BUSINESS INFORMATION REPORT

 

1. Summary Information

 

 

Country

INDIA

Company Name

MANGALORE CHEMICALS AND FERTILISERS LIMITED

Principal Name 1

DR. VIJAY MALLYA

Status

GOOD

Principal Name 2

MR. DEEPAK ANAND

 

 

Registration #

08-002036

Street Address

Level 11, UB Tower, UB City, 24 Vittal Mallya Road, Bangalore – 560 001, Karnataka

Established Date

18.07.1966

SIC Code

--

Telephone#

91-80-39856000/ 39856500/ 39855000/ 39855500

Business Style 1

MANUFACTURER

Fax #

91-80-39855588

Business Style 2

SELLER

Homepage

www.mangalorechemicals.com

Product Name 1

COMPLEX FERTILIZERS

# of employees

872 (Approximately)

Product Name 2

UREA

Paid up capital

Rs.1,185,486,000/-

Product Name 3

DAP

Shareholders

PROMOTER AND PROMOTER GROUP-30.44%

PUBLIC SHAREHOLDING-69.56%

Banking

AXIS BANK LIMITED

Public Limited Corp.

YES

Business Period

47 YEARS

IPO

YES

International Ins.

--

Public Enterprise

YES

Rating

Ba (54)

Related Company

Relation

Country

Company Name

CEO

SUBSIDIARIES

--

United Breweries (Holdings) Limited

--

Note

--

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets
15,856,715,000

Current Liabilities
3,836,838,000

Inventories
2,182,998,000

Long-term Liabilities

13,047,691,000

Fixed Assets

3,652,361,000

Other Liabilities
719,107,000

Deferred Assets

0,000

Total Liabilities

17,603,636,000

Invest& other Assets

1,266,424,000

Retained Earnings

4,169,376,000

 

 

Net Worth

5,354.862,000

Total Assets

22,958,498,000

Total Liab. & Equity

22,958,498,000

 Total Assets

(Previous Year)

9,854,424,000

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Sales

37,071,771,000

Net Profit

10,187,000

Sales(Previous yr)

25,201,071,000

Net Profit(Prev.yr)

775,368,000

 

MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

MANGALORE CHEMICALS AND FERTILISERS LIMITED

 

 

Registered Office :

Level 11, UB Tower, UB City, 24 Vittal Mallya Road, Bangalore – 560 001, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

18.07.1966

 

 

Com. Reg. No.:

08-002036

 

 

Capital Investment / Paid-up Capital :

Rs.1185.486 Millions

 

 

CIN No.:

[Company Identification No.]

L24123KA1966PLC002036

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRM06363A

BLRM00106B

BLRM03609E

BLRM00923G

BLRM03445B 

 

 

PAN No.:

[Permanent Account No.]

AABCM3599G

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer, Purchaser and Seller of Fertilizers and Related Products.

 

 

No. of Employees :

872 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 21000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having fine track record. There appears some dip in the profitability of the company it is due to abnormal increase in the interest on working capital and lower production. However, networth of the company is satisfactory. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

BBB+ (Long Term Rating)

Rating Explanation

Moderate degree of safety. It carry moderate credit risk.

Date

11.01.2013

 

Rating Agency Name

CRISIL

Rating

A2 (Short Term Rating)

Rating Explanation

Strong degree of safety. It carry low credit risk.

Date

11.01.2013

 

 

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 :

Level 11, UB Tower, UB City, 24 Vittal Mallya Road, Bangalore – 560 001, Karnataka

Tel. No.:

91-80-39856000, 39856500, 39855000, 39855500

Fax No.:

91-80-39855588

E-Mail :

shares@mangalorechemicals.com

homkt@mangalorechemicals.com

hoadmin@mangalorechemicals.com

Website :

http://www.mangalorechemicals.com

 

 

Works Office :

Panambur, Mangalore - 575 010, Karnataka, India

Tel. No.:

91-824-2220600

Fax No.:

91-824-2407938

E-Mail :

admin_wo@mangalorechemicals.com

 

 

DIRECTORS

 

As on: 31.03.2012

 

Name :

Dr. Vijay Mallya

Designation :

Chairman

 

 

Name :

Mr. Deepak Anand

Designation :

Managing Director

 

 

Name :

Mr. S.R. Gupte

Designation :

Director

Date of Birth ;

06.03.1939

Qualification :

B. Com., Chartered Accountant

Date of Appointment :

23.12.1996

Brief resume / Expertise

in specific functional

areas :

Mr. S R Gupte worked with Caltex India Limited from 1964 for 5 ½ years in various capacities.

