Auditor: |
Protiviti
Consulting Private Limited , 15th Floor, Tower A, |
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Associates : |
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Subsidiaries : |
· Pill Finance and Investment Limited ·
PI
Life Science Research Limited ·
PI Japan Company Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200,00,000 |
Equity shares |
Rs.10/- Each |
Rs.200.000 Millions |
|
50,00,000 |
Preference Shares |
Rs.100/- Each |
Rs.500.000 Millions |
|
|
Total |
|
Rs.700.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11205158 |
Equity shares |
Rs.10/- Each* |
Rs.112.052 Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
111,87,501 |
Equity shares |
Rs.10/- Each* |
Rs.111.875 Millions |
|
8,10,000 |
Non-Cumulative compulsorily Convertible Preference shares |
Rs.100/- Each |
Rs.81.000 Millions |
|
|
Total |
|
Rs.192.875
Millions |
Notes:
934810 Equity shares of Rs.10/- each fully paid up were allotted as
Bonus Shares by capitalisation of reserve in earlier years.
3543754 Equity shares of Rs.10/- each fully paid up were allotted as
Bonus Shares during the year by capitalising Rs.17.500 Millions from capital
redemption Reserve and Rs.17.937 Millions to General Reserve.
37,29,164 Equity Shares of Rs10/- each fully paid up were allotted as
Bonus shares during the year by Capitalising Share Premium Account.
8,10,000 (Previous Year 20,60,000) Non-Cumulative compulsorily
Convertible Preference shares of Rs.100 each **.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
192.875 |
276.875 |
35.438 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1913.468 |
1246.916 |
890.675 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2106.343 |
1523.791 |
926.113 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1559.820 |
1053.229 |
1894.094 |
|
|
2] Unsecured Loans |
924.213 |
450.458 |
144.283 |
|
|
TOTAL BORROWING |
2484.033 |
1503.687 |
2038.377 |
|
|
DEFERRED TAX LIABILITIES |
322.898 |
269.971 |
249.668 |
|
|
|
|
|
|
|
|
TOTAL |
4913.274 |
3297.449 |
3214.158 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2518.181 |
1991.864 |
1782.123 |
|
|
Capital work-in-progress |
320.703 |
86.354 |
74.109 |
|
|
|
|
|
|
|
|
INVESTMENT |
19.677 |
19.677 |
18.122 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED REVENUE EXPENDITURE |
0.000 |
0.000 |
3.698 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1409.800
|
1028.108
|
1042.233 |
|
|
Sundry Debtors |
1762.596
|
1030.757
|
922.619 |
|
|
Cash & Bank Balances |
81.621
|
49.324
|
41.872 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
502.087
|
344.916
|
301.571 |
|
Total
Current Assets |
3756.104
|
2453.105
|
2308.295 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1163.411
|
662.419
|
492.745 |
|
|
Other Current Liabilities |
403.717
|
537.130
|
458.135 |
|
|
Provisions |
134.263
|
54.002
|
21.309 |
|
Total
Current Liabilities |
1701.391
|
1253.551
|
972.189 |
|
|
Net Current Assets |
2054.713
|
1199.554
|
1336.106 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4913.274 |
3297.449 |
3214.158 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7185.693 |
5417.103 |
4614.400 |
|
|
|
Other Income |
7.344 |
11.116 |
7.433 |
|
|
|
TOTAL (A) |
7193.037 |
5428.219 |
4621.833 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Traded Goods |
205.086 |
135.667 |
240.858 |
|
|
|
Cost
of Materials |
4293.723 |
3024.745 |
2725.678 |
|
|
|
Operating
Expenses |
486.606 |
361.588 |
248.921 |
|
|
|
Personnel
Expenses |
551.003 |
432.471 |
395.111 |
|
|
|
Administrative,
Selling and Other Expenses |
663.885 |
528.961 |
488.320 |
|
|
|
Research
and Development Expenses |
55.405 |
51.479 |
49.076 |
|
|
|
Prior period adjustment |
0.028 |
0.031 |
0.025 |
|
|
|
Increase/(Decrease) in Finished Goods |
(295.075) |
22.527 |
(165.767) |
|
|
|
TOTAL (B) |
5960.661 |
4557.469 |
3982.222 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1232.376 |
870.750 |
639.611 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
181.931 |
183.073 |
222.795 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1050.445 |
687.677 |
416.816 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
152.117 |
127.571 |
111.344 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
898.328 |
560.106 |
305.472 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
257.161 |
150.655 |
74.607 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
641.167 |
409.451 |
230.865 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
813.789 |
452.511 |
224.033 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to
General Reserve |
64.117 |
30.710 |
NA |
|
|
|
Dividend |
|
|
|
|
|
|
- Equity Shares – Proposed |
50.024 |
14.917 |
NA |
|
|
|
- Preference Shares – Proposed |
0.008 |
0.009 |
NA |
|
|
|
- Dividend Distribution Tax |
8.309 |
2.537 |
NA |
|
|
|
BALANCE CARRIED
TO THE B/S |
1332.498 |
813.789 |
452.511 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
2470.953 |
