MIRA
INFORM REPORT
|
Report Date : |
17.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
COROMANDEL INTERNATIONAL LIMITED (w.e.f. 25.09.2009) |
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Formerly Known As : |
COROMANDEL FERTILISERS LIMITED |
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Registered
Office : |
‘Coromandel House’, 1-2-10, Sardar Patel Road, Secunderabad, Hyderabad – 500 003, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
16.10.1961 |
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Com. Reg. No.: |
01-00892 |
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Capital
Investment / Paid-up Capital : |
Rs. 281.834 Millions |
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CIN No.: [Company Identification
No.] |
L24120AP1961PLC000892 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDC00011E |
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PAN No.: [Permanent Account No.] |
AAACC785ZK |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates |
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No. of Employees : |
1050 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (78) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 76000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having fine track. Financial
positions of the company appears to be sound. Fundamentals are strong and
healthy. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
‘Coromandel House’, 1-2-10, Sardar Patel Road, Secunderabad, Hyderabad – 500 003, Andhra Pradesh, India |
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Tel. No.: |
91-40-27842034 / 27847212 |
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Fax No.: |
91-40-27844117 |
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E-Mail : |
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Website : |
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Factory : |
Fertiliser Plants :
v Sriharipuram, Po Box No.
1116, Malkapuram Post, 530
011. Phone: 91-891-2578400 to 2578419 Fax: 91-891-2577665 Email:Seetaramn@cfl.murugappa.com
v
Fertilisers / Pesticides Factory Ranipet - 632
401. Phone: 91-4172-272326 Fax : 91-4172-272264
v
Compound Fertilisers Factory Ennore, Chennai - 600 507. Satyanarayana Rao - General Works Manager Email:Satyanarayanarao@cfl.murugappa.com Pesticide Plant :
Plot No. 22/1, TTC Industrial Area, Thane Balapur Road, Ghanasoli
P.O., Navi Mumbai - 400 701, Maharashtra, India. CROP PROTECTION PLANTS AT:
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DIRECTORS
As on 31.03.2011
|
Name: |
Mr. A Vellayan |
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Designation: |
Chairman |
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Name : |
Mr. V. Ravichandran |
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Designation : |
Director |
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Name: |
Mr. K. Balasubramanian |
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Designation: |
Director |
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Name: |
Mr. B V R Mohan Reddy |
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Designation: |
Director |
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Name: |
Mr. R A Savoor |
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Designation: |
Director |
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Name : |
Mr. M. K. Tandon |
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Designation : |
Director |
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Name : |
Mr. M. M.
Venkatachalam |
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Designation : |
Director |
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Name : |
Mrs. Ranjana Kumar |
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Designation : |
Director |
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Name : |
Mr. Kapil Mehan |
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Designation : |
Managing Director
(From 19.10.2010) |
KEY EXECUTIVES
|
Name |
Mr. M. R. Rajaram |
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Designation |
Company Secretary |
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Name |
Mr. P. Nagarajan |
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Designation |
Chief Financial Officer |
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Name |
Mr. G Ravi Prasad |
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Designation |
President – Marketing Fertilizers and SND |
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Name |
Mr. P. Gopalkrishna |
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Designation |
Sr. Vice President – Retail |
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Name |
Mr. Harish Malhotra |
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Designation |
Sr. Vice President – Commercial |
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Name: |
Mr. G Veera
Bhadram |
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Designation: |
Sr. Vice President – Pesticides SBU |
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Name |
Mr. S Govindarajan |
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Designation |
Sr. Vice President and Head of Manufacturing |
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Name: |
Mr. Arun leslie
George |
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Designation: |
Sr. Vice President and Head of HR |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
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|
3435468 |
1.22 |
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177161160 |
62.74 |
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|
25140 |
0.01 |
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|
25140 |
0.01 |
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|
180621768 |
63.96 |
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Total
shareholding of Promoter and Promoter Group (A) |
180621768 |
63.96 |
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(B)
Public Shareholding |
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15036136 |
5.32 |
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217606 |
0.08 |
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6429374 |
2.28 |
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21769803 |
7.71 |
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|
1840 |
-- |
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|
1840 |
-- |
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|
43454759 |
15.39 |
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5867611 |
2.08 |
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27091439 |
9.59 |
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12103527 |
4.29 |
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13251954 |
4.69 |
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95810 |
0.03 |
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|
500 |
-- |
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9939060 |
3.52 |
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|
52056 |
0.02 |
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3098333 |
1.10 |
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|
66195 |
0.02 |
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58314531 |
20.65 |
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Total
Public shareholding (B) |
101769290 |
36.04 |
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Total
(A)+(B) |
282391058 |
100.00 |
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
-- |
-- |
|
(1)
Promoter and Promoter Group |
-- |
-- |
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(2)
Public |
-- |
-- |
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Sub
Total |
-- |
-- |
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Total
(A)+(B)+(C) |
282391058 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
-TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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(i)
Fertilisers |
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Ammonium Phosphatic Fertilisers |
MT |
2315000 |
2104014 |
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Di-Ammonium Phosphate (DAP) |
MT |
815000 |
434475 |
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Single Super Phosphate |
MT |
132000 |
104472 |
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(ii) Plant Protection Products |
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Technicals |
MT |
11840 |
7204 |
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Formulations
- Liquids (in KL) |
MT |
10400 |
7171 |
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Formulations
– Granules/Powder |
MT |
6920 |
5338 |
NOTE:
Installed
capacities are as certified by the management and not verified by the auditors,
being a technical matter. Fertiliser and Plant Protection Products are not
covered by the list of industries in respect of which industrial licensing is
compulsory.
GENERAL INFORMATION
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No. of Employees : |
1050 (Approximately) |
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Bankers : |
·
State Bank of · State Bank of Travancore · Standard Chartered Grindlays Bank · Citibank N.A. · IDBI Bank Limited · HDFC Bank Limited · ICICI Bank Limited · Andhra Bank · HSBC Bank · Hongkong and Shanghai Banking Corporation Limited · HDFC Bank · Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name 1: |
Price Waterhouse Chartered Accountants |
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Address : |
8-2-293/82/A/1131A Road No.36, Junilee
Hills, |
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Cost Auditors : |
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Name 2 : |
Mr. V Kalyanaraman Chartered Accountant |
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Name 3 : |
Mr. Dantu Mitra Chartered Accountant |
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Subsidiaries : |
·
Parry Chemicals Limited (PCL) ·
CFL Mauritius Limited (CML) ·
Coromandel Brasil Limitada (CBL) |
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Fellow Subsidiary Company : |
·
Parry Investments Limited ·
Parry Infrastructure Company Private
Limited (PICPL) ·
Sadashiva Sugars Limited (SSL) ·
Parry Sugar Industries
Limited (PSIL) |
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Joint Venture : |
·
Coromandel Getax Phosphates Pte
Limited (CGPL) Joint Venture ·
Coromandel SQM India Private Limited
(CSQM) Joint Venture ·
Tunisian Indian Fertilisers. SA
(TIFERT) |
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Holding Company : |
·
E.I.D. Parry ( |
CAPITAL STRUCTURE
After 21.07.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
350000000 |
Equity Shares |
Rs.1/- each |
Rs. 350.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
282431658 |
Equity Shares |
Rs.1/- each |
Rs. 282.432 Millions |
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As on 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
350000000 |
Equity Shares |
Rs.1/- each |
Rs. 350.000 Millions |
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
282391058 |
Equity Shares |
Rs.1/- each |
Rs. 282.391 Millions |
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As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
350000000 |
Equity Shares |
Rs.1/- each |
Rs. 350.000 Millions |
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|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
281834198 |
Equity Shares |
Rs.1/- each |
Rs. 281.834 Millions |
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*Notes:
(A) Of the above,
since inception:
(i) 1,161,220 Equity
Shares of Rs. 10/- each fully paid-up have been allotted pursuant to contracts
without payments being received in cash.
(ii) 13,855,758
Equity Shares of Rs.10/- each fully paid-up have been issued as Bonus Shares by
capitalisation of a part of General Reserve.
(iii) 881,888
Equity Shares of Rs.10/- each fully paid-up have been issued at a premium of
Rs.10/- per share to the Debenture Holders and Public Financial Institutions
pursuant to the right exercised by them for converting a part of their Debentures/Loan
amounts into fully paid-up Equity Shares.
(B) 4,864,000
Equity Shares of Rs. 10/- each fully paid-up have been bought back at a price
of Rs. 65/- per share from the shareholders pursuant to the offer for buy back
of equity shares made during the year ended March 31, 2000.
