MIRA
INFORM REPORT
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Report Date : |
23.01.2012 |
IDENTIFICATION DETAILS
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Name : |
UNIPHOS ENTERPRISES LIMITED |
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Registered Office : |
11, GIDC, Vapi, Valsad-396195, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
29.05.1969 |
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Com. Reg. No.: |
04-1588 |
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Capital
Investment / Paid-up Capital : |
Rs. 50.949 Millions |
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CIN No.: [Company
Identification No.] |
L24219GJ1969PLC001588 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTU00398G |
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PAN No.: [Permanent
Account No.] |
AAACU7680D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
Stock Exchange. |
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Line of Business : |
Manufactures and markets agricultural products and
chemicals |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (35) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 8000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Though the company
has not recorded any sales in the current year, the networth appears to be
satisfactory. Trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some
caution. |
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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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India |
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 : |
11, GIDC, Vapi, Valsad-396195, |
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Tel. No.: |
91-260-2400717 |
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Fax No.: |
91-260-2401823 |
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E-Mail : |
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Administrative Office : |
UNIPHOSE House, C.D Marg, Khar (West), Mumai-400052, |
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Tel. No.: |
91-22-26468000 |
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Fax No.: |
91-22-26401010 |
DIRECTORS
AS ON : 31.03.2011
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Name : |
Mr. R D Shroff |
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Designation : |
Non-Executive Chairman and Managing Director |
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Name : |
Mrs. S R Shroff |
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Designation : |
Non-Executive Vice Chairman |
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Name : |
Mr. J R Shroff |
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Designation : |
Director |
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Name : |
Mr. A C Ashar |
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Designation : |
Director |
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Name : |
Mr. Pradeep Goyal |
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Designation : |
Director |
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Name : |
Mrs. Swati S. Mayekar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. K M Thacker |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufactures and markets agricultural products and
chemicals |
GENERAL INFORMATION
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No. of Employees : |
Not
Available |
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Bankers : |
·
Canara Bank ·
HDFC Bank Limited ·
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S V Ghatalia and Associates Chartered Accountant |
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Partnership Firms : |
1.
Akruti Products 2.
Sarjan Chemicals 3.
Prakriya Pharmachem 4.
Urja Chemicals 5.
UPL India 6.
Pot Plants 7.
Ultima Search |
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Trust : |
1. Jai Trust 2. Jewel Trust 3. Victory Trus |
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Associates Companies : |
1.
United Phosphorus Limited 2.
Nerka Chemicals Private Limited 3.
SWAL Corporation Limited 4.
Advanta India Limited 5.
Demuric Holdings Private Limited 6.
Unicorn Seeds Private Limited |
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Group Companies : |
1.
Aconcagua Holding B.V. 2.
Advanta India Limited 3.
Agraja Properties Limited 4.
Agrinet Solutions Limited 5.
Amytree Limited (BVI) 6.
Archana Overseas Private Limited 7.
Bharuch Airport Infrastructure Private Limited 8.
Bharuch Enviro Infrastructure Limited 9.
Bloom Industrial Plastics Private Limited 10.
Bloom Packaging Private Limited 11.
Bloom Seal and Containers Private Limited 12.
Coimbatore Integrated Waste 13.
Management Co. Private Limited 14.
Daman Ganga Pulp and Papers Private Limited 15.
Demuric Holdings Private Limited 16.
Entrust Environment Limited 17.
Enviro Technology Limited 18.
Esthetic Finvest Private Limited 19.
Floratrip Limited (BVI) 20.
Force Aviation Private Limited 21.
Gharpure Engineering and Constructions Private
Limited 22.
Heline Environment Private Limited 23.
Hexspun Limited (BVI) 24.
Isar Builders and Developers Private Limited 25.
Kerala Enviro Infrastructure Limited 26.
Khagay Environment Private Limited 27.
Khaline Environment Private Limited 28.
Latur Water Supply Management Co. Limited 29.
Mrugal Properties Limited 30.
