MIRA
INFORM REPORT
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Report Date : |
14.07.2011 |
IDENTIFICATION DETAILS
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Name : |
MONSANTO INDIA LIMITED (w.e.f 12.04.2000) |
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Formerly Known As : |
MONSANTO CHEMICALS OF INDIA LIMITED |
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Registered Office : |
Ahura Centre, 5th Floor, 96, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of Incorporation : |
08.12.1949 |
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Com. Reg. No.: |
11-007912 |
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Paid-up Capital
: |
Rs. 86.312 Millions |
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CIN No.: [Company Identification
No.] |
L74999MH1949PLC007912 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
MUMM19093E |
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PAN No.: [Permanent Account No.] |
AAACM2875L |
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Legal Form : |
A Public Limited Liability Company. The company shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of agricultural and industrial
chemicals |
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No. of Employees : |
400 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (77) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 14000000 |
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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 subsidiary of Monsanto company (now known as
Pharmacia corporation) of It is a well established and a reputed company having good track. Financial position of the company is sound. Directors are reported to be experienced and respectable businessmen. Company is progressing well. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business
dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
|
Name : |
Mr. Dhaermendra |
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Designation : |
Accounts Manger |
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Contact No.: |
91-22-28246450 |
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Date : |
14.07.2011 |
LOCATIONS
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Registered Office : |
Ahura Centre, 5th Floor, 96, |
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Tel. No.: |
91-22-28246450 /26902100/67029851 |
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Fax No.: |
91-22-26902111 /26902121/67023361/28244707 |
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E-Mail : |
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Website : |
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Factory 1 : |
1, 4 and 5, Madhuban Industrial Estate, Madhuban Dam Road,
Rakholi, Silvassa – 396 240, Union Territory of Dadra and Nagar Haveli, India |
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Factory 2 : |
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Factory 3 : |
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Factory 4: |
Survey No.677-679, Village: Lalgudi Malakpet, Shamirpet,
District: Ranga Reddy– 500 078, |
DIRECTORS
As On 31.03.2010
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Name : |
Ms. Nicole M. Ringenberg |
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Designation : |
Chairperson |
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Name : |
Mr. Felipe Osorio |
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Designation : |
Managing Director |
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Name : |
Mr. R.C. Khanna |
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Designation : |
Director |
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Name : |
Mr. H.C. Asher |
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Designation : |
Director |
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Name : |
Mr. William Mailman |
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Designation : |
Director |
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Name : |
Mr. Mark J. Deadwyler |
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Designation : |
Director |
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Name : |
Mr. Pradeep Poddar |
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Designation : |
Director |
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Name : |
Mr. Bhaskar Chandran |
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Designation : |
Director - Legal Affairs |
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Name : |
Mr. Amitabh Jaipuria |
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Designation : |
Manging Director |
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Name : |
Mr. Bipin Chandra Solanki |
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Designation : |
Director-Industry affairs |
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Name : |
Mr. Ernest Louis |
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Designation : |
Director-HR |
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Name : |
Mr. Sekhar Natarajan |
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Designation : |
Chairman |
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Name : |
Mr. Ravinder K Reddy |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Anupam
Bhattacharya |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Dhaermendra |
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Designation : |
Accounts Manger |
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Name : |
Mr. Girish Tekchandani |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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6,227,022 |
72.15 |
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6,227,022 |
72.15 |
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Total shareholding of Promoter and Promoter Group (A) |
6,227,022 |
72.15 |
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(B) Public Shareholding |
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341,752 |
3.96 |
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4,244 |
0.05 |
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10,141 |
0.12 |
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356,137 |
4.13 |
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532,226 |
6.17 |
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1,039,651 |
12.05 |
