MIRA
INFORM REPORT
|
Report Date : |
10.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
EXCEL INDUSTRIES
LIMITED |
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Registered Office : |
184-87, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
05.09.1960 |
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11-11807 |
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CIN No.: [Company
Identification No.] |
L24200MH1960PLC011807 |
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[Tax
Deduction & Collection Account No.] |
PNEE01415B |
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PAN No.: [Permanent Account No.] |
AAACE2488F |
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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 : |
Manufacturer of
agrobased, industrial and environment friendly chemicals |
RATING & COMMENTS
|
MIRA’s Rating : |
A (57) |
|
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 4000000 |
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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 fine track. Financial position is good. 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
INFORMATION DENIED BY
|
Name : |
Mr. Bharat Sanghani |
|
Designation : |
Manager |
|
Date : |
07.01.2011 |
LOCATIONS
|
Registered/ Head Office : |
184-87, |
|
|
91-22-66464200/
26704569/ 26704653/ 26794866/ 26705812/ 26788258/ 69/ 269433000/
26784255/26788258 |
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Fax No.: |
91-22-66963514/
26784522 / 26783732 /26783657 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No.112,
M.I.D.C. Industrial Area, Dhatav, Roha, District Raigad-402 116, |
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Factory 2 : |
D-9, M.I.D.C Lote
Parashuram, Taluka Khed, Ratnagiri-415722, |
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Factory 3 : |
Near Sewage Farm,
Narol Sarkhej Octroi Noka, Baherampura, Ahmedabad – 380 022, |
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DIRECTORS
As On 19.07.2010
|
Name : |
|
|
Designation : |
Chairman Emeritus |
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|
Name : |
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|
Designation : |
Chairman Emeritus
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Qualification : |
Grad. Grad. Instn. of Electronic and Radio Engg. ( Diploma in Operations Management and Factory Management. |
|
Date of Appointment : |
31.07.1999 |
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Name : |
|
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Designation : |
Chairman and
Managing Director |
|
Address : |
B-15, Vasant
Theosophical Society, |
|
Date of Birth/Age : |
22.01.1945 |
|
Date of Appointment : |
15.07.1975 |
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DIN No. : |
00019952 |
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Name : |
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Designation : |
Whole Time
Director |
|
Address : |
B-15, Vasant
Theosophical Society, |
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Date of Birth/Age : |
28.03.1947 |
|
Date of Appointment : |
13.09.2000 |
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DIN No. : |
00020519 |
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Name : |
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Designation : |
Whole Time
Director |
|
Address : |
D-8, Ram Kutir
Bangur Nagar, Goregaon (West), Mumbai – 400090, |
|
Date of Birth/Age : |
01.05.1953 |
|
Date of Appointment : |
03.09.2003 |
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DIN No. : |
00228617 |
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Name : |
|
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Designation : |
Director |
|
Address : |
7 Charotar
Society, |
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Date of Birth/Age : |
23.12.1947 |
|
Date of Appointment : |
26.08.1994 |
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DIN No. : |
00019645 |
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Name : |
|
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Designation : |
Director |
|
Address : |
20, Mitramandal
CHS Limited, Usmanpura, |
|
Date of Birth/Age : |
08.02.1955 |
|
Date of Appointment : |
06.12.2001 |
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DIN No. : |
00292417 |
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Name : |
|
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Designation : |
Director |
|
Address : |
186/7, |
|
Date of Birth/Age : |
24.03.1945 |
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Qualification : |
Chartered
Accountant |
|
Date of Appointment : |
24.05.2002 |
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DIN No. : |
00029835 |
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|
|
|
Name : |
|
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Designation : |
Director |
|
Address : |
Printemps 26 B G
Kher Marg, Mumbai – 400006, |
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Date of Birth/Age : |
09.03.1955 |
|
Date of Appointment : |
20.10.2002 |
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DIN No. : |
00045038 |
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|
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|
Name : |
|
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Designation : |
Director |
|
