MIRA
INFORM REPORT
|
Report Date : |
28.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAGARJUNA AGRICHEM LIMITED |
|
|
|
|
Registered
Office : |
Plot No. 12-A, C Block, Lakshmi Towers, No. 8-2-248/1/7/78, Nagarjuna Hills,
Panjagutta, Hyderabad-500082, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
11.11.1986 |
|
|
|
|
Com. Reg. No.: |
01-016607 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 148.982 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24219AP1986PLC016607 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDN00523F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN6932H |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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|
|
|
Line of Business
: |
Manufacturer of Agro Chemicals. |
|
|
|
|
No. of Employees
: |
1123 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8300000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a subsidiary of ‘KLR Products Limited’. It is well
established company having a fine track record. Financial position of the company appears to be good. Directors are
reported as well – experienced and knowledgeable businessmen. Trade relations are reported as decent. Business is active. Payments
are reported as regular and as per commitment. The company can be considered for business dealings at usual trade
terms and condition. |
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 |
CARE |
|
Rating |
Short term rating = A2 |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
October 2011 to March 2012 |
|
|
|
|
Rating Agency Name |
CARE |
|
Rating |
Long term rating = A - |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
October 2011 to March 2012 |
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 / Corporate Office : |
Plot No. 12-A, C Block, Lakshmi Towers, No. 8-2-248/1/7/78, Nagarjuna
Hills, Panjagutta, Hyderabad-500082, Andhra Pradesh, India |
|
Tel. No.: |
91-40-2335 8217 / 23350235/ 23357442 |
|
Fax No.: |
91-40-2335 0234/ 23358062 |
|
E-Mail : |
aspardhasaradhi@nagarjunagroup.com jagannadharao@nagarjunaagrichem.com (for overseas requirement) manikkam.natarajan@nagarjunaagrichem.com (for domestic requirement) |
|
Website : |
|
|
|
|
|
Factory 1 / R&D Centre : |
Shadnagar, Nandigaon Village, Kothur Mandal, Mahaboobnagar, Andhra Pradesh, India |
|
Tel. No.: |
91-8548-240010 / 240483 |
|
|
|
|
Factory 2 : |
Ravalapalem Mandal, Ethakota – 533238, East Godavari, Andhra Pradesh, India |
|
Tel. No.: |
91-8855-255376 / 255876 / 255976 |
|
Fax No.: |
91-8855-257276 |
|
|
|
|
Factory 3 : |
Plot No. 177, P.O. Allinagaram, Arinama Akkivalasa,
Etcherla Mandal, Srikakaulam – 532403, |
|
Tel. No.: |
91-8942-231172 / 73 / 74 |
|
Fax No.: |
91-8942-231171 |
|
|
|
|
Branch Office : |
1st Floor, |
|
|
|
|
Windmill : |
Tirunelveli, Tamilnadu |
DIRECTORS
As on 31.03.2012
|
Name : |
Dr. Nitish K. Sen Gupta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K. S. Raju |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Lakshmi Raju |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Rahul Raju |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. Ranga Raju |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K Rghu Raman |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudhakar
Kudva |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N.
Vijayaraghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sukhendu Ray |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prashant Kumar Mallik |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R S Nanda |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. Vijay
Shankar |
|
Designation : |
Managing Director
|
|
|
|
KEY EXECUTIVES
|
Name : |
Mr. Amit Taparia |
|
Designation : |
Senior General Manager [Procurement and SCM] |
|
|
|
|
Name : |
Mr. R.K.S. Prasad |
|
Designation : |
Chief Finance Officer |
|
|
|
|
Name : |
Mr. Manikkam Natarajan |
|
Designation : |
Vice President [Marketing and Sales] |
|
|
|
|
Name : |
Mr. G. Jagannadha Rao |
|
Designation : |
Vice President [Exports] |
|
|
|
|
Name : |
Mr. Harish Bijilwan |
|
Designation : |
Senior General Manager [Business Tech and Outsourcing] |
|
|
|
|
Name : |
Mr. S.V.S. Rama Raju |
|
Designation : |
President [Operations] |
|
|
|
|
Name : |
J.Satyanarayana Das |
|
Designation : |
Vice President - Manufacturing (Ethakota) |
|
|
|
|
Name : |
K.G.Vadivel |
|
Designation : |
Vice President - Manufacturing (SKLM) |
|
|
|
|
Name : |
S.Chandra Sekhar |
|
Designation : |
Vice President - Corporate HPD |
|
|
|
|
Name : |
Satish Kumar Subudhi |
|
Designation : |
Company Secretary and Head-Legal |
|
|
|
|
Name : |
K.G.Vadivel |
|
Designation : |
Vice President - Manufacturing (SKLM) |
|
|
|
SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3018360 |
2.03 |
|
|
113623500 |
76.27 |
|
|
116641860 |
78.29 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
116641860 |
78.29 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
5416776 |
3.64 |
|
|
|
|
|
|
14316713 |
9.61 |
|
|
11574941 |
7.77 |
|
|
1031280 |
0.69 |
|
|
992718 |
0.67 |
|
|
24122 |
0.02 |
|
|
14440 |
0.01 |
|
|
32339710 |
21.71 |
|
Total Public shareholding (B) |
32339710 |
21.71 |
|
Total (A)+(B) |
148981570 |
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) |
148981570 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Agro Chemicals. |
||||
|
|
|
||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
1123 [Approximately] |
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|
Bankers : |
· State Bank of India · HDFC Bank Limited · Punjab National Bank · IDBI Bank Limited · ICICI Bank Limited ·
New India Co-operative Bank Limited |
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|
|||||||||||||||||||||||||||||||||
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Facilities : |
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|
|
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|
Banking
Relations : |
---- |
|
|
|
|
Auditors : |
|
|
Name : |
M. Bhaskara Rao and Company Chartered Accountants |
|
Address : |
5-D, Kautilya, Somajiguda, |
|
|
|
|
Cost Auditors: |
|
|
Name : |
K. Narasimha Murthy and Company |
|
Address : |
3-6-365, 104
& 105, Pavani Estate, Himayathnagar,
Hyderabad - 500 029, Andhra Pradesh, India |
|
|
|
|
Holding Company: |
KLR Products Limited (Formerly GSR Products Limited) |
|
|
|
|
Subsidiaries :: |
·
Nagarjuna Agrichem (Australia) Pty. Limited,
Australia, ·
LR Research Laboratories Private Limited |
|
|
|
|
Associates : |
·
Indo International Fertilizers Limited ·
Nagarjuna Fertilizers ·
Chemicals Limited ·
Bhagiradha Chemicals and Industries Limited ·
USP Organics Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14898157 |
Equity Shares |
Rs.10/- each |
Rs.148.982 Millions |
|
|
|
|
|
Shares in the
Company held by each Shareholders holding more than 5%
|
Particulars |
31st March 2012 |
31st March 2011 |
||
|
|
No. of shares |
% holding |
No. of shares |
% holding |
|
KLR Products Limited Holding Company |
11362350 |
76.27 |
11362350 |
76.27 |
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 |
148.982 |
148.982 |
148.982 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1924.694 |
1877.547 |
1872.903 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2073.676 |
2026.529 |
2021.885 |
|
|
LOAN FUNDS |
|
|
|
|
|
|
|
1993.575 |
1790.497 |
|
|
2] Unsecured Loans |
|
56.447 |
63.286 |
|
|
TOTAL BORROWING |
1965.634 |
2050.022 |
1853.783 |
|
|
DEFERRED TAX LIABILITIES |
287.800 |
247.034 |
226.374 |
|
|
|
|
|
|
|
|
TOTAL |
4327.110 |
4323.585 |
4102.042 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1916.564 |
2078.069 |
1539.944 |
|
|
Capital work-in-progress |
161.204 |
70.518 |
300.454 |
|
|
|
|
|
|
|
|
INVESTMENT |
35.605 |
0.505 |
0.500 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1642.002
|
1457.502
|
1594.452
|
|
|
Sundry Debtors |
