MIRA
INFORM REPORT
|
Report Date : |
23.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
KHAITAN CHEMICALS AND FERTILIZERS LIMITED |
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Registered
Office : |
A.B. Road, Village Nimrani, Khargone-451569, Madhya Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
02.06.1982 |
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Com. Reg. No.: |
10-004937 |
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Capital Investment
/ Paid-up Capital : |
Rs. 96.989 Millions |
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CIN No.: [Company Identification
No.] |
L24219MP1982PLC004937 |
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Legal Form : |
Public limited liability company. The company shares are listed to the
Stock Exchanges. |
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Line of Business
: |
Subject is an India-based company engaged in the manufacturing of
Single Super Phosphate (SSP), Sulphuric Acid and Soya Edible Oil. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4200000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. The
company is doing well. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
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 : |
A.B. Road, Village Nimrani, Khargone-451569, Madhya Pradesh, India |
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Tel. No.: |
91-7285-265448 / 62 |
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Fax No.: |
91-7285-265449 |
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E-Mail : |
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Factories and Works : |
D. Fatehpur, Near Kanpur, Uttar Pradesh, India |
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Fertilizer Division: |
A.B. Road, Village Nimrani, District Khargone-451659, Madhya Pradesh,
India Village Goramachia, Jhansi-Kanpur Road, Jhansi-248001, Uttar Pradesh,
India Village Dhinwa, Tehsil-Nimbahera, District Chittorgarh, Rajasthan,
India |
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Soya Division : |
(Khaitan Agro a Unit of KCFL), Dosigaon, Industrial Area, Ratlam,
Madhya Pradesh, India |
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Educational Institute : |
Located At: ·
West Bengal |
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Indore Office : |
301-308, Apollo Arcade, 1/2, Old Palasi, Indore-452001, Madhya Pradesh,
India |
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Tel. No.: |
91-731-2564936 / 2564937 / 2565663 |
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Fax No.: |
91-731-2562572 |
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Delhi Office : |
201, Skipper House, 62-63, Nehru Place, New Delhi-110019, India |
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Tel. No.: |
91-11-40555888 |
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Fax No.: |
91-11-40555889 |
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Kolkata Office : |
46-C, Rafi Ahmed Kidwai Road, 3rd Floor, Kolkata-700016,
West Bengal, India |
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Tel. No.: |
91-33-22174781 / 82 |
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Fax No.: |
91-33-22174783 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Shailesh Khaitan |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. J. L. Jajoo |
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Designation : |
Director |
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Name : |
Mr. O. P. Bagla |
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Designation : |
Director |
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Name : |
Dr. P. Goyal |
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Designation : |
Director |
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Name : |
Mr. Vijay Gupta |
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Designation : |
Additional Director (w.e.f.18.05.2011) |
KEY EXECUTIVES
|
Name : |
Mr. R. S. Vijayvargiya |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of Shareholder |
No. of Shares |
% of total No.
of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
(1) Indian |
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|
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Individuals / Hindu Undivided Family |
4,923,220 |
5.08 |
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Bodies Corporate |
67,812,950 |
69.92 |
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|
72,736,170 |
74.99 |
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(2) Foreign |
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Total
shareholding of Promoter and Promoter Group (A) |
72,736,170 |
74.99 |
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(B) Public
Shareholding |
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(1) Institutions |
|
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Mutual Funds / UTI |
260 |
- |
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Financial Institutions / Banks |
11,280 |
0.01 |
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|
11,540 |
0.01 |
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(2)
Non-Institutions |
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Bodies Corporate |
5,804,630 |
5.98 |
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Individuals |
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|
12,950,188 |
13.35 |
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Individual shareholders holding nominal
share capital in excess of Rs. 0.100 Millions |
4,064,473 |
4.19 |
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|
1,422,199 |
1.47 |
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NRIs/OCBs |
1,411,760 |
1.46 |
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Clearing Members |
10,439 |
0.01 |
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|
24,241,490 |
24.99 |
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Total Public
shareholding (B) |
24,253,030 |
25.01 |
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Total (A)+(B) |
96,989,200 |
100 |
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|
- |
- |
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(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) |
96,989,200 |
- |
BUSINESS DETAILS
|
Line of Business : |
Subject is an India-based company engaged in the manufacturing of Single
Super Phosphate (SSP), Sulphuric Acid and Soya Edible Oil. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Ssingle super Phosphate |
MT |
911500 |
433393* |
|
Sulphuric Acid |
MT |
270600 |
140911 |
|
Oleum |
MT |
26500 |
305 |
|
Liq. Sulphur Trioxide |
MT |
3300 |
2162 |
|
Seed Crushing |
MT |
420000 |
42541** |
|
Refined Oil |
MT |
30000 |
7262*** |
|
LABSA |
MT |
16500 |
-- |
Notes:
Licensed Capacity
per annum not indicated due to the abolition of Industrial Licenses as per Notification
No.477 (E) dated 25th July, 1991 issued under The Industries (Development and
Regulations) Act, 1951.
