MIRA
INFORM REPORT
|
Report Date : |
11.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
SREE RAYALASEEMA ALKALIES AND ALLIED CHEMICALS LIMITED |
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Registered
Office : |
Gondiparla, Kurnool - 518 004, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
24.06.1981 |
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Com. Reg. No.: |
01-003077 |
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Capital Investment
/ Paid-up Capital : |
Rs.864.184 Millions |
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CIN No.: [Company Identification
No.] |
L24110AP1981PLC003077 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacture of Caustic Soda and Allied Products. |
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No. of Employees
: |
983 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 8846000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. The
company has recorded huge external borrowings. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow but
correct. The company can be considered for business dealings with some
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) |
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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 |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
B+ (Long Term Bank Facility) |
|
Rating Explanation |
The risk prone credit quality. It carry high credit risk |
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Date |
January 2012 |
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Rating Agency Name |
ICRA |
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Rating |
A4 (Short Term Bank Facility) |
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Rating Explanation |
The risk prone credit quality. It carry high credit risk. |
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Date |
January 2012 |
Note:
The rating are withdrawn as the period of
notice of withdrawal is completed.
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 / Factory : |
Gondiparla, |
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Tel. No.: |
91-8518-280006/7/8 |
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Fax No.: |
91-8518-280098 |
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E-Mail : |
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Website : |
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Corporate Office : |
40-304, 2nd Floor, K J. Complex, Bhagyanagar, |
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Tel. No.: |
91-8518-289602/03/220164/228750 |
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Fax No.: |
91-8518-289602/03/220164/228750 |
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Administrative office : |
TGV Mansions II Floor, Opposite Institute of Engineers, #
6-2-1012 Khairatabad |
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Tel. No.: |
91-40-3313860 |
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Fax No.: |
91-40-3313875 |
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Branch Office : |
Located
At ·
Chennai ·
Bangalore ·
Mumbai ·
Delhi ·
Hyderabad |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. G Krishna Murthy |
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Designation : |
Chairman |
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Name : |
Mr. M P Murti |
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Designation : |
Director |
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Date of Birth/Age : |
01.12.1919 |
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Qualification : |
M.SC. M.S (Case Western-USA) |
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Experience : |
More than 40 years Industrial experience at very senior level in
Indian and Multi National Companies. |
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Date of Appointment : |
June 25, 1986 |
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Other Directorship: |
·
Novopan Industries Limited ·
Reliance Cellulose Products Limited ·
CIL Securities Limited |
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Name : |
Mr. P N Vedanarayanan |
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Designation : |
Director |
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Name : |
Mr. O D Reddy |
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Designation : |
Director |
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Date of Birth/Age : |
15-03-1940 |
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Qualification : |
B.Sc (Agriculture) |
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Experience : |
More than 35 years experience at Senior level in Management and
Administration in Govt. undertaking. |
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Date of Appointment : |
December 31, 1996 |
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Other Directorship: |
·
Roopa Industries Limited |
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Name : |
Mr. K Karunakar Rao |
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Designation : |
Executive Director and Chief Executive Officer |
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Name : |
Mr. N. Jesvanth Reddy |
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Designation : |
Executive Director (Technical) |
KEY EXECUTIVES
|
Name : |
Mr. P Sitaram |
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Designation : |
Nominee (IDBI) |
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Name : |
Mr. S K Ganguli |
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Designation : |
Nominee (IFCI) upto 07.05.2012 |
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Name : |
Mr. Venus Bhanot |
