MIRA
INFORM REPORT
|
Report Date : |
05.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA BIRLA CHEMICALS ( |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
20.07.1976 |
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Com. Reg. No.: |
03-001255 |
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Capital
Investment / Paid-up Capital : |
Rs.233.865 Millions |
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CIN No.: [Company Identification
No.] |
L24100JH1976PLC001255 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
RCHB00299F |
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PAN No.: [Permanent Account No.] |
AAACB7747A |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on the
Stock Exchange. |
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Line of Business
: |
Manufacturer of Bulk and Speciality Chemicals. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 14000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having fine track.
Financial position of the company appears to be good. Trade relations are
reported as fair. Business is active. Payments are reported to be regularly
and as per commitments. The company can be considered good for normal business dealings at
usual trade 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) |
|
|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office / Factory : |
Garhwa Road, P.O. Rehla, Palamau – 822124, Jharkhand,
India |
|
Tel. No.: |
91-6584-262211 / 262221 / 262488 |
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Fax No.: |
91-6584-262491 / 262205 |
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E-Mail : |
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Website : |
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Renukoot Chemical
Division: |
Renukoot Chemical Division, P. O. Renukoot, District –
Sonbhadra 231217, |
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Tel. No.: |
91-5446-252044 / 55 / 75 |
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Fax No.: |
91-5446-252088 |
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E-Mail : |
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Branch offices : |
Located At · Mumbai · Kolkata · Delhi ·
Ranchi |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. A. K. Agarwala |
|
Designation : |
Director |
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|
Name : |
Mr. Biswajit Choudhuri |
|
Designation : |
Director |
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|
Name : |
Mr. J. C. Chopra |
|
Designation : |
Director |
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|
Name : |
Mr. P. P. Sharma |
|
Designation : |
Director |
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Name : |
Mr. G. M. Dav |
|
Designation : |
Director |
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|
Name : |
Mr. K. K. Maheshwari |
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Designation : |
Director |
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Name : |
Mr. Lalitkumar S. Naik |
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Designation : |
Director |
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Name : |
Mr. K. C. Jhanwar |
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Designation : |
Director |
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Name : |
Mr. S. S. Gupta |
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Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Akash Mishra |
|
Designation : |
Company Secretary |
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Name : |
Mr. Lalit Naik |
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Designation : |
Business Head |
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Name : |
Mr. K. C. Jhanwar |
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Designation : |
Group Executive President |
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Name : |
Mr. Raj Narayanan |
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Designation : |
Senior President Epoxy |
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Name : |
Mr. M. P. Pathak |
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Designation : |
President |
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Name : |
Dr. Bir Kapoor |
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Designation : |
President |
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Name : |
Mr. Suresh Sodani |
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Designation : |
President |
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|
Name : |
Mr. P. K. Dubey |
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Designation : |
President |
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Name : |
Mr. Gerard D’Cunha |
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Designation : |
Chief People Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
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|
|
|
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|
13,169,987 |
56.31 |
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|
13,169,987 |
56.31 |
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Total
shareholding of Promoter and Promoter Group (A) |
13,169,787 |
56.31 |
|
(B)
Public Shareholding |
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|
Mutual
Funds / UTI |
1,500 |
0.01 |
|
Financial
Institutions / Banks |
2,500 |
0.01 |
|
Central
Government / State Government(s) |
2,032,000 |
8.69 |
|
Foreign
Institutional Investors |
2,448,040 |
10.47 |
|
|
4,484,040 |
19.17 |
|
|
492,787 |
2.11 |
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|
|
|
|
|
3,239,730 |
14.24 |
|
|
1,788,235 |
7.65 |