*Actual Production includes 34505 MT processed
through job work basis
** Actual Production includes 10551 MT
processed done through job work basis
*** Actual Production includes 868 MT
processed done through job work basis
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of India ·
IDBI Bank Limited ·
Corporation Bank ·
HDFC Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S. S. Kothari Mehta and Company Chartered Accountant |
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Address : |
146-149, Tribhuvan Complex, Ishwar Nagar, Mathura Road, New
Delhi-110065, India |
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Solicitors : |
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Name : |
Khaitan and Partners |
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Address : |
Himalaya House, 23, Kasturba Gandhi Marg, New Delhi-110001, India |
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Associates : |
Shobhan Enterprises Private Limited |
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Related Party : |
Shradha Projects Limited |
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Other Related Parties : |
The Majestic Packaging Company Private Limited Tribhuvan Properties Limited Arati Marketing Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
22000000 |
Equity Shares |
Rs.10/- each |
Rs. 220.000 Millions |
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Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
9712442 |
Equity Shares |
Rs.10/- each |
Rs. 97.124
Millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
9698920 |
Equity Shares |
Rs.10/- each |
Rs. 96.989
Millions |
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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 |
96.989 |
96.989 |
96.989 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
968.307 |
684.759 |
688.908 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1065.296 |
781.748 |
785.897 |
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LOAN FUNDS |
|
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1] Secured Loans |
1461.727 |
1073.790 |
818.543 |
|
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2] Unsecured Loans |
50.000 |
0.000 |
0.000 |
|
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TOTAL BORROWING |
1511.727 |
1073.790 |
818.543 |
|
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DEFERRED TAX LIABILITIES |
143.858 |
151.699 |
161.921 |
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TOTAL |
2720.881 |
2007.237 |
1766.361 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
918.672 |
819.004 |
874.131 |
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Capital work-in-progress |
15.693 |
8.732 |
0.105 |
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INVESTMENT |
0.949 |
24.400 |
26.150 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
1525.858
|
1236.805 |
532.461 |
|
|
Sundry Debtors |
109.128
|
26.848 |
61.257 |
|
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Cash & Bank Balances |
156.966
|
161.756 |
66.554 |
|
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Other Current Assets |
404.793
|
110.881 |
512.191 |
|
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Loans & Advances |
169.152
|
139.647 |
225.325 |
|
Total
Current Assets |
2365.897
|
1675.937 |
1397.788 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
192.528
|
102.704 |
270.966 |
|
|
Other Current Liabilities |
255.420
|
403.735 |
260.903 |
|
|
Provisions |
132.382
|
14.397 |
0.000 |
|
Total
Current Liabilities |
580.330
|
520.836 |
531.869 |
|
|
Net Current Assets |
1785.567
|
1155.101 |
865.919 |
|
|
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.056 |
|
|
|
|
|
|
|
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TOTAL |
2720.881 |
2007.237 |
1766.361 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
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|
SALES |
|
|
|
|
|
|
|
Income |
4573.353 |
2021.737 |
3507.823 |
|
|
|
Other Income |
2.658 |
6.861 |
1.199 |
|
|
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TOTAL (A) |
4576.011 |
2028.598 |
3509.022 |
|
|
|
|
|
|
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|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
