Business
information report
1. Summary Information
|
|
|
Country |
|
|
Company Name |
VINATI ORGANICS LIMITED |
Principal Name 1 |
Mr. Girish M. Dave |
|
Status |
Good |
Principal Name 2 |
Mr. Vinod Saraf |
|
|
|
Registration # |
11-052224 |
|
Street Address |
B-12 and B-13, MIDC, Areamahad, District Raigad-402309, Maharashtra,
India |
||
|
Established Date |
15.06.1989 |
SIC Code |
-- |
|
Telephone# |
91-2145-232012 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-2145-232010 |
Business Style 2 |
Exporter |
|
Homepage |
Product Name 1 |
Isobutyl Benzene |
|
|
# of employees |
Not Available |
Product Name 2 |
2 Acrylamido
2Methylpropane Sulphonic Acid |
|
Paid up capital |
Rs. 98,745,000/- |
Product Name 3 |
Isobutylene |
|
Shareholders |
Promoter and
Promoter Group – 74.99% Public
Shareholding – 25.01% |
Banking |
Axis Bank |
|
Public Limited Corp. |
Yes |
Business Period |
23 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public Enterprise |
Yes |
Rating |
A (64) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Other
Related Party |
India
|
Viral Alkalis Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
724,368,000 |
Current Liabilities |
173,256,000 |
|
Inventories |
350,144,000 |
Long-term Liabilities |
769,606,000 |
|
Fixed Assets |
1,111,726,000 |
Other Liabilities |
198,393,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
1,141,255,000 |
|
Invest& other Assets |
391,989,000 |
Retained Earnings |
1,338,227,000 |
|
|
|
Net Worth |
1,436,972,000 |
|
Total Assets |
2,578,227,000 |
Total Liab. & Equity |
2,578,227,000 |
|
Total Assets (Previous Year) |
1,851,311,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
3,168,887,000 |
Net Profit |
519,692,000 |
|
Sales(Previous yr) |
2,321,000,000 |
Net Profit(Prev.yr) |
400,414,000 |
MIRA
INFORM REPORT
|
Report Date : |
22.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
VINATI ORGANICS LIMITED |
|
|
|
|
Registered
Office : |
B-12 and B-13, MIDC, Areamahad, District Raigad-402309, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
15.06.1989 |
|
|
|
|
Com. Reg. No.: |
11-052224 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 98.745 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24116MH1989PLC052224 |
|
|
|
|
Legal Form : |
It is a Public Limited Liability company. The company’s shares are listed on the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and Exporter of Premium Organic Intermediates and
Monomers |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 |
|
Maximum Credit Limit : |
USD 5700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. 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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
B-12 and B-13, MIDC, Areamahad, District Raigad-402309, Maharashtra,
India |
|
Tel. No.: |
91-2145-232012/13/14 |
|
Fax No.: |
91-2145-232010 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Shiv-Ashish, 2nd Floor, Andheri Kurla Road, Sakinaka,
Mumbai-400072, Maharashtra, India |
|
Tel. No.: |
91-22-4201444/ 42014428 |
|
Fax No.: |
91-22-28510729 / 42014438 |
|
E-Mail : |
|
|
|
|
|
Factory : |
A-20, MIDC, Lote-Parashuram, Taluka-Khed, District Ratnagiri-415722,
Maharashtra, India |
|
Tel. No.: |
91-2356-273032/ 33 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Girish M. Dave |