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|
121,631 |
0.52 |
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|
109,347 |
0.47 |
|
Clearing Members |
12,284 |
0.05 |
|
|
5,732,473 |
24.51 |
|
Total
Public shareholding (B) |
10,216,513 |
43.69 |
|
Total
(A)+(B) |
23,386,500 |
100.00 |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
|
|
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|
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
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Total
(A)+(B)+(C) |
23,386,500 |
100.00 |
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Bodies Corporate%20LIMITED%20-%20182491%2005-Jun-2012_files/image004.gif){kind=small}
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Bulk and Speciality Chemicals. |
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Products : |
· Chlor-alkali · Chlorine derivatives · Epoxy resins · Peroxides · Phosphates · Sulphites · VFY
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Brand Names : |
· Aryafin · Kanofin · Multi-100 (seafood) · RGS · Combimate 35 · Kanpac · Oxywhite · Shaktiman · Corino · Lion · Oxywhite remelt · TetraMate 35 · Epotec · Multi-5 · Pearl · Vikram · Gusto · Multi-100 (poultry) · Ray one ·
Vikram PAC |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity * |
Actual
Production *** |
|
Caustic Soda (100% NaOH) |
MT |
105000 |
98343 |
|
Liquid Chlorine |
MT |
63000 |
57132 |
|
Hydrochloric Acid (HCL) |
MT |
43750 |
57710** |
|
Sodium Hypo Chlorite (Lye weight) |
MT |
18000 |
13080 |
|
Aluminium Chloride |
MT |
10000 |
10370 # |
|
Compressed Hydrogen |
NM3 |
60000 |
7776 |
|
Stable Bleaching Powder (SBP) |
MT |
17520 |
9094 |
|
Electricity (Thermal Power) |
MW/Hour |
30 |
28.16 |
* The installed capacity is as certified by the management and licensed capacity is not given as licensing has been abolished
** Production of HCL is made on 33% basis
*** Actual Production is net of Captive/ Auxiliary consumption except for generation of electricity
# Production of Aluminium Chloride includes its production on job work basis by outside parties
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Central Bank of India · HDFC Bank Limited · State Bank of India · Axis Bank Limited ·
IDBI Bank Limited |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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STATUTORY AUDITORS
: |
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|
Name : |
Himji Kunverji and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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COST AUDITORS : |
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Name : |
S. Gupta and Company Cost Accountants |
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Address : |
Kolkata, West Bengal, India |
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Holding Company : |
Hindalco Industries Limited |
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Subsidiaries : |
· Aditya Birla Minerals Limited · Al Dotcom Sdn. BHD. · Albrasilis - Aluminio do Brasil Industria Comercia Ltda · Alcom Nikkei Specialty Coatings Sdn Berhad · Aluminum Company of Malaysia Berhad · Aluminum Upstream Holdings LLC · Aluminium Norf GmbH · AV Aluminium Inc, Canada · AV Metals Inc, Canada · AV Minerals BV, Netherland · Birla Maroochydore Pty Limited · Birla Mt Gordon Pty Limited · Birla Nifty Pty Limited · Birla Resources Pty Limited · Consórcio Candonga (Unincorporated Joint Venture) · Dahej Harbour and Infrastructure Limited · Deutsche Aluminium Verpackung Recycling GmbH(J-V) · East Coast Bauxite Mining Company Private Limited · Eurofoil, Inc. · Evermore Recycling LLC · France Aluminium Recyclage SA · Hindalco - Almex Aerospace Limited · HAAL (USA) Inc · Indal Exports Limited · Logan Aluminium Inc. · Lucknow Finance Company Limited · Mauda Energy Limited · Minerals and Minerals Limited · Mini MRF LLC (J-V) · Novelis Acquisitions LLC · Novelis North America Holdings Inc. · Novelis (India) Infotech Ltd. · Novelis AG · Novelis Aluminium Beteiligungsgesellschaft mbH · Novelis Aluminium Holding Company · Novelis Belgique SA · Novelis Brand LLC · Novelis Benelux NV · Novelis Corporation (Texas) · Novelis Cast House Technology Limited · Novelis Deutschland GmbH · Novelis de Mexico SA de CV · Novelis Europe Holdings Limited · Novelis do Brasil Ltda · Novelis Inc. · Novelis Foil France SAS · Novelis Korea Limited · Novelis Italia SpA · Novelis Luxembourg SA · Novelis Lamines France SAS · Novelis No. 1 Limited Partnership · Novelis Madeira, Unipessoal, Lda · Novelis PAE SAS · Novelis PAE Corporation · Novelis South America Holdings LLC · Novelis Services Limited · Novelis Technology AG · Novelis Switzerland SA · Novelis UK Limited · Renuka Investments and Finance Limited · Renukeshwar Investments and Finance Limited · Suvas Holdings Limited · Tubed Coal Mines Limited · Utkal Alumina International Limited · 4260848 Canada Inc. · 4260856 Canada Inc. |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24500000 |
Equity Shares |
Rs.10/- each |
Rs.245.000 Millions |
|
50000 |
11% Redeemable Cumulative Preference Shares (Free of Company's Tax but subject to deduction of tax at source at the prescribed rates and redeemable at par between 7 to 10 years from the date of allotment by giving three months notice in writing). |
Rs.100/- each |
Rs.5.000 Millions |
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23386500 |
Equity Shares |
Rs.10/- each |
Rs.233.865
Millions |
|
|
|
|
|
(12004987 shares are held by Hindalco Industries Limited (Holding Company), 775000 shares are held by Renuka Investment and Finance Limited (Subsidiary of Hindalco Industries Limited).