3163.983 |
1937.779 |
2427.640 |
|
|
|
Purchased of Traded Goods |
85.598 |
24.646 |
2.617 |
|
|
|
Personnel Costs |
85.341 |
57.053 |
53.724 |
|
|
|
Manufacturing and Other Expenses |
708.540 |
433.846 |
412.188 |
|
|
|
Miscellaneous Expenditure W/Off |
0.000 |
0.056 |
0.135 |
|
|
|
Adjustment relating to previous years |
19.057 |
3.502 |
20.294 |
|
|
|
Increase / (Decrease) in Stocks |
(181.592) |
(512.414) |
164.687 |
|
|
|
TOTAL (B) |
3880.927 |
1944.468 |
3081.285 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
695.084 |
84.130 |
427.737 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
163.500 |
10.163 |
196.359 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
531.584 |
73.967 |
231.378 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
66.616 |
70.286 |
68.377 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
464.968 |
3.681 |
163.001 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
150.686 |
(4.387) |
60.330 |
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
314.282 |
8.068 |
102.671 |
|
|
|
|
|
|
|
|
|
Add |
Transferred from
Capital Subsidy |
0.283 |
0.283 |
0.209 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
215.661 |
230.927 |
158.472 |
|
|
|
|
|
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
10.000 |
10.000 |
|
|
|
Dividend |
23.277 |
11.639 |
17.458 |
|
|
|
Tax on Dividend |
3.776 |
1.978 |
2.967 |
|
|
BALANCE CARRIED
TO THE B/S |
403.173 |
215.661 |
230.927 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
8.534 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1075.459 |
1020.348 |
417.490 |
|
|
|
Traded Goods |
0.000 |
9.604 |
0.000 |
|
|
|
Capital Goods |
3.298 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
1078.757 |
1029.952 |
417.490 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
32.43 |
0.86 |
10.61 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1079.740 |
1822.510 |
1657.210 |
|
Total Expenditure |
893.720 |
1612.680 |
1553.790 |
|
PBIDT (Excl OI) |
186.020 |
209.830 |
103.420 |
|
Other Income |
3.730 |
1.330 |
0.250 |
|
Operating Profit |
189.750 |
211.160 |
103.670 |
|
Interest |
48.310 |
50.040 |
69.960 |
|
Exceptional Items |
0.000 |
(9.500) |
0.000 |
|
PBDT |
141.440 |
151.620 |
33.710 |
|
Depreciation |
17.940 |
17.940 |
19.660 |
|
Profit Before Tax |
123.500 |
133.680 |
14.050 |
|
Tax |
36.520 |
38.550 |
2.260 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
86.980 |
95.120 |
11.790 |
|
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 |
86.980 |
95.120 |
11.790 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.87
|
0.40 |
2.93 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.17
|
0.18 |
4.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.16
|
0.15 |
7.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44
|
0.00 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.10
|
2.23 |
1.92 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.08
|
3.22 |
2.63 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF OPERATIONS
Fertilizer and Chemicals Division:
The
introduction of the Nutrient-Based Subsidy (NBS) policy of the Government of
India w.e.f. 1st May, 2011 is a welcome step. Pursuant to the NBS
Policy, Company expects healthy growth in the demand for fertilizers,
especially SSP, complex fertilizers and customized fertilizers, on the back of
promotion of a more balanced nutrient consumption. The Single Super Phosphate
fertilizer is a generic customized fertilizer containing sulphur, calcium and
other micro nutrients besides phosphate.
The
Nutrient Base Subsidy (NBS) is a long term positive for Fertilizer Industry
with free market mechanism encouraging more interaction between producers and
farmers for efficient use of fertilizer for better agricultural output.
They
are confident that in a rational subsidy scheme, the SSP industry shall benefit
the most resulting in higher availability of this 'generic customized
fertilizer' for Indian farmers at competitive prices with no extra cost to
exchequer.
During
the year 2010-11, the Company produced 433393 MT (previous year 332543 MT)
Single Super Phosphate and sold 451067 MT (previous year 244520 MT) which was
highest ever production and sales by the Company.
