1.Summary Information
|
|
|
Country |
|
|
Company Name |
COROMANDEL INTERNATIONAL LIMITED |
Principal Name 1 |
Mr. A Vellayan |
|
Status |
Very Good |
Principal Name 2 |
Mrs. Ranjana Kumar |
|
|
|
Registration # |
01-00892 |
|
Street Address |
1-2-10, |
||
|
Established Date |
16.10.1961 |
SIC Code |
-- |
|
Telephone# |
91-40-27842034/ 27847212 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-40-27844117 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Complex fertilizers
20:20:0 |
|
|
# of employees |
2000 |
Product Name 2 |
Complex
fertilizers-14:35:14 |
|
Paid up capital |
Rs.350,000,000/- |
Product Name 3 |
Complex
fertilizers-14:35:14 |
|
Shareholders |
Shareholding
of Promoter and Promoter Group 64.12%, Public shareholding 35.88% |
Banking |
State Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
49 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Aa (76) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary
|
-- |
Parry Chemicals Limited (PCL) |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
24,358,161,000 |
Current Liabilities |
8,579,612,000 |
|
Inventories |
9,264,227,000 |
Long-term Liabilities |
19,177,939,000 |
|
Fixed Assets |
8,040,391,000 |
Other Liabilities |
1,798,563,000 |
|
Deferred Assets |
0000 |
Total Liabilities |
29,556,114,000 |
|
Invest& other Assets |
2,243,216,000 |
Retained Earnings |
14,069,335,000 |
|
|
|
Net Worth |
14,349,881,000 |
|
Total Assets |
43,905,995,000 |
Total Liab. & Equity |
43,905,995,000 |
|
Total Assets (Previous Year) |
46,815,326,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
28,305,260,000 |
Net Profit |
4,681,989,000 |
|
Sales(Previous yr) |
21,552,878,000 |
Net Profit(Prev.yr) |
4,963,780,000 |
MIRA
INFORM REPORT
|
Report Date : |
04.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
COROMANDEL INTERNATIONAL LIMITED (w.e.f. 12.10.2009) |
|
|
|
|
Formerly Known As : |
COROMANDEL FERTILISERS LIMITED |
|
|
|
|
Registered
Office : |
1-2-10, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
16.10.1961 |
|
|
|
|
Com. Reg. No.: |
01-00892 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24120AP1961PLC000892 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDC00011E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACC785ZK |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 60000000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial appear to
be sound. Fundamentals are strong and healthy. Trade relations are reported
as fair. Business is active. Payments are reported to be regular. 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 |
|
|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
1-2-10, |
|
Tel. No.: |
91-40-27842034 / 27847212 |
|
Fax No.: |
91-40-27844117 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Fertiliser Plants :
v Sriharipuram, Po Box No.
1116, Malkapuram Post, 530
011. Phone: 91-891-2578400 to 2578419 Fax: 91-891-2577665 Email:Seetaramn@cfl.murugappa.com
v
Fertilisers / Pesticides Factory Ranipet - 632
401. Phone: 91-4172-272326 Fax : 91-4172-272264
v Compound Fertilisers Factory Ennore, Chennai - 600 507. Tamilnadu, Satyanarayana Rao - General Works Manager Email:Satyanarayanarao@cfl.murugappa.com Pesticide Plant :
v
Plot
No. 22/1, TTC Industrial Area, Thane Balapur Road, Ghanasoli P.O., Navi
Mumbai - 400 701, Maharashtra, India. CROP PROTECTION PLANTS AT:
|
|
|
|
|
Marketing branches
servicing the farming community across |
|
DIRECTORS
As on 31.03.2010
|
Name: |
Mr. A Vellayan |
|
Designation: |
Chairman |
|
|
|
|
Name : |
Mr. V. Ravichandran |
|
Designation : |
Managing Director |
|
|
|
|
Name: |
Mr. K. Balasubramanian |
|
Designation: |
Director |
|
|
|
|
Name: |
Mr. B V R Mohan Reddy |
|
Designation: |
Director |
|
|
|
|
Name: |
Mr. R A Savoor |
|
Designation: |
Director |
|
|
|
|
Name : |
Mr. M. K. Tandon |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. E. Udwadia |
|
Designation : |
Director (Upto 21.07.2009) |
|
|
|
|
Name : |
Mr. M M.
Venkatachalam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Ranjana Kumar |
|
Designation : |
Director (from
19.03.2010) |
KEY EXECUTIVES
|
Name |
Mr. M. R. Rajaram |
|
Designation |
Company Secretary |
|
|
|
|
Name |
Mr. P. Nagarajan |
|
Designation |
Chief Financial Officer |
|
|
|
|
Name |
Mr. G. Ravi Prasad |
|
Designation |
Sr. Vice President – Sales ans Marketing (Fertilisers) |
|
|
|
|
Name |
Mr. P. Gopalkrishna |
|
Designation |
Sr. Vice President – Retail |
|
|
|
|
Name |
Mr. Harish Malhotra |
|
Designation |
Sr. Vice President – Commercial |
|
|
|
|
Name: |
Mr. G Veera
Bhadram |
|
Designation: |
Sr. Vice President – Pesticides SBU |
|
|
|
|
Name |
Mr. S Govindarajan |
|
Designation |
Sr. Vice President and Head of Manufacturing |
|
|
|
|
Name: |
Mr. Arun leslie
George |
|
Designation: |
Sr. Vice President and Head of HR |
|
|
|
|
Name: |
Mr. S
Govindarajan |
|
Designation: |
General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3,400,564 |
1.21 |
|
|
177,161,160 |
62.90 |
|
|
25,140 |
0.01 |
|
|
25,140 |
0.01 |
|
|
180,586,864 |
64.12 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
180,586,864 |
64.12 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16,903,139 |
6.00 |
|
|
131,682 |
0.05 |
|
|
7,974,358 |
2.83 |
|
|
14,867,042 |
5.28 |
|
|
1,840 |
- |
|
|
1,840 |
- |
|
|
39,878,061 |
14.16 |
|
|
|
|
|
|
6,457,939 |
2.29 |
|
|
|
|
|
|
28,737,821 |
10.20 |
|
|
13,294,770 |
4.72 |
|
|
12,703,671 |
4.51 |
|
|
95,810 |
0.03 |
|
|
500 |
- |
|
|
9,939,060 |
3.53 |
|
|
43,980 |
0.02 |
|
|
2,608,768 |
0.93 |
|
|
15,553 |
0.01 |
|
|
61,194,201 |
21.73 |
|
Total Public shareholding (B) |
101,072,262 |
35.88 |
|
Total (A)+(B) |
281,659,126 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Any OtherBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates |
||||||||||||||||||||||||||
|
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|
||||||||||||||||||||||||||
|
Products : |
|
||||||||||||||||||||||||||
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity* |
Actual Production |
|
(i)
Fertilisers |
|
|
|
|
|
Ammonium Phosphatic Fertilisers |
MT |
2,310,000 |
1815000 |
2011217 |
|
Di-Ammonium Phosphate (DAP) |
MT |
815000 |
815000 |
**514564 |
|
Single Super Phosphate |
MT |
132000 |
132000 |
100102 |
|
In terms of plant nutrients N (Nitrogen) |
MT |
572600 |
507900 |
442422 |
|
P2O5 (Phosphorus
Pentoxide) |
MT |
1035770 |
859520 |
795042 |
|
|
|
|
|
|
|
(ii) Plant Protection Products*** |
|
|
|
|
|
Technicals |
MT |
NA |
13916 |
4625 |
|
Formulations
- Liquids (in KL) |
MT |
NA |
10900 |
5695 |
|
Formulations –
Others |
MT |
NA |
5600 |
5011 |
NOTE:
* Installed capacities are as certified by the management
and not verified by the auditors, being a technical matter.
