MIRA
INFORM REPORT
|
Report Date : |
31.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
CHAMBAL FERTILISERS AND CHEMICALS LIMITED |
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Registered
Office : |
Gadepan, District Kota-325208,
Rajasthan |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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|
Date of
Incorporation : |
07.05.1985 |
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Com. Reg. No.: |
17-003293 |
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Capital
Investment / Paid-up Capital : |
Rs.4162.079 Millions |
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|
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CIN No.: [Company Identification
No.] |
L24124RJ1985PLC003293 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHC01428A |
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PAN No.: [Permanent Account No.] |
AAACC9762A |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturers of Ammonia and Urea. |
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|
No. of Employees
: |
2434 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 64000000 |
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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 company having good track. Trade relations
are fair. Business is active. Payments are reported as regular. Company can be considered good for normal business under 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Gadepan, District Kota-325208, Rajasthan, India |
|
Tel. No.: |
91-744-6462162 / 6462167 / 2782915 / 2934 |
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Fax No.: |
91-744-6465218 / 7455-274130 |
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E-Mail : |
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Website : |
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Administrative Office : |
6th Floor, Devika Tower, 6, Nehru Place, New Delhi-110019, India |
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Tel. No.: |
91-11-26461162 – 63 |
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Fax No.: |
91-11-26465218/26480639 |
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E-Mail : |
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Corporate Office : |
Corporate One, 1st floor, 5, Commercial Centre, Jasola, New
Delhi-110025, India |
|
Tel. No.: |
91-11-46581300/41697900 |
|
Fax No.: |
91-11-40638679 |
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|
|
|
Factory 1 : |
Sai Road, Bhatouli Khurd, P.O. Baddi-173205, Solan-173205,
Himachal Pradesh, India |
|
Tel No: |
91-1795-245285-87 |
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Email: |
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Web Site: |
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Factory 2 : |
Birla Textile
Mills Solaris Building No. 1, D-Wing, 4th Floor, Solaris Complex,
Saki Vihar Road, Powai, Andheri (E), Mumbai-400072, Maharashtra, India |
|
Tel No: |
91-22-28573706/5204 |
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|
|
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Regional Offices
: |
Located At:
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. S.K. Poddar |
|
Designation : |
Chairman |
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|
Name : |
Mr. Shayam S. Bhartia |
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Designation : |
Co-Chairman |
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Name : |
Mr. H.S. Bawa |
|
Designation : |
Vice Chairman |
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|
Name : |
Mr. Anil Kapoor |
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Designation : |
Managing Director |
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|
Name : |
Mr. R. N. Bansal |
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Designation : |
Director |
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|
Name : |
Mr. Dipankar Basu |
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Designation : |
Director |
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|
Name : |
Mr. C.S. Nopany |
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Designation : |
Director |
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|
Name : |
Mr. Marco P. A. Wadia |
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Designation : |
Director |
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|
Name : |
Mr. K. N. Memani |
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Designation : |
Director |
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Name : |
Mr. Radha Singh |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Abhay Baijal |
|
Designation : |
Vice President – Finance |
|
|
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|
Name : |
Mr. A.K. Bhargava |
|
Designation : |
Vice President – Operations |
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|
Name : |
Mr. D.L. Birla |
|
Designation : |
Executive President – BTM |
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|
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|
Name : |
Mr. V.K. Gupta |
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Designation : |
Vice President – Marketing |
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Name : |
Mr. Vinod Mehra |
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Designation : |
President – Operations |
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|
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|
Name : |
Mr. M.S. Rathore |
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Designation : |
Vice President – Legal and Corporate Communication and Secretary |
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|
Name : |
Mr. Arun Sharma |
|
Designation : |
Executive President – India Steamship |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Category of Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22,326,756 |
5.36 |
|
|
207,014,726 |
49.74 |
|
|
229,341,482 |
55.10 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
229,341,482 |
55.10 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
29,122,412 |
7.00 |
|
|
737,045 |
0.18 |
|
|
24,970,705 |
6.00 |
|
|
40,008,857 |
9.61 |
|
|
94,839,019 |
22.79 |
|
|
|
|
|
|
13,996,543 |
3.36 |
|
|
|
|
|
|
55,537,384 |
13.34 |
|
|
21,438,081 |
5.15 |
|
|
1,055,343 |
0.25 |
|
|
865,114 |
0.21 |
|
|
190,229 |
0.05 |
|
|
92,027,351 |
22.11 |
|
Total Public shareholding (B) |
186,866,370 |
44.90 |
|
Total (A)+(B) |
416,207,852 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
416,207,852 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Ammonia and Urea. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity* |
|
i) Fertiliser |
|
|
|
Ammonia |
MTPD |
2700 |
|
Urea |
MTPD |
4600 |
|
ii) Yarn Spindles |
Nos. |
83376 |
Note: * As certified by the management.
Actual Production:
|
Production |
|
Quantity (Tons) |
|
Ammonia |
|
1216649.000 |
|
Urea |
|
2100175.000 |
|
Synthetic Yarn |
|
|
|
Man Made Fibre Yarn |
|
10580.660 |
|
Fibre Yarn Waste |
|
526.208 |
|
Cotton Yarn |
|
|
|
Yarn |
|
9320.050 |
|
Waste |
|
2363.702 |
GENERAL INFORMATION
|
No. of Employees : |
2434 [Approximately] |
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Bankers : |
· Axis Bank |
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Facilities : |
NOTE: 1. 7.90% Secured
redeemable non-convertible debentures were fully redeemed during the year.
