MIRA
INFORM REPORT
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Report Date : |
06.07.2011 |
IDENTIFICATION DETAILS
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Name : |
AARTI INDUSTRIES LIMITED |
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Formerly Known As : |
AARTI ORGANICS LIMITED |
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Registered Office : |
Plot No. 801, 801/23, G.I.D.C. Estate, Phase III,
Vapi – 396195, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
28.09.1984 |
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Com. Reg. No.: |
04-7301 |
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CIN No.: [Company Identification
No.] |
Rs.383.600 millions |
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CIN No.: [Company
Identification No.] |
L24110GJ1984PLC007301 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTA02524E |
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PAN No.: [Permanent
Account No.] |
AABCA2787L |
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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, Importer and Exporter of Organic Chemicals. |
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No. of Employees : |
2200 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 15000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track. Financial position of the company appears to be sound. Directors are reported as experiences, respectable and resourceful businessman. Their trade relations are reported to be correct 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Kunal Gala |
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Designation : |
Finance Executive |
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Date : |
05.07.2011 |
LOCATIONS
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Registered Office/ Factory 1 : |
Plot Nos. 801, 801/23, GIDC Estate, Phase III, Vapi – 396
195, District Valsad, |
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Tel. No.: |
91-2638-25690411 / 2 / 3 / 25918195 / 55976666 |
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Fax No.: |
91-2638-25904806 / 25653186-87 / 25653185 |
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E-Mail : |
secretarial@aartigroup.com |
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Website : |
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Corporate Office : |
Udyog Kshetra, II Floor, L.B.S. Marg, Mulund – |
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Tel. No.: |
91-22-67976666 / 2591 8195 |
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Fax No.: |
91-22-2565 3234 / 2565 3185 |
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E-Mail : |
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Factory 2: |
Plot Nos. 902, GIDC Estate, Phase II, Vapi – 396 195,
District Valsad, |
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Factory 3: |
Plot Nos. 752-753-754
Sarigam Industrial Area, Sarigam, Taluka Umargaon, District Valsad, |
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Factory 4: |
Plot Nos. 758/1, 758/2, Jhagadia Mega Estate, Village Kapalsadi, Taluka Jhagadia, District Bharuch, Gujarat, India |
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Factory 5: |
Plot No. K-18, MIDC,
Tarapur, District Thane, |
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Factory 6 : |
Plot No. E-50, MIDC,
Tarapur, District Thane, |
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Factory 7: |
Plot Nos. 62, 63 and 64, Sagore, Pithampur Industrial Area, Sector-3,
Pithampur, District Dhar, Madhya Pradesh, India |
DIRECTORS
AS ON 31.03.2010
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Name : |
Mr. Chandrakant V. Gogri |
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Designation : |
Chairman |
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Name : |
Mr. Rajendra V. Gogri |
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Designation : |
Vice Chairman and
Managing Director |
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Name : |
Mr. Shantilal T. Shah |
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Designation : |
Vice Chairman |
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Name : |
Mr. Parimal H. Desai |
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Designation : |
Whole time
Director |
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Name : |
Mr. Manoj M. Chheda |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Rashesh C. Gogri |
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Designation : |
Whole Time
Director |
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Name : |
Ms. Hetal Gogri Gala |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Kirit R. Mehta |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Ramdas M. Gandhi |
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Designation : |
Independent
Director |
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Name : |
Mr. Vijay H. Patil |
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Designation : |
Independent
Director |
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Name : |
Mr. Laxmichand K. Jain |
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Designation : |
Independent
Director |
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Name : |
Mr. Haresh K. Chheda |
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Designation : |
Independent
Director |
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Date of Appointment: |
27.03.2003 |
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Name : |
Mr. K V S Shyam Sunder |
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Designation : |