Address : |
Sanket 39,
Hatkesh Co-op HSG Sco Limited, 6th North South Road, Juhu Vile
Parle (W), Mumbai – 400056, Maharashtra, India |
|
Date of Birth/Age : |
03.02.1960 |
|
Date of Appointment : |
03.09.2003 |
|
DIN No. : |
00030792 |
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Name : |
|
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Designation : |
Director |
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Address : |
41, Landmark, |
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Date of Birth/Age : |
26.08.1946 |
|
Date of Appointment : |
25.03.2005 |
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DIN No. : |
00180955 |
|
|
|
|
Name : |
Mr. Nilesh
Bhaskar Sathe |
|
Designation : |
Director |
|
Address : |
72, Antariksha
Apartments, K G Marg, Khed Galli, Prabhadevi, Mumbai – 400025, |
|
Date of Birth/Age : |
01.05.1957 |
|
Date of Appointment : |
24.10.2008 |
|
DIN No. : |
02372576 |
|
|
|
|
Name : |
Mr. Mohanlal
Keshavji Vadgama |
|
Designation : |
Director |
|
Address : |
11-E, |
|
Date of Birth/Age : |
22.10.1928 |
|
Date of Appointment : |
30.07.2004 |
|
Date of Cessation : |
22.03.2010 |
|
DIN No. : |
00022565 |
KEY EXECUTIVES
|
Name : |
Mr. S K Singhvi |
|
Designation : |
Company Secretary
|
|
Address : |
A-8, Kumar
Aashiyana 582, Panmala Sinhagad Road, Pune – 411030, Maharashtra, India |
|
Date of
Birth/Age : |
24.11.1963 |
|
Date of
Appointment : |
04.01.2010 |
|
Pan No. : |
ADBPS4198R |
|
|
|
|
Name : |
Mr. Vasudev Kalidas
Parmar |
|
Designation : |
Company Secretary |
|
Address : |
31 Ranchhod
Apartments, 3rtd Floor, Hemu Kalani Cross Road No. 3, Kandivali (W), Mumbai –
400067, Maharashtra, India |
|
Date of Birth/Age : |
19.11.1945 |
|
Date of Appointment : |
27.12.2007 |
|
Date of Cessation : |
01.01.2010 |
|
Pan No. : |
AAEPP4026B |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
423,848 |
3.89 |
|
|
3,875,793 |
35.54 |
|
|
4,299,641 |
39.43 |
|
|
|
|
|
|
104,082 |
0.95 |
|
|
104,082 |
0.95 |
|
Total shareholding of Promoter and Promoter Group (A) |
4,403,723 |
40.38 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
950 |
0.01 |
|
|
1,015,899 |
9.32 |
|
|
1,609 |
0.01 |
|
|
1,018,458 |
9.34 |
|
|
|
|
|
|
425,613 |
3.90 |
|
|
|
|
|
|
3,939,673 |
36.13 |
|
|
1,029,662 |
9.44 |
|
|
88,501 |
0.81 |
|
|
88,501 |
0.81 |
|
|
5,483,449 |
50.28 |
|
Total Public shareholding (B) |
6,501,907 |
59.62 |
|
Total (A)+(B) |
10,905,630 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
10,905,630 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionAs On 19.07.2010
|
Category |
Percentage |
|
Public Financial
Companies |
10.40 |
|
Nationalized or
Other Banks |
0.04 |
|
Mutual Funds |
0.01 |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
0.68 |
|
Bodies corporate |
38.98 |
|
Directors or relatives of Directors |
4.86 |
|
Other top fifty shareholders |
10.54 |
|
Others |
34.49 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of agrobased,
industrial and environment friendly chemicals |
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Products : |
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PRODUCTION STATUS (As On 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Phosphorous and its Components |
Tonnes |
45700 |
35000 |
24558 |
|
Chemicals |
Tonnes |
10800 |
10400 |
6968 |
|
Organic Manure |
Tonnes |
*31700 |
12000 |
3765 |
Notes:
(a) Installed
Capacity is as certified by the Chairman and Managing Director on which the
Auditors have relied, being a technical matter.
(b) Production includes
quantities produced for internal consumption and job work.
(c) Production
excludes formulations produced out of captive/bought out technical grade
materials.
(d) Licensed
Capacity includes capacity as acknowledged by the Directorate General of Technical
Development/Secretariat for Industrial Approvals.
(e) *Capacity
being intimated to Secretariat for Industrial Approvals, for acknowledgement.
GENERAL INFORMATION
|
No. of Employees : |
1000
(approximately) |
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Bankers : |
·
Bank
of ·
State
Bank of ·
Axis
Bank Limited |
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Facilities : |
Notes: 1. Loans from
Banks on Cash Credit and Working Capital Demand Loan Accounts are secured by
hypothecation of all tangible movable assets, both present and future,
including stock of raw materials, finished goods, goods-in-process, stores,
book debts etc. and is secured by a second charge on the fixed assets at Roha
and Lote Parshuram. 2. Term Loan
under Vehicle Finance from HDFC Bank Limited amounting to Rs 0.131 millions (Previous Year: Rs
0.546 millions) and from Kotak Mahindra Prime Limited amounting to Rs. 2.239 millions (Previous Year:
Rs 2.310 millions) respectively are secured by hypothecation of the vehicles acquired by utilising the said
loans. 3. Term Loans
from Bank of India amounting to Rs
6.250 millions (Previous Year: Rs 31.250 millions) is secured by first
charge on all movable fixed assets, both present and future, of its units
situated at Roha and Lote Parshuram and is further secured by mortgage by
immovable properties, both present and future, of its units situated at Roha
and Lote Parshuram. 4. The aforesaid
charges are exclusive of book debts and stocks which are charged in favour of
the Company’s bankers for securing borrowings for working capital requirements.