 

He joined Air India in 1969 and worked in various positions in India and abroad. He was entrusted with the functions of Deputy Managing Director and took over in the acting capacity as Chairman and Managing Director of Air India in 1990. During his tenure with Air India, he was on the Board of Air Mauritius, Indian Airlines and was Deputy Chairman and Vice President of Airline Mutual Insurance based in Bermuda. He was the Chairman of Hotel Corporation of India till November 1991.

 

Mr. Gupte joined the United Breweries Group in March 1992 as Executive Vice Chairman and is on the Board of a number of Public Limited Companies. He has been on the Board of the Company from December 1996.

Directorship in

other Public Limited

Companies :

1. Aventis Pharma Limited

2. Kingfisher Airlines Limited

3. United Spirits Limited

4. Millennium Beer Industries Limited

5. Shaw Wallace Breweries Limited

6. UB Electronics Instruments Limited

 

 

Name :

Mr. B.S. Patil, I.A.S. (Retd.)

Designation :

Independent Director

 

 

Name :

Mr. Pratap Narayan

Designation :

Independent Director

 

 

Name :

Mr. Shrikant G. Ruparel

Designation :

Independent Director

 

 

Name :

Mr. N. Sunder Rajan

Designation :

Independent Director

Date of Birth ;

17.5.1944

Qualification :

Indian Audit and Accounts Service (Retd.)

Date of Appointment :

28.04.2006

Brief resume / Expertise

in specific functional

areas :

Mr. N Sunder Rajan, an officer of the Indian Audit and Accounts Service, has served in various capacities in the Indian Audit and Accounts Department, the Central Ministries of Finance and Civil Aviation and Tourism and in the Lok Sabha Secretariat assisting the Public Accounts Committee of Parliament in enforcing executive accountability.

 

As Deputy Comptroller and Auditor General of India, the position from which he retired in May 2003, he was also the Chairman of the Government Accounting Standards Advisory Board. He has also served on various committees of Government, which included an Expert Group constituted to examine the feasibility of merging Air India and Indian Airlines of which he was the Convener. He was the ministry’s representative on the Boards of Directors of Hotel Corporation of India Limited, Vayudoot Limited and Airline and Allied Services Limited besides serving as the Finance Member on the Governing Bodies and Executive Committees of the Indian Institute of Tropical Meteorology and the Centre for Atmospheric Sciences.

Membership of

Committees in

other Public Limited

Companies :

1. Millennium Beer Industries Limited

 

 

Name :

Mr. K. Prabhakar Rao

Designation :

Whole-time Director

Date of Birth ;

02.07.1955

Qualification :

B.E (Chemical Engineering)

Date of Appointment :

27.10.2006

Brief resume / Expertise

in specific functional

areas :

Mr. Prabhakar Rao, 56, holds a Degree in Chemical Engineering. He has been working with MCF since 1978 and has handled various responsibilities in the Company. As Director – Works, he is presently responsible for production, maintenance, quality control, technical services, projects, safety and logistics at the Company’s plant in Mangalore. Mr. Rao has widely travelled and participated in many National and International symposiums and has attended various Management Development Programs in premier Institutions such as IIM Bangalore and Ahmedabad.

 

 

KEY EXECUTIVES

 

Name :

Mr. K. Raghuveeran

Designation :

Vice President (Finance)

 

 

SHAREHOLDING PATTERN

 

As on: 30.09.2012

 

Category of Shareholders

 

