1. Summary Information
|
|
|
Country |
|
|
Company Name |
SADHANA NITRO
CHEM LIMITED |
Principal Name 1 |
Mr. Asit D. Javeri |
|
Status |
Moderate |
Principal Name 2 |
Mr. Arvind R. Doshi |
|
|
|
Registration # |
11-016698 |
|
Street Address |
207, Kakad
Chambers, 132, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra |
||
|
Established Date |
21.07.1973 |
SIC Code |
-- |
|
Telephone# |
91-22-66604881 – 5 (5 Lines) |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-66604147 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Chemical Intermediates |
|
|
# of employees |
228
(Approximately) |
Product Name 2 |
Heavy organic Chemicals |
|
Paid up capital |
Rs.92,008,000/- |
Product Name 3 |
Performance Chemicals |
|
Shareholders |
Promoter and
Promoter Group (72.11%) Public
shareholding (27.89%) |
Banking |
State Bank of India |
|
Public Limited Corp. |
YES |
Business Period |
39 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
B (29) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
Belgium |
Anuchem B.V. B.A. |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
162,455,000 |
Current Liabilities |
159,340,000 |
|
Inventories |
111,242,000 |
Long-term Liabilities |
521,360,000 |
|
Fixed Assets |
331,378,000 |
Other Liabilities |
15,907,000 |
|
Deferred Assets |
28,569,000 |
Total Liabilities |
696,607,000 |
|
Invest& other Assets |
79,965,000 |
Retained Earnings |
6,090,000 |
|
|
|
Net Worth |
17,002,000 |
|
Total Assets |
713,609,000 |
Total Liab. & Equity |
713,609,000 |
|
Total Assets (Previous Year) |
682,318,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
545,103,000 |
Net Profit |
(50,257,000) |
|
Sales(Previous yr) |
349,793,000 |
Net Profit(Prev.yr) |
(91,694,000) |
MIRA
INFORM REPORT
|
Report Date : |
26.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
SADHANA NITRO CHEM LIMITED |
|
|
|
|
Registered
Office : |
207, Kakad Chambers, 132, Dr. Annie Besant Road, Worli, Mumbai –
400018, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
21.07.1973 |
|
|
|
|
Com. Reg. No.: |
11-016698 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.92.008 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110MH1973PLC016698 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS37459C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCS1231R |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
The company is engaged in manufacturing of chemical intermediates,
heavy organic chemicals and performance chemicals. |
|
|
|
|
No. of Employees
: |
228 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 60000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. There appears
huge accumulated losses recorded by the company. Profitability of the company
is under pressure. However, trade relations are reported as fair. Business is
active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
D (Long Term Loans) |
|
Rating Explanation |
This rating are in default or are expected to be in default soon |
|
Date |
December 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
207, Kakad Chambers, 132, Dr. Annie Besant Road, Worli, Mumbai –
400018, Maharashtra, India |
|
Tel. No.: |
91-22-66604881 – 5 (5 Lines) |
|
Fax No.: |
91-22-66604147 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
47, M.I.D.C. Industrial Area, Roha, District Raigad – 402116,
Maharashtra, India |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Asit D. Javeri |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Arvind R. Doshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arvind L. Apte |
|
Designation : |
Director |
|
Date of Birth/Age : |
76
Yrs |
|
Qualification : |
Arts Graduate |
|
Experience : |
He has an experience of Textile Industry and Sugar Industry over a period of 45 years. He joined the company as a Director from 7th August, 1973. |
|
Other Directorship: |
· Sadhana Nitro Chem Limited · Shanudeep Private Limited · Dr. Writers Food Products Private Limited |
|
|
|
|
Name : |
Mr. Ramesh A. Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Priyam S. Jhaveri |
|
Designation : |
Director |
|
Date of Birth/Age : |
56 Yrs |
|
Qualification : |
Commerce Graduate |
|
Experience : |
He is a Commerce graduate and having experience in
chemical industries of Nanavati Groups of companies. He joined the company as
a Director from 11th March, 1996. |
|
Other Directorship: |
·
Sadhana Nitro Chem Limited · Indian Extractions Limited · Excel Industries Limited · Phthalo Colours & Chemicals (I) Limited · Lifestyle Networks Limited Committee · Sonera Investments Private Limited · Sonega Trades & Investments Private Limited ·
Nanavati Sons Private Limited · Nanavati Speciality Chemicals Private Limited · Nanavati Electronics Private Limited ·
Nanavati Organics Private Limited ·
Nanavati Chemex Private Limited · R.L. Dalal & Co. Private Limited ·
Medchem Technologies Private Limited |
|
|
|
|
Name : |
Mr. Dhirendra M. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Abhishek A. Javeri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nitin R. Jani |
|
Designation : |
Director and Company Secretary |
|
|
|
|
AUDIT
COMMITTEE |
Mr.
