MIRA
INFORM REPORT
|
Report Date : |
12.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
GUJARAT STATE FERTILIZERS AND CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
P. O. No. Fertilizer Nagar, District Vadodara-391750, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
15.02.1962 |
|
|
|
|
Com. Reg. No.: |
001121 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.796.955 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999GJ1962PLC001121 |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The company shares are listed on the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of
Fertilizers and Chemicals including Synthetic Filament Yarn / Tyre Cord and
Nylon Chips. |
|
|
|
|
No. of Employees
: |
4862
[Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 140000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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 : |
P. O. No. Fertilizer Nagar, District Vadodara-391750, Gujarat, India |
|
Tel. No.: |
91-265-2242451 /
651 / 751 |
|
Fax No.: |
91-265-2372966 /
2240097 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plants/ Units: |
Ø
Main Plant Fertilizer Nagar, District Vadodara, Ø
Polymers Unit Nandesari, District Vadodara, Ø
Sikka Unit Moti Khavdi, Sikka, District Ø
Fibre Unit
Kuwarda, Kosamba, District |
|
|
|
|
Branch Office : |
102/103, Raheja
Centre, 214, Free Press Journal Marg, Nariman Point, Mumbai - 400 021, |
|
Tel. No.: |
91-22-22824030 /
22831903 / 894 / 915 |
|
Fax No.: |
91-22-22831899 |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. A. K. Joti |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Atanu Chakraborty |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. D. C. Anjaria |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vasant P. Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ajay N. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijai Kapoor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. N. Roy Chowdhury |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. M. Srivastava |
|
Designation : |
Director |
|
|
|
|
Name : |
D. J. Pandian |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.M. Bhorania |
|
Designation : |
Executive Director [Finance] |
KEY EXECUTIVES
|
Name : |
Mr. P. Ganguli |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. V. D. Nanavaty |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. G. I. Patel |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. H. V. Kachhadia |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. CS V. V. Vachhrajani |
|
Designation : |
Company Secretary & Dy. General Manager (Legal & Industrial
Relations) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
150799905 |
37.84 |
|
|
150799905 |
37.84 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
150799905 |
37.84 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
66140378 |
16.60 |
|
|
415995 |
0.10 |
|
|
39583208 |
9.93 |
|
|
46242220 |
11.60 |
|
|
152381801 |
38.24 |
|
|
|
|
|
|
37751269 |
9.47 |
|
|
|
|
|
|
41477440 |
10.41 |
|
|
11234812 |
2.82 |
|
|
4832303 |
1.21 |
|
|
13270 |
0.00 |
|
|
2005 |
0.00 |
|
|
900496 |
0.23 |
|
|
2520290 |
0.63 |
|
|
1396242 |
0.35 |
|
|
95295824 |
23.91 |
|
Total Public shareholding (B) |
247677625 |
62.16 |
|
Total (A)+(B) |
398477530 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
398477530 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Fertilizers
and Chemicals including Synthetic Filament Yarn / Tyre Cord and Nylon Chips. |
||||||||
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|
|
||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2012]
|
Particulars |
Unit |
Actual
Production |
|
Fertilizers* |
MT |
1470350 |
|
Caprolactam* |
MT |
80503 |
|
Nylon-6 |
MT |
8914 |
|
Melamine |
MT |
15279 |
|
Argon |
'000NM3 |
3270 |
|
Monomer |
MT |
4287 |
|
Acrylic Sheets |
MT |
876 |
|
Acrylic Pellets |
MT |
2046 |
|
Nylon Filament Yarn |
MT |
3910 |
|
Nylon Chips |
MT |
5103 |
NOTE: *excluding captive consumption
GENERAL INFORMATION
|
No. of Employees : |