(C) 5,949,901
Equity Shares of Rs.10/- each fully paid-up have been allotted to the
shareholders of E.I.D. Parry (India) Limited in the ratio of one share of the
Company for every three shares of E.I.D. Parry (India) Limited, pursuant to the
scheme of arrangement (demerger) between E.I.D. Parry (India) Limited and the
Company for the acquisition of Farm Inputs Division of E.I.D. Parry (India)
Limited during the year ended March 31, 2004.
(D) 831,981 Equity
Shares of Rs.2/- each fully paid up have been allotted to the shareholders of
Ficom Organics Limited in the ratio of 3 shares of the Company for every 11
shares of Ficom Organics Limited pursuant to the Scheme of Amalgamation between
Ficom Organics Limited and Rasilah Investments Limited and the Company during
the year ended March 31,
2007.
(E) 12,037,182
Equity Shares of Rs.2/- each fully paid up have been allotted to the
shareholders of Godavari Fertilisers and Chemicals Limited in the ratio of 3
shares of the Company for every 2 shares of Godavari Fertilisers and Chemicals
Limited pursuant to the Scheme of Amalgamation between Godavari Fertilisers and
Chemicals Limited and the Company during the year ended March 31, 2008.
(F) Of the total
Equity Share Capital as at March 31, 2011, E.I.D. Parry (India) Limited
(Holding Company) holds 177,155,580 (2010: 88,284,290 Equity Shares of Rs.2/-
each) Equity Shares of Re. 1/- each fully paid-up.
(G) 1,287,710
(2010: 376,296 Equity Shares of Rs.2/- each) Equity Shares of Re.1 each have
been allotted pursuant to exercise of stock options under 'ESOP 2007' scheme
during the year.
(H) During the
year, the Equity Shares of face value of Rs.2/- each fully paid-up have been
sub-divided into Equity Shares of Re. 1/- each.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
281.834 |
280.546 |
279.794 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
18759.323 |
14069.335 |
10991.611 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19041.157 |
14349.881 |
11271.405 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3876.871 |
4655.985 |
2970.528 |
|
|
2] Unsecured Loans |
10834.742 |
14521.954 |
14228.471 |
|
|
TOTAL BORROWING |
14711.613 |
19177.939 |
17198.999 |
|
|
DEFERRED TAX LIABILITIES |
814.549 |
854.671 |
794.671 |
|
|
|
|
|
|
|
|
TOTAL |
34567.319 |
34382.491 |
29265.075 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7937.020 |
8040.391 |
7640.342 |
|
|
Capital work-in-progress |
594.929 |
132.755 |
278.018 |
|
|
|
|
|
|
|
|
INVESTMENT |
2123.252 |
2110.461 |
1633.104 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
15131.212
|
9264.227
|
13475.105
|
|
|
Sundry Debtors |
2051.767
|
1427.130
|
1043.330
|
|
|
Cash & Bank Balances |
9020.559
|
8098.586
|
3414.928
|
|
|
Other Current Assets |
4299.787
|
8599.573
|
8802.885
|
|
|
Loans & Advances |
11199.278
|
6232.872
|
10527.614
|
|
Total
Current Assets |
41702.603
|
33622.388
|
37263.862 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
15122.097
|
7112.428
|
12742.620
|
|
|
Other Current Liabilities |
1345.662
|
1467.184
|
3588.047
|
|
|
Provisions |
1322.726
|
943.892
|
1219.584
|
|
Total
Current Liabilities |
17790.485
|
9523.504
|
17550.251
|
|
|
Net Current Assets |
23912.118
|
24098.884
|
19713.611
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34567.319 |
34382.491 |
29265.075 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
32650.627 |
28305.260 |
21552.878 |
|
|
|
Government Subsidies |
42628.871 |
35642.043 |
72196.927 |
|
|
|
Income from Business Assistance Agreement |
0.000 |
0.000 |
1585.941 |
|
|
|
Other Income |
1881.864 |
1321.154 |
1342.308 |
|
|
|
TOTAL (A) |
77161.362 |
65268.457 |
96678.054 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
65817.222 |
56838.039 |
87187.726 |
|
|
|
TOTAL (B) |
65817.222 |
56838.039 |
87187.726 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11344.140 |
8430.418 |
9490.328 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
842.163 |
753.713 |
847.230 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10501.977 |
7676.705 |
8643.098 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
617.405 |
592.316 |
561.318 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9884.572 |
7084.389 |
8081.780 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2940.000 |
2402.400 |
3118.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
6944.572 |
4681.989 |
4963.780 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2031.827 |
1488.592 |
530.150 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
3500.000 |
2500.000 |
2500.000 |
|
|
|
Transfer from Debentures Redemption
Reserve |
0.000 |
0.000 |
(131.387) |
|
|
|
Interim Dividend |
1127.457 |
841.464 |
839.382 |
|
|
|
Proposed Dividend |
845.503 |
561.093 |
559.588 |
|
|
|
Tax on Dividend |
324.418 |
236.197 |
237.755 |
|
|
BALANCE CARRIED
TO THE B/S |
3179.021 |
2031.827 |
1488.592 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
F.O.B. Value of export of goods |
663.791 |
591.967 |
|
|
|
|
Service Income |
26.876 |
21.627 |
|
|
|
|
Others |
38.306 |
39.605 |
|
|
|
|
TOTAL EARNINGS |
728.973 |
653.199 |
2350.593 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Materials |
45207.158 |
31755.105 |
|
|
|
|
Stores & Spares Parts |
25.999 |
1.294 |
|
|
|
|
Capital Goods |
1.045 |
7.751 |
|
|
|
|
Traded Goods |
4863.881 |
5428.252 |
|
|
|
|
|
50098.083 |
37192.402 |
8920.604 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.69 |
16.72 |
35.48 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st
Quarter |
30.09.2011 2nd
Quarter |
31.12.2011 3rd
Quarter |
|
Net Sales |
17956.700 |
27240.800 |
25605.600 |
|
Total Expenditure |
15458.500 |
23903.200 |
23135.100 |
|
PBIDT (Excl OI) |
2498.200 |
3337.600 |
2470.500 |
|
Other Income |
190.800 |
873.900 |
207.200 |
|
Operating Profit |
2689.000 |
4211.500 |
2677.700 |
|
Interest |
243.400 |
187.800 |
292.100 |
|
Exceptional Items |
0.000 |
0.000 |
(355.300 |
|
PBDT |
2445.600 |
423.700 |
2030.300 |
|
Depreciation |
142.100 |
135.500 |
137.800 |
|
Profit Before Tax |
2303.500 |
3888.200 |
1892.500 |
|
Tax |
710.0000 |
1100.000 |
556.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1593.500 |
2788.200 |
1335.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1593.500 |
2788.200 |
1335.600 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
9.00
|
7.17
|
5.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.27
|
25.03
|
37.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.91
|
17.00
|
17.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.52
|
0.49
|
0.72 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.71
|
2.00
|
3.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.34
|
3.53
|
2.12 |
LOCAL AGENCY FURTHER INFORMATION
Operations
The Company has
shown improved performance in all its business segments and achieved higher revenue
of Rs.77160.000 Millions for the year ended March 31, 2011 (2009-10 -
Rs.65270.000 Millions). Profit for the year, before depreciation, interest and
taxation was Rs.11340.000 Millions, compared to Rs. 8430.000 Millions in the
previous year. Profit after tax was Rs.6940.000 Millions as against Rs.4680.000
Millions in 2009-10 recording an increase of 48%. Higher volumes and improved
operating and raw material procurement efficiencies have significantly
contributed to improved performance all round, resulting in higher profit.
The Fertiliser
division continued to improve on its performance with record volume of
production and sales. The total fertiliser sales (including bought out
fertilisers) during the year touched the record level of 31.0 lakh MT compared
to 29.8 lakh MT in the previous year. Kakinada Plant achieved a number of new
records including highest production ever.
The Plant
Protection business also performed well during the year recording higher sale
of technicals and significant volume increase in branded formulations
especially through "Mana Gromor" retail outlets. There has been a
significant improvement in the operations of the Ankleshwar Unit with the
commissioning of new facilities for manufacturing technicals and robust environment
management system. With the centralisation of technical grade facilities at
Ankleshwar, Navi Mumbai operations have been stopped. Management is taking
initiative for alternate use of the existing facilities. The Jammu formulation
units including the newly acquired unit of Pasura Bio-Tech Private Limited have
performed well during the year.