D.M. Shah Mr.
Arvind R. Doshi Mr.
Priyam S. Jhaveri |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
673,804 |
7.32 |
|
|
5,960,611 |
64.78 |
|
|
6,634,415 |
72.11 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6,634,415 |
72.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
560 |
0.01 |
|
|
621 |
0.01 |
|
|
1,181 |
0.01 |
|
|
|
|
|
|
212,270 |
2.31 |
|
|
|
|
|
|
1,561,281 |
16.97 |
|
|
630,949 |
6.86 |
|
|
160,734 |
1.75 |
|
|
66,421 |
0.72 |
|
|
47,007 |
0.51 |
|
|
35,050 |
0.38 |
|
|
12,256 |
0.13 |
|
|
2,565,234 |
27.88 |
|
Total Public shareholding (B) |
2,566,415 |
27.89 |
|
Total (A)+(B) |
9,200,830 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
Total (A)+(B)+(C) |
9,200,830 |
0 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in manufacturing of chemical intermediates,
heavy organic chemicals and performance chemicals. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
|
Licensed
DGTD Rgn. Capacity M.T.
(P.A.) |
*
Installed Capacity M.T.
(P.A.) |
Actual
Production M.T. |
|
Organic Intermediates |
|
3575 |
3575 |
1940 |
|
Chemical Intermediates |
|
9036 |
9036 |
9344 |
Note:
* Certified by Chairman and Managing Director on which the Auditors have
relied.
GENERAL INFORMATION
|
No. of Employees : |
228 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India, Mumbai and Roha,
Maharashtra, India ·
Axis Bank Limited, Mumbai, Maharashtra, India ·
State Bank of Patiala, Mumbai, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Advocates and
Solicitors : |
|
|
Name : |
Mulla and Mulla Craigie Blunt and Caroe |
|
Address : |
Mulla House, 51, Mahatma Gandhi Road, Mumbai – 400023, Maharashtra,
India |
|
|
|
|
Auditors : |
|
|
Name : |
V. Sankar Aiyar and Company Chartered Accountants |
|
Address : |
2-C, Court Chambers,
35, New Marine Lines, Mumbai – 400020, Maharashtra, India |
|
|
|
|
Holding Company: |
Manekchand Panachand Trading Investment Company Private Limited |
|
|
|
|
Subsidiaries : |
·
Anuchem B.V.B.A., Belgium ·
Anuchem Pte. Limited, Singapore ·
Lifestyle Networks Limited |
|
|
·
|
|
Associate
Companies : |
·
IBI Engineering and Services Private Limited ·
Amnisera Corporation ·
Manekchand Panachand and Company ·
Chandra Net Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
1000000 |
Unclassified Share |
Rs.10/- each |
Rs.10.000 Millions |
|
|
Total |
|
Rs.110.000
Millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
9200830 |
Equity Shares |
Rs.10/- each |
Rs.92.008
Millions |
|
|
|
|
|
1. * Includes capitalisation by issue of fully paid Bonus Shares of
Rs.10/- each.
No. of Shares Face value Capitalised from
Year Ratio
a] 162500 Rs.1.625 Millions
General Reserve 1987-88
2 : 5
b] 487012 Rs.4.870
Millions Share Premium 1995-96 1 : 2
c] 584414 Rs.5.844
Millions Share Premium 2002-03 2 : 5
2. 7155379 Equity Shares of Rs.10/- each issued on 24.10.2008
3. 5960611 Shares (P.Y. 5960611) Held by Holding Company.