|
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Banking Relations : |
-- |
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Auditors : |
|
|
Name : |
S R Batliboi and
Company Chartered
Accountants |
|
Address : |
Jalan Mills
Compound, 2nd Floor, 95 Ganpatrao Kadam Marg, Lower Parel, Mumbai
– 400013, |
|
Pan No. : |
AALFS0506L |
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Associates : |
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Subsidiaries : |
CIN:
U65990MH1983PLC030597 |
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Joint Ventures Companies: |
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|
Enterprises over
which Key Management Personnel and their relatives have significant
influence: |
|
CAPITAL STRUCTURE
As On 31.03.2010
Authorised
Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
38000000 |
Equity Shares |
Rs.5/- each |
Rs.190.000
millions |
|
850000 |
11% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.8.500 millions |
|
300000 |
Unclassified Shares |
Rs.5/- each |
Rs.1.500 million |
|
|
|
|
|
|
|
Total |
|
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10905630 |
Equity Shares |
Rs.5/- each |
Rs.54.528
millions |
|
|
(of the above shares 98,10,710 shares have been allotted as fully paid
up by way of Bonus Shares by capitalisation of General Reserve) |
|
|
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
54.528 |
54.528 |
54.528 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
967.021 |
912.796 |
914.761 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1021.549 |
967.324 |
969.289 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
341.800 |
478.475 |
563.322 |
|
|
2] Unsecured Loans |
259.305 |
273.875 |
172.563 |
|
|
TOTAL BORROWING |
601.105 |
752.350 |
735.885 |
|
|
DEFERRED TAX LIABILITIES |
146.826 |
101.922 |
99.370 |
|
|
|
|
|
|
|
|
TOTAL |
1769.480 |
1821.596 |
1804.544 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1018.065 |
1066.050 |
1083.409 |
|
|
Capital work-in-progress |
34.488 |
12.206 |
32.054 |
|
|
|
|
|
|
|
|
INVESTMENT |
99.615 |
99.749 |
122.995 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
338.171
|
361.827 |
325.831 |
|
|
Sundry Debtors |
563.690
|
555.591 |
637.575 |
|
|
Cash & Bank Balances |
25.527
|
18.566 |
14.867 |
|
|
Other Current Assets |
29.838
|
39.878 |
40.630 |
|
|
Loans & Advances |
193.471
|
178.896 |
158.284 |
|
Total
Current Assets |
1150.697
|
1154.758 |
1177.187 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
259.415 |
319.380 |
328.096 |
|
|
Other Current Liabilities |
129.772
|
80.550 |
167.828 |
|
|
Provisions |
144.198
|
111.237 |
115.177 |
|
Total
Current Liabilities |
533.385
|
511.167 |
611.101 |
|
|
Net Current Assets |
617.312
|
643.591 |
566.086 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1769.480 |
1821.596 |
1804.544 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2223.170 |
2311.912 |
2156.480 |
|
|
|
Processing Charges |
130.721 |
96.329 |
92.174 |
|
|
|
Other Income from Operations |
43.426 |
64.080 |
41.618 |
|
|
|
Other Income |
20.145 |
23.954 |
22.183 |
|
|
|
TOTAL (A) |
2417.462 |
2496.275 |
2312.455 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and other expenses |
2077.549 |
2323.248 |
2050.343 |
|
|
|
(Increase)/Decrease in stocks |
54.913 |
(37.110) |
4.999 |
|
|
|
Prior period adjustments |
(18.953) |
3.034 |
2.926 |
|
|
|
Short/Excess Provision for taxation for earlier years |
0.000 |
0.000 |
(0.276) |
|
|
|
Debenture redemption reserve written back |
0.000 |
0.000 |
(6.467) |
|
|
|
TOTAL (B) |
2113.509 |
2289.172 |
2051.525 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
303.953 |
207.103 |
260.930 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
71.743 |
96.138 |
102.616 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
232.210 |
110.965 |
158.314 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
99.296 |
100.291 |
95.147 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
132.914 |
10.674 |
63.167 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
53.255 |
6.259 |
17.177 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
79.659 |
4.415 |
45.990 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
112.280 |
124.245 |
121.015 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
30.000 |
10.000 |
30.000 |
|
|
|