The
Company's net profit (after tax) for the year is Rs. 314.565 millions, which is
not only highest but also exceeds the total of last 4 years, despite not so
good performance of the Soya Division.
The
Company is determined to perform better in the current year and achieve a
higher capacity utilization.
Soya Division:
The
Company is continuing with its cautious approach while considering speculative
fluctuations in the market and negligible upfront crushing margin. The Company
is adequately leveraging its position by hedging its inventories to counter the
high volatility. During the year, the Company has crushed 42541 MT (previous
year 12135 MT) Soybean seed including 10551 MT (previous year NIL) through Job
work basis
PROJECTS AND FINANCE
The
Company has acquired manufacturing facilities of SSP and Sulphuric Acid from
M/s Jairam Phosphates Limited, at Rajnandgaon (Chhattisgarh) during the year
for production of up to 66,000 I PA of SSP Fertiliser and 49,500 TPA of
Sulphuric Acid.
The
operations of the plant commenced in March, 2011. The acquisition was funded by
a term loan of Rs. 100.000 Millions and with internal accruals.
Further,
the SSP Project for 2,00,000 TPA at Dahej (Gujarat) has received the much
awaited statutory environmental clearance and civil work is being started
shortly. The Company expects to start production in the current financial year.
The project cost of Rs. 300.000-350.000 Millions shall be financed through
internal accruals and term loans.
The
Company had completed erection of LABSA (Linear Alkylbenzene Sulfonic Acid)
plant at Nimrani which shall be commissioned shortly. This shall enable
utilization of the waste products of the acid plant. HDFC Bank Limited and
Corporation Bank have become part of their banking consortium after merging of
State Bank of Indore with State Bank of India.
MANAGEMENT
DISCUSSIONS AND ANALYSIS REPORT
BUSINESS OVERVIEW:
The Company is mainly engaged in the manufacturing of Single Super
Phosphate (Fertilizer) and Soya Edible Oil. Both the segments are related to
agriculture and dependent on monsoon.
FERTILIZER AND CHEMICALS DIVISION:
The Company has India's largest Single Super Phosphate (SSP) production
capacity of 9,11,000 MT in the states of Madhya Pradesh, Rajasthan, Uttar
Pradesh and Chhattisgarh along with Sulphuric Acid (SA) production capacity of
2,70,600 MT in the states of Madhya Pradesh, Uttar Pradesh and Chhattisgarh.
Sulphuric Acid is also an intermediary raw material for production of SSP. The
Company, being largest producer and seller of SSP in India, has produced 433393
MT SSP (including 34505 MT through Job work basis), and sold451067 MT SSP.
The Company was awarded the 'Best Production Performance Award' for
its Nimbahera plant from 'The Fertilizer Association of India', consecutively
for the second year.
Industry Structure and Developments:
India is basically an agriculture based
economy and the fertilizer sector is verycrucial for the Indian economy. Main
features of this industry are-
- Basic need for agriculture and its
development.
- Third largest producers and consumer in
the world.
- Highly dependent on Imported Raw Material.
- Highly subsidised by Government of India.
- Substantial Import of Finished Products.
The Government of India has implemented Nutrient Based Subsidy (NBS)
Policy for Phosphatic and Potassic Fertilizer w.e.f. April 1, 2010, which will
ensure more balanced nutrient consumption.
The Government of India has also declared incentives to new investment
in this sector by giving it 'Infrastructure Status' under the Income Tax Act.
These new development shall encourage investment in this sector and promote new
products
The Company is producing SSP which contains
Phosphates, Sulphur, Calcium and other micro nutrients and could be said to be
a 'Generic Customised Fertilizer'. It is an essential Fertilizer for crops
likes Oilseeds, Pulses, Sugarcane, Fruits and Vegetables, Tea etc. and for
sulphur deficient soils.
SSP industry is immensely benefited by NBS
Policy which shall ultimately ensure availability of SSP fertilizer which is
more fanner friendly, environment friendly, and an agronomically preferred
fertilizer. Increased use of SSP shall also help in conserving foreign
currency, to the extent it will substitute import of finished 'P and K'
fertilizers.