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 |
92.008 |
92.008 |
92.008 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6.090 |
6.090 |
69.445 |
|
|
4] (Accumulated Losses) |
(81.096) |
(28.339) |
0.000 |
|
|
NETWORTH |
17.002 |
69.759 |
161.453 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
385.867 |
410.477 |
448.687 |
|
|
2] Unsecured Loans |
135.493 |
72.670 |
58.374 |
|
|
TOTAL BORROWING |
521.360 |
483.147 |
507.061 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
538.362 |
552.906 |
668.514 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
331.378 |
356.493 |
316.571 |
|
|
Capital work-in-progress |
75.843 |
54.494 |
98.692 |
|
|
|
|
|
|
|
|
INVESTMENT |
4.122 |
6.122 |
6.122 |
|
|
DEFERREX TAX ASSETS |
28.569 |
29.448 |
31.463 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
111.242
|
105.840 |
149.394 |
|
|
Sundry Debtors |
105.557
|
59.818 |
101.562 |
|
|
Cash & Bank Balances |
3.393
|
3.641 |
6.358 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
53.505
|
66.462 |
100.906 |
|
Total
Current Assets |
273.697
|
235.761 |
358.220 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
152.514
|
113.716 |
126.706 |
|
|
Other Current Liabilities |
6.826
|
5.765 |
5.491 |
|
|
Provisions |
15.907
|
9.931 |
10.357 |
|
Total
Current Liabilities |
175.247
|
129.412 |
142.554 |
|
|
Net Current Assets |
98.450
|
106.349 |
215.666 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
538.362 |
552.906 |
668.514 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
545.103 |
349.793 |
770.096 |
|
|
|
Other Income |
16.603 |
13.406 |
18.596 |
|
|
|
TOTAL (A) |
561.706 |
363.199 |
788.692 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/ (Decrease) in stock |
(13.405) |
32.867 |
(27.062) |
|
|
|
Raw Material consumption |
340.283 |
200.361 |
494.112 |
|
|
|
Power and Fuel |
83.844 |
42.964 |
95.250 |
|
|
|
Operation and Maintenance |
20.773 |
15.924 |
26.942 |
|
|
|
Salaries, Wages
and Benefits to Employees |
45.717 |
33.945 |
40.574 |
|
|
|
Administrative Expenses |
20.256 |
19.455 |
19.492 |
|
|
|
Selling and Distribution |
20.158 |
13.374 |
23.432 |
|
|
|
Payment to Auditors |
0.388 |
0.340 |
0.358 |
|
|
|
Managerial Remuneration |
5.493 |
4.136 |
4.467 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
124.438 |
|
|
|
TOTAL (B) |
523.507 |
363.366 |
802.003 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
38.199 |
(0.167) |
(13.311) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
53.987 |
55.088 |
56.074 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE/ (LOSS) TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(15.788) |
(55.255) |
(69.385) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
33.591 |
34.423 |
37.420 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(49.379) |
(89.678) |
(106.805) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.878 |
2.016 |
(16.223) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(50.257) |
(91.694) |
(90.582) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(161.669) |
(69.975) |
20.607 |
|
|
|
SHORT
PROVISION OF TAX FOR EARLIER YEARS |
2.500 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(214.426) |
(161.669) |
(69.975) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Sales on FOB Value |
432.797 |
274.253 |
667.646 |
|
|
TOTAL EARNINGS |
432.797 |
274.253 |
667.646 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
63.042 |
54.651 |
143.849 |
|
|
|
Stores Material |
0.000 |
0.000 |
0.318 |
|
|
TOTAL IMPORTS |
63.042 |
54.651 |
144.167 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(5.46) |
(9.75) |
(9.83) |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
30.06.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
138.000 |
137.900 |
212.800 |
172.900 |
82.900 |
|
Total Expenditure |
118.300 |
132.200 |
175.900 |
157.400 |
82.100 |
|
PBIDT (Excl OI) |
19.700 |
5.700 |
36.900 |
15.500 |
0.800 |
|
Other Income |
0.000 |
4.400 |
1.200 |
2.200 |
3.600 |
|
Operating Profit |
19.700 |
10.100 |
38.100 |
17.700 |
4.400 |
|
Interest |
11.800 |
15.000 |
17.200 |
21.300 |
16.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
7.900 |
(4.900) |
20.900 |
(3.600) |
(11.900) |
|
Depreciation |
7.600 |
7.600 |
8.100 |
8.800 |
7.400 |
|
Profit Before Tax |
0.300 |
(12.500) |
12.800 |
(12.500) |
(19.300) |
|
Tax |
0.000 |
0.000 |
0.000 |
(24.500) |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
0.300 |
(12.500) |
12.800 |
12.000 |
(19.300) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
0.300 |
(12.500) |
12.800 |
12.000 |
(19.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.95
|
25.25 |
11.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(9.06)
|
(24.69) |
(13.87) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.16)
|
(15.14) |
(15.83) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(2.90)
|
(1.28) |
(0.66) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
40.97
|
8.78 |
4.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
1.82 |
2.51 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS
The turnover of the company during the year under report registered a
satisfactory growth of more than 54% over the previous year. The company
achieved the turnover of Rs.561.700 Millions (P.Y. Rs.363.200 Millions). The
company could overcome the negative fallout of the global slowdown.