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Designation : |
(Nominee of IFCI from 07.05.2012) |
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Name : |
Mr. V Radhakrishna Murthy |
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Designation : |
Company Secretary and Chief General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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|
862137 |
1.21 |
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|
30750799 |
43.28 |
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|
31612936 |
44.50 |
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Total shareholding of Promoter and Promoter Group (A) |
31612936 |
44.50 |
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(B) Public Shareholding |
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|
37787 |
0.05 |
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|
19175316 |
26.99 |
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|
615885 |
0.87 |
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|
19828988 |
27.91 |
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|
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|
3211437 |
4.52 |
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|
10111334 |
14.23 |
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|
5060689 |
7.12 |
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|
1220180 |
1.72 |
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|
1220180 |
1.72 |
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|
19603640 |
27.59 |
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Total Public shareholding (B) |
39432628 |
55.50 |
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Total (A)+(B) |
71045564 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
71045564 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Caustic Soda and Allied Products. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
983 (Approximately) |
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Bankers : |
·
Indian Bank ·
United Bank of India ·
The South Indian Bank Limited ·
IDBI Bank Limited ·
Canbank Factors Limited ·
The Federal Bank Limited |
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Facilities : |
Notes: Long term
Borrowings SECURITY A)
DEBENTURES 1) The above
Debentures issued to IDBI are secured by first charge of all the Company’s
immovable properties both present and future ranking paripassu with the
mortgages and charges created / to be created with other loans and further
secured by first charge by way of mortgage of Company’s properties (save and
except book debts and assets exclusively charged / to be charged in favour of
IDBI) including movable machinery, machinery spares, tools and accessories
present and future subject to prior charge created and /or to be created in
favour of Company’s Bankers on the Company’s stock of raw materials as well
as to Banks on semi- finished and finished goods, consumable stores and such
other movables as may be agreed to by the Trustees for securing the
borrowings for working capital requirements in the ordinary course of
business and further secured by pledge of 8,04,000 Nos. of APGPCL Equity
shares of Rs.10/- each and guaranteed by the Ex-Managing Director, Sri
T.G.Venkatesh. 2) The above
series “A” debentures issued to IFCI are secured in favour of their Trustees
by way of first charge on all immovable properties situated at Bellary both
present and future and further secured by way of first charge on company’s
movable (save and except book-debts), including movable machinery, machinery
spares, tools and accessories, present and future, subject to prior charge
created and/or to be created in favour of company’s bankers on the stock of
raw materials, semi finished foods, consumable stores and such other movable,
as may be agreed to by the trustees, for securing the borrowings for working
capital requirements in the ordinary course of business and further
guaranteed by Ex-Managing Director, Sri T.G.Venkatesh. 3) The above
series “B & C” debentures issued to IFCI are secured in favour of their
Trustees by way of first charge on all immovable both present and future and
further secured by way of firs charge on company’s movable (save and except
book-debts), including movable machinery, machinery spares, tools and
accessories; present and future, subject to prior charges created and / or to
be created in favour of company’s bankers on the stock of raw materials, semi
finished goods, consumabler stores and such other movable, as may be agreed
to by the trustees, for securing the borrowings for working capital
requirements in the ordinary course of business and further guaranteed by Ex-
Managing Director, Sri T.G.Venkatesh. B)
TERM LOANS 1) The above
Term Loans and Deferred loans from Institutions [except the Term Loan amount
of Rs.323.421 millions from M/s IFCI Limited. secured by first exclusive
charge on the building, plant and machinery acquired under project schemes of
Fatty Acid, Pottassium Hydroxide / and power plant at Bellary are secured by
first charge on all the immovable properties both present and future and
further secured by first charge by way of hypothecation of all movables (save
and except book debts and inventories including movable machineries, spares,
tools, accessories both at present and future, subject to prior charges
created/ to be created in favour of the company’s bankers as specified
movables for working capital requirements) and further Guaranteed by the
Ex-Managing Director, Sri T.G.Venkatesh. IFCI’s Additional Margin money for
working capital loan outstanding of Rs.531.25 Millions is further secured by