1948.596
|
1368.024
|
1630.516
|
|
|
Cash & Bank Balances |
250.739
|
234.594
|
224.947
|
|
|
Other Current Assets |
4.284
|
1.699
|
1.320
|
|
|
Loans & Advances |
349.150
|
305.581
|
257.066
|
|
Total
Current Assets |
4194.771
|
3367.400 |
3708.301 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1371.531
|
947.777
|
1169.111
|
|
|
Other Current Liabilities |
571.848
|
234.537
|
203.812
|
|
|
Provisions |
37.655
|
10.593
|
74.234
|
|
Total
Current Liabilities |
1981.034
|
1192.907 |
1447.157 |
|
|
Net Current Assets |
2213.737
|
2174.493
|
2261.144
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4327.110 |
4323.585 |
4102.042 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6430.650 |
5700.839 |
6528.663 |
|
|
|
Other Income |
38.607 |
52.697 |
86.657 |
|
|
|
TOTAL |
6469.257 |
5753.536 |
6615.320 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4168.440 |
|
|
|
|
|
Purchase of Stock in Trade |
464.325 |
371.672 |
|
|
|
|
Employee Benefits Expenses |
449.469 |
400.665 |
|
|
|
|
Other Expenses |
946.204 |
816.487 |
|
|
|
|
Changes in Inventories |
(303.480) |
262.818 |
|
|
|
|
TOTAL |
5724.958 |
5168.847 |
5326.170 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
744.299 |
584.689 |
1289.150 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
332.332 |
259.520 |
171.490 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
411.967 |
325.169 |
1117.660 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
269.574 |
230.526 |
204.984 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL
ITEMS |
0.000 |
30.303 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
142.393 |
64.340 |
912.676 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
69.276 |
33.551 |
315.111 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
73.117 |
30.789 |
597.565 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1437.214 |
1436.025 |
985.610 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
4.000 |
3.500 |
60.000 |
|
|
|
Interim Dividend |
0.000 |
22.300 |
29.796 |
|
|
|
Final Dividend |
22.400 |
0.000 |
44.694 |
|
|
|
Corporate Dividend Tax on Interim Dividend |
0.000 |
3.800 |
5.064 |
|
|
|
Provision for Corporate Dividend Tax
|
3.600 |
0.000 |
7.596 |
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
1480.331 |
1437.214 |
1436.025 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB Basis |
1968.607 |
1535.106 |
2247.923 |
|
|
TOTAL EARNINGS |
1968.607 |
1535.106 |
2247.923 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1364.005 |
1198.195 |
1744.838 |
|
|
|
Capital Goods |
19.904 |
2.058 |
11.924 |
|
|
TOTAL IMPORTS |
1383.909 |
1200.253 |
1756.762 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.91 |
2.07 |
40.11 |
|
QUARTERLY RESULTS
|
PARTICULARS |
As on 30.06.2012
1st quarter |
As on 30.09.2012
2nd quarter |
|
Net Sales |
1622.000 |
2201.700 |
|
Total Expenditure |
1484.000 |
2045.000 |
|
PBIDT (Excl OI) |
138.000 |
156.700 |
|
Other Income |
30.200 |
5.900 |
|
Operating Profit |
168.200 |
162.600 |
|
Interest |
93.900 |
73.400 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
74.300 |
89.200 |
|
Depreciation |
67.500 |
54.900 |
|
Profit Before Tax |
6.800 |
34.300 |
|
Tax |
3.600 |
16.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
3.200 |
18.000 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
3.200 |
18.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.13
|
0.54
|
9.03 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.21
|
1.13
|
13.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.33
|
1.18
|
17.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.03
|
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.90
|
1.60
|
1.63 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.12
|
2.82
|
2.56 |
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 |
Yes |
|
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 |
Yes |
|
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 |
LITIGATION DETAILS
CASE STATUS INFORMATION
ITTASR 4666 / 2012
ITTA 602 / 2012
CASE
IS: PENDING
|
PETITIONER The Commissioner
of Income Tax Act – IV |
Respondent VS Nagarjuna
Agrichem Limited |
||
|
PET. ADV.: |
Prasad (SC For
Income Tax) |
Resp. Adv.: |
Ramaswami |
|
Filing Date : |
31.10.2012 |
District : |
Hyderabad |
|
Registration
date : |
26.12.2012 |
Status: |
------ |
|
Honorable
Judges: |
Goda Raghuram,
M.S. Ramachandra Rao |
|
|
|
Listing Date: |
21.01.2013 |
|
|
PERFORMANCE
For the year 2011-12,
the Company reported annual sales revenue of Rs. 6430.700 Millions against Rs.