4862
[Approximately] |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Bank of Baroda ·
Central Bank of
India ·
Bank of India ·
Dena Bank ·
Indian Bank ·
Vijaya Bank ·
Yes Bank Limited ·
State Bank of India ·
Indian Overseas
Bank ·
Axis Bank Limited ·
ICICI Bank Limited ·
Punjab National
Bank ·
Indian Overseas
Bank ·
Royal Bank of
Scotland N.V. |
|||||||||||||||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Prakash Chandra Jain and Company Chartered Accountants |
|
Address : |
Vadodara, Gujarat, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Diwanji and Associates Chartered Accountants |
|
Address : |
Vadodara, Gujarat, India |
|
|
|
|
Associates/Subsidiaries : |
Vadodara Enviro
Channel Limited (Erstwhile Effluent Channel Project Limited) |
|
|
|
|
Joint Venture : |
Tunisian Indian
Fertilizers, S.A. (TIFERT) |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
|
16000000 |
Redeemable Cumulative Preferences Shares |
Rs.100/- each |
Rs.1600.000 Millions |
|
|
TOTAL
|
|
Rs.3600.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
79824370 |
Equity Shares |
Rs.10/- each
|
Rs.798.244
Millions |
Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
79813937 |
Equity Shares |
Rs.10/- each
|
Rs.798.139 Millions
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
79695506 |
Equity Shares |
Rs.10/- each
|
Rs.796.955
Millions |
NOTE:
a) Rights, preferences and restrictions attached to shares
EQUITY SHARES
The Company has one
class of equity shares having a par value of Rs. 10/- each. Each shareholder is
eligible for one vote per share held. The dividend proposed by Board of
Directors is subject to approval of shareholders in the ensuing Annual General
Meeting. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
During the year
ended 31st March, 2012, the amount of per share dividend recognized as
distributions to equity shareholders was Rs. 7.50 (31st March, 2011: Rs. 7/-
per equity share).
b) Shareholders holding more than 5% of Equity Share Capital
|
Particular |
As on 31.03.2012 |
|
|
|
No. of Shares |
Percentage of
Holding |
|
Gujarat State Investments Limited |
30159981 |
37.84 |
|
Life Insurance Corporation of India |
4794692 |
6.02 |
|
Reliance Capital Trustee Company Limited |
7774871 |
9.76 |
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 |
796.955 |
796.955 |
796.955 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
34370.601 |
27489.592 |
20644.262 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
35167.556 |
28286.547 |
21441.217 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1335.731 |
980.790 |
1747.511 |
|
|
2] Unsecured Loans |
4834.200 |
2942.471 |
5128.315 |
|
|
TOTAL BORROWING |
6169.931 |
3923.261 |
6875.826 |
|
|
DEFERRED TAX LIABILITIES |
2473.966 |
2043.292 |
2821.712 |
|
|
|
|
|
|
|
|
TOTAL |
43811.453 |
34253.100 |
31138.755 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14251.629 |
12612.855 |
10814.835 |
|
|
Capital work-in-progress |
3455.037 |
2331.970 |
116.452 |
|
|
Projects Under Execution |
0.000 |
0.000 |
1702.555 |
|
|
|
|
|
|
|
|
INVESTMENT |
4327.294 |
4249.794 |
4249.824 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
1324.665 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6423.423
|
5647.888 |
6110.969 |
|
|
Sundry Debtors |
14265.436
|
8654.622 |
6215.786 |
|
|
Cash & Bank Balances |
8975.521
|
6126.724 |
601.179 |
|
|
Other Current Assets |
1146.848
|
710.030 |
0.000 |
|
|
Loans & Advances |
2818.772
|
2997.120 |
8109.050 |
|
Total
Current Assets |
33630.000
|
24136.384 |
21036.984 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4920.576
|
3073.865 |
3622.395 |
|
|
Other Current Liabilities |
2393.056
|
2317.526 |
594.814 |
|
|
Provisions |
4538.875
|
3686.512 |
3889.351 |
|
Total
Current Liabilities |
11852.507
|
9077.903 |
8106.560 |
|
|
Net Current Assets |
21777.493
|
15058.481 |
12930.424 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43811.453 |
34253.100 |
31138.755 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
53018.306 |