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165,610 |
1.92 |
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310,528 |
3.60 |
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11,238 |
0.13 |
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2,554 |
0.03 |
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59,719 |
0.69 |
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690 |
0.01 |
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20,539 |
0.24 |
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215,788 |
2.50 |
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2,048,015 |
23.73 |
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Total Public shareholding (B) |
2,404,152 |
27.85 |
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Total (A)+(B) |
8,631,174 |
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) |
8,631,174 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 million
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of agricultural and industrial
chemicals |
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Products : |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
PRODUCTION STATUS (31.03.2010)
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Particulars |
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Actual Production |
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Agricultural
Chemicals |
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- KL |
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5294 |
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- Seeds (MT) |
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23518 |
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Installed Capacity |
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27,035KL of
Formulation Per annum 30,000 MT of Seeds per annum. (Single Shift Basis) |
GENERAL INFORMATION
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No. of Employees : |
400 (approximately) |
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Bankers : |
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Facilities : |
-- |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Mumbai |
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Holding Company : |
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs.100.000 millions |
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Issued & Subscribed Capital :
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No. of Shares |
Type |
Value |
Amount |
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8631574 |
Equity Shares |
Rs. 10/- each |
Rs. 86.316 millions |
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Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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8631174 |
Equity Shares |
Rs. 10/- each |
Rs. 86.312 millions |
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NOTE:
Of the above
1. 5,303,545
Equity Shares have been allotted as fully paid-up bonus shares, by
capitalization of general reserves
2. 2,313,031 Equity
Shares have been issued pursuant to agreements against the acquisition of
businesses of group companies
3. 6,227,022
Equity Shares are held in the aggregate by Monsanto Company, USA, the holding
company and its subsidiaries, as under:
a) 1,600,960
shares are held by Monsanto Company,
b) 3,667,252
(Previous Year 2,717,252) Equity shares are held by Monsanto Holdings Private
Limited and
c) 958,810
(Previous Year 1,908,810) Equity shares are held by Bretco Holding (
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 |
86.312 |
86.312 |
86.312 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3429.517 |
3067.766 |
2574.752 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3515.829 |
3154.078 |
2661.064 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3515.829 |
3154.078 |
2661.064 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1146.527 |
1133.921 |
1143.140 |
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Capital work-in-progress |
9.518 |
2.310 |
1.135 |
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INVESTMENT |
807.226 |
579.678 |
2551.402 |
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DEFERREX TAX ASSETS |
24.897 |
27.505 |
14.501 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1824.863
|
2131.906 |
1068.912
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Sundry Debtors |
451.116
|
444.347 |
252.483
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Cash & Bank Balances |
316.594
|
107.650 |
253.592
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Other Current Assets |
2.370
|
11.370 |
0.000
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Loans & Advances |
187.640
|
287.470 |
444.696
|
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Total
Current Assets |
2782.583
|
2982.743 |
2019.683 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
335.736 |
423.619 |
207.715
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Other Current Liabilities |
746.536
|
917.956 |
849.006
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Provisions |
172.650
|
230.504 |
2012.076
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Total
Current Liabilities |
1254.922
|
1572.079 |
3068.797
|
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Net Current Assets |
1527.661
|
1410.664 |
(1049.114)
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3515.829 |
3154.078 |
2661.064 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
4101.354 |
3870.036 |
3652.279 |
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Other Income |
125.447 |
151.421 |
637.581 |
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TOTAL (A) |
4226.801 |
4021.457 |
4289.860 |
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Less |
EXPENSES |
|
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|
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Materials and Inputs |
2224.160 |
1311.162 |
1490.948 |
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Operation, Administration and Other Expenses |
1307.331 |
1705.181 |
1417.191 |
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TOTAL (B) |
3531.491 |
3016.343 |
2908.139 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
695.310 |
1005.114 |
1381.721 |
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Less |
FINANCIAL
EXPENSES (D) |
2.878 |
2.355 |
3.498 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
692.432 |
1002.759 |
