MIRA INFORM REPORT

 

 

Report Date :

23.05.2011

 

IDENTIFICATION DETAILS

 

Name :

RALLIS INDIA LIMITED

 

 

Registered Office :

156/ 157, 15th Floor, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

23.08.1948

 

 

Com. Reg. No.:

11-014083

 

 

Capital Investment / Paid-up Capital :

Rs.129.648 millions

 

 

CIN No.:

[Company Identification No.]

L36992MH1948PLC014083

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR16455F/BRDR01021G

 

 

PAN No.:

[Permanent Account No.]

AABCR2657N

 

 

Legal Form :

It is a Public Limited Liability Company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer, Exporter and Importer of Agro Chemicals, Pesticides, Insecticides, Herbicides, Acaricides, Rodenticides, Fungicides and Fertilizers.

 

 

No. of Employees :

Approximately 846 (As on 31.03.2010)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (70)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 16912000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INFORMATION PARTED BY

 

Name :

Mr. Soumen Mitra

Designation :

Chief Financial Officer

Contact No.:

91-22-67761641

Date :

21.05.2011

 

 

LOCATIONS

 

Registered Office/ Head Office :

156/ 157, 15th Floor, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-66652700/ 67761641 

Mobile No.:

91-9223316589 (Mr. D.C. Masharamai)

Fax No.:

91-22-66652827/ 66652847/ 66310963

E-Mail :

vijay.rallis@rallis.sprintrpg.ems.vsnl.net.in

vijay.rai@rallis.sprintrpg.ems.vsnl.net.in

legal.ho@rallis.co.in

address.legal.ho@rallis.co.in

investor_relations@rallis.co.in

Website :

http://www.rallis.co.in

Area :

5000 sq ft

Location :

Owned

 

 

Factory:

Rallis House, 21, Damodardas Sukhadvala Marg, Mumbai 400 001, Maharashtra, India 

 

 

Agrochemicals Plants :
  • Thane-Belapur Road, Thane - 400 601, Maharashtra, India
  • Village Bir Dadralab Block, Amballa Chandigarh Highway, Behind JMA Industry, Derabassi, District Patiala - 140 507, Punjab, India
  • Survey No. 16/2B, 16/2C, 146, Kilavalam Village, Madurantakam Taluka, District Kaancheepuram, Tamil Nadu, India
  • GIDC Estate, Plot No. 3301, Ankleshwar - 393 002, District Bharuch, Gujarat, India
  • GIDC Estate, Plot No. 2808, Ankleshwar - 393 002, District Bharuch, Gujarat, India
  • C 5/6, MIDC Industrial Area, Phase III, Shivani, Akola - 444 104, Maharashtra, India
  • Plot No. D-26, Lote Parsuram, MIDC, Near Hotel Vakratunda, Taluka Khed, District Ratnagiri - 415 722, Maharashtra, India
  • 20, Howrah Road, Salkia, Howrah - 711 106, West Bengal, India
  • 15 A, MIDC, Turbhe, Thane-Belapur Road, New Mumbai – 400 703, Maharashtra, India
  • GIDC Estate, Plot No. 3000, Ankleshwar – 393 002, District Bharuch, Gujarat, India
  • IDA, Phase II, Patancheru, Medak District, Andhra Pradesh, India  

 

 

Fine Chemical Plants  :
  • Sandynalla, Sholur Town Panchayat, P. O. Box No. 30, Ootacamund - 643 237, Tamil Nadu, India

 

  • A-14/A, Sipcot Industrial Complex, Cuddalore - 607 005, Tamil Nadu, India

 

 

Regional Offices :

Located at:

 

v      Ahmedabad

v      Guntur

v      Lucknow

v      Pune

 

 

Zonal Offices :

Located at:

 

v      Bangalore

v      Chandigarh

v      Kolkata

v      Secunderabad

 

 

R and D Office :

KSCMF Limited Building, II Floor, Block – III, Next to Hotel Chandrika, 8, Cunningham Road, Bangalore – 560 052, Karnataka, India

Tel. No.:

91-80-22268051/ 22268071

Fax No.:

91-80-22268085

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. R. Gopalakrishnan

Designation :

Chairman

Address :

Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

25.12.1945

Date of Appointment :

28.06.1999

Expertise in specific functional areas :

Mr. R. Gopalakrishnan was appointed as Executive Director – Exports in Hindustan Lever Limited, after 20 years’ experience with the Company. In 1991, he became Chairman, Unilever Arabia, based in Jeddah. He was later appointed as Managing Director of Brooke Bond Lipton and after its merger with Hindustan Lever, he was appointed Vice Chairman of Hindustan Lever Limited. He joined Tata Sons in September 1998 and is an Executive Director of Tata Sons Limited. He is also a Director on Board of several Tata Companies.

Qualifications :

 - B. Sc. In Physics from Calcutta University.

– Engineering from IIT, Kharagpur.

– Advanced Management Programme, Harvard Business School.

Directorship in other company :
  • Tata AutoComp Systems Limited, (Chairman)
  • Tata Chemicals Limited, (Vice Chairman)
  • Tata Sons Limited
  • Tata Motors Limited
  • Tata Power Company Limited
  • Tata Technologies Limited
  • ICI India Limited
  • Castrol India Limited
  • Advinus Therapeutics Private Limited, (Chairman)
  • ABP Private Limited
  • IMACID S. A., Morocco

 

 

Name :

Mr. Veeramani Shankar

Designation :

Managing Director and Chief Executive Office

Address :

156/157, 15th Floor, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra, India

Date of Birth/Age :

18.09.1956

Date of Appointment :

13.03.2007

 

Mr. V. Shankar joined the Company on 1st December, 2005 as Chief Operating

Officer and was appointed as Executive Director with effect from 13th March, 2007. Prior to joining the Company, he had worked with Tata Chemicals Limited as Chief Operating Officer, Phosphates Business. Prior to that, he was with Hindustan Lever Limited From 1986 to 2004. While in Hindustan Lever, he served in various capacities in the Commercial function and was also Head of the Seeds as well as Fertiliser businesses.

Qualification :

Chartered Accountant, Cost Accountant, Company Secretary and Law Graduate.