2010.095 |
1440.520 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1669.669 |
1139.546 |
1125.529 |
|
|
|
Stores & Spares |
16.856 |
3.421 |
3.533 |
|
|
|
Capital Goods |
25.861 |
9.576 |
79.158 |
|
|
TOTAL IMPORTS |
1712.386 |
1152.543 |
1208.220 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
57.73 |
37.85 |
32.57 |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2011 (1st
Quarter) |
30.09.2011 (2nd
Quarter) |
|
Net Sales |
2067.890 |
2456.240 |
|
Total Expenditure |
1636.340 |
2088.560 |
|
PBIDT |
431.550 |
367.680 |
|
Other Income |
0.000 |
0.000 |
|
Operating Profit |
431.550 |
367.680 |
|
Interest |
50.200 |
47.880 |
|
Exceptional Items |
303.400 |
0.000 |
|
PBDT |
684.750 |
319.800 |
|
Depreciation |
41.580 |
42.070 |
|
Profit Before Tax |
643.150 |
277.730 |
|
Tax |
163.620 |
84.090 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
479.540 |
193.640 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
479.540 |
193.640 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.91
|
7.54
|
5.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.50
|
10.34
|
6.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.32
|
12.60
|
7.47 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.43
|
0.37
|
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.99
|
1.81
|
3.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.21
|
1.96
|
2.37 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL HIGHLIGHTS
Year 2010-11 has
been a year of significant achievements, and witnessed excellent growth in
revenues and profitability.
During the year ,
the net sales of the Company increased to Rs.7190.000 Millions as compared to
Rs.5420.000 Millions in previous year; an increase of 33% YoY. While all
business segments of the company reported strong increase in sales, a key
driver of the growth in sales was 38% YoY increase in the agri input business
of the Company.
The operating
profit of the Company increased to Rs.1236.400 Millions as compared to
Rs.874.700 Millions; an increase of 41% YoY. The operating profit margin
increased to 17.2% in current year from 16.15% in the previous year on account
of improved margins in domestic agri-input, increased revenues from custom
synthesis and polymer compounding business, better capacity utilization and
efficient overheads cost management.
The net profit
(PAT) grew by 56.6% to Rs.641.200 Millions for the year ended 31st March, 2011
from Rs.409.500 Millions in the previous year. Net profit margin increased to
8.92% during the year from 7.56% in the previous year.
The Company’s net
profit on a consolidated basis increased to Rs.651.000 Millions during the
year, as compared to Rs.419.000 Millions in the previous year, a growth of
55.37% YoY. The earning per share (EPS) for the year stood at Rs.57.73 per
share an increase of 53% compared to Rs.37.85 per share for the previous year.
OPERATIONS
The year 2010-11
was marked by a normal monsoon with most districts receiving adequate rainfall.
Total acreages under crops increased to 164.8 million hectares in 2010-11 from
156.4 million hectares in 2009-10, up by 5.08% YoY. Production of food grains
and of many crops reached record highs. The commodity prices remained
remunerative for most of the crops, especially for cash crops like cotton,
chillies, sugarcane, fruits and vegetables, while wheat and rice farmers
realized the increased Minimum Support Prices (MSP).
The year 2010-11
also witnessed volatility in crude prices and consequent upward trend in raw
materials used in manufacture of crop protection products. The industry is
taking a graduated approach to pass on increased product costs to the
customers.
Outperforming the
estimated industry growth of about 15 % for the review year, revenue of the
Company’s agri-input business grew by 38% YoY mainly on account of substantial
growth of newly launched products, volume expansion of some of the existing
products and expanding distribution network in new markets.
The revenue of the
Custom Synthesis Business continues to grow as per plan. The business reported
an increase of 23% YoY. Due to constant efforts made by the Japanese business
development team, the company has commenced commercial production on some very
promising products and revenues from these products are expected in the current
year.
During the year ,
many new inquiries were received in diverse areas of application leading for a
diversified and balanced portfolio of products. The business has an order book
position of ~US$ 300 mn at the end of the year and growing.
One of the key
highlight in the year was the signing of an agreement with the largest
electronics company of the world, M/s Sony Corporation to set up a joint research
centre at Udaipur, named as PI-Sony Research Centre, it was formally
inaugurated in January 2011. This RandD Centre will be engaged in developing
commercially viable processes for molecules invented by Sony.