Nerka Chemicals Private Limited 31.
Nivi Trading Limited 32.
Orizaba Holding Cooperative U.A 33.
Praskand
Environment Private Limited 34.
R. Shroff Consultants Private Limited 35.
Sanguine Holdings Private Limited 36.
Seiko Properties Private Limited 37.
Sharvak
Environment Limited 38.
Shatataraka Holdings Private Limited 39.
Shivalik Solid Waste Management Limited 40.
Shroff Envirotral Private Limited 41.
Shroffs United Chemicals Limited 42.
Squaredip Inc (BVI) 43.
SWAL Corporation Limited 44.
Tatva Clean Tech Private Limited 45.
Tatva Global Environment Limited 46.
Tatva Global Environment (Deonar) Limited 47.
Tatva Global Renewable Energy Co. Private Limited 48.
Tatva Global Water Technologies Private Limited 49.
Timberlane PTE. Limited 50.
Uniphos Agro Industries Limited 51.
Uniphos (Cayman Islands) 52.
Uniphos (Cyprus) Limited 53.
Uniphos Envirotronic Private Limited 54.
United Phosphorus (Cayman Islands) 55.
United Phosphorus Limited 56.
UPL Djai Power Limited 57.
UPL Environmental Engineers Limited 58.
UPL Investment Private Limited 59.
Venture Drive Limited (Cayman Islands) 60.
Vyom Finvest Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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150000000 |
Equity Shares |
Rs. 2/- each |
Rs. 300.000 Millions |
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7000000 |
Preference Shares |
Rs. 100/- each |
Rs. 700.000 Millions |
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Total |
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Rs. 1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
25474670 |
Equity Shares |
Rs. 2/- each |
Rs. 50.949
Millions |
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Notes:
1. Of the above Equity Shares of Rs.2 each
fully paid-up:
(a) 1,74,87,335 (Previous year : 1,74,87,335) Equity
Shares have been allotted by way of Bonus Shares by capitalisation of General
Reserve.
(b) 50,000 (Previous year : 50,000) Equity
Shares have been allotted pursuant to a scheme of amalgamation, without
payments being received in cash.
(c) 45,95,835 (Previous year : 45,95,835)
Equity Shares have been allotted on partial conversion of Secured Redeemable
Convertible Debentures in pursuance of the terms of issue of the said
Debentures.
(d) 9,00,000 (Previous year : 9,00,000) Equity
Shares have been allotted in respect of warrants issued to the promoters.
2. The rights in respect of 1,015 (Previous
year : 1,015) Equity Shares of Rs. 10 each arising out of part conversion of
17% Secured Redeemable Partly Convertible Debentures and 1,015 (Previous year :
1,015) Equity Shares arising as a result of
issue of Bonus Shares have been kept in abeyance under Section 206A of
the Companies Act, 1956.