pledge of 5,36,000 Nos. of APGPCL Equity shares of Rs.10/- each. 2) The above
Term loans from Banks are secured by first pari passu charge on fixed assets
of Chloromethanes Project, and 2nd pari - passu charge on other existing
fixed assets, 2nd pari passu charge on the current assets and personal
guarantee by Ex-Managing Director Sri T.G.Venkatesh. C)
Specific
Letter of Credit The above Letter
of credit s secured by specific charge on import of capital goods out of this
LC and Lien on fixed deposits of build-up margin every month. Short term
borrowings SECURITY a)
Short Term Loans from Banks The above Working
Capital Demand Loans, Cash Credits and Bills discounted by Banks are secured
by 1st pari passu charge by way of hypothecation of inventories and
receivable of the company and further secured by 2nd pari passu
charge on land, building and Plant and machinery and guaranteed by the
Ex-Managing Director, Sri T.G.Venkatesh. b)
Letters of Credit from Banks The above Letter
of credit facility availed from Banks were secured by 1st pari passu by way
of hypothecation of inventories and receivable of the company and further
secured by 2nd pari passu charge on land, building and Plant and machinery
and guaranteed by the Ex-Managing Director, Sri T.G.Venkatesh. c)
Bills discounted with Can Bank Factors Limited The above Sale
Bill discounting facility from Can Bank Factors Limited is secured by second
charge on respective fixed assets of the company ranking pari passu with
charges already created/ to be created by the Company and further guaranteed
by the Ex-Managing Director, Sri T.G.Venkatesh and purchase bill discounting
facility sanctioned by Can Bank Factors Limited are secured by 2nd pari passu
charge on fixed assets of the Company. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Brahmayya and Company Chartered Accountants |
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Address : |
D. No. 21/142-6, S.K.D. Colony Extension, Adoni – 518 301,
Andhra Pradesh, India |
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Tel. No.: |
91-8512-253447/222377 |
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Fax No.: |
91-8512-222377 |
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E-Mail : |
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Associates/Subsidiaries : |
·
Sree Rayalaseema Hi-Strength Hypo
Limited ·
TGV Projects and Investments Private
Limited ·
Brilliant Bio Pharma Limited ·
Sree Maruthi Marine Industries
Limited ·
Sree Maurthi Agro Tech Limited ·
Gowri Gopal Hospitals Private Limited ·
Sree Rayalaseema Galaxy Projects
Private Limited ·
SRHHL Industries Limited ·
Roopa Industries Limited ·
S.K. Salts Private Limited ·
JSM International Limited ·
TGV Securities Private Limited ·
TGV Pharma Private Limited ·
M.V. Salt and Chemicals Private
Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
68000000 |
Equity Shares |
Rs. 10/- each |
Rs. 680.000 millions |
|
19000000 |
Cumulative Redeemable Preference Shares having Coupon rate of 0.01% |
Rs. 10/- each |
Rs. 190.000 millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 870.000
millions |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
67673372 |
Equity Shares |
Rs. 10/- each |
Rs. 676.734
millions |
|
18882332 |
Cumulative Redeemable Preference Shares |
Rs. 10/-
each |
Rs. 188.823
millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 865.557
millions |
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
67493286 |
Equity Shares |
Rs. 10/- each |
Rs. 674.933 millions |
|
18882332 |
Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 188.823 millions |
|
|
Add: Amount received on
forfeiture of 1,80,086 equity shares originally issued in 1995-96 |
Rs. 10/- each |
Rs. 0.428 millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 864.184
millions |
NOTES:
1.
RECONCILIATION OF NUMBER OF SHARES OUTSTANDING
|
EQUITY SHARES |
No. of Shares |
|
At the beginning of the year |
67493286 |
|
Add : Issued during the year |
|
|
Less : Bought back during the year |
|
|
At the end of the year |
67493286 |
|
|
|
|
PREFERENCE SHARES |
|
|
At the beginning of the year |
18882332 |
|
Add : Issued during the year |
|
|
Less : Redeemed during the year |
|
|
At the end of the year |
18882332 |
2.
LIST OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES
|
EQUITY SHARES |
% |
No. of shares |
|
|
|
|
|
The Industrial Finance Corporation of India Limited (IFCI Limited) |
20.24 |
13662402 |
|
IDBI Bank Limited |
9.79 |
6609295 |
|
SRHHL Industries Limited |
16.67 |
11248398 |
|
TGV Projects & Investments Private Limited |
14.31 |
9658206 |
|
PREFERENCE SHARES |
% |
No. of shares |
|
|
|
|
|
IDBI Bank Limited. |
9.57 |
1807959 |
|
Sree Rayalaseema Hi-Strength Hypo Limited |
24.67 |
4658106 |
|
TGV Projects & Investments Pvt. Limited. |
- |
- |
|
Parag Gases and Chemicals Pvt. Limited. |
7.00 |
1320855 |
|
SRHHL Industries Limited. |
6.61 |
1248398 |
3. The Company has no Subsidaries/ Associates and has no Holding Company.
4. Out of Equity shares issued, subscribed and fully paid up 2,86,10,955 No.
of equity shares of Rs.10/- each alloted on preferential allotment to Financial
Institutions IDBI/IFCI by convertion of 15% Rupee/F.C loans and Debentures on
08.03.2005. And 2,00,00,000 No. of equity shares of Rs.10/- each alloted on
preferential allotment to promoters group by conversion of fully paid share
warrants of 1,45,80,000 on 08.03.2005 and 54,20,000 on 25.04.2006.
5. Cumulative Redeemable Preference shares issued, subscribed and fully paid
up 1,88,82,332 of Rs.10/- each having a coupon rate of 0.01% from April, 2002
were alloted on sub-division and consolidation of 50% holding of equity shares
and are redeemable after 15 year in 4 quarterly instalments commencing from
01.04.2018.