The Speciality
Nutrients business consisting of Water Soluble Fertilisers (WSF), Secondary and
Micro Nutrients and Municipal Compost, achieved profitable growth over the previous
year and established new sales records.
The rural retail
business which was started in 2007 has now 443 centres operating across Andhra
Pradesh and Karnataka catering to the requirements of the farming community -
both agri and some of the non-agri products including life style products.
During the year, the Company has launched a pilot farm mechanization project to
provide services to the farmers.
Acquisition and Amalgamation of Pasura Bio-Tech
Private Limited
During the year ,
the Company acquired 100% equity capital of Pasura Bio-Tech Private Limited,
which has a Pesticides formulations manufacturing facility in Jammu (adjacent
to Company's existing unit in Jammu) and completed the process of its
Amalgamation into the Company through a Scheme approved by the Hon'ble High
Court of Andhra Pradesh. With this acquisition, the Company is in a stronger
position to cater to the pesticides formulation needs of the markets in the
northern parts of the country.
Subsidiary
Companies
CFL
Mauritius Limited
The Company (a 100% subsidiary)
earned a total income of US $ 0.14 million (equivalent to Rs.6.200 Millions)
and net loss of US $ 0.026 million (equivalent to Rs.1.200 Millions) during the year ended December 31, 2010.
Parry
Chemicals Limited (PCL)
The Company (a 100% subsidiary)
earned a total income of Rs.4.700 Millions for the year ended March
31, 2011 and Profit after Tax was Rs. 0.300 Millions.
Coromandel
Brasil Limited
The Company, a Limited Liability
Partnership incurred net loss of Brazilian Real 0.515 million (equivalent to
Rs.13.300 Millions) for the year ended December 31, 2010.
Technical
Assistance Agreement with Foskor (Pty) Limited (South Africa)
The Company along with its wholly
owned subsidiary Company, CFL Mauritius Limited continues to hold 14.0% of
equity of Foskor.
During the year the Company renewed
the Technical Assistance Agreement with Foskor (Pty) Limited, South Africa, for
a period of two years which would end on March 31, 2012. The relationship with
Foskor continues to be mutually beneficial.
Joint
Venture Companies
Tunisian
Indian Fertilizers (TIFERT)
TIFERT, a joint venture Company, was formed in Tunisia in 2008, to set up a phosphoric acid plant. The plant which was originally expected to be commissioned by the first quarter of 2011 is delayed mainly due to the recent political developments in Tunisia and it is now expected that this plant would be commissioned by the second half of 2011-12. The Company's strategic investment of a sum of about US $ 29 Million towards 15% equity stake in TIFERT is aimed at securing uninterrupted supply of phosphoric acid for the Company's operations.
Coromandel Getax Phosphates Pte Limited
The Joint Venture Company based in
Singapore continued its efforts to explore opportunities for rock phosphate
mining/sourcing.
Coromandel
SQM India Private Limited
The Joint Venture Company, formed to
set up a WSF Plant at Kakinada, Andhra Pradesh, has since secured all necessary
statutory approvals. The Plant is expected to be commissioned during the course
of the year (2011).
Awards/Recognition
The Company continues to receive
awards/accolades from Industry associations. During the year the Company
received the following awards/accolades:
-
Fertiliser Association of India Award
for Best Operating Phosphoric Acid Plant received by Visak Plant
-
CII's National Award for excellence
in Water Management was received by Visak Plant
-
Energy Conservation Award for
2009-10 from NEDCAP, Dept. of Energy, Govt. of AP was received by Visak Plant
-
Kakinada Plant received Commendation
Certificate from CII-Exim Bank for "Significant Achievement" in
Business Excellence
-
Significant Achievement in HR
Excellence at a National level by the Confederation of Indian Industries (CII).
-
Dun and Bradstreet - Rolta Corporate
Award 2009 in the Fertiliser sector.
-
VOICE - the in house magazine
received the Best House Magazine Award from the Public Relations Society of
India, New Delhi at the National Awards.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC SCENARIO
The Indian
Economy has emerged stronger in the last 2 years despite the slow down caused
by the global financial crisis of 2008-2009. As per the latest estimates
released by Central Statistics Office (CSO), GDP growth in 2009-10 and 201011
is estimated at 8% and 8.5% respectively. While this has been largely driven by
strong growth in industry and services sectors, the agricultural sector has
also shown an upswing with growth of 6.6% in 2010-11 in contrast to a marginal
decline in the previous year. The domestic environment is conducive for robust
growth with private expenditure projected to grow by a healthy 7.5%, driven by
rising investment demand and increase in domestic consumption.
One area of
concern is inflation, especially, the inflation in food articles which remained
in double digit for most of the year. As per IMF's forecast (January 2011 World
Economic Outlook Update), consumer price inflation is expected to continue to
be high in emerging and developing economies in 2011 due to demand pressures
and sluggish supply response. Persisting high inflation has forced Reserve Bank
of India to raise interest rates periodically. With increasing credit offtake
despite monetary tightening and inflation, the country is passing through an
era of high growth coupled with high inflation.
As per the
latest estimates of CSO, production of food grains during 2010-11 is estimated
to touch a record level of 234 million tonnes, compared to 218 million tonnes
produced during 2009-10 due to wide spread rainfall and increase in gross
irrigated area. At the same time, the need for a second green revolution is now
being strongly felt, more than ever before . The Government has recognized the
need to step up both private and public investments in the agricultural sector
so as to achieve the target growth of 4% per annum in this sector. The
significant rise in support prices of agricultural produce in recent years
ought to spur further increase in agricultural production. In this context, the
Government, has emphasized on the need for creation of more direct farm - to -
fork supply chains in food items across the country to incentivize the farmer
with higher produce prices and at the same time ensure lower price for end
consumer. Absence of El nino effect and the expectation of normal monsoon,
signal a positive outlook for Indian agriculture with growth projections at
6.5% to 7.5% in 2011-12
ORGANIZATION
Coromandel
is a flagship Company of Murugappa Group and is a subsidiary of EID-Parry (India)
Limited (EIDP) which holds 62.86 % of the equity in the Company. The Company is
engaged in the business of Farm Inputs comprising of Fertilisers, Pesticides
and Speciality Nutrients. The Company is also engaged in rural retail business
in Andhra Pradesh and Karnataka through a chain of 443 retail centres set up in
various parts of these States. The Company has 7 manufacturing facilities
located in Andhra Pradesh, Tamil Nadu, Gujarat and Jammu and Kashmir. The
Company's products are marketed all over the Country through an extensive
network of dealers and its own retail centres. During the year, the Company
acquired Pasura Bio-Tech Private Limited, a Pesticides formulation Company with
a manufacturing facility at Jammu, which has been amalgamated with Coromandel
effective April 1, 2010.
The Company has following subsidiaries and joint
ventures for its various business initiatives.
Parry Chemicals Limited, India
CFL Mauritius Limited, Mauritius
Coromandel Getax Phosphates Pte
Limited, Singapore
Coromandel Brasil Limitada, Brazil
Coromandel SQM (India) Private
Limited, India.
Tunisian Indian Fertilizers, Tunisia
In addition, the Company also holds
strategic investment by way of 14% equity stake in Foskor (Pty) Limited, South
Africa, through combined holding of Coromandel and CFL Mauritius Limited.
The Management Discussion and
Analysis given below discusses the key issues concerning each of the Strategic
Business Units (SBUs) forming part of the Farm Inputs segment of the Company
and of the Retail Business.
FARM INPUTS
FERTILISERS SBU
Coromandel with a production
capacity of 3.26 million tonnes of Phosphatic Fertilisers, is one of the
leading manufacturers of phosphatic fertilisers in India. The Company produces
and sells Phosphatic Fertilisers of various grades ranging from Di-Ammonium
Phosphate (DAP), Complex Fertilisers with different composition of nutrients to
Single Super Phosphate (SSP). The Company also distributes imported DAP, Potash
and Urea. The Company's fertilisers are sold under the well established brand
names viz. 'Gromor', 'Godavari', 'Paramfos', 'Parry Gold' and 'Parry Super'.
The Company's manufacturing facilities are located at Visakhapatnam and
Kakinada in Andhra Pradesh and Ennore and Ranipet in Tamilnadu.