Directorship in other company :

Rallis Australasia Pty. Limited

 

 

Name :

Mr. B. D. Banerjee

Designation :

Director

Address :

J/ 503, Satellite Gardens Phase II, Film City Road, 261, General A.K. Vaidya Marg, Goregaon (East), Mumbai – 400 063, Maharashtra, India

Date of Birth/Age :

14.10.1941

Date of Appointment :

15.06.2004

Expertise in specific functional areas :

In a career spanning over 37 years in the Insurance Industry, Mr. B. D. Banerjee

played an important role in the establishment, growth and consolidation of the non-life Insurance sector in India. He has served as the Chairman-cum- Managing Director of Oriental Insurance Company Limited and the National Insurance Company Limited. And as the Managing Director of General Insurance Corporation of India. He was also the Administrator of the Pune Stock Exchange and has also been the Insurance Ombudsman for Maharashtra and Goa.

Qualification :

Post Graduate with Honours in Philosophy from Presidency College, Calcutta University and Associate of the Insurance Institute of India.

 

 

Name :

Mr. Homi R. Khusrokhan

Designation :

Director

Address :

302, Daisylea, Off Mt. Pleasant Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India 

Date of Birth/Age :

15.12.1943

Qualification :

B.Com. (Hons.), Chartered Accountant and M.Sc (Econ.) from London School of Economics and Political Science.

Date of Appointment :

24.03.2003

 

 

Name :

Mr. E.A. Kshirsagar

Designation :

Director

Address :

19, Tarangini, Twin Towers Road, Prabhadevi, Mumbai – 400 025, Maharashtra, India

 

 

Name :

Dr. S. Ramanathan

Designation :

Director

Address :

480, 19th Main, 4 T Block, Jayanagar, Bangalore – 560 041, Karnataka, India

Date of Birth/Age :

08.06.1936

Date of Appointment :

13.03.2007

Expertise in specific functional areas :

Dr. S. Ramanathan is a distinguished scientist. He worked in Sandoz till 1994, when he retired as Vice President of R and D, Projects, QA and Safety. He was also adjunct Professor of the University of Mumbai and IIT, Powai where he guided students for M.Sc and Ph.D degrees in Chemistry.

Qualification :

Ph.D from UDCT and did his post-doctoral work at the Swiss Federal Institute of

Technology in Zurich.

 

 

Name :

Mr. Prakash R. Rastogi

Designation :

Director

Address :

2, Blooming Heights, 4, Pali Hills, Bandra, Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

31.07.1944

Qualification :

M.Sc. Tech from Bombay University and PG Diploma in Business Management.

Date of Appointment :

13.03.2007

 

 

Name :

Mr. Bharat Vasani

Designation :

Director

Address :

Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

24.08.1958

Qualification :

B. Com., L.L.B. and Member of the Institute of Company Secretaries of India.

Date of Appointment :

13.03.2007

 

 

Name :

Dr. K.P. Prabhakaran Nair

Designation :

Additional Director

Date of Birth/Age :

04.10.1938

Date of Appointment :

01.09.2008

Expertise in specific functional areas :

Dr. K. P. Prabhakaran Nair has over three decades of research, teaching and developmental experience in Europe, Africa and Asia. He has held a number of positions of prestige, the most important being Professor, National Science Foundation, The Royal Society, Belgium; Professor and Head, The University Center, Cameroon; Senior Professor, University of Fort Hare, South Africa and Distinguished Visiting Scientist, Indian Council of Agricultural Research. Dr. Nair has been acknowledged for developing the revolutionary soil management technique, which is now globally known as “The Nutrient Buffer Power Concept”. He is the world’s only agricultural scientist to have been invited to write chapters four times to “Advances In Agronomy”, the magnum opus of agricultural science.

Qualification :

B.Sc. in Agriculture and M.Sc. in Agronomy from the Tamil Nadu Agricultural University, Coimbatore. Ph.D. from Indian Agricultural Research Institute, New Delhi. Post-Doctoral Research from State University of Gent, Belgium.

 

 

Name :

Dr. Venkatrao S. Sohoni

Designation :

Director

Date of Birth/Age :

28.05.1942

Qualification :

B.Tech. (Hons.) IIT (Kharagpur) Ph.D. IIT Mumbai

Date of Appointment :

22.04.2010

 

 

Name :

Dr. Yoginder K. Alagh

Designation :

Director 

Address :

Institute of Rural Management of India, Post Box No.60, Anand – 388 001, Gujarat, India

Date of Birth/Age :

14.02.1939

Qualification :

Ph.D. in Economics from the University of Pennsylvania, USA

Date of Appointment :

22.04.2010

 

 

Name :

Mr. R. Mukundan

Designation :

Director

Address :

Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

19.09.1966

Qualification :

BE (Electrical Engineering) From IIT, Roorkee and MBA From FMS, Delhi University. Also attended the Advanced Management Programme at Harvard Business School in 2008.

Date of Appointment :

03.12.2009

 

 

KEY EXECUTIVES

 

Name :

Mr. Soumen Mitra

Designation :

Chief Financial Officer

 

 

Name :

A. K. Shetty

Designation :

Chief Operating Officer – Agri Business

 

 

Name :

D. K. Sundar

Designation :

Executive Vice President – Finance and Legal

 

 

Name :

Nagraj Koneripalli

Designation :

Executive Vice President – Technology and Business Development

 

 

Name :

K. R. Venkatadri

Designation :

Vice President – Domestic Sales

 

 

Name :

R. R. Joshi

Designation :

Vice President – Manufacturing

 

 

Name :

K. Amuthan

Designation :

Vice President – Human Resources and Business Excellence

 

 

Name :

Shashi Kapoor

Designation :

Chief Internal Auditor

 

 

Name :

D. G. Shetty

Designation :

Head – International Business

 

 

Name :

Mr. P.S. Meherhomji

Designation :

GM – Legal and Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

9,851,529

50.66

Sub Total

9,851,529

50.66

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

9,851,529

50.66

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

3,529,901

18.15

Financial Institutions / Banks

7,020

0.04

Central Government / State Government(s)

80,115

0.41

Insurance Companies

538,807

2.77

Foreign Institutional Investors

817,228

4.20

Sub Total

4,973,071

25.57

(2) Non-Institutions

 

 

Bodies Corporate

727,555

3.74

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

1,894,047

9.74

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

1,995,657

10.26

Any Others (Specify)

5,030

0.03

Foreign Corporate Bodies

390

-

Trusts

4,640

0.02

Sub Total

4,622,289

23.77

Total Public shareholding (B)

9,595,360

49.34

Total (A)+(B)

19,446,889

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

19,446,889

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Agro Chemicals, Pesticides, Insecticides, Herbicides, Acaricides, Rodenticides, Fungicides and Fertilizers.

