MIRA
INFORM REPORT
|
Report Date : |
23.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
COROMANDEL INTERNATIONAL LIMITED (w.e.f. 25.09.2009) |
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Formerly Known As : |
COROMANDEL FERTILISERS LIMITED |
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Registered
Office : |
‘Coromandel House’, 1-2-10, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
16.10.1961 |
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Com. Reg. No.: |
01-000892 |
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Capital
Investment / Paid-up Capital : |
Rs. 281.834 Millions |
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CIN No.: [Company Identification No.] |
L24120AP1961PLC000892 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDC00011E |
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PAN No.: [Permanent Account No.] |
AAACC785ZK |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates. |
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No. of Employees : |
1050 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (78) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 76000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having fine track. Financial
positions 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 good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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
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Registered Office : |
‘Coromandel House’, 1-2-10, |
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Tel. No.: |
91-40-27842034 / 27847212 |
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Fax No.: |
91-40-27844117 |
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E-Mail : |
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Website : |
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Factory 1 : |
Fertiliser Plants:
Sriharipuram, Po Box No. 1116, Malkapuram Post, |
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Tel. No.: |
91-891-2578400 to
2578419
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Fax No.: |
91-891-2577665
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Tel. No.: |
seetaramn@cfl.murugappa.com
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Factory 2 : |
Fertiliser Plants:
Fertilisers / Pesticides Factory Ranipet - 632 401,
Vellore District |
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Tel. No.: |
91-4172-272326 |
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Fax No.: |
91-4172-272264 |
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Factory 3 : |
Fertiliser Plants:
Compound Fertilisers Factory Ennore, Chennai - 600 507. |
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Tel. No.: |
91-44-5733600 |
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Tel. No.: |
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Factory 4 : |
Pesticide Plant:
Plot No. 22/1, TTC Industrial Area, Thane Balapur Road, Ghanasoli
P.O., Navi Mumbai - 400 701, Maharashtra, India |
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91-22-27781261 to 27781263
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warriarmk@cfl.murugappa.com
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Crop Protection Plants : |
Located at: v Ranipet in Tamilnadu v
Navi Mumbai in v
Ankleshwar in v
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Marketing branches
servicing the farming community across |
Located at: v
v
v Trichy in Tamilnadu v
v
Ahmedabad in v
v
v
v
Kolkata in v Gaziabad in Uttar Pradesh v
Bhatinda in |
DIRECTORS
As on 31.03.2011
|
Name: |
Mr. A. Vellayan |
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Designation: |
Chairman |
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Name: |
Mr. K. Balasubramanian |
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Designation: |
Director |
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Name: |
Mr. B.V.R. Mohan Reddy |
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Designation: |
Director |
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Name: |
Mr. R.A. Savoor |
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Designation: |
Director |
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Name : |
Mr. M.K. Tandon |
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Designation : |
Director |
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Name : |
Mr. M.M.
Venkatachalam |
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Designation : |
Director |
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Name : |
Mrs. Ranjana Kumar |
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Designation : |
Director |
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Name : |
Mr. V. Ravichandran |
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Designation : |
Director |
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Name : |
Mr. Kapil Mehan |
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Designation : |
Managing Director
(From 19.10.2010) |
KEY EXECUTIVES
|
Name |
Mr. M.R. Rajaram |
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Designation |
Company Secretary |
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Name |
Mr. P. Nagarajan |
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Designation |
Chief Financial Officer |
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Name |
Mr. G Ravi Prasad |
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Designation |
President – Marketing Fertilizers and SND |
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Name |
Mr. P. Gopalkrishna |
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Designation |
Sr. Vice President – Retail |
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Name |
Mr. Harish Malhotra |
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Designation |
Sr. Vice President – Commercial |
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Name: |
Mr. G. Veera
Bhadram |
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Designation: |
Sr. Vice President – Pesticides SBU |
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Name |
Mr. S. Govindarajan |
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Designation |
Sr. Vice President and Head of Manufacturing |
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Name: |
Mr. Arun Leslie
George |
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Designation: |
Sr. Vice President and Head of HR |
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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|
|
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|
3435468 |
1.22 |
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|
177161160 |
62.74 |
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|
25140 |
0.01 |
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|
25140 |
0.01 |
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|
180621768 |
63.96 |
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Total
shareholding of Promoter and Promoter Group (A) |
180621768 |
63.96 |
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(B)
Public Shareholding |
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|
15036136 |
5.32 |
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|
217606 |
0.08 |
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|
6429374 |
2.28 |
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|
21769803 |
7.71 |
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|
1840 |
-- |
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|
1840 |
-- |
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|
43454759 |
15.39 |
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|
5867611 |
2.08 |
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|
27091439 |
9.59 |
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12103527 |
4.29 |
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13251954 |
4.69 |
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|
95810 |
0.03 |
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|
500 |
-- |
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|
9939060 |
3.52 |
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|
52056 |
0.02 |
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3098333 |
1.10 |
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|
66195 |
0.02 |
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58314531 |
20.65 |
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Total
Public shareholding (B) |
101769290 |
36.04 |
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Total
(A)+(B) |
282391058 |
100.00 |
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
-- |
-- |
|
(1)
Promoter and Promoter Group |
-- |
-- |
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(2)
Public |
-- |
-- |
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Sub
Total |
-- |
-- |
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Total
(A)+(B)+(C) |
282391058 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
-TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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(i)
Fertilisers |
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|
Ammonium Phosphatic Fertilisers |
MT |
2315000 |
2104014 |
|
Di-Ammonium Phosphate (DAP) |
MT |
815000 |
434475 |
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Single Super Phosphate |
MT |
132000 |
104472 |
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(ii) Plant Protection Products |
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Technicals |
MT |
11840 |
7204 |
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Formulations
- Liquids (in KL) |
MT |
10400 |
7171 |
|
Formulations
– Granules/Powder |
MT |
6920 |
5338 |
NOTE:
Installed
capacities are as certified by the management and not verified by the auditors,
being a technical matter. Fertiliser and Plant Protection Products are not covered
by the list of industries in respect of which industrial licensing is
compulsory.
GENERAL INFORMATION
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No. of Employees : |
1050 (Approximately) |
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Bankers : |
v
State Bank of v State Bank of Travancore v Standard Chartered Grindlays Bank v Citibank N.A. v IDBI Bank Limited v HDFC Bank Limited v ICICI Bank Limited v Andhra Bank v HSBC Bank v Hongkong and Shanghai Banking Corporation Limited v HDFC Bank v Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name 1: |
Price Waterhouse Chartered Accountants |
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Address : |
8-2-293/82/A/1131A Road No.36, Junilee
Hills, |
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Cost Auditors : |
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Name 2 : |
Mr. V Kalyanaraman Chartered Accountant |
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Name 3 : |
Mr. Dantu Mitra Chartered Accountant |
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Holding Company : |
E.I.D. Parry ( |
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Subsidiaries : |
v Parry Chemicals Limited (PCL) v CFL Mauritius Limited (CML) v Coromandel Brasil Limitada (CBL) |
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Fellow
Subsidiary Company : |
v Parry Investments Limited v Parry Infrastructure Company Private Limited (PICPL) v Sadashiva Sugars Limited (SSL) v Parry Sugar Industries Limited (PSIL) |
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Joint Venture : |
v Coromandel Getax Phosphates Pte Limited (CGPL) Joint Venture v Coromandel SQM India Private Limited (CSQM) Joint Venture v Tunisian Indian Fertilisers. SA (TIFERT) |
CAPITAL STRUCTURE
As on 21.07.2011
Authorised Capital : Rs.350.000 millions
Issued, Subscribed & Paid-up Capital : Rs.282.432
millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000000 |
Equity Shares |
Re.1/- each |
Rs.350.000 Millions |
|
|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
281834198 |
Equity Shares |
Re.1/- each |
Rs.281.834 Millions |
|
|
|
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|
*Notes:
(A) Of the above,
since inception:
(i) 1,161,220
Equity Shares of Rs.10/- each fully paid-up have been allotted pursuant to
contracts without payments being received in cash.