Independent Director |
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Name : |
Mr. P A Sethi |
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Designation : |
Independent
Director |
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Name : |
Mr. Bhavesh R Vora |
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Designation : |
Independent
Director |
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Name : |
Mr. Sunil M Dedhia |
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Designation : |
Independent
Director |
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Name : |
Mr. Murlidhar R. Mondkar |
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Designation : |
Director |
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Date of Appointment: |
27.07.2002 |
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Date of Ceasing: |
27.03.2003 |
KEY EXECUTIVES
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Name : |
Ms. Mona Patel |
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Designation : |
Company Secretary |
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Name : |
Mr. Mohan P. Sonar |
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Designation : |
Company Secretary |
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Date of Appointment : |
Upto 09.07.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total
No. of Shares |
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As a % of
(A+B+C) |
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(A) Shareholding of Promoter and Promoter Group |
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25,066,546 |
32.67 |
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13,236,517 |
17.25 |
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38,303,063 |
49.93 |
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Total shareholding of Promoter and Promoter Group (A) |
38,303,063 |
49.93 |
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(B) Public Shareholding |
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6,563,010 |
8.55 |
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25,820 |
0.03 |
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287,895 |
0.38 |
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6,876,725 |
8.96 |
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2,309,536 |
3.01 |
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14,454,220 |
18.84 |
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14,104,575 |
18.38 |
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671,953 |
0.88 |
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670,813 |
0.87 |
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1,140 |
- |
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31,540,285 |
41.01 |
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Total Public shareholding (B) |
38,417,010 |
50.07 |
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Total (A)+(B) |
76,720,073 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
76,720,073 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
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Line of Business : |
Manufacturer, Importer and Exporter of Organic Chemicals. |
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Products : |
·
2:4
Dinitro Chloro Benzene (DNCB) ·
·
Ortho
Dichloro Benzene (ODCB) ·
Nitro
Benzene ·
Alkylated
Anilines and Toluidines ·
Chloro
Phenols ·
Fluoro
Compounds ·
Agrochemicals ·
Other
Major Products ·
Bulk
Drug Intermediates / Speciality Chemicals ·
Bulk
Pharmaceuticals ·
Bulk
Drugs Under R and D ·
Dyes |
PRODUCTION STATUS
(As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Nitro Chloro Benzenes (NCBs) |
Mt. Per annum |
60000 |
31125.33 |
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Sulphuric Acid and Allied Products |
Mt. Per annum |
200000 |
166671.77 |
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Ortho Phenylene Diamine (OPDA) |
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N.A. |
221.69 |
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Quinalphos |
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N.A. |
495.68 |
GENERAL INFORMATION
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No. of Employees : |
2200 (Approximately) |
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Bankers : |
·
Bank of Govind Kunj, ·
Union Bank of ·
State Bank of ·
Bank of B and C Wing, Mittal Tower, N. P.,
Mumbai – 400 021, · Corporation Bank · HDFC Bank Limited · ICICI Bank Limited · IDBI Bank Limited · Citi Bank Limited · ABN Amro Bank · Standard Chartered Bank ·
Export – Import Bank of · AXIS Bank |
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Facilities : |
(Rs. in millions)
(Rs. in millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Parikh Joshi and Kothare Chartered Accountants, |
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Address : |
49/2341, Shri Sai Kripa Co-operative Housing Society, M.
H. B. Colony, Gandhi Nagar, Bandra (East), Mumbai – 400 051, |
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Enterprises/Firms
over which controlling individuals/key Management Personnel, of the Company
along with their relatives: |
·
Alchemie Pharma Chem Limited ·
Alchemie Industries ·
Gogri and Sons Investments Private Limited ·
Shanti Intermediates Private Limited ·
Alchemie Leasing and Financing Private Limited ·
Nascent Chemical Industries Limited ·
Alchemie Laboratories 8. Aarti Drugs Limited |
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Subsidiaries: |
· Aarti Corporate Services Limited ·
Alchemie ( 7-9, St.