Despite stiff price competition from China, the top line growth has been
achieved due to focused marketing efforts and qualitative edge of the company.
The margin on the products continued to remain under pressure. The earning
before finance cost for the year has been at Rs.38.200 Millions (P.Y. Loss Rs.0.167
Million).
The earnest efforts in controlling cost and improving efficiency at all
levels have borne fruit resulting in reduction in the loss after tax for the
year to Rs.5275.700 Millions (P.Y. Loss Rs.91.699 Millions). The cash loss also
reduced to Rs.1666.600 Millions (P.Y. Loss Rs.57.276 Millions). The reduction
in the loss after tax and cash loss compared to last year has been more than
45% and 70% respectively.
The performance could have been better but for the impact of uncontrollable
factors like span of erratic supply of important raw materials during the year,
unfavourable change in certain input prices, appreciation of INR against USD
and escalating fuel cost. Beside there has been escalating finance cost due to
rising interest rates.
The costs continued to remain under stringent monitoring and control.
The company‘s efforts are directed towards improving processes, productivity
and other operational parameters. All efforts are being made to reduce and
control the overheads. Finance cost continued to remain high in view of
increasing interest rate and liquidity crunch.
OUTLOOK
The company has been making several chemicals in different dedicated
plants. Due to unhealthy price competition from China and the changing scenario
in the world chemical market, the company is evaluating to add new products for
better utilisation of the idle capacity without entailing new CAPEX. This will
improve the top line as well as it will contribute towards the improvement in
the overall performance due to economies of scale.
The company has good orders on hand. As more than 80% of the revenue is
from export, the performance of the company mainly follows the Global economy
trend. Major economies which are now on recovery and revival mode are expected
to stabilise in 2011-12. With the stabilization, the companies are now revising
their inventory norms from bare minimum to optimum levels which should provide
good growth opportunities. Indian market is growing. The company will focus on
increasing the local market share.
The company, barring unforeseen circumstances, expects improvement in
turnover. The company will continue to focus on cost control at every level to
improve the operation efficiency which alongwith the increased operating level
and upward revision of product prices is expected to improve the margin.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY
The company engaged in manufacture of chemical intermediates, heavy
organic chemicals and performance chemicals. Unhealthy competition from China
and Indian unorganized sector continues to prevail in the industry. India
emerged as one of the major source for chemical intermediates. The industry
witnessed high degree of uncertainty and slows down following global economy
pattern. The industry is dependent on the basic petro-chemicals, prices of
which were highly volatile during the year.
OPPORTUNITIES AND
THREATS
The company is in the industry since last 37 years. It has a very high
degree of operating synergy, economies of scale and high quality standards. The
products of the company have diverse uses and applications in several
industries ranging from paper, pharmaceutical, agro chemicals, thermal dyes,
light stabilizer, aerospace dyes and dye intermediates etc. Besides, the company
have loyal cliental base, which is well diversified over the World.
The major threat faced by the company are escalating raw material
prices, crude oil prices, increasing interest rate and volatile foreign
exchange market.
MARKET AND OUTLOOK
The company’s major market like Europe, Japan and USA are coming out of
recession. Market conditions are improving with the revival of economies. The
market remained highly price competitive. The costs were under stringent
monitoring and control. The company has taken several initiatives like process
improvement, lower consumption norms, use of cheaper alternate raw material and
fuel. All efforts were made to reduce and control the overheads. Finance cost
continued to remain high due to liquidity crunch consequent to repayment of
term loan installments and operational performance. Gradual product price
increase, improved operating efficiency and stringent control of overheads are
expected to improve the overall performance.
Exports constitute more than 80% of the turn-over. Performance of the
company hence mainly follows the Global economy trend. There is healthy order
book position. Due to interruption in the smooth availability of raw material
consequence to the liquidity crunch hampered continues production resulting in
escalated production cost.