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 |
233.865 |
233.865 |
233.865 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3286.611 |
2659.704 |
2165.664 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3520.476 |
2893.569 |
2399.529 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
260.506 |
437.964 |
457.576 |
|
|
2] Unsecured Loans |
1.040 |
2.580 |
4.140 |
|
|
TOTAL BORROWING |
261.546 |
440.544 |
461.716 |
|
|
DEFERRED TAX LIABILITIES |
359.357 |
356.132 |
343.106 |
|
|
|
|
|
|
|
|
TOTAL |
4141.379 |
3690.245 |
3204.351 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2407.173 |
2536.156 |
2685.261 |
|
|
Capital work-in-progress |
141.271 |
27.247 |
14.007 |
|
|
|
|
|
|
|
|
INVESTMENT |
460.236 |
309.374 |
3.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
195.555
|
208.111 |
111.325 |
|
|
Sundry Debtors |
253.637
|
249.541 |
205.538 |
|
|
Cash & Bank Balances |
630.179
|
452.467 |
299.712 |
|
|
Other Current Assets |
24.614
|
19.699 |
7.958 |
|
|
Loans & Advances |
257.149
|
222.394 |
308.457 |
|
Total
Current Assets |
1361.134
|
1152.212 |
932.990 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
154.458
|
207.042 |
307.794 |
|
|
Other Current Liabilities |
22.918
|
24.185 |
47.231 |
|
|
Provisions |
51.059
|
103.517 |
81.982 |
|
Total
Current Liabilities |
228.435
|
334.744 |
437.007 |
|
|
Net Current Assets |
1132.699
|
817.468 |
495.983 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
6.100 |
|
|
|
|
|
|
|
|
TOTAL |
4141.379 |
3690.245 |
3204.351 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2378.313 |
2243.251 |
2048.932 |
|
|
|
Other Income |
151.959 |
191.591 |
68.182 |
|
|
|
TOTAL (A) |
2530.272 |
2434.842 |
2117.114 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
(Increase)/Decrease in stocks |
(1.093) |
7.521 |
0.537 |
|
|
|
Raw Materials consumed |
993.458 |
908.448 |
879.492 |
|
|
|
Manufacturing and other expenses |
376.656 |
351.749 |
219.602 |
|
|
|
Payment to and provisions for employees |
132.214 |
126.878 |
126.620 |
|
|
|
Selling, Distribution, Administration and other expenses |
84.578 |
91.940 |
91.894 |
|
|
|
TOTAL (B) |
1585.813 |
1486.536 |
1318.145 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
944.459 |
948.306 |
798.969 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
26.400 |
35.715 |
55.806 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
918.059 |
912.591 |
743.163 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
203.626 |
200.357 |
187.116 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
714.433 |
712.234 |
556.047 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
87.352 |
104.807 |
95.226 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
627.081 |
607.427 |
460.821 |
|
|
|
|
|
|
|
|
|
|
Adjustment of Taxation for earlier years |
(4.085) |
(72.481) |
5.549 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2151.725 |
1688.056 |
1300.811 |
|
|
|
|
|
|
|
|
|
Less |
Transferred to State Capital Subsidy |
0.000 |
0.000 |
15.042 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
30.371 |
23.041 |
|
|
|
Dividend |
11.693 |
35.080 |
35.080 |
|
|
|
Tax on Dividend |
1.897 |
5.826 |
5.962 |
|
|
BALANCE CARRIED
TO THE B/S |
2761.131 |
2151.725 |
1688.056 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4.778 |
5.023 |
7.938 |
|
|
TOTAL EARNINGS |
4.778 |
5.023 |
7.938 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
42.900 |
29.752 |
151.344 |
|
|
TOTAL IMPORTS |
42.900 |
29.752 |
151.344 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
26.81 |
25.97 |
19.70 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 (1st
Quarter) |
30.09.2011 (2nd
Quarter) |
31.12.2011 (3rd
Quarter) |