Mary's Place, Bury Lanes, Bl9 ODZ, · Aarti Healthcare Limited · Alchemie Europe Limited |
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Associates : |
· Ganesh Polychem Private Limited ·
Anushakti Chemicals and Drugs Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
12,50,00,000 |
Equity Shares |
Rs.5/- each |
Rs.625.000 millions |
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Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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7,67,20,073 |
Equity Shares |
Rs.5/- each |
Rs.383.600 millions |
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Notes:
of the above Shares - :
[a] 6,22,28,216 (As at 31st March, 2009 - 6,22,28,216) have been issued
as Fully Paid Bonus Shares.
[b] 30,00,000 (As at 31st March, 2009 - 30,00,000) have been issued to
Shareholders of Salvigor Laboratories Limited pursuant to its Merger with the
Company.
[c] 16,62,638 (As at 31st March, 2009 - 16,62,638) have been issued to
Shareholders of Mahaval Organic Limited pursuant to its Merger with the
Company.
[d] 10,25,050 (As at 31st March, 2009 - 10,25,050) have been issued to
Shareholders of Alchemie Organics Limited pursuant to its Merger with the
Company.
[e] 8,43,649 (As at 31st March, 2009 - Nil) have been issued to
Shareholders of Surfactant Specialities Limited pursuant to its Merger with the
Company.
[f ] 42,000 (As at 31st March, 2009 - Nil) have been issued to
Shareholders of Avinash Drugs Limited pursuant to its Merger with the Company.
[g] 30,25,000 (As at 31st March, 2009 - Nil) have been issued towards
Preferential allotment at a premium of Rs 30.65 paise to Warrant Holders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
383.600 |
364.047 |
364.000 |
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2] Share Application Money |
0.000 |
4.428 |
0.000 |
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3] Equity Share Warrents |
0.000 |
10.784 |
0.000 |
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4] Reserves & Surplus |
3603.039 |
3034.501 |
2460.600 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3986.639 |
3413.760 |
2824.600 |
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LOAN FUNDS |
|
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1] Secured Loans |
4010.053 |
4344.048 |
3881.100 |
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2] Unsecured Loans |
354.783 |
481.693 |
411.900 |
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TOTAL BORROWING |
4364.836 |
4825.741 |
4293.000 |
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DEFERRED TAX LIABILITIES |
511.073 |
452.073 |
0.000 |
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TOTAL |
8862.548 |
8691.574 |
7117.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3816.648 |
3667.611 |
2802.700 |
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Capital work-in-progress |
91.450 |
85.476 |
342.500 |
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INVESTMENT |
152.512 |
152.780 |
261.800 |
|
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DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
2635.375
|
2009.418
|
1971.300
|
|
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Sundry Debtors |
2564.5530
|
2665.727
|
1990.300
|
|
|
Cash & Bank Balances |
114.101
|
60.241
|
75.900
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2221.690
|
1762.984
|
1648.400
|
|
Total
Current Assets |
7535.719 |
6498.370 |
5685.900
|
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1469.871 |
|
1343.700 |
|
|
Other Current Liabilities |
14.247 |
25.188 |
|
|
|
Provisions |
1251.698
|
969.112
|
641.100
|
|
Total
Current Liabilities |
2735.816 |
1717.265 |
1984.800 |
|
|
Net Current Assets |
4799.903 |
4781.105 |
3701.100 |
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MISCELLANEOUS EXPENSES |
1.245 |
2.762 |
9.500 |
|
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Deferred Revenue Expenditure |
0.790 |
1.840 |
0.000 |
|
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|
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|
|
|
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TOTAL |
8862.548 |
8691.574 |
7117.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
|
|
|
|
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Income |
12893.786 |
14469.783 |
8861.500 |
|
|
|
Other Income |
18.150 |
22.922 |
47.200 |
|
|
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TOTAL (A) |
12911.936 |
14492.705 |