1378.223 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
114.763 |
133.500 |
127.020 |
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PROFIT BEFORE
TAX (E-F) (G) |
577.669 |
869.259 |
1251.203 |
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Less |
TAX (I) |
39.452 |
133.893 |
249.547 |
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PROFIT AFTER TAX
(G-I) (J) |
538.217 |
735.366 |
1001.656 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
644.001 |
224.524 |
1423.173 |
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Less |
APPROPRIATIONS |
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|
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Interim Dividends |
86.312 |
103.574 |
1657.195 |
|
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Tax on Interim Dividends |
14.669 |
17.602 |
281.639 |
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Proposed Dividend |
64.734 |
103.574 |
129.468 |
|
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|
Tax on Proposed Dividend |
10.751 |
17.602 |
22.003 |
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|
Transfer to General Reserve |
53.822 |
73.537 |
110.000 |
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|
BALANCE CARRIED
TO THE B/S |
951.930 |
644.001 |
224.524 |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
178.276 |
123.777 |
93.344 |
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TOTAL EARNINGS |
178.276 |
123.777 |
93.344 |
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IMPORTS |
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Raw Materials and Finished Goods |
534.035 |
969.911 |
545.398 |
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Capital Goods |
23.184 |
7.634 |
7.476 |
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TOTAL IMPORTS |
557.219 |
977.545 |
552.874 |
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Earnings Per
Share (Rs.) |
62.36 |
85.20 |
116.05 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
2018.000 |
633.600 |
758.500 |
211.100 |
|
Total Expenditure |
1406.500 |
622.900 |
596.100 |
465.300 |
|
PBIDT (Excl OI) |
611.500 |
10.700 |
162.400 |
(254.200) |
|
Other Income |
4.500 |
12.900 |
23.100 |
43.000 |
|
Operating Profit |
616.000 |
23.600 |
185.500 |
(211.200) |
|
Interest |
0.700 |
0.700 |
0.700 |
0.700 |
|
PBDT |
615.300 |
22.900 |
184.800 |
(211.900) |
|
Depreciation |
28.600 |
27.900 |
28.900 |
22.700 |
|
Profit Before Tax |
586.700 |
(5.000) |
155.900 |
(234.600) |
|
Tax |
0.10 |
52.900 |
30.900 |
(8.900) |
|
Profit After Tax |
586.600 |
(57.900) |
125.000 |
(225.700) |
|
Net Profit |
586.600 |
(57.900) |
125.000 |
(225.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
12.73 |
18.29 |
23.35 |
|
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
14.08 |
22.46 |
34.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.70 |
21.12 |
39.56 |
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.28 |
0.47 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.36 |
0.50 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.22 |
1.90 |
0.66 |
LOCAL AGENCY FURTHER INFORMATION
The Details of sundry
creditors:
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Trade |
|
|
|
|
Total outstanding dues to micro enterprises and small enterprises |
0.124 |
9.197 |
6.304 |
|
Total outstanding dues to creditors other than micro and small enterprises |
335.612 |
414.422 |
201.411 |
|
Total |
335.736 |
423.619 |
207.715 |
Company
Background:
Subject was
incorporated on 08.12.1949. The Company is presently engaged in the business of
production and sale of agricultural inputs, namely, chemicals and hybrid seeds.
The Company’s corporate office is located in Mumbai. It has a chemical
production unit at Silvassa, hybrid seeds processing and drying units at
HISTORY:
Subject was incorporated on 08.12.1949 at Mumbai in
Subject formerly known as Monsanto Chemicals of India], a
subsidiary of Monsanto Company,
Subject which commenced business in 1949 has lauched first rice herbicide i.e
Machete in 1975. Lasso, Roundup and Leader are Company's leading brands in Weed
control segment. The company also markets Avadex, a herbicide used on wheat
crops. Subject offered shares to Indian Public in 1989 to reduce foreign equity
holding and to diversify operations.
Monsanto's products are marketed all over the country through an effective
distributor network. It has acquired valuable experience and expertise in
marketing and selling its products in
The parent company has integreated its agriculture business in
Monsanto Technologies India (MTIL) is engaged in the
research, production, processing and marketing of Corn and Sunflower hybrid
seeds. With the integration MTIL is now the 100% subsidiary of the company.
Monsanto
As a consideration of all the three strategic acquisitions, in April 2000, the
company issued 23,13,031 equity shares at price of Rs 1480 per equity shares. During
the year 2000-01, the company installed new capacity of 30000 MT of
seeds.
Subject corn drying facility located at Eluru in Andhra Pradesh is continuously
being expanded to meet the increasing demand.
FINANCIAL HIGHLIGHTS:
During the year, the
net sales of the Company increased by 6% to Rs.4101.000 Millions in financial
year 2009-10 from Rs.3870.00 Millions in the financial year 2008-09. Profit
before tax decreased by 33.5% to Rs.578.000 Millions in the financial year
2009-10 from Rs.869.000 Millions in the financial year 2008-09. Profit after
tax decreased by 26.8% to Rs.538.000 Millions in the financial year 2009-10
from Rs.735.000 Millions in the financial year 2008-09.
Profitability was
impacted mainly due to the global mismatch between supply and demand of
glyphosate herbicides, this impacted there flagship brand Roundup adversely.
This negative impact was made up in part by the strength of there Dekalb maize
franchise and also by focused cost side actions.
OPERATIONAL
HIGHLIGHTS:
During the year,
the Company’s seeds sales increased from Rs.2287.000 Millions in financial year
2008-09 to Rs.2722.000 Millions in financial year 2009-10 marking an increase
of 19.0%. The business also saw strong volume growth. The Company’s seed
business marked better margin realization during the year through a combination
of high quality products, better mix and cost management. The increase in the
sales is being well supported by appropriate investments in Production, Quality
and Breeding to sustain the growth.