31.03.2012 (4th
Quarter) |
|
|
|
|
|
|
|
Net Sales |
1015.340 |
1709.270 |
1739.290 |
1682.140 |
|
Total Expenditure |
674.360 |
1168.750 |
1325.270 |
1349.490 |
|
PBIDT (Excl OI) |
340.980 |
540.520 |
414.020 |
332.650 |
|
Other Income |
16.570 |
19.840 |
25.450 |
51.080 |
|
Operating Profit |
357.550 |
560.360 |
439.470 |
383.730 |
|
Interest |
105.890 |
229.790 |
231.670 |
239.640 |
|
Exceptional Items |
0.000 |
(100.760) |
(123.350) |
(3.300) |
|
PBDT |
251.660 |
229.810 |
84.450 |
140.790 |
|
Depreciation |
88.650 |
149.220 |
159.640 |
142.680 |
|
Profit Before Tax |
163.010 |
80.590 |
(75.190) |
(1.890) |
|
Tax |
94.630 |
74.690 |
(13.310) |
(32.500) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
68.380 |
5.900 |
(61.880) |
30.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
38.380 |
5.900 |
(61.880) |
30.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
24.78
|
49.95 |
21.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.04
|
21.75 |
27.14 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.19
|
19.31 |
15.37 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.25 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.14
|
0.57 |
0.37 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.96
|
3.44 |
2.13 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
OPERATING RESULTS AND
PROFITS
The Company is continuously moving towards its journey of excellence in the Chlor Alkali segment. Despite the increase in input costs such as Power, Coal and other raw materials, the unstable supply of Power from the Grid, the Company has reported an excellent performance in all spheres of its activities.
For the year, the gross turnover was higher by 8.29 % at Rs.2610.700 Millions as compared to Rs.2410.800 Millions in the previous year. Net sales stood at Rs.2362.500 Millions as compared to Rs.2218.600 Millions in the previous year. Profit before tax rose to Rs.714.400 Millions as the against preeceding year's profit at Rs.712.200 Millions. After tax adjustment, the net profit has risen marginally at Rs.627.100 Millions in comparison to Rs.607.400 Millions in the earlier year.
ACQUISITION AND
EXPANSION
The Board of Directors of the Company has approved the acquisition of the Chloro Chemicals Division of Kanoria Chemicals and Industries Limited for a cash consideration of Rs.8300.000 Millions in its meeting held on 16th April 2011. This plant is a state of art facility located at Renukoot, Uttar Pradesh, manufacturing Chlor-Alkalis, Chlorine derivatives and water treatment chemicals. It is highly cost competitive, driven by strengths of the latest manufacturing technology, captive power plants with coal linkage and forward integration into value adding chlorine derivatives. The current annual capacity of caustic soda at the facility is 115,000 TPA. With this acquisition, the total caustic soda capacity of the Company will increase from 105,000 TPA to 220,000 TPA. This transaction takes the Company to a higher growth trajectory.
The transaction will be done on a slump sale basis and is subject to customary corporate and other approvals.
It is expected to be completed towards the end of May 2011. The financing of this transaction will be arranged from internal accruals and borrowings. The limit of borrowings proposed to be enhanced is upto Rs.12000.000 Millions, for which an Extra Ordinary General Meeting of Members of the Company has been called on 17th May 2011.
As informed in last Report about there proposed expansion, the capacity of there Aluminium Chloride Plant has been raised from 25 TPD to 43 TPD through additional reactors, based on the latest technology, with a capital investment of Rs.86.400 Millions.