3. There are 45,532 (Previous Year : 79,052) underlying
Equity Shares of the Company in respect of GDR listed on Luxemburg Stock
Exchange
.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
50.949 |
50.949 |
50.949 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1948.452 |
516.780 |
318.331 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1999.401 |
567.729 |
369.280 |
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LOAN FUNDS |
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1] Secured Loans |
727.500 |
740.000 |
0.090 |
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2] Unsecured Loans |
2.000 |
2.000 |
3.712 |
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TOTAL BORROWING |
729.500 |
742.000 |
3.802 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2728.901 |
1309.729 |
373.082 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1739.450 |
287.274 |
281.545 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
774.857 |
775.433 |
777.350 |
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DEFERREX TAX ASSETS |
0.000 |
0.043 |
0.043 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
0.000
|
0.000 |
0.000 |
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Cash & Bank Balances |
9.717
|
37.381 |
1.012 |
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Other Current Assets |
0.000
|
0.000 |
126.389 |
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Loans & Advances |
206.980
|
220.112 |
215.031 |
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Total
Current Assets |
216.697
|
257.493 |
342.432 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
5.184
|
10.514 |
1028.288 |
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Sundry Creditors |
0.000
|
0.000 |
0.000 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total
Current Liabilities |
5.184
|
10.514 |
1028.288 |
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Net Current Assets |
211.513
|
246.979 |
[685.856] |
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MISCELLANEOUS EXPENSES |
3.081 |
0.000 |
0.000 |
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TOTAL |
2728.901 |
1309.729 |
373.082 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
0.000 |
0.000 |
0.000 |
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Other Income |
51.462 |
39.643 |
41.071 |
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TOTAL (A) |
51.462 |
39.643 |
41.071 |
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Less |
EXPENSES |
|
|
|
|
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Administrative and other Expenses |
8.363 |
15.448 |
11.121 |
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Exceptional Items |
0.000 |
(273.610) |
(138.635) |
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TOTAL (B) |
8.363 |
(258.162) |
(127.516) |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
43.099 |
297.805 |
168.587 |
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Less |
FINANCIAL
EXPENSES (D) |
60.777 |
63.898 |
104.271 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(17.678) |
233.907 |
64.316 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
0.606 |
1.958 |
1.758 |
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|
PROFIT BEFORE
TAX (E-F) (G) |
(18.284) |
231.949 |
62.558 |
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|
|
|
|
|
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Less |
TAX (H) |
0.043 |
33.500 |
2.099 |
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|
PROFIT AFTER TAX
(G-H) (I) |
(18.327) |
198.449 |
60.459 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
200.276 |
1.827 |
NA |
|
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BALANCE CARRIED
TO THE B/S |
181.948 |
200.276 |
1.827 |
|
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|
|
|
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|
Earnings Per
Share (Rs.) |
(0.72) |
7.79 |
2.37 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
0.000 |
0.000 |
|
Total Expenditure |
1.630 |
1.340 |
|
PBIDT (Excl OI) |
(1.630) |
(1.340) |
|
Other Income |
0.002 |
50.560 |
|
Operating Profit |
(1.610) |
49.220 |
|
Interest |
21.390 |
19.690 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
(23.000) |
29.530 |
|
Depreciation |
0.140 |
0.140 |
|
Profit Before Tax |
(23.140) |
29.390 |
|
Tax |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
(23.140) |
29.390 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
(23.140) |
29.390 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(35.61)
|
500.59 |
147.21 |
|
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|
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Return on Total Assets (PBT/Total Assets} |
(%) |
(0.93)
|
42.57 |
10.03 |
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.40 |
0.17 |
|
|
|
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|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.36
|
1.32 |
2.79 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
41.80
|
2.61 |
0.33 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONAL
PERFORMANCE
During the year, there were no sales. Other income was Rs.51.462
millions as compared to Rs. 39.644 millions
in the previous year. The Company has suffered loss of Rs. 18.328
millions after tax as compared to profit of Rs. 198.449 millions in the
previous year.
FUTURE OUTLOOK
The Company is exploring the
opportunities of trading in chemicals and looking out for good proposals
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT:
The Company is engaged only in trading activities.
SEGMENTWISE
PERFORMANCE:
The Company operates in a single segment, viz. trading activities.
CONTINGENT
LIABILITIES :
(Rs.
In Millions)
|
Particulars |
31.03.2011 |
|
|
|
|
Disputed Income-tax Liability |
280.066 |
|
|
|
FIXED ASSETS:
·
Land
·
Building
·
Vehicles
AS PER WEBSITE DETAILS
BUSINESS
DESCRIPTION
Uniphos Enterprises Limited is an India-based company engaged
in the business of trading of chemicals. As of August 31, 2010, the Company
conducted no trading activities. The Company focuses its activities on the
trading of chemicals, import and export of engineering goods, agricultural
products and various other items. The Company, together with the group company,
Uniphos Agro Industries Limited owns such products, as Acetone, Acetic Acid
Glacial, Acetamide, 4-4 Diamino Benzsulfanilide, 4 Sulfo Anthranillic Acid and
2,4 Dichlorophenol, as well as other products. For the nine months ended 31
December 2010, Uniphos Enterprises Limited revenues increased 26% to 50M. Net
loss totaled RS3.4M, vs. a loss of RS216.7M. Revenues reflect increase in other
income. Net loss was offset by an increase in employees cost, higher
depreciation charges and the absence of gain from exceptional item. Uniphos
Enterprises Limited is engaged in production & distribution of Chemicals,
import & export of Engineering goods.