Industry Scenario
World fertiliser demand was strong
and wide spread in 2010 and the global fertiliser consumption is expected to
have gone up by 3.8%, over the previous year level. This was partly triggered
by the higher commodity prices. World nutrient based fertiliser production also
increased significantly by 11% over 2009 and global sales increased by 13%
mainly on account of potash sales. India continues to remain one of the key
drivers of growth of nutrient based fertiliser demand in the World. At the
national level, the total consumption of all nutrient based fertilisers in
2010-11 is estimated at 590 lakh tonnes compared to 533 lakh tonnes in the
previous year
Consumption of phosphatic
fertilisers during 2010-11 is estimated at 250 Lakh MT, representing an increase
of 13% over the previous year level of 221 Lakh MT.
The year
also saw an unprecedented increase in import of fertilisers. Against an import
of 58 lakh MT of DAP, SSP and TSP during 2009- 10, the country has imported
about 74 lakh MT in 2010-11. Besides the country also imported 66 lakh MT of
Urea (2009-10 - 52 Lakh MT), 63 Lakh MT of MOP (2009-10 - 52 Lakh MT) and 12
lakh MT of Complex and other Fertilisers of various grades (2009-10 - 2 Lakh
MT), aggregating to total import of 215 lakh MT of various chemical
fertilisers, compared to 164 Lakh MT imported during 2009 -10. However, the
volume of imports of phosphatic fertilisers is expected to be much lower in
2011-12, both due to availability constraints as well as on account of
prevailing higher international prices.
While the
demand for Phosphatic fertilisers had gone up by nearly 28 lakh MT during the
year, indigenous production of DAP, Complex Fertilisers and SSP had increased
only marginally from 150 Lakh MT in 2009-10 to 156 Lakh MT in 2010-11. While
there was a drop of about 20% in the production of DAP during the year, there
was a corresponding increase in the production of complex fertilisers by 7%.
The
international prices of DAP, other fertilisers and raw materials generally
remained stable during the first half of the year after which there has been a
steady increase owing to increased global demand.
Government
Policies
Government
of India introduced the new Nutrient Based Subsidy (NBS ) policy for phosphatic
fertilisers effective April 1, 2010 with a view to deregulate the PandK
fertilisers and move towards free market pricing. The salient features of NBS
policy are:
•
Subsidy is fixed based on the import
parity price adjusted for MRP wherein "P" is based on DAP,
"N" based on Urea and "K" based on Potash and "S"
based on Sulphur. MRP is deducted from the import parity price to arrive at the
Subsidy payable per nutrient.
•
Under the NBS Policy, MRP has been
decontrolled.
•
Govt. had fixed the subsidy for
"N", "P", "K" and "S" based on the
prevailing international prices. Per kg rates for "N", "P",
"K" and "S" are Rs.23.23, Rs.26.28, Rs.24.49 and Rs.1.78
respectively.
The new
policy is a Win-Win proposition for all stakeholders viz. Government, farmers
and the industry. The new policy seeks to emphasise the balanced nutrition of
the soil consistent with the need for increasing the agricultural productivity.
It is expected that the new policy will bring down the subsidy outgo for the
Government and will provide product and pricing flexibility for the Industry.
The new Policy is seen as a window of opportunity for the Company to provide
the farmers new products and technologies through the Company's own R and D as
well as through imports.
The response to the new policy has
been positive. There was a marginal increase in the prices of various
fertilisers during the first half of the year, but, steep increase in input
prices especially of Ammonia and Phosphoric acid, necessitated further revision
in the MRP of various grades of fertilisers during the second half of the year.
NBS policy has been an unqualified success with abundant availability at
affordable prices. It also helped Government to reduce its overall subsidy
burden due to annual contracts and efficient buying by the industry.
In line with the new policy, the
Government has announced the revised subsidy rates for "N",
"P", "K" and "S" for the year 2011-12. Per kg
rates for "N", "P", "K" and "S" for the
year 2011-12 are Rs.27.15, Rs.32.33, Rs.26.75 and Rs.1.67 respectively.
The subsidy disbursement during the
year 2010-11 was reasonably prompt and there were no fresh allotment of bonds
during the year. It is expected that going forward Government will make
adequate budgetary support to meet the subsidy bill in the year 2011-12.
During the year, Government of India
announced a Scheme for buy back of the remaining Fertiliser Companies'
Government of India Special Bonds (Fertiliser bonds - issued by it in an
earlier year in lieu of subsidy dues) in two equal tranches during 2010-11 and
201112 through Reserve Bank of India and also decided to share atleast 50% of
the loss on such sale of fertiliser bonds. The industry has sought full
reimbursement of loss on the buy back of bonds.
Fertiliser SBU Performance
The Company achieved a total sales
volume of 29.02 Lakh MT of Fertilisers (including 1.64 Lakh MT of imported MOP,
0.99 Lakh MT of imported DAP 0.37 Lakh MT of Urea) as against 29.80 Lakh MT
sold during the previous year. Besides, the Company was also awarded the
contract by Govt. of India for handling and marketing of urea imported through
the port of Karaikal and the Company sold 1.98 Lakh MT of urea. The Company has
started marketing this urea in its brand name of "Godavari Urea"
through "Mana Gromor" retail outlets.
The movement of Fertilisers sold during
the year were strictly governed by movement orders issued by Government of
India and this necessitated movement to many states.
Coromandel continues to have a
significant presence in Andhra Pradesh, Tamil Nadu, Karnataka, Orissa,
Chattisgarh, Maharashtra and West Bengal.
Strategic
tie ups coupled with careful planning and close monitoring on the raw materials
front, enabled the Company to maximise production in all its units thereby
increasing availability of fertilisers and timely supply to farmers.
Kakinada unit achieved a record
production of 13.63 lakh tonnes during the year, compared to 12.57 Lakh tonnes
produced during 2009-10. This unit also continues to improve on its operational
efficiencies. The investments made by the Company in recent years in improving
infrastructural and other facilities at its Kakinada and Visakhapatnam units
should enable the Company to achieve higher production and further improve on
operational efficiencies. The Company has recently taken up a project for
installation of an additional granulation plant ("C" Train project )
at Kakinada involving an investment of about Rs.335 crore with a view to
increase the overall production capacity of this unit. This project is expected
to be commissioned by September 2012. The proposed investments include
augmenting Ammonia and Phosphoric acid tank facilities to meet the increased
storage requirement of these raw materials.
The
Company's Technology Development centre at Visakhapatnam has its focus on
improving product efficiencies, development of new products including
customized fertilisers and usage of various grades of rocks for phosphoric acid
manufacture.
The Company
has during the year signed an agreement with Shell International Petroleum
Company Limited (Shell), under which Shell will provide technology for
manufacture of sulphur enhanced fertilisers. This will enable the Company to
introduce new grades of fertilisers which can increase productivity for farmers
by improving soil fertility.
PLANT PROTECTION CHEMICALS - SBU
Industry Scenario
Global Crop
Protection Business witnessed a marginal growth of 1.2% to touch $ 38 billion
by the end of year 2010. The business was affected by variable weather across
the globe induced by La Nino effect. GM crops continued to grow across the
World and the GM seeds business witnessed a growth of 14.2% over previous year
to touch $12 billion during 2010.
Of the
various regions across the Globe, growth in Latin America and Asia regions was
over 8% compared to previous year, while Europe witnessed a negative growth of
9%. Variable weather in different countries affected agricultural production,
which led to increase in commodity prices.
Indian
agriculture benefitted from extended monsoon leading to a growth of 5% over
previous year, which in turn helped increased consumption of plant protection
chemicals. The industry is estimated to have grown by nearly 20% over previous
year.
Prices of
commodities like Cotton, Chillies and Pulses ruled high while price of Paddy
was subdued throughout the year. Paddy continued to be the major crop for
consumption of plant protection chemicals followed by Cotton.
Plant
Protection - SBU Performance
The SBU
achieved an all time high turnover of Rs. 4400.000 Millions
(growth of 23%) boosted by a growth in formulations brand business and in
technical business in domestic and export markets. Acquisition of a new
formulation unit in Jammu also helped in augmenting the production capacity.
All the Formulation units achieved record production levels to meet the growing
demand for Company's products. Post integration of Navi Mumbai unit operations,
technical grade manufacturing unit at Ankleshwar achieved record production and
implemented various new initiatives towards environment management system.
With its
broad range of products and distribution network, the Company was able to
achieve encouraging growth in many states taking advantage of increased
acreages under target crops. Sustained business growth through its retail chain
in Andhra Pradesh (AP) and trade channels, contributed to the Company reaching
top position in terms of turnover in the biggest state for plant protection
industry (AP)
During the
year, the Company introduced new products (captive technical and sourced) to
boost its top line growth in fast growing segments and strengthened
co-marketing tie-ups for accessing new chemistry products.