By this Agreement,
M/s. Sony Corp. has recognized the abilities and commitment of the Company in
research and development of next generation organic chemicals. The outcome of
these researched chemicals would find use in futuristic products like flexible
television, solar cells etc. It is heartening that work on several new
molecules has already started.
The Polymer
business also witnessed substantial growth in the current year based on
traction seen in user industries like automobile, construction material,
electronics, etc. However, the product margins remained under pressure due to
high volatility in their raw material prices. Going by the Company’s strategy
to concentrate on its core businesses of Agri-inputs and Customs Synthesis
business, this business has been divested to
Introduction of
New Products
Striving towards
excellence in building brands and bringing innovations to the farmers, the
company could successfully establish NOMINEE GOLD as the fastest growing
herbicide in
As a part of its
strategy to provide complete crop solutions, the company has successfully
introduced an herbicide in soyabean and pulses segment. The product was
introduced in association with a leading multinational company.
During the period
, the company also filed for registration of another two new molecule expected
to be commercially launched by 2012-2013. The company continues its quest for
new molecules and has signed 4 new agreements with their patent holders to
evaluate them in the herbicide / fungicide segment. These will continue to help
further strengthen the Company’s product portfolio.
The company has
signed a distribution agreement with a leading multinational for the marketing
for its new generation insecticide and acaricide, which will further strengthen
its position in plantation and, field crops, vegetables and fruits.
Apart from this,
in the fine chemicals business area, several new molecules were successfully
synthesized in the areas of agrochemicals, pharmacceticals, imaging, printing
etc. Out of these newly synthesized products, commercial production was
commenced for 4 products.
SUBSIDIARY
COMPANIES
The Company has
three wholly owned subsidiary companies as on March 31, 2011. The members may
refer to the Statement under section 212 of the Companies Act, 1956 and
information on the financials of subsidiaries appended to the above statement
under section 212 of the Companies Act, 1956 in this Annual Report for detailed
information on these subsidiary companies. The key highlights of these
subsidiary companies are as under:
(1) PI Life
Science Research Limited (PILSR):
During the year,
the Company has posted a profit of Rs.7.396 Millions, which was earned on
account of various RandD activities for developing new products.
(2) PI Japan
Company Limited
The Company posted
a profit of JPY Rs.1.269 Millions (Approximately Rs.0.750 Millions) during the
year. Due to the size of operations and local laws, the annual accounts of this
company are not required to be audited. The same have been certified by the
Management of the Company.
(3) PILL Finance
and Investments Limited (PILL-F):
The Company posted
a profit of Rs.0.397 Millions during the year.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
AGRI INPUTS:
The global agrochemical market size is estimated to be USD 4lbn (USD
38.5bn in 2009). Europe is the largest market with 30% share, while
Overall, the domestic agricultural inputs Industry in the year ended
March 31, 2011 witnessed good performance due to normal monsoons and the
agro-chemical industry could scale new heights. The total annual rainfall for
the country during the year 2010 was 121.5 cm against the long period average
(LPA) 119.7 cm. Out of 597 meteorological districts, 29% of the districts (173
districts) received excess rainfall, 40% (240 districts) received normal
rainfall, 29% (173 districts) received deficient rainfall and the remaining 2%
(11 districts) received scanty rainfall during the season
Supported by this well distributed monsoon, food grain area in the
kharif season increased by 5.08% Y0Y and the total food grain production is
estimated to have increased by over 10%. The past year also witnessed in a
record yield of wheat and rice. Pulses also saw a dramatic increase in output.
With the increased area under cultivation, supported by well-distributed rains
and favourable produce prices, the farmers have also invested more in the crop
protection products, resulting in a very remunerative kharif season for the
agrochemical industry.
In 20 10-1 1, the production of food grains was at record high of 232.07
million tonnes as against 218.11 million tonnes during 2009-10. The industry
was also aided by the easing of food inflation from a record high of 20.2% in
Feb 2010 to 9.3% in Feb 2011.
The second crop season (Rabi) was characterized by low pest and disease
occurrence in key crops (especially in rice in the Southern and Eastern parts
of
While India ranks high in production of various commodities such as
milk, wheat, rice, fruits and vegetables, the agriculture sector is at cross
roads with rising demand for food items on the one hand, but inadequate
supplies in many commodities on the other ,resulting in frequent spikes in food
inflation. Increasing agriculture production and productivity is absolutely
necessary, necessary not only for ensuring national food security, livelihood
security, and nutritional security but also for sustaining the high levels of
economic growth envisaged by
To increase the productivity, yields and sustain this over a long period
of time, India needs to adopt a holistic approach, working on agricultural
research, development, dissemination of technology, and work on optimum use of
various agricultural inputs such as quality seeds, fertilizers, pesticides,
mechanization, and irrigation to achieve the critical levels of production. For
instance
There is now an increasing realization that India needs to double its
crop output to meet the growing demand not only due to the increasing
population, but also the rising middle class and its increasing spending power
resulting in the increasing demand for higher quality food and fruits,
vegetables, milk, meat and poultry and this would require the enhanced use of
various inputs such as crop protection chemicals which provide the insurance
against pests
The Govt. of India in the past few years has initiated several steps to
strengthen the supply side of food, though a lot more agricultural reforms need
to come.
