MIRA
INFORM REPORT
|
Report Date : |
07.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
SREE RAYALASEEMA ALKALIES AND ALLIED CHEMICALS LIMITED |
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Registered
Office : |
Gondiparla, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
24.06.1981 |
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Com. Reg. No.: |
01-003077 |
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Capital Investment
/ Paid-up Capital : |
Rs.864.184 Millions |
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CIN No.: [Company Identification
No.] |
L24110AP1981PLC003077 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacture of Caustic Soda and Allied Products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 8300000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office / Factory : |
Gondiparla, |
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Tel. No.: |
91-8518-280006/7/8 |
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Fax No.: |
91-8518-280098 |
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E-Mail : |
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Website : |
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Corporate Office : |
40-304, 2nd Floor, K J. Complex, Bhagyanagar, |
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Tel. No.: |
91-8518-289602/03/220164/228750 |
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Fax No.: |
91-8518-289602/03/220164/228750 |
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Administrative office : |
TGV Mansions II Floor, Opposite Institute of Engineers, #
6-2-1012 Khairatabad |
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Tel. No.: |
91-40-3313860 |
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Fax No.: |
91-40-3313875 |
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Branch Office : |
Located
At ·
Chennai ·
Bangalore ·
Mumbai ·
Delhi |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. T G Venkatesh |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. M P Murti |
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Designation : |
Director |
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Name : |
Mr. S K Ganguli |
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Designation : |
Nominee (IFCI) |
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Name : |
Mr. P N Vedanarayanan |
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Designation : |
Director |
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Name : |
Mr. G Krishna Murthy |
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Designation : |
Director |
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Name : |
Mr. O D Reddy |
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Designation : |
Director |
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Name : |
Mr. K Karunakar Rao |
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Designation : |
Executive Director (Finand Com) |
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Name : |
Mr. P. Sitaram |
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Designation : |
Nominee (IDBI) |
KEY EXECUTIVES
|
Name : |
Mr. V Radhakrishna Murthy |
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Designation : |
Company Secretary and Chief Financial Manager |
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Name : |
Mr. P Sitaram |
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Designation : |
Nominee (IDBI) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
862137 |
1.28 |
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|
27198521 |
40.30 |
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|
28060658 |
41.58 |
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Total shareholding
of Promoter and Promoter Group (A) |
28060658 |
41.58 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
37787 |
0.06 |
|
|
20379181 |
30.19 |
|
Insurance Companies |
615885 |
0.91 |
|
|
21032853 |
31.16 |
|
|
|
|
|
|
3261688 |
4.84 |
|
|
|
|
|
|
9236669 |
13.69 |
|
|
4813275 |
7.13 |
|
|
1085143 |
1.61 |
|
|
1085143 |
1.61 |
|
|
18399775 |
27.26 |
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Total Public shareholding
(B) |
39432628 |
58.42 |
|
Total (A)+(B) |
67493286 |
100.00 |
|
© Shares held by
Custodians and against which Depository Receipts have been issued |
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
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Total
(A)+(B)+(C) |
67493286 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacture of Caustic Soda and Allied Products. |
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Products: |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Actual
Production |
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Caustic Soda Lye/Flakes |
MTs |
103123 |
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Liquid Chlorine |
MTs |
72998 |
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Hydrochloric Acid |
MTs |
87968 |
|
Barium Sulphate |
MTs |
1108 |
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Hydrogen Gas (M3)
Saleable |
MTs |
3312553 |
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Bleach Liquor |
MTs |
12671 |