AWARDS AND ACCOLADES
In recognition of its exemplary work in communities, the Company has bagged the prestigious FICCI Award for "Rural and Community Development" for the year 2009-10. This award was conferred by Shri Pranab Mukherjee, Finance Minister, Govt of India, on Smt. Rajshree Birla, Chairperson, the Aditya Birla Centre for Community Initiatives and Rural Development. The Company's CSR activities are carried out under its umbrella.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
·
INDUSTRY
AND DEVELOPMENT WITH SEGMENTWISE PERFORMANCE AND MARKET OUTLOOK
The Global Caustic Soda Industry has transformed since the financial crisis of 2008. The Caustic Soda industry benefited from rapid economic recovery in particular from China and India. A demand pull from the construction sector helped in demand generation for Chlor-Vinyl products, whereas recovery in Alumina, pulp and paper segments boosted demand for caustic.
The global consumption of Chlor-Alkali increased to 68 Million tons in 2010, an increase of almost 11% over 2009. The global capacity for caustic soda is around 85 million tons, out of this around 55% of the capacity is in Asia.
Chlor-Alkali production in India has increased by 6% to 2.45 million tons in 2010-11. Growth in India is linked to chlorine consumption growth which has been following the growth in Indian GDP. Consumption of Poly Vinyl Chlorine and Chlorinated (two major consuming sectors of chlorine) has witnessed double digit growth and is expected to perform well.
The major driver of caustic demand is Alumina segment wherein large capacities are coming up in the Eastern region. With the acquisition of Chloro Chemical division of Kanoria Chemicals at Renukoot, there Company is planning to utilize the excess captive power available by increasing the caustic capacity further by 145 TPD.
The acquisition of Chloro Chemicals Division of Kanoria Chemicals by there Company is a compelling strategic fit. Given the large expansion plans of Aditya Birla Group's aluminium business in the Eastern region, the deal serves as an excellent sourcing point. The business has potential for growth both in revenues and earnings. The acquisition offers significant potential and infrastructure to expand the business which will serve the increasing demand for caustic soda.
·
FINANCIAL
AND OPERATIONAL PERFORMANCE
1. Financial Performance Highlights
The Gross turnover for the year was higher by 8.29 % at Rs.2610.700 Millions as compared to Rs.2410.800 Millions in the previous year. The profit before interest, depreciation and tax was Rs.944.500 Millions. After providing Rs.26.400 Millions for interest, Rs.203.600 Millions for depreciation and Rs.87.400 Millions for taxes, the net profit for the year was at Rs.627.100 Millions which is higher by 3.24 % over the previous year.
The earning per share was higher at Rs.26.81 compared with Rs. 25.97 in last year and return on shareholders' fund was 17.81% vis-ŕ-vis 20.99 % last year.
2. Operational Performance Highlights
The average production of Caustic and Chlorine for the year 2010-11 has been recorded at the level of 280 TPD of Caustic Soda. During the year, the average power generation was 28.16 MW with a Plant Load factor of 93.87%. The Net Turnover at Rs.2362.500 Millions as compared to Rs. 2218.600 Millions in the previous year reflects a rise of 6.49%. The Company had achieved various milestones including highest ever production of Aluminium Chloride at 26 TPD and highest ever production of Stable Bleaching Powder at 25 TPD. The Company’s good performance is due to the optimum utilization of plant capacity, optimization of process parameters and various cost reduction initiatives.
Interest cost has been lower at Rs.26.400 Millions as compared to Rs.35.700 Millions in the previous year due to scheduled repayment of term borrowings.
The Company continues to pay MAT under Section 115 JB of the IT Act on account of the Tax incentive under Section 80-IA and higher depreciation under Income Tax Act.