• The budget for 20 10-1 1 had reiterated its four pronged strategy to
spur farm production, which includes increase in agricultural production,
reduction in wastage of farm produce, credit support to farmers and thrust to
the food processing sector. Accordingly, allocations for these schemes under
the ongoing Rashtriya Krishi Vikas Yojana (RKYY) have been increased from
Rs.67550.000 Millions to Rs.78600.000 Millions in Budget 2011-12. This scheme
focuses on productivity increases which includes proper and adequate use of
agri inputs such as plant nutrients, pesticides, seeds etc.
• The government has initiated a special program on pulses under the
Integrated Development of 60,000 pulses villages in rainfed area.
• Interest subvention proposed to be enhanced from 2 per cent to 3 per
cent for providing short-term crop loans to farmers who repay their crop loans
on time.
• The National Horticulture Mission is now firmly in place under which
special emphasis is being laid to increase the production and quality of
horticultural crops.
The multi segment agricultural input Industry therefore has a
significant role and responsibility for enhancing agricultural productivity and
yields both for inclusive growth and sound economic prosperity of our country.
CUSTOM SYNTHESIS
and MANUFACTURING
With increased competition and regulatory demands, global chemical
companies have a growing, strategic need to reduce costs and improve their
process efficiencies. Since both the research to market and product life cycles
are shrinking, outsourcing has become an important part of most large companies
as a part of their development strategy. Globally innovators are keen to make
their operations more streamlined for benefits in cost-savings. Moreover, the
western chemical majors are liable to face capacity constraints given the
burgeoning demand from emerging and developing countries. This, combined with
the low cost economy advantage, augurs well for the Indian chemical majors,
provided they are able to deliver the stringent requirements of these
innovators for quality, timely delivery and reliability.
The Indian Government has also been supporting the growth of this
industry with friendly policies for encouraging exports and increasing domestic
production by setting up SEZs (Special Economic Zones) as well as PCPIRs
(Petroleum, Chemicals and Petrochemicals Investment Regions).
Increased competition resulting from globalization is driving the chemical
industry towards efficiencies in terms of cost reduction, moving manufacturing
bases closer to raw material sources, cheaper energy sources, lower tax
regimes, increased use of information technology (IT) and intensification of
RandD activities. At the same time the industry is also responding to the
increased focus on environment protection, and by innovations . This efficiency
drive has become imperative as the industry seeks economies of scale in
manufacturing, logistics, and RandD. The impact has been seen in the
improvement in geographical reach and entry into new markets. Cost reduction is
being aggressively attempted through improved operating norms, financial
restructuring and tapping of cheaper labour costs in
Currently, India continues to be a favoured outsourcing hub among
companies globally as it offers compelling natural advantages which include the
deep understanding of the science of chemistry, competitive labour costs that
are both low-cost and qualified, and respect for IPR, a strong legal and
regulatory framework and quality telecom and IT infrastructure. P1 is
capitalizing on these factors and is one of the preferred outsourcing
destinations for requirements in agro-chemical and fine chemical business.
The company is present in both the key fields of Agri Inputs and Fine
Chemicals — 1) marketing and distribution in
The Company with decades long presence in the rural area has built up a
strong distribution network duly supported by a dedicated, knowledgeable and
large field force which continues to provide the needed extension to build
brands and markets.
The pursuit of operational excellence, relationship approach to
business, spirit of innovation and a philosophy of respect for IPR have enabled
the Company to develop a leadership role in the business of custom synthesis
and manufacturing business.
REVIEW OF
OPERATIONS
Domestic Agri
Input Business
This business unit of the company provides inputs and solutions to the
farmer in the areas of agrochemicals (namely insecticides, fungicides and
herbicides), plant nutrients, specialty fertilizers and hybrid seeds.
The crop protection product prices more or less remained unchanged for
most of them. Due to the leadership position of most of the brands in their
respective segments, the company was able to maintain strong inspired by
Sck,r,c margins in most of the products, whilst focusing on building future
brands like NOMINEE GOLD and BIOVITA. Striving towards excellence in building brands
and bringing innovations to the farmers, the company could successfully
establish NOMINEE GOLD as one of the fastest growing herbicide in
The Save Water” campaign run by the company to promote Direct Sowing of Rice
(DSR) with the help of NOMINEE GOLD has been well supported by some of the
leading State Agricultural Universities (SAU), Non-Governmental Organisations
(NGO) and corporates. This product stewardship program run by the company gives
us immense satisfaction especially when it accomplishes the task of conserving
the precious natural resource- water, thus providing innovative solutions to
both — farmers and society.