8908.700 |
|
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|
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|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
9215.891 |
|
|
|
|
|
Purchase of Goods Traded in |
1139.742 |
922.263 |
|
|
|
|
Office and Administrative Expenses |
149.392 |
136.892 |
7713.600 |
|
|
|
Selling and Distribution Expenses |
678.479 |
791.854 |
|
|
|
|
Non Operating Expenses and loss |
17.649 |
24.390 |
|
|
|
|
Increase/ Decrease in Stock |
[328.525] |
42.315 |
|
|
|
|
TOTAL (B) |
10872.628 |
12071.854 |
7713.600 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2039.308 |
1020.851 |
1195.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
517.131 |
893.632 |
388.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1522.177 |
1527.219 |
806.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
447.491 |
387.107 |
275.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1074.686 |
1140.112 |
531.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
373.611 |
295.480 |
165.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
701.075 |
844.632 |
366.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2382.534 |
2091.079 |
1966.500 |
|
|
Less |
Prior
Years Adjustment for others |
0.857 |
11.384 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
200.000 |
167.800 |
|
|
|
Transfer to Debenture Redemption Reserve |
71.000 |
85.000 |
0.000 |
|
|
|
Dividend |
138.096 |
131.057 |
0.000 |
|
|
|
Proposed Dividend (Final) |
53.704 |
88.434 |
0.000 |
|
|
|
Tax on Dividend |
32.596 |
37.302 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2587.356 |
2382.534 |
2165.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4899.1260 |
5556.930 |
NA |
|
|
TOTAL EARNINGS |
4899.1260 |
5556.930 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1562.970 |
2000.988 |
NA |
|
|
|
Stores & Spares |
5.265 |
5.114 |
NA |
|
|
|
Capital Goods |
123.256 |
58.197 |
NA |
|
|
|
Fuel |
60.776 |
26.938 |
NA |
|
|
TOTAL IMPORTS |
1752.267 |
2091.237 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.14 |
11.46 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
3585.300 |
3259.300 |
3334.300 |
4440.200 |
|
Total Expenditure |
3047.900 |
2849.600 |
2896.700 |
3890.000 |
|
PBIDT (Excl OI) |
537.400 |
409.700 |
437.600 |
550.200 |
|
Other Income |
1.700 |
6.100 |
27.700 |
4.600 |
|
Operating Profit |
539.100 |
415.800 |
465.300 |
554.800 |
|
Interest |
135.200 |
132.500 |
154.200 |
137.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
403.900 |
283.300 |
311.100 |
417.100 |
|
Depreciation |
116.100 |
118.600 |
121.700 |
123.000 |
|
Profit Before Tax |
287.800 |
164.700 |
189.400 |
294.100 |
|
Tax |
87.500 |
52.000 |
57.500 |
71.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
200.300 |
112.700 |
131.900 |
222.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
200.300 |
112.700 |
131.900 |
222.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.43
|
5.83 |
4.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.33
|
7.88 |
6.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.47
|
11.21 |
6.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.33 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.78
|
1.92 |
2.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.75
|
3.78 |
2.86 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS :
(Rs.
In millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors |
1469.800 |
722.965 |
NA |
|
|
|
|
|
HISTORY
Incorporated in Sep.'84, Subject (formerly Aarti Organics) was
promoted by Chandrakant V Gogri and Associates. The flagship of the Alchemie
group, it was the first to go public in Feb.'92.
Subject manufactures intermediate Chemicals such as Para Nitro Chloro Benzene
(PNCB) and Ortho Nitro Chloro Benzene (ONCB). It's subsidiaries are Alchemie
Drugs and Aarti Corporate Services Limited Salvigor Laboratories, a group
company manufacturing dimethyl sulphate sulphuric acid and allied products, was
merged with the company in Oct.'94.
The company commenced operations at Sarigam in 1986. During 1990, it first
expanded the capacity of PNCB/ONCB (organics division) from 1200 tpa to 4500
tpa. Its maiden public issue financed manufacturing facilities for high
value-added downstream products based on PNCB/ONCB. During 1994-95, it further
expanded its organics division in four phases. A recognised Export House, the
company offers a wide range of value-added intermediate products to its
international customers.