|
HCL Gas |
MTs |
2973 |
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Hydrogenated Castor Oil |
MTs |
4185 |
|
12 Hydroxy Stearic Acid |
MTs |
8157 |
|
Risinolic Acid |
MTs |
542 |
|
Caustic Potash Flakes/Lye |
MTs |
12904 |
|
Stearic Acid |
MTs |
8732 |
|
Soap Noodles |
MTs |
18292 |
|
Toilet Soaps |
MTs |
1045 |
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Refined Glycerine |
MTs |
4498 |
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Wind Power Generation |
KWH |
1955493 |
|
Power Generation at
Bellary |
KWH |
182101943 |
GENERAL INFORMATION
|
No. of Employees
: |
Not Available |
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Bankers : |
·
Indian bank ·
United bank of India ·
The South Indian Bank Limited ·
IDBI Bank Limited ·
Canbank Factors Limited ·
The Federal Bank Limited ·
ICICI Bank Limited |
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Facilities : |
Note: 1) The above Debentures
issued to IDBI are secured by first charge of all the Company's immovable
properties both present and future ranking paripassu with the mortgages and charges
created / to be created with other loans and further secured by first charge
by way of mortgage of Company's properties (save and except book debts and
assets exclusively charged / to be charged in favour of IDBI) including
movable machinery, machinery spares, tools and accessories present and future
subject to prior charge created and /or to be created in favour of Company's
Bankers on the Company's stock of raw materials as well as to Banks on semi-
finished and finished goods, consumable stores and such other movables as may
be agreed to by the Trustees for securing the borrowings for working capital
requirements in the ordinary course of business and further secured by pledge
of 804000 Nos. of APGPCL Equity shares of Rs.10/- each and guaranteed by the
Ex-Managing Director, Mr. T.G.Venkatesh. 2) The above series
"A" debentures issued to IFCI are secured in favour of their
Trustees by way of first charge on all immovable properties situated at
Bellary both present and future and further secured by way of first charge on
company's movable (save and except book-debts), including movable machinery,
machinery spares, tools and accessories; present and future, subject to prior
charge created and/or to be created in favour of company's bankers on the stock
of raw materials, semi finished goods, consumable stores and such other
movable, as may be agreed to by the trustees, for securing the borrowings for
working capital requirements in the ordinary course of business and further
guaranteed by Ex-Managing Director, Mr. T.G.Venkatesh. 3) The above series
"B&C" debentures issued to IFCI are secured in favour of their
Trustees by way of first charge on all immovable both present and future and
further secured by way of first charge on company's movable (save and except
book-debts), including movable machinery, machinery spares, tools and
accessories; present and future, subject to prior charges created and / or to
be created in favour of company's bankers on the stock of raw materials, semi
finished goods, consumable stores and such other movable, as may be agreed to
by the trustees, for securing the borrowings for working capital requirements
in the ordinary course of business and further guaranteed by Ex-Managing
Director, Mr. T.G.Venkatesh. 4) The above Term Loans
from Institutions [except the Term Loan amount of Rs.3933.74 lakhs from M/s
IFCI Ltd. secured by first exclusive charge on the building, plant and
machinery acquired under project schemes of Fatty Acid, Pottassium Hydroxide
/ and power plant at Bellary are secured by first charge on all the immovable
properties both present and future and further secured by first charge by way
of hypothecation of all movables (save and except book debts and inventories
including movable machineries, spares,t ools, accessories both at present and
future, subject to prior charges created/ to be created in favour of the
company's bankers as specified movables for working capital requirements) and
further Guaranteed by the Ex-Managing Director, Mr. T.G.Venkatesh. IFCI's Additional
Margin money for working capital loan outstanding of Rs.5312.500 Millions is
further secured by pledge of 536000 Nos. of APGPCL Equity shares of Rs.10/-
each. 5) The above Term loans
from Banks are secured by first charge on fixed assets of chloromethanes
Project and second pari passu charge on all immovable properties and
guaranteed by Ex-Managing Director, Mr. T.G.Venkatesh. 6) The above Working
Capital and Short Term Loans from Banks are secured by hypothecation of Raw
materials, stock in process, finished goods, stores and spares of the company
wherever situated and Book debts to the extent of sanctioned limits, and
further secured by second charge on all immovable properties and guaranteed
by the Ex-Managing Director, Mr. T.G.Venkatesh. And the Bill discounting
facility from Can Bank Factors Ltd., is secured by second charge on
respective fixed assets of the company ranking pari passu with charges
already created/ to be created by the Company and further guaranteed by the
Ex-Managing director, Mr. T.G.Venkatesh.