 

 

Products :

Item Code No.

 

Product Description

380820.09

Hexaconazole

380810.29

Acephate

380810.16

Dimethoate Technical

380820-90

Metconazole

 

 

Exports :

 

Products :

Pharmaceutical Chemicals

Countries :

US, Vietnam, Israel, Spain, Switzerland, Taiwan and Europe

 

 

Imports :

 

Products :

Raw Materials

Countries :

France, Chile, Israel, Japan, Singapore, UK and USA

 

 

Terms :

 

Selling :

L/C, Cash and Credit (30/ 60/ 90 days)

 

 

Purchasing :

L/C, Cash and Credit (30/ 60/ 90 days) 

 

PRODUCTION STATUS (31.03.2010)

 

Particulars

Unit

 

Installed Capacity

Actual Production

PESTICIDES:

 

 

 

 

Solids

Tonnes

 

16720

10916

Liquids

KL

 

12500

11120

Plant Growth Nutrients

Tonnes

 

N.A.

489

 

 

 

 

 

 

Footnotes:

(i) Licensed Capacity – Delicensed vide Gazette Notification No. S.O.477 (E) dated 25.07.1991.

(ii) Figures in italics are in respect of the previous year.

(iii) Production figures are net of free issues, free replacements made against breakage, time expiry stocks, sample issues and captive consumption.

(iv) Production includes quantities manufactured at sub-contracting plants. Installed capacity represents Company’s in-house facilities.

(v) N.A. = Not Applicable.

 

GENERAL INFORMATION

 

No. of Employees :

Approximately 846 (As on 31.03.2010)

 

 

Bankers :

v      State Bank of India, Madame Cama Road, Mumbai 400 021, Maharashtra, India

v      Union Bank of India, India

v      Deutsche Bank

v      Citibank N.A.

v      Credit Agricole Indosuez

v      Corporation Bank, India

v      BNP Paribas

v      HDFC Bank Limited

v      IDBI Bank Limited

v      Axis Bank Limited

v      ICICI Bank Limited

v      Oriental Bank of Commerce

v      UCO Bank

v      United Western Bank Limited

v      Kotak Mahindra Bank Limited

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Loans from Banks :

 

 

Bank overdrafts and temporary loans

16.085

245.459

Loans from entities other than Banks and Financial Institutions

(Note : Amount repayable within one year in respect of loans other than bank overdrafts Rs.0.033 million; Previous Year Rs.2.617 millions)

0.033

2.650

Total

16.118

248.109

 

Notes:

 

1. The charge in favour of the Company’s bankers by way of hypothecation of stocks and receivables has been created to secure facilities granted by the bankers in the normal course of business including guarantees executed, bank overdrafts and temporary loans.

 

2. Secured Loans :-

a. Bank overdrafts and temporary loans have been secured by a first charge by way of hypothecation of stocks and receivables.

b. Loans from others on account of purchase of vehicles have been secured by way of hypothecation of vehicles.

 

3. The Company has procured certain equipments under a non-cancellable operating lease which has expired last year. There are no future lease rentals payable by the Company against the operating lease arrangements as at the year end. Lease rent charged to Profit and Loss Account during the year is Rs. Nil (Previous Year Rs. 23.447 millions).

 

Premises are taken by the Company on operating leases that are cancellable.

 

The Company has acquired certain vehicles under hire purchase arrangements. These arrangements are non-cancellable.

 

The fair value of such assets aggregates Rs.40.610 millions (Previous Year Rs.47.626 millions). The total minimum lease payments (MLP) in respect thereof and present value of future lease payments, discounted at the interest rates implicit in the lease

are as follows:

 

Due

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

 

Principal

Interest

Total

Principal

Interest

Total

Within 1 Year

0.033

0.001

0.034

2.617

0.079

2.696

Over 1 year but less than 5 years

--

--

--

0.033

0.001

0.034

 

 

The legal title, in the said vehicle remains with the Company. The hire purchase arrangements provide for revision of hire purchase installments in the event of changes in taxes, if any, leviable on hire purchase installments.

 

The terms of hire purchases do not contain any exceptional/restrictive covenants.

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Short Term Loan From Banks

0.000

500.000

Other Loans and advances

14.555

16.946

Payable under Sales Tax Deferral Scheme

(Note : Amount repayable within one year Rs.2.167 millions; Previous Year Rs.3.521 million)

50.452

40.453

Total

65.007

557.399

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

 

 

Solicitors and Advocates:

Crawford Bayley and Company

 

 

Membership :

Confederation of Indian Industry

 

 

Promoters :

v      Tata Tea Limited – up to 18/08/2009

v      Tata Sons Limited – up to 18/08/2009

v      Tata Chemicals Limited

v      Tata Investment Corporation Limited

v      Ewart Investments Limited

 

 

Holding Company :

Tata Chemicals Limited on and from 09/11/2009

 

 

Subsidiary Companies :

v      Rallis Australasia Pty. Limited

v      Rallis Chemistry Exports Limited as and from 07/07/2009

 

 

CAPITAL STRUCTURE

 

After 15.06.2010

 

Authorised Capital : Rs.2000.000 millions

 

Issued, Subscribed & Paid-up Capital : Rs.194.469 millions

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000000

Equity Shares

Rs.10/- each

Rs.500.000 millions

150000000

Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.1500.000 millions

 

Total

 

Rs.2000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

12964593

Equity Shares 

Rs.10/- each

Rs.129.646 millions

 

Add: Amount paid-up on forfeited shares

 

Rs.0.002 million

 

Total

 

Rs.129.648 millions

 

Notes:

 

(1) Of the above equity shares, 2,604,140 shares of Rs.10/- each were allotted as fully paid-up pursuant to contracts without payment being received in cash and 1,144,700 shares of Rs. 10/- each were issued as fully paid up Bonus Shares by capitalisation from General Reserve.

 

(2) Of the above issued and subscribed capital, 6,489,441 equity shares (including 980,000 equity shares issued by the Company on a preferential basis on 9th November, 2009) are held by Tata Chemicals Limited (TCL). Consequently, TCL has become the holding company with effect from 9th November’ 2009

 

(3) 88,000,000 7.5% Cumulative Redeemable Preference Shares of Rs.10/- each, of an aggregate value of Rs.880.000 millions were allotted on a “Private Placement” basis on 3rd February, 2004 and were redeemed on 3rd August, 2009.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2011

(Approximately)

Sales Turnover

 

 

9700.000

 

Expected Sales (2011-2012): Rs.10000.000 millions

 

The above information has been parted by Mr. Soumen Mitra (Chief Financial Officer).