SSP is a lowest priced Fertilizer product on
a per kg basis, and there for every much suitable for small and marginal
farmers. Demand of Fertilizer is not likely tobe a problem for the SSP
industry, however, timely release of subsidy by Government of India, and
distribution will be a major concern.
The Company is continuously enjoying its
leading position in SSP industry and further expanding its manufacturing
capacity by installing of 2,00,000 TPA SSP plant at Dahej (Gujarat).
FUTURE OUTLOOK:
The Government of India's commitment for the Fertilizer sector is evident
from the introduction of a rational NBS Policy, granting Infrastructure Status
to the fertilizer sector and Cash payment of Subsidy (instead of Bonds). This
will encourage investment in the sector and shall work towards replacing the
import of finished fertilizer products. They expect that the demand for
fertilizers will increase gradually consistent with the increased focus on
improving crop productivity and with modernization and revival of agricultural
sector. The performance of the Company is expected to be better in coming years
considering its basic strengths like high integrated capacity which is already
operational, multi-geographical locations and established brands.
SOYA DIVISION
The Company is having 1400 TPD Soybean
crushing capacity along with 100 TPD Edible Oil Refinery located in Soybean
growing area i.e., Ratlam, Madhya Pradesh, which is well connected with
rail/road network with nearby ports.
The Company is not able to utilize its plant
capacity mainly due to already excess capacity in the Industry with continuous
new capacities with smaller investments and corresponding higher tax incentives
by State Government. Moreover due to long shelf life and an active future
commodity market of Soya-Oil and Soybean, Soybean has become a favorite of
traders and fund investors, leading to excessive speculation and volatility.
During the year, the Company has crushed
42541 MT (previous year 12135 MT) Soybean seed including 10551 MT (previous
year NIL) through Job work basis
INDUSTRY STRUCTURE AND DEVELOPMENTS:
The most popular and the largest produced
oilseed in the world is soybean. It has got the support of wide variety of
climates and soils and that is why it is considered to be the most economical
crop and has a good worth.
Soya oil is extracted from the basic soybean
through complex refining process by crushing soybeans, 17-18% soy oil is
recovered and the rest is called soy meal or De-oiled cake.
The contribution of soy oil in world's total
oil production has reached around 25%, after growing at 5.8% P.A. during the
last 10 years, and figures around 31 million tons in absolute terms. Countries
like U.S, China, Argentina and India has a strong consumer base. Consumption
has also risen in other nations like European Union, Central Europe, Egypt,
Morocco, Mexico, and Brazil.
Soybean meal comprises of the remnant after
the oil extraction. It has high protein content and is easily digestible and
that is why it serves as an animal feed and accounts for about 65% of the
world's total animal feed.
Soybean holds a very important position in
the Indian agriculture and economy. Madhya Pradesh has the lead among the
soybean producing states in India. The major trading centers for soy in India
include indore and Ujjain in Madhya Pradesh, Nagpur in Maharashtra and Kota in
Rajasthan.
The total crop size in India is about 10-11
million tonnes out of world crop of 250million tonnes. Soya Oil is consumed in
the country while sadly a protein deficient country like India is exporting its
cheapest protein containing soy meal to other countries due to poor promotion
of its benefits and by incentivizing Exports. However, indue course of time
home consumption of Soybean meal is bound to increase. Soybean and Soy-Oil are
actively traded in Indian commodity exchanges namely, National Commodity and
Derivatives Exchange Limited (NCDEX), Multi Commodity Exchange of India Limited
(MCX) and National Board of Trade Limited (NBOT).
FUTURE OUTLOOK:
In India, the crushing capacity of Soybean
is much higher than availability of raw material.
In spite of higher capacity, the efficient
processing capacity in good locations like their shall perform reasonably well
with higher soybean crop due to increase in yield. Eventually on expiry of incentive
period accorded to new entrants existing players like them will have a
competitive edge in a level playing field.