These debentures were secured by first pari passu charge by way of mortgage
by deposit of title deeds in respect of immovable properties and
hypothecation of the movable fixed assets of the Company, both present and
future (save and except assets of Shipping Division) subject to prior charges
created/ to be created in favour of banks on current assets and other
movables for securing working capital borrowings. 2. Rupee term
loans of Rs.1695.600 Millions (Previous Year Rs.2804.600 Millions) and
foreign currency term loans of Rs.3266.890 Millions (Previous Year
Rs.3627.677 Millions) from banks are secured by first pari-passu charge by
way of mortgage, by deposit of title deeds in respect of immovable properties
and hypothecation of the movable fixed assets of the Company, both present
and future (save and except assets of Shipping Division), subject to prior
charges created/ to be created in favour of banks on current assets and other
movables for securing working capital borrowings. 3. Foreign
currency term loan of Rs.1784.000 Millions (Previous Year Rs.1975.600
Millions) from a bank is secured by first priority mortgage on the Company’s
vessel-Ratna Puja and assignment of earnings, insurance and requisition
compensation in respect of such vessel. 4. Foreign
currency term loan of Rs.2363.800 Millions (Previous Year Rs.2559.300
Millions) from a bank is secured by first priority mortgage on the Company’s
vessel-Ratna Shalini and assignment of earnings, insurance and requisition
compensation in respect of such vessel and second priority mortgage on the
Company’s vessel-Ratna Puja and assignment of earnings, insurance and
requisition compensation in respect of such vessel. 5. Foreign currency
term loan of Rs.5260.803 Millions (Previous Year Rs.5863.137 Millions) from
banks is secured by first priority mortgage on the Company’s three vessels
i.e. Ratna Shruti, Ratna Shradha and Ratna Namrata and assignment of
earnings, insurance and requisition compensation in respect of such vessels. 6. Short Term
Loan of Rs. Nil (Previous Year Rs.2800.000 Millions) from a bank was to be
secured by pledge of Government of India Fertiliser Bonds issued to the
Company. 7. Cash credit
facilities from banks are secured by hypothecation of all the Company’s
current assets including all stocks and book debts and other movables, both
present and future (except assets of shipping division). These loans are
further secured/ to be secured by second charge on all the immovable
properties (except assets of shipping division) of the Company. 8. Finance lease
obligation of Rs.29.799 Millions (Previous Year Rs.54.426 Millions) is
secured by assets acquired under the facility. 9. Secured loans
(other than cash credit facilities and short term loan from banks) include
Rs.1409.214 Millions (Previous Year Rs.2506.860 Millions) repayable within
one year. |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
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|
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Branch Auditors : |
|
|
Name : |
Singhi and Company Chartered Accountants |
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|
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Cost Auditors : |
|
|
Name : |
K.G. Goyal and Associates Chartered Accountants |
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|
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Subsidiaries : |
·
CFCL Overseas Limited, Cayman Island ·
Chambal Infrastructure Ventures Limited, India ·
India Steamship Pte. Limited., Singapore Subsidiaries and
Step-down Subsidiaries of CFCL Overseas Limited * CFCL
Technologies Limited, Cayman Islands * CFCL Ventures Limited,
Cayman Islands * ISGN Corporation, USA Subsidiaries and
Step-down Subsidiaries of ISGN Corporation, USA * NITC GmbH
(Germany) (formerly known as NovaSoft Information Technology Corporation
GmbH,) * Dynatek Inc.,
USA (merged with ISGN Corporation w.e.f. April 1, 2009) * ISGN Solutions Inc, USA * Richmond
Investors, LLC (“Investors”),USA * Richmond Title
Genepar, LLC, USA * Richmond Title
Services, LP , USA * Flex Agents
Signing Team, LLC , USA * Richmond Title Services, LLC (Alabama) , USA * ISGN Fulfillment
Services, Inc. (Pennsylvania, USA) (acquired along with step down
subsidiaries w.e.f. December 12, 2009) (formerly known as Fiserv Fulfillment
Services, Inc) * ISGN
Fulfillment Services, Inc (AZ, USA) (formerly known as Fiserv Fulfillment
Services, Inc (AZ, USA)) * ISGN
Fulfillment Services, South Inc (FL, USA) (formerly known as Fiserv
Fulfillment Services, South Inc (FL, USA)) * ISGN
Fulfillment Services, of Alabama LLC (AL, USA) (formerly known as Fiserv
Fulfillment Services, of Alabama LLC (AL, USA)) * ISGN
Fulfillment Services, of Maryland, Inc (MD, USA)( formerly known as Fiserv
Fulfillment Services, of Maryland, Inc (MD, USA)) * ILS Services,
LLC (DE, USA) * ISGN
Fulfillment Agency, LLC (DE, USA) (formerly known as Fiserv Fulfillment Agency,
LLC (DE, USA)) * ISGN
Fulfillment Agency of Alabama, LLC (AL,USA)(formerly known as Fiserv
Fulfillment Agency of Alabama, LLC (AL,USA) Subsidiaries and
Step-down Subsidiaries of CFCL Ventures Limited * ISG NovaSoft
Technologies Limited, India * Inuva Info
Management Private Limited, India * ISGN Solution Limited, Ireland (Liquidated in May 2009) Subsidiaries of
Chambal Infrastructure Ventures Limited * Chambal Energy
(Chhattisgarh) Limited * Chambal Energy (Orissa) Limited |
CAPITAL STRUCTURE
As on 31.3.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
440000000 |
Equity Shares |
Rs.10/- each |
Rs. 4400.000 Millions |
|
210000000 |
Preference shares |
Rs. 10/- each |
Rs. 2100.000 Millions |
|
|
Total
|
|
Rs.6500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
416207852 |
Equity Shares |
Rs.10/- each |
Rs.4162.079
Millions |
Note: Of the above,
10,207,852 (Previous Year 10,207,852) equity shares of Rs.10/- each have been
allotted for consideration other than cash, pursuant to the scheme of
amalgamation of erstwhile India Steamship Company Limited.
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 |
4162.079 |
4162.079 |
4162.079 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12071.198 |
9738.495 |
8181.451 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16233.277 |
13900.574 |
12343.530 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
14453.420 |
19960.750 |
20692.690 |
|
|
2] Unsecured Loans |
10383.542 |
6198.914 |
3498.346 |
|
|
TOTAL BORROWING |
24836.962 |
26159.664 |
24191.036 |
|
|
DEFERRED TAX LIABILITIES |
2011.915 |
2455.002 |
2659.944 |
|
|
DEFERRED PAYMENT LIABILITES |
0.000 |
0.000 |
621.165 |
|
|
|
|
|
|
|
|
TOTAL |
43082.154 |
42515.240 |
39815.675 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
26758.006 |
29278.342 |
28647.645 |
|
|
Capital work-in-progress |
657.551 |
436.757 |
2210.870 |
|
|
|
|
|
|
|
|
INTANGIBLE ASSETS |
25.155 |
41.746 |
58.785 |
|
|
INVESTMENT |
4005.601 |
4172.096 |
6108.935 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4024.384
|
2433.116
|
3168.241
|
|
|
Sundry Debtors |
5896.912
|
5584.970
|
6601.031 |
|
|
Cash & Bank Balances |
2618.175
|
299.990
|
1275.201
|
|
|
Other Current Assets |
1910.365
|
3425.112
|
3612.251
|
|
|
Loans & Advances |
1589.165
|
854.358
|
1005.707
|
|
Total
Current Assets |
16039.001
|
12597.546
|
15662.431
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1584.831
|
1426.696
|
10936.343 |
|
|
Other Current Liabilities |
1051.609
|
850.165
|
617.644
|
|
|
Provisions |
1766.720
|
1734.386
|
1336.262
|
|
Total
Current Liabilities |
4403.160
|
4011.247
|
12890.249
|
|
|
Net Current Assets |
11635.841
|
8586.299
|
2772.182
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
17.258 |
|
|
|
|
|
|
|
|
TOTAL |
43082.154 |
42515.240 |
339815.675 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
46464.021 |
35745.019 |
45955.361 |
|
|
|
Other Income |
1018.068 |
666.110 |
1194.394 |
|
|
|
TOTAL (A) |
47482.089 |
36411.129 |
47149.755 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of trading goods |
14339.797 |
5998.727 |
15641.800 |
|
|
|
Raw material consumed |
11821.068 |
10356.791 |
9420.217 |
|
|
|
Personnel expenses |
1145.406 |
986.071 |
905.996 |
|
|
|
Operating and other expenses |
12774.361 |
10923.695 |
13655.468 |
|
|
|
Freight to charter in ship |
396.100 |
348.361 |
1324.155 |
|
|
|