(ii) 13,855,758 Equity
Shares of Rs.10/- each fully paid-up have been issued as Bonus Shares by
capitalisation of a part of General Reserve.
(iii) 881,888
Equity Shares of Rs.10/- each fully paid-up have been issued at a premium of
Rs.10/- per share to the Debenture Holders and Public Financial Institutions
pursuant to the right exercised by them for converting a part of their
Debentures/Loan amounts into fully paid-up Equity Shares.
(B) 4,864,000
Equity Shares of Rs.10/- each fully paid-up have been bought back at a price of
Rs. 65/- per share from the shareholders pursuant to the offer for buy back of
equity shares made during the year ended March 31, 2000.
(C) 5,949,901
Equity Shares of Rs.10/- each fully paid-up have been allotted to the
shareholders of E.I.D. Parry (India) Limited in the ratio of one share of the
Company for every three shares of E.I.D. Parry (India) Limited, pursuant to the scheme of arrangement (demerger)
between E.I.D. Parry (India) Limited and the Company for the acquisition of
Farm Inputs Division of E.I.D. Parry (India) Limited during the year ended
March 31, 2004.
(D) 831,981 Equity
Shares of Rs.2/- each fully paid up have been allotted to the shareholders of
Ficom Organics Limited in the ratio of 3 shares of the Company for every 11 shares
of Ficom Organics Limited pursuant to the Scheme of Amalgamation between Ficom
Organics Limited and Rasilah Investments Limited and the Company during the
year ended March 31,
2007.
(E) 12,037,182
Equity Shares of Rs.2/- each fully paid up have been allotted to the
shareholders of Godavari Fertilisers and Chemicals Limited in the ratio of 3
shares of the Company for every 2 shares of Godavari Fertilisers and Chemicals
Limited pursuant to the Scheme of Amalgamation between Godavari Fertilisers and
Chemicals Limited and the Company during the year ended March 31, 2008.
(F) Of the total
Equity Share Capital as at March 31, 2011, E.I.D. Parry (
(G) 1,287,710
(2010: 376,296 Equity Shares of Rs.2/- each) Equity Shares of Re.1 each have
been allotted pursuant to exercise of stock options under 'ESOP 2007' scheme
during the year.
(H) During the
year, the Equity Shares of face value of Rs.2/- each fully paid-up have been
sub-divided into Equity Shares of Re. 1/- each.
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 |
281.834 |
280.546 |
279.794 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
18759.323 |
14069.335 |
10991.611 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19041.157 |
14349.881 |
11271.405 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3876.871 |
4655.985 |
2970.528 |
|
|
2] Unsecured Loans |
10834.742 |
14521.954 |
14228.471 |
|
|
TOTAL BORROWING |
14711.613 |
19177.939 |
17198.999 |
|
|
DEFERRED TAX LIABILITIES |
814.549 |
854.671 |
794.671 |
|
|
|
|
|
|
|
|
TOTAL |
34567.319 |
34382.491 |
29265.075 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7937.020 |
8040.391 |
7640.342 |
|
|
Capital work-in-progress |
594.929 |
132.755 |
278.018 |
|
|
|
|
|
|
|
|
INVESTMENT |
2123.252 |
2110.461 |
1633.104 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
15131.212
|
9264.227
|
13475.105
|
|
|
Sundry Debtors |
2051.767
|
1427.130
|
1043.330
|
|
|
Cash & Bank Balances |
9020.559
|
8098.586
|
3414.928
|
|
|
Other Current Assets |
4299.787
|
8599.573
|
8802.885
|
|
|
Loans & Advances |
11199.278
|
6232.872
|
10527.614
|
|
Total
Current Assets |
41702.603
|
33622.388
|
37263.862 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
15122.097
|
7112.428
|
12742.620
|
|
|
Other Current Liabilities |
1345.662
|
1467.184
|
3588.047
|
|
|
Provisions |
1322.726
|
943.892
|
1219.584
|
|
Total
Current Liabilities |
17790.485
|
9523.504
|
17550.251
|
|
|
Net Current Assets |
23912.118
|
24098.884
|
19713.611
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34567.319 |
34382.491 |
29265.075 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
32650.627 |
28305.260 |
21552.878 |
|
|
|
Government Subsidies |
42628.871 |
35642.043 |
72196.927 |
|
|
|
Income from Business Assistance Agreement |
0.000 |
0.000 |
1585.941 |
|
|
|
Other Income |
1881.864 |
1321.154 |
1342.308 |
|
|
|
TOTAL (A) |
77161.362 |
65268.457 |
96678.054 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
65817.222 |
56838.039 |
87187.726 |
|
|
|
TOTAL (B) |
65817.222 |
56838.039 |
87187.726 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11344.140 |
8430.418 |
9490.328 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
842.163 |
753.713 |
847.230 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10501.977 |
7676.705 |
8643.098 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
617.405 |
592.316 |
561.318 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9884.572 |
7084.389 |
8081.780 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2940.000 |
2402.400 |
3118.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
6944.572 |
4681.989 |
4963.780 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2031.827 |
1488.592 |
530.150 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
3500.000 |
2500.000 |
2500.000 |
|
|
|
Transfer from Debentures Redemption
Reserve |
0.000 |
0.000 |
(131.387) |
|
|
|
Interim Dividend |
1127.457 |
841.464 |
839.382 |
|
|
|
Proposed Dividend |
845.503 |
561.093 |
559.588 |
|
|
|
Tax on Dividend |
324.418 |
236.197 |
237.755 |
|
|
BALANCE CARRIED
TO THE B/S |
3179.021 |
2031.827 |
1488.592 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
F.O.B. Value of export of goods |
663.791 |
591.967 |
|
|
|
|
Service Income |
26.876 |
21.627 |
|
|
|
|
Others |
38.306 |
39.605 |
|
|
|
|
TOTAL EARNINGS |
728.973 |
653.199 |
2350.593 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Materials |
45207.158 |
31755.105 |
8920.604 |
|
|
|
Stores & Spares Parts |
25.999 |
1.294 |
|
|
|
|
Capital Goods |
1.045 |
7.751 |
|
|
|
|
Traded Goods |
4863.881 |
5428.252 |
|
|
|
|
TOTAL IMPORTS |
50098.083 |
37192.402 |
8920.604 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.69 |
16.72 |
35.48 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
31.12.2011 3rd
Quarter |
|
Net Sales |
17956.700 |
27240.800 |
25605.600 |
|
Total Expenditure |
15458.500 |
23903.200 |
23135.100 |
|
PBIDT (Excl OI) |
2498.200 |
3337.600 |
2470.500 |
|
Other Income |
190.800 |
873.900 |
207.200 |
|
Operating Profit |
2689.000 |
4211.500 |
2677.700 |
|
Interest |
243.400 |
187.800 |
292.100 |
|
Exceptional Items |
0.000 |
0.000 |
(355.300 |
|
PBDT |
2445.600 |
423.700 |
2030.300 |
|
Depreciation |
142.100 |
135.500 |
137.800 |
|
Profit Before Tax |
2303.500 |
3888.200 |
1892.500 |
|
Tax |
710.0000 |
1100.000 |
556.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1593.500 |
2788.200 |
1335.600 |
|
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 |
1593.500 |
2788.200 |
1335.600 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
9.00
|
7.17
|
5.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.27
|
25.03
|
37.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.91
|
17.00
|
17.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.52
|
0.49
|
0.72 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.71
|
2.00
|
3.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.34
|
3.53
|
2.12 |
LOCAL AGENCY FURTHER INFORMATION
Operations
The Company has
shown improved performance in all its business segments and achieved higher
revenue of Rs.77160.000 Millions for the year ended March 31, 2011 (2009-10 - Rs.65270.000
Millions). Profit for the year, before depreciation, interest and taxation was
Rs.11340.000 Millions, compared to Rs. 8430.000 Millions in the previous year.