During the year , the company’s business grew by 38% YoY spear-headed by
the robust performance of some of the newly launched products, volume expansion
of some of the existing products and expanding distribution network in new
markets. The major growth came from the Eastern and Northern states, where the
brand was handpicked by some of the most reputed fertilizer companies to
distribute these brands.
PI has also filed for the registration of 3 new molecules and these are
expected to be commercially launched by 2012-2013. The company continues its
quest for new molecules and has signed 4 new agreements with the respective
patent holders to evaluate these products in
The company has also signed a distribution agreement with a leading
multinational for the marketing of its new generation insecticide /miticide,
which will further strengthen P1’s portfolio in the segments of plantations,
field crops, vegetables and fruits crops.
Outlook
The rural sector will continue to remain the backbone of the Indian
economy, where the majority of our population reside and therefore agriculture
will continue to remain under sharp focus for years to come given the
demand-supply mismatch, and the ever increasing demand both by the rising
middle class and for inclusive growth of our rural population.
The Company’s agri-input division is well geared to meet the increasing
demand for its products as also introduce newer crop protection solutions for
the benefit of Indian farmers.
Partnering with Non Governmental Organisations (NGO), State Agriculture
Universities (SA U), agri-business focused corporates, and working with the
motto of “Bringing Innovation to the Farmers” the company will continue with
its extension based marketing approach to help millions of farmers to create
and realize extra value. With the extensive distribution, exemplary marketing
approach and continuous introduction of new products, P1 is well positioned to
tap the upcoming opportunities in the agriculture sector.
International
Custom Synthesis and Manufacturing Business
This business unit of the Company is engaged in custom synthesis and
contract manufacturing of fine chemicals which find application in agriculture,
pharmaceutical, electronics, imaging, Printing, etc.
The company has built a very strong customer base comprising of leading
chemical companies in Europe and
The year saw the commencement of
manufacturing and supply to our customers of some newly patented active
ingredients and key intermediates.
With its commitment to achieve growth inspired by science and
innovation, the Company has signed an agreement with the world’s largest
electronics company, M/s Sony Corporation, to set up a joint research centre at
This Centre is recognition of the Company’s capabilities in a new area
of fine chemicals and has the potential for good growth in the future.
The Company also organized a seminar on the “Future of Chemistry” at
lIT,
The revenue of the Custom Synthesis Business continues to demonstrate
strong growth. The business has reported an increase of 23% over the previous
year. Due to constant efforts made by the Japanese business development team,
the company has also commenced commercial production on a few promising
products and revenues from these products are expected in the current year.
Some of the other Key Performance Highlights of this business during
2010-11 are:
• New inquiries received in various areas of application that would help
in building a diversified and balanced portfolio of products
• Scale up and commercial production commenced for a new generation
herbicide
• Successful development and scale up of products based on new chemistry
/ process technology
Outlook
The Company’s new manufacturing site located at the SEZ of Jambusar is
presently under construction and will get commissioned in the last quarter of
FY12. The commissioning of this additional capacity will help in catering to
the additional demand and achieving the business growth in the coming years.
Custom synthesis will remain a key growth driver for the Company. The
business has demonstrated robust growth with high margins. With the
commissioning of the new manufacturing facility at Jambusar, the multiyear
contracts and sound order book position, it is expected to continue to
contribute significantly to revenues and earnings of the Company.
With consistent performance in terms of timely product supply, quality
and services, the Company has established strong credibility with its customers
thereby getting an opportunity to work on newly patented products, which offer
better opportunities of growth and long term prospects for the company.
Polymer
Compounding
The Polymer business witnessed substantial growth in the current year on
the back of increased demand from the sectors of automobile, construction
material, electronics, etc. But, the product margins remained under pressure
due to high volatility in their raw material prices, as the same could not be
passed to customers.