|
Designation : |
Non-Executive
Chairman and Director |
|
|
|
|
Name : |
Mr. Vinod Saraf |
|
Designation : |
Managing
Director |
|
|
|
|
Name : |
Mr. Chintaman Bhaskar Gokhale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ayliur Akileswaraiyer Krishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Vinati Saraf Mutreja |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. Mohit Mutreja |
|
Designation : |
Director –
Finance |
|
|
|
|
Name : |
Ms. Viral Saraf Mittal |
|
Designation : |
Director -
Corporate Strategy |
|
|
|
|
Name : |
Mr. Sunil Saraf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R K Saraswat |
|
Designation : |
Additional
Director (From 24th January 2011) |
KEY EXECUTIVES
|
Name : |
Mr. Nandkishore Goyal |
|
Designation : |
Chief Financial
Officer (CFO) |
|
|
|
|
Name : |
Mr. Jayesh Ashar |
|
Designation : |
Chief Operating
Officer (COO) |
|
|
|
|
Name : |
Mr. B.S. Lathi |
|
Designation : |
Executive
President – Mahad Plant |
|
|
|
|
Name : |
Mr. M D Purohit |
|
Designation : |
Vice President
(Technical) – Lote Plant |
|
|
|
|
Name : |
Mr. Mahendra Kumar Churiwala |
|
Designation : |
Sr. Vice
President - Marketing |
|
|
|
|
Name : |
Mr. Amit Thanawala |
|
Designation : |
Vice President –
Marketing |
|
|
|
|
Name : |
Mr. Gunvant S. Singhi |
|
Designation : |
Company
Secretary Cum Finance Controller |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of
Shareholder |
No. of Shares |
% of No. of Shares |
|||||||||
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|||||||||
|
|
|
|
|||||||||
|
Individuals / Hindu Undivided Family |
15,290,512 |
30.97 |
|||||||||
|
Bodies Corporate |
21,733,835 |
44.02 |
|||||||||
|
Sub Total |
37,024,347 |
74.99 |
|||||||||
|
|
|
|
|||||||||
|
Total
shareholding of Promoter and Promoter Group (A) |
37,024,347 |
74.99 |
|||||||||
|
(B) Public
Shareholding |
|
|
|||||||||
|
(1) Institutions |
|
|
|||||||||
|
|
16,500 |
0.03 |
|||||||||
|
Financial Institutions / Banks |
1,500 |
- |
|||||||||
|
Sub Total |
18,000 |
0.04 |
|||||||||
|
(2)
Non-Institutions |
|
|
|||||||||
|
|
742,688 |
1.5 |
|||||||||
|
Individuals |
|
|
|||||||||
|
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million |
10,060,701 |
20.38 |
|||||||||
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
1,337,290 |
2.71 |
|||||||||
|
|
189,474 |
0.38 |
|||||||||
|
Non Resident Indians |
161,687 |
0.33 |
|||||||||
|
Clearing Members |
27,787 |
0.06 |
|||||||||
|
Sub Total |
12,330,153 |
24.97 |
|||||||||
|
|
12,348,153 |
25.01 |
|||||||||
|
Total (A)+(B) |
49,372,500 |
100 |
|||||||||
|
|
- |
- |
|||||||||
|
(1) Promoter and Promoter Group |
- |
- |
|||||||||
|
|
- |
- |
|||||||||
|
Sub Total |
- |
- |
|||||||||
|
Total
(A)+(B)+(C) |
49,372,500 |
- |
|||||||||
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Premium Organic Intermediates and
Monomers |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Isobutyl Benzene |
MT |
14000.00 |
11134.34 |
|
2 Acrylamido 2Methylpropane Sulphonic Acid |
MT |
12000.00 |
10744.20* |
|
Isobutylene |
MT |
12000.00 |
4668.79* |
|
Sodium Salt of 2
Acrylamido 2Methylpropane Sulphonic Acid |
MT |
-- |
7893.64** |
* It includes quantity
used for manufacturing of other products.