Profit after tax was Rs.6940.000 Millions as against Rs.4680.000 Millions in
2009-10 recording an increase of 48%. Higher volumes and improved operating and
raw material procurement efficiencies have significantly contributed to
improved performance all round, resulting in higher profit.
The Fertiliser
division continued to improve on its performance with record volume of
production and sales. The total fertiliser sales (including bought out
fertilisers) during the year touched the record level of 31.0 lakh MT compared
to 29.8 lakh MT in the previous year. Kakinada Plant achieved a number of new
records including highest production ever.
The Plant
Protection business also performed well during the year recording higher sale
of technicals and significant volume increase in branded formulations
especially through "Mana Gromor" retail outlets. There has been a
significant improvement in the operations of the Ankleshwar Unit with the
commissioning of new facilities for manufacturing technicals and robust
environment management system. With the centralisation of technical grade
facilities at Ankleshwar, Navi Mumbai operations have been stopped. Management
is taking initiative for alternate use of the existing facilities. The
The Speciality
Nutrients business consisting of Water Soluble Fertilisers (WSF), Secondary and
Micro Nutrients and Municipal Compost, achieved profitable growth over the
previous year and established new sales records.
The rural retail
business which was started in 2007 has now 443 centres operating across Andhra
Pradesh and Karnataka catering to the requirements of the farming community -
both agri and some of the non-agri products including life style products.
During the year, the Company has launched a pilot farm mechanization project to
provide services to the farmers.
Acquisition and Amalgamation of Pasura Bio-Tech
Private Limited
During the year,
the Company acquired 100% equity capital of Pasura Bio-Tech Private Limited,
which has a Pesticides formulations manufacturing facility in
Subsidiary
Companies
CFL
Mauritius Limited
The
Company (a 100% subsidiary) earned a total income of US $ 0.14 million (equivalent
to Rs.6.200 Millions) and net loss of US $ 0.026 million (equivalent to Rs.1.200 Millions) during the year ended December 31,
2010.
Parry
Chemicals Limited (PCL)
The
Company (a 100% subsidiary) earned a total income of Rs.4.700 Millions for the year ended March 31, 2011
and Profit after Tax was Rs.0.300 Million.
Coromandel
Brasil Limitada
The
Company, a Limited Liability Partnership incurred net loss of Brazilian Real
0.515 million (equivalent to Rs.13.300 Millions) for the year ended December 31,
2010.
Technical
Assistance Agreement with Foskor (Pty) Limited (
The
Company along with its wholly owned subsidiary Company, CFL Mauritius Limited
continues to hold 14.0% of equity of Foskor.
During the
year the Company renewed the Technical Assistance Agreement with Foskor (Pty)
Limited,
Joint
Venture Companies
Tunisian
Indian Fertilizers (TIFERT)
TIFERT, a
joint venture Company, was formed in
Coromandel
Getax Phosphates Pte Limited
The Joint
Venture Company based in
Coromandel
SQM India Private Limited
The Joint
Venture Company, formed to set up a WSF Plant at
Awards/Recognition
The Company
continues to receive awards/accolades from Industry associations. During the
year the Company received the following awards/accolades:
-
Fertiliser
Association of India Award for Best Operating Phosphoric Acid Plant received by
Visak Plant
-
CII's National
Award for excellence in Water Management was received by Visak Plant
-
Energy Conservation
Award for 2009-10 from NEDCAP, Dept. of Energy, Govt. of AP was received by
Visak Plant
-
Kakinada Plant
received Commendation Certificate from CII-Exim Bank for "Significant
Achievement" in Business Excellence
-
Significant
Achievement in HR Excellence at a National level by the Confederation of Indian
Industries (CII).
-
Dun and Bradstreet
- Rolta Corporate Award 2009 in the Fertiliser sector.
-
VOICE - the in
house magazine received the Best House Magazine Award from the Public Relations
Society of India,
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC SCENARIO
The
Indian Economy has emerged stronger in the last 2 years despite the slow down
caused by the global financial crisis of 2008-2009. As per the latest estimates
released by Central Statistics Office (CSO), GDP growth in 2009-10 and 201011
is estimated at 8% and 8.5% respectively. While this has been largely driven by
strong growth in industry and services sectors, the agricultural sector has
also shown an upswing with growth of 6.6% in 2010-11 in contrast to a marginal
decline in the previous year. The domestic environment is conducive for robust
growth with private expenditure projected to grow by a healthy 7.5%, driven by
rising investment demand and increase in domestic consumption.