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Banking
Relations : |
-- |
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|
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Auditors : |
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|
Name : |
Brahmayya and Company Chartered Accountants |
|
Address: |
21/142-6, S.K.D. Colony Extension, Adoni – 518301, Andhra
Pradesh, India |
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|
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Associates : |
·
Sree Rayalaseema Hi-Strength Hypo
Limited ·
TGV Projects and Investments Private
Limited ·
Brilliant Bio Pharma Limited ·
Sree Maruthi Marine Industries
Limited ·
Sree Maurthi Agro Tech Limited ·
Gowri Gopal Hospitals Private Limited ·
Sree Rayalaseema Galaxy Projects
Private Limited ·
SRHHL Industries Limited ·
Roopa Industries Limited ·
S.K. Salts Private Limited ·
JSM International Limited ·
TGV Securities Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6,80,00,000 |
Equity Shares |
Rs.10/- each |
Rs.680.000 Millions |
|
1,90,00,000 |
Redeemable Preference
Shares |
Rs.10/- each |
Rs.190.000 Millions |
|
|
Total |
|
Rs.870.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
67493286 |
Equity Shares |
Rs.10/- each |
Rs.674.933
Millions |
|
18882332 |
Redeemable Preference
Shares |
Rs.10/- each |
Rs.188.823
Millions |
|
|
|
|
Rs.863.756 Millions |
Note:
(A) 1,88,82,332
Cumulative Redeemable Preference Shares of Rs.10/- each alloted on sub-division
and consolidation having a Coupon rate of 0.01% from April, 2002 redeemable
after 15 Years in 4 Quarterly instalments commencing from 1.04.2018.
(B) 1,88,82,331
Equity shares of Rs.10/- each issued on sub-division and consolidation.
(C) 2,86,10,955
Equity Shares of Rs.10/- each issued on preferential allotment to IDBI &
IFCI by Convertion of 15% of Rupee/Foreign Currency loans and Debentures.
(D) 2,00,00,000
Equity Shares of Rs.10/- each Share Warrants issued to Promoters group on
Preferential allotment.
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
67493286 |
Equity Shares |
Rs.10/- each |
Rs.674.933 Millions |
|
18882332 |
Cumulative Redeemable
Preference Shares |
Rs.10/- each |
Rs.188.823 Millions |
|
|
Add : Forfeited
Shares |
|
Rs.0.428 Million |
|
|
Total |
|
Rs.864.184
Millions |
Note:
(A) 1,88,82,332
Cumulative Redeemable Preference Shares of Rs.10/- each alloted on sub-division
and consolidation having a Coupon rate of 0.01% from April, 2002 redeemable
after 15 Years in 4 Quarterly instalments commencing from 1.04.2018.
(B) 1,88,82,331
Equity shares of Rs.10/- each issued on sub-division and consolidation.
(C) 2,86,10,955
Equity Shares of Rs.10/- each allotted on preferential allotment to IDBI &
IFCI by Convertion of 15% of Rupee/F.C.loans and Debentures.
(D) 1,45,80,000
Equity Shares of Rs.10/- each alloted on Preferential allotment to Promoters
group.
(E) 54,20,000
Equity Shares of Rs.10/- each alloted on 25.04.2006 to promoters group on
convertion of fully paid share warrants issued on preferential allotment.