In technical
business, the Company recorded a growth of more than 20% over the previous
year. The Institutional Sales and Public Health business continued to grow. In
Public health business, the SBU gained entry into A.P. Government tender
business and Defence Ministry tenders for the first time. The year saw
Coromandel taking over the leadership position in certain molecules.
In exports,
the Company expanded its reach into new markets of Africa and Far East. Through
sustained efforts, there was a significant increase in new application
registrations which will help in strengthening its presence in export markets.
In Brazil,
leveraging upon its direct presence, the Company was able to reach out to new
clients with strong growth in some of its key molecules. The Company is
introducing new technicals to replace Endosulfan which is facing threat of ban.
With new registrations in pipeline, the Brazil and Latin American business is poised
for further growth.
SPECIALITY NUTRIENTS SBU
Industry/Company's Performance
Speciality Nutrient business of the Company comprises
of:
•
Secondary and micronutrients -
Sulphur, Boron and Zinc.
•
Water Soluble Fertilisers (WSF).
•
Organic Manure.
These categories along with the regular NPK fertilisers are the essential building blocks of the Company's 'holistic crop nutrition' offerings to the farming community.
One of the main
drivers of this business is the increasing acreage under high value crops.
Besides, increase in coverage of land area under micro irrigation especially
drip irrigation, provides an impetus to the usage of WSF.
Differentiating
itself across all critical factors, viz., manufacturing, product offerings, pan
India network and market development, the Company has emerged as a leader in
this business.
Having pioneered the manufacture and
marketing of Bentonite Sulphur in India, the Company enjoys leadership position
and plans to intensify brand promotion activities to further increase its
market share in this segment. To maintain the head start gained in G-Sulfur, a
variant namely 'SulfoZinc' (Bentonite Sulfur + Zinc) has been introduced.
In WSF, the
strategy of two pronged attack through in-house research products like
"Insta" and "Superia" with exclusivity and range of generic
grades riding on the strength of its umbrella brand of 'Gromor', has given the
Company a lead position.
The Company
has obtained all necessary approvals and work has begun on its the new WSF
plant being set up at Kakinada in Joint Venture with SQM, Chile.
In Zinc and
Boron, the Company is focusing on high value variants.
During the
year, the Company also introduced a few variants of specialty nutrients and
increased its product range.
Organic carbon, an essential
component of Indian Agriculture is almost depleted all over the agricultural
tracts in their Country. India is still at a nascent stage and uses a very
small quantity of municipal solid waste in agriculture. However, the scenario
is fast changing and the potential is huge. Currently, this business is
dominated by the unorganized sector. Coromandel has zeroed in on organic carbon
through municipal solid waste as a good source of improving soil health and its
fertility and has entered this segment in 2008. Press mud is another important
source of organic carbon. The Company's organic compost is being packed and
marketed under the brand name "Godavari Gold". The Company has
achieved significant volume growth of 54% over the previous year in this
segment.
The overall turnover of the
specialty nutrients business increased by 15% over the preceding year and the
business has potential to grow in the coming years.
RETAIL SBU
During the year 2010-11 the Company
operated 423 retail stores in Andhra Pradesh under the name "Mana Gromor
Centres" providing "one stop solution" to the farmer community.
This initiative has now been extended to Karnataka with the setting up of 20
centres in that state under the name "Namma Gromor Centres".
The response to this initiative has
been very positive and through these centres Company has been striving to
provide comfortable and respectful shopping experience for the rural community
by setting up spacious outlets in rural areas with attractive ambiance. Apart
from retailing Company's own products like fertilisers, pesticides, specialty
nutrients and organic fertilisers, these centres also sell other agri inputs
like seeds, imported fertilisers like urea and pesticides, beside Life Style
Products. The emphasis here is to leverage the relationship with the rural
customers for expanding business and enter into new and diversified areas. Some
of the new products/services offerings taken up by these centres during the
year include cattle feed, farm implements like sprayers, farm mechanization
services, Life and General Insurance products etc.
During the
year, the Company increased its turnover from sale of traded products through
retail centres by 24%. Thanks to the retail centres, the Company's Pesticides
business achieved No.1 position in A.P, with the retail centres contributing
nearly 60% of the total sales. The Company is in the process of expanding the
operations in Andhra Pradesh and Karnataka by adding more retail outlets during
next financial year.
OVERALL PERFORMANCE
The Company's overall financial performance for the
year 2010-11 have been good. While the total revenue grew by nearly 18% in
2010-11 compared to the previous year, the overall profitability, increased by
40% with improved performance coming from all the SBUs viz., Fertilisers,
Pesticides, Speciality Nutrients and Retail.
OUTLOOK
The new Nutrient Based Subsidy
policy which has come into effect from April 2010, has brought about greater
clarity and stability to the Fertiliser Subsidy Policy. It provides an opportunity
for the Company to develop and introduce new fertilisers which are crop
specific and soil specific. At the same time, the Policy has also thrown up a
challenge in terms of negotiating with the international suppliers of
fertilisers and raw materials to ensure closest possible alignment with the
prices reckoned by Government of India for subsidy purposes. The new Policy
would also enable the Company to capture better value for its established
brands.
Global availability of various raw
materials required for fertiliser manufacture including Rock phosphate,
sulphur, phosphoric acid etc., has become tight. In this context, the Company
has benefitted from its global tie ups, which would help ensure continued
supply of required raw materials at competitive international prices. The
Company is also in the process of identifying and developing new sources of raw
materials. The Company has a strategic equity stake in the joint venture viz.
Tunisien Indian Fertiliser Company, Tunisia, for setting up a Phosphoric Acid
Plant in Tunisia. This Project is delayed due to the recent political
development in that country and with normalcy back, the project is expected to
be commissioned in the second half of 2011-12.
The 'C' train project at the
Company's Kakinada Plant is under way and is expected to be commissioned by
middle of financial year 2012-13. This should enable the Company to increase
its production capacity and reach an overall production target of about 4
million tonnes from the year 2013-14. As part of this project the Company is
also building other infrastructural facilities like ammonia storage facility
and phosphoric acid tanks besides railway siding and bagging facilities which
will facilitate in achieving the higher volumes.
The Fertiliser Technology Development
Centre at the Company's Visakhapatnam Plant, is dedicated to developing new
products and help improving operating efficiencies.
In plant protection business, in the
case of 'Technicals', efforts would continue for introduction of new products
at the Company's Ankleshwar Plant and speed up the product identification and
registration work in the Latin American market. This will enable the Company to
expand its product portfolio in the top 10 countries of presence. The Company
also proposes to go in for registration of new molecules from China and India
in the overseas markets with a special focus on Africa. In its formulation
business, the Company looks at expanding its product portfolio to include
certain fast growing products through network expansion and strengthening the
market teams.
The prevailing high level of
commodity prices augur well for increased consumption of crop protection
chemicals in the coming year too; the Company is well positioned to capture the
growth in Industry with its broad range of products, pan Indian network and
chain of own retail stores.
In the 'Specialty Nutrient'
business, the Company will continue to expand its product range especially in
the WSF segment to cater to all customers and crop segments. The new WSF Plant
currently being put up in Kakinada in joint venture with SQM, Chile, is
expected to be commissioned during the year and will enable the Company to
introduce new products and scale up volumes. The Company is also working on a
long term sustainable business model for the organic manure business and for
developing long term tie ups with vendors for sourcing Municipal compost.
Besides, the Company has plans to set up its own compost and granulation units
across the country to scale up the volumes. With regard to Rural Retail
business, the Company plans to set up another 200 centres during the year in
Andhra Pradesh and Karnataka and is aiming at generating higher sales volume of
various products through these centres. There will be greater focus during the
year on agri services including farm mechanization services
Contingent Liability:
a) Guarantees
(i) The Company
has provided guarantee to third parties on behalf of its Subsidiary CFL
Mauritius Limited - Rs.588.720 Millions
(2010:Rs. 596.376 Millions.)
(ii) The Company
has provided a guarantee towards the borrowing of Tunisian Indian Fertilizers
S.A., Tunisia (TIFERT), a joint venture Company, up to Rs. 2308.050 Millions
(2010:Rs. 2338.065 Millions).
b) Other
(Rs. In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
In
respect of matters under dispute: |
|
|
|
Excise Duty |
25.963 |
31.794 |
|
Sales Tax |
2.107 |
0.394 |
|
Others |
108.054 |
64.773 |
Notes:
The amounts shown
in the item
(a) Represent guarantees
given in the normal course of business and not expected to result in any loss
to the Company on the basis of the beneficiaries fulfilling their obligations
as they arise.