One
area of concern is inflation, especially, the inflation in food articles which
remained in double digit for most of the year. As per IMF's forecast (January
2011 World Economic Outlook Update), consumer price inflation is expected to
continue to be high in emerging and developing economies in 2011 due to demand
pressures and sluggish supply response. Persisting high inflation has forced
Reserve Bank of
As
per the latest estimates of CSO, production of food grains during 2010-11 is
estimated to touch a record level of 234 million tonnes, compared to 218
million tonnes produced during 2009-10 due to wide spread rainfall and increase
in gross irrigated area. At the same time, the need for a second green revolution
is now being strongly felt, more than ever before. The Government has
recognized the need to step up both private and public investments in the
agricultural sector so as to achieve the target growth of 4% per annum in this
sector. The significant rise in support prices of agricultural produce in
recent years ought to spur further increase in agricultural production. In this
context, the Government, has emphasized on the need for creation of more direct
farm - to - fork supply chains in food items across the country to incentivize
the farmer with higher produce prices and at the same time ensure lower price
for end consumer. Absence of El nino effect and the expectation of normal
monsoon, signal a positive outlook for Indian agriculture with growth projections
at 6.5% to 7.5% in 2011-12
ORGANIZATION
Coromandel
is a flagship Company of Murugappa Group and is a subsidiary of EID-Parry (
The
Company has following subsidiaries and joint ventures for its various business
initiatives.
v
Parry Chemicals Limited,
v
CFL Mauritius Limited,
v
Coromandel Getax Phosphates Pte Limited,
v
Coromandel
v
Coromandel SQM (
v
Tunisian Indian Fertilizers,
In addition,
the Company also holds strategic investment by way of 14% equity stake in
Foskor (Pty) Limited,
FARM
INPUTS
FERTILISERS
SBU
Coromandel
with a production capacity of 3.26 million tonnes of Phosphatic Fertilisers, is
one of the leading manufacturers of phosphatic fertilisers in
Industry
Scenario
World
fertiliser demand was strong and wide spread in 2010 and the global fertiliser
consumption is expected to have gone up by 3.8%, over the previous year level.
This was partly triggered by the higher commodity prices. World nutrient based
fertiliser production also increased significantly by 11% over 2009 and global
sales increased by 13% mainly on account of potash sales.
Consumption
of phosphatic fertilisers during 2010-11 is estimated at 250 Lakh MT,
representing an increase of 13% over the previous year level of 221 Lakh MT.
The year
also saw an unprecedented increase in import of fertilisers. Against an import
of 58 lakh MT of DAP, SSP and TSP during 2009- 10, the country has imported
about 74 lakh MT in 2010-11. Besides the country also imported 66 lakh MT of
Urea ( 2009-10 - 52
While the
demand for Phosphatic fertilisers had gone up by nearly 28 lakh MT during the
year, indigenous production of DAP, Complex Fertilisers and SSP had increased
only marginally from 150 Lakh MT in 2009-10 to 156 Lakh MT in 2010-11. While
there was a drop of about 20% in the production of DAP during the year, there
was a corresponding increase in the production of complex fertilisers by 7%.
The
international prices of DAP, other fertilisers and raw materials generally
remained stable during the first half of the year after which there has been a
steady increase owing to increased global demand.
Government
Policies
Government
of
•
Subsidy is fixed
based on the import parity price adjusted for MRP wherein "P" is
based on DAP, "N" based on Urea and "K" based on Potash and
"S" based on
•
Under the NBS
Policy, MRP has been decontrolled.
•
Govt. had fixed the
subsidy for "N", "P", "K" and "S" based
on the prevailing international prices. Per kg rates for "N",
"P", "K" and "S" are Rs.23.23, Rs.26.28, Rs.24.49
and Rs.1.78 respectively.
The new
policy is a Win-Win proposition for all stakeholders viz. Government, farmers
and the industry. The new policy seeks to emphasise the balanced nutrition of
the soil consistent with the need for increasing the agricultural productivity.
It is expected that the new policy will bring down the subsidy outgo for the
Government and will provide product and pricing flexibility for the Industry.
The new Policy is seen as a window of opportunity for the Company to provide
the farmers new products and technologies through the Company's own R and D as
well as through imports.
The
response to the new policy has been positive. There was a marginal increase in
the prices of various fertilisers during the first half of the year, but, steep
increase in input prices especially of Ammonia and Phosphoric acid,
necessitated further revision in the MRP of various grades of fertilisers
during the second half of the year. NBS policy has been an unqualified success with
abundant availability at affordable prices. It also helped Government to reduce
its overall subsidy burden due to annual contracts and efficient buying by the
industry.
In line
with the new policy, the Government has announced the revised subsidy rates for
"N", "P", "K" and "S" for the year
2011-12. Per kg rates for "N", "P", "K" and
"S" for the year 2011-12 are Rs.27.15, Rs.32.33, Rs.26.75 and Rs.1.67
respectively.
The
subsidy disbursement during the year 2010-11 was reasonably prompt and there
were no fresh allotment of bonds during the year. It is expected that going
forward Government will make adequate budgetary support to meet the subsidy
bill in the year 2011-12.
During the
year, Government of India announced a Scheme for buy back of the remaining
Fertiliser Companies' Government of India Special Bonds (Fertiliser bonds -
issued by it in an earlier year in lieu of subsidy dues) in two equal tranches
during 2010-11 and 201112 through Reserve Bank of India and also decided to
share atleast 50% of the loss on such sale of fertiliser bonds. The industry
has sought full reimbursement of loss on the buy back of bonds.
Fertiliser
SBU Performance
The
Company achieved a total sales volume of 29.02
The
movement of Fertilisers sold during the year were strictly governed by movement
orders issued by Government of India and this necessitated movement to many
states.
Coromandel
continues to have a significant presence in Andhra Pradesh, Tamil Nadu,
Karnataka, Orissa, Chattisgarh, Maharashtra and
Strategic
tie ups coupled with careful planning and close monitoring on the raw materials
front, enabled the Company to maximise production in all its units thereby
increasing availability of fertilisers and timely supply to farmers.
The
Company's Technology Development centre at
The
Company has during the year signed an agreement with Shell International
Petroleum Company Limited (Shell), under which Shell will provide technology for
manufacture of sulphur enhanced fertilisers. This will enable the Company to
introduce new grades of fertilisers which can increase productivity for farmers
by improving soil fertility.
PLANT
PROTECTION CHEMICALS – SBU
Industry
Scenario
Global
Crop Protection Business witnessed a marginal growth of 1.2% to touch $ 38
billion by the end of year 2010. The business was affected by variable weather
across the globe induced by La Nino effect. GM crops continued to grow across
the World and the GM seeds business witnessed a growth of 14.2% over previous
year to touch $12 billion during 2010.
Of the
various regions across the Globe, growth in Latin America and Asia regions was
over 8% compared to previous year, while
Indian
agriculture benefitted from extended monsoon leading to a growth of 5% over
previous year, which in turn helped increased consumption of plant protection
chemicals. The industry is estimated to have grown by nearly 20% over previous
year.
Prices of
commodities like Cotton, Chillies and Pulses ruled high while price of Paddy
was subdued throughout the year. Paddy continued to be the major crop for
consumption of plant protection chemicals followed by Cotton.
Plant
Protection - SBU Performance
The SBU
achieved an all time high turnover of Rs. 4400.000 Millions (growth of 23%) boosted by a growth
in formulations brand business and in technical business in domestic and export
markets. Acquisition of a new formulation unit in
With its
broad range of products and distribution network, the Company was able to
achieve encouraging growth in many states taking advantage of increased
acreages under target crops. Sustained business growth through its retail chain
in Andhra Pradesh (AP) and trade channels, contributed to the Company reaching
top position in terms of turnover in the biggest state for plant protection
industry (AP)
During the
year, the Company introduced new products (captive technical and sourced) to
boost its top line growth in fast growing segments and strengthened
co-marketing tie-ups for accessing new chemistry products.