CONTINGENT LIABILITIES AND PROVISIONS
Rs. In Millions
|
|
Particular |
31.03.2011 |
31.03.2010 |
|
a) |
i. Annual Minimum Guarantee Electricity charges and delayed payment surcharge thereon against which Rs.10.000 Millions (previous year Rs.10.000 Millions) has been deposited |
645.965 |
640.805 |
|
|
ii. Delayed payment surcharge on the amount of fuel surcharge arrears |
48.063 |
47.913 |
|
b) |
Bank Guarantees outstanding (Against which Rs.46.500 Millions has been deposited as FDR with Banks, Previous year Rs.11.581 Millions) |
76.911 |
27.001 |
|
c) |
Income Tax i. AY 1998-99, 2000-01, ITAT (Appeals) effect Pending with A.O. (Against which Rs.0.932 Million paid) |
1.315 |
1.315 |
|
|
ii. AY 2005-06 for which the Company had filed appeal with CIT (Appeals). CIT (Appeals) order partly allowed certain expenses disallowed earlier against which appeal before ITAT has been filed. |
Nil |
1.980 |
|
|
iii. AY 2002-03 for which the Company has filed appeal with CIT (Appeals). |
0.227 |
0.227 |
|
|
iv. AY 2007-08 for which the Company has filed appeal with CIT (Appeals) and Petition u/s 154 has been filed for considering correct amount of TDS and Advance Tax |
19.702 |
19.702 |
|
|
v. AY 2008-09 for which the Company has filed appeal with CIT (Appeals) and Petition u/s 154 has been filed for considering correct amount of TDS. |
35.732 |
Nil |
|
d) |
Liquidated damage and interest claimed by BSIDC not acknowledged by the Company |
12.916 |
11.514 |
|
e) |
Compensation payable against various labour cases pending with various courts |
15.600 |
15.600 |
|
f) |
Land revenue and Maintenance charges payable to Ranchi Industrial Area Development Authority (RIADA), Ranchi |
1.050 |
1.050 |
The order of Consumer Grievance Redressal Forum relating to Annual Minimum Guarantee case was challenged by JSEB before Ranchi High Court. On hearing, the Ranchi High Court directed JSEB to raise the bill in accordance with the Forum's order subject to final adjudication of pending writ. Complying with Forum's order, JSEB has raised bill which involved a refund of Rs.178.000 Millions to the Company. Since the writ is pending before the Court, contingent liability of Rs.646.000 Millions has been disclosed in the accounts.
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2012
Rs. In Millions
|
Particulars
|
Quarter Ended Unaudited |
Year Ended Audited |
|
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
(a) Net Sales / Income from operations |
1663.401 |
1726.755 |
6090.804 |
|
(b) Other Operating Income |
18.744 |
12.538 |
54.604 |
|
Total Income |
1682.145 |
1739.293 |
6145.408 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
a) Changes in Inventories of finished Goods, Work in
Progress and stock in trade |
40.748 |
(39.103) |
(32.139) |
|
b) Consumption of raw materials |
918.699 |
935.904 |
3164.576 |
|
c) Purchase of traded goods |
3.418 |
7.927 |
11.345 |
|
d) Employees cost |
96.472 |
96.671 |
349.414 |
|
e) Depreciation |
142.684 |
159.639 |
540.194 |
|
f) Other expenditure |
|
|
|
|
i)
Power and Fuel |
124.081 |
135.461 |
373.446 |
|
ii)
Other expenditure |
166.074 |
188.409 |
650.242 |
|
Total |
1492.176 |
1484.908 |
5057.078 |
|
|
|
|
|
|
Profit from operations before other income, interest and
exceptional Items |
189.969 |
254.386 |
1088.330 |
|
Other income |
51.076 |
25.452 |
112.526 |
|
Profit before interest and exceptional Items |
241.044 |
279.838 |
1200.856 |
|
Finance charges |
236.941 |
231.674 |
806.990 |
|
Profit
after Interest but before Exceptional Items |
1.403 |
48.164 |
393.866 |
|
Exceptional Items
|
3.298 |
123.345 |
227.398 |
|
Profit
(+)/Loss(-) from Oridinary Activities before tax |
(1.894) |
(75.181) |
166.468 |
|
Tax expense |
(32.496) |
(13.301) |
123.528 |
|
Net
Profit (+)/Loss(-) from Ordinary Activities after tax |
30.602 |
(61.881) |
42.940 |
|
Paid up equity share capital (Face value of Rs.10/- per
share) |
233.865 |
233.865 |
233.865 |
|
Reserves and reserves |
0.000 |
0.000 |
3368.461 |
|
Debenture Redemption Reserve |
|
|
|
|
Earnings 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 to be annualised) |
1.31 |
(2.65) |
1.84 |
|
(b)
Basic and diluted EPS before Extraordinary items for the
period, for the year to date and for the previous
year (not to be annualised) |
1.31 |
(2.65) |
1.84 |
|
Public shareholding |
|
|
|
|
Number of
shares* |
10216513 |
10216513 |
10216513 |
|
Percentage
of shareholding |
44% |
44% |
44% |
|
|
|
|
|
|
Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
Nil |
Nil |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
Nil |
Nil |
Nil |
|
Percentage of shares (as a % of total share capital of the
company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
13169987 |
13169987 |
13169987 |
|
Percentage of shares (as a % of total shareholding of the promoter
and promoter group) |
100% |
100% |
100% |
|
Percentage of shares (as a % of total share capital of the
company) |
56% |
56% |
56% |
Note;
1) The above audited results have been recommended by the Audit Committee and approved by the Board of Directors at their meeting held on May 11, 2012.