** Includes 2,150 MTs (2009: 2,046 MTs) of Di-Ammonium Phosphate
(DAP) converted subsequently in to Ammonium Phosphatic Fertilisers.
*** Plant Protection Products are not covered by the list of
industries in respect of which industrial licensing is compulsory.
GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||
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|
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|
Bankers : |
·
State Bank of · State Bank of Travancore · Standard Chartered Grindlays Bank · Citibank N.A. · IDBI Bank Limited · HDFC Bank Limited · ICICI Bank Limited · Andhra Bank · HSBC Bank · Hongkong and Shanghai Banking Corporation Limited |
||||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1: |
Price Waterhouse Chartered Accountants |
|
Address : |
8-2-293/82/A/1131A Road No.36, Junilee
Hills, |
|
|
|
|
Cost Auditors : |
|
|
Name 2 : |
Mr. V Kalyanaraman Chartered Accountant |
|
|
|
|
Name 3 : |
Mr. Dantu Mitra Chartered Accountant |
|
|
|
|
Associates : |
·
Prathyusha Chemicals and Fertilisers
Limited (PCFL) |
|
|
|
|
Subsidiaries : |
·
Parry Chemicals Limited (PCL) ·
CFL Mauritius Limited (CML) ·
Coromandel Brasil Limitada (CBL) |
|
|
|
|
Fellow Subsidiary Company : |
·
Parry Investments Limited ·
Parry Infrastructure Company Private
Limited (PICPL) ·
Sadashiva Sugars Limited (SSL) |
|
|
|
|
Joint Venture : |
·
Coromandel Getax Phosphates Pte
Limited (CGPL) Joint Venture ·
Coromandel SQM India Private Limited
(CSQM) Joint Venture ·
Tunisian Indian Fertilisers. SA
(TIFERT) |
|
|
|
|
Holding Company : |
·
E.I.D. Parry ( |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Shares |
Rs.2/- each |
Rs.350.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
140273244 |
Equity Shares |
Rs.2/- each |
Rs.280.546 Millions |
Notes:-
(A) Of the above, since inception:
(i) 5,806,100 Equity Shares of Rs.2/- each fully paid-up have
been allotted pursuant to contracts without payments being received in cash.
(ii) 69,278,790 Equity Shares of Rs.2/- each fully paid-up
have been issued as Bonus Shares by capitalisation of a part of General
Reserve.
(iii) 4,409,440 Equity Shares of Rs.2/- each fully paid-up
have been issued at a premium of Rs.2/- per share to the Debenture Holders and
Public Financial Institutions pursuant to the right exercised by them for
converting a part of their Debentures/Loan amounts into fully paid-up Equity Shares.
(B) 4,864,000 Equity Shares of Rs.10/- each fully paid-up
have been bought back at a price of Rs.65/- per share from the shareholders
pursuant to the offer for buy back of equity shares made during the year ended
March 31, 2000.
(C) 29,749,505 Equity Shares of Rs.2/- each fully paid-up
have been allotted to the shareholders of E.I.D. Parry (India) Limited in the
ratio of one share of the Company for every three shares of E.I.D. Parry
(India) Limited, pursuant to the scheme of arrangement (demerger) between
E.I.D. Parry (
(D) 831,981 Equity Shares of Rs.2/- each fully paid up have
been allotted to the shareholders of Ficom Organics Limited in the ratio of 3
shares of the Company for every 11 shares of Ficom Organics Limited pursuant to
the Scheme of Amalgamation between Ficom Organics Limited and Rasilah
Investments Limited and the Company.
(E) 12,037,182 Equity Shares of Rs.2/- each fully paid up
have been allotted to the shareholders of Godavari Fertilisers and Chemicals
Limited in the ratio of 3 shares of the Company for every 2 shares of Godavari
Fertilisers and Chemicals Limited pursuant to the Scheme of Amalgamation
between Godavari Fertilisers and Chemicals Limited and the Company.
(F) Of the total Equity Share Capital as at March 31, 2010,
E.I.D. Parry (
(G) 376,296 (2009: Nil) Equity Shares of Rs.2 each have been
allotted pursuant to exercise of stock options under 'ESOP 2007' scheme during
the year.