Proposed Dividend |
21.811 |
5.453 |
10.906 |
|
|
|
Tax on Distributed Profits |
3.623 |
0.927 |
1.854 |
|
|
BALANCE CARRIED
TO THE B/S |
136.505 |
112.280 |
124.245 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
537.711 |
652.604 |
NA |
|
|
|
Commission |
1.518 |
1.468 |
NA |
|
|
TOTAL EARNINGS |
539.229 |
654.072 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
620.215 |
702.131 |
|
|
|
|
Components and Spare Parts |
0.143 |
0.000 |
NA |
|
|
|
Capital Goods |
3.940 |
2.575 |
|
|
|
|
Purchase of Traded Goods |
19.903 |
13.608 |
|
|
|
TOTAL IMPORTS |
644.201 |
718.314 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.30 |
0.40 |
3.62 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 (1ST Quarter) |
30.09.2010 (2ND Quarter) |
|
Net Sales |
|
715.020 |
684.470 |
|
Total Expenditure |
|
603.440 |
608.030 |
|
PBIDT (Excl OI) |
|
111.580 |
76.440 |
|
Other Income |
|
2.140 |
3.770 |
|
Operating Profit |
|
113.720 |
80.210 |
|
Interest |
|
14.690 |
14.600 |
|
PBDT |
|
99.030 |
65.610 |
|
Depreciation |
|
23.760 |
24.260 |
|
Profit Before Tax |
|
75.270 |
41.350 |
|
Tax |
|
22.580 |
13.110 |
|
Profit After Tax |
|
52.690 |
28.240 |
|
Prior Period Expenses |
|
(0.220) |
(2.960) |
|
Net Profit |
|
52.470 |
25.280 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.29
|
0.18 |
1.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.98
|
0.46 |
4.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.13
|
0.48 |
2.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.01 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.11
|
1.31 |
1.39 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.16
|
2.26 |
1.93 |
LOCAL AGENCY FURTHER INFORMATION
The Details of Sundry
Creditors:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
- total
outstanding dues of Micro and Small Enterprises |
- |
- |
- |
|
- total outstanding dues of creditors other than
Micro and Small Enterprises |
259.415 |
319.380 |
328.096 |
|
Total |
259.415 |
319.380 |
328.096 |
History
Subject was
originally incorporated as a partnership firm in 1941 and became public in
1965. Promoted by the Shroff family the promoters
increased their stake further by acquiring 19% stake from Tatas in 1996-97. The
Tatas originally acquired stake in Excel Industries in 1964 with the company.
Currently Shroffs and group companies with 33% shareholders of the company are
FIs who hold 33%. The company entered into joint venture with the company in
Even though the
Tata Group acquired a financial interest in this company Excel Industries
continue to be managed by members of the Shroff family. To bring more focus on
each business line of activity the company has restructured its business under
four divisions i.e Agri Business, Chemicals Business, Environ and Biotech
Business and Life Sciences Business supported by appropriate corporate functions
in FY 1999-2000.
The company further commissioned the plant for manufacture of Celrich at
Ahmedabad having a treatement capacity of 500 MT of waste per day during
1999-2000.
During 2000-2001, the company successfully commissioned the plant to manufacture
special purpose Polymer Additive having a capacity of 200 tonnes per annum and
also carried out substantial expansion of production capacity of Phosphonates
from 5000 tonnes per annum to 7000 tonnes per annum at its Lote Parshuram Unit.
The company has also launched 3 new formulations under the brand name of
Celcron, Hexzol and Bipex. The Chemicals Business division has successfully
commissioned 2 plants viz 200 TPA mining chemicals plant and 200 TPA to
manufacture speciality chemicals.
OPERATIONS:
During the year, the net sales decreased from Rs. 2311.900 millions to Rs. 2223.200 millions, registering a drop of 4% and Exports decreased from Rs. 664.100 millions to Rs. 547.700 millions registering a decline of 18%. During the year, the Company had a profit before tax of Rs. 114.000 millions compared to Rs. 13.700 millions in the previous year, and had a profit after tax of Rs. 60.700 millions compared to Rs. 7.400 millions in the previous year.
NEW
PROJECTS/EXPANSIONS/IMPROVEMENTS
The capacity of the Polymer Inputs Plant at the Company’s unit at Lote Parshuram was increased from 1000 MT per Annum to 1500 MT per Annum by addition of certain equipments. This was done to meet the peak load demand.