No. of Shares

Percentage of holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

36076775

30.44

http://www.bseindia.com/include/images/clear.gifSub Total

36076775

30.44

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

36076775

30.44

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

6340338

5.35

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

465998

0.39

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

3759884

3.17

http://www.bseindia.com/include/images/clear.gifInsurance Companies

20140

0.02

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

25433

0.02

http://www.bseindia.com/include/images/clear.gifSub Total

10611793

8.95

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

24712557

20.85

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Millions

27547585

23.24

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Millions

15076918

12.72

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

4489522

3.79

http://www.bseindia.com/include/images/clear.gifClearing Members

695538

0.59

http://www.bseindia.com/include/images/clear.gifForeign Nationals

1520

0.00

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

2606611

2.20

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

1141864

0.96

http://www.bseindia.com/include/images/clear.gifSocieties

2150

0.00

http://www.bseindia.com/include/images/clear.gifTrusts

41839

0.04

http://www.bseindia.com/include/images/clear.gifSub Total

71826582

60.61

Total Public shareholding (B)

82438375

69.56

Total (A)+(B)

118515150

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

118515150

0.00

 

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

 

Bodies corporate

 

Directors or relatives of Directors

 

Other top fifty shareholders

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Purchaser and Seller of Fertilizers and Related Products.

 

 

Products :

Item Code No. (ITC Code)

310210.00

Product Description

Urea

Item Code No. (ITC Code)

310530.00

Product Description

DAP

Item Code No. (ITC Code)

310551.00

Product Description

Complex Fertilizers

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

(In MT per annum)

Particulars

 

Licensed Capacity

Installed Capacity *

Actual Production

Ammonia (for captive consumption)

 

217800

217800

218972

Urea

 

379500

379500

379500

Complex Fertilizers (DAP and NP)

 

255500

255500

223552

Ammonium Bi-Carbonate

 

15330

15330

15330

Sulphuric Acid

 

33000

33000

29585

Speciality Fertilizers

 

40000

40000

7635

Sulphonated Naphthalene

Formaldehyde

 

21450

21450

4406

 

* As certified by the Management

 

 

GENERAL INFORMATION

 

No. of Employees :

872 (Approximately)

 

 

Bankers :
  • Axis Bank Limited
  • Corporation Bank
  • State Bank of India
  • HDFC Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

LONG TERM BORROWINGS

 

Term loans

277.910

 

Buyers’ Credit

(Secured by First charge on the project assets, and second charge on all of the

Company’s fixed assets including all movable and immovable properties both present

and future.)

596.770

 

Long term maturities of finance lease obligations

(Secured by hypothecation of assets acquired under the facility.)

10.329

1889.396

SHORT TERM BORROWINGS

0

 

Cash Credit including demand loans

2155.576

 

Buyers’ Credit Loan

(Secured by a first pari passu charge on present and future plant and machinery, stock of fertilizers including work-in-process and raw materials, book debts, outstanding monies, receivables, claims, bills, contracts, engagements, securities, investments, rights and assets of the Company (except property effectively otherwise hypothecated / charged or mortgaged to the banks.))

8654.525

 

Total

11695.11

1889.396

 

 

 

Note:

 

Terms of repayment:

_ 166.266 Millions repayable monthly in 7 years with interest @ 12.75% pa

_ 111.644 Millions repayable monthly in 6 years with interest @ 14.50% pa

_ 596.770 Millions Buyers’ Credit (renewable after 12 months) convertible

into Term loan after 3 years with interest @ 4.58% pa

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

K.P. Rao and Company

Chartered Accountants

Address :

Bangalore

 

 

Cost Auditors :

 

Name :

P R Tantri

Chartered Accountant

Address :

B-1580, Sahakara Nagar, Bangalore – 560092, Karnataka, India

Membership No.:

2403

PAN. No.:

AAGPT1121R

 

 

Associates :

United Breweries (Holdings) Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

124000000

Equity Shares

Rs.10/- each

Rs.1240.000 Millions

600000

13% Redeemable Cumulative Preference Shares

Rs.100/- each

Rs.60.000 Millions

 

Total

 

Rs.1300.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

118515150

Equity Shares

Rs.10/- each

Rs.1185.151 Millions

 

Forfeited Shares

 

Rs.0.335 Millions

 

Total

 

Rs.1185.486 Millions

 

 

 

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

1185.486

1185.486

1185.486

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4169.376

3665.552

3110.575

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

5354.862

4851.038

4296.061

LOAN FUNDS

 

 

 

1] Secured Loans

11695.110

1889.396

981.633

2] Unsecured Loans

1352.581

0.000

0.000

TOTAL BORROWING

13047.691

1889.396

981.633

DEFERRED TAX LIABILITIES

387.875

377.688

392.973

 