During 1998-99, the company has enhanced its installed capacity of PNCB/ONCB
from 15000 tpa to 22000 tpa which further increased its capacities to 30000 tpa
in the year 1999-2000.
The Company has commissioned manufacturing operations at its new unit at
Bharuch. In this project the Nitration plants along with Distillation and
Crystallisation sections have been commissioned. The reduction plant utilising
advance technology has been commissioned in April, 2001.
The Company has set up two R and D Centres - one at Turbhe and the other at
Vapi,
The Mumbai High Court has approved the amalgamation of Alchemic Organics (AOL)
with the company. The board fixed an exchange ratio of 1 equity share of subject
for every 4 equity share of AOL. Accordingly AOL was amalgamated with Aarti
Industries during 2002. The expansion of GIDC Jhagadia for manufacturing Nitro
Chlro Benzenes is nearing completion. The company is also having plans to set
up Power Generation Plant at Vapi and also proposes to enter into the field of
manufacturing SSP which is a widely used fertilizer. The estimated cost of the
above said project is pegged to be around Rs.250 millions.
Sarigam and Vapi units have been awarded ISO 9002 Certification
during the year 2002-03.
Vapi Plant has started the commercial production of Single
Super Phosphate(SSP) in 2003.
The company has decided to amalgamate its subsidiaries Aarti Healthcare Limited
(AHL) and Avinash Drugs Limited with the company in December 2004. According to
the scheme of amalgamation, i) In case of AHL, One Equity share of Rs.10/- each
will be issued as fully paid up at par of the company for every Two Equity
shares of Rs.10/- each fully paid up held in AHL ii) In case of Avinash Drugs
Limited, One Equity share of Rs.10/- each will be issued as fully paid up at
par of the company for every Fifteen Equity shares of Rs.100/- each fully paid
up held in Avinash Drugs. Further, no equity shares will be issued for equity
shares held by subject in AHL and Avinash Drugs as the same will be cancelled.
OPERATIONS
During the year, the Company had made Total Sales Income of Rs.
13377.500 Millions as against Rs. 15357.500 Millions, due to reduction in the
average input costs in FY 09-10. While maintaining the growth omentum in quantity terms, the Company has
made the Operating Profit Before Interest, Depreciation and Tax and Non-
perating expenses of over Rs. 2000.000 Millions for the second consecutive year
i.e. Rs. 2056.900 Millions as compared to Rs. 2445.200 Millions for the
previous year. Likewise the Profit Before Tax had again been over Rs. 1000.000
Millions i.e. Rs. 1074.700 Millions as compared to Rs. 1140.100 Millions for
the previous year. The Company posted Profit After Tax and Deferred Tax of Rs.
701.100 Millions as against Rs. 844.700 Millions for the previous year.
Similarly, the Company’s consolidated Gross Income was at Rs. 13495.900
Millions as compared to Rs. 15500.200 Millions for the year 2008-09. The
Consolidated Profit After Tax and Deferred Tax was at Rs. 684.900 Millions as
against Rs. 870.700 Millions for the previous year. Consolidated EPS for the
year 2009-10 was at Rs. 10.73 ps. as against Rs. 12.84 ps. for the year
2008-09. Further the share of profit from associates increased from Rs. 130.900
Millions to Rs. 139.700 Millions in FY 2009-10.
EXPORTS
Due to the reduction in the input costs, the Exports for the Company had
been Rs. 5221.700 Millions as against Rs. 5884.400 Millions in the previous
year. The Company expects to increase the exports by introduction of newer
products and volume growth in the existing products range
CHEMICAL INDUSTRY - STRUCTURE AND DEVELOPMENT
The Chemical Industry in last one year has gone through the stages of
recovery and revival. While FMCG, and Pharma based products had a very marginal
or no impact of recession, the textiles and dyes, pigments and polymers
industries were the most affected by the slowdown. With the recovery in the
global markets, the demand for the products with applications into Textiles,
Automotives, Pigments, Paints, etc. is expected to grow significantly.