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 |
280.546 |
279.794 |
279.794 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
14069.335 |
10991.611 |
7664.556 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
14349.881 |
11271.405 |
7944.350 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4655.985 |
2970.528 |
5122.665 |
|
|
2] Unsecured Loans |
14521.954 |
14228.471 |
4897.087 |
|
|
TOTAL BORROWING |
19177.939 |
17198.999 |
10019.752 |
|
|
DEFERRED TAX LIABILITIES |
854.671 |
794.671 |
824.671 |
|
|
|
|
|
|
|
|
TOTAL |
34382.491 |
29265.075 |
18788.773 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8040.391 |
7640.342 |
8145.480 |
|
|
Capital work-in-progress |
132.755 |
278.018 |
108.410 |
|
|
|
|
|
|
|
|
INVESTMENT |
2110.461 |
1633.104 |
3513.371 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
9264.227
|
13475.105
|
8648.683
|
|
|
Sundry Debtors |
1427.130
|
1043.330
|
125.895
|
|
|
Cash & Bank Balances |
8098.586
|
3414.928
|
663.164
|
|
|
Other Current Assets |
8599.573
|
8802.885
|
0.000
|
|
|
Loans & Advances |
6232.872
|
10527.614
|
5939.949
|
|
Total
Current Assets |
33622.388
|
37263.862 |
15377.691 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
7112.428
|
12742.620
|
|
|
|
Other Current Liabilities |
1467.184
|
3588.047
|
|
|
|
Provisions |
943.892
|
1219.584
|
1036.591
|
|
Total
Current Liabilities |
9523.504
|
17550.251
|
8356.179
|
|
|
Net Current Assets |
24098.884
|
19713.611
|
7021.512
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34382.491 |
29265.075 |
18788.773 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
28305.260 |
21552.878 |
21684.535 |
|
|
|
Government Subsidies |
35642.043 |
72196.927 |
15888.869 |
|
|
|
Income from Business Assistance Agreement |
0.000 |
1585.941 |
0.000 |
|
|
|
Other Income |
1321.154 |
1342.308 |
427.703 |
|
|
|
TOTAL (A) |
65268.457 |
96678.054 |
38001.107 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
56838.039 |
87187.726 |
33447.363 |
|
|
|
TOTAL (B) |
56838.039 |
87187.726 |
33447.363 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8430.418 |
9490.328 |
4553.744 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
753.713 |
847.230 |
398.311 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7676.705 |
8643.098 |
4155.433 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
592.316 |
561.318 |
821.252 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7084.389 |
8081.780 |
3334.181 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2402.400 |
3118.000 |
1236.581 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4681.989 |
4963.780 |
2097.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1488.592 |
530.150 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2500.000 |
2500.000 |
NA |
|
|
|
Transfer from Debentures Redemption
Reserve |
-- |
(131.387) |
NA |
|
|
|
Interim Dividend |
841.464 |
839.382 |
NA |
|
|
|
Proposed Dividend |
561.093 |
559.588 |
NA |
|
|
|
Tax on Dividend |
236.197 |
237.755 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
2031.827 |
1488.592 |
NA |
|
|
|
|
|
|
|
|
|
|
Export Value |
653.199 |
2350.593 |
608.552 |
|
|
|
|
|
|
|
|
|
|
Import Value |
37192.402 |
8920.604 |
26275.281 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
33.43 |
35.48 |
14.99 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
15528.200 |
27733.600 |
20612.400 |
|
Total Expenditure |
13634.700 |
22417.300 |
18264.200 |
|
PBIDT (Excl OI) |
1893.500 |
5316.300 |
2348.200 |
|
Other Income |
207.800 |
206.300 |
187.900 |
|
Operating Profit |
2101.300 |
5522.600 |
2536.100 |
|
Interest |
184.800 |
226.200 |
211.800 |
|
PBDT |
1916.500 |
5296.400 |
2324.300 |
|
Depreciation |
142.000 |
165.400 |
161.400 |
|
Profit Before Tax |
1774.500 |
5131.000 |
2162.900 |
|
Tax |
560.000 |
1630.000 |
660.000 |
|
Profit After Tax |
1214.500 |
3501.000 |
1502.900 |
|
Net Profit |
1214.500 |
3501.000 |
1502.900 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.17
|
5.13 |
5.52 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
25.03
|
37.50 |
15.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.00
|
17.99 |
14.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.49
|
0.72 |
0.42 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.00
|
3.08 |
2.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.53
|
2.12 |
1.84 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, a part of the Murugappa Group of companies is a leading manufacturer
of a wide range of fertilisers and pesticides. They are the producer of
phosphatic fertilisers, plant protection chemicals, specialty nutrients, and
sulphur bentonite, potash. They are in the business of manufacturing and
marketing of pesticides, which includes insecticides, fungicides, herbicides
and plant biostimulants. Their brand name includes Gromor, Paramfos, Parry
Sulphur and Parry Gold.
The company's fertilizer plants are located are located at Visakhapatnam And
Kakinada in Andhara Pradesh, Ennore and Raniper in Tamil Nadu with a combined
production capacity of 23.10 lakh tonnes of complex fertilizers, 8.15 lakh
tonnes of DAP and 1.32 lakh tonnes of SSP. They market their products all over
Subject was incorporated in the year 1961,
by the synergistic efforts of two major companies of the
Farm Inputs Division of EID Parry India Limited which is engaged in fertilizers
and chemical businesses, merged with the company with effect from April 1,
2003. During the year 2003-04, the company acquired 25.88% share of Godavari
Fertilisers and Chemicals Limited from the Government of Andhra Pradesh through
a competitive bidding process. Also, the company acquired 14.93% of the equity
capital from the shareholders of Godavari Fertilisers and Chemicals Limited
through a public offer.
During the year 2004-05, the company entered into Business Assiantance
Agreement with Foskor Pty Limited,
During the year 2006-07, the company entered into a Shareholders Agreement with
Groupe Chimique Tunisien, Campagnie Des Phosphates De Gafsa and Gujarat State
Fertilisers and Chemicals Limited for setting up a Joint Venture company named
Tunisian Indian Fertilisers S.A at
During the year 2007-08, Godavari Fertilisers And Chemicals Limited was
amalgamated with the company with effect from April 1, 2007. Also, the company
set up 20 Rural Retail Centres in the name and style of 'Mana Gromor Centres'
in various District Head Quarters of Andhra Pradesh and sold Fertilisers,
Pesticides and other products to the rural customers. Also, they provided
services such as Technical Training, Soil Testing Facilities etc. through Mana
Gromor Centres.
In May 2008, the company along with Getex Ocean Trades Pte Limited,
OPERATIONS
The Company's performance for the year has been quite satisfactory despite the monsoon playing truant during the Kharif season. All business units have significantly improved on operational performance over last year and the lower turnover is mainly on account of steep fall in the prices of fertiliser raw materials and traded fertilisers.
The Fertiliser Plants at Visak and
The Mana Gromor Centres (MGC), which started in the year
2007, currently have more than 400 Centres operating across Andhra Pradesh.
During the year, sale of Life Style Products (LSP) were introduced in some of
these centres. These centres in addition to selling Fertilisers and Pesticides
also provide a number of value added services such as Technical Training, Soil
Testing Facilities etc. Consequent to members' approval, the Objects Clause was
amended to provide for farm mechanization services being rendered to the
farming community.
COROMANDEL
INTERNATIONAL LIMITED - NEW BRAND/NEW IMAGE
During the year, the Company which is a flagship Company of
the Murugappa Group, changed its name from 'Coromandel Fertilisers Limited' to 'Coromandel
International Limited' (Coromandel) to reflect its growing business profile and
its global presence. The Company also unveiled its new Brand identity through a
new logo, vision statement and values reflecting its evolving persona. The new
Brand building block 'Maximiser' is a step to portray Coromandel's
entrepreneurial spirit going beyond just pure fertilizer business which
manifests in its global scale of operations and its internal resources, people,
technology and processes, all being world class. The brand focus continues to
be on 'maximising' productivity, progress, protection and prosperity for the
customers of Coromandel. It also gives a new dimension about maximizing
internal progress for the new level of performance, employee engagement and
governance.
TECHNICAL
ASSISTANCE AGREEMENT WITH FOSKOR (PTY) LIMITED (
The relationship with Foskor continues to yield mutual
benefits. The Company along with its wholly owned subsidiary Company, CFL
Mauritius Limited, continues to hold 14.0% of equity of Foskor. The two year
Technical Assistance Agreement with Foskor (Pty) Limited,
SUBSIDIARY
COMPANIES
·
CFL
Mauritius Limited
The subsidiary Company earned a total income of US $15.91
million (equivalent to Rs.762.200 Millions) and net profit of US $ 14.70
million (equivalent to Rs.704.300 Millions) during the year ended December 31,
2009 comprising mainly the dividend income received from Foskor against its
investment in that Company.