47550.512 |
40191.929 |
|
|
|
Other Income |
1620.746 |
1011.970 |
1130.098 |
|
|
|
TOTAL (A) |
54639.052 |
48562.482 |
41322.027 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
29267.611 |
25406.286 |
|
|
|
|
Power and Fuel |
3627.164 |
3207.030 |
|
|
|
|
Purchase of Stock in Trade |
246.617 |
192.995 |
|
|
|
|
Employees Benefit Expenses |
3935.534 |
2641.213 |
35695.084 |
|
|
|
Other Expenses |
4671.480 |
4101.178 |
|
|
|
|
Exceptional Items |
340.900 |
0.000 |
|
|
|
|
Changes in
Inventories of Finished Goods and Work in Process and Stock in Trade |
(76.647) |
227.832 |
|
|
|
|
TOTAL (B) |
42012.659 |
35776.534 |
35695.084 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
12626.393 |
12785.948 |
5626.943 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
200.847 |
198.602 |
306.184 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
12425.546 |
12587.346 |
5320.759 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1292.043 |
1464.025 |
1409.317 |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIOD
ADJUSTMENTS |
NA |
NA |
(20.250) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
11133.503 |
11123.321 |
3891.192 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3557.813 |
3629.607 |
1346.482 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
7575.690 |
7493.714 |
2544.710 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1349.400 |
904.100 |
477.566 |
|
|
|
|
|
|
|
|
|
Less |
Balance
reduced due to rounding off difference on Dividend and Dividend Tax |
NA |
NA |
0.015 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
6100.000 |
6400.000 |
1700.000 |
|
|
|
Proposed Dividend on Equity Shares |
597.700 |
557.900 |
358.630 |
|
|
|
Tax on Proposed Dividend |
97.000 |
90.500 |
59.564 |
|
|
BALANCE CARRIED
TO THE B/S |
2130.390 |
1349.414 |
904.067 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1450.040 |
836.793 |
833.321 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
15374.829 |
13559.004 |
13493.835 |
|
|
|
Stores & Spares |
176.321 |
118.491 |
225.373 |
|
|
|
Capital Goods |
12.922 |
261.321 |
0.000 |
|
|
TOTAL IMPORTS |
15564.072 |
13938.816 |
13719.208 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
95.06 |
94.03 |
31.93 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
4317.300 |
3693.900 |
|
Total Expenditure |
|
3981.900 |
3507.800 |
|
PBIDT (Excl OI) |
|
335.400 |
186.100 |
|
Other Income |
|
16.000 |
16.200 |
|
Operating Profit |
|
351.400 |
202.300 |
|
Interest |
|
206.900 |
217.500 |
|
PBDT |
|
144.500 |
(15.200) |
|
Depreciation |
|
133.200 |
135.800 |
|
Profit Before Tax |
|
11.300 |
(151.000) |
|
Tax |
|
39.300 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(28.000) |
(151.000) |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(28.000) |
(151.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
13.86
|
15.43 |
6.15 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.00
|
23.39 |
9.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
23.25
|
30.27 |
12.21 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.39 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.51
|
0.45 |
0.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.84
|
2.65 |
2.59 |
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 |
No |
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
OPERATIONAL PERFORMANCE:
The Company has
achieved highest ever Profit Before Tax (PBT) of Rs. 11130.000 Millions and Net
Profit (Profit After Tax) of Rs. 7580.000 Millions in the year 2011-12.
(Previous highest PBT of Rs. 11120.000 Millions and PAT of Rs. 7490.000
Millions in FY 2010-11). The Company has achieved the sales turnover for the
year ended March 31, 2012 of Rs. 53020.000 Millions, which registered a growth
of 12% over the previous financial year’s turnover of Rs. 47550.000 Millions.
The Company achieved this higher sales turnover as a result of better price
realization in both the business segments viz. Fertilizer and Industrial
Products. The EBIDTA has also increased from 12785.900 Millions to Rs.