FIXED ASSETS
·
Freehold Land
·
Building
·
Plant and Machinery
·
Electric Installation
·
Furniture and Fixtures
·
Office Equipments
·
Lab and Other Equipments
·
Vehicles
·
Electrical Appliances
·
Fire Fighting Equipments
·
Computers
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED ON DECEMBER 31, 2011
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
|
|
31.12.2011 (Unaudited) |
30.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
1657.212 |
1822.510 |
4559.462 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) (Increase) / Decrease in Stock in Trade |
(386.699) |
381.066 |
(9.693) |
|
|
b) Purchase of Traded Goods |
-- |
-- |
-- |
|
|
c) Employees Cost |
25.538 |
22.073 |
68.332 |
|
|
d) Depreciation |
19.665 |
17.940 |
55.541 |
|
|
e) Other |
175.729 |
152.839 |
446.122 |
|
|
f) Consumption of Raw Materials |
1582.518 |
878.374 |
3149.772 |
|
|
g) Outward Transportation |
79.635 |
114.191 |
264.451 |
|
|
f) Total |
1496.386 |
1566.477 |
3974.525 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
160.826 |
256.033 |
584.937 |
|
|
|
|
|
|
|
4. |
Other Income |
0.248 |
1.332 |
2.500 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
161.074 |
257.365 |
587.437 |
|
|
|
|
|
|
|
6. |
Interest |
69.955 |
50.038 |
168.302 |
|
|
Foreign Exchange Fluctuations |
77.062 |
64.150 |
138.400 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
14.057 |
143.177 |
280.735 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
14.057 |
143.177 |
280.735 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
2.262 |
38.554 |
77.336 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
11.795 |
95.123 |
193.899 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
11.795 |
95.123 |
193.899 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
96.989 |
96.989 |
96.989 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Earning
Per Share (EPS) (Rs.)-Not Annualised |
0.12 |
0.98 |
2.00 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
24253030 |
24253030 |
24253030 |
|
|
- Percentage of Shareholding |
25.01 |
25.01 |
25.01 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
800000 |
933580 |
800000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
1.10 |
1.28 |
1.10 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
0.82 |
0.96 |
0.82 |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
71936170 |
71802590 |
71936170 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
98.90 |
98.72 |
98.90 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
74.17 |
74.03 |
74.17 |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fertilizer and Chemicals |
1205.977 |
1717.536 |
3710.887 |
|
|
|
Soya |
451.049 |
102.272 |
841.982 |
|
|
|
Others |
0.186 |
2.702 |
6.593 |
|
|
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
1657.212 |
1822.510 |
4559.462 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fertilizer and Chemicals |
146.572 |
274.799 |
562.557 |
|
|
|
Soya |
15.127 |
(19.323) |
20.725 |
|
|
|
Others |
(0.625) |
1.889 |
4.155 |
|
|
|
|
|
|
|
|
|
|
Total |
161.074 |
257.365 |
587.437 |
|
|
|
|
|
|
|
|
|
|
Less : Interest and Other financial Expenses |
147.017 |
114.188 |
306.702 |
|
|
|
Less : Exceptional Items |
0.000 |
9.500 |
9.500 |
|
|
|
|
|
|
|
|
|
|
Total Profit Before
Tax |
14.057 |
133.677 |
271.235 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fertilizer and Chemicals |
2548.544 |
2484.214 |
2548.544 |
|
|
|
Soya |
1005.313 |
353.493 |
1005.313 |
|
|
|
Others |
48.068 |
48.881 |
48.068 |
|
|
|
|
|
|
|
|
|
|
Total Capital
Employed in Segments |
3601.925 |
2886.588 |
3601.925 |
|
|
|
|
|
|
|
|
|
|
Add : Unallocable Corporate assets less corporate liabilities |
(2.511) |
(16.454) |
(2.511) |
|
|
|
Total Capital
Employed in Company |
3599.414 |
2870.134 |
3599.414 |
Notes:
1. The figures for the corresponding
period have been restated wherever necessary to make comparable.
2. Net Sales is inclusive of gain of
Rs.1.243 millions (nine months ended Rs.24.982 millions) from Commodity Future
and Derivative transactions including MTM gain / (loss) on Outstanding Future
and Derivative Contracts as on 31.12.2011 as per consistent practice.