Going by the Company’s strategy to concentrate on core business areas of
Agri-input and Customs Synthesis business and investing in these high growth
areas, Polymer Compounding business of the Company has been divested to Rhodia,
S.A, a French multinational specialty chemical major. The deal includes
transfer of all assets, people, plant facility, its dedicated RandD facilities,
customer base and logistic network in
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures and Office Equipments
·
Vehicles
·
Library
·
Tools and Equipments
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30.09.2011
(Rs. In millions)
|
Particulars
|
30.09.2011
(Unaudited) Quarter
Ended |
Six
Months Ended 30.09.2011 (Unaudited) |
|
|
|
|
|
Gross Sales/ Income from
operations |
2600.039 |
4819.359 |
|
Less : Excise Duty |
148.455 |
303.262 |
|
a) Net Sales / Income from Operations |
2451.584 |
4516.097 |
|
b) Other Operating Income |
4.651 |
8.007 |
|
Total Operating Income |
2456.235 |
4524.104 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(224.184) |
(553.239) |
|
(b) Consumption of Raw Materials |
1563.412 |
2875.825 |
|
(c) Purchase of traded goods |
85.840 |
202.749 |
|
(d) Employees Cost |
181.110 |
348.065 |
|
(e) Depreciation |
42.069 |
83.648 |
|
(f) Other Expenditure |
476.660 |
849.760 |
|
Total
Expenditure |
2124.907 |
3806.808 |
|
Profit / (Loss)
From Operations before other Income and Interest |
|
|
|
interest and Exceptional
items |
331.328 |
717.296 |
|
Other Income |
0.000 |
0.000 |
|
Profit before
Interest |
|
|
|
Interest/Financial Charges |
47.879 |
98.074 |
|
Unrealised Exchange
Fluctuation (Gain)/ Loss |
5.723 |
1.746 |
|
Profit after Interest but before Exceptional item |
277.726 |
617.476 |
|
Exceptional items (Income)/
Expenses |
0.000 |
(303.400) |
|
Profit from Ordinary
Activities before tax |
277.726 |
920.876 |
|
Tax expenses |
|
|
|
-Current Tax |
78.338 |
270.949 |
|
- Income Tax of Earlier Years |
0.000 |
0.000 |
|
-Deferred Tax |
5.752 |
(23.246) |
|
Net Profit from ordinary
activities after tax |
193.636 |
673.173 |
|
Extraordinary Item |
0.000 |
0.000 |
|
Net Profit for the period |
193.636 |
673.173 |
|
Paid Up Equity Share Capital ( Face Value
of the share Rs.10/- each ) |
125.242 |
125.242 |
|
Reserves (Excluding Revaluation Reserves) |
0.000 |
0.000 |
|
Earnings Per
Share (EPS) (Not annualized) |
|
|
|
-Basic |
7.78 |
27.05 |
|
-Diluted |
7.71 |
26.79 |
|
Public Share
Holding |
|
|
|
- Number of Shares(‘000s) |
9104356 |
9104356 |
|
- Percentage of shareholding |
36.34% |
36.34% |
|
Promoters and
Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
NIL |
NIL |
|
- Percentage of share (as a % of the total shareholding of promoter
and promoter group) |
0.00% |
0.00% |
|
- Percentage of shares(as a % of the total share capital of the
company) |
0.00% |
0.00% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
15944022 |
15944022 |
|
- Percentage of Share (as a % of the total shareholding of promoter and
promoter group) |
100% |
100% |
|
- Percentage of Share (as a % of the total share capital of the
company) |
63.65% |
63.65% |
SEGMENT-WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs.
In Millions)
|
Particulars
|
30.09.2011
(Unaudited) Quarter
Ended |
Six
Months Ended 30.09.2011 (Unaudited) |
|
|
|
|
|
Segment Revenue : Net
Sales/Income from each segment |
|
|
|
a. Chemicals |
2456.235 |
4511.688 |
|
b. Others |
0.000 |
12.416 |
|
Sub Total |
2456.235 |
4524.104 |
|
Less: Inter Segment revenue |
0.000 |
0.000 |
|
Net sales / income from operations |
2456.235 |
4524.104 |
|
Segment Results : Profit
before tax and interest from each segment |
|
|
|
a. Chemicals |
331.328 |
716.896 |
|
b. Others |
0.000 |
303.800 |
|
Sub Total |
331.328 |
1020.696 |
|
Less: Interest and Financial
Charges including Forex Gain / Loss |
53.602 |
99.820 |
|
Less: Other un-allocable
expenditure net of unallocable income |
0.000 |
0.000 |
|
Total Profit Before Tax |
277.726 |
920.876 |
|
Capital Employed |
|
|
|
a. Chemicals |
4983.503 |
4983.503 |
|
b. Others |
0.000 |
0.000 |
|
Total Capital Employed |
4983.503 |
4983.503 |
Notes:
1 The above standalone financial results were reviewed and recommended
by the Audit Committee of the Board and approved by the Board of Directors at
their meeting held on 05.11.2011
2 The Statutory Auditors of the company have carried out a limit review
of results.