The global
situation in glyphosate deteriorated during the year with supply far exceeding
demand and with the consequent impact on prices and realizations. The
oversupply also meant that competition heated up with many players resorting to
sales based on marginal costing, thus dragging the market down even more. The
global prices of glyphosate products were down by more than 30% during the
year.
Despite intense
competition in the glyphosate herbicides market, sales of there market leading
Roundup brand increased in volume terms. This is an encouraging sign and
underlines the strength of the brand. The year also saw the completion of the
restructuring exercise that they had undertaken over the past three years, with
the completion of there post sale service agreements with the buyers of there
Butachlor and Alachlor businesses. With this now, they are 100% focused on
there maize and glyphosate businesses.
During the year
the management took many proactive steps to ensure that costs were kept under a
tight leash. This focus led to a large savings in manpower and administrative
costs.
Management
Discussion and Analysis:
Introduction:
In the 70s,
Growing population
and changing food patterns due to increased prosperity as well as the changing
environment, is now putting pressure on there agriculture - again. The growth
in agricultural productivity has slowed - particularly in the regions which had
contributed significantly to the success of the first green revolution and they
now need another Green Revolution, like the earlier one, based on the latest
agricultural technology available today - Biotechnology, Molecular Breeding and
agronomic extension services.
The Impact of
Biotechnology
The advances in
biotechnology and their integration with plant breeding are likely to be an
integral part of the impending second green revolution in Indian Agriculture.
These technologies
are already making a huge impact on global agriculture and are helping improve
productivity in many countries in crops such as maize, cotton, soybeans,
canola, sugarcane among others. Many institutions in
Over the past two decades,
the advances made in agricultural biotechnology have opened up new frontiers in
agricultural production. The new techniques for understanding and modifying the
genome of living organisms have led to large investments in agri-biotechnology
research and development. Most of this development has taken place in North
America, Western Europe and East Asia, with the
Challenges for
Indian Agriculture
By 2050, the
population of the world is likely to reach 9 billion and the population of
To provide feed,
fuel and clothes to there growing population, farm production must increase on
a continuous basis through improvements in farm productivity. The genetic
capability of the seed must also improve as a result.
Overview of the
Agriculture Sector in
The 11th Five-Year
Plan recognizes these facts and the Government productivity and inclusive GDP
growth. At the current pace of growth, meeting the future food grain, fibre and
feed demand would be an uphill task.
Seeds and
herbicides are important input components for productive agriculture. In the
significant advances that
Availability of
farm labor has reduced due to progressive policies of the Govt. and its social
schemes such as the NREGA, consequently farm labor has also become more
expensive. Expensive labor in turn means that practices such as manual weeding
become difficult.
Across
The Indian
agricultural sector is changing and catching up with the rest of the world.
There is an increasing realization that it needs to - and indeed can, change
much faster. The Government, Public and Private sector share the responsibility
to make this happen.
Industry Structure
– Seeds
Seed is the most
important input component for productive agriculture. Although the Indian seed
market is one of the largest, it is almost exclusively supplied by locally
produced and farmer saved seeds. Farmers retain seeds of major food crops and
commercial crops for many years and the largest volume of seed trade involves
local exchanges of established self-pollinating varieties. The Seed Replacement
Rate in most crops is very low, with the exception of cotton and some
vegetables. The use of hybrid seeds is mostly confined to cotton and to some
extent to maize, millets, sunflower and a few vegetables.
However, awareness
about the high yield and quality of produce from hybrid seeds, is beginning to
attract farmers to switch over to hybrids in many important crops. Many
institutions are also doing extensive research in hybrid varieties. The total
seed market in
Following the
easing of government regulations and the implementation of a new seed policy in
1988, the private sector seed companies have started playing a major role in
seed development and marketing. The Government’s consideration to embrace
biotechnology as a means of achieving food security has attracted several
leading biotechnology-focused global seed companies to
This market will
grow strongly on the back of increased hybridization in key crops, increased
farmer realization of the benefits of new seeds every year and due to newer
technologies being made available. One other factor that will contribute
strongly to its growth is
Industry Structure – Herbicides
The chemical
industry is one of the oldest industries in
Agrochemicals have
become an integral part of the development process of agriculture and the use
is expected to increase manifold in
There are three
growth drivers in this business. First, the rise in farm labor costs and the
continuous decrease in the availability of farm labor. Secondly, the increasing
practice of conservation tillage, wherein crops are grown with minimal
cultivation of the soil. Crops grown without tillage use water more
efficiently, the waterholding capacity of the soil increases and water losses
from runoff and evaporation are reduced. In addition, soil organic matter and
populations of beneficial insects are maintained, soil nutrients are less
likely to be lost from the field and less time and labor is required to prepare
the field for planting. The third growth factor is the increasing use of
herbicide tolerant crops across the world and the resultant use of herbicides
for ‘over the top’ application.