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

129.648

999.848

999.848

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4098.273

2486.921

2075.543

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

4227.921

3486.769

3075.391

LOAN FUNDS

 

 

 

1] Secured Loans

16.118

248.109

373.531

2] Unsecured Loans

65.007

557.399

65.392

TOTAL BORROWING

81.125

805.508

438.923

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

4309.046

4292.277

3514.314

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1527.468

1585.883

1346.272

Capital work-in-progress at cost, including capital advances

1120.291

290.705

132.470

 

 

 

 

INVESTMENT

1402.832

1361.568

555.118

DEFERREX TAX ASSETS

53.477

101.580

132.280

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1482.485

1472.722

1454.539

 

Sundry Debtors
755.055

1143.656

1011.640

 

Cash & Bank Balances
111.727

71.519

75.304

 

Other Current Assets
14.591

11.259

7.926

 

Loans & Advances
881.123

773.574

793.688

Total Current Assets
3244.981

3472.730

3343.097

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

2058.076

1642.804

1037.065

 

Other Current Liabilities
536.476

308.339

372.482

 

Provisions
445.451

640.297

592.651

Total Current Liabilities
3040.003

2591.440

2002.198

Net Current Assets
204.978

881.290

1340.899

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

71.251

7.275

 

 

 

 

TOTAL

4309.046

4292.277

3514.314

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

8751.336

8328.452

6710.743

 

 

Other Income

288.194

226.238

1116.330

 

 

TOTAL                                     (A)

9039.530

8554.690

7827.073

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials Consumed

4515.784

4486.735

3439.697

 

 

Purchase of Finished Goods

618.103

597.786

724.023

 

 

(Increase)/Decrease in Closing Stock of Finished Goods and Work in Process

(100.014)

(28.840)

(79.278)

 

 

Operating Expenses

2273.895

2176.871

2039.297

 

 

TOTAL                                     (B)

7307.768

7232.552

6123.739

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

1731.762

1322.138

1703.334

 

 

 

 

 

Less

INTEREST                                                         (D)

26.716

32.558

40.885

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

1705.046

1289.580

1662.449

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

183.103

229.493

200.704

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1521.943

1060.087

1461.745

 

 

 

 

 

Less

TAX                                                                  (H)

511.550

347.150

209.806

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1010.393

712.937

1251.939

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1832.081

1491.997

666.811

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to/(from):

Capital Redemption Reserve

 

880.000

 

0.000

 

0.000

 

 

Preference Dividend

22.422

66.000

66.000

 

 

Distribution Tax on Preference Dividend

3.811

11.217

11.217

 

 

Interim Dividend on Equity Shares

95.877

0.000

0.000

 

 

Distribution Tax on Interim Dividend

16.294

0.000

0.000

 

 

Proposed Equity Dividend

129.646

191.753

191.753

 

 

Distribution Tax on Proposed Equity Dividend

21.533

32.589

32.589

 

 

General Reserve

101.039

71.294

125.194

 

BALANCE CARRIED TO THE B/S

1571.852

1832.081

1491.997

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods on F.O.B. Basis

1904.084

2890.581

1590.161

 

 

Commission

3.050

10.501

11.443

 

 

Freight, Insurance and Other Matters

17.486

46.329

37.639

 

TOTAL EARNINGS

1924.620

2947.411

1639.243

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2242.790

2427.788

1490.249

 

 

Components, stores and spare parts

0.276

2.830

1.036

 

 

Capital Goods

6.426

22.902

5.889

 

 

Trading Goods

0.000

161.583

108.103

 

TOTAL IMPORTS

2249.492

2615.103

1605.277

 

 

 

 

 

 

Earnings Per Share (Rs.)

79.57

53.04

98.02

 

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

2027.900

3679.900

2713.500

2320.900

Total Expenditure

1801.400

2797.200

2201.400

1970.300

PBIDT (Excl OI)

226.500

882.700

512.100

350.600

Other Income

16.400

11.000

21.900

4.700

Operating Profit

242.900

893.700

534.000

355.300

Interest

(9.000)

(0.600)

10.500

17.700

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

251.900

894.300

523.500

337.600

Depreciation

35.800

39.600

43.700

52.500

Profit Before Tax

216.100

854.600

479.800

285.200

Tax

67.700

267.600

142.900

95.400

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

148.400

587.000

336.900

189.800

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

148.400

587.000

336.900

189.800

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
11.18

12.39

15.99

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
17.39

12.73

21.78

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
31.89

20.96

31.17

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.36

0.30

0.48

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.74

0.97

0.79

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.07

1.34

1.67

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

 

 

 

- Dues to Micro Small and Medium Enterprises

41.569

12.785

55.760

- Other Creditors

2016.507

1630.019

981.305

 

2058.076

1642.804

1037.065

 

HISTORY:

 