12967.200 Millions. The finance cost has increased nominally from Rs. 198.600
Millions in previous year to Rs. 200.800 Millions in F Y 2011-12.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
MACRO ECONOMIC
OVERVIEW:
The Indian Economy
is estimated to grow at the rate of 6.9% in 2011-12 as compared to the growth
of 8.4% during 2010- 11. With the good performance of Agriculture and Services,
domestic economical downtrend could be attributed to the weakened industrial
growth. Overall growth in the Index of Industrial Production during
April-January 2011-12 was 4.0% as compared to 8.3% during 2010-11. Inflation,
as measured by wholesale price index, was high during most of the portions of
the current fiscal year. Due to weak manufacturing activity and rising costs,
revenue of the country has been lesser than what was anticipated. With higher
expenditure outgo as compared to the budget, a downslide is expected on the
fiscal side. The other factors which can be attributed to the slowdown are
global crises, especially the euro-zone crisis, the sluggish growth in the
countries like USA, stagnation in Japan and the hardening crude prices.
However, the growth outlook for the Indian economy appears to be promising.
The south west
monsoon rains, the lifeline of agricultural production, was excellent during
June-September, 2011. The cumulative rainfall received in the country as a
whole was 898.80 mm which is 2% above the average. Out of 36 meteorological
subdivisions, cumulative rainfall was excess/normal in 33 sub-divisions and
deficient/scanty in the 3 subdivisions. The rainfall spread as well as
distribution was good. Most parts of the country received good rainfall and it
led to a rise in ground water reserve and it helped the Rabi crops. This gave
the boost to the food grain production which increased from 244.78 million
tonnes in 2010-11 to an all time record level of 250.42 million tonnes in
2011-12.
THRUST ON AGRICULTURE:
Agriculture, the
mainstay of the Indian Economy, is a vital driver for macro-economic
performance and is equally a critical element for the growth strategy. The GDP
growth in agriculture sector during the year 2011-12 was 2.5% as compared to
7.0% during 2010-11. The approach paper to the Twelfth Five Year Plan
emphasizes the need to multiply our efforts to achieve 4% average growth in
agriculture sector. Thrust on soil testing, increasing area under irrigation,
favorable terms of trade to farmers, access to better and cheaper credit, more
investment in agriculture, use of latest farm technology, fertilizer use
efficiency, use of new and tailor made specialty/customised fertilizers for
application based on soil report would certainly help in increasing
agricultural production. Gujarat is the primary market for selling fertilizers
manufactured by the Company. The programs implemented by the State Government
have helped immensely in improvising the agricultural productivity and this has
enabled the Company to sell 7.64 lacs tonnes of fertilizers in Gujarat which
constitutes 53% of its total all India fertilizer sale of 14.41 lacs tonnes.
The State has emerged as the fastest growing state in the field of agriculture.
The performance of Gujarat in the agricultural sector has been one of the best
in the Country. As a result of Krushi Mahotsav and other initiatives of Gujarat
Government, it has emerged as one of the major producers of food grains and
cash crops. Gujarat Green Revolution Company Ltd. has covered 4.75 lacs hectares
under drip irrigation in the state of Gujarat since 2005. GSFC sold 14.41 lacs
tonnes of Fertilizers, as against last year sales of 15.69 lacs tonnes, a
decline of 8% mainly due to lower production of DAP at Sikka for want of
Phosphoric Acid, a raw material. Out of the total sales of 5.43 lacs tonnes of
DAP, the company sold 3.19 lacs tonnes in Gujarat. Thus, GSFC has the highest
market share of 49% in Gujarat, followed by IFFCO (24%) and Indian Potash Ltd
(10%). In case of Ammonium Phosphate Sulphate (APS) also, GSFC has the highest
market share of 46% in Gujarat, followed by GNFC at 37%.