ADD: Amount received on Forfeited Shares of
Original issue in 1995-96 (180086 Shares)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
864.184 |
864.184 |
864.184 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1208.573 |
1072.080 |
931.987 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2072.757 |
1936.264 |
1796.171 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1822.558 |
2222.744 |
2370.329 |
|
|
2] Unsecured Loans |
391.929 |
286.671 |
213.159 |
|
|
TOTAL BORROWING |
2214.487 |
2509.415 |
2583.488 |
|
|
DEFERRED TAX LIABILITIES |
662.712 |
587.091 |
483.174 |
|
|
|
|
|
|
|
|
TOTAL |
4949.956 |
5032.770 |
4862.833 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3795.547 |
4109.002 |
4023.194 |
|
|
Capital work-in-progress |
1029.721 |
234.441 |
256.363 |
|
|
|
|
|
|
|
|
INVESTMENT |
19.881 |
19.831 |
19.831 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
625.199
|
489.994 |
717.731 |
|
|
Sundry Debtors |
714.725
|
568.370
|
542.119 |
|
|
Cash & Bank Balances |
233.120
|
162.284
|
190.591 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
734.868
|
783.142
|
429.366 |
|
Total
Current Assets |
2307.912
|
2003.790
|
1879.807 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1819.372
|
1085.054
|
1085.184 |
|
|
Other Current Liabilities |
325.347
|
198.450
|
169.166 |
|
|
Provisions |
58.386
|
50.790
|
62.012 |
|
Total
Current Liabilities |
2203.105
|
1334.294
|
1316.362 |
|
|
Net Current Assets |
104.807
|
669.496
|
563.445 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4949.956 |
5032.770 |
4862.833 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|||
|
|
SALES |
|
|
|
|||
|
|
|
Income |
6947.324 |
5843.506 |
6799.850 |
||
|
|
|
Other Income |
126.397 |
339.145 |
117.022 |
||
|
|
|
TOTAL (A) |
7073.721 |
6182.651 |
6916.872 |
||
|
|
|
|
|
|
|||
|
Less |
EXPENSES |
|
|
|
|||
|
|
|
Consumption of Raw material |
3796.295 |
3206.794 |
3307.286 |
||
|
|
|
Employees Remuneration and benefits
|
243.495 |
216.924 |
211.910 |
||
|
|
|
Power and fuel cost |
1310.201 |
1036.840 |
1172.359 |
||
|
|
|
Consumption of Chemicals, packaging and Stores |
265.170 |
278.243 |
394.230 |
||
|
|
|
Other manufacturing expenses, administration and Selling expenses |
537.640 |
495.311 |
662.693 |
||
|
|
|
Expenses/(Income relating to earlier year |
4.013 |
2.151 |
4.370 |
||
|
|
|
Stock Adjustments |
(33.861) |
(18.864) |
(22.467) |
||
|
|
|
TOTAL (B) |
6122.953 |
5217.399 |
5730.381 |
||
|
|
|
|
|
|
|||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION & AMORTISATION (A-B) (C) |
950.768 |
965.252 |
1186.491 |
|||
|
|
|
|
|
|
|||
|
Less |
FINANCIAL
EXPENSES (D) |
334.089 |
341.885 |
341.459 |
|||
|
|
|
|
|
|
|||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
616.679 |
623.367 |
845.032 |
|||
|
|
|
|
|
|
|||
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
344.856 |
327.228 |
325.728 |
|||
|
|
|
|
|
|
|||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
271.823 |
296.139 |
519.304 |
|||
|
|
|
|
|
|
|||
|
Less |
TAX (H) |
135.330 |
156.000 |
282.247 |
|||
|
|
|
|
|
|
|||
|
|
PROFIT AFTER TAX
(G-H) (I) |
136.493 |
140.093 |
273.057 |
|||
|
|
|
|
|
|
|||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
286.126 |
246.033 |
122.976 |
|||
|
|
|
|
|
|
|||
|
Less |
APPROPRIATIONS |
|
|
|
|||
|
|
|
Transfer to debentures Redemption Reserve |
100.000 |
50.000 |
50.000 |
||
|
|
|
Transfer to General Reserve |
50.000 |
50.000 |
100.000 |
||
|
|
BALANCE CARRIED
TO THE B/S |
272.619 |
286.126 |
246.033 |
|||
|
|
|
|
|
|
|||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|||
|
|
|
Export Earnings |
838.083 |
555.032 |
1157.262 |
||
|
|
TOTAL EARNINGS |
838.083 |
555.032 |
1157.262 |
|||
|
|
|
|
|
|
|||
|
|
IMPORTS |
|
|