Subject was incorporated in the year 1948. Rallis India, the successor of Rallis Brothers and a member of Tata Group is engaged in the business of manufacture and Trading of Pesticides, Fertilisers and Finechemicals. The Company's Agribusiness division is the distributor of Pesticides, fertilisers, micro-nutrients, seeds, animal feed and other agro inputs. Rallis is the second largest pesticide company in the country with a market share of 13%. The company discontinued marketing of Monsanto seeds during the year 2001-02. And the company is now looking at national and international marketing alliances, including possible tie-ups in the area of bio-technology. The company has commenced production of a range of ethylene oxide condensates based surfactants, which found captive use in its agrochemical formulations during 1999-2000. This help the company to reduce the cost. During 2000-2001, the company established seed processing facilities at Dhar (MP) and Patancheru, near Hyderabad and research infrastructure, quality control and storage facility at Patancheru. The Rallis Agro Research Centre, based in Bangalore, leads in toxicology and entomology research. Its facilities and research practices (GLP) are recognised by Bundesgesundheitsammt (BGA), Germany. The Fine Chemicals division of the company operates two factories both in Tamilnadu at Ootacamund and Cuddalore. The company has suspended the manufacturing activity at Cuddalore plant as the third party manufacturing offers a cheaper alternative. Rallis is the leading producer and distributor of agro-based tanning materials from a variety of forest products. During 2004, the company sold out its Gelatin business of the Fine Chemicals Division to Sterling Biotech Limited Rallis is undertaking restructuring of its business which includes consolidation, merger and selloff. First step in this regard was taken by Rallis is merger of its 5 subsidiaries viz Ralchem Limited, Rallis Finance and Investments Co Limited, Rallis Hybrid Seeds Limited, Rallis Farm Management Services Limited and Sankhya Garments Limited with itself. The petitions has been filed and the company awaiting final hearing by the court. It has also filed a petition for merging sixth subsidiary viz Siris India Limited with itself. During 2003-04, the Company received the approval from the court for the merger of six subsidiaries with itself. The Pharmaceutical business of Rallis, which engaged in marketing of household remedies and manufacturing of basic drugs was sold to Shreya Life Sciences Private Limited a member of Russia based pharma marketing and distribution company for Rs.490.000 millions. And the transfer of business is completed effective June 30, 2001. The company has also completed the sale of its Andheri property to Orchid Print India Limited, a wholly owned subsidiary of Tata Sons Limited during the year 2001-02. Rallis has discontinued the distribution of bulk fertilizers and the arrangement with Tata Chemicals came to an end from 1st March, 2003. It is also shifting its focus from a seeds distributor to become a sourcing and branding company with focussed R and D. During 2005, the company transferred its Knowledge Services Business which includes the Research and Development Centre at Bangalore, as a going concern to Advinus Therapeutics Private Limited with effect from 1st April 2005 for a consideration of Rs.260.000 millions. In the year 2005, the company increased its installed capacity of Pesticides (Solids) by 920 Tonnes. With this expansion, the total installed capacity of Pesticides (Solids) has increased upto 22825 Tonnes. In 2006, The company has been established new Development Center at Patancheru. All Research and development, including NMITLI and NPDL, is being carried out at this new location. All the regulatory studies required for obtaining the registrations are being outsoured through Advinus Therapeutics Private Limited and other government and private institutions. The company has started the sourcing and markeitng of Bt Cotton Seeds. An Alliance with Nuziveedu Seed Company, a Major Player in hybrid and Bt Cotton seed market, has been estahlished for purposes. In 2007, The company has incorporated a subsidiary in Australia viz. Rallis Australasia Pty Limited, in order to enhance its presence in Australia. The company has successfully launched three new products in the year viz. Nova, Applaud and Taqat. Applaud has been a great success in the year, wherein the company gained a phenomenal response from paddy growers. The first year of Bt cotton seed marketing has been rewarding and valuable experience gained, which will support expansion of this activity in the coming year. Preparation to expand into marketing of seeds in the rice and vegetable markets has been initiated.

 

COMPANY PERFORMANCE
 
The Company's profit from operations on a consolidated basis, increased  to Rs.1640.400 millions during the year, as compared to Rs.1195.300 millions in  the previous year, a growth of 37% over the last year. The Company earned a net profit of Rs.1014.900 millions, as against a net profit of Rs.720.200 millions in the previous year on a consolidated basis.
 
OPERATIONS
 
Crop Protection Chemicals
 
The  industry  experienced  a  tough period during the  year  due  to  weak monsoons,  both in terms of geographic and temporal spread. Overall,  there was  a  shortage of 23% rains as compared to normal, the  deficiency  being more pronounced in the northern and western parts of India, where the rains were short by 36% as compared to normal. This led to a drastic fall in  the cultivated area of major crops, particularly that of paddy. Severe moisture stress  has  resulted in reduced yields in most crops. Late  season  floods during August, though, has resulted in replenishment of reservoirs and thus led  to better prospects of late sown and long duration crops  like  pulses and rabi crops.
 
The  Domestic  Formulation Business registered a growth of 21%  during  the year  over  the  previous year despite the poor  first  season.  A  planned approach  with  contingencies  in place in all the regions  has  helped  them achieve this growth. Sustained activities in paddy, where the Company  has a strong presence and aggressive planning and implementation in crops  like pulses,  cotton,  soya  and chilli, resulted in improving  our  volumes  of Contaf, Contaf Plus, Applaud and Takumi. Ergon, a new block buster  product with yield enhancement and fungicidal benefits has become a big success  in all  the  markets in which it has been launched. The  relationship  building activities  that  they have embarked on in the form of Rallis  Kisan  Kutumba (RKK) and Bhagidari Sabhas have taken new strides this year, with many more value  adding  activities  initiated. Coverage  of  customers  under  these activities  has  also gone up manifold. The RKK today services  over  three lakh farmers.
 
The International Business Division registered a decrease of 34% in  sales, as  compared  to  2008-09.  The drop in sales was  due  to  high  level  of inventory  in key markets like USA and Latin America and also a sharp  drop in  agrochemical prices compared to 2008-09. Adverse weather conditions  in Africa and Australia also contributed to the overall decrease in sales  The International Business comprised 22% of the total revenues of the Company.
 
The  Domestic  Institutional  Business continued with its  sales  to  major customers  and  products during the year and has recorded a growth  of  31% over the last year. 
 
Seeds and Plant Growth Nutrients 
 
The  Company has progressed its seeds business through distribution of  Bt II Cotton, Hybrid Paddy and Hybrid Maize seeds.
 
During  the coming year, the Company plans to improve its position  in  the hybrid paddy and hybrid maize portfolio.
 
In the Plant Growth Nutrient segment, the Company's initiative of  product rationalization  and focusing on high value creating products  has  yielded good  results.  The  performance  of the  Plant  Growth  Nutrient  business improved  during  the year. The Company launched RALLIZYME and  RALLI  GOLD addressing  the  growing demand for improving plant health and  quality  of produce.   RALLI  GOLD  was  extremely  well  received  by  farmers  as   a differentiated and premium product in the category.
 
Leather Chemicals
 
The Company discontinued its Leather Chemicals operations during the year.
 
RESEARCH AND DEVELOPMENT
 
There  was  continued  progress  in  the  NMITLI  (New  Millennium   Indian Technology  Leadership  Initiative)  project.  Four  lead  molecules   have exhibited bioactivity on crop diseases and are being evaluated under  field conditions  for further development. Provisional patents for jointly  owned patents, have been granted for India, for five NMITLI molecules.
 
Research and Development efforts are focused on developing new formulations for  better efficacy, improved value for the farmer  including  combination products   and  facile  handling  and  delivery  and  sustainable   product solutions.  Number  of  new formulations and combinations  are  at  various stages  of  development.  A  number  of  registration  dossiers  have  been submitted during the year.
 