INDUSTRIAL PRODUCTS:
The Financial Year
2011-12 witnessed a robust beginning. The prices of major Industrial Products
touched new heights in the first half of the year which has resulted into
better realization for Caprolactam, Nylon-6 Chips and Ammonia. The
macro-economic environment witnessed a slow down during the second half of the
year and the prices of our Industrial Products declined correspondingly.
However, the depreciation of Rupee, which has been almost 4% during the year,
has facilitated better price realization for most of the Industrial products
sold on import price parity. The net sales of Industrial Products for the year
2011-12 have increased by 17% as compared to the year 2010-11, despite a dismal
business environment during the second half of the year. The demand across all
the user segments like automobiles, textiles, infrastructure, housing and
consumer durables etc have witnessed a decline during the year under review.
Inflation continued to remain high for most parts of the year before coming
down to single digit. The macroeconomic environment continues to remain damp
and prices of key Industrial Products mainly Caprolactam, which accounts for almost
50% of the total sales turnover of the Industrial products, have registered a
sharp decline. A depression has been declared for Europe and the Chinese
economy is also faltering, the US is yet to come out of its recession and hence
profitability and margin across the globe are likely to get affected with
reduced consumption. While we may be able to achieve sales volume, the margins
for most of the Industrial Products are likely to remain under pressure.
Albeit, sales turnover is likely to be maintained at 2011-12 levels with the
addition of new Methanol capacity towards the middle of the year.
EXPORTS:
MEK Oxime and
Caprolactam are the main products being exported by the Company. During FY 2011-12,
the export of Caprolactam was 7878 MTs as against 4419 MTs in FY2010-11. The
increase in export volume is mainly due to domestic demand constraints for
Caprolactam particularly in Q3 of 2011-12. MEK Oxime has been exported to about
30 countries and the export quantity was 1865 MTs in 2011-12 as against 2288
MTs in 2010-11. The decline in export of MEK Oxime is due to raw material
constraints during H1 of FY 2011-12 as well as weak demand in Europe, our key
export destination.
OUTLOOK FOR
2012-13:
With the
announcement of NBS policy and with fixation of subsidy on per Ton basis for
the whole year on Phosphatic/ Potassic Fertilizers, the maximum retail price of
the product will get altered as per the raw material prices in the
international market. Announcement of Nutrient based Policy by the Govt. of
India (GOI) may increase the volatility in the profit margins of the Fertilizer
Industry. The cost efficient players will be better placed to combat the impact
of this volatility. NBS policy on P and K fertilizers has been well received by
all stake holders and the availability of fertilizers has also improved. Cut
throat competition in case of DAP/NPK fertilizers may continue during the first
quarter of 2012-13 in the wake of prevailing glut situation and huge stock of
fertilizers in the market. Market conditions will become normal with good
monsoon only.
GSFC has got a
good product mix but considering the NBS policy encouraging the use of NP/NPK grades,
the Company needs to have the facility to produce DAP and NP/NPK grades at
Sikka simultaneously. This is being considered by the Company. To increase the
market share, the Company has planned to set up a trading desk and the Company
has planned to import about 2.00 lacs MTs of DAP and substantial quantity of
Muriate of Potash (MoP). With subsidy on micro-nutrient fortified fertilizers,
fertilizer manufacturers have started production of such fertilizers. The
Company is also examining the possibilities to manufacture such types of
customized fertilizers.
In the Union
Budget – 2012-13, Government of India has allocated sufficient funds for
development of rural infrastructure. Easy access to credit, extra emphasis on
irrigation and micro- irrigation, rural infrastructure and soil testing etc.
would afford growth opportunities to the agriculture sector. The extension of
NBS regime to cover urea is under active consideration of the Government.