RAJJU D. SHROFF - CHAIRMAN OF THE BOARD, MANAGING DIRECTOR –
CHAIRMAN
Mr. Rajju D. Shroff is the Chairman of the Board, Managing
Director of Uniphos Enterprises Limited He has been member of the Company's
Board of Directors since October 1, 2003. He holds 11 other directorships and
one committee chairmanship
SANDRA R. SHROFF - NON-EXECUTIVE VICE CHAIRMAN OF THE
BOARD - VICE-CHAIRMAN
Ms. Sandra R. Shroff is the Non-Executive Vice Chairman of
the Board of Uniphos Enterprises Limited She has been Member of the Board of
the Company since October 1, 1992. She holds nine other directorships.
A. C. ASHAR - INDEPENDENT NON-EXECUTIVE DIRECTOR -
DIRECTOR/BOARD MEMBER
Mr. A. C. Ashar is an Independent Non-Executive Director of
Uniphos Enterprises Limited since March 1, 1993. He holds 13 other
directorships
PRADEEP VEDPRAKASH GOYAL - INDEPENDENT NON-EXECUTIVE DIRECTOR
- DIRECTOR/BOARD MEMBER
Mr. Pradeep Goyal is an Independent Non-Executive Director
of Uniphos Enterprises Limited since March 29, 2001. He holds seven other
directorships and two committee memberships. He holds a Masters degree from
Massachusetts Institute of Technology and a degree in Metallurgical Engineering
from Indian Institute of Technology, Chennai
RAJJU D. SHROFF - CHAIRMAN OF THE BOARD, MANAGING
DIRECTOR - MANAGING DIRECTOR
Mr. Rajju D. Shroff is the Chairman of the Board, Managing
Director of Uniphos Enterprises Limited He has been member of the Company's
Board of Directors since October 1, 2003. He holds 11 other directorships and
one committee chairmanship
PRESS
RELEASE
DGCEI
DETECTS RS. 1810.000 MILLIONS CR TAX EVASION IN 2011-2012
DNA (DAILY NEWS AND ANALYSIS)
11 JANUARY 2012
BY DNA CORRESPONDENT
The
A'bad zonal unit of the Directorate General of Central Excise Intelligence
(DGCEI) has detected in all service tax evasion of Rs1812.200 millions during
the year 2011-12 (up to December 2011). So far Rs763.800 millions has been recovered against the evasion. Of
the total evasion detected, evasion by 15 companies was found in the last four
months. Some of the names include Petronet LNG, United Phosphorus Limited and
Cadila Pharmaceuticals etc. A service tax evasion of Rs37.700 millions was
detected from Petronet LNG which had paid commission to its bankers to obtain
external commercial borrowings. But the company failed to pay the service tax
payable on it. A tax evasion of Rs33.800 millions was demanded from United
Phosphorus, Bharuch which wrongly availed the CENVAT credit of service tax paid
on banking services. In case of Cadila Pharmaceuticals, Dholka, the company had
taken the services of air travel agents, consultants etc from its foreign
service providers and paid them for the fares. However, it failed to pay the
service tax on the same under the reverse charge mechanism. The matter is still
under investigation. Earlier the company had voluntarily paid service tax of
Rs37,51,929 for an exemption it had wrongly availed.