2) Board has recommended dividend @5% i.e. Rs.0.50 per share on Equity Shares of the Company.
3) Provision for current tax (net of MAT credit entitlement) under section 115 J B of income Tax Act as well as for Wealth Tax hat been mode and includes provision for deferred tax of Rs.116.100 Millions in terms requirement of Accounting Standard-22 "Accounting for taxes on Income"
4) The results for the quarter ended March 31.2012 have been arrived at by dedctuing the year-to-date results of earlier three quarters of the financial year from the total results for the financial year
5) Segment Reporting : The company is primarily engaged in the business of Chlor Alkali Chemicals. Since the inherent nature of these activities is governed by the same act of risks and returns, there is no reportable segment.
6) Net sales include sale of Power to State Electricity Board for the amount detailed below :-
Rs. In Millions
|
Particulars
|
Quarter Ended Unaudited |
Year Ended Audited |
|
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
UP State Electricity Board |
8.521 |
30.064 |
169.895 |
|
Jharkhand State Electricity Board |
0.529 |
0.382 |
3.120 |
7) The Company has acquired Chloro Chemicals Division and Salt works of Kanoria Chemicals and Industries Limited (KC1) situated respectively at Renukoot (Uttar Pradesh) and Jhangi (Gujarat) w.e.f. 24th May, 2011 (Effective Date). The results for the current periods include results from Chloro Chemical Division - Renukoot and Salt works - Jhangi and are therefore not comparable with results of the corresponding periods of the previous year.
8) (a) The assets acquired as stated in (7) above are recorded in the books of the Company based on reports of independent valuers and the working capital as at effective date are recorded in the books of the Company based on certified financial statements received from KCI in respect of said divisions.
(b) Out of the aforesaid acquisitions, after the company has identified the Lindane/BHC Plant (which has been shut down for past few yean) and Mercury Plant which are classified as 'assets held for disposal'. Based on the present estimates of the Management in respect of their residual value a provision of Rs 26.22 Lacs (up to previous quarter- Rs 1082.62 Lacs) and a provision of Rs 6.76 Lacs (up to previous quarter- Rs. 1158.38) respectively , being the estimated loss thereon, is made during the quarter under report and has been classified under exceptional item. The Company is also in the process of identifying certain other items of Murcury Ceil Plant which could be put in alternative use and those which need to be discarded. Additional provision, if any required upon consequent disposal of such assets, would be made upon completion of such technical excercjse.
9) Statement of Asset* and Liabilities as at 31st March, 2012
Rs. In Millions
|
Particular |
31.03.2012 |
|
A) EQUITY AND LIABILITIES |
|
|
1) Shareholders Fund |
|
|
a) Share Capital |
233.865 |
|
b) Reserves St Surplus |
3368.461 |
|
|
3602.326 |
|
2) Non-Current Liabilities |
|
|
Long-term Borrowings |
6822.875 |
|
Deferred Tax Liabilities (Net) |
475.442 |
|
Other Long-Term Liabilities |
|
|
Long-term Provisions |
93.060 |
|
|
7391.377 |
|
3) Current Labilities |
|
|
Short-term Borrowings |
252.754 |
|
Trade Payables |
59.674 |
|
Other Current Liabilities |
1562.951 |
|
Short-term Provisions |
41.689 |
|
|
1917.068 |
|
Total |
12910.771 |
|
|
|
|
B) Assets |
|
|
1) Non- Current Assets |
|
|
Fixed Assets |
|
|
a) Tangible Assets |
9314.336 |
|
b) Intangible Assets |
209.706 |
|
c) Capital Work-in-Progress |
362.067 |
|
Non Current investments |
188.396 |
|
Long-term Loans and Advances |
102.344 |
|
Other Non-Current Assets |
319.263 |
|
|
10496.112 |
|
|
|
|
2) Current Assets |
|
|
Current Investments |
0.000 |
|
Inventories |
664.111 |
|
Trade Receivables |
754.405 |
|
Cash and Cash Equivalents |
12.180 |
|
Short Term Loan and Advances |
251.758 |
|
Other Current Assets |
732.204 |
|
|
2414.659 |
|
|
|
|
Total |
12910.771 |
10) Previous period\s Figures have regrouped / rearranged wherever necessary.