In order to prepare for the Company’s future needs, the Biological treatment capacity in the Effluent treatment section is also being enhanced.
OUTLOOK:
The current year has started with a good demand for the
Company’s products in various segments. The imports of Diethyl Thiophosphoryl
Chloride from
Based on the market acceptance of the Organic Waste Converter Machine, the Company expects to achieve significant rise in the number of machines to be sold in the current year. The large fertilizer companies are planning to market organic compost along with their chemical fertilizers and success of this initiative will lead to increased sales of Celrich from Ahmedabad Plant.
MANAGEMENT DISCUSSION AND
ANALYSIS:
BUSINESS REVIEW:
Business Segment - Chemicals Business Division:
(a) Industry structure and development:
The Company
operates in the area of chemical intermediates which are the inputs to
Agrochemicals, Commodity
Polymers, Engineering polymers, Soaps and detergents, Water Treatment
Chemicals and Biocides. The Company continues to maintain its pioneer status in
The interventions by the Government in
The domestic production of Diethyl Thiophosphoryl Chloride, one such end
product from the Company, was severely affected due to the low priced imports
from
Provisional duty of varying amounts based on specific exporter source
was imposed in June 2009 and the final findings have been notified, but the
declaration of the Anti Dumping Duty is yet to take place. The domestic
producers hope that the process will be completed in time.
The raw materials used by the industry include items that are derived
from crude oil and hence the escalating oil price impacts the industry’s
performance. As most of the companies maintain a balanced portfolio of domestic
and export sales, the volatility of foreign exchange rate also affects the
profitability. The year has witnessed a steadily rising Crude Oil price and a
steady strengthening of the Indian Rupee. The Company also has had to endeavor
to operate with appropriate strategy and high efficiency in this challenging
environment.
(b) Opportunities
and threats:
Confirmed trends of global economic recovery leading to increased industrial
production in
The much delayed decision of imposition of Anti Dumping Duty, if
confirmed, may help the Company to improve its volumes. The crop protection
industry has voiced apprehension that the Chinese producers will start dumping
the end products if the intermediates are subjected to Anti Dumping Duties.
This could seriously affect the volumes sold by the Company.
(c) Segmentwise performance and
outlook:
The year, at the beginning, was still under the impact of the recession which
had set in the last quarter of 2008. As it progressed, the slow but certain
easing process was experienced. The consuming end industries like Crop protection,
Polymer and Soaps and detergents carried out increased productions and this
allowed the Company to improve its capacity utilization compared to the
previous year. The Company had to cope with a sharp reduction in the prices of
its products whereas the relief from the reduction in the raw material costs
was not enough to compensate. However, the volumes increased owing to healthy
recovery in most of the end user industry and the benefit due to this
contributed to the improvement in the profitability. The Company has received
forecasts for the year 2010 from many of its overseas customers. The domestic
productions in Polymer and agrochemical sectors are also promising.
(d) Risks and
concerns:
The prices of the major raw material Yellow Phosphorous have been steadily
rising since the beginning of 2010 owing to paucity of rains in most provinces
in
Business Segment -
Environment and Biotech Division:
(a) Industry Structure:
The Company is engaged in the business of Waste Management. There is an increasing
awareness of the adverse impact of the urban waste management methods practiced
in the past and still in vogue today. Running out of capacity of the existing
sites for dumping of Municipal solid waste and inability to find and set up
newer sites in the face of stiff opposition from voluntary organizations and
people at large, the Civic bodies are compelled to look at newer and more
comprehensive solutions and the time is ripe for private sector participation
in this sector. Composting of the organic component of the waste to generate
organic manure or energy, Mechanical compression to produce Fuel briquettes and
engineered land filling of the remaining residue are the various technologies.
These technologies can form a complementing combination or compete with each
other too. Several new private sector players are entering the business to
offer integrated solutions like collection, transportation, treatment and final
disposal of the Municipal Solid Waste but not all of them are in possession of
a technology appropriate for large scale composting and they would look to
associate with the Company for this part of the project.
(b) Opportunities, threats, risks and
concerns:
The integrated projects being conceived and proposed by large private sector
companies, invariably, carry a very large Capital cost outlay and need support
like Tipping Fee. These projects are therefore experiencing a long delay in
getting the sanction from the civic bodies and often get into political
entanglement. Projects favour energy generation from the organic waste as it is
to sell energy compared to selling the compost. The major problem associated
with the selling of the compost is the cost of transportation. There is no
subsidy for the farmer to use the compost unlike the large subsidy offered for
the use of Chemical fertilizer.