6. Redeemable Optionally Fully Convertible Debentures of 5% Series “B” 2,05,177
of Rs.100/- each issued to IFCI Limited as per restructuring package are
redeemable in 96 monthly instalments from April,2008.In case of default in
redemption of debentures, option can be exercised by IFCI Limited to the extent
of outstanding balance as on 31.3.12 of Rs.10.258 millions (as on 31.3.11
Rs.1282.200 millions) and no fixed date of conversion.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
864.184 |
864.184 |
864.184 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1347.419 |
1208.573 |
1072.080 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2211.603 |
2072.757 |
1936.264 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3200.533 |
2711.452
|
2222.744 |
|
|
2] Unsecured Loans |
194.012 |
271.822 |
286.671 |
|
|
TOTAL BORROWING |
3394.545 |
2983.274 |
2509.415 |
|
|
DEFERRED TAX LIABILITIES |
742.504 |
662.712 |
587.091 |
|
|
|
|
|
|
|
|
TOTAL |
6348.652 |
5718.743 |
5032.770 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4598.326 |
3795.547 |
4109.002 |
|
|
Capital work-in-progress |
526.148 |
1029.721 |
234.441 |
|
|
|
|
|
|
|
|
INVESTMENT |
19.882 |
19.881 |
19.831 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
770.161 |
625.199 |
489.994 |
|
|
Sundry Debtors |
662.327
|
714.725
|
568.370
|
|
|
Cash & Bank Balances |
595.569
|
233.120
|
162.284
|
|
|
Other Current Assets |
198.370
|
276.907
|
0.000
|
|
|
Loans & Advances |
567.756
|
457.961
|
783.142
|
|
Total
Current Assets |
2794.183
|
2307.912
|
2003.790
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
766.778
|
696.404
|
1085.054
|
|
|
Other Current Liabilities |
765.551
|
675.272
|
198.450
|
|
|
Provisions |
57.558
|
62.642
|
50.790
|
|
Total
Current Liabilities |
1589.887
|
1434.318
|
1334.294
|
|
|
Net Current Assets |
1204.296
|
873.594
|
669.496
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6348.652 |
5718.743 |
5032.770 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|||
|
|
SALES |
|
|
|
|||
|
|
|
Income |
7880.771 |
7061.139 |
5843.506 |
||
|
|
|
Other Income |
45.884 |
47.268 |
339.145 |
||
|
|
|
TOTAL (A) |
7926.655 |
7108.407 |
6182.651 |
||
|
|
|
|
|
|
|||
|
Less |
EXPENSES |
|
|
|
|||
|
|
|
Cost of materials consumed |
4162.612 |
3978.791 |
|
||
|
|
|
Changes in inventories of finished goods work-in-progress and stock in
Trade |
14.293 |
(33.861) |
|
||
|
|
|
Employee benefits expenses |
275.758 |
246.067 |
|
||
|
|
|
Other expenses |
2479.621 |
1946.844 |
|
||
|
|
|
TOTAL (B) |
6932.284 |
6137.841 |
5217.399 |
||
|
|
|
|
|
|
|||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION & AMORTISATION (A-B) (C) |
994.371 |
970.566 |
965.252 |
|||
|
|
|
|
|
|
|||
|
Less |
FINANCIAL
EXPENSES (D) |
351.797 |
353.887 |
341.885 |
|||
|
|
|
|
|
|
|||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
642.574 |
616.679 |
623.367 |
|||
|
|
|
|
|
|
|||
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
366.255 |
344.856 |
327.228 |
|||
|
|
|
|
|
|
|||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
276.319 |
271.823 |
296.139 |
|||
|
|
|
|
|
|
|||
|
Less |
TAX (H) |
137.473 |
135.330 |
156.000 |
|||
|
|
|
|
|
|
|||
|
|
PROFIT AFTER TAX
(G-H) (I) |
138.846 |
136.493 |
140.093 |
|||
|
|
|
|
|
|
|||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
272.619 |
286.126 |
246.033 |
|||
|
|
|
|
|
|
|||
|
Less |
APPROPRIATIONS |
|
|
|
|||
|
|
|
Transfer to debentures Redemption Reserve |
50.000 |
100.000 |
50.000 |
||
|
|
|
Transfer to General Reserve |
50.000 |
50.000 |
50.000 |
||
|
|
|
Transfer to Capital Redemption Reserve |
50.000 |
0.000 |
0.000 |
||
|
|
BALANCE CARRIED TO
THE B/S |
261.465 |
272.619 |
286.126 |
|||
|
|
|
|
|
|
|||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|||
|
|
|
Export Earnings |
1208.462 |
838.083 |
555.032 |
||
|
|
TOTAL EARNINGS |
|
|
555.032 |
|||
|
|
|
|
|
|
|||
|
|
IMPORTS |
|
|
|
|||
|
|
|
Raw Materials |
772.348 |
512.811 |
463.288 |
||
|
|
|
Coal |
170.201 |
5.100 |
12.940 |
||
|
|
|
Chemicals, Components, Stores & Spares |
71.648 |
55.322 |
23.278 |
||
|
|
|
Capital Goods / Services |
105.216 |
222.529 |