Deferred revenue expenditure written off |
0.000 |
5.929 |
7.747 |
|
|
|
Increase and Decrease in inventories |
(1136.254) |
760.533 |
(485.156) |
|
|
|
Exceptional items |
(43.687) |
(43.687) |
(96.109) |
|
|
|
TOTAL (B) |
39296.791 |
29336.420 |
40374.118 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8185.298 |
7074.709 |
6775.637 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1097.840 |
910.414 |
1323.242 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7087.458 |
6164.295 |
5452.395 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2679.482 |
2576.177 |
2271.393 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4407.976 |
3588.118 |
3181.002 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1156.191 |
1097.606 |
875.373 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3251.785 |
2490.512 |
2305.629 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7596.455 |
6284.332 |
5168.949 |
|
|
|
TRANSFERRED FROM
DEBENTURE REDEMPTION RESERVE |
31.250 |
31.250 |
31.250 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
350.000 |
250.000 |
250.000 |
|
|
|
Transfer to Tonnage Tax Reserve |
5.000 |
37.500 |
95.000 |
|
|
|
Proposed Dividend on Equity Shares |
790.795 |
790.795 |
749.174 |
|
|
|
Tax on Dividend |
128.287 |
131.344 |
127.322 |
|
|
BALANCE CARRIED
TO THE B/S |
9605.408 |
7596.455 |
6284.332 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
1194.166 |
2541.384 |
2879.010 |
|
|
|
Dispatch money (On cash basis) |
7.691 |
2.044 |
12.034 |
|
|
|
Dividend income |
109.421 |
0.000 |
500.930 |
|
|
|
Interest (On cash basis) |
12.187 |
3.604 |
6.149 |
|
|
|
Rebate |
46.557 |
21.519 |
0.000 |
|
|
TOTAL EARNINGS |
1370.022 |
2568.551 |
3398.123 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Products |
11248.206 |
4157.789 |
12792.526 |
|
|
|
Stores & Spares |
81.520 |
22.301 |
59.381 |
|
|
|
Capital Goods |
319.137 |
121.423 |
770.086 |
|
|
TOTAL IMPORTS |
11648.863 |
4301.513 |
13621.993 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.81 |
5.98 |
5.54 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
11644.150 |
16422.780 |
|
Total Expenditure |
|
9939.850 |
14523.000 |
|
PBIDT (Excl OI) |
|
1704.300 |
1899.780 |
|
Other Income |
|
194.350 |
109.660 |
|
Operating Profit |
|
1898.650 |
2009.440 |
|
Interest |
|
242.410 |
247.760 |
|
PBDT |
|
1656.240 |
1761.680 |
|
Depreciation |
|
659.460 |
705.440 |
|
Profit Before Tax |
|
996.780 |
1056.240 |
|
Tax |
|
359.880 |
139.690 |
|
Profit After Tax |
|
636.910 |
916.540 |
|
Net Profit |
|
636.910 |
916.540 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.85
|
6.84
|
4.89
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.88
|
10.04
|
6.92
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.30
|
8.57
|
7.18
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.26
|
0.26
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.80
|
2.17
|
3.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.64
|
3.14
|
1.21
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is
Operations
The report yet another
year of growth and prosperity of the Company. The performance of the Fertiliser
Business of the Company was encouraging. The Company achieved the highest ever
annual Urea production and sales in Gadepan-I and II plants during the year.
The Company achieved new high in trading particularly in pesticide business.
There was a substantial growth both in the revenue and profitability from the
trading activity.
The Textile
Business has also fared well during the year. There has been substantial increase
in the top line and bottom line of the Textile Business. The better realization
has mainly contributed to the excellent performance of this business. The
Shipping Business of the Company witnessed another challenging year. The
charter rates have reached to new lows resulting into sluggish performance of
this Business.
Joint Venture
Indo Maroc
Phosphore S. A., Morocco (IMACID)
IMACID is three
way Joint Venture of M/s. Tata Chemicals Limited, OCP, S.A., Morocco and the
Company. The performance of IMACID during the year - 2010 was encouraging.
IMACID produced 348,158 MT of Phosphoric Acid (P2O5) during the year 2010 as
against 359,656 MT of P2O5 produced during the year 2009. IMACID achieved sale
of 355,977 MT P2O5 during the year 2010 as against sales of 369,996 MT
P2O5achieved in the year 2009. IMACID achieved revenue of MAD 2309.10 Million
(Rs. 12717.100 Millions) during the year 2010 as against revenue of MAD 1791.87
Million (Rs. 10906.600 Millions) achieved in the year 2009. IMACID earned profit
after tax of MAD 183.64 Million (Rs. 1011.400 Millions) during the year 2010 as
against MAD 35.09 Million (Rs. 213.600 Millions) in the year 2009.
Subsidiaries
Chambal Infrastructure Ventures Limited and its
Subsidiaries
Chambal
Infrastructure Ventures Limited (“CIVL”) was set up by the Company for entering
in to Power business. It had set up two wholly owned subsidiaries viz. Chambal
Energy (Chhattisgarh) Limited and Chambal Energy (Orissa) Limited for taking up
power projects in the states of Chhattisgarh and Odisha, respectively. CIVL is
pursuing various business opportunities for setting up power projects in the
states of Odisha and Chhattisgarh. CIVL is in continuous dialogue with the
Government of Odisha for various approvals for the power project.
CFCL Overseas Limited, Cayman Islands and its
Subsidiaries
CFCL Overseas
Limited is wholly owned subsidiary of the Company. CFCL Technologies Limited is
the flagship
Company for
software business and also a subsidiary of CFCL Overseas Limited With the acquisition
of Fiserv Fulfillment Services Inc., USA (“FFS”) in 2009, the Software Business
has become one of the leading full service end-to-end mortgage services
providers in the USA mortgage markets with a full complement of technology and
knowledge process outsourcing (KPO) services. The customers consist primarily
of large and medium size mortgage banks in the USA. In 2010, the Software
Business has deployed significant efforts towards integrating the indigenous
and acquired businesses. Since the acquisition of FFS, Software Business has
successfully transitioned customer relationships and was able to sustain and
grow the revenues. CFCL Technologies Limited and its subsidiaries follow the
January to December Financial Year. The Software Business as a whole achieved
revenue of USD 128.65 million during 2010 as against USD 36.4 Million achieved
during the 9 month period ended on December 31, 2009. The EBITDA before
exceptional and one-off items was negative at USD 5.08 million during the Year
2010. The negative EBITDA was primarily due to the year 2010 being the first
year of integration of the acquired business of FFS. The efforts are on to turn
the business EBITDA positive during the Year 2011.
India Steamship Pte. Limited, Singapore
Due to prevailing
poor markets, operations in India Steamship, Singapore have been kept at a
minimum level. To maintain and improve upon the well established safety system,
trainings were conducted by both internal and external expert faculties on
rescue, fire fighting and emergency handling, electrical safety, material
handling, road safety etc. Employees were sent to reputed institutes for
specialized trainings. All senior officials of the Company
underwent
practical training on fire fighting.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
FERTILISER DIVISION
Industry Structure and Developments
Raw Material
Urea - a major
plant nutrient, plays a vital role in the food security of the country and
Natural Gas is the major input in its production. Over the last years, Natural Gas
availability and Gas pipeline connectivity have been constrained and posed
challenges to the Industry. Gas prices ruled high during the year and spurted
further towards the later part of the year on account of political upheavals in
some countries and natural calamities in Japan. The international oil prices
have a direct bearing on the Gas prices due to a close correlation between the
products. Both the
fertiliser plants of the Company are operating with Natural Gas. Although the
Company has long term Gas Supply Agreements for its requirement but gas supply
from KG D-6 gas fields has witnessed marked decline in output. As a result, the
Company has to resort to spot buying of Liquefied Natural Gas at high prices.