** It includes
quantity manufactured through third party.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Axis Bank · Barclays Bank · State Bank of India · Citibank N.A. |
||||||||||||||||||||||||||||||||||||
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|
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|
Facilities : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Karnavat and Company Chartered Accountant |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Enterprises owned or significantly influenced by
any management personnel or their relatives.: |
·
Viral Alkalis Limited ·
Vinati Wax Industries Private Limited ·
Shilpa Pharma Private Limited ·
Mithali Chemicals Private Limited ·
Viral Chemicals Private Limited ·
Viral Pharma Private Limited ·
Suchir Chemicals Private Limited ·
Suchir Investment and Finance Private Limited ·
Manan Pharma Private Limited ·
Nishit Pharma Chem Private Limited ·
Kavita Organics Private Limited ·
Pluspoint Securities Private Limited ·
Illuminati Software Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75000000 |
Equity Shares |
Rs.2/- each |
Rs. 150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
49372500 |
Equity Shares |
Rs.2/- each |
Rs. 98.745 Millions |
|
|
|
|
|
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 |
98.745 |
98.745 |
98.745 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1338.227 |
893.131 |
550.347 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1436.972 |
991.876 |
649.092 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
702.734 |
569.860 |
448.408 |
|
|
2] Unsecured Loans |
66.872 |
61.314 |
61.162 |
|
|
TOTAL BORROWING |
769.606 |
631.174 |
509.570 |
|
|
DEFERRED TAX LIABILITIES |
117.368 |
87.172 |
58.605 |
|
|
|
|
|
|
|
|
TOTAL |
2323.946 |
1710.222 |
1217.267 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1111.726 |
796.296 |
447.009 |
|
|
Capital work-in-progress |
360.369 |
383.651 |
434.259 |
|
|
|
|
|
|
|
|
INVESTMENT |
31.620 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
350.144
|
188.922 |
120.583 |
|
|
Sundry Debtors |
519.216
|
358.705 |
279.168 |
|
|
Cash & Bank Balances |
19.402
|
17.888 |
18.897 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
185.750
|
105.849 |
74.660 |
|
Total
Current Assets |
1074.512
|
671.364 |
493.308 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
119.017
|
56.950 |
88.140 |
|
|
Other Current Liabilities |
54.239
|
41.075 |
69.169 |
|
|
Provisions |
81.025
|
43.064 |
0.000 |
|
Total
Current Liabilities |
254.281
|
141.089 |
157.309 |
|
|
Net Current Assets |
820.231
|
530.275 |
335.999 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2323.946 |
1710.222 |
1217.267 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3166.973 |
2321.000 |
1905.000 |
|
|
|
Sales of Traded Goods |
1.914 |
0.000 |
0.000 |
|
|
|
Other Income |
96.591 |
84.492 |
53.227 |
|
|
|
TOTAL (A) |
3265.478 |
2405.492 |
1958.227 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
1876.218 |
1379.390 |
1213.520 |
|
|
|
Purchase of Traded Goods |
2.061 |
0.000 |
0.000 |
|
|
|
Differential Excise Duty on Finished Stock |
5.718 |
3.437 |
0.000 |
|
|
|
Manufacturing Expenses |
344.680 |
210.260 |
125.492 |
|
|
|
Employees Cost |
148.666 |
114.883 |
88.356 |
|
|
|
Administrative Expenses |
196.100 |
136.946 |
132.098 |
|
|
|
Amortization of Leasehold land |
0.242 |
0.241 |
0.238 |
|
|
|
Decrease / (Increase) in Stock |
(44.185) |
(51.066) |
5.712 |
|
|
|
TOTAL (B) |
2529.500 |
1794.091 |
1565.416 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
735.978 |
611.401 |
392.811 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
46.662 |
44.152 |
41.429 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
689.316 |
567.249 |
351.382 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
64.251 |
49.324 |
32.506 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
625.065 |
517.925 |
318.876 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
105.373 |
117.511 |
67.593 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
519.692 |
400.414 |
251.283 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
812.891 |
510.607 |
313.406 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
0.000 |
14.812 |
0.000 |
|
|
|
Transfer to General Reserve |
52.000 |
40.500 |
25.200 |
|
|
|
Final Proposed Dividend |
64.184 |
34.561 |
24.686 |
|
|
|
Tax on Dividend |
10.412 |
8.257 |
4.196 |
|
|
BALANCE CARRIED