5700.800 Millions recorded in 2010-11 registering an increase of 12.80%. This
increase in sales could be achieved due to increase in production volumes and
widening product range with focus on value added products. The Company recorded
an Operating Profit (PBIDT) of Rs. 474.700. Millions and Profit After Tax of
Rs. 731.000 Millions with respective growth of 33.98% and 137% over the
previous year. The increase in interest cost is mainly due to higher current
asset levels in the form of higher inventory and receivables due to the monsoon
failure and other market conditions. The cash profits for the year were 383.500
Millions as compared to Rs. 282.000 Millions during the previous year.
PLANT OPERATIONS
The Company's
Srikakulam's Technical Unit achieved an Annual production of 5307 MT during the
year compared to 4335 MT of the previous year. The plant at Srikakulam has been
stable since May, 2011 after the labour issues were settled. Since then
production has been steadily improving. Debottlenecking was done for
few plants by
investing about Rs.40.000 Millions.
The continued
focus on streamlining the production facilities, augmenting the plant
efficiencies and enhance the productivity during the year have started yielding
results.
The Ethakota and
Shadnagar formulating units continued to be normal as well and could meet the
demand of domestic customer base. Various initiatives in the areas of
production volume increase, quality control and supply chain have been taken to
meet the enhanced marketing demand and effective / better customer services.
However, rising input costs, erratic and irregular power supply from Electricity
Boards, Rupee depreciation, manpower attrition etc. are the causes of concern.
FIRE INCIDENT IN
SRIKAKULAM PLANT
As the
Shareholders are aware, a fire was broke out in the block -5 of the Company’s
plant at Srikakulam on 30th June, 2012. Although, there were no casualties, 19
people who sustained minor injuries, were treated in nearby hospitals and
discharged within 5 days. The safety mechanisms and systems in place had helped
to keep the injuries to a minimum. The unfortunate incident drew extensive media
coverage resulting panic reaction by the nearby villagers. The concerned
Government Authorities such as Inspectorate of Factories, Pollution Control
Board and RDO, have issued necessary orders. The main reason for the fire is
being investigated by Factories Department. The Company has initiated various
measures towards meeting the additional requirements /compliances of the said
Government authorities and improving upon various safety measures. The
management is confident of the addressing the concerns of all stakeholders viz:
local villagers, public, employees / laborers, Government Authorities etc. and
hopeful to restart the operations at the earliest.
DOMESTIC AND
EXPORT MARKETS
The Indian
Agrichemical market continues to be under pressure due to significant drop in
rabi acre ages in certain parts of the country coupled with excess availability
of product. The local pesticide industry in general is stuck in a spiraling
loop of falling price realizations, inability to pass on increased input cost,
tough competition, credit problems and stock returns. The delayed monsoon in
the previous year has also joined impacting the crops particularly in South
India. This resulted in the Company's domestic sale reducing from Rs. 3311.000
Millions to Rs. 3165.700 Millions in the year.
Towards focusing
on farmers reach and touch, Marketing and Product Development department has
been strengthened. The Company has also initiated discussions with different
leading International Manufacturers to introduce new products into India.
Exports have shown significant improvement compared to the previous year,
mainly due to stabilization of the Srikakulam plant. The Sales has increased
from Rs. 1585.900 Millions to Rs. 2080.400 Millions in the year. Contract
(toll) manufacturing continues to be an important aspect of the Srikakulam
production. The output is being increased in a few products due to increased
demand, by debottlenecking. Relationship continues to be good with the Contract
Manufacturing Customers. Work has commenced on selecting new products to offer
to various existing and new customers.