ADDITIONAL MANUFACTURING FACILITY
 
The  Company's plans to set up additional manufacturing facilities  are  on track. Work is progressing satisfactorily at the new facility at the  PCPIR (Petroleum,  Chemicals  and Petrochemical Investment Region), at  Dahej  in Gujarat and the Company expects to commence commercial production from this facility  by June 2010. The Dahej plant will be a  multi-purpose  technical manufacturing facility for a number of crop protection products.
 
FINANCE
 
During  the year, the Company allotted 9,80,000 Equity Shares of  Rs.10/- each, at a premium of Rs.898.51 per share on a preferential basis to  Tata Chemicals  Limited,  in accordance with the provisions of  SEBI  (Issue  of Capital  and Disclosure Requirements) Regulations, 2009. Consequently,  the Company has become a subsidiary of Tata Chemicals Limited, with effect from 9th November, 2009.
 
During  the year, the Company has redeemed the 7.5%  Cumulative  Redeemable Preference  Shares of Rs.10/- each, aggregating to Rs.880.000 millions,  on  3rd August,  2009. As required under the Companies Act, an amount equal to  the nominal  amount  of  the  shares redeemed, i.e.  Rs.880.000 millions has  been transferred to the Capital Redemption Reserve Account.
 
The  Board  of the Company has, at its Meeting held on 22nd  April,  2010, recommended,  subject  to shareholders' approval, a Bonus issue  of  equity shares  in  the ratio of one equity share of Rs.10/- each  for  every  two equity shares held in the Company, as on the Record Date to be fixed by the Board for this purpose.
 
DIRECTORS
 
Mr. R. Mukundan has been appointed as Additional Director of  the  Company with  effect  from  3rd  December, 2009. Pursuant to  Section  260  of  the Companies  Act, 1956 and Article 116 of the Articles of Association of  the 
Company, Mr. Mukundan vacates office and is eligible for appointment. 
 
Dr. V. S. Sohoni, Director of the Company, stepped down from the Board with effect  from  22nd  March, 2010, due to  certain  unavoidable  commitments. However,  he has subsequently expressed his ability to rejoin the Board  of the Company. The Board of Directors has, pursuant to Section 260 of the Act and  Article 116 of the Articles of Association of the  Company,  appointed Dr.  Sohoni  as Additional Director of the Company with  effect  from  22nd April,  2010.  As such, he holds office as Director upto the date  of  this Annual General Meeting and is eligible for appointment.
 
Dr.  Yoginder  K. Alagh has been appointed as Additional  Director  of  the Company  with effect from 22nd April, 2010. Pursuant to Section 260 of  the Companies  Act, 1956 and Article 116 of the Articles of Association of  the Company, Dr. Alagh vacates office and is eligible for appointment.
 
In  accordance  with Article 112(2) of the Articles of Association  of  the Company, Mr. Prakash R. Rastogi, Mr. Bharat Vasani and Mr. H. R. Khusrokhan retire and are eligible for re-appointment.

 

Future Plan of Action:
 
The  Company's  initiative  of New Product Development  (NPD)  process  had identified  several new products to be developed during the next 10  years. Several  products are at various stages of development.  Improvement  plans for existing products are also underway with an objective of cost reduction and being competitive in the market.

 

MANAGEMENT DISCUSSION AND ANALYSIS
 
INDUSTRY STRUCTURE AND DEVELOPMENTS
 
Globally the crop protection industry did not have a good year in 2009. The overall  global  market  dropped by 6.5%, estimated to come  down  to  37.8 Billion  USD. This, after an excellent year in 2008, when the industry  had grown  by  over 21%. Most of the global corporations registered a  drop  in their  sales  during the year. In terms of markets, Europe  had  the  major drop, followed by NAFTA and LATAM.
 
The  global economic crisis impacted many of the global markets.  This  was further  fueled by a sharp drop in Glyphosate and  Organophosphate  prices. The high priced stocks at the beginning of 2009 led to a hit in the profits of  several enterprises. In certain countries, access to credit due to  the global  economic crises curbed the ability of the farmers and  distributors to  purchase the product. This had the impact of the entire chain  delaying their purchases closer to consumption.
 
The Indian Pesticide industry, however, is estimated to have grown by about  10%.  During the year, the Kharif season was severely hit  due to  poor  monsoon. Paddy acreage and yield have been impacted.  Cotton  was relatively  pest free. Pulses, particularly red gram saw a higher usage  of new  chemistry insecticides. Rabi season was characterized by low pest  and disease  occurrence in key crops, especially paddy. Lower water  levels  in Godavari  basin  led to an unprecedented drop in acreages  under  paddy  in Andhra Pradesh during Rabi. Overall, fungicides have grown at a faster rate propelled  by  higher usage of new molecules in grape, chilli  and  potato. Herbicides category continued their growth path.
 
Area under key crops remained lower than last year in both Kharif and Rabi. Potato  crop has seen an increased acreage due to encouraging economics  in the  last  season. In cotton, BT II is estimated to take 70% of  the  total acreage under BT cotton. BPH (Brown Plant Hopper) incidence has been low in both  the  seasons  all  across the country.  Use  of  Buprofezin  remained stagnant.  Chinese  imports  have  put pressure  on  the  margins  in  this category.  Blast incidence has spread to unconventional areas  like  north, while incidence in Kharif has increased in the traditional belts.
 
Downy Mildew incidence has been severe in grape and resulted in heavy usage of new type of fungicides (new chemistry). Potato late blight incidence has been very low leading to low usage of fungicides.
 
Prices  of  all  the  agricultural commodities  in  India  have  been  very remunerative and have encouraged the farmers to invest in crop  protection. Globally, the average crop prices (wheat, rice, maize, cotton) during  2009 came down.
 
Rallis' overall performance
 
The  total consolidated revenues at Rs.9370.000 millions, registered a growth  of 3% during the financial year 2009-10. The Company's profit from  operations during  the  year  on a consolidated basis, at Rs.1640.400 millions,  is  the highest operational profit ever for the Company. This is a growth of 37% as compared  to the previous year's operational profit of Rs.1195.300 millions. The  net profit, at Rs.1014.900 millions, crossed the Rs.1000.000 millions mark  for the  first time. The net profit was Rs.720.200 millions in the previous  year, on a consolidated basis.
 