The rate of flow of orders is encouraging. Production facilities are
realigned to meet the demand. The company barring unforeseen circumstances
expects to further improve the turn-over and performance. The company continued
to focus on cost control at every level to improve the operation efficiency
which alongwith the increased operating level and upward revision of product
prices is expected to improve the margin.
PERFORMANCE
The company’s major markets like Europe, Japan and USA. These economies
are reviving with improvement in market condition. Unhealthy price competition
of certain countries continued to affect the market conditions. Turnover of the
company for the year rose to Rs.561.700 Millions as against Rs.363.200 Millions
in the P.Y. registering increase of 54%.
Several initiatives and steps to increase the operating efficiencies,
substitution of cheaper raw materials, control on the costs, alternative
sourcing of the raw materials etc. are expected to contribute in improving the
performance of the company in the current year.
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED
30TH JUNE, 2012
(Rs. in millions)
|
|
|
Quarter ended Unaudited |
Year ended Audited |
|
|
|
Particulars |
30.06.12 |
30.06.11 |
31.03.12 |
|
|
|
(1) |
(2) |
(1) |
|
1 |
Income from operations |
|
|
|
|
|
a) Net Sales/Income from Operations (Net of excise duty) |
81.200 |
135.400 |
654.000 |
|
|
b) Other operating Income |
1.700 |
2.600 |
14.900 |
|
|
Total Income from operations (Net) |
82.900 |
138.000 |
668.900 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
46.300 |
78.100 |
374.100 |
|
|
b) Purchases of stock-in-trade |
- |
- |
- |
|
|
c) Changes in inventories of finished
goods, |
(2.000) |
(2.800) |
0.700 |
|
|
work-in-progress and stock-in-trade |
|
|
|
|
|
d) Employees benefits expense |
12.300 |
12.300 |
45.100 |
|
|
e) Depreciation and amortisation expenses |
7.400 |
7.600 |
31.600 |
|
|
f) Other expenses |
25.500 |
30.700 |
164.600 |
|
|
Total expenses |
89.500 |
125.900 |
616.100 |
|
3 |
Profit/(Loss) from operations before other |
(6.600) |
12.100 |
|
|
|
Income and finance costs (1-2) |
0.000 |
0.000 |
52.800 |
|
4 |
Other Income |
3.600 |
0.000 |
1.800 |
|
5 |
Profit/(Loss) before finance costs (3+4) |
(3.000) |
12.100 |
54.600 |
|
6 |
Finance costs |
16.300 |
11.800 |
66.400 |
|
7 |
Profit/(Loss) before tax (5-6) |
(19.300) |
0.300 |
(11.800) |
|
8 |
Tax expense |
0.000 |
0.000 |
22.600 |
|
9 |
Net Profit (+) / Loss (-) after tax (7-8) |
(19.300) |
0.300 |
10.800 |
|
10 |
Share of Profit(+)/Loss (-) of associates |
0.000 |
- |
- |
|
11 |
Net Profit (+) / Loss (-) for the period
(9+10) |
0.000 |
0.000 |
10.800 |
|
12 |
Paid up Equity Share Capital |
92.000 |
92.000 |
92.000 |
|
|
(Face Value of Rs. 10/- each) |
|
|
|
|
13 |
Reserve excluding Revaluation Reserves as
per Balance Sheet of Previous accounting year. |
(83.500) |
(74.600) |
(64.200) |
|
|
||||
|
14 |
Basic and Diluted Earnings per share (Rs.) |
(2.10) |
0.03 |
1.16 |
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
1) Public Shareholding |
|
|
|
|
|
- Number of shares |
2566415 |
2566515 |
2566415 |
|
|
- Percentage of shareholding |
27.89% |
27.89% |
27.89% |
|
|
2) Promoters & Promoters group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of shares |
5551112 |
5551112 |
5551112 |
|
|
- Percentage of shares (as a % of the total |
83.67% |
83.32% |
83.67% |
|
|
shareholding of Promoter and Promoter
Group) |
|
|
|
|
|
- Percentage of shares (as a % of the total |
66.33% |
60.33% |
66.33% |
|
|
share capital of the company) |
|
|
|
|
|
b) Non-Encumbered |
|
|
|
|
|
- Number of shares |
1083303 |
1111553 |
1083303 |
|
|
- Percentage of shares (as a % of the total |
16.33% |
16.68% |
16.33% |
|
|
shareholding of Promoter and Promoter
Group) |
|
|
|
|
|
- Percentage of shares (as a % of the total |
11.77% |
12.08% |
11.77% |
|
|
share capital of the company) |
|
|
|
|
|
SEGMENT REPORTING - GEOGRAPHICAL |
|
|
|
|
1 |
Segment Revenue |
|
|
|
|
|
a. Export Segment |
58.500 |
112.500 |
531.800 |
|
|
b. Domestic Segment |