The amounts in
item
(b) Represent best
estimate and the uncertainties are dependent on the outcome of the legal
processes initiated by the Company or the claimant as the case may be.
UNAUDITED FINANCIAL RESULTS
(PROVISIONAL) FOR THE QUARTER ENDED DECEMBER 31, 2011
|
|
Rs in Millions |
||
|
Particulars |
Quarterly Ended |
Nine Month Ended |
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
(Unaudited) |
(Unaudited) |
||
|
(a) Net sales/Income from operations |
255.009 |
271.144 |
705.164 |
|
(b) Other operating income (Refer Note 8) |
1.047 |
8.153 |
9.756 |
|
Total |
256.056 |
279.297 |
714.920 |
|
Expenditure |
|
|
|
|
a) (Increase)/Decrease in stock in trade and work in progress |
(63.009) |
(6.315) |
(78.873) |
|
b) Consumption of raw materials |
158.819 |
142.832 |
429.685 |
|
c) Purchase of traded goods |
105.770 |
70.827 |
187.368 |
|
d) Employee costs |
5.290 |
5.288 |
15.449 |
|
e) Depreciation |
1.378 |
1.355 |
4.154 |
|
f) Other expenditure (Refer Note 8) |
24.481 |
26.400 |
71.339 |
|
g) Total |
232.729 |
240.387 |
629.122 |
|
Profit from operations before Other Income, Interest
and Exceptional items (1-2) |
23.327 |
38.910 |
85.798 |
|
Other Income |
2.072 |
1.850 |
5.830 |
|
Profit before Interest and Exceptional items (3+4) |
25.399 |
40.760 |
91.628 |
|
Interest |
2.9.21 |
1.878 |
7.233 |
|
Profit after Interest but before Exceptional Items
(5-6) |
22.478 |
38.882 |
84.395 |
|
Exceptional items (Refer Note 6) |
(3.553) |
- |
(3.553) |
|
Profit (+) / (Loss) (-) before tax (7+8) |
18.925 |
38.882 |
80.842 |
|
Tax expense |
5.569 |
11.000 |
23.669 |
|
Net Profit (+) / (Loss) (-) after tax (9-10) |
13.356 |
27.882 |
57.173 |
|
Paid-up equity share capital |
|
|
|
|
(Face value - Re.1 per equity share) |
28.24 |
28.22 |
2.824 |
|
Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year |
|
|
|
|
Earnings per share (for the period - not annualised) |
|
|
|
|
- Basic (Rupees) |
4.73 |
9.89 |
20.27 |
|
- Diluted (Rupees) |
4.71 |
9.82 |
20.14 |
|
Public Shareholding |
|
|
|
|
- Number of shares |
101,769,290 |
101,588,398 |
101,769,290 |
|
- Percentage of shareholding |
36.038% |
35.998% |
36.038% |
|
Promoters and Promoter group Shareholding a) Pledged/encumbered |
|
|
|
|
-No of shares |
10,000 |
10,000 |
10,000 |
|
-Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
0.006% |
0.005% |
0.006% |
|
-Percentage of shares (as a % of the total share capital of the company) |
0.004% |
0.004% |
0.004% |
|
b) Non-encumbered |
|
|
|
|
-No of shares |
180,611,768 |
180,601,768 |
180,611,768 |
|
-Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
99.994% |
99.995% |
99.994% |
|
-Percentage of shares (as a % of the |
|
|
|
|
total share capital of the company) |
63.958% |
63.998% |
64.115% |
Notes :
·
The above financial results are drawn in accordance with the accounting
policies consistently followed by the Company.
·
The above results have been reviewed and recommended by the Audit
Committee and approved by the Board of Directors at their meeting held on
January 23, 2012. The Statutory Auditors have carried out a limited review of
these financial results.
·
The Board of Directors at their meeting held on January 23, 2012 have
approved an interim dividend of Rs. 4 per share (400 % on face value of Re 1/-
share ).
·
During the quarter, pursuant to the exercise of stock options by certain employees
under the 'ESOP 2007' scheme, the Company has allotted 190,892 (Quarter ended
December 31, 2010: 328,402) equity shares of Re1/-each at the respective
exercise price.
·
During the quarter the Company, pursuant to the approval from Securities
Exchange Board of India (SEBI) for the Open Offer under SEBI (Substantial
Acquisition of Shares and Takeover) Regulations, 1997, acquired 1,05,00,000
(31%) equity shares of Sabero Organics Gujarat Limited (Sabero) at a price of
Rs.160/- per share. Further, pursuant to the Share Purchase Agreement entered
into with the erstwhile promoters of Sabero, the Company completed the
acquisition of 1,24,44,453 (36.75%) equity shares of Sabero. The Company along
with its wholly owned subsidiary (Parry Chemicals Limited,) holds 69.10% of the
equity share capital of Saber and effective December 17, 2011 Sabero became a
subsidiary of the Company. The acquisition being recent, and considering the
scale of operations of Sabero between December 17, 2011 and December 31, 2011,
the same has not been considered for consolidation.
·
Exceptional item represents Non Compete fee paid to erstwhile Indian
promoters of Sabero as per the Share Purchase Agreement.
·
The Company has recognized subsidy income (included in the Net sales /
Income from operations), as per the prevalent Nutrient Based Subsidy Policy
(NBS). The subsidy income for the quarter and nine months ended December 31,
2011 includes Rs.115.500 Millions and Rs.407.600 Millions respectively (quarter
and nine months ended December 31, 2010: Rs.109.800 Millions and Rs.2260.300
Millions respectively) relating to earlier periods consequent to the
determination of final rates of concession. Further, in respect of the Office
Memorandum dated July 11, 2011 issued by the Department of Fertilisers with
regard to recognition of subsidy income on the opening inventories as at April
1, 2011, the Company has recognized subsidy income based on estimates and the
legal opinion obtained in this regard and changes in estimates, if any, shall
be made upon final determination of the matter.
·
During the previous quarter, the Company sold remaining quantum of the
Government of India Special Bonds pursuant to the decision of Government of
India to buy back outstanding bonds and compensate atleast 50% of the loss on
such sale. Accordingly during the previous quarter, the Company accounted for
the loss of Rs. 426.700 Millions (Year ended March 31, 2011: Rs.371.700
Millions) (net of compensation receivable from Government of India) and the same
is included under 'Other Expenditure'. Consequently, the provision towards Mark
to Market loss made earlier on such bonds amounting to Rs. 688.900 Millions
(Year ended March 31, 2011: Rs.688.900 Millions) has been reversed and is
included under 'Other Operating Income'.
·
In October 2011, the Board approved, subject to the approval of
shareholders, stock exchanges, regulatory authorities and the High Court of
Andhra Pradesh, issue of bonus debentures by appropriating General Reserve
through a Scheme of Arrangement (Scheme). During the quarter, the company
obtained from National Stock Exchange and Bombay Stock Exchange approvals of
the Scheme for issue of one 9% Unsecured Redeemable Non- convertible Fully Paid
Bonus Debentures of Rs.15 each for every equity share from the General Reserve,
and is in the process of filing the Scheme with the High Court of Andhra
Pradesh.
·
During the quarter, the Members of the Company pursuant to the provisions
of Section 293(1)(a) of the Companies Act, 1956 approved the transfer/assigning
of the lease rights on the land located at Navi Mumbai to the prospective
buyers.
·
The Consolidated Results for the quarter and nine months period include
results of Parry Chemicals Limited, CFL Mauritius Limited, Coromandel Brasil
Limitada, wholly owned subsidiaries and Tunisian Indian Fertiliser SA (TIFERT),
Coromandel Getax Phosphates Pte Limited and Coromandel SQM (India) Private
Limited, Joint venture Companies. In respect of CFL Mauritius Limited,
Coromandel Brasil Limitada, TIFERT and Coromandel Getax Phosphates Pte Limited,
un-reviewed results have been used for preparing the consolidated results for
the quarter and nine months ended December 31, 2011. This matter has been
referred to in the Auditor's Report for the quarter and nine months ended
December 31, 2011.
·
The Company, its subsidiaries and its joint ventures are primarily
engaged in the farm inputs business, which in the context of Accounting
Standard 17, is considered the only significant business segment.
·
During the quarter, one investor complaint was received and resolved.
There was no investor complaint pending at the beginning or at the end of the
quarter.
·
Figures of the previous quarters/period/year have been regrouped and
reclassified, wherever considered necessary.