During  the  year, the Company focused on improving  the  working  capital efficiency  as  a key focus activity of DISHA. As a result,  the  net  cash generated from operating activities was Rs.2151.500 millions during the  year, another highest in the history of the organization.
 
REVIEW OF OPERATIONS
 
Agro Inputs
 
Crop Protection Chemicals:
 
Domestic formulations Business:
 
The  Domestic  Formulation  Business registered a growth of  21%  over  the previous year, driven by robust performance of the key brands. The focus on branding and market development has been sustained, leading to a three-fold increase in sale of brands like Takumi. Renewed focus on traditional brands like  Asataf  has  led to the Company regaining the  lost  ground  in  the category.  The  Company has launched Ergon, a fungicide  developed  by  the Company's R and D. Ergon has been accepted very well by the market and is going to be one of the key growth areas for the Company in the years to come.
 
In  line with the core competence of the Company viz.,  customer  intimacy and  relationships,  they  have taken up several new  initiatives  under  the Rallis   Kisan  Kutumba  (RKK)  to  further  foster  and   strengthen   the relationship  with  the  customers.  Focus  Group  Discussions  are   being extensively  used  as  the key listening mechanism  to  identify  the  fast changing needs and expectations of the farmers. Farmer help lines have been strengthened  and have become an important tool in servicing  the  farmers. The  Company  has launched a news letter by the name 'Unnat  Kisan'  which brings  information  on  latest  developments  in  agriculture  and  timely information  on  farming practices to the farmers' door steps  in  his  own language.
 
Bhagidari Sabhas are being organized in all the regions and have become  an important platform for capturing the channel partner voice and building and enduring relationship with the farmers.
 
The Company has started a new initiative called PRERNA, where farmers from one  area are taken to another area where the same crop is cultivated  with better  practices.  This  helps the farmers see and learn  better  ways  of farming through their peers and results in improved productivity.
 
The  MOPU (More Pulses) programmes started by the Company to  improve  the productivity  of  pulses in India has started giving good  results  in  the pilot  areas of Pudukkottai and Gadag and they intend to spread this to  more areas in the coming season.
 
Institutional Business:
 
The   Domestic  Institutional  Business  consisting  of  Technicals,   Bulk Formulations, Seed Treatment Chemicals and Household Products, has grown by 31%  as compared to the previous year. The Domestic Institutional  Business continued with its sales to major customers and products during the year.
 
The   Company   focused  on  strengthening  its   relationship   with   key institutional  customers and retaining its presence in the major  products. Suitable  co-marketing  arrangements put in place helped  the  Company  to sustain market presence in key areas.
 
International Business:
 
The International Business Division registered a decrease of 34% in  sales, as  compared  to the sales during 2008-09. It comprised 22%  of  the  total revenues  of  the  Company.  The drop in sales was due  to  high  level  of inventory  in key markets like USA and Latin America and also a sharp  drop in  agrochemical prices compared to 2008-09. Adverse weather conditions  in Africa and Australia also contributed to the overall decrease in sales. The Asian  and Middle East region performed relatively better posting a  growth of  about 18% over the last year. Demand stabilization was evident only  in the  last  quarter of 2009-10, as the marketing channels  opened  up  after depletion of their high priced inventory from 2008-09.
 
During the year 2009-10, the International Business Division continued  its focus  on  sustainable  business for the long term  through  exploring  new contract   manufacturing   opportunities  and  increasing   the   base   of registration  led  sales. In the course of the year, the Company  has  also built  up its registration data support as most international markets  have moved towards stringent regulations.
 
Seeds:
 
The  Company  has continued its seeds business through distribution  of  Bt Cotton, Hybrid paddy and Hybridmaize seeds. Poor monsoon resulted in lower than expected volumes of Hybrid Paddy business.
 
Plant Growth Nutrients:
 
The Company is consolidating its Plant Growth Nutrient (PGN) business  with focus  on  launch  of key products, viz. RALLI GOLD  and  RALLIZYME.  As  a result,  performance  of the PGN business improved during the year  with  a significant improvement in profitability.
 
OPPORTUNITIES AND OUTLOOK
 
The  fundamentals of the Agriculture sector continue to be robust and  will drive  growth  in  the years to come. With the  economy  showing  signs  of recovery,  demand for food, fodder and fuel will further go up  and  should lead   to  robust  growth  in  agriculture.  The  encouraging   prices   of agricultural  commodities  are  expected  to  continue  and  will  lead  to increased  investment  by  the farmers to protect his crop as  well  as  to improve his productivity. Newgeneration products like Ergon, which enhances yield  and controls diseases and Ralligold, which is a  biological  product which  improves  growth  and crop yield will drive  business  growth.  With labour  shortage increasing in rural areas, farmers are looking for  labour saving options and this will lead to a higher demand for herbicides in  the coming days.
 
The  enterprise value creation programme DISHA (Drive Innovative  Solutions with hyper Achievements) which aims at re-engineering various processes and activities  across  the  Company to generate value  and  the  International business  growth programme APOLLO are also expected to contribute  well  to the  overall  growth  agenda of the organization. The  EAGLE  (Expansion  and Aggressive  Growth  through Leadership and Excellence) initiative,  which  is intended  to improve the market share and propel the Company to  leadership position,  has taken off well in the last year. This is being rolled out  to all  regions  in  the coming year and they expect to  see  results  from  the initiative by the end of the coming year.

 

INITIATIVES TAKEN DURING 2009-10
 
The  Company  has, during the year, launched an  initiative  called  EAGLE (Expansion  and  Aggressive  Growth through Leadership  and  Excellence).  This programme  is intended to enhance the market share of the Company and  take it  to leadership position. Launched in a limited way during the  year,  it will  be  extended to all regions of the country in the  coming  year.  The Company expects to see results from the initiative by the end of the coming year.
 
The  enterprise  value  creation  programme  DISHA  and  the  International Business  growth  programme APOLLO are expected to continue  to  contribute well to the overall growth of the Company.
 
BUSINESS EXCELLENCE
 
The Company strengthened its position in the 550+ band as Emerging Industry Leader   as  per  the  TBEM  (Tata  Business  Excellence  Model)   External Assessment.  TBEM  2009  assessment score for Rallis  was  577,  indicating further  improvement of 24 points over the previous score and is  preparing this year to aim for the JRDQV award.
 
The  Company's focus on process orientation by making EPM a way of  day  to day  work  has  strengthened its customer driven  process  approach.  LASER workshops are continuing in all factories by in-house teams and focus  area is to improve the work place conditions. 224 people have been given the PBE (Practicing  Business Excellence) training by the Business Excellence  team and another 100 people will be covered by May 2010.