OPPORTUNITIES, THREAT AND OUTLOOK
Over the last one year, the global economy has changed significantly.
Number of global majors have faced financials problems. This in fact, has
helped Asian companies to capture the demand gaps and increase their volumes in
these segments. Further, with the companies now stabilizing and increasing
their inventory norms from bare minimum to optimum levels, prospects of better
monsoon resulting in growth in agrochemicals products and increase in the
volumes in end user segments of Polymers, Pigments, Textiles, etc., shall
provide good growth opportunities to the Company.
While the impact of global recession was comparatively lower in the
Indian markets, the currency remained vulnerable to the changes in the global
markets. The Company has been closely monitoring these movements and has taken
appropriate actions, from time to time, to hedge its currency risks.
During the year, The Company has successfully commissioned and
commercialized the indigenously developed facilities for manufacturing Nitro
Toluenes and its various Derivatives developed at its In-house RandD centre. This
has added a new stream of Basic and Speciality Products expanding Company’s
products range. The Toluene based chemicals will have applications into
end-user industries such as Dyes, Pigments, Speciality Chemicals,
Agrochemicals, etc., Further, more products are under development and will be
commercialized in due course. While some of the products would serve as import
substitutes, some have a good potential in International markets. The Company
would be pioneer to manufacture some of these products in
The Company is also in the process of commissioning its upgraded
Hydrogenation Technology facilities, which would be put to commercial use from
2nd quarter of 2010-2011. The upgraded technology would significantly increase
the production capability of existing range of products and would also
facilitate introduction of several new Specialty Chemicals.
With the merger of erstwhile Surfactant Specialities Limited into Aarti
Industries Limited last year, the Company has added a stream of Surfactants, Personal
Care and Oral care products sourced by the major FMCG companies in
The Company has posted a growth of around 17% in its Pharmaceuticals
Segment. During the year, the Company has also got approval from US Food and
Drug Administration for its units at Tarapur and Vapi for new range of API
products. The Company expect to increase its volumes to the Regulated markets
such as North American and Europe markets and hence expects to break even in
current financial year.
Fixed Assets:
· Land
· Building
· Plant and Machinery
· Furniture and Fixture
· Office Equipment
·
Vehicles
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011
|
Particulars |
31.03.2011 Audited |
31.03.2011 Audited |
|
|
|
|
|
Operating Income |
4590.000 |
15132.700 |
|
Gross sales / Income from Operations |
221.100 |
764.500 |
|
Less: Excise Duty / Sale Tax recovered |
4368.900 |
14368.200 |
|
a) Net Sales / Income from Operations |
71.300 |
250.800 |
|
b) Other Operating Income |
-- |
-- |
|
Total Operating Income |
4440.200 |
14619.000 |
|
|
|
|
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(73.300) |
(163.300) |
|
(b) Consumption of Raw Materials |
2099.900 |
7015.000 |
|
(c) Employees Cost |
651.400 |
1821.300 |
|
(d) Depreciation |
115.000 |
388.700 |
|
(e) Other Expenditure |
123.000 |
479.200 |
|
(f) Purchase of Traded Goods |
1097.000 |
3622.400 |
|
Total Expenditure |
4013.000 |
13163.300 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
427.200 |
1455.700 |
|
Other Income |
4.600 |
40.000 |
|
Profit/(Loss) before Interest and Exceptional items |
431.800 |
1495.700 |
|
Interest |
137.700 |
559.600 |
|
Profit / (Loss) after interest before Exceptional items |
294.100 |
667.800 |
|
Deferred Interest |
-- |
936.100 |
|
Net Profit/(Loss) after exceptional item |
222.800 |
667.800 |
|
Tax Expenses |
-- |
-- |
|
Net Profit/(Loss) after tax |
222.800 |
|
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
3836 |
3836 |
|
Basic and Diluted EPS (Rs.) |
2.90 |
8.70 |
|
Public Share
Holding |
|
|
|
Number of Shares |
38417010 |
38417010 |
|
Percentage of Shareholding |
50.07 |
50.07 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
38303063 |
38303063 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
49.93 |
49.93 |
Note :
1. The above results for the quarter year ended 3st March 2011 have been reviewed by the Audit Committee and Approved by the Board of Directors in their meeting held 30th May, 2011
2. The Board of Directors have recommended a Final Dividend of Rs. 1.25 Ps. (25%) per equity share for the financial year ended 31.03.2011, In addition to Interim Dividend of Rs. 1.25 Ps. Already paid, thereby making a total Dividend of Rs. 2.50 P.s for the year.