·
Parry
Chemicals Limited (PCL)
PCL which is a 100% subsidiary of the Company earned a total
income of Rs.5.700 Millions for the year ended March 31, 2010 and the Profit
after Tax was Rs.0.200 Millions.
·
Coromandel
Brasil Limitada
Coromandel Brasil Limitada, the Limited Liability Company in
JOINT
VENTURE COMPANIES
·
TIFERT
Tunisian Indian Fertilisers Company Limited (TIFERT) formed
in
· Coromandel Getax Phosphates Pte Limited
The JV
Company "Coromandel Getax Phosphates Pte Limited" in
·
Coromandel
SQM India Private Limited
The
Company along with SQM,
AWARDS/RECOGNITION The Company continues to receive a number of
awards/accolades from Industry associations. During this year the Company
received the following awards/accolades:
v
Fertiliser Association of India Award
for Best Production performance for Complex Fertilisers received by Kakinada
Plant.
v
Fertiliser Association of
v
Fertiliser Association of
v
Visak and Kakinada Plants received the
commendation from CII for its strong commitment to excel in the CII-Exim Bank
Business Excellence Award.
MANAGEMENT DISCUSSION AND ANALYSIS ECONOMIC
SCENARIO:
The Indian economy achieved a significant growth during
2009-10, despite a global recession and a delayed and subnormal monsoon in the
first half of the year. As per the advance estimates of GDP for 2009-10,
released by the Central Statistical Organization (CSO), the economy is
estimated to have recorded growth at 7.2% in 2009-10, with the growth in
industrial and service sectors reported at 8.2% and 8.7% respectively. This is
despite a negative growth of 0.2% in agricultural sector as a consequence of
sub-normal monsoon. Deficiency in rainfall in the south west monsoon during
2009- 10 severely affected Kharif crop, esp. Paddy. As per the first advance
estimates, covering only the Kharif crop, production of food-grains is
estimated at 98.83 million tonnes in 2009- 10, as against 117.70 million
estimated for the Kharif season of 2008-09 and a target of 125.15 million
tonnes set for 2009-10. As against this, the total foodgrains production in
2008-09 was the highest at 233.88 million tonnes.
ORGANIZATION:
Coromandel is a flagship Company of Murugappa Group and is a
subsidiary of EID Parry (
The Company has following subsidiaries and joint ventures
for its various business initiatives.
_ Parry Chemicals Limited,
_ CFL Mauritius Limited,
_ Coromandel Getax Phosphates Pte Limited,
_ Coromandel
_ Coromandel SQM (
The Company also holds 15% equity stake in Tunisia Indian
Fertilisers Company Limited, Tunisia and 14% (combined holding of Coromandel
and CFL Mauritius Limited) equity stake in Foskor (Pty) Limited, South Africa.
The Company had set up a Joint venture Company viz.,
Coromandel SQM Private Limited along with SQM International Limited,
The Management Discussion and Analysis given below discusses
the key issues concerning each of the Strategic Business Units (SBUs) forming
part of the Farm Inputs business of the Company and of the Retail Business.
FARM INPUTS: FERTILISERS SBU:
Coromandel with a production capacity of 3.26 million tones
of Phosphatic Fertilisers is one of the leading manufacturers in this business
segment in
INDUSTRY
SCENARIO:
Consumption of fertilisers in terms of nutrients crossed
26.3 million MT for the year comprising of 12.7 million MT in Kharif and 13.6 million
MT in Rabi.
The total fertiliser production in the country for 2009-10
is estimated at 36.8 million tonnes comprising of 21.1 million tonnes of urea,
4.2 million tonnes of DAP and 11.5 million tonnes of complex fertilisers, SSP
and others. This is higher than the previous year production of 33.2 million
tonnes, comprising of 19.9 million tonnes of urea, 3.0 million tonnes of DAP
and 10.3 million tonnes of complex fertilisers, SSP and others. During 2009-10,
the country imported nearly 5.8 million tonnes of Urea (2008-09 - 6 million
MT), 5.8 million MT of DAP (2008-09 - 6.5 million MT) and 4.9 million MT of MOP
(2008-09 - 5.7 million MT) aggregating to nearly 16.5 million tonnes of
fertilisers. With a number of units in the country not producing phosphatic
fertilizers to their full capacity for various reasons including tightness in
availability of raw materials, the volume of DAP imports is expected to remain
high in the year 2010-11 also.
Unlike in the previous year, in 2009-10 the prices of traded
fertilisers and fertiliser raw materials generally remained stable except
during the last quarter viz., January-March 2010, when the prices of DAP and
other fertiliser inputs (except Muriate of Potash and Urea) started moving up
significantly.
GOVERNMENT
POLICIES:
Effective April 1, 2010, the Government of India has
notified a new Nutrient Based Subsidy (NBS) policy providing for a fixed rate
subsidy based on the nutrient content and floating price linked to market
forces.
The subsidy will be fixed based on import parity price
adjusted for MRP wherein the subsidy for 'P' will be based on import parity
price of DAP, 'N' based on Urea, 'K' based on Potash and 'S' based on sulphur
prices.
The prevailing MRP has been deducted from the import parity
price to arrive at the subsidy payable per nutrient. Consequent to the new
policy, the price of Urea has been revised by Government by 10% over the price
prevailing till March 2010.
The subsidy will continue to be disbursed through the
industry in the first phase. It is expected that the NBS will benefit the
industry as well as the farmers in the long run and will provide an opportunity
to capture the brand premium and introduce new products to suit the specific
requirement of soil and crops.
The new policy will be conducive to the introduction of new
grades of fertilisers with different nutrients being made available to farmers
at competitive prices. This will also enable the Government to maintain the
subsidy level at a sustainable level over a period of time, thus creating a
win-win situation for all stakeholders.
The subsidy disbursement during the year 2009-10 was
reasonably prompt and there were no further settlement in the form of fresh
bonds during the year. It is expected that going forward, the Government will
continue to settle the subsidy dues in 2010-11 promptly, although it is felt
that the current budgetary support for fertiliser subsidy for 2010-11 is not
adequate.
The Company continues to hold Fertiliser bonds of the face
value of nearly Rs.10000.000 Millions allotted during 2008-09, in view of the
increase in yield levels which resulted in the bonds trading at higher discount
levels of 10-13%. The Company has provided for a loss of Rs.1370.000 Millions
(including Rs.1170.000 Millions provided for in the earlier financial year
2008-09) in respect of these bonds, due to 'Mark to Market' valuation. The
industry has been continuously representing to the Government for compensation
for the loss incurred in respect of these bonds.
FERTILISER
SBU PERFORMANCE:
The Company achieved a sale volume of 29.08
The movements of fertilisers during the year were strictly
governed by movement orders issued by Government of India and this necessitated
movement to many states.