 

 

 

TOTAL

18790.428

7118.122

5670.667

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3652.361

3784.600

3570.679

Capital work-in-progress

1266.424

130.674

281.976

 

 

 

 

INVESTMENT

0.000

0.000

0.500

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2182.998
1752.768
1618.707

 

Sundry Debtors
3348.582
405.777
173.084

 

Cash & Bank Balances
1127.631
172.706
74.413

 

Other Current Assets
41.703
71.402
31.080

 

Loans & Advances
11338.799
3536.497
3154.883

Total Current Assets
18039.713
5939.150
5052.167

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors
2773.996
1243.025
2359.953

 

Other Current Liabilities
1062.842
405.517
18.605

 

Provisions
331.232
1087.760
856.097

Total Current Liabilities
4168.070
2736.302
3234.655

Net Current Assets
13871.643
3202.848
1817.512

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

18790.428

7118.122

5670.667

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Net Sales and Services

37071.771

25201.071

20756.449

 

 

Other Income

129.536

37.195

60.856

 

 

TOTAL                                     (A)

37201.307

25238.266

20817.305

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

12794.724

--

--

 

 

Purchases of Traded goods

14799.027

--

--

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(684.627)

--

--

 

 

Employee benefits expense

592.532

--

--

 

 

Other expenses

7612.308

--

--

 

 

Manufacturing and Other Expenditure

--

23593.163

19556.232

 

 

Variation in Stock of Finished Goods and Work-in-Process

--

54.460

(2.332)

 

 

TOTAL                                     (B)

35113.964

23647.623

19553.900

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

2087.343

1590.643

1263.405

 

 

 

 

 

Less

INTEREST & FINANCIAL EXPENSES                 (D)

771.608

181.425

234.357

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

1315.735

1409.218

1029.048

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

291.045

288.817

183.704

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1024.690

1120.401

845.344

 

 

 

 

 

Less

TAX                                                                  (H)

1014.503

345.033

280.432

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

10.187

775.368

564.912

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2364.046

1753.967

1327.712

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

NA

142.218

118.515

 

 

Corporate Dividend Tax

NA

23.071

20.142

 

BALANCE CARRIED TO THE B/S

NA

2364.046

1753.967

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports (F.O.B. Value)

20.736

50.630

1.608

 

TOTAL EARNINGS

20.736

50.630

1.608

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

33.964

59.069

38.365

 

 

Spare Parts

34.277

39.125

59.410

 

 

Raw Materials

4576.951

4292.197

3905.704

 

 

Purchase of Finished Goods

12727.236

6053.043

4536.565

 

TOTAL IMPORTS

17372.428

10443.434

8540.044

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.83

6.54

4.77

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

Type

1st Quarter

2nd Quarter

Net Sales

5977.590

8390.570

Total Expenditure

6005.550

7522.420

PBIDT (Excl OI)

(27.96)

868.150

Other Income

14.260

28.350

Operating Profit

(13.70)

896.500

Interest

180.570

71.920

Exceptional Items

0.000

0.000

PBDT

(194.270)

824.580

Depreciation

69.100

68.940

Profit Before Tax

(263.370)

755.650

Tax

(138.420)

191.420

Provisions and contingencies

0.000

0.000

Profit After Tax

(124.950)

564.230

Extraordinary Items

0.000

0.000

Prior Period Expenses

0.000

0.000

Other Adjustments

0.000

0.000

Net Profit

(124.950)

564.230

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

0.03

3.07
2.71

 

 

 

 
 

Net Profit Margin

(PBT/Sales)

(%)

2.76

4.45
4.07

 

 

 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)

4.72

11.52
9.80

 

 

 

 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.19

0.23
0.20

 

 

 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 

3.21

0.95
0.98

 

 

 

 
 

Current Ratio

(Current Asset/Current Liability)

 

4.33

2.17
1.56

 

 

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

No

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

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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

 

NOTE:

 

Registered office of the company has been shifted from “No.5, Crescent Road, High Grounds, Bangalore - 560 001, Karnataka, India” to the present address.

 

CONTINGENT LIABILITIES:

 

Particulars

As on

31.03.2012

Outstanding Bank Guarantees

165.392

Claims against the Company not acknowledged as debt.