WINDMILLS
The Company has 3
windmills having a total capacity of 6.3 MW, located near Tirunelveli in Tamil
Nadu. The operations of these are managed by M/s Suzlon Limited. The performance
of the Windmills for the year was satisfactory. During the year under review,
receivables from TNEB, who purchase the entire power generated as per the terms
of the PPA, have been delaying their payments. The Industry has taken up the
matter with TNEB
INDUSTRY OVERVIEW
The Agrochemicals
Industry plays a significant role in the Agriculture sector in India, which
accounts for about one fifth of its GDP. The domestic market size of the Indian
Agrochemical Industry is around Rs. 120000.000 Millions and is expected to grow
at 10 % per annum. India's growth rate compares with the highest in the world.
With emphasis in agriculture by the Government of India the growth is expected
to continue. India is currently the fourth largest producer of Agrochemicals globally,
after United States, Japan and China. The current domestic consumption is also
expected to grow driven by rising population, decreasing per capita
availability of arable land and focus on increasing agricultural yield. The
demand will also be driven by the rising food grain demand and increasing
awareness about pesticide usage among the farmer community. The pesticide
consumption is around 480 gm per hectare which is very low compared to
countries like Japan, USA etc.
The Indian market
is served by many Companies. Being a generic market, ability to introduce
me-too products is easy. Many small players have seized this and have a
influencing presence in the market space. This has resulted in stiff
competition and quality being compromised. Despite this, the attractiveness of
the Indian market has made MNCs to set up shops in India over the past few
years, through commencing business / acquisitions viz Maktisham Agan, Sumitomo
and Arysta. Existing MNCs are implementing plans to grow. It is also to be
noted that the Government is becoming active in reviewing products that have
high toxicity levels. This has resulted in products being banned. Contract
Manufacturing and Exports in India is around USD 1.8 Billions. Phillips
MacDonald (a leading global publication in the pesticide industry) has
indicated that the contract manufacturing is expected to grow, as MNCs are
focusing on growth in the generic markets as new product developments is
becoming more expensive.
OPPORTUNITIES
The growing requirement
of agricultural products in India is a major opportunity. Having a good pan
India presence through the large network of dealers and channel partners, the
Company is in a position to seize the opportunities for growing in India. The
growing presence of more MNC should bring in more discipline in the mid to long
run in the markets which augurs well for the Industry. India is also a fast
becoming a destination for contract manufacturing of generic pesticides by many
Multinationals. This is due to the cost advantages and the technical skills
available in the country. The Company is one of the leading players in this
field. As per a study by Task Force, Government of India, the Export and
Contract Manufacturing market opportunity by 2020 is USD 7.3 billon. India has
the opportunity to leverage on its strength to become a major player in this
space. Many of the AI's (Active Ingredient) used in India are being imported
from China. China is going through a phase of tightening its manufacturing
facilities through introducing tougher pollution conditions. The Chinese
currency Yuan is also appreciating thereby making imports into India costlier.
This gives an opportunity for India to produce AIs and to be competitive in the
global markets. Keeping the above in view, the Company is gearing up to meet
these opportunities through strategies which will leverage its strength in the
pan India dealer network and by introducing new formulations in collaborations
with MNCs. It is also implementing various initiatives for improving its
productivity and capacity utilisation in its plants to seize the Contract
Manufacturing opportunities.
OUTLOOK
The pesticide
business, despite the above concerns is an attractive business. There are many
short term challenges for growth. The Company is implementing various plans to
leverage on its domestic network strength and as well as improving the
efficiencies and productivity of the manufacturing facilities.
FINANCIAL
PERFORMANCE (WITH RESPECT TO OPERATIONAL PERFORMANCE)
The Sale has shown
a growth of 13% over the previous year mainly due to Exports. The EBIDT was Rs.
744.300 Millions and has improved from last year of Rs. 554.400 Millions due to
improved sales. Interest was higher than previous year due to increase in
working capital. The Long Term Debt Equity Ratio is 0.29 compared to 0.46 of
the last year. The Company's improved financial and operations performance
during 2011-12 and the positive outlook about the Company's continued growth in
the years to come enabled the Board to recommend a dividend of 15% to the
Shareholders.