The scenario, however, is changing fast. Awareness of the ill effects of
excessive use of Chemical Fertilizers has
resulted in the Government issuing a directive to all the leading
Fertilizer companies in the country to include Organic compost as a co-marketed
product and as a result, there is an increasing demand for the compost. The
Compost has also been included in the Fertilizer Control Order and the imposed
quality requirements will eliminate poor quality producers and products that
were indulging in unhealthy competition. The Company is developing its strategy
to associate itself with leading Fertilizer companies to sell its compost and
thus significantly increase the capacity utilization of its plant.
The “at source treatment” solution that the Company has developed
through its Organic Waste Converter offers major advantages to the bulk
generators of organic waste. The Company has been marketing the machine for the
past two years and has been receiving very good response from various sectors.
The Company is working to grow this business several fold and is attending to
issues in Manufacturing, Marketing, After Sales and Organization building
issues. Recession in the economy resulting slowing down of realty sector,
travel and tourism sector, Infrastructure and the like tends to affect the
demand growth for the machine and it appears that the country’s recovery from
the setback of 2008-09 will offer a growth path in the near future.
(c) Segment wise performance and
outlook:
The Company was able to increase the production and sales of the compost from
its Ahmedabad plant owing to the tie up with a fertilizer company. Product
development for granulated Celrich is completed and process improvement for
obtaining higher yield has also been successfully commissioned. The Company
looks forward to further increased sales of Celrich and of other Bio products
in the current year.
The Company also entered into an agreement with a
In the case of Organic Waste Converter, 88 machines valued at Rs. 60.800
millions were sold as against 65 valued at Rs. 50.000 millions in the previous
year. The feedback from the market is very positive and nearly 50% of the new
orders the Company receives are from repeat customers. The Company is taking
steps to streamline the sourcing of the machine and is setting up sales network
to exploit the full potential.
(d) Risk Concerns:
The Company has been successful in securing an Indian Patent for the
Organic Waste Converter Machine. However, machines for carrying out the same
process and look alike in design are being introduced by different parties in
different parts of the country. Inadequate performance of such machines will
create disrepute for the pioneer machine as well. The Company will examine its
option to resort to legal actions and take suitable steps.
|
Contingent
Liabilities |
As On 31.03.2010 (Rs. In Millions) |
|
Bills Discounted |
6.725 |
|
Disputed income tax liability |
66.742 |
|
Disputed excise-duty liability |
14.269 |
|
Disputed sales-tax liability |
0.514 |
|
Disputed services tax liability |
1.457 |
|
Disputed water charges |
- |
|
Guarantee given by company Bankers on behalf of the company to third parties |
5.516 |
|
Claim against the company not acknowledged as debts Liability in respect of claim made by workers and contract laborers |
2.746 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2010
Rs. In Millions
|
|
Quarter ended |
Half year ended |
|
Particulars |
30.09.2010 (Unaudited) |
30.09.2010 (Unaudited) |
|
Gross Sales |
681.578 |
1379.691 |
|
Excise Duty |
48.841 |
91.880 |
|
Net Sales |
632.737 |
1287.811 |
|
Other Operating Income |
51.736 |
111.683 |
|
Total Income |
684.473 |
1399.494 |
|
Total Expenditure |
|
|
|
(a) (Increase)/decrease in Stock |
(10.476) |
(12.061) |
|
(b) Consumption of Raw Materials |
307.568 |
623.604 |
|
(c) Purchase of traded goods |
10.933 |
30.548 |
|
(d) Personnel Cost |
100.061 |
193.240 |
|
(e) Depreciation |
24.260 |
48.023 |
|
(f) Other Expenditure |
199.945 |
376.143 |
|
Total Expenditure |
632.291 |
1259.497 |
|
Profit From Operations before other Income Interest |
52.182 |
139.997 |
|
Other Income |
3.772 |
5.915 |
|
Profit before Interest |
55.954 |
145.912 |
|
Interest |
14.602 |
29.293 |
|
Profit before taxation and prior period adjustments |
41.352 |
116.619 |
|
Provision for Taxation |
|
|
|
- Current |
9.458 |
25.859 |
|
- In respect of earlier years |
0.000 |
(0.543) |
|
- Minimum Alternate tax entitlement |
6.686 |
15.604 |
|
Wealth tax |
- |
- |
|
- Differed |