Disputed arrears of electricity charges, under appeal by Company / KPTCL

23.858

Disputed Income-tax liability for assessment year 2009-10

79.287

 

 

PERFORMANCE:

 

During 2011-12, the Company achieved the highest ever turnover of Rs.37071.700 Millions compared to Rs. 25204.600 Millions in the previous year, registering a growth of 47.08%. For the third consecutive year the Company sold over a Million Metric Tonnes of fertilizers. However, the PBT at Rs.1024.700 Millions was lower compared to Rs.1116.000 Millions during the previous year. Profitability was adversely affected by an abnormal increase in interest on working capital and lower production of phosphatics due to non-availability of imported Phosphoric Acid.

 

UNSECURED LOAN:

 

 

As on

31.03.2012

As on

31.03.2011

LONG TERM BORROWINGS

 

 

_ Rs.1352.581 Millions repayable quarterly in 5 years with rate of interest @ 15.25% pa

From Others

1352.581

0.000

Total

1352.581

0.000

 

 

PRODUCTION:

 

Urea

 

The Company achieved production of the full re-assessed capacity of 3,79,500 MTs.

 

Di-Ammonium Phosphate (DAP) and Complex Fertilisers

 

The Company produced 1,72,276 MTs of Phosphatic Fertilizers  during the year compared to 2,23,552 MTs in the previous year. The lower production was on account of erratic and inadequate supplies of phosphoric acid.

 

Ammonium Bi-carbonate (ABC)

 

Production of ABC was 15,893 MTs during the year compared to 15,330 MTs in the previous year

 

 

SALES:

 

During the year, the Company sold 3,79,546 MTs of Urea compared to 3,79,442 MTs in the previous year. Sales of manufactured Phosphatic Fertilizers were 1,74,240 MTs compared to 2,24,938 MTs in the previous year. Sales of imported products registered significant growth, with imported Phosphatics at 3,69,181 MTs as against 2,07,320 MTs in the previous year. Sales of Muriate of Potash increased to 91,176 MTs compared to 88,052 MTs in the previous year.

 

 

SULPHONATED NAPHTHALENE FORMALDEHYDE (SNF):

 

As a step towards diversification from the fertilizer sector to Chemicals Production/Trading, the Company had identified Sulphonated Naphthalene Formaldehyde. Accordingly, a state-of-the-art plant was set up in August 2010, which can be expanded on a modular basis to take care of increased demand. You will be happy to note that the Company sold 10,946 MTs of SNF during the year, compared to 4,406 MTs in the previous year. The prime application for SNF is in the manufacture of super plasticizer used in construction chemical industry. For increased market share, new variants are being developed for different applications for specific customer needs. In addition, new customers are being identified and added for greater capacity utilisation. The liquid and powder forms of SNF have been well received in the market and have created a brand name for excellent quality.

 

 

PLANT PROTECTION CHEMICALS:

 

As part of diversification and growth strategy and in order to offer a wider range of agri inputs, the Company introduced Plant Protection (PP) products in July 2010. As an entry strategy, a collaborative approach was adopted, with the Company marketing the products of reputed pesticide companies through its channel partner network. In the year under review, the Company launched two products in the Mangala brand name, viz., Mangala Mahakill an insecticide and Mangala Samhar, a Herbicide. In the financial year 2012-13, the Company plans to launch 5 more products of selected molecules under its own brand. The Plant Protection Chemicals business registered a turnover of Rs.220.000 Millions compared to Rs.120.000 Millions in the previous year.

 

 

WORKING CAPITAL:

 

Delay in agreement on the prices of imported fertilizers with the international suppliers and consequent delayed ordering resulted in bunched up imports in the second half of 2011-12.  This resulted in heavy congestion at the east coast ports. Non-availability of railway rakes at the same time contributed to material being stuck at the ports

for a long period of time. These factors combined by inordinate delay in release of GOI subsidy, nearly 30% increase in interest rates charged by banks and 20% depreciation of INR vs. USD have contributed to the very significant increase in interest cost.