23.000 |
25.300 |
124.800 |
|
|
c. Unallocated Revenue |
1.400 |
0.200 |
12.300 |
|
|
Total Net Sales/Income from Operations |
82.900 |
138.000 |
668.900 |
|
2 |
Segment Results Profit (+) / Loss (-)
before tax and interest from each segment |
|
|
|
|
|
a. Export segment |
3.400 |
17.100 |
73.500 |
|
|
b. Domestic segment |
0.800 |
2.400 |
10.800 |
|
|
c. Unallocated Revenue |
0.200 |
0.200 |
1.900 |
|
|
Total |
4.400 |
19.700 |
86.200 |
|
|
d. Unallocated Items |
|
|
|
|
|
Less: (i) Interest |
16.300 |
11.800 |
66.400 |
|
|
(ii) Depreciation |
7.400 |
7.600 |
31.600 |
|
|
Total Profit(+)/Loss(-) Before Tax |
(19.300) |
0.300 |
(11.800) |
Notes:
1.
The Unaudited financial results for the quarter
ended 30th June, 2012 have been reviewed by the audit committee and approved by
the board of directors at their respective meeting held on 13.08.2012. The
statutory auditors of the company have carried out a Limited Review.
2.
Deferred tax in accordance with AS 22 will be
ascertained and necessary effect will be given in the audited accounts as on 31st March,
2013.
3.
The figures of the previous quarter have been
regrouped-classified wherever necessary
4.
The number of the investors complaints
pending at the beginning of the quarter Nil. During this quarter 0 complaints
was received.
The balance pending NIL at the end of the quarter (excluding disputed
/subjudice matters).
5.
Note on Segment
a.
The company is mainly engaged in
manufacturing of chemical intermediates having similar risk and returns
constituting a single segment. Revenue from the other activities pursued is
insignificant. Operation of the company are classified into two primary
geographical segments, namely export and local. This segment have been
identified and reported taking into account exchange control regulations,
underlying currency risk and the internal financial reporting system.
b. Fixed assets used in
the companies business are not identifiable to any particular reportable segment
consequently management believes that it is not to practical to provide segment
disclosure
Contingent
Liabilities not provided for (As on 31.03.2011):
(a) Estimated
amount of contracts remaining to be executed on capital accounts (Net of Payments)
– 1.847 Millions
(b) In respect of
Guarantee given by the Company’s Banker for Central Excise and other purposes –
Rs.0.025 Millions
(c) In respect of
corporate guarantee given by the company to the bank for Loans borrowed by
Indian subsidiary – Rs.29.548 Millions
FIXED ASSETS
·
Leasehold Land
·
Freehold Land
·
Plant and Machinery
·
Buildings
·
Furniture and Fixtures
·
Laboratory Equipments
·
Research and Development
·
Vehicles
BUSINESS DESCRIPTION
Subject is engaged in the manufacturing and marketing of chemicals intermediates, heavy organic chemicals and performance chemicals. SNCL operates in two segments: Export segment and Local segment. It manufactures and markets nitrobenzene and its downstream derivatives for applications in pharma, agro, dyes, plastic additives and epoxy resin hardeners. Its products include meta amino phenol, butane tetra carboxylic acid and anilic di-sulphonic acid, nitrobenzene, metanilic acid, sodium meta nitrobenzene sulfonic acid and butane 1,2,3,4 tetracarboxylic acid. Its subsidiaries include Anuchem B.V.B.A., Anuchem PTE Limited and Lifestyle Networks Limited. As of March 31, 2010, it had an installed capacity of 3,575 metric tons of organic intermediates and 9,036 metric tons of chemical intermediates. During the fiscal year ended March 31, 2010 (fiscal 2010), it had a production of 1,346 metric tons of organic intermediates and 5,865 metric tons of chemical intermediates. For the fiscal year ended 31 March 2010, subject’s revenues decreased 52% to RS375.7M. Net loss increased 6% to RS107.5M. Revenues reflect a decrease in export segment revenue and lower sales from Local segment. Net loss also reflects an increase in interest on long term debt, higher interest on fixed deposits, the presence of consolidation exchange fluctuation and higher selling and distribution expense.