|
|||
|
|
|
Raw Materials |
512.811 |
463.288 |
850.964 |
||
|
|
|
Chemicals |
16.882 |
12.940 |
21.064 |
||
|
|
|
Components, Stores & Spares |
43.540 |
23.278 |
54.752 |
||
|
|
|
Capital Goods / Services |
222.529 |
75.022 |
249.225 |
||
|
|
TOTAL IMPORTS |
795.762 |
574.528 |
1176.005 |
|||
|
|
|
|
|
|
|||
|
|
Earnings Per
Share (Rs.) |
2.07 |
4.04 |
-- |
|||
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 (1st
Quarter) |
30.09.2011 (2nd
Quarter) |
31.12.2011 (3rd
Quarter) |
|
Net Sales |
|
2058.800 |
1774.300 |
2030.700 |
|
Total Expenditure |
|
1799.000 |
1533.800 |
1755.000 |
|
PBIDT (Excl OI) |
|
259.800 |
240.500 |
275.700 |
|
Other Income |
|
0.300 |
0.000 |
0.000 |
|
Operating Profit |
|
260.100 |
240.500 |
275.700 |
|
Interest |
|
81.200 |
78.700 |
97.900 |
|
Exceptional Items |
|
0.000 |
0.000 |
0.000 |
|
PBDT |
|
178.900 |
161.800 |
177.800 |
|
Depreciation |
|
86.200 |
88.900 |
94.100 |
|
Profit Before Tax |
|
92.700 |
72.900 |
83.700 |
|
Tax |
|
19.000 |
15.000 |
17.100 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
|
73.700 |
57.900 |
66.600 |
|
Extraordinary Items |
|
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
0.000 |
|
Net Profit |
|
73.700 |
57.900 |
66.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.93
|
2.27 |
3.95 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.91
|
5.07 |
7.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.45
|
4.84 |
8.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.15 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.13
|
1.99 |
2.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.05
|
1.50 |
1.43 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last two years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
Operations:
The turnover for the year was Rs. 7621.200 Millions as compared to Rs. 6300.800 Millions in the previous year. The increase in overall turnover is attributed to better performance of Caustic, Castor Oil, Fatty Acid divisions.
Division / Segment
Wise Operations:
The Caustic plant has produced 111516 MT of Caustic Soda as against 99452 MT for the previous year. As against net sales of Rs. 2117.500 Millions for previous year, the current year sales comes to Rs. 2492.400 Millions representing an increase of 18 %.
The Potassium plant has produced 12111 MT of Potassium Hydroxide as against 9041 MT for the previous year. As against net sales of Rs. 617.800 Millions for previous year, the current sales comes to Rs. 618.900 Millions representing marginal increase of 0.17 %.
The Castor oil plant yielded 13190 MT of oil processing as against 10231 MT for the previous year. As against net sales of Rs. 677.300 Millions for the previous year, the current year sales stood at Rs. 1230.300 Millions representing an increase of 82 %.
The Fatty acid plant has processed 25277 MT for the current year as against 23275 MT for the previous year. The net sales of this division has increased from Rs. 1192.900 Millions to Rs. 1597.300 Millions representing an increase of 34 %.
The Power plant at Bellary has billed 182.100 Millions KWH of electricity (including deemed generation) to Karnakata Power Transmission Corporation Limited (KPTCL) during the current year as against 1828 lacs KWH for the previous year.
As against sales to KPTCL (including deemed generation billing) of Rs. 1238.600 Millions for the previous year, the current year sales comes to Rs. 1037.500 Millions showing decrease of 16 %.
OUTLOOK FOR THE
CURRENT YEAR :
Profit for the Current year at Rs. 13649.300 Millions shows a marginal decrease of 2.5 % compared to previous year Profit of Rs. 140.093 Millions. Stiff market and recessionary conditions are the main reasons for over all decrease in performance.