Demand–Supply Scenario
The Company’s Gadepan
– II plant commissioned in 1999 was the last major capacity addition in
production of Urea. Urea production in the country has remained stagnant
whereas demand of Urea has been increasing over the years, resulting into
significant gap between domestic demand and supply. The De-bottlenecking
exercise was carried out in some of the plants in the country including that of
the Company during last few years but it had marginal effect on supply. The
main reasons for new capacities not coming up are non-conducive policy
environment and absence of assured supply of Natural Gas on long term basis at
affordable prices. India has imported over 6.6 million MT of Urea during the
financial year 2010-11 which was about 23% of the total urea consumption in the
country. India being a major agrarian economy can ill afford the ever
increasing dependence on imports of Urea. The Government of India should
address these concerns urgently.
Urea Pricing Policy
New Pricing Scheme
(NPS) -Stage III for Urea which was valid upto March 31, 2010, has been further
extended provisionally. There are expectations that urea will also be covered
under Nutrient Based Subsidy Scheme (NBS)
during the Year
2011-12. Under NBS, the Government fixes subsidies on the basis of nutrient
content in a product
rather than a
formula based subsidy linked to a product. NBS seeks to emphasize the balanced
nutrition of the soil consistent with rational economic principles. This move
of the Government is a step in the right direction and will drive producers as
well as importers to improve production, procurement and distribution
efficiencies.
The Company sold
20.41 lac MT of urea during the year 2010-11 which was marginally higher than
the last year’s sale of 20.14 lac MT. The production and sales of Urea were
higher due to achievement of higher stream days and higher plant throughputs
after implementation of energy saving cum debottlenecking revamp projects for
Gadepan- I and II plants. The Company is continuously expanding its basket of
products and marketing reach. The Company has started its full fl edged
marketing network in Bihar and planning to further expand its marketing reach
to Maharashtra. The turnover of traded products went up from Rs. 7610.900
Millions to Rs. 16068.700 Millions in the Financial Year 2010-11. The sales of
DAP also more than doubled from 1.42 lac MT in 2009-10 to 4.01 lac MT achieved
in the Financial Year 2010-11. The sale of Pesticides went up to Rs. 2120.000
Millions, an increase of 18% over 2009-10.
BIRLA TEXTILE MILLS - SPINNING DIVISION
Industry Structure and Developments
The Indian Textile
Industry, with the size of US$ 70 billion, has three tiered structure -
sophisticated modern mill segment on one end of the spectrum and a widely
dispersed hand-loom and power-loom segments on the other. Mid segment is
legions of small scale unorganized players. India accounts for 22% of the
world’s installed capacity of spindles, second largest spindlage after China.
India is also the second largest producer of cotton and Cellulosic fibres and
fourth largest producer of Synthetic Fibres and Yarns. This sector is the
second largest job provider (direct employment to over 35 Million people) after
agriculture. It also contributes about 14% to India’s industrial production, 4%
to the GDP and 10% to the export earnings.
Outlook
Indian Textile
Industry which showed signs of recovery in 2010, exhibited strength in 2011.
Going forward, the industry is concerned about shortage of labour, volatile
input prices, fluctuating Rupee, uncertainty of yarn prices and competition
restraining pricing power. However, future of the Indian Textile Industry seems
bright on the back of robust domestic demand and steadily growing exports.
INDIA STEAMSHIP-SHIPPING DIVISION
Industry Structure and Developments
The dry bulk,
containers and tankers are major segments of the Shipping Industry. Shipping,
being an international business, gets affected by the international business
environment. The time charter rates and re-sale values of vessels were on
declining path during the year 2010-11. The ongoing instability in some
countries and natural disasters in Japan has further impacted the downturn in
the Industry. We expect the demand to pick up in the reconstruction phase of
natural calamity hit region of Japan. The dramatic rise in bunker costs has
further worsened the situation for the tanker segment. The price spike in
bunkers has drastically eroded the slim profitability that ship owners were
experiencing for the better part of the last 6 months. The overall economic
outlook seems to be stabilizing. America has come out with better job numbers
and seems to be more optimistic about the economic recovery which is still
termed as fragile. European Union is still a concern.
Outlook
Time-charter rates
are at a historical low considering time span of the last 5 years. Outlook till
end 2012 does not look very promising. Moreover, there have been massive
differentials between spot market returns and time-charter levels which make it
hard to support a time-charter commitment. Current market scenario presents a
perfect opportunity for charterers to take some period cover at the prevailing
rates.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
Outstanding amount
against counter guarantees given to Banks/ Financial Institutions on account
of loans given by the said Banks/ Financial Institutions to Bodies Corporate. |
0.000 |
31.430 |
|
Other claims against the Company not acknowledged as debts. |
0.424 |
0.424 |
|
Claim against
Nihat Shipping Company Limited in legal suits/ notices, in which the Company
has been made a party, is being contested, since the Company acted as Agents/
Technical & Operational managers. |
22.204 |
22.204 |
|
Penalty levied by FERA Board under appeal before the Calcutta High
Court. |
0.130 |
0.130 |
|
Total |
22.758 |
54.188 |
UNAUDITED
FINANCIAL RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2011
Rs.
in Millions
|
Particulars |
Quarter Ended [Unaudited] |
Half Year Ended [Unaudited] |
|
|
30.09.2011 |
30.09.2011 |
|
|
|
|
|
(a) Net Sales / Income
from Operations |
16382.759 |
27885.749 |
|
(b) Other Operating Income
|
40.019 |
181.177 |
|
Expenditure |
|
|
|
(a) Increase in Stock in Trade
and Work in Progress |
(517.270) |
(1816.531) |
|
(b) Consumption of Raw
Materials |
3380.701 |
6519.368 |
|
(c) Purchase of Traded
Goods |
6924.390 |
11161.446 |
|
(d) Employees Cost |
335.958 |
636.790 |
|
(e) Depreciation /
Amortization |
705.439 |
1364.897 |
|
(f) Power & Fuel |
1930.618 |
3560.566 |
|
(g) Other Expenditure |
2468.608 |
4401.211 |
|
Total (a to g) |
15228.444 |
25827.747 |
|
Profit from Operations
before Other Income, Interest, Exceptional Items & Tax (1-2) |
1194.334 |
2239.179 |
|
Other Income |
109.664 |
304.013 |
|
Profit before Interest,
Exceptional Items & Tax (3+4) |
1303.998 |
2543.192 |
|
Interest |
247.763 |
490.168 |
|
Profit before Exceptional
Items and Tax (5-6) |
1056.235 |
2053.024 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit from Ordinary
Activities before Tax (7+8) |
1056.235 |
2053.024 |
|
Tax Expense |
139.691 |
499.575 |
|
- Current Tax |
441.452 |
859.025 |
|
- Deferred Tax |
20.136 |