BOARD OF DIRECTORS
Asit Dhankumar Javeri
(Whole Time Directors Chairman of the Board, Managing Director)
Shri. Asit Dhankumar Javeri is Whole Time Directors Chairman of the Board, Managing Director of subject. He holds B.Sc.(Hons), joined the company in January 1985 as Managing Director. Prior to joining the company Shri. A.D. Javeri had experience of 9 years of running chemical industry He has been associated with the company for about 25 years.
Arvind Laxman Apte
(Independent Non-Executive Director)
Shri. Arvind Laxman Apte is an Independent Non-Executive Director of subject since 7th August, 1973. He has an experience of Textile Industry and Sugar Industry a period of 45 years. He is Director Sadhana Nitro Chem Limited., Shanudeep Private Limited., Dr. Writers Food Products Private Limited.
Arvind Raoji Doshi
(Independent Non-Executive Director)
Shri. Arvind Raoji Doshi is an Independent Non-Executive Direct of subject, since 17th September, 1974. He has an experience in industries like Engineering and Automobiles since 1965. He has received Prestigious Dadabhai Naroji International award for Excellence and Achievement in 1999. Also, he has been awarded Samaj Ratna by Mahamastaka Abhishek Committee 2006. Presently he is acting as Chairman and Managing Director of PAE Limited.
Abhishek A. Javeri
(Non-Executive Director)
Shri. Abhishek A. Javeri is Non-Executive Director of subject, since January 24, 2007. He is B.A. in Economics from North Western University, USA, having experience of 3 years.
Priyam S. Jhaveri
(Independent Non-Executive Director)
Mr. Priyam S. Jhaveri is an Independent Non-Executive Director of subject. He is a Commerce graduate and having experience in chemical industries of Nanavati Groups of companies. He joined the company as a Director from 11th March, 1996.
Dhirendra Mangaldas
Shah (Independent Non-Executive Director)
Shri. Dhirendra Mangaldas Shah is an Independent Non-Executive Directo of subject, since July 29, 2002. He is B.Com and LL.B having experience of 42 years as Advocate - Tax Consultant
Ramesh Amarchand
Shroff (Independent Non-Executive Director)
Shri. Ramesh Amarchand Shroff is an Independent Non-Executive Director of subject, since 22nd January, 1985. He is a Law graduate and has an experience of 50 years as Advocate and Solicitors.
Nitin R Jani
(Director and Company Secretary)
Shri. Nitin Rameshchandra Jani is Compliance Officer, Company
Secretary, Whole Time Director of subject. He has Graduation in Commerce as
well as is a member of Institute of Chartered Accountants of India and
Institute of Company Secretaries of India. He joined the company in December,
1984. Prior to joining the company he had an experience of 2 years. He has been
associated with the company for about 25 years.
PRESS RELEASES
Financial
Results for Dec 31, 2011
India, January 09 -- Sadhana Nitro Chem Limited has informed BSE about the Financial Results for the Period ended December 31, 2011.
Disclosures
under Reg. 8A(4) of SEBI (SAST) Regulations, 1997
India, November 25 -- Sadhana Nitro Chem Limited has submitted the disclosure under Regulation 8A(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 to BSEDate of Reporting : September 30, 2011Name of the Company : Sadhana Nitro Chem Limited Total no of outstanding shares of the Company : 9200830Name of the Entity: Manekchand Panachand Trading Investment Company Pvt Limited Details of Transaction Date of Transaction : December 13, 2008Number of Shares pledged : 5551112Aggregate details after the transaction Total no of shares held by the entity in the company: 5960611Total No of shares pledged : 5551112% of total shares pledged to total no of shares held by the entity in the Company : 93.13%% of shares pledged to total no of outstanding shares of the Company : 60.33%
EGM
on Oct 25, 2011
India, October 01 -- Sadhana Nitro Chem Limited has informed BSE that the Extra Ordinary General Meeting (EGM) of the Company will be held on September 25, 2011.
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 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.53.53 |
|
|
1 |
Rs.86.82 |
|
Euro |
1 |
Rs.69.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
NID |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
29 |
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.