TO THE B/S |
1205.987 |
812.891 |
510.607 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
2507.076 |
1751.580 |
1445.685 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
542.913 |
316.891 |
296.969 |
|
|
|
Stores & Spares |
0.088 |
5.032 |
1.585 |
|
|
|
Capital Goods |
0.000 |
5.581 |
0.000 |
|
|
TOTAL IMPORTS |
543.001 |
327.504 |
298.554 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.53 |
8.11 |
25.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
914.420 |
1017.790 |
1181.170 |
|
Total Expenditure |
741.660 |
836.600 |
887.170 |
|
PBIDT (Excl OI) |
172.760 |
181.190 |
294.000 |
|
Other Income |
0.000 |
0.000 |
1.490 |
|
Operating Profit |
172.760 |
181.190 |
295.490 |
|
Interest |
10.930 |
10.850 |
19.710 |
|
Exceptional Items |
0.000 |
(30.980) |
(14.600) |
|
PBDT |
161.830 |
139.360 |
261.180 |
|
Depreciation |
16.680 |
17.090 |
18.120 |
|
Profit Before Tax |
145.150 |
122.280 |
243.060 |
|
Tax |
46.640 |
36.070 |
82.440 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
98.510 |
86.210 |
160.630 |
|
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 |
98.510 |
86.210 |
160.630 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
15.91
|
16.64 |
12.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.73
|
22.31 |
16.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
28.59
|
35.29 |
33.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.43
|
0.52 |
0.49 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.79
|
0.87 |
1.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.23
|
4.76 |
3.14 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS
The Company’s operations
have shown impressive growth during the year. The net sales during the year
have gone up to Rs.3166.973 Millions from Rs.2321.000 Millions, registering a
growth of 36% over the previous year.
The robust growth in
sales can be attributed to the phenomenal growth in ATBS sales which grew by
more than 65% as compared to previous year. During FY11 we have crossed sales
of 11,000 MT of ATBS.
The Company’s
Profit Before Tax has also gone up from Rs.517.925 Millions in previous year to
Rs.625.065 Millions in current year registering a robust growth of 21%.
AWARDS AND
RECOGNITIONS
·
Mr. Vinod Saraf was awarded the Business Leader of
the Year (Innovation) by CHEMTECH CEW Leadership and Excellence Awards 2011
·
Forbes Asia listed VOL amongst 200 Best Under A
Billion companies for 2010
·
Subject was ranked amongst the Top 10 Fastest
Growing Companies in India for the Year 2010 by The Economic Time Intelligence
Group January 2011); They were ranked amongst the Top 10 in 2009 as well
·
Subject was ranked #7 amongst the Top 100 Fastest
Growing Small Companies in India by The Economic Times Intelligence Group
(September 2010); They were ranked #14 in 2009
·
Subject awarded with special citation for
Development of Indigenous Technology by Indian Chemical Council
·
Certificate of Merit for achieving Zero Accident
Frequency Rate (2007-2009) received from National Safety Council - Maharashtra
Chapter (Lote Plant)
·
Lote and Mahad Plant certified with ISO 9001:2008
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMY OVERVIEW
The global economy
which had witnessed negative growth during 2009-10 managed a smart recovery
during 2010-11. The extent of recovery varied across countries with the
emerging markets once again putting in a better performance and pullback as
compared to the developed economies. India along with China and Brazil clocked
in impressive growth over the last year. This growth has improved the business
sentiments but there are still points of worry in the nature of economic instability
in a few countries of Europe and political unrest in the Middle East.
The Indian economy
has shown notable ability with which it has faced the global financial crisis.
As per the Central Statistics Office (CSO), there are clear indications that the
Indian economy is well and truly on its way to attaining the growth which was
seen prior to the global financial crisis. As per the Advanced Estimates of the
CSO, the Indian economy has clocked in an impressive 8.6% growth in 2010-11.
This growth is attributed to a strong rebound in agriculture and the sustained
growth in the manufacturing sector. Based on the performance of the economy
over the last five years and analysis of the underlying trends, India’s real
GDP is expected to grow by 9% in 2011-12.