75.022 |
||
|
|
TOTAL IMPORTS |
|
|
574.528 |
|||
|
|
|
|
|
|
|||
|
|
Earnings Per
Share (Rs.) |
2.06 |
2.02 |
4.04 |
|||
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
1966.000 |
2156.500 |
1936.700 |
|
Total Expenditure |
1667.100 |
1845.500 |
1653.900 |
|
PBIDT (Excl OI) |
298.900 |
311.000 |
282.800 |
|
Other Income |
9.900 |
13.300 |
1.500 |
|
Operating Profit |
308.800 |
324.300 |
284.300 |
|
Interest |
87.400 |
94.700 |
96.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
221.400 |
229.600 |
188.100 |
|
Depreciation |
100.800 |
100.900 |
100.800 |
|
Profit Before Tax |
120.600 |
128.700 |
87.300 |
|
Tax |
24.100 |
25.800 |
17.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
96.500 |
102.900 |
69.900 |
|
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 |
96.500 |
102.900 |
69.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.75
|
1.92 |
2.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.51
|
3.85 |
5.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.74
|
4.45 |
4.84 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.13 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.53
|
1.44 |
1.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76
|
1.61 |
1.50 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---- |
|
22] |
Litigations that the firm
/ promoter involved in |
---- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---- |
|
26] |
Buyer visit details |
---- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
Division / Segment Wise Operations:
The Caustic unit
has produced 123534 MT of Caustic Soda as against 111516 M.T for the previous
year. As against net sales of Rs.2492.400 millions for previous year, the current
year sales comes to Rs. 3284.900 millions representing an increase of 32 %.
The Potassium plant
has produced 9537 MT of Potassium Hydroxide as against 12111 MT for the
previous year. As against net sales of Rs.618.900 millions for previous year, the
current sales comes to Rs. 545.600 millions representing marginal decrease of
12 %.
The Castor oil
plant yielded 14355 MT of oil processing as against 13190 MT for the previous
year. As against net sales of Rs.1230.300 millions for the previous year, the
current year sales stood at Rs. 1603.600 millions representing an increase of
30 %.
The Fatty acid
plant has processed 26059 MT for the current year as against 25277 MT for the
previous year. The net sales of this division has increased from Rs. 1597.300
millions to Rs. 1828.200 millions representing an increase of 14 %.
The Power plant at
Bellary has billed 157.800 millions KWH of electricity (including deemed
generation) to Karnataka Power Transmission Corporation Limited (KPTCL) during
the current year as against 182.100 millions KWH for the previous year.
As against sales to
KPTCL ( including deemed generation billing ) of Rs. 1037.500 millions for the
previous year, the current year sales
comes to Rs. 457.700 millions showing decrease of 66%. This is due to less
power demanded by KPTCL the only customer depending on their requirement.
MANAGEMENT
DISCUSSION AND ANALYSIS:
The Company is
having mainly three Business Division namely:-
(1) Chemicals
Division
(2) Oils and Fats
Division
(3) Power Division
Division wise
analysis of Industry Structure, Opportunity and Threats and Out Look are
discussed hereunder for information of the members.
1.
CHEMICALS DIVISION :
Under the
Chemicals division mainly the products viz., Caustic Soda, Pottasium Hydroxide,
Chlorine, Hydrochloric
Acid etc. are
manufactured. Chlorine is produced as a joint product along with Caustic Soda
and Pottasium Hydroxide. Caustic Soda is used in industrial products like
paper, pulp, aluminium, pvc, pharmaceuticals etc, chlorine is used in water
treatment, pigments, pulp, paper, textiles etc. and Hydrochloric Acid is used
in pesticides, cleaning purposes of metal etc.
Basically Chlor
Alkali Industry is cyclical in nature. Caustic Soda is a basic chemical and is used
in almost all manufacturing processes. The performance of alkalie industry is
reflected in the performance of the industry in general and also country’s GDP.