In
technical business, the Company recorded a growth of more than 20% over the
previous year. The Institutional Sales and Public Health business continued to
grow. In Public health business, the SBU gained entry into A.P. Government
tender business and Defence Ministry tenders for the first time. The year saw
Coromandel taking over the leadership position in certain molecules.
In
exports, the Company expanded its reach into new markets of Africa and
In
SPECIALITY
NUTRIENTS SBU
Industry/Company's
Performance
Speciality
Nutrient business of the Company comprises of:
v
Secondary and micronutrients -
v
Water Soluble Fertilisers (WSF).
v
Organic Manure.
These categories along with the regular NPK fertilisers are the essential building blocks of the Company's 'holistic crop nutrition' offerings to the farming community.
One of the main drivers of this business is the increasing acreage under high value crops. Besides, increase in coverage of land area under micro irrigation especially drip irrigation, provides an impetus to the usage of WSF.
Differentiating itself across all critical factors, viz.,
manufacturing, product offerings, pan
Having
pioneered the manufacture and marketing of Bentonite Sulphur in
In WSF,
the strategy of two pronged attack through in-house research products like
"Insta" and "Superia" with exclusivity and range of generic
grades riding on the strength of its umbrella brand of 'Gromor', has given the
Company a lead position.
The
Company has obtained all necessary approvals and work has begun on its the new
WSF plant being set up at
In Zinc
and Boron, the Company is focusing on high value variants.
During the
year, the Company also introduced a few variants of specialty nutrients and
increased its product range.
Organic
carbon, an essential component of Indian Agriculture is almost depleted all
over the agricultural tracts in their Country.
The
overall turnover of the specialty nutrients business increased by 15% over the
preceding year and the business has potential to grow in the coming years.
RETAIL SBU
During the
year 2010-11 the Company operated 423 retail stores in Andhra Pradesh under the
name "Mana Gromor Centres" providing "one stop solution" to
the farmer community. This initiative has now been extended to Karnataka with
the setting up of 20 centres in that state under the name "Namma Gromor
Centres".
The
response to this initiative has been very positive and through these centres
Company has been striving to provide comfortable and respectful shopping
experience for the rural community by setting up spacious outlets in rural
areas with attractive ambiance. Apart from retailing Company's own products
like fertilisers, pesticides, specialty nutrients and organic fertilisers,
these centres also sell other agri inputs like seeds, imported fertilisers like
urea and pesticides, beside Life Style Products. The emphasis here is to
leverage the relationship with the rural customers for expanding business and
enter into new and diversified areas. Some of the new products/services
offerings taken up by these centres during the year include cattle feed, farm
implements like sprayers, farm mechanization services, Life and General
Insurance products etc.
During the
year, the Company increased its turnover from sale of traded products through
retail centres by 24%. Thanks to the retail centres, the Company's Pesticides business
achieved No.1 position in A.P, with the retail centres contributing nearly 60%
of the total sales. The Company is in the process of expanding the operations
in Andhra Pradesh and Karnataka by adding more retail outlets during next
financial year.
OVERALL
PERFORMANCE
The
Company's overall financial performance for the year 2010-11 have been good.
While the total revenue grew by nearly 18% in 2010-11 compared to the previous year,
the overall profitability, increased by 40% with improved performance coming
from all the SBUs viz., Fertilisers, Pesticides, Speciality Nutrients and
Retail.
OUTLOOK
The new
Nutrient Based Subsidy policy which has come into effect from April 2010, has
brought about greater clarity and stability to the Fertiliser Subsidy Policy.
It provides an opportunity for the Company to develop and introduce new
fertilisers which are crop specific and soil specific. At the same time, the
Policy has also thrown up a challenge in terms of negotiating with the
international suppliers of fertilisers and raw materials to ensure closest
possible alignment with the prices reckoned by Government of India for subsidy
purposes. The new Policy would also enable the Company to capture better value
for its estabilished brands.
Global
availability of various raw materials required for fertiliser manufacture
including Rock phosphate, sulphur, phosphoric acid etc., has become tight. In
this context, the Company has benefitted from its global tie ups, which would
help ensure continued supply of required raw materials at competitive
international prices. The Company is also in the process of identifying and
developing new sources of raw materials. The Company has a strategic equity stake
in the joint venture viz. Tunisien Indian Fertiliser Company,
The 'C'
train project at the Company's Kakinada Plant is under way and is expected to
be commissioned by middle of financial year 2012-13. This should enable the
Company to increase its production capacity and reach an overall production
target of about 4 million tonnes from the year 2013-14. As part of this project
the Company is also building other infrastructural facilities like ammonia
storage facility and phosphoric acid tanks besides railway siding and bagging
facilities which will facilitate in achieving the higher volumes.
The
Fertiliser Technology Development Centre at the Company's Visakhapatnam Plant,
is dedicated to developing new products and help improving operating
efficiencies.
In plant
protection business, in the case of 'Technicals', efforts would continue for
introduction of new products at the Company's Ankleshwar Plant and speed up the
product identification and registration work in the Latin American market. This
will enable the Company to expand its product portfolio in the top 10 countries
of presence. The Company also proposes to go in for registration of new
molecules from
The
prevailing high level of commodity prices augur well for increased consumption
of crop protection chemicals in the coming year too; the Company is well
positioned to capture the growth in Industry with its broad range of products,
pan Indian network and chain of own retail stores.
In the
'Specialty Nutrient' business, the Company will continue to expand its product
range especially in the WSF segment to cater to all customers and crop
segments. The new WSF Plant currently being put up in
CONTINGENT LIABILITY:
(As on 31.03.2011)
Guarantees
(i) The Company has provided guarantee to third parties on behalf of its Subsidiary CFL Mauritius Limited - Rs.588.720 Millions (2010:Rs. 596.376 Millions.)
(ii) The Company has provided a guarantee towards the borrowing of Tunisian Indian Fertilizers S.A., Tunisia (TIFERT), a joint venture Company, up to Rs. 2308.050 Millions (2010:Rs. 2338.065 Millions).
a) Other
(Rs. In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
In
respect of matters under dispute: |
|
|
|
Excise Duty |
25.963 |
31.794 |
|
Sales Tax |
2.107 |
0.394 |
|
Others |
108.054 |
64.773 |
Notes:
The amounts shown
in the item
(a) Represent
guarantees given in the normal course of business and not expected to result in
any loss to the Company on the basis of the beneficiaries fulfilling their
obligations as they arise.
The amounts in
item
(b) Represent best
estimate and the uncertainties are dependent on the outcome of the legal
processes initiated by the Company or the claimant as the case may be.