 

 

FERTILIZER POLICY:

 

Government of India is yet to announce the new Urea fertilizer policy for grant of concession as well as investments in the sector. Stage – III of the New Pricing Scheme (NPS) for Urea announced by the Government of India in March 2007 lapsed on March 31, 2010. In the interim, as a stop gap arrangement, the existing policy has been extended provisionally until further orders. With effect from April 1, 2010, the government introduced a Nutrient Based Subsidy (NBS) policy for Phosphatic and Potassic fertilizers, announcing the rate of subsidy in advance for the full year. For 2012-13, this subsidy has been substantially reduced. Coupled with the sharp depreciation of the Indian Rupee, this has led to an abnormal increase in MRPs for these fertilizers.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

Industry Structure and Developments

 

The Company has only one business segment, viz. Fertilizers. It manufactures both Nitrogenous and Phosphatic fertilizers and is the only manufacturer of fertilizers in the state of Karnataka. About 66% of the Company’s products are sold in the state of Karnataka, which meets about 17% of the needs of the farmers in the State. The Company maintains a modest share of the market in the neighbouring states of Kerala, Tamil Nadu, Andhra Pradesh and Maharashtra.

 

Future Outlook 

 

The demand for both Nitrogenous and Phosphatic fertilizers in India is increasing steadily, and expected to grow at a compounded annual rate of 6%.  With the domestic production almost stagnant and the demand increasing, the supply deficit has to be met from imports. However, based on the reduction anticipated in the fertilizer demand on account of increase in MRP and scanty rainfall, the Company may import lower quantity of fertilizers in the ensuing year.

 

Considering the significant success achieved due to its focus on Plant Nutrition business and given the enormous potential for growth, the Company would continue to focus and grow in that area and also look to diversify into other products that are synergistic with the existing operations.  Plant Protection Chemical business which was started during 2010-11 has gathered momentum and has been growing rapidly. It is expected that the growth momentum will be maintained going forward.

 

 

Financial and Operational Performance

 

a)  Production Performance

 

A total production of 3,79,500 MTs of Urea, 1,72,276 MTs of Complex fertilizers [DAP/ NP], and 15,893 MTs of Ammonium Bi-Carbonate was achieved during the year.

 

b)  Operating Results

 

The Company achieved a turnover of Rs.37071.700 Millions against Rs.25204.600 Millions. The Profit Before Tax (PBT) was Rs.1024.700 Millions compared to Rs.1116.000 Millions in the previous year.

 

c)  Resource Utilization

 

The gross fixed assets as at 31.03.2012 were Rs.6932.600 Millions as compared to Rs.7031.900 Millions in the previous year. 

 

d)  Working Capital

 

Net working capital excluding cash and bank balances, as on 31.3.2012 was Rs.521.100 Millions. Book debts outstanding for more than 6 months as on 31.3.2012 stood at Rs.11.100 Millions as compared to Rs.1.900 Millions in the previous year.

 

 

STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2012

(In Millions)

Particulars

3 months ended

Preceding 3 months ended

Current Year 6 months ended

(Refer Notes Below)

30.09.2012

30.06.2012

30.09.2012

 

Unaudited

Unaudited

Unaudited

1

Income from operations

 

Net sales/income from operations (Net of excise duty)

839,0.573

5977.586

14368.159

2

  Expenses:

 

a. Cost of materials consumed

4239.355

2950.375

7189.730

 

b. Purchases of stock-in-trade

1669.695

1436.140

3105.835

 

c. Change in inventories of finished goods, work-in-progress and stock-in-trade

(224.326)

(489.292)

(713.618)

 

d. Employee benefits expense

162.278

164.634

326.912

 

e.  Depreciation and amortization expense

68.936

69.101

138.037

 

f.  Other expenses

 

i) Power and fuel

1276.459

936.832

2213.291

 

ii) Other  expenses

398.954

1006.850

1405.804

 

Total  expenses

7591.351

6074.640

13665.991

3

Profit / (Loss)  from operations before  other income and finance costs (1-2)

799.222

(97.054)

702.168

4

  Other income

28.348

14.255

42.603

5

Profit / (Loss)  from ordinary activities before finance costs (3+4)

827.570

(82.799)

744.771

6

Finance costs

71.916

180.567

252.483

7

Profit / (Loss)  before tax (5-6)

755.654

(263.366)

492.288

8

Tax expense

191.423

(138.416)

53.007

9

 Net Profit / (Loss) for the period (7-8)

564.231

(124.950)

439.281

10

Paid-up equity share capital
(Face Value : Rs.10 Per Share)

1185.486

1185.486

1185.486

11

 Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

 

 

12

 Earnings per share (of Rs.10/- each) (not annualised):

 

Basic and Diluted

4.76

(1.05)

3.71

 

Notes:

 

1.       The concession for Urea for the half year has been estimated and accounted as per the pricing policy parameters applicable to Stage-III of the New Pricing Scheme, which has been extended from 1.4.2010 on provisional basis until further orders.