The Chlor Alkalie industry being power intensive, any increase in power cost
would affect its performance. The commercial disposal of chlorine is the main
concern for any caustic unit. To overcome this Company has obtained
in-principle approval of the financial institutions to set up Chloromethane
project. The company has achieved financial closure as a step towards
implementation of the project. Works relating to the Chloromethanes Project are
in full swing. Unseasonal rains and cyclones have affected salt availability in
the market and as a result the cost of main raw material has gone up. So also
the case with power front.
2.
OILS AND FATS DIVISION :
Wide fluctuations
in raw materials is the basic nature of this division. In view of the
agricultural based raw materials procurement process will stress the liquidity
of the Industry in general. However export oriented finished goods will ease
this problem. Castor oil derivatives (comprising of Hydrogenated Castor Oil, 12
Hydroxy Stearic Acid and Recinolic Acid), Fatty Acids, Soap noodles, Glycerine
and bathing / toilet soap forms part of this division. The raw materials namely
Castor Oil, various industrial vegetable oils and crude glycerine are highly
volatile in their prices. India is a leading country in exporting castor oil
derivatives with abundant availability of raw material. Being a composite plant,
many inputs like caustic soda, steam, Hydrogen are available internally and the
same is main strength and an opportunity for the company. During the year the
market for both fatty acids and castor oil is encouraging and it is hoped that
the same will prevail in future. Frequent fluctuations in Castor Oil prices is
the main concern for this division. The forecast of normal monsoon in India the
major producing country in world is also a good sign for better performance of
this division in future.
3.
POWER DIVISION:
The power plant at
Bellary is being operated with furnace oil as feed stock and the company
delivers its generation to KPTCL under a power purchase agreement. The increase
in fuel costs though a concern, is a pass through in pricing the sale of power
to KPTCL. Ever increasing demand for power is a favourable sign for better
future of this division.
CONTINGENT
LIABILITY
Contingent Liability not provided for, in respect of: -
(Rs.
in millions)
|
PARTICULARS |
31.03.2012 |
|
|
|
|
Cheques / Bills Discounted with Banks. |
16.854 |
|
Unexpired Bank guarantees / letters of Credit (net of margin money
paid) |
66.503 |
|
Estimated amount
of Contracts remaining to be executed on Capital Account (Net of advances). |
476.067 |
|
Arrears of
dividend on cumulative redeemable preference shares of Rs.1888.23 lacs at a
coupon rate of 0.01 %, issued and allotted as per Debt Restructuring package and
scheme of arrangement sanctioned by High Court of A.P. for the period from
01.04.2002 to 31.03.2012. (Payable after 15 years) i.e., from 01.04.2018. |
0.189 |
|
Claims against
the company not acknowledged as debts being disputed and pending in appeals and
for which no provision is considered as the company is hopeful of success in
the appeals. |
|
|
i) Central excise
matters regarding Cenvat credit availed on input consumables and on service tax
payments on input services like freight, telephone, and courier etc., |
35.887 |
|
ii) 1. Customs
matters regarding dispute on classification of goods pending before High
Court. |
0.990 |
|
2. Imposition of
Anti dumping duty on imports during December 2010 pending before
ADC, Customs |
3.269 |
|
3. Differential
duty leved on import of materials during the year 2006-07, pending
before the Commissioner of Appeals |
1.606 |
|
iii) Sales tax matters
regarding Input tax credit availed on fuels used for steam generation
disallowed by the Department and levied penalty and interest; and tax on
disputed turnover of Palakkad Branch which is pending in appeal before DC
(Appeals) (Paid under Protest) |
9.147 (5.903) |
|
iv) Levy of delay
charges on late payment of Provident Fund by Regional Provident Fund
Commissioner. |
1.534 |
|
v) 1) Wheeling