Department of
Fertilizers, GOI, in its notification dated 29th March, 2012 has mentioned that
no freight reimbursement shall be made on account of secondary movement of P
and K fertilizers. In addition to this, fertilizer suppliers have to ensure FOR
delivery upto retail points. This move will increase the freight cost and
ultimately marketing cost. Generally farmers of Gujarat prefer indigenous
Fertilizers to imported material. Besides NP/NPK products, demand of “Sardar
DAP” is likely to continue at the present level. Considering the Company’s
presence in potential markets and its enjoying better brand preference, there
may not be much problem in selling available quantity of DAP. The Company has
planned to open more than 50 depots in Gujarat. This will increase the market
presence and thus enhance the availability of fertilizers to farmers. In
anticipation of good monsoon during FY 2012-13, the Company expects to sell
3.75 lacs MTs of fertilizers during Q1 of FY 2012-13.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2012 (Rs. in millions) |
31.03.2011 (Rs. in millions) |
|
Claims against the Company not acknowledgement as debt |
|
|
|
Disputed Excise and Customs Duty (net of provision) |
532.600 |
451.600 |
|
Disputed demand
of Sales Tax, Interest on Turnover Tax and Purchase Tax against which the Company has preferred appeals |
355.600 |
46.200 |
|
Claims by
Statutory Corporations and others not acknowledged as debt |
426.400 |
411.100 |
|
Disputed gas price/royalty on gas with ONGC |
75.200 |
75.200 |
|
TOTAL
|
1389.800 |
984.100 |
FIXED ASSETS:
·
Land
·
Building
·
Railway Sidings
·
Plant and Machinery
·
Furniture, Fittings and Equipments
·
Vehicles
·
Library Books
·
Computer Software
·
Assets retired from use and held for disposal
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH
SEPTEMBER, 2012
Rs. in Millions
|
Sr. No. |
Particular |
3
Months Ended on |
Preceding
3 Month Ended on |
Year
to Date Figures For Current Period Ended |
|
|
|
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
|
|
|
|
|
|
|
1. |
Net Sales/Income from Operations |
14160.200 |
14118.400 |
28278.600 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
8309.600 |
6122.900 |
14432.500 |
|
|
Purchase
of stock in trade |
2005.100 |
3022.300 |
5027.400 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
(1698.600) |
(276.500) |
(1975.100) |
|
|
Power
and fuel |
861.200 |
871.600 |
1732.800 |
|
|
Employee
benefits expenses |
892.900 |
972.900 |
1865.800 |
|
|
Depreciation
and amortization expenses |
339.900 |
292.300 |
632.200 |
|
|
Other
expenses |
1762.400 |
1033.100 |
2795.500 |
|
|
Total Expenses |
12472.500 |
12038.600 |
24511.100 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
1687.700 |
2079.800 |
3767.500 |
|
|
|
|
|
|
|
4. |
Other
Income |
459.900 |
547.500 |
1007.400 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
2147.600 |
2627.300 |
4774.900 |
|
|
|
|
|
|
|
6. |
Interest |
32.400 |
95.100 |
127.500 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
2115.200 |
2532.200 |
4647.400 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
2115.200 |
2532.200 |
4647.400 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
610.600 |
805.100 |
1415.700 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
1504.600 |
1727.100 |
3231.700 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
1504.600 |
1727.100 |
3231.700 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
797.000 |
797.000 |
797.000 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per Share
(EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
3.78 |
4.33 |
8.11 |
|
|
b)
Basic and diluted EPS after extraordinary items |
3.78 |
4.33 |
8.11 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
247677625 |
247677625 |
247677625 |
|
|
-
Percentage of Shareholding |
62.16 |
62.16 |
62.16 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number
of Shares |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