3 During the quarter ended 30th June 2011, the Company had completed
transaction for sale of its polymer compounding business on slump sale basis as
a going concern and gain of Rs. 3034 lacs is shown under Exceptional item in
the half year ended on 30th Sep 11
4 The company has adopted the principle of hedge accounting as set out
in ‘Accounting Standard 30- Financial Instruments Recognized and Measurement
issued by the Institute of Chartered Accountant of India implement the foreign
exchange risk management policy under which the net foreign exchange exposure
over a period of one year against the committed order in hand, is hedged
through forward contracts. Accordingly marked to market loss of Rs.88.500
Millions arising on foreign currency instruments qualifying for hedge
accounting as on 30yh September 2011 has been transferred to cash flow hedge
reserve account.
5 Pursuant to the approval of the shareholders in their meeting held on
16th July 2011, the company has sub-divided the existing equity
shares of Rs.10/- each fully paid up into 2 equity shares of Rs.5/- each.
Further, in accordance with Accounting Standard, the earning per share for the
current and comparative period has been recomputed after adjusting for the
sub-division of the shares.
6 he Board of Directors has announced the payment of Interim dividend of
Rs. 2/- Per share for the financial year 2011-12. The record date for the
payment of the said dividend has been fixed on 18th November 2011.
7 Status of Investor Complaints during the quarter, pursuant to clause
41 of the listing agreement: Opening (NIL); Received (15); Disposed (15);
Closing (NIL).
8 Statements of Assets and Liabilities
(Rs.
In mIllions)
|
Particulars |
Period Ended
30.09.2011 Un-audited |
|
Sources of Funds
|
|
|
Shareholder’s
Fund |
|
|
a) Capital |
130.789 |
|
b) Reserve and Surplus |
2773.897 |
|
|
2904.686 |
|
Loan Fund |
1779.165 |
|
Deferred tax
liability |
299.652 |
|
Total |
4983.503 |
|
Application of
Funds |
|
|
Fixed Assets |
3128.518 |
|
Investments |
19.677 |
|
Current Assets,
Loans and Advances |
|
|
a) Inventories |
2123006 |
|
b) Sundry Debtors |
1870.020 |
|
c) Cash and Bank Balance |
75.840 |
|
d) Loans Advances |
485.154 |
|
|
4554.020 |
|
Less : Current
Liabilities and Provision |
|
|
a) Liabilities |
2484.175 |
|
b) Provisions |
234.537 |
|
|
2718.712 |
|
Net Current Assets |
1835.308 |
|
Total |
4983.503 |
9 The previous year periods figures have been regrouped/ rearranged/
reclassified wherever necessary
AS PER
WEB DETAILS
Business
Description
Subject is an India-based Company. The Company is in the business
of - Agri inputs, Fine Chemicals (Contract Research and Manufacturing Services
(CRAMS). The Company’s business areas include crop protection, specialty
products, plant nutrients and seeds. The Company’s products include:
insecticides, fungicides, herbicides and plant nutrients. The Company’s primary
segments include chemicals and others. The Secondary segment includes sales
within
Board
of Directors
Mrs.
Ramni Nirula
Non-Executive
and Independent Director
She holds a Bachelor’s Degree in Economic and a Master’s
Degree in Business Administration from
Mr.
Narayan K. Seshadri
Non-Executive
Independent Director
He is a Chartered Accountant. He started his career with
Arthur Anderson in the business consultancy area. Later on, he joined KPMG and
became the managing partner of the business advisory practice of the firm. He
was the first and only Indian partner on
Mr. P.
N. Shah
Non-Executive
Independent Director
He is a Chartered Accountant and a partner of M/s Shah and
Company, a CA firm. He is on the Board of PI Industries since 1991. He was the
President of the ICAI. Currently, he is also on the Board of Indo Count
Industries Limited, Secure Meters Limited, Taparia Tools Limited, Lipi Data
Systems Limited, Wolkem India Limited and Pranavaditya Spinning Mills Limited
PROFILE
Subject is in the business of – Agri inputs, Fine Chemicals (CRAMS - Contract
Research and Manufacturing Services), Polymers and Engineering Services.
Founded in 1947 in the city of lakes -
Subject is committed to growth, driven by its corporate philosophy, and aims to
achieve the highest standards in all its endeavors.
Subject’s strength lies
in:
·
More than 30 years of strong business associations
with large number of leading multinationals across the globe.
·
One of the oldest, largest and most credible
distribution networks in rural
·
Strong management capabilities, research and
development and world class manufacturing infrastructure.
·
One of the leading companies in Contract Research
and Manufacturing Services (CRAMS), having long term tie-ups with leading
chemical companies across the globe for newly invented products.
·
Amongst the top 5 and fastest growing companies in
polymer compounding by providing innovative solutions.
Corporate
philosophy
Subject derives its strength from a formally adopted Corporate
Philosophy which, amongst other things, impels subject to:
·
Uphold a reputation for integrity, honesty, straight-forward and just dealings.