3. Details of Investors complaints received for the quarter ended 31st March 2011
4. Figures for the previous period have been regrouped or rearranged wherever necessary
SEGMENTWISE REVENUE AND RESULTS UNDER CLAUSE
41 OF LISTING AGREEMENT
|
Particulars |
|
3 months ended
31.03.2011 Audited |
12 months ended
31.03.2011 Audited |
|
Segment Revenue |
|
|
|
|
Basic Chemicals |
|
958.400 |
3134.900 |
|
Specialty Chemicals |
|
3415.600 |
11194.600 |
|
Agro Chemicals |
|
152.300 |
616.500 |
|
Pharmaceuticals |
|
434.700 |
1417.400 |
|
Total |
|
4961.000 |
16363.400 |
|
|
|
|
|
|
Less : Inter Segment Revenue |
|
299.700 |
979.900 |
|
Segment Results |
|
|
|
|
Before Tax and Interest From each Segment |
|
|
|
|
Basic chemicals |
|
171.600 |
512.600 |
|
Specialty Chemicals |
|
315.000 |
1256.900 |
|
Agro Chemicals |
|
28.600 |
129.000 |
|
Pharmaceuticals |
|
0.400 |
(63.100) |
|
Total |
|
515.600 |
1835.400 |
|
|
|
|
|
|
Less : Interest |
|
137.700 |
559.600 |
|
Other Unallocable Expenditure |
|
83.800 |
339.700 |
|
Net Off Unallocable Income |
|
|
|
|
|
|
|
|
|
Total Profit Before Tax |
|
294.100 |
936.100 |
STATEMENT OF
ASSETS AND LIABILITES
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
383.600 |
|
|
2] Equity Share Warrants |
|
|
34.800 |
|
|
3] Reserves and Surplus |
|
|
4046.700 |
|
|
4] Minority Interest |
|
|
0.000 |
|
|
|
|
|
4465.100 |
|
|
Loan Funds |
|
|
|
|
|
Secured Loans |
|
|
4537.500 |
|
|
Unsecured Loans |
|
|
725.300 |
|
|
|
|
|
5262.900 |
|
|
Deferred tax Liability |
|
|
529.400 |
|
|
TOTAL |
|
|
10257.400 |
|
|
|
|
|
|
|
|
NET FIXED ASSETS (including Capital work in
properties and capital) |
|
|
3919.800 |
|
|
Capital WIP |
|
|
184.500 |
|
|
Investments |
|
|
187.600 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
2940.900 |
|
|
Sundry Debtors |
|
|
3325.300 |
|
|
Cash & Bank Balances |
|
|
77.700 |
|
|
Other Current Assets |
|
|
2106.300 |
|
|
Loans & Advances |
|
|
474.900 |
|
Total
Current Assets |
|
|
8925.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Other Current Liabilities |
|
|
1386.600 |
|
|
Provisions |
|
|
1573.100 |
|
Total
Current Liabilities |
|
|
2959.700 |
|
|
Net Current Assets |
|
|
5965.500 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
10257.400 |
|
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 44.49 |
|
|
1 |
Rs. 71.24 |
|
Euro |
1 |
Rs. 64.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.