INDUSTRY OVERVIEW
The chemical
industry as a whole managed a smart recovery in 2010-11 on the back of improved
business environment triggered by a stronger global economy. According to
Moody’s Investors Service, the sector outlook for the chemical industry in
North America and Europe has changed from negative to stable reflecting a
marked improvement in the industrial demand across these regions.
The global
chemical industry is valued at about US$3400 billion. The total size of Indian
chemical industry is estimated to be around US$ 83 billion and is ranked 12th
in world. While the Indian chemical industry has been recognised for its
competitiveness in cost and quality it is yet to make its presence felt in a
big way in the international markets.
Though the global
chemical industry took a nosedive due to the global economic slowdown, the
Indian chemical industry has been resilient and has been able to recover faster
mainly due to strong domestic demand. The Indian chemical industry is expected
to reach US$130 billion by 2015. A growing economy, low per capital chemical
consumption and growing middle class are some of the key drivers for sustained
demand growth in end-use industries.
COMPANY OVERVIEW
Incorporated in 1989,
Subject has been manufacturing specialty organic intermediaries and monomers.
It is listed on Bombay Stock Exchange and National Stock Exchange and has over
400 employees.
Subject is the
world’s largest manufacturer of Isobutylbenzene (IBB). It began commercial
production of IBB at its factory in Mahad, Maharashtra in 1992, based on
technology from the renowned Institut Francais du Petrole (IFP) in France. It
has since expanded its capacity in phases to 14,000 MT and supplies to all
major Ibuprofen manufacturers globally.
Subject is also
the second largest manufacturer of 2-Acrylamido 2-Methylpropane Sulfonic Acid
(ATBS) in the world. It began commercial production of ATBS at its plant in
Lote Parashuram, Maharashtra in 2002, based on technology sourced from the
National Chemical Laboratories, Pune. It has since expanded its capacity to
12,000 MT. Subject commissioned its Isobutylene (IB) plant, the largest in
India, in June 2010, with a capacity of 12,000 MT.
IBB
IBB is a
high-value specialty chemical, widely used as an intermediate in the
preparation of Ibuprofen, an antiinflammatory/ anti-arthritic/analgesic
medicine for pain management. Ibuprofen is primarily manufactured in India,
China and the USA. IBB is also used in the perfumery industry.
2-ACRYLAMIDO-2-METHYLPROPANE
SULFONIC ACID (ATBS), SODIUM SALT OF ATBS (NA-ATBS), N-TERTBUTYLACRYLAMIDE
(TBA)
These specialty
monomers have wide applications and mainly in oil-field recovery, water
treatment, acrylic fiber manufacturing, adhesives and personal care products.
They are also used in mining industry, coatings and as dispersing and
flocculating agents. A major potential application for the monomer is for
Enhanced Oil Recovery (EOR). With the big increase in oil prices, many major
companies are in the process of developing these projects. ATBS is a specialty
monomer used in oilfield and mining chemicals, water-treatment, acrylic fiber,
personal care, emulsions and adhesives, among others. The global demand of ATBS
is growing at 10-15% annually, due to increased usage of the specialty monomer.
There are very few manufacturers of these products world-wide. Demand for ATBS
in India is at present very limited. A major portion of the production in India
is exported. The main destinations for exports are Europe, America and other
Asian countries. At present, there are only 3 manufacturers of ATBS in the
world.
IB
Isobutylene (IB)
is a hydrocarbon of significant industrial importance. It is used as an intermediate
in the production of variety of products. The output from the IB plant is being
used for captive consumption, as raw material for ATBS, as well as domestic
sales.