(39.344) |
|
- Tonnage Tax |
1.732 |
3.523 |
|
Net Profit for the period
(9-10) |
916.544 |
1553.449 |
|
Paid-up Equity Share
Capital (Face value of each share - Rs.10) |
4162.079 |
4162.079 |
|
Reserve excluding
Revaluation Reserve |
-- |
-- |
|
Earnings per Share (Rs.) (
Basic and Diluted ) Public Shareholding |
2.20 |
3.73 |
|
Public Shareholdings |
|
|
|
- Number of Shares |
186866370 |
186866370 |
|
- Percentage of
Shareholding |
44.90 |
44.90 |
|
Promoters and Promoter
Group Shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
23866795 |
23866795 |
|
- Percentage of Shares (as
a % of the Total Shareholding of Promoter and Promoter Group) |
10.41 |
10.41 |
|
- Percentage of Shares (as
a % of the Total Share Capital of the Company) |
5.73 |
5.73 |
|
b) Non- Encumbered |
|
|
|
- Number of Shares |
205474687 |
205474687 |
|
- Percentage of Shares (as
a % of the Total Shareholding of Promoter and Promoter Group) |
89.59 |
89.59 |
|
- Percentage of Shares (as
a % of the Total Share Capital of the Company) |
49.37 |
49.37 |
SEGMENT WISE REVENUE, RESULTS
AND CAPITAL EMPLOYED
Rs. in Millions
|
Particulars |
Quarter Ended [Unaudited] |
Half Year Ended [Unaudited] |
|
|
30.09.2011 |
30.09.2011 |
|
|
|
|
|
Segment Revenue |
|
|
|
a) Own Manufactured Fertiliser |
7608.959 |
14609.141 |
|
b) Traded Goods |
6881.378 |
9780.362 |
|
c) Shipping |
984.448 |
1873.870 |
|
d) Textile |
907.974 |
1622.376 |
|
Total (a to d) |
16382.759 |
27885.749 |
|
Less : Inter Segment
Revenue |
0.000 |
0.000 |
|
Net Sales/ Income from
Operations |
16382.759 |
27885.749 |
|
Segment Results Profit / (Loss) before
Interest and Tax from each Segment |
|
|
|
a) Own Manufactured Fertiliser |
1273.721 |
2229.098 |
|
b) Traded Goods |
414.923 |
700.037 |
|
c) Shipping |
(193.099) |
(181.476) |
|
d) Textile |
(89.725) |
(100.860) |
|
Total (a to d) |
1405.820 |
2646.799 |
|
Less: |
|
|
|
(i) Interest |
247.763 |
490.168 |
|
(ii) Other Unallocable
Expenditure net off Unallocable Income# |
101.822 |
103.607 |
|
Profit before Tax |
1056.235 |
2053.024 |
|
Capital Employed |
|
|
|
(Segment Assets-Segment
Liabilities) |
|
|
|
a) Own Manufactured Fertiliser |
15376.925 |
15376.925 |
|
b) Traded Goods |
7212.539 |
7212.539 |
|
c) Shipping |
15192.287 |
15192.287 |
|
d) Textile |
2028.611 |
2028.611 |
|
e) Unallocated Capital Employed |
(22023.637) |
(22023.637) |
|
Total (a to e) |
17786.725 |
17786.725 |
SUMMARY OF
ASSETS AND LIABILITIES AS AT 30TH SEPTEMBER, 2011
|
|
|
Rs in Millions |
|
Particulars |
Half Year Ended |
|
|
As on 30.09.2011 |
||
|
(Unaudited) |
||
|
|
|
|
|
SHAREHOLDERS FUNDS |
|
|
|
Share Capital |
4162.079 |
|
|
Reserves & Surplus |
13624.646 |
|
|
|
|
|
|
LOAN FUNDS |
25592.102 |
|
|
|
|
|
|
DEFERRED TAX
LIABILITIES |
1972.570 |
|
|
|
|
|
|
TOTAL |
45351.397 |
|
|
|
|
|
|
FIXED ASSETS |
27606.805 |
|
|
INTANGIBLE ASSETS
|
12.699 |
|
|
|
|
|
|
INVESTMENT |
4887.519 |
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
Inventories |
5399.737 |
|
|
Sundry Debtors |
9649.764 |
|
|
Cash & Bank
Balances |
236.097 |
|
|
Other Current
Assets |
652.851 |
|
|
Loans &
Advances |
1251.770 |
|
|
|
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
Other Current
Liabilities |
3484.840 |
|
|
Provisions |
861.005 |
|
|
|
|
|
|
Net
Current Assets |
12844.374 |
|
|
|
|
|
|
TOTAL |
45351.397 |
|
NOTE:
1.
The results for the period ended September 30, 2011
have been prepared on the basis of notified concession prices for urea under the
New Pricing Scheme (NPS), further adjusted for input price
escalation/de-escalation, as estimated on the basis of prescribed norms. The
concession price of urea notified by the Government of India under the
NPS-Stage Ill effective for the period from October 1, 2006 to March 31, 2010,
has been extended on provisional basis till further orders.
2.
During the period, the subsidy on Phosphatic and
Potassic fertilizers has been accounted for as per concession price notified by
the Government of India for the period from April 1,201 1.
3.
Other expenditure includes provision for net mark
to market loss of Rs 233.154 Millions (for the quarter Rs.143.712 Millions) and
Rs 4.296 Millions (for the quarter Rs.1.734 Millions) for shipping and
fertiliser division of the Company respectively, on USD interest Rate Swap
Transactions to convert floating rate loans to fixed rates.
4.
Tax credit related to earlier years (net)'
substantially represents income-tax credit on certain benefits allowed by
Income Tax Appellate Tribunal, Jaipur during the current quarter.
5.
During the quarter the Company has made further
investment of Rs 51.000 Millions in its wholly owned subsidiary namely India
Steamship Limited.
6.
In view of the unfavourable status of negotiations
with the lenders, deteriorating credit situation in Europe and adverse
developments in the shipping industry due to global recession, the Board of
Directors at its meeting held on October 18, 2011 has decided to withdraw the
Scheme of Arrangement and De-merger of its Shipping Division into India
Steamship Limited.
7.
No investor complaint was pending at the beginning
and end of the quarter ended September 30, 2011. During this quarter, 42
investor complaints were received and resolved.
8.
Previous period figures have been regrouped and /
or re-arranged wherever necessary to make their classification comparable with
the current quarter.
9.
The auditors have conducted limited review of 4e
financial results for the period ended September 30, 201 1. The results were reviewed
by the Audit Committee. The Board has taken on record the financial results at
its meeting held on October 18,201 1.
FIXED ASSETS:
- Land – Freehold
- Land – Leasehold
- Building
- Leasehold Improvements
- Railway Siding
- Plant and Machinery
- Equipment
- Furniture and Fitting
- Vehicle
- Vehicle (On Finance Lease)
- Ships
- Software
WEBSITE DETAILS:
BUSINESS DESCRIPTION:
Subject is a fertiliser producer. It is the manufacturer of Urea in
private sector in India and is also into the trading of fertilisers and other
agri inputs. The Company also manufactures Synthetic and Cotton Yarn. It
operates in four segments: Own Manufactured Fertilizers, Trading, Textile and
Shipping. Own Manufactured Fertilizers segment includes manufacture and
marketing of urea. Trading segment includes the purchase and sale of
Fertilizers and Agricultural Inputs. Textile segment includes manufacturing and
sale of synthetic and cotton yarn. Shipping segment includes transportation of
crude oil and liquid products through vessels owned and/ or hired by the
Shipping Division. Shipping Division of the Company is engaged in the business
of running of ships for cargo. It has a joint venture in Morocco for
manufacturing phosphoric acid. During the fiscal year ended March 31, 2011
(fiscal 2011), the Company sold 20.41 lakh million tons of urea. For the fiscal
year ended 31 March 2010, Subject revenues decreased 26% to RS41.95B. Net
income decreased 4% to RS2.17B. Revenues reflect a fall in income from sales of
own manufactured products and decreased income from sales of traded products.
Net income was partially offset by a significant fall in consumption of raw
materials, lower purchase of traded goods and a significant fall in interest
and finance expense.