MANAGEMENT DISCUSSION
AND ANALYSIS :
The Company is having mainly three Business Division namely:-
(1) Chemicals Division
(2) Oils and Fats Division
(3) Power Division
Division wise analysis of Industry Structure, Opportunity and Threats and Out Look are discussed hereunder for information of the members.
CHEMICALS DIVISION :
Under this division Caustic Soda, Pottasium Hydroxide, Chlorine, Hydrochloric Acid etc. are manufactured. Chlorine is produced as a joint product along with Caustic Soda and Pottasium Hydroxide. Caustic Soda is used in industrial products like paper, pulp, aluminium, pvc, pharmaceuticals etc, chlorine is used in water treatment, pigments, pulp, paper, textiles etc. and Hydrochloric Acid is used in pesticides, cleaning purposes of metal etc.
Caustic Soda is a basic chemical and is used in almost all manufacturing processes. The performance of alkalie industry is reflected in the performance of the industry in general and also country's GDP. The Chloro Alkalie industry being power intensive, any increase in power cost would affect its performance. The commercial disposal of chlorine is the main concern for any caustic unit. To overcome this, the Company is setting up Chloromethane project. The company has achieved financial closure as a step towards implementation of the project. Works relating to the Chloromethanes Project are under progress. Signs of recovery shown in general market is a good sign towards the optimistic future market. Unseasonal rains and cyclones have affected salt availability in the market and as a result the cost of main raw material has gone up.
OILS AND FATS
DIVISION :
Castor oil derivatives (comprising of Hydrogenated Castor Oil, 12 Hydroxy Stearic Acid and Recinolic Acid), Fatty Acids, Soap noodles, Glycerine and bathing / toilet soap forms part of this division. The raw materials namely Castor Oil, various industrial vegetable oils and crude glycerine are highly volatile in their prices. India is a leading country in exporting castor oil derivatives with abundant availability of raw material. Being a composite plant, many inputs like caustic soda, steam, Hydrogen are available internally and the same is main strength and an opportunity for the company. During the year the market for both fatty acids and castor oil is encouraging and it is hoped that the same will prevail in future. Frequent fluctuations in Castor Oil prices is the main concern for this division. The forecast of normal monsoon is also a good sign for better performance of this division in future.
POWER DIVISION :
The power plant at Bellary is being operated with furnace oil as fead stock and the company delivers its generation to KPTCL under a power purchase agreement. The increase in fuel costs though a concern, is a pass through in pricing the sale of power to KPTCL. Ever increasing demand for power is a favourable sign for better future of this division.
CONTINGENT LIABILITY:(Rs. In Millions)
Particulars |
31.03.2011 |
31.03.2010 |
|
|
|
|
Cheques / Bills Discounted with Banks. |
22.667 |
21.794 |
|
Unexpired Bank guarantees / letters of Credit (net of margin money
paid) |
52.334 |
19.306 |
|
Estimated amount of Contracts remaining to be executed on Capital
Account (Net of advances). |
270.505 |
351.719 |
|
Arrears of dividend on cumulative redeemable preference shares of
Rs.188.823 Millions at a coupon rate of 0.01 %, issued and allotted as per
Debt Restructuring package and scheme of arrangement sanctioned by High Court
of A.P. for the period from 01.04.2002 to 31.03.2011(payable after 15 years)