UNAUDITED FINANCIAL RESULTS
(PROVISIONAL) FOR THE QUARTER ENDED DECEMBER 31, 2011
|
|
Rs in Millions |
||
|
Particulars |
Quarterly Ended |
Nine Month Ended |
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
(Unaudited) |
(Unaudited) |
||
|
(a) Net sales/Income from operations |
255.009 |
271.144 |
705.164 |
|
(b) Other operating income (Refer Note 8) |
1.047 |
8.153 |
9.756 |
|
Total |
256.056 |
279.297 |
714.920 |
|
Expenditure |
|
|
|
|
a) (Increase)/Decrease in stock in trade and work in progress |
(63.009) |
(6.315) |
(78.873) |
|
b) Consumption of raw materials |
158.819 |
142.832 |
429.685 |
|
c) Purchase of traded goods |
105.770 |
70.827 |
187.368 |
|
d) Employee costs |
5.290 |
5.288 |
15.449 |
|
e) Depreciation |
1.378 |
1.355 |
4.154 |
|
f) Other expenditure (Refer Note 8) |
24.481 |
26.400 |
71.339 |
|
g) Total |
232.729 |
240.387 |
629.122 |
|
Profit from operations before Other Income, Interest
and Exceptional items (1-2) |
23.327 |
38.910 |
85.798 |
|
Other Income |
2.072 |
1.850 |
5.830 |
|
Profit before Interest and Exceptional items (3+4) |
25.399 |
40.760 |
91.628 |
|
Interest |
2.9.21 |
1.878 |
7.233 |
|
Profit after Interest but before Exceptional Items
(5-6) |
22.478 |
38.882 |
84.395 |
|
Exceptional items (Refer Note 6) |
(3.553) |
- |
(3.553) |
|
Profit (+) / (Loss) (-) before tax (7+8) |
18.925 |
38.882 |
80.842 |
|
Tax expense |
5.569 |
11.000 |
23.669 |
|
Net Profit (+) / (Loss) (-) after tax (9-10) |
13.356 |
27.882 |
57.173 |
|
Paid-up equity share capital |
|
|
|
|
(Face value - Re.1 per equity share) |
28.24 |
28.22 |
2.824 |
|
Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year |
|
|
|
|
Earnings per share (for the period - not annualised) |
|
|
|
|
- Basic (Rupees) |
4.73 |
9.89 |
20.27 |
|
- Diluted (Rupees) |
4.71 |
9.82 |
20.14 |
|
Public Shareholding |
|
|
|
|
- Number of shares |
101,769,290 |
101,588,398 |
101,769,290 |
|
- Percentage of shareholding |
36.038% |
35.998% |
36.038% |
|
Promoters and Promoter group Shareholding a) Pledged/encumbered |
|
|
|
|
-No of shares |
10,000 |
10,000 |
10,000 |
|
-Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
0.006% |
0.005% |
0.006% |
|
-Percentage of shares (as a % of the total share capital of the company) |
0.004% |
0.004% |
0.004% |
|
b) Non-encumbered |
|
|
|
|
-No of shares |
180,611,768 |
180,601,768 |
180,611,768 |
|
-Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
99.994% |
99.995% |
99.994% |
|
-Percentage of shares (as a % of the |
|
|
|
|
total share capital of the company) |
63.958% |
63.998% |
64.115% |
Notes:
v The above financial results are drawn in accordance with the accounting
policies consistently followed by the Company.
v The above results have been reviewed and recommended by the Audit Committee
and approved by the Board of Directors at their meeting held on January 23,
2012. The Statutory Auditors have carried out a limited review of these
financial results.
v The Board of Directors at their meeting held on January 23, 2012 have
approved an interim dividend of Rs. 4 per share (400 % on face value of Re 1/-
share ).
v During the quarter, pursuant to the exercise of stock options by certain
employees under the 'ESOP 2007' scheme, the Company has allotted 190,892
(Quarter ended December 31, 2010: 328,402) equity shares of Re1/-each at the
respective exercise price.
v During the quarter the Company, pursuant to the approval from Securities
Exchange Board of India (SEBI) for the Open Offer under SEBI (Substantial
Acquisition of Shares and Takeover) Regulations, 1997, acquired 1,05,00,000
(31%) equity shares of Sabero Organics Gujarat Limited (Sabero) at a price of
Rs.160/- per share. Further, pursuant to the Share Purchase Agreement entered
into with the erstwhile promoters of Sabero, the Company completed the
acquisition of 1,24,44,453 (36.75%) equity shares of Sabero. The Company along
with its wholly owned subsidiary (Parry Chemicals Limited,) holds 69.10% of the
equity share capital of Saber and effective December 17, 2011 Sabero became a
subsidiary of the Company. The acquisition being recent, and considering the
scale of operations of Sabero between December 17, 2011 and December 31, 2011,
the same has not been considered for consolidation.
v Exceptional item represents Non Compete fee paid to erstwhile Indian
promoters of Sabero as per the Share Purchase Agreement.
v The Company has recognized subsidy income (included in the Net sales /
Income from operations), as per the prevalent Nutrient Based Subsidy Policy
(NBS). The subsidy income for the quarter and nine months ended December 31,
2011 includes Rs.115.500 Millions and Rs.407.600 Millions respectively (quarter
and nine months ended December 31, 2010: Rs.109.800 Millions and Rs.2260.300
Millions respectively) relating to earlier periods consequent to the
determination of final rates of concession. Further, in respect of the Office
Memorandum dated July 11, 2011 issued by the Department of Fertilisers with
regard to recognition of subsidy income on the opening inventories as at April
1, 2011, the Company has recognized subsidy income based on estimates and the
legal opinion obtained in this regard and changes in estimates, if any, shall
be made upon final determination of the matter.
v During the previous quarter, the Company sold remaining quantum of the
Government of India Special Bonds pursuant to the decision of Government of
India to buy back outstanding bonds and compensate atleast 50% of the loss on
such sale. Accordingly during the previous quarter, the Company accounted for
the loss of Rs. 426.700 Millions (Year ended
March 31, 2011: Rs.371.700 Millions) (net of compensation receivable from
Government of India) and the same is included under 'Other Expenditure'.
Consequently, the provision towards Mark to Market loss made earlier on such
bonds amounting to Rs. 688.900 Millions (Year ended March 31, 2011: Rs.688.900
Millions) has been reversed and is included under 'Other Operating Income'.
v In October 2011, the Board approved, subject to the approval of
shareholders, stock exchanges, regulatory authorities and the High Court of
Andhra Pradesh, issue of bonus debentures by appropriating General Reserve
through a Scheme of Arrangement (Scheme). During the quarter, the company
obtained from National Stock Exchange and Bombay Stock Exchange approvals of
the Scheme for issue of one 9% Unsecured Redeemable Non- convertible Fully Paid
Bonus Debentures of Rs.15 each for every equity share from the General Reserve,
and is in the process of filing the Scheme with the High Court of Andhra
Pradesh.
v During the quarter, the Members of the Company pursuant to the provisions
of Section 293(1)(a) of the Companies Act, 1956 approved the transfer/assigning
of the lease rights on the land located at Navi Mumbai to the prospective
buyers.
v The Consolidated Results for the quarter and nine months period include
results of Parry Chemicals Limited, CFL Mauritius Limited, Coromandel Brasil
Limitada, wholly owned subsidiaries and Tunisian Indian Fertiliser SA (TIFERT),
Coromandel Getax Phosphates Pte Limited and Coromandel SQM (India) Private
Limited, Joint venture Companies. In respect of CFL Mauritius Limited,
Coromandel Brasil Limitada, TIFERT and Coromandel Getax Phosphates Pte Limited,
un-reviewed results have been used for preparing the consolidated results for
the quarter and nine months ended December 31, 2011. This matter has been
referred to in the Auditor's Report for the quarter and nine months ended
December 31, 2011.
v The Company, its subsidiaries and its joint ventures are primarily
engaged in the farm inputs business, which in the context of Accounting
Standard 17, is considered the only significant business segment.
v During the quarter, one investor complaint was received and resolved.