(3.035) |
(5.230) |
|
- Fringe benifit Tax |
- |
- |
|
Profit before prior period adjustments |
28.243 |
80.929 |
|
Prior period adjustments |
(2.960) |
(3.176) |
|
(Short)/Excess Provision for taxation for earlier years |
- |
- |
|
Debenture Redemption Reserve Written Back |
- |
- |
|
Net Profit |
25.283 |
77.753 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.5/- each ) |
54.528 |
54.528 |
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
|
Basic and Diluted Earning Per Share (Rs.) |
2.32 |
7.13 |
|
Public Share Holding |
|
|
|
- Number of Shares |
6501907 |
6501907 |
|
- Percentage of shareholding |
59.62% |
59.62% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
38519 |
38519 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
0.87% |
0.87% |
|
- Percentage of shares(as a % of the total share capital of the company) |
0.35% |
0.35% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
4365204 |
4365204 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
99.13% |
99.13% |
|
- Percentage of Share (as a % of the total share capital of the company) |
40.03% |
40.03% |
UNAUDITED SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER
AND HALF YEAR ENDED 30.09.2010
Rs. In Millions
|
|
Particulars |
Quarter ended |
Half year ended |
|
|
|
30.09.2010 (Unaudited) |
30.09.2010 (Unaudited) |
|
A |
Segment Revenue |
|
|
|
|
i) Chemicals |
658.663 |
1349.770 |
|
|
ii) Environment and Biotech |
25.807 |
49.196 |
|
|
iii) Unallocated |
0.003 |
0.528 |
|
|
Total Income from Operations |
684.473 |
1399.494 |
|
B |
Segment Results |
|
|
|
|
Profit/(Loss) before Tax and Interest |
|
|
|
|
i) Chemicals |
77.955 |
193.603 |
|
|
ii) Environment and Biotech |
5.765 |
12.653 |
|
|
Total |
83.720 |
206.256 |
|
|
Less: i) Interest |
14.602 |
29.293 |
|
|
ii) Other Unallocable Expenditure |
|
|
|
|
net of Unallocable Income |
30.726 |
63.520 |
|
|
Total Profit/(Loss) Before Tax but after Prior Period Adjustments |
38.392 |
113.443 |
|
C |
Capital Employed (Segment Assets minus Segment Liabilities) |
|
|
|
|
i) Chemicals |
1527.674 |
1527.674 |
|
|
ii) Environment and Biotech |
65.788 |
65.788 |
|
|
iii) Unallocated |
(19.595) |
(19.595) |
|
|
Total |
1573.867 |
1573.867 |
Note:
The capital employed of the respective segments is worked out after considering the operating assets and liabilities that are directly attributable to the segments as well as allocated to the segments on a reasonable bass.
|
Corporate
identity number of the company |
L24200MH1960PLC011807 |
||||||
|
Name of the
company |
EXCEL INDUSTRIES
LIMITED |
||||||
|
Address of the registered
office or of the principal place of
business in |
|
||||||
|
This form is for |
Modification of
charge |
||||||
|
Type of charge |
Book Debts Movable Property |
||||||
|
Particular of
charge holder |
|
||||||
|
Nature of
instrument creating charge |
Third
supplemental joint deed of hypothecation agreement date 31.07.2009 |
||||||
|
Date of
instrument Creating the charge |
31.07.2009 |
||||||
|
Amount secured by
the charge |
Rs. 940.000
Millions |
||||||
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest – WCDL/CASH CREDIT Bank of State Bank of Axis Bank Limited
: BPLR - 2% (13%)p.a at mthly rests Terms of Repayment – The Borrower
shall pay to each of the Banks their respective dues including interest, cost
and expenses in terms of Agreement. Margin – 1) Bank of
India:- 25% indigenous RM & 35% imported RM, SFG, Stores and Containers,
FG 2) State Bank of 3) Axis Bank of Receivables:- 40% up to 90 days receivable and 50% over
90 days up to 120 days. NIL -FBP / FBD /
FBN / Guarantee / Inland / Import LC Extent and Operation of the charge – The whole of the
current assets of the Company namely stock of Raw Materials, Stock in
Process, Semi Finished and Finished Goods, Stores and Spares not relating to
Plant / Equipment and Machinery (consumable stores and spares), Bills
Receivable and Book Debts and all other movable both and present and future
whether now lying loose or in cases or which are now lying or stored in or
about or shall hereinafter from time to time during the continuance of the
security of these presents. Others – Commission:- As per Bank's /FEDAI's rule from time to
time for Guarantee / LC Service Charges:-
As applicable |
||||||
|
Date of
instrument modifying the charge |
31.10.2007 |
||||||
|
Particulars of
the present modification |
The Original
Charge was created on 08.12.2004 which was modified on 24.03.2005 (1st modification),
31.10.2007 (2nd modification). Now by the Present modification dated.