·
Be committed to the quality of its products.
·
Be committed to its customers
·
Be innovative in approach and thought.
·
Be open, friendly, sincere and human in
behavior and attitude.
·
Contribute to the community as a part of our social responsibility
PRESS RELEASE:
P1 Industries Limited 02 FY2012 Net Profit rises 391%
Financial Highlights for the quarter ended 3O June, 2011
(Compared to QI FY11)
Net Revenue at Rs. 2064 million, up by 59%
EBITDA at Rs. 432 million, up by 122%. EBIDTA
margin at 21% as against 15% last year.
Profit Before Tax at Rs. 643 million
(including exceptional item of-.Rs. 303 million of gain on sale of Polymer
business), up by421%.
Net Profit at Rs. 480 million, up by391 %.
Performance highlights for the quarter ended 3O June, 2011
Agri-Input business posted excellent growth on
the back of increased demand for edsting products and healthy uptake of recently
launched products; Margin expansion anchored by volume growth of key brands,
lower average cost of keyinputs and enhanced realizations.
Robust execution keeping momentum strong in
Custom Synthesis. High capacity utilization supporting revenue ramp-up and
margin acceleration of Custom Synthesis.
Completion of Polymer Compounding divestiture
to Rhodia SA and conversion of outstanding debentures into equity further
augments the strength of the balance sheet. Secured and unsecured debts reduced
from Rs. 2484 million in March, 2011 to Rs. 1331 million on June, 01 1.
Enhanced working capital turn adding to
improved operating cash flow.
Commenting on the Company’s performance Mr. Saul Singhal, Chairman, P1
Industries Limited, said:
‘We have indeed started the year on a very
strong note resulting in an extremely good set of results based on solid
operating performances in both our core businesses. The Agri-Input business
continues to grow, given signs of an encouraging monsoon and our excellent
field-work amongst the farming community and the growing popularity of our
products.
Our Custom Synthesis business has also
witnessed significant growth as we begin reaping the benefits of operating
leverage and is also driven by our trusted relationships built over the years
with innovator companies.”
Mr. Mayank Singhal, Managing Directorand CEO, P1 Industries Limited,
added:
Our Agri Input business witnessed solid growth
of over 80% driven by an increase in the volumes of existing as well as newly
launched products. The business has also delivered healthy expansion in margins
on account of favorable product mix and intelligent input costs management.
The Custom Synthesis business also reported
strong growth again in excess of 80% -on account of scale-up of existing and
newly commercialized products. The revenue visibility of this business
continues to be high in the long- term.’
We have also successfully closed the sale of
our Polymer Compounding business to Rhodia SA freeing substantial resources,
which we are deploying in our scalable businesses.
Outlook
Agri-Input growth momentum to continue on
account of:
A good consistent monsoon and increased crop
acreages driving higher demand
Leadership position in existing and newly
launched products
Strong pipeline of in-licensed products under
different stages
Custom Synthesis to deliver sustained revenue
improvement and margin enhancement:
Attractive portfolio of products; focus on
patented and early stage molecules
Stabilization of newly commercialized products
Current year business fully tied up. Long term
order book position building up
Robust pipeline of molecules under different
stages of development
New opportunities in niche chemicals areas
expected to add to growth momentum
Incorporated in 1947, P1 Industries (BSE:
523642, ISIN ID: 1NE603J01014) focuses on Agri-Input and Custom Synthesis with
strength of over 1,100 employees, P1 Industries currently operates three
formulation and two manufacturing facilities as well as four multi product plants
under its three business units across Jammu and Gujarat. These state-of-art
facilities have integrated process development teams with in-house engineering
capabilities.
P I Industries is into following business areas:
Agri-Input Business
PI is one of
Custom Synthesis Business
The Fine Chemicals business unit of P1 focuses
on Custom Synthesis which entails dealing in custom synthesis and contract
manufacturing of chemicals including techno commercial evaluation of chemical
processes, process development, lab and pilot scale up as well as commercial
production. The Company has an impressive product portfo1io as result of
exdusie tie-ups with leading agro-chemical, pharmaceutical and fine chemical
companies around the world. P1 has made substantial investments in building
state of art process research and manufacturing facilities of chemical
intermediates and active ingredients with special focus on strong process RandD
capabilities This business unit is expected to be the primary growth drier with
strong revenue visibility as India continues to be a preferred destination for
outsourcing Custom Synthesis and contract manufacturing related projects. with
exceptional growth opportunities in the offing this business segment is poised
for great success.
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.52.82 |
|
|
1 |
Rs.82.47 |
|
Euro |
1 |
Rs.68.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
- |
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
64 |
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.