Coromandel continues to have a significant presence in
Andhra Pradesh, Tamil Nadu, Karnataka, Chattisgarh, Maharashtra,
The Company's Technology Development Centre at
B.
PESTICIDES BUSINESS
INDUSTRY
SCENARIO
Global Agro-chemicals industry has been registering a CAGR
of more than 8% for the last 5 years. However, during 2009-10, global
Agro-chemicals Industry has declined by 6% mainly due to financial crisis and
carry forward inventory in Latin American countries. Acreages of Genetically
Modified (GM) Soya, Maize and Cotton continued to grow and record production of
Soya was witnessed in Latin American countries. Global cotton production
witnessed a decline though Indian cotton production continues to rise.
Increase in regulatory pressure on generic molecules by
European Union and other countries has led to ban of many molecules and
Continued higher MSP for cereals led to increased
consumption in Paddy, making it the major crop for pesticides consumption
followed by Cotton. Cotton sowing touched record acreage during 2009-10, with
increased adoption of Bollguard II technology, which gives control against many
larval pests.
Increased adoption of high value products by farmers was
witnessed leading to drop in volumes of high dosage generics. This boosted the
growth in turnover of Industry by 10% while there was a drop in volume of
generics by nearly 20%.
PESTICIDES
SBU PERFORMANCE:
Pesticides SBU of the Company achieved a turnover of over Rs.3500.000 Millions (growth of 13%) boosted by strong formulations brands business and domestic technicals sales. The Company successfully expanded the formulation business through its retail chain and also by increasing sale volume through its dealer network. Company could introduce new molecules required for private trade and source popular brands required for retail chain, through its co-marketing relationships. This helped the Company to capture significant share in growing segments of high value products.
Company's subsidiary, Coromandel Brasil Limitada, has begun
operations during the year and initiated steps for registration of the
Company's products.
During the year the Company made a successful entry into
public health segment by increasing sale of technicals in the domestic market.
In Technicals business, while sale of Endosulfan and
Profenophos has shown growth over last year, lack of demand for Malathion in
the international market has affected exports. During the year the Company has
commissioned its new facilities at Ankleshwar for manufacturing various
technicals and also set up a Technology Development Centre for developmental
work.
The Company continues to focus on stewardship activities for
Endosulfan which is facing threat of ban in many countries. Various steps have
already been initiated to augment the sales of other technicals.
Formulations plants in Ranipet and
C. SPECIALITY NUTRIENTS BUSINESS The Company's Speciality Nutrient Business has a wide
product range divided into 3 segments viz:
– Secondary and Micro-nutrients, (including sulphur based
products)
– Water soluble Fertilisers (WSF)
– Municipal Compost -
The products offered by Coromandel in the secondary and
Micro-nutrients segment include Bentonite Sulphur, Zinc, Sulpho Zinc, and
Boron. The Company continues to be a market leader in Bentonite Sulphur and
registered a growth of 58% over last year in this segment.
As regards WSF, Coromandel has its presence in all the major
WSF grades which are popular in the country. During the year, the Company
received exclusive manufacturing and marketing permission from Government of
India for two new grades and these products have already been launched.
Organic Carbon, an essential component of Indian agriculture
is now depleted in most of the agricultural tracts of
During the year, the Company enhanced its range of
Speciality Nutrient Products.
The overall turnover/contribution of the Speciality
Nutrients business doubled during the year and the business is expected to
achieve significant growth in the years to come.
RETAIL
SBU:
The Mana Gromor rural retail business which began in 2007 to
provide "one stop solution" to farmers has now been expanded to over
400 centers operating across AP. The response from the farming community has
been very positive and Company has been striving to provide urban shopping
experience for the rural community by setting up spacious outlets with good ambience.
Besides marketing its own products like Fertilisers, Pesticides, Speciality
Nutrients the Company is also selling other Agri products like Seeds and other
traded fertilisers, pesticides, organic manure and its variants. Some of the
new products/services taken up by MGCs during the year included Water Soluble
Fertilisers (WSF), Animal Feed, Farm implements like sprayers, Farm
mechanization services, Cement and Life Insurance etc.
The Company is in the process of consolidating and
stabilizing the operations of Retail SBU and will expand to neighbouring states
like Tamilnadu, Karnataka and
COMPANY'S
PERFORMANCE:
The Company's overall financial results achieved for the
financial year 2009-10 have been good, despite the failure of monsoon in the
first half of the year. While Sales have grown by 31.3% due to improved sales
performance across all SBUs, Government Subsidies have dropped from
Rs.72196.900 Millions in 2008-09 to Rs.35642.000 Millions in 2009-10 -
reduction of nearly 50.6% mainly due to steep fall in the international prices
of all fertiliser raw materials and traded fertilisers.
The Company's profitability, with due adjustment for the one
time income of Rs.1585.900 Millions earned during previous year under the
Business Assistance Agreement with Foskor (Pty) Limited, South Africa, has
increased by 9% thanks to improved operational performance in all SBUs of the
Farm Inputs Segment and lower interest burden.
OUTLOOK:
With the notification of the new Nutrient Based subsidy
(NBS) policy, it is expected that there will be more certainty/stability on the
subsidy front and this policy would also enable Company to capture the value of
its brands. This policy would also enable the Company to introduce new products
in line with the soil/crop requirements.
The Company will continue to leverage on its international
tie-ups to ensure continued supply of all raw materials at the most competitive
international prices. The Company is in the process of developing new vendors
and new sources of raw materials especially for Phosphoric Acid and Rock
Phosphate. The Tunisian Company viz. Tunisian Indian Fertiliser Company,
The focus during 2010-11 will be on increasing the volume of
fertilisers leveraging on the increased instantaneous capacity created in the various
plants. Efforts will be made to further improve operating efficiencies.
Under the NBS policy, it is expected that settlement of
subsidy dues will be faster and better. The Industry has taken up with
Government of India for compensation for the loss suffered by them in respect
of the bonds allotted to them during the previous years. The Govt. has
indicated to the Industry that there will be no further allotment of bonds and
all subsidy dues will be settled in cash.
As regards the pesticides business, the focus will be on
stabilizing the operations at Ankleshwar Plant and introduce new technicals. It
is also proposed to strengthen the R and D activities at the Ankleshwar R and D
facility. On the exports front, it is planned to increase the market presence
in Latin America by completing the product registration formalities in
In respect of formulations business, the Company will
continue to focus on specialities to boost up the volume and profitability and
leverage retail operations and improve sales in AP. In the Speciality Nutrient
Business, the Company has plans to expand its product portfolio especially in
the WSF segment to cater to all customers and crop segments. The new subsidiary
set up along with SQM,
As regards the Rural Retail business, the Company expects to
increase the volume of sales of various products - Agri, Non agri including
life style products. The Company also plans to expand retail operations to some
of the neighbouring States like Tamilnadu, Karnataka and
FINANCE:
The Company generated Rs.7539.000 Millions of cash surplus
from its operations, before change in working capital. The Company's net worth
has improved during the year from Rs.11271.400 Millions as on March 31, 2009 to
Rs.14349.900 Millions as on March 31, 2010.