In
In
Operational Review
Dekalb hybrid
maize seeds
The demand for
maize grain in
The maize seeds
are sold under the Dekalb brand name - and are well established within
the farming community.
During the year,
the Company’s seeds sales increased significantly recording strong high-teens
percentage growth. The Company’s seed business also improved during the year
through a combination of high quality new products and a better mix. At the
same time costs of manufacture and sales were kept strictly under control.
The focus through
the year has been on developing the market and educating the farmer on the
benefits of there superior products. They probably have one of the largest
direct contact programs in the country today.
The increase in
the sales is being well supported by appropriate investments in Production,
Quality and Breeding to sustain the growth.
Roundup product
portfolio
The Company’s
glyphosate based herbicide is sold under the popular brand name Roundup. The
Company also sells glyphosate in bulk to corporate customers. Glyphosate is the
largest selling herbicide globally and Roundup is the market leader
globally.
Despite intense
competition in the herbicides business, the sales of the brand Roundup increased
in volume terms. This is a huge achievement and one which underlines the core
brand strength. The prices of herbicides products were under severe pressure
globally throughout the year, impacting the realization of there brand Roundup
as well.
To cope with the
downturn in the global business scenario in glyphosate and considering the weak
potential for a quick turnaround in this situation, the Company increased its
focus on costs – both fixed as well as variable. These actions should result in
a lower cost to make, sell and deliver there products and will enable us to
compete more effectively in the market.
Financial Overview
During the year,
the net sales of the Company increased by 6% to Rs. 4101.000 millions from Rs.
3870.000 millions in 2008-09.
Profit before tax
decreased by 33.5% to Rs. 578.000 millions in 2009-10 from Rs. 869.000 millions
in 2008-09.
Profit after tax
decreased by 26.8% to Rs. 538.000 millions in 2009-10 from Rs. 735.000 millions
in 2008-09.
These results have
been delivered despite the intense price pressure on Roundup glyphosate
herbicides and despite lower investment income during the year as well as
income related to the divested businesses. The core businesses saw volume
growth and strong cost management.
Overheads and
people related costs were also managed well during the year, with declines in
staff costs.
Outlook
The Company
remains focused on its key objectives of profitable and sustainable growth,
maximizing operational efficiencies and striving to attain the highest
standards of quality, safety and productivity.
Through -
continuous breeding research efforts, new product offerings, aggressive sales
and marketing strategies, a strong brand, far-reaching distribution
infrastructure and investments in people development, the Company is hopeful of
maintaining its performance going forward. Efforts at offering better
technologies, that provide better value to the farmer, while mitigating
external risks, have been generally well received both by the Government and
the farmer. Continued success in these efforts is critical to maintain these
growth prospects.
The overall
outlook for the growth of the maize seeds business continues to be positive and
the management remains optimistic with regards to continued growth. Competition
from generic players in the herbicide business continues to exert pressure on
the margins of there glyphosate product - Roundup.
Contingent Liabilities in respect of the following
matters:
Rs. In Millions
|
|
31.03.2010 |
31.03.2009 |
|
i) Income-tax |
216.527 |
36.457 |
|
ii) Central
excise |
-- |
1.912 |
|
iii) Sales tax |
145.794 |
272.209 |
|
iv) Claims
against the Company not acknowledged as
debts |
5.977 |
14.386 |
Note: In respect
of items mentioned above, till matters are finally decided, the financial
effect cannot be ascertained.
FIXED ASSETS:
· Intellectual Property
· Software
· Freehold land
· Buildings
· Leasehold improvements
· Plant and machinery
· Furniture, fixtures and office equipment
· Vehicles
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. 44.59 |
|
|
1 |
Rs. 71.07 |
|
Euro |
1 |
Rs. 62.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
77 |
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.