i.e from 01.04.2018. |
0.170 |
0.151 |
Claims against the company not acknowledged as debts, being disputed and pending in appeals/ Assessments in respect of |
||
|
i) Central excise matters
regarding Cenvat credit availed on input consumables and on service tax
payments on input services like freight, telephone, and courier etc., |
32.276 |
30.206 |
|
ii) Customs matters regarding
dispute on classification of goods |
0.990 |
0.990 |
|
iii) Sales tax matters
regarding Input tax credit availed on fuels used for steam generation
disallowed by the Department and levied penalty and interest (Paid under
protest) |
7.442(5.903) |
7.442(5.903) |
|
iv) Levy of delay charges on
late payment of Provident Fund by Regional Provident Fund Commissioner |
1.534 |
1.534 |
|
v) 1) Wheeling Charges levied
by APCPDCL pending in Supreme Court 2) Wheeling charges levied on APGAS power supplies covered by Bank
guarantee Rs. 69.30 lacs |
2.421NIL |
2.421NIL |
|
Differential duty on procurement of raw material as per show cause
notices issued by the Customs Authorities is contested and for which no provision
is considered as there will be no liability on the company as per legal
opinion obtained (paid under Protest) |
116.114(12.500) |
116.114(12.500) |
|
Refund sought by Karnataka Power Transmission Corporation Limited,
(KPTCL) / DISCOMS of the differential tax on account of Income Tax rates /
tax holiday as per terms of PPA is contested by the Company before The
Hon'ble High Court of Karnataka and the Court has directed to file a petition
before the Electricity Regulatory Commission and further directed not to take
any precipitate action against the Company |
160.900 |
NIL |
UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE
QUARTER/ HALF ENDED 31ST DECEMBER, 2011
(Rs. in Millions)
|
SR. NO. |
PARTICULARS |
Quarter Ended |
Nine Month Ended |
|
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
|
|
|
|
|
1 |
Gross Sales / Income from Operations |
2210.500 |
1919.700 |
6341.300 |
|
|
Less: Excise duty and sales Tax |
205.500 |
183.600 |
573.300 |
|
|
Net Sales / Income From Operations |
2005.000 |
1736.100 |
5768.000 |
|
2. |
Other Income |
25.700 |
38.200 |
95.800 |
|
4. |
Total Expenditure |
|
|
|
|
|
a) (Increase)/Decrease in Stock in Trade |
(47.800) |
11.700 |
(6.400) |
|
|
b) Consumption of Raw Materials |
1068.100 |
847.500 |
3016.000 |
|
|
c) Purchase of traded goods |
|
|
|
|
|
d) Consumption of spares, chemicals
and Stores |
87.600 |
77.900 |
251.500 |
|
|
e) Staff cost |
67.700 |
65.000 |
198.300 |
|
|
f) Power and Fuel |
438.900 |
403.300 |
1231.700 |
|
|
g) Depreciation |
94.100 |
88.900 |
269.200 |
|
|
h) Other Expenditure |
140.500 |
128.400 |
396.700 |
|
|
Total |
1849.100 |
1622.700 |
2347.400 |
|
|
Profit/Loss from Operations before Other Income, Interest and
Exceptional Items |
181.600 |
151.600 |
|
|
|
Other Income |
-- |
-- |
0.300 |
|
|
Profit before Interest and exceptional Items |
181.600 |
151.600 |
507.100 |
|
5 |
Interest |
97.900 |
78.700 |
257.800 |
|
6 |
Profit after Interest but before exceptional Items |
83.700 |
72.900 |
249.300 |
|
|
Exceptional Items |
-- |
-- |
-- |
|
7 |
Profit/Loss from Ordinary Activities Before Tax |
83.700 |
72.900 |
249.300 |
|
8. |
Provision for Taxation |
|
|
|
|
|
-MAT |
17.100 |
15.000 |
51.100 |
|
|
-Tax for earlier years |
-- |
-- |
-- |
|
|
-Deferred Tax Liability |
-- |
-- |
-- |
|
9 |
Net Profit / Loss from Ordinary Activities After Tax |
66.600 |
57.900 |
198.200 |
|
10 |
Extraordinary Items (Net of tax expenses) |
|
|