3. Based on legal opinions ought by
Fertilizer Association of India, the Company has not considered the impact on
subsidy receivable vide Office Memorandum No. 23011 / 1 / 2010 - MPR dated
11.07.2011 and No. 23011 / 42 / 2010 – MPR
/ SSP dated 12.10.2011 of Government of India, being disputed by
Industry as unreasonable and unjustified, which would have reduced turnover and
PBT by Rs. 26.034 millions (nine months ended Rs.172.545 millions) and PAT by
Rs. 17.587 millions (nine months ended 116.563 millions), besides impact of
mopping up on account of raw material inventory, which is neither as certain
able as on date nor with held by Government of India.
4. The above results were reviewed by
the Audit Committee and taken on record by the Board of Directors in its
meeting held on 06.02.2012. The Statutory Auditors of the Company have carried
out a Limited Review of the results for the quarter ended December 31, 2011 and
reffed therein note 2 and 3.
5. Status of Investors' Grievances:
Opening balance: NIL, Received during the quarter: 61, Resolved during the
quarter: 61, Pending at the end of quarter: NIL.
WEBSITE
DETAILS
Subject is an India-based company engaged in the
manufacturing of Single Super Phosphate (SSP), Sulphuric Acid and Soya Edible Oil.
It operates in two business segments: Fertilizer and Chemicals, Soya, and
Others. The Fertilizers and Chemicals division is engaged in the manufacturing
and selling of fertilizers. Its fertilizers are sold under the brand name
Khaitan Khad. The Company manufactures and sells Sulphuric Acid. It also
manufactures Sulphuric Acid derivatives, such as Oleum 65% and Oleum 25%. It is
engaged in crushing soybean seed and refining of crude soybean oil and
producing products of soybean. It generates steam as a by-product in the
manufacturing process and has installed a turbo generator to generate up to
3,325 kilowatts power by utilizing this steam. It has installed and
commissioned a wind turbine generator with a capacity of 1,250 kilowatts, for
generation of electricity by harnessing the winds in Dhulia, Maharashtra. For
the nine months ended 31 December 2010, Subject revenues increased 92% to
RS3.18B. Net income totaled RS286.3M vs. a loss of RS21.3M. Revenue reflects an
increase in income from Fertilizers and chemicals division and higher income
from Soya division. Net income also reflects a decrease in depreciation charge
and higher gross and operating profit margin.
Subject is a largest Single Super Phosphate manufacturer in India. The
company is engaged in the production of fertilizers, sulphuric acid, soya oil.
Subject sells its Single Super Phosphate fertiliser under the Khaitan Khad
brand for various crops like oil seeds, groundnut, and potato. The company also
produces Single Super Phosphate in granulated form called GSSP. Subject is
specialized in the production of Sulphuric Acid and its derivatives namely,
Oleum 65%, Oleum 25% and Liquid SO3. Subject also generates up to 3325 KW power
by using steam, a by-product produced in the manufacturing process. In
addition, in 2006, the company installed and commissioned a wind turbine
generator in Dhulia, Maharashtra for the generation of electricity by
harnessing the winds. KCFL, through its Soya division engaged in the processing
of soya seeds for solvent oil extraction. The company is headquartered in
Khargone, Madhya Pradesh, India. The company reported revenues of (Rupee) INR
4,576.01 million during the fiscal year ended March 2011, an increase of
125.58% over 2010. The operating profit of the company was INR 464.97 million
during the fiscal year 2011, an increase of 12,531.57% over 2010. The net
profit of the company was INR 314.28 million during the fiscal year 2011, an
increase of 3,795.41% over 2010.
This major group includes establishments producing basic chemicals, and
establishments manufacturing products by predominantly chemical processes.
Establishments classified in this major group manufacture three general classes
of products:
(1)
basic chemicals, such as acids, alkalies, salts,
and organic chemicals;
(2)
chemical products to be used in further
manufacture, such as synthetic fibers, plastics materials, dry colors, and
pigments; and
(3)
finished chemical products to be used for ultimate
consumption, such as drugs, cosmetics, and soaps; or to be used as materials or
supplies in other industries, such as paints, fertilizers, and explosives.
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. 49.24 |
|
|
1 |
Rs. 76.74 |
|
Euro |
1 |
Rs. 65.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.