RESTORING
GORAI TO ITS FORMER PRISTINE GLORY; THE OVERFLOWING GARBAGE DUMPING GROUND IS
NOW A PICTURE OF LUSH, VERDANT GREENERY
DNA (DAILY NEWS AND ANALYSIS)
01 JANUARY 2012
BY TEAM DNA
Gorai
is considered to be is one of the most beautiful areas of the city. However,
around four years ago, the residents in the vicinity of Gorai creek were
plagued by the non-stop stench coming from the dumping ground nearby. The bad
odour marred the beauty of Gorai.
However,
the present scenario is totally different. One can breathe freely even while
standing on the dumping ground itself. Visitors can now really enjoy the
spectacular sunset views of the creek and the pagoda on the opposite shore.
This is because of the BMC's decision to cover the dumping ground and build a
green zone over it.
This
dumping ground was formed on 19.4 hectares of land at Gorai during 1972. The
area was hardly populated then. Everyday 2200 tons of garbage used to get
dumped here. But its capacity diminished after 35 years of continuous use.
Though no garbage was dumped on this ground after December, 31, 2007, it still
had 2.34 million tons of garbage lying there. The population of Gorai that had
increased by leaps and bounds over the years, was quite upset by this ugly
sight and the foul odour emitted from the ground.
Many
even continued to use the dumping ground. The solid wastes had formed 26 meter
tall piles. Finally, the municipal corporation decided to cover the dumping
ground in a scientific manner. IAL & FS Ltd were appointed as the project
managers and the work contract of covering the dumping ground was assigned to
United Phosphorus Limited and Wandervile Strotsgas B.V. Company. This was the
first-of-its-kind project to be implemented in Gorai.
Previously,
a Nature Park was created on the Mahim dumping ground. But that project was far
less technically advanced as compared to this one in Gorai.
The
garbage at Gorai was covered with liner and the use of HDPE and Geo-liner was
mainly done for this purpose. Similarly, layers of soil were also positioned
and flowering plants and grass were planted on it. The lower layer was also
given consideration. Two pipelines have been fixed to take the gas and the
water of the garbage away from the ground. Currently, this gas is burnt in the
connected machine. A wall has been built around the creek to prevent it from
getting contaminated. The BMC has plans to produce electricity from the methane
gas and is expected to get additional CER from this procedure.
The
residents of this area are a happy lot. The improved environment of the sea has
made fishing better for the fishermen. Mumbai has got additional 19 hectares of
green land as well.
RICHIE
RICH OF GUJ TAKE A PAY CUT, MILLIONS IN SALARIES; PANKAJ PATEL, CMD OF CADILA
HEALTHCARE, IS THE HIGHEST PAID DIRECTOR IN GUJARAT
DNA (DAILY NEWS AND ANALYSIS)
20 NOVEMBER 2011
BY HIMANSH DHOMSE
The enterprising 'billionaires' club' in Gujarat needless to say takes
home a mouth-watering pay package. But now the downturn, has forced even the
promoters of these companies to reconcile themselves to the market situation
and take a pay cut.
Despite the cut, their salaries continue to be mind-boggling.
According to figures put in the public domain, the highest salary for a
Gujarat-based promoter is Rs250.000 Millions.
Promoter of Zydus Group and CMD of Cadila Healthcare, Pankaj
Patel, despite a cut of 12.69% in salary, leads the pack to remain the highest
paid director of Gujarat with a remuneration of Rs249.700 millions in 2010-11.
Significantly, his remuneration includes salary and commission and doesn't
include dividend. If added, this will considerably shoot up his take home pay.
Despite the pay cut, the difference between Patel's salary and the
second highest paid promoter is more than 60%. The second highest paid promoter
is Samir Mehta, the promoter of Torrent Group, who runs the pharmaceutical
business of the group.
Mehta got a 75% hike in his salary in 2010-11 and earned Rs101.300
millions.
Sixty five-year-old Markand Bhatt, who got an extension
post-retirement as whole-time director with Torrent Power, has also seen a cut
of 53.44% in his salary. In 2009-10, Bhatt stood second among the highest paid
directors with Rs215.000 millions, which has come down to Rs100.100 millions in
2010-11.