There was no investor complaint pending at the beginning or at the end of the
quarter.
v Figures of the previous quarters/period/year have been regrouped and
reclassified, wherever considered necessary.
FIXED ASSETS
v Land-Freehold
v Land -Leasehold
v Buildings, Roads
v Railway Siding
v Plant and Machinery
v Technical know-how
v Office Equipment
v Furniture and Fittings
v Vehicles
WEBSITE DETAILS
Business Description
Subject is engaged in the manufacture and trading of farm inputs. It operates in four segments: fertilizers, specialty nutrients, crop protection and retail. It manufactures phosphatic fertilizers. The specialty nutrients business consists of water soluble fertilizers, secondary and micro nutrients, and municipal compost. The crop protection business produces insecticides, fungicides and herbicides. The retail includes both agri and non-agri products, including life style products. It manufactures a range of phosphatic fertilizers, crop protection products, specialty nutrients, such as sulphur pastelles, water soluble fertilizers, micro nutrients and organic fertilizers. During the fiscal year ended March 31, 2011, it acquired Pasura Bio-Tech Private Limited. On December 17, 2011, it acquired a 31% interest in Sabero Organics Gujarat Limit. With this acquisition its holding in SABERO was 67.75% and effective December 17, 2011 SABERO became a subsidiary company. For the nine months ended 31 December 2010, Subject's revenues increased 26% to RS64.47B. Net income increased 62% to RS6.23B. Revenues reflect an increase in income from operations and higher other income. Net income reflects the presence of gain on stock in trade, improved gross profit margin and higher operating profit margin. The Company is engaged in the business fertilizers, pesticides and specialty nutrients.
Board of Directors
Mr. A. Vellayan
Non-Executive
Non-Independent Chairman of the Board
Mr. A. Vellayan is Non-Executive Non-Independent Chairman of
the Board of Subject Mr. Vellayan holds a Diploma in Industrial Administration
from
Mr. K.
Balasubramanian
Non-Executive
Independent Director
Mr. K. Balasubramanian is a Non-Executive Independent Director of Subject Mr. Balasubramanian is a Graduate in Commerce from the University of Madras and has done Advanced Management programme from the Harvard Business School. He has 40 years of experience in International Banking. Presently, he is a Member GMR Holding Board. He is also on the Board of GMR Group of Companies and DQ Entertainments Limited.
Mrs. Ranjana Kumar
Non-Executive
Independent Director
Mrs. Ranjana Kumar is Non-Executive Independent Director of
Subject She hold a Bachelor of Arts, a Gold Medalist, had an great career in
Indian banking industry spanning over four decades. She had started her career
with Bank of India in the year 1966 as a probationary officer and held several
senior positions in the Bank. She was CEO of US operations of Bank of India
based in
Mr. Kapil Mehan
Managing Director,
Additional Non-Independent Director
Mr. Kapil Mehan is Managing Director, Additional
Non-Independent Director of Subject He is a graduate in Veterinary Science and
Animal Health. He also holds a PG Diploma in Management from IIM, Ahmedabad
with specialization in Agriculture. He brings with him experience and
background in varied leadership roles. He started his career with Rallis
Mr. V. Ravichandran
Non Executive
Director
Mr. V. Ravichandran has been appointed as Non-Executive Vice Chairman of the Board of Subject, with effect from July 21, 2011. He is an Engineering Graduate and holds Post Graduate Diploma in Management from IIM, Ahmedabad. He is also a Cost Accountant and a Company Secretary. After having served Ashok Leyland Limited initially for a short period, joined the Murugappa Group and had served Parry Group of Companies mainly in the fields of finance and marketing. He also headed the Plant Protection business.
Mr. B. V. R. Mohan
Reddy
Non-Executive
Independent Director
Dr. B. V. R. Mohan Reddy is a Non-Executive Independent
Director of Subject Dr. B. V. R. Mohan Reddy is a Graduate in Mechanical
Engineering and holds a Master's degree in Management Engineering from
Mr. Ramesh Amrut
Savoor
Non-Executive
Independent Director
Mr. Ramesh Amrut Savoor is a Non-Executive Independent
Director of Subject He is a Bachelor of Science in Technology. He retired as
Managing Director of Castrol India Limited with effect from April 24, 2002. He
was with Castrol India Limited for 34 years, of which 12 years as Chief
Executive and Managing Director. Under his leadership Castrol
Mr. M. K. Tandon
Non-Executive
Independent Director
Mr. M. K. Tandon is a Non-Executive Independent Director of
Subject Mr. Tandon has been associated with the Indian Insurance Industry for
more than 37 years. He had, after completing his Masters Degree in Commerce and
Degree in Law both from
Mr. M. M.
Venkatachalam
Non-Executive
Non-Independent Director
Mr. M. M. Venkatachalam is a Non-Executive Non-Independent
Director of Subject Mr. M. M. Venkatachalam graduated from the
PROFILE
Subject is in the business segments of Fertilisers, Speciality
Nutrients, Crop Protection and Retail.
Coromandel manufactures a wide range of fertilisers and markets around
2.9 million tons making it a leader in its addressable markets and the second
largest phosphatic fertiliser player in
In its endeavour to be a complete plant nutrition solutions company,
Coromandel has also introduced a range of Speciality Nutrient products
including Organic Fertilisers.
The Crop Protection business produces insecticides, fungicides and
herbicides and markets these products in
Coromandel has also ventured into the retail business setting up more
than 425 rural retail centers in the agri and lifestyle segments.
The Company clocked a turnover of Rs.65270.000 Millions in 2009-10 (USD
1.44 billion as on March 31, 2010).
Coromandel was ranked among the top 20 best companies to work for by Business
Today and was also voted as one of the ten greenest companies in India by TERI,
reflecting its commitment to the environment and society.
Coromandel is a part of the Rs.136170.000 Millions (USD 3.03 billion as
on March 31, 2010) Murugappa Group.
MILESTONES:
1959 - Independent India realised that its largely agrarian economy needed a
thrust in the right direction for its people to benefit and prosper.
Prime Minister Jawaharlal Nehru invited the Ford Foundation to carry out a
comprehensive study of
1961 - An industrial license was granted to three companies - IMC ((the world's
largest producer of fertilisers then), Chevron Chemical Company (a major
American player in fertilisers / industrial chemicals) and E.I.D.Parry (I)
Limited (
The first board of Directors was constituted on October 16, with Mr. H V
R Iengar as its Chairman. Others on the Board included J Q Cope, Charles
Dennison, J K John, Dr L Bharat Ram, A W Horton, J T Gibson, S C
Dholakia, V K Rao and Raja Rameswar Rao. L L Powell and P J
Davies were the first Managing Director and Dy. Managing Director
respectively. Donald I Meikle was the first Company Secretary.
1962 - Market development commenced in the form of a 'seeding programme'.