PERFORMANCE
OVERVIEW
During the
previous year, their Profit After Tax grew by 30% on the back of a 36% growth
in the Total Income. The financial performance of Subject in the past 5 years
has been stellar:
·
Net Sales has grown from Rs. 573.500 Millions in
FY06 to Rs. 3167.000 Millions in FY11; CAGR of 41%
·
PAT has grown from mere Rs. 19.500 Millions in FY06
to Rs. 519.700 Millions in FY11; CAGR of 93%
·
Net Worth has more than quadrupled from Rs. 273.100
Millions to Rs. 1437.000 Millions; CAGR of 39%
INTERNAL CONTROL
The Company’s
appropriate internal control systems for business processes, with regard to
efficiency of operations, financial reporting, compliance with applicable laws
and regulations ensure that all assets are protected against losses and
unauthorised use. It also has an adequate system, commensurate with its size
and nature of operations.
All operating
parameters are complied with and controlled. Regular internal audits and checks
ensure that responsibilities are executed efficiently. No significant internal
control lapses were identified.
The Audit
Committee of the Board of Directors actively reviews the adequacy and
effectiveness of internal control systems and suggests improvement for
strengthening them from time to time. The Audit Committee of the Board met four
times during the period.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF (AS ON 31.03.2011)
a)
Counter Guarantees given by the Company in respect
of guarantees issued / Letter of Credit established by banks on behalf of the
company Rs.174.364 Millions (Previous Year Rs.120.443 Millions)
b)
Estimated amount of contracts remaining to be
executed on Capital Account (Net of Advance) Rs. 265.577 Millions (Previous
Year Rs.95.688 Millions).
c)
Disputed Excise duty demands of Rs.6.794 Millions
(Previous Year Rs.3.878 Millions) for which company has gone in appeal. The
Company has been legally advised that the demand is likely to be either deleted
or substantially reduced and accordingly no provision has been made.
d)
Disputed Income tax demands of Rs.16.010 Millions
pertaining to various assessment years against which a sum of Rs.6.734 Millions
has been paid (Previous Year Rs.26.600 Millions and paid Rs.6.734 Millions)
Based on judicial decisions and interpretations of other relevant provisions of
the statute, the Company is hopeful of the demand likely to be either deleted
or substantially reduced and accordingly no provision has been made.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED ON DECEMBER 31, 2011
(Rs. in millions)
|
Sr. No. |
Particular |
3 Months Ended |
Nine Months
Ended |
|
|
|
|
31.12.2011 (Unaudited) |
30.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
1181.173 |
1016.722 |
3110.926 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) (Increase) / Decrease in Stock in Trade |
29.634 |
(0.334) |
(1.940) |
|
|
b) Consumption of Raw Materials |
664.002 |
639.741 |
1884.342 |
|
|
c) Employees Cost |
48.186 |
44.740 |
137.003 |
|
|
d) Depreciation |
18.121 |
17.091 |
51.894 |
|
|
e) Other Expenditure |
145.348 |
152.449 |
445.295 |
|
|
f) Total |
905.291 |
853.687 |
2516.594 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
275.882 |
163.035 |
594.332 |
|
|
|
|
|
|
|
4. |
Other Income |
1.490 |
1.075 |
3.948 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
277.372 |
164.110 |
598.280 |
|
|
|
|
|
|
|
6. |
Interest |
19.705 |
10.847 |
41.480 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
257.667 |
153.263 |
556.800 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
(14.598) |
(30.979) |
(46.299) |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
243.069 |
122.284 |
510.501 |
|
|
|
|
|
|
|
10. |
Tax Expense |
82.438 |
36.070 |
165.144 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
160.631 |
86.214 |
345.357 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
160.631 |
86.214 |
345.357 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
98.745 |
98.745 |
98.745 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
3.25 |
1.75 |
6.99 |
|
|
b) Basic and diluted EPS after extraordinary items |
3.25 |
1.75 |
6.99 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
12348153 |
12348153 |
12348153 |
|
|
- Percentage of Shareholding |
25.01 |
25.01 |
25.01 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
37024347 |
37024347 |
37024347 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
74.99 |
74.99 |
74.99 |
Notes:
1. The above results were reviewed by the Audit Committee
and taken on record by the Board of Directors at their meeting held on
28.01.2012.