Board of
Directors:
Saroj Kumar Poddar
Non-Executive
Chairman
Mr. Saroj Kumar Poddar is Non-Executive Chairman of the Board of
Subject. He is a gold medalist in B. Com (Hons) from Calcutta University, is
the Chairman of Adventz group. Under Mr. Poddar, the group has promoted various
projects including joint ventures with international corporations. The most
notable of these ventures are Gillette India Limited ( joint venture with the
Gillette Company of U.S.A.) and Hettich India Private Limited (a joint venture
with the Hettich Group of Germany). Mr. Poddar is the Chairman of these Joint
Ventures. Mr. Poddar is the Chairman of Zuari Industries Limited, Chambal
Infrastructure Ventures Limited, Simon India Limited, Texmaco Limited, Texmaco
Rail and Engineering Limited, Zuari Cement Limited (a Unit of Ciments
Francais), Adventz Investments and Holdings Limited and Lionel India Limited He
is also on the Advisory Board of one of the most reputed investment brokers -
M/s. N M Rothschild and Sons (India) Private Limited Having served as President
of Federation of Indian Chambers of Commerce and Industry (FICCI) and
International Chamber of Commerce in India, the Government of India has
appointed Mr. Poddar on Board of Trade – the highest body on trade and also a
member of the Court, on the Indian Institute of Science, Bangalore. He is the
Chairman of India-Saudi Arabia Joint Business Council and a member of the Indo-
French CEO Forum. Mr. Poddar has also served for a decade as a member of the
Board of Governors of the Indian Institute of Technology, Kharagpur and local
Board of the Reserve Bank of India.
Shyam Sunder
Bhartia
Non-Executive
Co-Chairman
Mr. Shyam Sunder Bhartia is Non-Executive Co-Chairman of the Board of
Subject. Mr. Bhartia is the Chairman and Managing Director of M/s. Jubilant
Life Sciences Limited After graduating in Commerce, he did his ICWA from the
Institute of Cost and Works Accountants of India (ICWAI) and is a fellow member
of the ICWAI. A industrialist of India, he has industrial experience in the
Pharmaceuticals, Speciality Chemicals, Food, Oil and Gas (Exploration and
Production), Aerospace and Information Technology sectors. He is a director on
the boards of numerous companies both in India and overseas. He is a Member of
the Executive Committee of Federation of Indian Chamber of Commerce and
Industry (FICCI), Confederation of Indian Industry (CII) and Task Force on
Chemicals appointed by the Government of India. His past association to
institutional segment included - Member of Board of Governors of Indian
Institute of Technology (IIT), Mumbai and Indian Institute of Management (IIM),
Ahmedabad and Director on the Board of Air India.
Ram Nath Bansal
Non-Executive
Independent Director
Mr. Ram Nath Bansal is Non-Executive Independent Director of Subject. He
is M. A. (Economics) and an eminent professional. He is Fellow member of the
Institute of Chartered Accountants of India since 1954 and an Associate member
of the Institute of Company Secretaries of India. Mr. Bansal is on the Boards
of many companies. He has also served the Department of Company Affairs in
various capacities such as Registrar of Companies, Regional Director and
retired as Member, Company Law Board. He was Director (Investment) and
Additional Controller of Capital Issues in the Ministry of Finance. He was also
a nominee of the Central Government on the Central Council of Institute of
Chartered Accountants of India, Institute of Company Secretaries of India and
the Governing Board of various Stock Exchanges.
Dipankar Basu
Non-Executive
Independent Director
Mr. Dipankar Basu is Non-Executive Independent Director of Subject. He
is an M.A. (Economics). He is the Non-Executive Chairman of Securities Trading
Corporation of India Limited, STCI Primary Dealer Limited, Peerless General
Finance and Investment Company Limited and Peerless Securities Limited He is
currently a member of the Investment Advisory Committee of the Army Group
Insurance Fund and Empowered Committee of Reserve Bank of India for External
Commercial Borrowings. Mr. Basu is a former Chairman of State Bank of India.
Between 1996 and 1999, he served as a member of the Disinvestment Commission
set up by the Government of India. During 1997-98, Mr. Basu was also a member
of the Narasimham Committee on Banking Sector Reforms.
Anil Kapoor
Managing Director
Mr. Anil Kapoor is Managing Director and Executive Director of Subject.
He is a B. Tech from Indian Institute of Technology, New Delhi, one of the
world’s premier technological institutes and holds M. S. in Chemical Engineering
from State University of New York, USA. He has over 31 years of experience in
areas of production, logistics, purchase, administration, customer service and
in general management with reputed Indian and Multinational groups.
Kashi Nath Memani
Non-Executive
Independent Director
Mr. Kashi Nath Memani is Non-Executive Independent Director of Subject.
He is a Chartered Accountant. Mr. Memani specializes in Business and Corporate
Advisory, Foreign Taxation, Financial Consultancy etc. and is consulted on the
corporate matters by several domestic and foreign companies. He was Chairman
and Country Managing Partner, Ernst and Young, India until 31st March 2004. Mr.
Memani was also member of Ernst and Young Global Council for 10 years. Post
retirement, Mr. Memani has joined boards of various companies. He was also
member of various Committees of the Institute of Chartered Accountants of
India. For two consecutive years, Mr. Memani was on the External Audit
Committee (EAC) of the International Monetary Fund and was appointed as the
Chairman of EAC for the year 1999-2000. Mr. Memani is the past Chairman of
American Chamber of Commerce in India, former President of Indo American
Chamber of Commerce and PHD Chamber of Commerce. He is also member of managing
committees of various Industry bodies. Mr. Memani is ex-chairman of New Company
Law Drafting Committee and he was fi rst Chairman of Quality Review Board, both
set up by Government of India.
Chandra Shekhar
Nopany
Non-Executive
Director
Mr. Chandra Shekhar Nopany is Non-Executive Director of Subject since
September 16, 2008. He is an industrialist having industrial experience in
diverse fi elds like sugar, shipping, textiles and fertilisers. He is a
Chartered Accountant and Master of Science in Industrial Administration from
Carnegie Mellon University, Pittsburgh, U.S.A. Mr. Nopany is the Chairman and
Managing Director of The Oudh Sugar Mills Limited and the Chairman of Sutlej
Textiles and Industries Limited, New India Retailing and Investments Limited and
SIL Investments Limited He is also on the Board of Directors of several other
companies of the K. K. Birla group. Having contributed signifi cantly to
organic and inorganic growth of the Group, he continues to lead as a new
generation entrepreneur with dedication and concerted focus on the target to be
achieved.