 

AUDITED (STANDALONE) FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2011

(Rs. in Millions)

Particulars

Standalone for the year ended 31.03.2011

 

 

1. a) Net Sales / Income from operations

10467.200

b) Other Income

275.000

 

 

Total Income

10742.200

 

 

2. Expenditure

 

a) (increase)/decrease in stock in trade and Work in Progress

(395.000)

b) Consumption of raw material

5780.500

c) Purchase of Traded goods

897.000

d) Employees Cost

695.800

e) Depreciation

171.600

I) Other expenses

1792.000

Total Expenditure

8941.900

 

 

3. Profit from Operations before Other Income, Interest and Exceptional Items (1-2)

1800.300

4. Other Income

54.000

5. Profit before Interest and Exceptional Items (3+4)

1854.300

6. Interest

18.600

7. Profit after Interest and before Exceptional Items (5-6)

1835.700

8. Exceptional items

 

 - Accelerated depreciation / amortization

--

 - Ex-gratia and amortization of Voluntary Retirement Scheme cost

--

9. Profit from Ordinary Activities before tax (7-8)

1835.700

10. Tax expenses

 

 - Current tax

507.000

 - Taxes of earlier years

(21.200)

 - Deferred Tax

87.800

Total Tax Expenses

573.600

11. Net Profit from Ordinary Activities after tax (9-10)

1262.100

12. Extraordinary Items (net of tax expense Rs. Nil)

--

13. Minority Interest

--

14. Net Profit from Ordinary Activities after tax and Minority Interest (11-12-13) 

1262.100

15. Paid -up equity share capital (Face value of share Rs.10/-)

194.500

16. Reserves (Excluding Revaluation Reserves)

4839.100

17. Earning Per Share (EPS)

 

a) Basic and diluted EPS before Extra ordinary items for the period, for the year to date and for the previous year (Rs.)

64.90

b) Basic and diluted EPS after Extra ordinary items for the period, for the year to date and for the previous year (Rs.)

64.90

18. Debt Service Coverage Ratio

95.56

19. Interest Service Coverage Ratio

108.92

20. Public Shareholding

 

- Number of Shares

9595360

- Percentage of Shareholding

49.34%

21. Promoters and promoter group Shareholding

 

a) Pledged Encumbered

 

- Number of Shares

Nil

- Percentage of Shares (as a % of the total shareholding of the Promoters ant promoter group)

NA

- Percentage of Shares (as a % of the total share Capital of the Company)

NA

b) Non – Encumbered

 

- Number of Shares

9851529

- Percentage of Shares (as a % of the total shareholding of the Promoters ant promoter group)

100.00%

- Percentage of Shares (as a % of the total share Capital of the Company)

50.66%

 

Notes:

 

1. The Company’s business is seasonal in nature and the performance can be impacted by weather conditions.

 

2. The Company has one reportable business segment viz. “Agri-Inputs”.

 

3. There was no shareholder complaint pending at the beginning of the quarter. One complaint was received during the quarter, which was resolved. No complaint is pending as at 31st March, 2011.

 

4. On 10th of June, 2010, the Company has allotted 6,482,296 bonus equity shares of Rs.10 each, fully paid up, in the ratio of 1 equity share for every 2 held. The earnings per share [“EPS”] data for all the periods disclosed above have been restated in accordance with the provisions of Accounting Standard (AS) 20 on “Earnings Per Share”.

 

5. The Company acquired majority stake in Metahelix Life Sciences Private Limited on 30th December, 2010 and the acquired company’s consolidated financial results for the quarter ended 31st March, 2011 are included under column “Consolidated for the year ended 31st March, 2011”. Figures under columns “Consolidated” also include financial results of Company’s wholly owned subsidiaries, Rallis Australasia Pty limited and Rallis Chemistry Exports Limited

 

6. The Board recommended payment of a final dividend of Rs.11/- per share (110%) to the equity shareholders on the Ordinary (Equity) shares of the company. With this, the total dividend for the year (including interim dividend of Rs.9/- per share paid during the year) is Rs.20/- per share (200%) on the post bonus issue capital of the Company.

 

7. The Board approved, subject to requisite approvals being obtained by the Company, subdivision (stock-split) of each of the Ordinary (Equity) Shares of the face value of Rs.10 each fully paid up in the Equity Share Capital of the Company into 10 Ordinary (Equity) Shares of the face value of Re.1 each fully paid up.

 

8. Formula used for calculation of ratios are as below;

 

a) Debt Service Coverage Ratio Profit before Depreciation, Interest and Tax / (Interest + Principal repayment of long term loans)

b) Interest Service Coverage Ratio = Profit before Depreciation, Interest and Tax/ Interest

 

9. Figures for the previous years have been regrouped/ recast wherever necessary.

 

10. The above audited results were approved by the Audit Committee and taken on record at the Board Meeting held on 29th April, 2011.

 

CONTINGENT LIABILITIES:-

 

Particulars

31.03.2010

(Rs. in millions)

(a) Demand contested by the Company

 

– Sales tax

191.782

– Excise duty

37.877

– Customs Duty

14.410

– Income Tax

375.460

– Service tax

0.185

– Property cases

4.736

– Labour cases

15.671

– Other Cases

44.982

– Number of cases where amount is not quantifiable 31 Nos.

 

 

 

(b) Bills discounted

Nil

 

 

(c) Uncalled partly paid shares held as Investments

0.434

 

 

(d) The Company has given a guarantee to a bank against the borrowings of its subsidiary. As at 31st March, 2010, the amount outstanding in respect of the borrowing in the financial statements of the subsidiary amounts to Rs. Nil (AUD Nil)

 

(e) Other guarantees given to Government authorities for which the Company is contingently liable to Rs.0.200 million.

 

The Company does not expect any liability in respect of item (a), (b), (d) and (e) to devolve in respect of its exposure and therefore no provision has been made in respect thereof.

 

FIXED ASSETS:

 

Intangible Assets

v      Software

v      Goodwill

v      Studies for registration approvals

Tangible Assets

v      Freehold Land

v      Leasehold Land

v      Buildings

v      Plant and Machinery

v      Furniture, Fixtures

v      Office Equipments

v      Vehicles

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.44.93

UK Pound

1

Rs.72.92

Euro

1

Rs.64.34

 

 

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

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

70

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.