|
|
11 |
Net Profit / Loss for the period |
66.600 |
57.900 |
198.200 |
|
12 |
Paid up Equity Share Capital ( face value Re 10 each) |
675.000 |
675.000 |
675.000 |
|
13 |
Reserves excluding Revaluation Reserve (as per balance sheet) |
|
|
|
|
14 |
Earnings Per Share (not annualized) |
|
|
|
|
|
-Basic (Rs.) |
0.99 |
0.86 |
2.94 |
|
|
-Diluted (Rs.) |
0.97 |
0.85 |
2.90 |
|
15 |
Public Shareholding |
|
|
|
|
|
-Number of shares |
394326828 |
39432628 |
39432628 |
|
|
-% of shareholding |
58.42 |
58.42 |
58.42 |
|
16 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered -Number of shares |
1054078 |
1054078 |
1054078 |
|
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
3.76 |
3.76 |
3.76 |
|
|
-Percentage of shares (as a % of the total share capital of the
company) |
1.56 |
1.56 |
1.56 |
|
|
b) Non-encumbered -Number of shares |
27006580 |
27006580 |
27006580 |
|
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
96.24 |
96.24 |
96.24 |
|
|
-Percentage of shares (as a % of the total share capital of the
company) |
40.01 |
40.01 |
40.01 |
Quarterly reporting of Segment Wise Revenue, Results and Capital Employed
under clause 41 of the listing agreement
(Rs. in Millions)
|
SR. NO. |
PARTICULARS |
Quarter Ended |
Nine Month Ended |
|
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
1. |
Segment Revenue |
|
|
|
|
|
a) Chemicals |
1005.700 |
930.600 |
2876.700 |
|
|
b)Oils& Fats |
825.000 |
818.500 |
2626.500 |
|
|
c) Power Plant |
215.100 |
42.600 |
417.400 |
|
|
Total |
2045.800 |
1791.700 |
5920.600 |
|
|
Less : Inter segment revenue |
23.100 |
26.900 |
78.300 |
|
|
Net Sales/Income from Operations |
2022.700 |
1764.800 |
5842.300 |
|
2. |
Segment Results Profit / (Loss) Before Tax and Interest |
|
|
|
|
|
a) Chemicals |
110.300 |
118.900 |
386.500 |
|
|
b)Oils& Fats |
62.600 |
20.400 |
94.000 |
|
|
c) Power Plant |
0.800 |
2.800 |
4.700 |
|
|
Total |
173.700 |
142.100 |
485.200 |
|
|
Less : I) a) Interest Expenses b) Interest Income |
97.900 (7.900) |
78.700 (9.500) |
257.800 (21.900) |
|
|
II) Other un-allocable
Expenditure net off un-
Allocable income |
|
|
|
|
|
Total Profit before Tax |
83.700 |
72.900 |
249.300 |
|
|
Capital Employed |
|
|
|
|
|
(Segment Assets-Segment Liabilities) |
|
|
|
|
|
(Based on Estimate in terms of available data) |
|
|
|
|
|
a) Chemicals |
3835.300 |
3707.100 |
3835.300 |
|
|
b) Oils & Fats |
161.600 |
121.000 |
161.600 |
|
|
c) Power plant |
678.600 |
737.400 |
678.600 |
|
|
d) Others |
466.500 |
391.500 |
466.500 |
|
|
TOTAL |
5142.000 |
4957.000 |
5142.000 |
NOTE:
1. The above results for the quarter/Nine Months ended 31.12.2011 were reviewed
by the Audit Committee and approved by the Board of Directors at their
respective meetings held on 31st January, 2012 at
Hyderabad.
2. The Statutory Auditors have carried out a limited review of the
un-audited financial results of the Company for the Quarter / Nine Months ended
31.12.11.
3. Deferred Tax liability/Asset will be considered at the year ending on
31.03.2012.
4. There were no investor grievances pending at the beginning and ending
of the quarter as on 31.12.11. All the 5 grievances received during the quarter
were suitably resolved.
FIXED ASSETS:
·
Free Hold land and
Development
·
Lease Hold Land
·
Building
·
Plant and Machinery
·
Power Plant and Machinery
·
Electricals and D. g.
Sets
·
Furniture and Fittings
·
Office and Telephone
Equipments
·
Computers
·
Lab, Workshop and other
Equipment
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
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.