Sudhir Mehta, another Torrent Group promoter, who runs the power
business, has seen his salary go up by 45%. He was drawing Rs100.000 millions
in 2010-11.
Though Patel of Zydus Group cut his salary by 12.69%, his son's
pay increased 9 times.
Sharvil Patel, the deputy managing director of the group, has seen
a 800% rise in salary from Rs11.000 millions in 2009-10 to Rs98.700 millions in
2010-11. Interestingly, the father-son duo take home 17% more remuneration in
2010-11 compared to the previous year. Interestingly, Sharvil Patel seems to be
drawing more salary than Gautam Adani of Adani Group and Sanjay Lalbhai of
Arvind Limited.
The executive director and CFO of Adani Group, Devang Desai has
seen highest growth in his salary. Desai, who was drawing around Rs1.900
millions till 2009-10, has seen 2,657% jump in his salary. He earned Rs52.400
millions in 2010-11.
Prakash Sanghvi, CMD of Ratnamani Metals and Tubes Limited too had
cut his salary by 23% from Rs70.800 millions in 2009-10 to Rs54.500 millions in
2010-11. The promoters of United Phosphorus Limited, father and son, Rajju
Shroff and Vikram Shroff draw around Rs5.43 crore to Rs48.300 millions per
annum. Gautam Adani and Rajesh Adani, promoters of Gujarat's richest group,
Adani Group, have kept their salaries low in 2010-11. However, their earnings
go up substantially when company's dividends are taken into consideration. In
2010-11, Gautam Adani cut his salary to Rs15.600 millions in 2010-11 from
Rs36.200 millions in 2009-10, a reduction of 57%.
Dishman Pharmaceuticals, which has seen consistent fall in its net
profit, has reduced its promoter's salary by 38%. JR Vyas, who was drawing
Rs39.600 millions in 2009-10, took home Rs24.300 millions in 2010-11. Sanjay
Lalbhai, promoter of the world's largest denim maker, Arvind Limited has turned
around the company from a loss-making entity to a profit-making unit. He has
seen growth of 55% in salary from Rs17.200 millions in 2009-10 to Rs26.600
millions in 2010-11. Experts believe that directors remuneration reflect the
market situation.
"The FMCG and pharmaceutical companies have performed well in
2010-11. Hence, directors of these companies have got hefty hikes. While in
other sectors, the growth is much less and gets reflected in the director's
pay," said associate vice-president of India Infoline Limited, Mahendra
Prajapati.
AT
UNITED PHOS, A MARGIN CATCH-UP; A STRING OF ACQUISITIONS OVER THE PAST 10 YEARS
PUMP UP TOPLINE, BUT COSTS SOAR TOO
DNA (Daily News and Analysis)
01 November 2011
By Promit Mukherjee
United Phosphorus, a Gujarat-based Rs.29000.000 millions crop
protection company, finds itself in an unenviable position. The push to drive
up sales is facing some pressure from an unlikely quarter - dwindling
profitability. And a way out currently doesn't look that easy.
The company, which had gone for a raft of acquisitions in the past
10 years, had seen its sales and PAT numbers grow at a compounded annual growth
rate (CAGR) of approximately 27%. But its PAT margins and return on equity
(RoE) languished, which came in much lower compared with its peers.
In the past seven years, its average PAT margin stood at around
10% and RoE at an average of 9%. When compared with Rallis India, a Tata Group
crop protection company and a subsidiary of Tata Chemicals, the numbers of
United Phosphorus look substantially dwarfed. For Rallis India, the average PAT
margin was 19% and the RoE 25% in the same seven years under review.
In fact, Sageraj Bariya, managing partner of Equitorials, an
independent research house, said going forward, PAT and PAT margins of the
company will continue to stay under pressure. Besides, its share price and
margins have also not moved in tandem with sales.
"In the past ten years, the company had acquired over 24
companies worldwide which has increased its topline numbers very rapidly, but
at the same time it has put pressure on its margins and profitability, of
late," he said.