FIXED ASSETS
· Land-Freehold
· Land-Leasehold
· Buildings
· Plant and Machineries
· Chlorine Tonners
· Furniture and Fixtures
· Computers Office Equipments
· Railway siding
· Vehicles
AS PER WEBSITE
DETAILS
PRESS RELEASES
16 April 2011
Aditya Birla
Chemicals (India) Limited acquires Chloro Chemicals Division of Kanoria Chemicals
and Industries Limited
·
Compelling
strategic fit
·
Acquisition
cost Rs.8300.000 Millions
·
Capacity
enhancement 105,000 tpa to 220,000 tpa
·
Significant
operational synergies
The Board of Directors of Aditya Birla Chemicals (India) Limited (“ABCIL”), a company of the Aditya Birla Group, today approved the acquisition of the Chloro Chemicals Division (“CCD”) of Kanoria Chemicals & Industries Limited (“KCIL”) for a cash consideration of Rs.8300.000 Millions. ABCIL is currently a chlor alkali producer with its plant located at Rehla in the State of Jharkhand. This transaction takes ABCIL to a higher growth trajectory.
CCD is a state-of-art-facility located at Renukoot, Uttar Pradesh, manufacturing chlor-alkalis, chlorine derivatives and water treatment chemicals. The current annual capacity of caustic soda at the facility is 115,000 tons per annum. CCD is highly cost competitive, driven by strengths of the latest manufacturing technology, captive power plants with coal linkage and forward integration into value adding chlorine derivatives. CCD’s revenues for the year ended 31 March 2010 stood at Rs.3030.000 Millions.
With this acquisition, the total caustic soda capacity of ABCIL will increase from 105,000 tpa to 220,000 tpa.
Says Mr. Kumar Mangalam Birla, Chairman of the Aditya Birla Group: “A compelling strategic fit, this acquisition further strengthens our Group’s standing in the chlor alkali / caustic soda sector. This acquisition solidifies the Group’s position as the country’s largest producer of chlor alkali. It is a critical input in the aluminium sector. Given our large expansion plans for our aluminium business, this serves as an excellent sourcing point besides, of course, bolstering our capacity to service our customers. The business has potential for both growth in revenues and earnings. I warmly welcome the strong team that comes along with this acquisition.”
Avers Mr. Lalit Naik, Business Head for Chemicals, Aditya Birla Group: “The unit offers significant potential and infrastructure to expand the business, which will serve the increasing need for caustic soda, both within our Group and for external market. In addition, we also expect significant operational synergies on account of logistics and other cost savings.”
Caustic soda is one of the essential inputs for the manufacture of alumina and is also used widely in various other Industries. CCD’s manufacturing facility is located in Renukoot, in the State of Uttar Pradesh. Over and above the existing demand in alumina in that region, several new alumina manufacturing facilities are also coming up in the eastern part of India, which provides significant growth opportunities. Besides, there is growing demand for the chlorine derivatives. ABCIL will finance the transaction from internal accruals and borrowings.
The transaction will be done on a slump sale basis and is subject to customary corporate and other approvals, and is expected to be completed towards the end of May 2011.
About Aditya Birla
Chemicals (India) Limited:
ABCIL (formerly known as Bihar Caustic and Chemicals) is one of the leading chlor-alkali companies in Eastern India. Commissioned in 1984, and with various expansions, caustic soda capacity today stands at 105,000 tpa. For value addition and effective utilisation of chlorine, the company manufactures aluminium chloride and stable bleaching powder.
About Aditya Birla
Group:
A US$ 30 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is a conglomerate with operations in 27 countries and anchored by an extraordinary force of 130,600 employees, belonging to 40 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. Beyond business, the Group has been for the past 50 years and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India
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.55.52 |
|
|
1 |
Rs.85.29 |
|
Euro |
1 |
Rs.68.86 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
59 |
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.