Marco Philippus
Ardeshir Wadia
Non-Executive
Independent Director
Mr. Marco Philippus Ardeshir Wadia is Non-Executive Independent Director
of Subject. Mr. Wadia is B. A. (Hons.), LL.B. and is a practicing Advocate
since 1986, specializing in corporate matters. Mr. Wadia is a partner in the
firm of Crawford Bayley and Company, Solicitors and Advocates, Mumbai since
2001. He is on the Boards of various Companies.
PRESS RELEASES:
INDIAN BENCHMARKS SNAP AN EXHILARATING WEEK AFTER
SKYROCKETING BY 5%
14 October 2011
India, October 14 -- Indian equity indices showcased an enthralling
performance after five long weeks when the bourses had fervently rallied by 6%
for the week ended on September 2. The frontline indices skyrocketed by over
five percent on in the passing week and even went on to regain the important
psychological 5,100 (Nifty) and 17,000 (Sensex) bastions as encouraging
developments from the global front as well as the slight moderation in domestic
inflation numbers augured well in favor of the market participants. The
benchmarks began the week with a courageous performance as Friday's optimism
got spilled over into the Monday's session helping the indices to outclass
global markets by vivaciously rallying by two percentage points. What unfolded
in the next couple of days was a day of consolidation followed by a rebound of
two and half a percentage points. The bourses were destined for similar fortune
in the next two days as well but the magnitude of gains and losses was not on
the same lines. Bullishness seemed like returning to the markets which was
evident from the fact that the frontline indices showed some resilience and did
not capitulate despite some disappointing economic reports from the global as
well as domestic front. The domestic bourses were largely influenced by
encouraging reports from Europe where French President and German Chancellor
pledged to protect the banks and resolve the region's lingering debt trouble
that is threatening global growth. Sentiments also got boosted on the back of
reports that Slovakia's parliament will vote to endorse the amended EFSF at the
latest by Friday, while the European Commission President too announced a broad
new plan for recapitalizing the European banks, buttressing hopes that the
region's debt problems will be resolved soon. Investors also remained
optimistic ahead of the meeting of G20 finance chiefs and central banks heads
from the world's biggest economies in Paris, amid expectations that there is a
lot of intent to develop a global, sustainable solution to the European debt
crisis. On the domestic front, the second quarterly earnings season got off to
an enthralling start with Infosys announcing the better than expected second
quarterly earnings numbers and boosting overall market sentiments. In the
meantime, the draft national telecom policy 2011 too was unveiled by the
government which vows to revamp the sector and strives to achieve cent percent
rural tele-density by 2020. Furthermore, market participants even went on to
overlook the disappointing IIP readings for August, according to which IIP,
with base 2004-05, expanded by of 4.1%, down from 4.5% for the corresponding
month last year, and higher than the revised growth rate for July. Meanwhile,
cabinet gave its nod to the policy for acquisition of raw material assets
abroad by central PSUs with a 3-year profit record. The new policy will pave
the way for Navratna firms to invest up to Rs 30000.000 Millions in such assets
without government approval while it will allow Maharatna firms to invest upto
the limit of Rs.50000.000 Millions. Also, the cable and satellite television
industry was cheered after the CCEA cleared the ordinance to amend Section 4A
of the Cable TV, bringing digitization into TV broadcast as it would lead to a
substantial hike in the revenue in the first year because digitization will
help companies in providing value-added services. The slight moderation in
monthly and weekly inflation data too was unable to deter the sanguine domestic
sentiments. However, market participants remained concerned that the
discouraging industrial output growth for August and high monthly WPI inflation
numbers for September will largely determine the Reserve Bank of India's next
move on interest rate hikes. Policy makers are facing a harsh dilemma as a slew
of fiscal and monetary measures to curb inflation have failed to rein in prices
however, on the contrary they have caused side effects on economic growth. The
Bombay Stock Exchange (BSE) Sensex climbed by 850.15 points or 5.24% to
17082.69 during the week ended October 14, 2011. The BSE Mid-cap index was up
by 230.64 points or 3.87% to 6189.92 and the Small-cap index up by 186.41
points or 2.77% to 6907.96. On the sectoral front, IT up 457.62 points or 8.73%
at 5698.9, TECk up 258.50 points or 8.09% at 3453.43, Bankex up 716.67 points
or 6.93% at 11064.51, Consumer Durables (CD) up 357.79 points or 5.64% at
6703.82, Realty up 90.71 points or 5.23% at 1826.68 were the top gainers on the
BSE sectoral space, while, there was no loser on the BSE sectoral space. The S
and P CNX Nifty jumped by 244.25 points or 5.00% to 5132.30. On the National
Stock Exchange (NSE), Bank Nifty up 622.15 points or 6.88% to 9660.40, CNX IT
up 478.15 points or 8.49% to 6119.65 while CNX mid- cap up 241.80 points or
3.51% to 7135.95 and CNX Nifty Junior up 376.10 points or 3.95% to
9895.00.India's headline inflation measured by the wholesale price index (WPI)
eased marginally to 9.72% in September from 9.78% in August. This modest fall
in headline inflation was on the back of marginal decline in the primary
articles and manufactured products, which fell to 11.84% and 7.69% in
September, compared to 12.58% and 7.79% in August. However, the fuel and power
segment of WPI, surged by 14.09% in September from 12.84% in August. In the
first half of the current financial year, the headline inflation has been
hovering above 9%, which indicates that the RBI's anti-inflationary monetary
policy stance has failed to contain inflation. Index of Industrial Growth (IIP)
for the month of August 2011 grew by 4.1% compared to 5.6% in August 2010. The
IIP growth for August 2011 is less than the market's expectations of 5% however
it is marginally above from 3.84% in the last month. The manufacturing segment
which accounts for around 76% of IIP grew by 4.5% in August compared to 2.3% in
last month. Foreign Institutional Investors (FIIs) were net buyers in the
equity segment in the week with gross purchases of Rs 140820.000 Millions and
gross sales of 118116.000 Millions, leading to a net inflow of Rs 22704.000
Millions. They stood as net buyers in the debt segment as well with gross
purchases of Rs 59570.000 Millions against gross sales of Rs 31530.000
Millions, resulting in a net inflow of Rs 28040.000 Millions. Outlook for the
coming week: The gone week for the bourses has been extraordinary as the
bourses besides capturing gains of over 4% reclaimed their long lost
psychological level of 17000 mark (Sensex) and 5100 mark (Nifty) respectively.
The week which was packed with data saw the markets showcasing a resilient
trend as the bourses factored a host of negative events such as IIP data, which
came in at 4.1%, worse than expectation of 5% and September Inflation data,
which despite moderating came in at 9.72% for the month of September 2011 as
compared to 9.78% seen in the previous month. The markets in the coming week
would look for the outcome of the meeting held by the G20 finance chiefs and
central bank heads from the world's biggest economies in Paris on Friday.
French and German officials are expected to put together an action plan to help
ease the region's problems before a European Union summit on October 23,
2011.Meanwhile, Q2 earning season which started on a positive note, with good
results from IT bellwether Infosys is expected to be a major trigger for the
markets in the coming week. Investors for the coming week will be closely
watching the results from Reliance Industries, IT major -TCS, housing finance
major -HDFC and media major -Zee Entertainment Enterprises. Results from ING
Vysya Bank, Chambal Fertilisers and Chemicals, CRISIL, IndusInd Bank, HCL
Technologies, IFCI, NIIT Technologies, Patni Computer, Jindal Steel and Jet Air
India too would be eyed. Even rate sensitive's stocks like those belonging from
Realty, Bankex and Auto counters are expected to be in limelight well ahead of
the RBI's mid-quarterly monetary policy review on October 25, 2011. The Reserve
Bank of India (RBI) that has raised rates a dozen times since March 2010, seems
to be all prepared to deliver an another 25bps rate hike given the soaring rate
of inflation which has stayed above 9% for tenth straight month. On the global
front, investors' will be eying few major economic data from US, starting with
the Industrial Production data on October 17, 2011 followed by Producer Price
Index Data, Consumer Price Index and Housing Starts Data, Jobless Claims data,
Existing Home Sales data and finally the Philadelphia Fed Survey data on
October 20, 2011. Top Gainers Tata Motors up by 13.13% was the top gainer of
the Nifty for the week - Tata Motors has launched "Tata Manza sedan and
the international Tata Prima range" of premium commercial vehicles at the
Johannesburg International Motor Show 2011.The company has also exhibited, a
wide range of other vehicles, laden with latest technologies delivering better
comfort, convenience, performance and environment protection for the first
time. Tata Vista is displayed in passenger vehicles segment. Infosys gaining
9.37% was the other top gainer of the week - Infosys, net profit for the
quarter ended September 30,2011 rose by 11.03% at Rs 18220.000 Millions as
compared to Rs 16410.000 Millions for the quarter ended September 30, 2010.