31.07.2009. [3rd modification] the limit of Rs. 750.000 millions increased to
Rs. 940.000 millions and sharing pattern in consortium is as per Third
Supplemental Joint Deed of Hypothecation dated 31.07.2009. |
Fixed Assets
- Freehold and Leasehold land
- Buildings
- Leasehold Improvements
- Plant and Machinery
- Date processing equipments
- Electrical installations
- Laboratory equipments
- Furniture and fixtures
- Office equipments
- Trade marks
- Vehicles
- Technical books
- Computer
AS PER WEB SITE DETAILS:
CORPORATE PROFILE
Subject has come a long way since its origin in a kitchen laboratory in 1941.
Over the years, subject came to be known as an industry leader in the area of
agro-chemicals and agro chemical intermediates. Using its expertise in
Chemistry and Chemical technology, subject also expanded its chemicals
manufacturing range to include Water treatment chemicals and Polymer Additives
and few other specialty chemicals.
Subject’s commitment to sustainable development led to venture into the field
of Environment and Bio-technology. Subject is a Pioneer and Technology leader
in rapid conversion of Municipal Solid Waste to organic compost. Their organic
plant protection and soil/crop productivity enhancers are well accepted in the
market.
In order to ensure focused attention to the expanded range of activities, the
agro business division was spun off as a separate company, Subject Crop Care
Limited in 2003. Today, Subject is organized into three divisions i.e. a.
Chemicals, b. Pharmaceuticals and c. Environment and Biotech.
Ever since their inception, they have built up a solid history and reputation
of developing, manufacturing and exporting chemicals. They have achieved over
100 product and process breakthroughs that even now are serving the specific
needs of various clients.
They have excellent research facilities in Mumbai and at their manufacturing
locations. During the last six decades, they have received numerous awards in
recognition of their dedication and excellence in the field of chemicals. From
the very beginning, in 1941, when their founder Mr.
Overseas Operations:
Right from the beginning, Exports has been an important component of the
overall operations of Excel. Today the total annual export turnover of Excel is
about 12 Million USD. In the international market, there products are used in a
wide range of applications including manufacture of Crop Protection Chemicals,
Water Treatment, Textile Processing, Ore enrichment etc.
There Codex range of Phosphonates is a well established brand in the
international market. They have a strong network of channel partners to
effectively service the local requirements in various countries.
They are equipped with adequate delivery capabilities to effectively
service the requirements of there esteemed customers. They have the capability
to supply in drum, IBCs or ISO tanks as per customer requirement. For certain
customers, they are also maintaining a fleet of ISO tanks. They have adequate
storage capacity to ensure "sale from stock".
In order to expand there export operations, they are open and would welcome
associations with reliable and active channel partners, in regions where they
do not have arrangements in place.
Environment and Biotech:
Human being has always
tried to set his own order in regulating every form of life on the earth. He viewed
every natural resource from the point of his immediate benefit. He nurtured
animals and plants that he found useful and destroyed or uncared the ones that
he found not useful. In the process, he disturbed the balance of nature so much
that now he realizes his folly for setting a wrong trend in transferring his
legacy to his future generations. This realization is coming fast across the
entire human race all over the world.
In agriculture, the
greatest transformation came with the discovery of chemical fertilizers in
early 1900s, which changed the whole concept of plant nutrition. The use of
synthetically produced plant nutrients, principally nitrogen, phosphorous and
potash became a practice and a slogan in crop production and they have
undoubtedly contributed much to increasing there crop yields for over 50 years.
However, over
reliance on chemical fertilizers has created many unforeseen environmental and
economical problems all over the world including
A treadmill has set
in for use of more and more fertilizers and this has now reduced crop
productivity in relation to increased cost of cultivation. Lands in many
situations have degraded and lost their fertility, food and water contaminated
and environment polluted. Human and environmental health all over the world is
affected and managing it is very costly.
It is with this
concern for developing agricultural practices and systems that can effectively
address the immediate issue of introducing and element of sustainability in
Indian Agriculture, that this Division has taken up as a challenge and as its
mission.
Excel has developed
biodynamic products and processes for dealing with Environment and Biotech
problems encompassing municipal solid waste, putrescible wastes from the
agriculture, horticulture and aquaculture industries, sewage sludge, industrial
waste streams and contamination of soils and waters by hydrocarbons and other
organic compounds. Its activities include sanitization, bio-conversion, bio-remediation
and bio-augmentation.
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.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
57 |
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.