Going ahead, the management still feels that the company will
continue to post robust sales numbers by virtue of its entry into the Latin
American market through the acquisition of Brazilian company DVA, but admitted
that its margins will be under pressure.
During a conference call held recently after United Phosphorus
declared its Q2 FY12 numbers, S Krishnan, chief financial officer, said:
"Seeing the significant volume growth that the business has seen over the
last two quarters and the transaction that we did in Brazil recently, we
believe the business in terms of revenue growth will grow possibly even
higher.... anywhere in the region of 30 to 35%."
However, he added there are challenges in terms of managing
working capital and margins and would manage to keep an earnings before
interest, taxes, depreciation, and amortisation (Ebitda) margin in the region
of around 19% to 20%.
However, analysts are largely upbeat about the prospects of the
company in the short term, which explains their 'buy' rating. "We are now
building in 31.5% y-o-y revenue growth in FY12F and 15% in FY13F with half the
growth in FY12F driven organically," said Aatash Shah and Vineet Verma
from international brokerage Nomura Equity Research in their latest report.
Analysts Rohan Gupta and Balwindar Singh from brokerage Emkay
Global said they have revised their revenue estimates to reflect higher revenue
contribution from DVA acquisition and higher volume growth being witnessed in
Latin American markets.
UN-AUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 30TH JUNE,
2011
(Rs. In millions)
|
Particulars |
Quarter Ended 30.06.2011 (unaudited) |
|
(a) Net Sales/ Income from
operation |
-- |
|
(b) Other Operating Income |
-- |
|
Total Income |
-- |
|
2. Expenditure |
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
-- |
|
b. Consumption of Raw-Materials |
-- |
|
c. Purchase of Traded Goods |
-- |
|
d. Employees Cost |
0.668 |
|
e. Depreciation |
0.143 |
|
f. Other Expenditure |
0.961 |
|
g. Total |
1.772 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
(1.772) |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
0.017 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
(1.755) |
|
6. Interest |
21.385 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
(23.140) |
|
8. Exceptional Items |
-- |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
(23.140) |
|
10. Tax Expenses |
-- |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
(23.140) |
|
12. Extraordinary Items |
-- |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
(23.140) |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
50.949 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
|
|
16. Earning per Share (EPS) |
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
(0.91) |
|
b) Basic and diluted EPS after extraordinary items for the period,for
the year to date and for the previous year (not annualised) |
(0.91) |
|
17. Public Shareholding |
|
|
Number of Shares |
13875927 |
|
% of Share holding |
54.47% |
|
18. Promoters and promoter group Shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of shares |
-- |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
-- |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
-- |
|
b) Non-encumbered |
|
|
- Number of shares |
11598743 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
100.00% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
45.53% |
Notes :
1. The above unaudited financial results were reviewed by the Audit
Committee and thereafter approved at the meeting of the Board of Directors held
on 29th July, 2011 and the same has been subjected to a limited review by the Statutory
Auditors of the Company
2. The details of investors' complaints (as informed by Sharepro Services,
Registrar and Transfer Agent of the Company) : There were no investors'
complaints pending at the beginning of the quarter. The Company has not received
an complaint during the quarter from the
investors. There were no complaints
lying unresolved at the end of the quarter.
3. The Company does not have any reportable segment.
4. The Board of directors of the Company in it's meeting held on December
23, 2010 has approved to issue equity shares of face value of Rs. 2 each on
rights basis to the existing shareholders for the amount not exceeding Rs.
750.000 millions ("Rights Issue"). In connection with the proposed
Rights Issue, the Company has filed draft letter of offer with the Securities
and Exchange Board of India
("SEBI") on December 31, 2010, which is awaiting their
decision.
5. Previous period's/year's figures have been regrouped/ rearranged wherever
necessary
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.50.32 |
|
|
1 |
Rs. 77.96 |
|
Euro |
1 |
Rs. 65.30 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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.