Charges levied by APCPDCL pending in Supreme Court. |
2.421 |
|
2) Wheeling charges
levied on APGAS power supplies covered by Bank guarantee Rs.69.30 lakhs. |
NIL |
|
Differential
duty on procurement of raw material as per show cause notices issued by the
Customs Authorities is contested and for which no provision is considered as
there will be no liability on the company as per legal opinion obtained (paid
under Protest) |
116.114 (12.500) |
|
Refund sought by
M/s. Karnataka Power Transmission Corporation Ltd., (KPTCL) /DISCOMS of the differential
tax on account of Income Tax rates / tax holiday as per terms of PPA is
contested by the Company before the Karnataka Electricity Regulatory
Commission |
160.900 |
|
|
|
|
TOTAL |
873.078 |
UNAUDITED FINANCIAL RESULTS FOR
THE QUARTER/NINE MONTHS ENDED ON 31st DECEMBER, 2012
|
Sr. No |
PARTICULARS |
Quarter Ended |
Nine Months Ended 31.12.12 Unaudited |
||
|
31.12.12 Unaudited |
30.09.12 Unaudited |
||||
|
1 |
Income from Operations |
|
|
|
|
|
|
a) Gross Sales/ Income from
operations |
2142.500 |
2395.900 |
6728.400 |
|
|
|
Less: Excise duty and Sales Tax |
263.400 |
277.300 |
795.000 |
|
|
|
Net Sales/ Income from operations |
1879.100 |
2118.600 |
5933.400 |
|
|
|
b) Other operating Income |
57.600 |
37.900 |
125.800 |
|
|
|
Total Income from Operations |
1936.700 |
2156.500 |
6059.200 |
|
|
2 |
Total Expenditure |
|
|
|
|
|
|
a) Cost of materials consumed |
810.200 |
1027.000 |
2782.900 |
|
|
|
b) Purchase of stock in trade |
-- |
-- |
-- |
|
|
|
c) Changes in inventories of finished
goods, work – in - progress and stock
– in - trade |
2.300 |
26.900 |
14.800 |
|
|
|
d) Employee benefit expenses |
88.800 |
80.400 |
249.300 |
|
|
|
e) Depreciation /
Amortisation expenses |
100.800 |
100.900 |
302.500 |
|
|
|
f) Power and Fuel |
568.600 |
529.900 |
1592.900 |
|
|
|
g) Other expenditure |
184.000 |
181.300 |
526.600 |
|
|
|
Total (a to g) |
1754.700 |
1946.400 |
5469.000 |
|
|
3 |
Profit from Operations before Other
Income, Finance costs and exceptional items (1-2) |
182.000 |
210.100 |
590.200 |
|
|
4 |
Other Income |
1.500 |
13.300 |
24.700 |
|
|
5 |
Profit from ordinary activities before Interest and before Exceptional items (3+4) |
183.500 |
223.400 |
614.900 |
|
|
6 |
Finance costs |
96.200 |
94.700 |
278.300 |
|
|
7 |
Profit from Ordinary Activities after
Finance costs but before Exceptional item (5-6) |
87.300 |
128.700 |
336.600 |
|
|
8 |
Exceptional items |
-- |
-- |
-- |
|
|
9 |
Profit/Loss
from Ordinary Activities
before Tax (7+8) |
87.300 |
128.700 |
336.600 |
|
|
10 |
Provision for Taxation - Income
Tax (MAT) - Deferred
Tax Liability -
Earlier years Income Tax |
17.400 -- -- |
25.800 -- -- |
67.300 -- -- |
|
|
11 |
Net Profit /(Loss)
from Ordinary Activities after tax (9-10) |
69.900 |
102.900 |
269.300 |
|
|
12 |
Extraordinary items (net of tax expenses
Rs.) |
-- |
-- |
-- |
|
|
13 |
Net
Profit /Loss for the period (11+12) from continuing operations |
69.900 |
102.900 |
269.300 |
|
|
14 |
Share of Profit of associates |
-- |
-- |
-- |
|
|
15 |
Minority Interest |
-- |
-- |
-- |
|
|
16 |
Net Profit / (loss) after taxes, minority
interest and share of profit/ (loss) of associates for the period
(13+16+17+18) |
69.900 |
102.900 |
269.300 |
|
|
17 |
Paid- up
Equity Share Capital (Face value of
the share – Rs. 10/- per share) |
710.500 |
675.000 |
710.500 |
|
|
18 |
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
-- |
|
|
19.i |
Earnings per
share (before extraordinary items) a)
Basic(Rs.) b)
Diluted(Rs.) |
1.02 1.01 |
1.52 1.51 |
3.93 3.90 |
|
|
20.II |
Earnings per
share (before extraordinary items) a)
Basic(Rs.) b)
Diluted(Rs.) |
1.02 1.01 |
1.52 1.51 |
3.93 3.90 |
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
1 |
Public
shareholding - Number of
Shares - Percentage
of Shareholding |
39432626 55.50 |
394326628 58.42 |
39432626 55.50 |
|
|
2 |
Promoters and
promoter group shareholding a)Pledged/Encumbered - Number of Shares - Percentage of Shares (as a % of the Total Shareholding of
promoter and promoter group) - Percentage of Shares (as a % of the Total Share Capital
of the Company) |