150799905 |
150799905 |
150799905 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
37.84 |
37.84 |
37.84 |
|
Particulars |
3 Months ended on 30.09.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
5 |
|
Disposed of during the quarter |
5 |
|
Remaining unresolved at the end of the
quarter |
Nil |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
Rs. in Millions
|
Sr. No. |
Particular |
3
Months Ended on |
Preceding
3 Month Ended on |
Year
to Date Figures For Current Period Ended |
|
|
|
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
|
|
|
|
|
|
|
1 |
Segment Revenue |
|
|
|
|
a) |
Fertilizer Products |
9208.800 |
8941.400 |
18150.200 |
|
b) |
Industrial Products |
4951.400 |
5177.000 |
10128.400 |
|
|
TOTAL |
14160.200 |
14118.400 |
28278.600 |
|
|
Less : Inter
Segment Revenue (Net of Excise) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
NET SALES / INCOME FROM OPERATION |
14160.200 |
14118.400 |
28278.600 |
|
|
|
|
|
|
|
2 |
Segment Results |
|
|
|
|
|
Before Tax and Finance cost from
each Segment |
|
|
|
|
a) |
Fertilizer Products |
560.700 |
1026.800 |
1587.500 |
|
b) |
Industrial Products |
1322.800 |
1123.300 |
2446.100 |
|
|
TOTAL |
1883.500 |
2150.100 |
4033.600 |
|
|
|
|
|
|
|
|
Less :Interest |
32.400 |
95.100 |
127.500 |
|
|
Less : Other Unallocable
Expenses and Extra Ordinary Items |
231.800 |
(90.400) |
141.400 |
|
|
Net of Unallocable
Income |
(495.900) |
(386.800) |
(882.700) |
|
|
NET PROFIT (+) / LOSS(-) BEFORE TAX |
2115.200 |
2532.200 |
4647.400 |
|
|
|
|
|
|
|
3 |
Capital Employed |
|
|
|
|
a) |
Fertilizer Products |
19622.800 |
15842.000 |
19622.800 |
|
b) |
Industrial Products |
7085.400 |
7510.600 |
7085.400 |
|
c) |
Unallocated |
11691.100 |
13542.100 |
11691.100 |
|
|
TOTAL |
38399.300 |
36894.700 |
38399.300 |
STATEMENT OF ASSETS AND
LIABILITIES
Rs. in Millions
|
PARTICULARS |
30.09.2012 Unaudited |
|
Equity and liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
797.000 |
|
Reserve & surplus |
37602.300 |
|
Sub-total
- Shareholders' funds |
38399.300 |
|
Non - current liabilities |
|
|
Deferred tax liability (net) |
2474.000 |
|
Long term provisions |
1514.100 |
|
Sub-total
- Non-current liabilities |
3988.100 |
|
Current liabilities |
|
|
Short term borrowings |
5190.800 |
|
Trade payables |
7230.400 |
|
Other current liabilities |
1882.500 |
|
Short term provisions |
2012.400 |
|
Sub-total
- Current liabilities |
16316.100 |
|
|
|
|
Total -
Equity & Liabilities |
58703.500 |
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Fixed assets |
17601.900 |
|
Non-current investment |
4327.300 |
|
Long term loans & advances |
2191.200 |
|
Other non-current assets |
440.900 |
|
Sub-total
- Non-current Assets |
24561.300 |
|
Current
assets |
|
|
Inventories |
11629.400 |
|
Trade receivables |
13705.500 |
|
Cash & bank balances |
6654.200 |
|
Short term loans & advances |
1492.600 |
|
Other current assets |
660.500 |
|
Sub-total
- Current Assets |
34142.200 |
|
|
|
|
Total –
Assets |
58703.500 |
NOTES:
1.
A Limited Review of the unaudited
financial results for the quarter ended on 30th September, 2012 has been
carried out by the Statutory Auditors.
2. The above
financial result was reviewed by the Finance Cum Audit Committee and approved
by the Board of Directors at their meetings held on 19th October, 2012
3. Previous
period Figures have been regrouped wherever necessary.
4. Equity
Shares of the Company of the face value of Rs. 10/- each have been subdivided
into Five Equity Shares of Rs.2/- each during the quarter and this
has been so reflected in part-II for the earlier periods. Accordingly, previous
period figures pertaining to per share data have been recalculated and
presented.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] 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.54.54 |
|
|
1 |
Rs.88.05 |
|
Euro |
1 |
Rs.72.29 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
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.