E.I.D.Parry was appointed CFL's principal sales agent in
A sprawling 483.5 acres site was identified at
1964 - On March 2, Dr. Bharat Ram was elected Chairman of CFL's
Board of Directors. He was the longest-serving Chairman, with an innings
of 37 years. Addressing the AGM as Chairman on July 15, 2004, he nostalgically
commented, "In my long innings in public life, business and industry, I
have the varied experience. But I would like to affirm today, the last
occasion when I shall address you as the Chairman of CFL, that no assignment
has given such pleasure and a sense of fulfillment as working with you
all. CFL has been a role model, a commonwealth, in a co-operative
effort to build a great company, anchored in values and every aspect of what is
commonly known today as 'corporate governance'.
1967 - On December 10, Mr. Morarji Desai, the then Deputy
Prime Minister of India, dedicated the fertiliser plant to the nation, in the
presence of Mr. Kasu Brahmananda Reddy, the then Minister of Andhra
Pradesh. Grandhi Ramamurthy, a local farmer, was given the honour of
cutting the ribbon. The 245 ft high Urea prill tower was on of the
tallest industrial structures in
1970 - The 'GROMOR farmer' was developed as a marketing
symbol and introduced on their bags to spread the message of 'higher yields,
bigger profits'. Today, farmer households across their addressable
markets identify CFL's brand by this symbol.
1971 - The 'Cormondel Lecture' was instituted to provide a
forum for thinker, economists, social and agricultural research scientist
around the world to share their thoughts on issues of global concern such as
food security, environment and extension activity. The 'Borlaug Award',
instituted in honour of Nobel Laureate Dr Norman Borlaug (father of the Wheat
revolution), honours eminent men of science and industry for their distinctive
contribution to the cause of agriculture. This reflects CFL's concern to
develop a symbiotic interaction between agriculture, industry and academia.
1976 - Their fertiliser retail outlet at Secunderabad got a boost with
garden lovers fervently seeking small quantities of fertilisers for bigger and
richer blooms and fruit.
1977 - CFL completed a decade of participation in augmenting
agricultural production for the nation. Its vital role covered soil
nourishment, sharing agronomic expertise, supporting agricultural education and
rewarding research - all of which had progressively grown in width and depth
during the decade.
1980-90 - Plans to diversify were afoot. A
'groundbreaking' ceremony was performed in November 1980 at Chilamkur (Andhra Pradesh),
which is rich in limestone deposits, to set up a one million tonne cement
plant. The fully computerised plant (designed by world-renowned cement
manufacturer Krupp Polysius of
1995-99 - Chevron Chemical Company divested its stake in
favour of E.I.D.Parry (I) Limited in 1995, followed by IMC in 1999.
E.I.D.Parry (I) Limited acquired majority shareholding in CFL, making it a part
of Murugappa Group, a highly reputed industrial conglomerate.
2000 - CFL's growth over the years has been punctuated
with several path-breaking modernisation / upgradation programmes. Begun in
1975, the programme gathered momentum in 1992-95, when the Sulphuric
Acid, Phosphoric Acid and Complex Granulation plant were debottlenecked.
Production capacity went up from the original 247,000 MT to 400,000 MT.
On September 29, Mr N Chandrababu Naidu, the then Chief Minister of
Andhra Pradesh, inaugurated a new complex granulation train. This further
augmented capacity to 600,000 MT, a boon to the entire farming community.
2003 - On July 12, CFL consolidated its business by
acquiring controlling stake in Godavari Fertilisers and Chemicals Limited
(GFCL).
To optimise synergy of operations in the Group, the Farm Inputs Division
of E.I.D.Parry (I) Limited was merged with CFL on December 1.
2004 - Mr. V Ravichandran took over as President and WTD
on January 22. Mr A Vellayan took over as Chairman on September 1.
Other Directors on the Board are Mr. J Jayaraman, Mr M M Murugappan, Mr T
M M Nambiar, Mr M K Tandon, Mr D E Udwadia, Mr S Viswanathan
and Mr K A Nair. The first post merger AGM of the company was held on
July 15.
2005 - CFL signs a Business Assistance Agreement with Foskor Limited,
PRESS RELEASES:
COROMANDEL INTERNATIONAL LIMITED DECLARES 400% INTERIM DIVIDEND
31st December 2011
The unaudited
financial results for the Quarter/ Nine months ended December 31, 2011 were
approved by the Board of Directors at its meeting held on January 23, 2012.
The Board of
Directors have also approved an interim dividend of 400% (Rs.4 per share) on
face value of Re.1 per share.
Sales during the
nine months ended December 31, 2011 is Rs.70516.400 Millions, as against Rs. Rs.63532.000
Millions in the corresponding period last year, registering a growth of 11%.
The gross profit
before depreciation, interest and taxes for the nine months is Rs.9578.300
Millions as against Rs.10160.000 Millions during the same period last year;
depreciation provided was Rs. 415.400 Millions (corresponding period last year
Rs. 468.800 Millions), interest charged Rs.723.300 Millions (corresponding
period last year Rs. 622.800 Millions).
Profit before tax and
exceptional item for the nine months is Rs. 8439.500 Millions as compared to
Rs.9068.400 Millions in the corresponding period last year. After considering
exceptional item of Rs.355.300 Millions (corresponding period last year NIL)
PBT for the nine months is Rs.8084.200 Millions. Profit before tax for the nine
months includes prior period subsidy income of Rs.407.600 Millions
(corresponding period last year Rs.2260.300 Millions)
Provision for
taxation for the period works-out to Rs. 2366.900 Millions (corresponding
period last year Rs.2850.000 Millions). The net profit is Rs.5717.300 Millions
as against Rs. 6218.400 Millions during the corresponding period last year.
During the
quarter, the Company completed the acquisition of Sabero Organics Gujarat Limited
(Sabero) and now holds 69.10% in Sabero along with its subsidiary.
Recently,
Coromandel SQM a joint venture between the Company and SQM, world leader in
manufacture of water soluble Speciality plant nutrition solutions announced
completion of its water soluble plant at
Commenting on the
financial results, Mr Kapil Mehan, Managing Director, Coromandel International
Limited., said - “We are pleased to report improved operating performance in
spite of challenging market condition and depreciating Rupee. Without
considering exceptional item, PBT for the quarter has gone by 4% to Rs.2247.800
Millions over corresponding quarter of previous year (Rs.2162.900 Millions)”.
About Coromandel International Limited
Coromandel International
Limited,
In its endeavor to
be a complete plant nutrition solutions Company, Coromandel has also introduced
a range of Specialty Nutrient products including Organic Fertilizers. The Crop
Protection business produces insecticides, fungicides and herbicides and
markets these products in
The Company
clocked a turnover of Rs. 7,527 Cr during FY 2010-11. lt was ranked among the
top 20 best companies to work for by Business Today and was also voted as one
of the ten greenest companies in India by TERI, reflecting its commitment to
the environment and society. Coromandel is a part of the Rs.170510.000 Millions
Murugappa Group.
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.49.25 |
|
|
1 |
Rs.76.75 |
|
Euro |
1 |
Rs.65.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
78 |
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.