The Company invested Rs.449.600 Millions. towards balance
share of its equity in Tunisian Indian Fertilisers Company S.A (TIFERT),
Tunisia, Rs.19.900 Millions towards its share of equity into Coromandel SQM
Private Limited Rs.0.400 Millions being
its balance share of equity into Coromandel Brasil Limitada, Brazil and Rs.7.300
Millions towards acquiring 7% equity in Murugappa Management Services Limited,
which provides common facilities to the Murugappa Group Companies including
Coromandel.
The Company has been resorting to prudent mix of rupee and
foreign currency borrowings to finance its working capital requirements and
achieved significant reduction in the financing cost. The unsold bonds of the
face value of Rs.9977.300 Millions held as on March 31, 2010 will be liquidated
at the appropriate time keeping in mind the market conditions. Pending
liquidation of these bonds the Company has resorted to short term borrowings at
competitive rates to finance the working capital.
The Company's long term debt: equity ratio continues to be
very healthy and the Cash and Bank balance of Rs.7200.000 Millions at the year end represents temporary surplus
invested in short term bank deposits. During the year, the Company has obtained
reaffirmation of its credit ratings from "CRISIL" with a positive
outlook.
FIXED ASSETS
v Land-Freehold
v Land -Leasehold
v Buildings, Roads
v Railway Siding
v Plant and Machinery
v Technical know-how
v Office Equipment
v Furniture and Fittings
v Vehicles
UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR
THE QUARTER ENDED DECEMBER 31, 2010
Rs. in Millions
|
Particulars |
Stand-alone Results |
Stand-alone Results |
|
Unaudited |
Unaudited |
|
|
Quarter Ended |
Nine Months Ended |
|
|
31.12.2010 |
31.12.2010 |
|
|
|
|
|
|
Net sales/Income from operations |
20470.700 |
63532.000 |
|
Other Operating Income |
141.700 |
342.200 |
|
Total |
20612.400 |
63874.200 |
|
Expenditure |
|
|
|
a) (Increase) / Decrease in stock in trade and work in progress |
(374.200) |
(1786.400) |
|
b) Consumption of raw materials |
13262.100 |
39516.700 |
|
c) Purchase of traded goods |
3030.500 |
9296.500 |
|
d) Employee costs |
470.400 |
1362.100 |
|
e) Depreciation |
161.400 |
468.800 |
|
f) Other expenditure |
1875.400 |
5927.300 |
|
Total |
18425.600 |
54785.000 |
|
Profit from Operations before Interest and Exceptional items |
2186.800 |
9089.200 |
|
Other income |
187.900 |
602.000 |
|
Profit before Interest and Exceptional items |
2374.700 |
9691.200 |
|
Interest |
211.800 |
622.800 |
|
Profit after Interest but before Exceptional Items |
2162.900 |
9068.400 |
|
Exceptional items |
-- |
-- |
|
Profit (+) / (Loss) (-) from Ordinary Activities before tax |
2162.900 |
9068.400 |
|
Tax expense |
660.000 |
2850.000 |
|
Net Profit (+) / (Loss) (-) from Ordinary Activities after tax |
1502.900 |
6218.400 |
|
Paid-up equity share capital (Face value - Rs.1 per equity share) |
281.700 |
281.700 |
|
Reserves excluding revaluation reserves as per Balance Sheet previous accounting
year |
-- |
-- |
|
Earnings per share (for the period - not annualised) |
|
|
|
- Basic (Rs.) |
5.34 |
22.12 |
|
- Diluted (Rs.) |
5.29 |
21.91 |
|
|
|
|
|
Public Shareholding |
|
|
|
- Number of shares |
101072262 |
101072262 |
|
- Percentage of shareholding |
35.88 |
35.88 |
|
|
|
|
|
Promoters and
Promoter group Shareholding |
|
|
|
a)
Pledged/encumbered |
|
|
|
- No of shares |
-- |
-- |
|
- Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
-- |
-- |
|
- Percentage of shares (as a % of the total share capital of the
company) |
-- |
-- |
|
|
|
|
|
b)
Non-encumbered |
|
|
|
- No of shares |
180586864 |
180586864 |
|
- Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
100.000 |
100.000 |
|
Percentage of shares (as a % of the total share capital of the
company) |
64.12 |
64.12 |
Note:
.
- The
above financial results ore drawn in accordance with tire accounting
policies consistently adopted by the company.
- The
above results have been reviewed mod recommended by the Audit Committee
and approved by the Board of Directors at their meeting held on January
12, 2011
- The
auditors have carried out a Limited Review of the results of the Company
for the quarter and nine months ended December 31, 2010
- The
board of directors at their meeting held on January 12, 2011 have approved
an interim dividend of Rs 4 per share (400% on face value of Re 1 per
share)
- During
the quarter pursuant to the approval of shareholders, 140829563 equity
shares of Rs. 2 each have been sub-divided into 281659126 equity shares of
Re 1 each accordingly. The earnings per share and the information relating
to ‘Public Shareholding’ and ‘Promoters and Promoter Group Shareholding’
of the earlier period/year have been recomputed.
- During
the current quarter, pursuant lathe exercise of stock Options by certain
employees under the ‘ESOP 2007’ scheme, the Company has allotted 328402
(December 2009:227328) equity shares at the respective exercise prices.
- The
Consolidated Results for the quarter include results of Parry Chemicals
Limited, CFL Mauritius Limited, Coromandel Brasil Limitada and Pasura
Biotech Private Limited wholly owned subsidiaries and Tunisian Indian
Fertilizers SA (TIFERT), Coromandel Getax Phosphates Pte Limited and
Coromandel SQM (India) Private Limited: joint venture companies In respect
of CFL Mauritius Limited Coromandel Brail Limitada Coromandel Getax
Phosphates Pte Limited and TIFERT, unreviewed results have been used for
preparing the consolidated results for the quarter ended and nine months
ended December 31, 21010 Further iii respect of TIFERT. Unaudited accounts
for the year ended December 31, 2009 have been used far the year ended
March 31, 2010 These matters have been referred to in the Auditors’ Report
for the quarter ended December 31, 2010 and year ended March 31, 2010.
- The
Company its joint ventures and three of its subsidiaries (Party Chemicals
Limited, Coromandel Brasil Limitada and Pasura Biotech Private Limited)
are primarily engaged in the farm inputs business. Which is tine context
of Accounting Standard 17: is considered the only business segment In
respect of the retail business of the Company relating to traded products
and investment activity of a subsidiary comapny (CFL Mauritius Limited)
since these are not material, disclosure of business segment information
is not considered necessary.