India's second-largest software exporter is mulling to enter healthcare sector
by acquiring Thomson Reuters' healthcare business for $700-750 million. Thomson
Reuters planned to sell the unit, which had reported revenue of about $450
million in 2010 and it supplies healthcare data and analysis to companies,
government agencies and health professionals. Top Losers Maruti Suzuki down by
7.72% was the top loser of Nifty for the week - Maruti Suzuki India (MSI),
country's largest carmaker is facing rough time due to workers strike at its
plant in Gurgaon. The strike by the workers entered the 8th day despite the
Haryana government declaring it illegal for violating a settlement agreement
signed on October 1 to end a 33-day-long standoff. Coal India down by 4.44% was
the other top loser - Coal India blamed rains and delays in securing green
clearances due to which it missed its production targets in Q1 this fiscal.
However, the Coal Ministry is in no mood for excuses and has called a meeting
on the issue where it is likely to reproach the company's top brass. The
meeting, to be chaired by Coal Minister will be attended by officials of the
Coal Ministry, CIL Chairman and Managing Director and the CMDs of all the
subsidiaries of CIL. Technical Viewpoint – S and P CNX Nifty During the week, S
and P CNX Nifty touched the highest level of 5141.40 on October 14, 2011 and
the lowest point of 4882.05 on October 10, 2011. On the last trading day, the
Nifty closed at 5,132.30 with a weekly gain of 244.25 points or 5.00%. For the
coming week, 4962.43 followed by 4792.57 are likely to be good support levels
for the Nifty, while the index may face some resistance at 5221.78 and 5311.27
levels. US Markets The US markets extended the jubilant mood in the passing
week, as France and Germany pledged to do everything necessary to support
Europe's banks and Slovakia's parliament voted for expanded Europe bailout
fund. The market further got a boost when the Federal Reserve stated that some
officials last month wanted to keep further asset purchases as an option to
boost the economy as policy makers saw considerable uncertainty that US growth
will pick up. Most participants favored giving additional information on the
central bank's goals and how they influence the Fed's decisions, and most saw
advantages in tying the Fed's near- zero interest rates to more specific
developments in the economy, the Fed stated in minutes of the September 20-21
session. The US Federal Open Market Committee (FOMC) had decided to take the
debate on the $400 billion debt swap operation, and in order to reduce
borrowing costs. Federal Reserve Chairman Ben Bernanke stated, selling
short-term debt to buy long-term debt and reverse operation to boost US
economic recovery and reduce the unemployment rate to nearly 9% is of great
significance but not the big turning point. US House lawmakers will examine a
nearly 300-page proposal by former Federal Reserve Chairman Paul Volcker to ban
banks from trading for their own accounts, adding another level of scrutiny to
the rule proposed by four federal regulators this week. Moody's Investors
Service stated that the rule would be credit negative for bondholders of Bank
of America Corporation, Citigroup Inc, Goldman Sachs Group Inc, JPMorgan Chase
and Company and Morgan Stanley, all of which have substantial market-making
operations. The market jubilation was also supported by some good reports on
economic front. Initial jobless claims declined by 1,000 last week to 404,000.
The latest claims report came together with other data showing that US economy
is adding jobs at a stubbornly slow pace and the US trade deficit little
changed at $45.6 billion in August. Besides, investors are expecting that
reports of US retail sales will increase in September at the fastest pace in
six months, helping to ease concern the recovery is faltering. European Markets
the European markets too rallied during the passing week though pessimism
surrounded in between after Slovakian parliament rejected the measure to expand
the 440 billion euros rescue fund which led the fall of the current four member
coalition government. Later, Slovakia's parliament voted for the second time
and finally it approved an expanded Europe bailout fund. Slovakia is the last
of 17 nations needed to give the green light to a more-powerful European
Financial Stability Facility. Lawmakers voted 114 to 30 with three abstentions
to support the European Financial Stability Facility in the second attempt
after parliament failed to approve the measures on October 11. Also, the French
and German comments gave investors hope that European officials may take bigger
steps deemed necessary to control the region's sovereign-debt crisis. German
Chancellor Angela Merkel and French President Nicolas Sarkozy stated that they
will deliver a plan to recapitalize European banks and address the Greek debt
crisis by November 3. The markets got strength in the mid of the week after
Belgium stated that it will buy part of Dexia SA and provide security for
depositors as part of a plan to rescue the lender. The Belgian federal
government will pay 4 billion euros ($5.4 billion) for the division and
guarantee 60 percent of a so-called bad bank to be set up for Dexia's troubled
assets. European Commission President Jose Barroso stated that he will present
proposals on the recapitalization of banks as Europe's leaders struggle to
tackle the region's debt crisis. Besides, Greece stated inspectors from troika
completed their mission and approved the release of sixth tranche of aid.
However, there were mixed report on economic front, Industrial production in
August increased 1.2% from the previous month and soared 5.3% from a year ago,
according to the data released by the Eurostat. Capital goods production
increased 12.2% from a year ago and durable consumer goods output increased
2.8%. Output in Germany declined 1% from a month ago but soared 7.8% from a
year ago. UK unemployment hit the highest last seen in 1994. The unemployment
rate in three months to August increased to 8.1% and the number of unemployed
increased 114,000 to 2.57 million. Asian Markets Asian markets witnessed a
jubilant run during the passing week and all the regional indices snapped the
week's trade with decent gains as France and Germany announced an agreement to
support the euro zone's beleaguered banks. Moreover, investors risk appetite
got a boost after European leaders chalked out a broad new crisis plan to help
banks in Europe better defend against the effects of lingering debt market
turmoil. On the regional front, Chinese Shanghai soared over three percent
during the week, as the country's consumer inflation dipped to 6.1 percent in
September, retreating further from three-year highs. The sentiments remained
strong as the central bank of China said that it is more likely to keep its
current monetary stance unchanged and will wait for data in coming months to
judge the direction of policy. However, Chinese trade surplus narrowed for the
second consecutive month in September, raising concerns about a deteriorating
global economy and slowdown in the world's factory floor. Trade data released
on October, 13 showed that Chinese exports rose 17.1% last month from a year
earlier, down from 24.5% growth in August while Growth in imports slowed as
well. The gains in Chinese market also lifted Hong Kong market and its
benchmark Hang Seng remained the top gainers among the Asian peers, gathering
gain of about four and a half percent while, South Korean benchmark traded
continuously in the green during the week and gained over four percent, buoyed
by substantial gains in banking stocks and telecom issues. Other indices like,
Straits Times and KLSE rose by 3-4 percent during the week. Japanese Nikkei
rose over one and a half percent as Japan's machinery orders rebounded in
August on demand for electrical products, signaling that companies are willing
to invest even as global economic growth slows and the yen stays near
post-World War II highs. Core machine orders in the country surged to a
seasonally adjusted 11 percent in August compared to the previous month. Rising
for the third time in four months, the headline figure was well above analyst
expectations for a gain of 3.9 percent following the 8.2 percent plunge in
July. On an annual basis, core machine orders added 2.1 percent, well above
forecasts for a contraction of 3.6 percent following the 4.0 percent decline in
the previous month.
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.53.27 |
|
|
1 |
Rs.82.10 |
|
Euro |
1 |
Rs.68.90 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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.