2.       Phosphatics and Complex Fertilizers subsidy has been accounted based on rates announced by GOI under Nutrient Based Subsidy policy.

3.       The Company's operations predominantly relate to the fertilizer segment and profitability is dependent on prevailing GOI policy.

4.       Previous period figures have been regrouped, wherever necessary.

5.       The above results were taken on record by the Board of Directors at its meeting on 7.11.2012. The Auditors have carried out a limited review.

 

 

QUARTER ENDED 30.06.2012 AND YEAR ENDED 31.03.2012

 

Particulars

3 months ended

Preceding 3 months ended

Current Year 6 months ended

 

30.09.2012

30.06.2012

30.09.2012

A

PARTICULARS OF SHAREHOLDING

1

Public shareholding

 

- Numbers of shares

8,24,38,375

8,24,38,375

8,24,38,375

 

- Percentage of shareholding

69.56

69.56

69.56

2

Promoters and Promoter Group Shareholding

 

a) Pledged / Encumbered

 

 

 

 

- Numbers of shares

3,19,88,438

3,19,88,438

3,19,88,438

 

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

88.67

88.67

88.67

 

- Percentage of shares (as a % of the total share capital of the company)

26.99

26.99

26.99

 

b) Non-encumbered

 

 

 

 

- Numbers of shares

40,88,337

40,88,337

40,88,337

 

- Percentage of shares (as a % of the total shareholding of Promoter and Promoter group)

11.33

11.33

11.33

 

- Percentage of shares (as a % of the total share capital of the company)

3.45

3.45

3.45

 

 

 

Particulars

For the quarter ended 30.09.2012

B

INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter

Nil

 

Received during the quarter

9

 

Disposed off during the quarter

9

 

Remaining unresolved at the end of the quarter

Nil

 

 

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(In Millions)

Particulars

As at Current Half year end 30.09.2012

A

EQUITY & LIABILITIES

1

Shareholders’ funds

 

(a) Share capital

1185.486

 

(b) Reserves and surplus

4599.797

 

Sub - total - Shareholders' funds

5785.283

2

Non-current liabilities

 

(a) Long-term borrowings

1635.999

 

(b) Deferred tax liabilities (Net) 

440.882

 

(c )Other Long term liabilities

253.568

 

(d) Long-term provisions

159.769

 

Sub- total - Non-current liabilities

2490.218

3

Current liabilities

 

(a) Short-term borrowings

5058.117

 

(b) Trade payables

5007.825

 

(c )Other current liabilities

582.436

 

(d) Short-term provisions

45.588

 

Sub - total - Current liabilities

10693.966

 

TOTAL - EQUITY AND LIABILITIES

18969.467

B

ASSETS

1

Non-current assets

 

(a) Fixed assets

4918.813

 

(b) Non current investments

2000.000

 

(c) Long-term loans and advances

220.281

 

Sub - total - Non-current assets

7139.094

2

Current assets

 

(a) Inventories

3642.202

 

(b) Trade receivables

1902.051

 

(c) Cash and Cash equivalents

124.990

 

(d) Short-term loans and advances

6027.133

 

(e) Other current assets

133.997

 

Sub - total - Current assets

11830.373

 

TOTAL - ASSETS

18969.467

 

 

FIXED ASSETS:

 

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Railway Sidings

·         Roads, Drainage and Culverts

·         Plant and Machinery

·         Intangible Assets

·         Electrical Installations and Fittings

·         Equipment

·         Cranes and Locomotives

·         Furniture and Fixtures

·         Vehicles

·         Books

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.53.89

UK Pound

1

Rs.84.93

Euro

1

Rs.72.51

 

 

INFORMATION DETAILS

 

Report Prepared by :

RAJ

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

YES

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.