- The
company has recognized subsidy income fat the current quarter us per the
new Nutrient Bused Subsidy (NBS) policy announced by the Government of
India, effective April 1, 2010 Subsidy Income for the nine months ended
December 31, 2010 includes Rs.2260.300 millions (December 31, 2009:
Rs.259.400 millions) relating to previous periods following announcement
determination of final rates of concession. (The results for the quarter
ended December 31, 2009 and year ended March 31, 2010 also included an
amount of Rs.1559.000 millions net of related income tax) relating to
earlier years, following determination of the subsidy receivable
consequently. The matters referred to in the auditors report for the ended
March 31, 2010, and quarter ended September 30, 2010 relating to subsidy
income have been resolved except for certain elements of freight subsidy
income which are not material.
- During
the current quarter 3 investor compliant were received and resoled. There
was no investor complaint pending or at the end of the quarter
- Figures
of the previous quarterly year have been regrouped and reclassified,
wherever considered necessary.
AS PER WEBSITE DETAILS
PROFILE
Coromandel International Limited is in the business segments of
Fertilisers, Speciality Nutrients, Crop Protection and Retail.
Coromandel manufactures a wide range of fertilisers and markets around
2.9 million tons making it a leader in its addressable markets and the second
largest phosphatic fertiliser player in
In its endeavour to be a complete plant nutrition solutions company,
Coromandel has also introduced a range of Speciality Nutrient products
including Organic Fertilisers.
The Crop Protection business produces insecticides, fungicides and
herbicides and markets these products in
Coromandel has also ventured into the retail business setting up more
than 425 rural retail centers in the agri and lifestyle segments.
The Company clocked a turnover of Rs.65270.000 Millions in 2009-10 (USD
1.44 billion as on March 31, 2010).
Coromandel was ranked among the top 20 best companies to work for by
Business Today and was also voted as one of the ten greenest companies in India
by TERI, reflecting its commitment to the environment and society.
Coromandel is a part of the Rs.136170.000 Millions (USD 3.03 billion as
on March 31, 2010) Murugappa Group.
MANAGEMENT
Mr. A Vellayan -
Chairman
Mr. A Vellayan holds a Diploma in Industrial Administration from
Mr. Vellayan is also the Chairman of the Muruagappa Group. He is a
Director on the board of Governors,
Mr. V Ravichandran
- Managing Director
Mr. V Ravichandran is basically an Engineering Graduate and holds Post
Graduate Diploma in Management from IIM, Ahmedabad. He is also a Cost
Accountant and a Company Secretary. After having served Ashok Leyland Limited
initially for a short period, joined the Murugappa Group and had served Parry
Group of Companies mainly in the fields of finance and marketing. He also
headed the Crop Protection Products businesses. He is currently the Managing
Director of Coromandel International Limited.
Mr. M M Venkatachalam
- Director
Mr. M M Venkatachalam graduated from the
Mr. M.K. Tandon -
Director
Mr. M K Tandon has been associated with the Indian Insurance Industry
for more than 35 years. He had, after completing his Masters Degree in Commerce
and Degree in Law both from
Mr. K
Balasubramanian - Director
Mr. K Balasubramanian is a Graduate in Commerce from the
Dr. B V R Mohan
Reddy - Director
Dr B V R Mohan Reddy is a Graduate in Mechanical Engineering and holds a
Master's degree in Management Engineering from
Mr. R A Savoor -
Director
Mr. R A Savoor is a B.Sc. Tech. He retired as Managing Director of
Castrol India Limited with effect from April 24, 2002. He was with Castrol
India Limited for 34 years, of which 12 years as Chief Executive and Managing
Director. Under his leadership Castrol
Mrs. Ranjana Kumar
- Director
Mrs. Ranjana Kumar Bachelor of Arts, a Gold Medalist, had an illustrious
career in the Indian banking industry spanning over four decades. She had started
her career with Bank of India in the year 1966 as a probationary officer and
held several senior positions in the Bank. She was CEO of US operations of Bank
of India based in
MILESTONES:
1959 - Independent India realised that its
largely agrarian economy needed a thrust in the right direction for its people
to benefit and prosper. Prime Minister Jawaharlal Nehru invited the Ford
Foundation to carry out a comprehensive study of
1961 - An industrial license was granted to three
companies - IMC ((the world's largest producer of fertilisers
then), Chevron Chemical Company (a major American player in fertilisers /
industrial chemicals) and E.I.D.Parry (I) Limited (
The first board of Directors was constituted on October 16,
with Mr. H V R Iengar as its Chairman. Others on the Board included J Q
Cope, Charles Dennison, J K John, Dr L Bharat Ram, A W Horton, J T Gibson,
S C Dholakia, V K Rao and Raja Rameswar Rao. L L Powell and P
J Davies were the first Managing Director and Dy. Managing Director
respectively. Donald I Meikle was the first Company Secretary.
1962 - Market development commenced in
the form of a 'seeding programme'. E.I.D.Parry was appointed CFL's principal
sales agent in
A sprawling 483.5 acres site was identified at
1964 - On March 2, Dr. Bharat Ram
was elected Chairman of CFL's Board of Directors. He was the
longest-serving Chairman, with an innings of 37 years. Addressing the AGM as
Chairman on July 15, 2004, he nostalgically commented, "In my long innings
in public life, business and industry, I have the varied experience. But
I would like to affirm today, the last occasion when I shall address you as the
Chairman of CFL, that no assignment has given me such pleasure and a sense of
fulfillment as working with you all. CFL has been a role model, a
commonwealth, in a co-operative effort to build a great company, anchored in
values and every aspect of what is commonly known today as 'corporate governance'.
1967 - On December 10, Mr. Morarji Desai, the
then Deputy Prime Minister of India, dedicated the fertiliser plant to the
nation, in the presence of Mr. Kasu Brahmananda Reddy, the then Minister of
Andhra Pradesh. Grandhi Ramamurthy, a local farmer, was given the honour
of cutting the ribbon. The 245 ft high Urea prill tower was on of the
tallest industrial structures in
1970 - The 'GROMOR farmer' was developed as a
marketing symbol and introduced on their bags to spread the message of 'higher
yields, bigger profits'. Today, farmer households across their
addressable markets identify CFL's brand by this symbol.
1971 - The 'Cormondel Lecture' was instituted
to provide a forum for thinker, economists, social and agricultural research
scientist around the world to share their thoughts on issues of global concern
such as food security, environment and extension activity. The 'Borlaug
Award' , instituted in honour of Nobel Laureate Dr Norman Borlaug (father of
the Wheat revolution), honours eminent men of science and industry for their
distinctive contribution to the cause of agriculture. This reflects CFL's
concern to develop a symbiotic interaction between agriculture, industry and
academia.
1976 - Their fertiliser retail outlet at
Secunderabad got a boost with garden lovers fervently seeking small quantities
of fertilisers for bigger and richer blooms and fruit.
1977 - CFL completed a decade of
participation in augmenting agricultural production for the nation. Its
vital role covered soil nourishment, sharing agronomic expertise, supporting
agricultural education and rewarding research - all of which had progressively
grown in width and depth during the decade.