2. The Statutory Auditors of the Company have carried out
a limited review of the results for the quarter and Nine months ended
31.12.2011.
3. The Company has provided for the gratuity and leave
encashment expenses on an estimated basis.
4. The Company did not have any Investor complaints pending
as on 31.12.2011. There were 2 complaints received and resolved during the
quarter ended 31.12.2011.
5. As the Company's business activity falls within a
single primary business segment viz. "Manufacturing of Chemicals" the
disclosure requirement of Accounting Standard (AS-17) "Segment
Reporting" is not applicable.
WEBSITE DETAILS
PROFILE
Subject was established in 1989 and manufactures specialty organic
intermediaries, monomers, and polymers. It is listed on the Bombay Stock
Exchange and has over 300 employees.
Subject is the world’s largest manufacturer of Isobutylbenzene (IBB), which is
the basic raw material for manufacture of Ibuprofen (the popular analgesic bulk
drug). It began commercial production of IBB at its factory in Mahad, Maharashtra
in 1992 based on technology from the renowned Institute Francais du Petrole
(IFP) in France. It has since expanded its capacity in phases to 14,000 TPA and
supplies to all major Ibuprofen manufacturers in the world.
Subject is also the second largest manufacturer of 2-Acrylamido 2-Methylpropane
Sulfonic Acid (ATBS) in the world. ATBS is a specialty monomer with several
applications including the manufacture of acrylic fibres, personal care
products, water treatment chemical, enhanced oil recovery chemical, etc. It
began commercial production of ATBS at its plant in Lote Parshuram, Maharashtra
in 2002 based on technology sourced from National Chemical Laboratories, Pune.
It has since expanded its capacity to 12,000 TPA
HISTORY
Subject was established in 1989 to
manufacture specialty organic chemical. It has since grown to become the
world’s largest manufacturer of Isobutylbenzene (IBB) and second largest
manufacturer of 2-Acrylamido 2-Methylpropane Sulfonic Acid (ATBS). The
company’s products are exported to customers in countries across Europe,
America and Asia. Below are some significant milestones in its history:
- 1989: Vinati
Organics Limited (VOL) established
- 1992: Isobutylbenzene
(IBB) plant comes onstream with 1200 MTA production capacity
- 1996: IBB
capacity expansion to 3000 MTA
- 1997: IBB
capacity expansion to 5000 MTA
- 2002:
ATBS plant onstream with 1000 MTA production capacity
- 2006: IBB
capacity expansion to 10,000 MTA. ATBS capacity expansion to 3600 MTA
- 2007: Started
n-tertiary Butylacrylamide (TBA) production
- 2008: IBB
capacity expansion to 14,000 MTA
- 2009: ATBS
capacity expansion to 12000 MTA. TBA capacity expansion to 500 MTA
- 2010:
Isobutylene plant comes on stream with a capacity of 12000 MTA
MANAGEMENT
Mr. Vinod Saraf
Managing Director
Vinod Saraf is the founder of Subject. Prior to founding Subject, Vinod Saraf
had 23 years of industrial experience with Bhilwara Group, Modern Syntex
(India) Limited and Grasim Industries Limited. As Vice President of the chemical
division at Grasim, he was responsible for identification of
chemical/petrochemical projects, technical tie-up and feasibility studies etc.
During this period he was involved in the implementation of the gas based
sponge iron project of Grasim. Subsequently, he was nominated "Managing
Director (Finance and Administration)" on the Board of Directors of
Mangalore Refinery and Petrochemical Limited. He graduated top of his class
from BITS Pilani (MBA) and Rajasthan University (B. Com).
Mr. Girish M. Dave
Non Executive Chairman and Director
He is an M.Com, LLB and CAIIB graduate. He is an eminent advocate and senior
partner of well-known law firm, M/s. DAVE and GIRISH and CO., Advocates, with
over 46 years of experience in the legal field. The Company has benefited
substantially from his advice and guidance. Due to his immense knowledge, he
has catalyzed a wide range of advancements, resulting in long-term benefits for
the Company.