FIXED ASSETS
v Land-Freehold
v Land -Leasehold
v Buildings, Roads
v Railway Siding
v Plant and Machinery
v Technical know-how
v Office Equipment
v Furniture and Fittings
v Vehicles
AS PER WEBSITE DETAILS
Business Description
Subject is engaged in the
manufacture and trading of farm inputs. It operates in four segments:
fertilizers, specialty nutrients, crop protection and retail. It manufactures
phosphatic fertilizers. The specialty nutrients business consists of water
soluble fertilizers, secondary and micro nutrients, and municipal compost. The
crop protection business produces insecticides, fungicides and herbicides. The
retail includes both agri and non-agri products, including life style products.
It manufactures a range of phosphatic fertilizers, crop protection products,
specialty nutrients, such as sulphur pastelles, water soluble fertilizers,
micro nutrients and organic fertilizers. During the fiscal year ended March 31,
2011, it acquired Pasura Bio-Tech Private Limited. On December 17, 2011, it
acquired a 31% interest in Sabero Organics Gujarat Limit. With this acquisition
its holding in SABERO was 67.75% and effective December 17, 2011 SABERO became
a subsidiary company. For the nine months ended 31 December 2010, Subject's
revenues increased 26% to RS64.47B. Net income increased 62% to RS6.23B.
Revenues reflect an increase in income from operations and higher other income.
Net income reflects the presence of gain on stock in trade, improved gross
profit margin and higher operating profit margin. The Company is engaged in the
business fertilizers, pesticides and specialty nutrients.
Board of Directors
Mr. A. Vellayan
Non-Executive Non-Independent Chairman of the Board
Mr. A. Vellayan is Non-Executive
Non-Independent Chairman of the Board of Subject Mr. Vellayan holds a Diploma
in Industrial Administration from Aston University, Birmingham, UK and Masters
in Business Studies from the University of Warwick, Business School, UK. He is
a Director in many companies. He is on the Board of Governors, Doon School,
Dehra Dun. He has held position such as Vice President, Federation of Indian
Export Organisation (FIECO) and member of National Export Committee -
Confederation of Indian Industry (CII). He was the Managing Director of Tube
Investments of India Limited and TI Diamond Chain Limited. He is presently the
Chairman of Subject and EID Parry (India) Limited. He has got work experience
of about 27 years.
Mr. K. Balasubramanian
Non-Executive Independent Director
Mr. K. Balasubramanian is a
Non-Executive Independent Director of Subject Mr. Balasubramanian is a Graduate
in Commerce from the University of Madras and has done Advanced Management
programme from the Harvard Business School. He has 40 years of experience in
International Banking. Presently, he is a Member GMR Holding Board. He is also
on the Board of GMR Group of Companies and DQ Entertainments Limited.
Mrs. Ranjana Kumar
Non-Executive Independent Director
Mrs. Ranjana Kumar is
Non-Executive Independent Director of Subject She hold a Bachelor of Arts, a
Gold Medalist, had an great career in Indian banking industry spanning over
four decades. She had started her career with Bank of India in the year 1966 as
a probationary officer and held several senior positions in the Bank. She was
CEO of US operations of Bank of India based in New York. She moved to Canara
Bank as its Executive Director holding concurrent charge as Chairperson of
Canara bank. Thereafter she became the Chairperson of Indian Bank and continued
for a period of three and half years. She is also credited with turning around
the ailing Indian Bank as its Chairperson within a period of 3 years and has
authored a book on the turnaround of Indian Bank.She also headed the National
Bank of Agriculture and Rural Development (NABARD). Mrs Ranjana Kumar retired
as Vigilance Commissioner, Central Vigilance Commission, Government of India.
Mr. Kapil Mehan
Managing Director, Additional Non-Independent Director
Mr. Kapil Mehan is Managing
Director, Additional Non-Independent Director of Subject He is a graduate in
Veterinary Science and Animal Health. He also holds a PG Diploma in Management
from IIM, Ahmedabad with specialization in Agriculture. He brings with him experience
and background in varied leadership roles. He started his career with Rallis
India and later moved on to Tata Chemicals Limited. He had held various
positions in Sales and Marketing function in Rallis and Tata Chemicals Limited
before moving into the position of Chief Operating Officer for its fertilisers
business in 2003. He took over as the Executive Director in 2008. Presently, he
is the Managing Director of Coromandel.
Mr. V. Ravichandran
Non Executive Director
Mr. V. Ravichandran has been appointed
as Non-Executive Vice Chairman of the Board of Subject, with effect from July
21, 2011. He is an Engineering Graduate and holds Post Graduate Diploma in
Management from IIM, Ahmedabad. He is also a Cost Accountant and a Company
Secretary. After having served Ashok Leyland Limited initially for a short
period, joined the Murugappa Group and had served Parry Group of Companies
mainly in the fields of finance and marketing. He also headed the Plant
Protection business.
Mr. B. V. R. Mohan Reddy
Non-Executive Independent Director
Dr. B. V. R. Mohan Reddy is a
Non-Executive Independent Director of Subject Dr. B. V. R. Mohan Reddy is a
Graduate in Mechanical Engineering and holds a Master's degree in Management Engineering
from University of Michigan, Ann Arbor, USA; and a Master's Degree in
Industrial Engineering from Indian Institute of Technology (IIT), Kanpur. Dr
Mohan Reddy is the Founder Chairman and Managing Director of Infotech
Enterprises Limited. He is also on the Boards of Vizag IT Park Limited, Ocimum
Bio Solutions Limited.
Mr. Ramesh Amrut Savoor
Non-Executive Independent Director
Mr. Ramesh Amrut Savoor is a
Non-Executive Independent Director of Subject He is a Bachelor of Science in
Technology. He retired as Managing Director of Castrol India Limited with
effect from April 24, 2002. He was with Castrol India Limited for 34 years, of
which 12 years as Chief Executive and Managing Director. Under his leadership
Castrol India had grown from being a minor oil Company to becoming the number
two lubricant Company in India and the second Castrol Company worldwide. He is
presently the Chairman of Foseco India Limited and Independent Director on the
Boards of EID Parry (India) Limited and Automotive Stampings and Assemblies
Limited
Mr. M. K. Tandon
Non-Executive Independent Director
Mr. M. K. Tandon is a
Non-Executive Independent Director of Subject Mr. Tandon has been associated
with the Indian Insurance Industry for more than 37 years. He had, after completing
his Masters Degree in Commerce and Degree in Law both from Lucknow University,
started his career with LIC of India. Thereafter, he had held various senior
positions and became Managing Director of General Insurance Corporation of
India. He retired as Chairman and Managing Director of National Insurance
Company Limited.
Mr. M. M. Venkatachalam
Non-Executive Non-Independent Director
Mr. M. M. Venkatachalam is a
Non-Executive Non-Independent Director of Subject Mr. M. M. Venkatachalam
graduated from the University of Agricultural Sciences in Bangalore and holds a
Masters Degree in Business Administration from George Washington University,
USA. He has held senior positions in the Murugappa Group of Companies spanning
over period of two and a half decades. Mr. Venkatachalam is presently the
Chairman of Parry Enterprises Limited and Parry Agro Industries Limited, he
also serves on the boards of EID Parry (India) Limited, Laser Words Limited,
Parry Murray Limited and Ramco Systems Limited
PROFILE
Subject is in the business segments of Fertilisers, Speciality
Nutrients, Crop Protection and Retail.
Coromandel manufactures a wide range of fertilisers and markets around
2.9 million tons making it a leader in its addressable markets and the second
largest phosphatic fertiliser player in
In its endeavour to be a complete plant nutrition solutions company,
Coromandel has also introduced a range of Speciality Nutrient products
including Organic Fertilisers.
The Crop Protection business produces insecticides, fungicides and
herbicides and markets these products in
Coromandel has also ventured into the retail business setting up more
than 425 rural retail centers in the agri and lifestyle segments.
The Company clocked a turnover of Rs.65270.000 Millions in 2009-10 (USD
1.44 billion as on March 31, 2010).
Coromandel was ranked among the top 20 best companies to work for by
Business Today and was also voted as one of the ten greenest companies in India
by TERI, reflecting its commitment to the environment and society.
Coromandel is a part of the Rs.136170.000 Millions (USD 3.03 billion as
on March 31, 2010) Murugappa Group.