1980-90 - Plans to diversify were
afoot. A 'groundbreaking' ceremony was performed in November 1980 at
Chilamkur (Andhra Pradesh), which is rich in limestone deposits, to set up a
one million tonne cement plant. The fully computerised plant (designed by
world-renowned cement manufacturer Krupp Polysius of
1995-99 - Chevron Chemical Company
divested its stake in favour of E.I.D.Parry (I) Limited in 1995, followed by
IMC in 1999. E.I.D.Parry (I) Limited acquired majority shareholding in
CFL, making it a part of Murugappa Group, a highly reputed industrial conglomerate.
2000 - CFL's growth over the years has been
punctuated with several path-breaking modernisation / upgradation programmes.
Begun in 1975, the programme gathered momentum in 1992-95, when the
Sulphuric Acid, Phosphoric Acid and Complex Granulation plant were
debottlenecked. Production capacity went up from the original 247,000 MT
to 400,000 MT. On September 29, Mr N Chandrababu Naidu, the then
Chief Minister of Andhra Pradesh, inaugurated a new complex granulation
train. This further augmented capacity to 600,000 MT, a boon to the
entire farming community.
2003 - On July 12, CFL consolidated its
business by acquiring controlling stake in Godavari Fertilisers and Chemicals
Limited (GFCL).
To optimise synergy of operations in the Group, the Farm Inputs
Division of E.I.D.Parry (I) Limited was merged with CFL on December 1.
2004 - Mr. V Ravichandran took over as
President and WTD on January 22. Mr A Vellayan took over as Chairman on
September 1. Other Directors on the Board are Mr. J Jayaraman, Mr M M
Murugappan, Mr T M M Nambiar, Mr M K Tandon, Mr D E
Udwadia, Mr S Viswanathan and Mr K A Nair. The first post merger
AGM of the company was held on July 15.
2005 - CFL signs a Business Assistance Agreement with Foskor Limited,
Future Plans :-
The company is on the look out for opportunities for growth through
acquisition of existing phosphatic fertiliser units, especially in the eastern
coast. It will consider opportunities for trading in finished fertilisers at
the appropriate time. The members would be informed of further developments in
this regard as and when they materialise.
Awards AND RecognitionS :-
·
The FAI Best Production
Performance Award – 2006 for the Phosphoric Acid Plant at Vizag,
·
Award for 2005-06 Best Energy
Conservation in the Fertiliser sector received by Vizag Plant on December 14
2006, National Energy Conservation Day.
·
The FAI Best Video Film Award –
2006 for the film on ‘Gromor Sulphur’ for the 5th time.
·
National Award (1st Prize) for
House Journal – 2006 from The Public Relations Society of India,
·
National Award (2nd Prize) for
Video Film – 2006 from The Public Relations Society of India, New Delhi
received by Marketing Department (Fertilisers ) for the film “Cheyutha”
(Helping Hand)
·
British Council ‘Five Star’ rating
for Safety Management System in 1998.
·
First prize for safety, among the
162 fertiliser companies in the International Fertiliser Industries Sectional
Contest.
·
Andhra Pradesh Pollution Control
Board’s award for ‘Waste Minimisation at Source and Adopting Cleaner
Technologies’ for 2001-02.
·
FAI award for ‘Environmental
Protection in NP/NPK Fertiliser Plant Category’ for 1995-96.
·
Adjudged one of the ‘Ten Greenest Companies
in
·
Several other awards from the
Central and State Government and other institutions like AP Pollution Control
Board, Jawaharlal Nehru Award for Pollution Control and Energy Conservation.
·
Received a Commendation
Certificate for "Strong Commitment to HR Excellence" from the
Confederation of Indian Industries (CII).
Promoters belonging to the Murugappa Group:
1.
EID Parry (
2.
Dodavari Fertilisers and Chemicals Limited
3.
Parry Engineering and Exports Limited
4.
Parry Agro Industries Limited
5.
Parry Nutraceuticals Limited
6.
New Ambadi Estates Private Limited and subsidiaries
7.
Ambadi Enterprises Limited
8.
Tube Investments of India Limited and subsidiaries
9.
Pressmet Private Limited
10.
Carborundum Universal Limited and subsidiaries
11.
Cholamandalam Investment and Finance Company
Limited and subsidiaries
12.
The Coromandel Engineering Company Limited and
subsidiaries
13.
AMM Educational Foundation
14.
AMM Arunachalam and Sons P Limited
15.
AMM Vellayan Sons P Limited
16.
MM Muthiah Sons P Limited
17.
Murugappa and Sons
18.
Kademane Estates Company
19.
MM Muthiah Research Foundation
20.
A R Lakshmi Achi Trust
21.
AMM Foundations
22.
AMM Medical Foundations
News:
22nd
July 2010
The Unaudited financial results for the first quarter ended
June 30, 2010 were approved by the Board of Directors at its meeting held on
July 22, 2010.
Sales turnover during this period is Rs.15488.700 Millions,
as against Rs.15879.800 Millions in the corresponding period last year.
The gross profit before depreciation, interest and taxes for
the three months period is Rs.2101.300 Millions as against Rs.1076.400 Millions
during the same period last year; depreciation provided is Rs.142.000 Millions
(corresponding period last year Rs.140.400 Millions), interest charged
Rs.184.800 Millions (Corresponding period last year Rs.174.500 Millions).
Profit Before Tax for the quarter is Rs.1774.500 Millions as compared to
Rs.761.500 Millions in the corresponding period last year. Improved raw
material procurement efficiencies in fertiliser business and increased
contribution from Pesticides and Specialty nutrients businesses has resulted in
higher profitability for the quarter.
Provision for taxation for the period works out to
Rs.560.000 Millions (Corresponding period last year Rs.240.000 Millions). The
net profit is Rs.1214.500 Millions as against Rs.521.500 Millions during the
corresponding period last year.
During the quarter, the Company has acquired 100% of equity
share capital of M/s Pasura Biotech Private Limited. The Board has approved
merger of Pasura Bio-tech Private Limited (wholly owned subsidiary company)
with the Company.
In line with the strategy for the pesticides business,
technical grade manufacturing facilities have been consolidated at the new
plant at Ankleshwar,
As part of overall strategy to increase production capacity
from 3 million to 4 million tones, the Board has approved a proposal for
setting up additional train at
A copy of the advise to the Stock Exchanges giving the
highlights of the un-audited financial results approved by the Board of
Directors of the Company on July 22, 2010 is attached.
Founded in 1900, the Rs.136170.000 Millions (USD 3.03
billion) Murugappa Group is one of
Renowned brands like BSA, Hercules, Ballmaster,
The organization fosters an environment of professionalism and
has a workforceof over 32,000 employees.
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.44.96 |
|
|
1 |
Rs.73.37 |
|
Euro |
1 |
Rs.62.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
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 |
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 |
|
76 |
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.