Mr. Mohit Rajesh Mutreja
Director – Finance
Mohit has 5 years of experience in the equity and debt capital markets in the
US and India. Prior to joining Vinati Organics, Mohit was an investment
professional at DE Shaw and Company in Mumbai specializing in India public
equities and convertible bonds. He has also worked as an investment
professional at Citadel Investment Group in Chicago focusing on US fixed
income. Mohit graduated summa cum laude from the Management and Technology
program at the University of Pennsylvania, receiving a Bachelor of Science in
Economics (Finance) from the Wharton School, and a Bachelor of Science in
Computer Engineering from the School of Engineering and Applied Sciences.
Mr. Chintaman Bhaskar Gokhale
Director
He is on the Building Advisory Committee of a number of financial institutions
viz. NSE, CCIL, NSDL, CARE. He conducted studies in Project Management in
Building Construction at Rachana Sansad in Mumbai and is the Director of
Project Management Institute. He was a nominee on the Board of Directors of a
number of companies on behalf of LIC and ICICI. He is on the Board of Directors
of the Company since 1994 and is a member of its Audit Committee. He was an
Associate of The Royal Institute of British Architects and also a Fellow of The
Indian Institute of Architects. He is a former Executive Director (Buildings)
of Life Insurance Corporation of India. He is registered with the Council of
Architecture and is now practicing as a Consulting Architect. The Company has
benefited by his 48 years of experience.
Mr. Ayilur Akileswaraiyer Krishnan
Director
He is a Chemical Engineer and has 48 years of experience in the Petro Chemical
Industry. He is also Director of other public limited companies, namely Andhra
Petrochemical Limited. He was appointed as a Director and has vast and
diversified technological and chemical expertise of running the manufacturing
unit in such industries. He has helped the Company in improving its systems and
procedures through technological advancement.
Mr. Sunil
Banwarilal Saraf
Director
He is a Commerce Graduate from the Rajasthan
University with a rich 23-year experience. He is Director on the Board since
inception of the Company.
Mr. Anandkumar Tibrewala
Director
Mr. Anandkumar Tibrewala is a Fellow member of The Institute of Chartered
Accountants of India. He is an Associate Member of The Institute of Company
Secretaries of India. He is a Commerce graduate from the University of Bombay.
He is the Founder Partner of A.D. and Company, a firm of practicing Chartered
Accountants in the field of audit, taxation and financial services. He spent
over 22 years in public accounting practice during which he had the exposure of
working with various corporate and non-corporate clients.
Ms. Vinati Saraf
Mutreja
Executive Director
Vinati Saraf Mutreja joined VOL in 2006. She
is instrumental in securing long-term sales contracts with several MNC
customers as well as in streamlining finance and production processes. Prior to
joining Vinati Organics, Vinati worked as a Consultant for Mercer Oliver Wyman,
a New York based consulting firm specializing in financial services and risk
management. She also worked as summer analyst at Insight Venture Partners in
New York and Citibank in Mumbai. Vinati attended the University of
Pennsylvania, where she received Bachelors in Economics (Finance) from the
Wharton School and Bachelors in Applied Science, Biotech and Pharmaceutical
Development from the School of Engineering and Applied Sciences.
Ms. Viral Saraf Mittal
Director-Corporate Strategy
Viral Saraf Mittal joined VOL in May, 2009.
Prior to joining Vinati Organics, Viral worked as an analyst at Citi Private
Bank in New York. She has also worked as a summer analyst at Citi Private Bank
in New York, Ernst and Young in Mumbai and ICICI Bank in Mumbai. Viral graduated
from the University of Pennsylvania with a Bachelors of Science in Economics
(Finance and Management) from the Wharton School.
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. 50.59 |
|
|
1 |
Rs. 80.34 |
|
Euro |
1 |
Rs. 67.13 |
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 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.