1054078 3.33 1.48 |
1054078 3.76 1.56 |
1054078 3.33 1.48 |
|
|
|
b)Non – encumbered - Number of
Shares - Percentage
of Shares (as a % of
the total shareholding of promoter and promoter group) - Percentage
of Shares (as a % of
the total share capital of the company) |
30558858 96.67 43.02 |
27006580 96.24 40.02 |
30558858 96.67 43.02 |
|
|
|
Particulars |
Three Month
Ended 31.12.2012 |
|
||
|
B |
Investor
complaints |
|
|
||
|
|
Pending at the beginning of the quarter |
Nil |
|
||
|
|
Received during the quarter |
3 |
|
||
|
|
Disposed of during the quarter |
3 |
|
||
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
||
REPORTING OF SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Sr. No |
Particulars |
Quarter
Ended |
Nine
Months Ended |
|
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Segment Revenue |
|
|
|
|
|
a) Chemicals |
1226.000 |
1292.200 |
3692.800 |
|
|
b) Oils and Fats |
742.200 |
781.800 |
2287.600 |
|
|
c) Power Plant |
- |
108.800 |
164.600 |
|
|
TOTAL |
1968.200 |
2182.800 |
6145.000 |
|
|
Less: Inter segment
revenue |
31.100 |
25.500 |
84.300 |
|
|
Net Sales/Income from
Operations |
1937.100 |
2157.300 |
6060.700 |
|
2 |
Segment Results
Profit/(Loss) Before tax and interest: |
|
|
|
|
|
a) Chemicals |
196.000 |
221.900 |
617.400 |
|
|
b) Oils and Fats |
4.400 |
4.000 |
14.700 |
|
|
c) Power Plant |
(22.600) |
(10.700) |
(40.700) |
|
|
TOTAL |
177.800 |
215.200 |
591.400 |
|
|
Less: 1) a)Interest
Expenses b)interest Income |
96.200 (5.700) |
94.700 (8.200) |
278.300 (23.500) |
|
|
II) Other un-allocable Expenditure
net off un-Allocable income |
-- |
-- |
-- |
|
|
Total Profit before Tax |
87.300 |
128.700 |
336.600 |
|
3 |
Capital
Employed |
|
|
|
|
|
(Segment Assets-Segment
Liabilities) |
|
|
|
|
|
(Based on Estimate in
terms of available data) |
|
|
|
|
|
a) Chemicals |
4355.400 |
4244.400 |
4355.400 |
|
|
b) Oils and Fats |
68.100 |
87.900 |
68.100 |
|
|
c) Power plant |
700.600 |
716.100 |
700.600 |
|
|
d) Others |
210.500 |
153.900 |
210.500 |
|
|
TOTAL |
5334.600 |
5202.300 |
5334.600 |
Note:
1) The
above Un-audited results for the Quarter / Nine months ended 31.12.2012 were reviewed
by the Audit Committee and approved by the Board of Directors at their
respective meetings held on 21st January, 2013 at at Hyderabad.
2) The
statuary auditors have carried out a limited review of the un-audited financial
results of the / Nine months ended 31.12.2012.
3) Deferred
tax liability / Asset will be considered at the year ending on 31.03.2012.
4) During
the Quarter, 3552278 Equity Shares of Rs. 10/- each were issued and allotted on
preferential basis upon Conversion of Convertible Share Warrants and
consequently the issued and paid – up share capital of the company as on
31.12.2012 stands increased to Rs. 710.0456 millions.
5) During
the Quarter, there were no operations in power plant segment at Bellary on
expiry of power purchase agreement and the company is evaluating various
options for making use of the Plant. During the Quarter, an amount of Rs.
46.000 millions towards Fuel Surcharge Adjustment demand raised by Andhra
Pradesh Central Power Distribution Company Limited is considered on the basis of
demand and payable basis.
6) Corresponding
three months / Nine Months ended in the previous 31.12.2011 figures have been
regrouped / reclassified wherever necessary to correspond with the current years
classification / disclosure, consequent to the Revised Schedule VI, which has
become effective from the year ended 31.03.2012.
FIXED ASSETS:
·
Free Hold land and
Development
·
Lease Hold Land
·
Building
·
Plant and Machinery
·
Power Plant and Machinery
·
Electricals and D. G.
Sets
·
Furniture and Fittings
·
Office and Telephone
Equipments
·
Computers
·
Lab, Workshop and other
Equipment
·
Vehicles
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 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.53.57 |
|
|
1 |
Rs.84.25 |
|
Euro |
1 |
Rs.71.79 |
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 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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.