MILESTONES:
1959 - Independent India realised that its
largely agrarian economy needed a thrust in the right direction for its people
to benefit and prosper. Prime Minister Jawaharlal Nehru invited the Ford
Foundation to carry out a comprehensive study of
1961 - An industrial license was granted to
three companies - IMC ((the world's largest producer of fertilisers
then), Chevron Chemical Company (a major American player in fertilisers /
industrial chemicals) and E.I.D.Parry (I) Limited (
The first board of Directors was constituted on October 16,
with Mr. H V R Iengar as its Chairman. Others on the Board included J Q
Cope, Charles Dennison, J K John, Dr L Bharat Ram, A W Horton, J T
Gibson, S C Dholakia, V K Rao and Raja Rameswar Rao. L L
Powell and P J Davies were the first Managing Director and Dy. Managing
Director respectively. Donald I Meikle was the first Company Secretary.
1962 - Market development commenced in
the form of a 'seeding programme'. E.I.D.Parry was appointed CFL's principal
sales agent in
A sprawling 483.5 acres site was identified at
1964 - On March 2, Dr. Bharat Ram
was elected Chairman of CFL's Board of Directors. He was the
longest-serving Chairman, with an innings of 37 years. Addressing the AGM as
Chairman on July 15, 2004, he nostalgically commented, "In my long innings
in public life, business and industry, I have the varied experience. But
I would like to affirm today, the last occasion when I shall address you as the
Chairman of CFL, that no assignment has given me such pleasure and a sense of
fulfillment as working with you all. CFL has been a role model, a
commonwealth, in a co-operative effort to build a great company, anchored in
values and every aspect of what is commonly known today as 'corporate
governance'.
1967 - On December 10, Mr. Morarji Desai, the
then Deputy Prime Minister of India, dedicated the fertiliser plant to the
nation, in the presence of Mr. Kasu Brahmananda Reddy, the then Minister of
Andhra Pradesh. Grandhi Ramamurthy, a local farmer, was given the honour
of cutting the ribbon. The 245 ft high Urea prill tower was on of the
tallest industrial structures in
1970 - The 'GROMOR farmer' was developed as a
marketing symbol and introduced on their bags to spread the message of 'higher
yields, bigger profits'. Today, farmer households across their
addressable markets identify CFL's brand by this symbol.
1971 - The 'Cormondel Lecture' was instituted
to provide a forum for thinker, economists, social and agricultural research
scientist around the world to share their thoughts on issues of global concern
such as food security, environment and extension activity. The 'Borlaug
Award' , instituted in honour of Nobel Laureate Dr Norman Borlaug (father of
the Wheat revolution), honours eminent men of science and industry for their
distinctive contribution to the cause of agriculture. This reflects CFL's
concern to develop a symbiotic interaction between agriculture, industry and
academia.
1976 - Their fertiliser retail outlet at
Secunderabad got a boost with garden lovers fervently seeking small quantities
of fertilisers for bigger and richer blooms and fruit.
1977 - CFL completed a decade of
participation in augmenting agricultural production for the nation. Its vital
role covered soil nourishment, sharing agronomic expertise, supporting
agricultural education and rewarding research - all of which had progressively
grown in width and depth during the decade.
1980-90 - Plans to diversify were
afoot. A 'groundbreaking' ceremony was performed in November 1980 at
Chilamkur (Andhra Pradesh), which is rich in limestone deposits, to set up a
one million tonne cement plant. The fully computerised plant (designed by
world-renowned cement manufacturer Krupp Polysius of
1995-99 - Chevron Chemical Company
divested its stake in favour of E.I.D.Parry (India) Limited in 1995, followed
by IMC in 1999. E.I.D.Parry (I) Limited acquired majority shareholding in
CFL, making it a part of Murugappa Group, a highly reputed industrial
conglomerate.
2000 - CFL's growth over the years has been
punctuated with several path-breaking modernisation / upgradation programmes.
Begun in 1975, the programme gathered momentum in 1992-95, when the
Sulphuric Acid, Phosphoric Acid and Complex Granulation plant were
debottlenecked. Production capacity went up from the original 247,000 MT
to 400,000 MT. On September 29, Mr N Chandrababu Naidu, the then
Chief Minister of Andhra Pradesh, inaugurated a new complex granulation
train. This further augmented capacity to 600,000 MT, a boon to the
entire farming community.
2003 - On July 12, CFL consolidated its
business by acquiring controlling stake in Godavari Fertilisers and Chemicals
Limited (GFCL).
To optimise synergy of operations in the Group, the Farm
Inputs Division of E.I.D.Parry (I) Limited was merged with CFL on December 1.
2004 - Mr. V Ravichandran took over as
President and WTD on January 22. Mr. A Vellayan took over as Chairman on
September 1. Other Directors on the Board are Mr. J Jayaraman, Mr. M M
Murugappan, Mr. T M M Nambiar, Mr. M K Tandon, Mr. D E
Udwadia, Mr. S Viswanathan and Mr. K A Nair. The first post merger
AGM of the company was held on July 15.
2005 - CFL signs a Business Assistance Agreement with Foskor Limited,
Press
Release:
Coromandel International Limited Declares 400% Interim Dividend
31st December 2011
The unaudited
financial results for the Quarter/ Nine months ended December 31, 2011 were
approved by the Board of Directors at its meeting held on January 23, 2012.
The Board of
Directors have also approved an interim dividend of 400% (Rs.4 per share) on
face value of Re.1 per share.
Sales during the nine
months ended December 31, 2011 is Rs.70516.400 Millions, as against Rs.
Rs.63532.000 Millions in the corresponding period last year, registering a
growth of 11%.
The gross profit
before depreciation, interest and taxes for the nine months is Rs.9578.300
Millions as against Rs.10160.000 Millions during the same period last year;
depreciation provided was Rs. 415.400 Millions (corresponding period last year
Rs. 468.800 Millions), interest charged Rs.723.300 Millions (corresponding
period last year Rs. 622.800 Millions).
Profit before tax
and exceptional item for the nine months is Rs. 8439.500 Millions as compared
to Rs.9068.400 Millions in the corresponding period last year. After
considering exceptional item of Rs.355.300 Millions (corresponding period last
year NIL) PBT for the nine months is Rs.8084.200 Millions. Profit before tax
for the nine months includes prior period subsidy income of Rs.407.600 Millions
(corresponding period last year Rs.2260.300 Millions)
Provision for
taxation for the period works-out to Rs. 2366.900 Millions (corresponding
period last year Rs.2850.000 Millions). The net profit is Rs.5717.300 Millions
as against Rs. 6218.400 Millions during the corresponding period last year.
During the
quarter, the Company completed the acquisition of Sabero Organics Gujarat
Limited (Sabero) and now holds 69.10% in Sabero along with its subsidiary.
Recently,
Coromandel SQM a joint venture between the Company and SQM, world leader in
manufacture of water soluble Speciality plant nutrition solutions announced
completion of its water soluble plant at Kakinada, Andhra Pradesh.
Commenting on the
financial results, Mr Kapil Mehan, Managing Director, Coromandel International
Limited., said - “We are pleased to report improved operating performance in
spite of challenging market condition and depreciating Rupee. Without
considering exceptional item, PBT for the quarter has gone by 4% to Rs.2247.800
Millions over corresponding quarter of previous year (Rs.2162.900 Millions)”.
A copy of the
advise to the Stock Exchanges giving the highlights of the un-audited financial
results approved by the Board of Directors of the Company on January 23, 2012
is attached.
About Coromandel International Limited
Coromandel
International Limited, India’s second largest Phosphatic fertilizer player, is
in the business segments of Fertilizers, Specialty Nutrients, Crop Protection
and Retail. The Company manufactures a wide range of fertilizers and markets
around 2.9 million tons making it a leader in its addressable markets.
In its endeavor to
be a complete plant nutrition solutions Company, Coromandel has also introduced
a range of Specialty Nutrient products including Organic Fertilizers. The Crop
Protection business produces insecticides, fungicides and herbicides and
markets these products in India and across the globe. Coromandel is the second
largest manufacturer of Malathion and only the second manufacturer of
Phenthoate. Coromandel has also ventured into the retail business setting up
more than 425 rural retail centers in the agriculture and lifestyle segments.
The Company
clocked a turnover of Rs. 75270.000 millions during FY 2010-11. lt was ranked
among the top 20 best companies to work for by Business Today and was also
voted as one of the ten greenest companies in India by TERI, reflecting its
commitment to the environment and society. Coromandel is a part of the
Rs.170510.000 Millions Murugappa Group. For more details
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.50.31 |
|
|
1 |
Rs.79.04 |
|
Euro |
1 |
Rs.65.82 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
78 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.