FIXED ASSETS
·
Land
·
Buildings
·
Plant and machinery
·
Electrical installations
·
Furniture and fixtures
·
Office equipments
·
Vehicles
·
Computer and Peripherals
·
Goodwill
·
SAP Upgrade License Fees
·
Implementation fee
·
Technical Knowhow
UNAUDITED FINANCIAL RESULTS
FOR THE PERIOD ENDED 30.09.2012
|
PARTICULARS |
Quarter ended 30.09.2012 |
Quarter ended 30.06.2012 |
Half year ended 30.09.2012 |
|
PART - I |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income from Operations |
|
|
|
|
Net sales
/ income from operations (Net of excise duty) |
2201.700 |
1,622.000 |
3823.700 |
|
|
|
|
|
|
Total income
from operations (net) |
2,201.700 |
1,622.000 |
3823.700 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Cost of Materials Consumed |
1,023.000 |
1,326.500 |
2349.500 |
|
Purchases of Stock in Trade |
224.600 |
79.800 |
304.400 |
|
Changes in
inventories of finished goods, WIP and Stock-in-trade |
534.200 |
278.200 |
256.000 |
|
Employee Benefit Expenses |
130.400 |
115.100 |
245.500 |
|
Depreciation
and Amortisation expenses |
54.900 |
67.500 |
122.400 |
|
Other Expenses |
132.800 |
240.800 |
373.600 |
|
Total Expenses |
2,099.900 |
1,551.500 |
3651.400 |
|
|
|
|
|
|
Profit from Operations before other
Income and Interest |
101.800 |
70.500 |
172.300 |
|
|
|
|
|
|
Other Income |
5.900 |
30.200 |
36.100 |
|
|
|
|
|
|
Profit Before Interest and exceptional Items |
107.700 |
100.700 |
208.400 |
|
|
|
|
|
|
Finance Costs |
73.400 |
93.900 |
167.300 |
|
|
|
|
|
|
Profit after interest but before exceptional items |
34.300 |
6.800 |
41.100 |
|
|
|
|
|
|
Exceptional items |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Profit/(Loss)
from ordinary activities before tax |
34.300 |
6.800 |
41.100 |
|
|
|
|
|
|
Tax expense |
16.300 |
3.600 |
19.900 |
|
|
|
|
|
|
Net
Profit/(Loss) from ordinary activities after tax |
18.000 |
3.200 |
21.200 |
|
|
|
|
|
|
Extraordinary
items |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Net Profit after tax |
18.000 |
3.200 |
21.200 |
|
|
|
|
|
|
Paid-up equity share capital (Face value
Rs. 10.00 per share) |
149.000 |
149.000 |
149.000 |
|
|
|
|
|
|
Reserves excluding Revaluation Reserve as
per balance sheet of previous accounting year |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Earnings Per
Share (EPS) (Face value of Rs. 10.00 per share) |
|
|
|
|
a) Basic and Diluted EPS before
extraordinary items |
1.21 |
0.21 |
1.42 |
|
|
|
|
|
|
PART - II |
|
|
|
|
PARTICULARS OF
SHARE HOLDING |
|
|
|
|
Public
Shareholding |
|
|
|
|
– Number of shares |
3233971 |
3233971 |
3233971 |
|
– Percentage of shareholding |
21.71 |
21.71 |
21.71 |
|
|
|
|
|
|
Promoters and |
|
|
|
|
a)
Pledged/ Encumbered |
|
|
|
|
- Number of shares |
0.00 |
0.00 |
0.00 |
|
- Percentage of shares (as a % of the
total hareholding of promoter and promoter group) |
0.00 |
0.00 |
0.00 |
|
- Percentage of shares (as a % of the
total share capital of the company) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
b)
Non encumbered |
|
|
|
|
- Number of shares |
11664186 |
11664186 |
11664186 |
|
- Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the total
share capital of the company) |
78.29 |
78.29 |
78.29 |
|
|
|
|
|
|
INVESTOR
COMPLAINTS |
|
|
|
|
Pending at the beginning |
Nil |
|
|
|
Received during the quarter |
11 |
|
|
|
Disposed off during the quarter |
11 |
|
|
|
Remaining unresolved at the end of the
quarter |
Nil |
|
|
STATEMENT OF ASSETS AND
LIABILITIES
|
PARTICULARS |
30.09.2012 |
|
|
|
|
Equity and Liabilities |
|
|
Shareholders' fund |
|
|
Share Capital |
149.000 |
|
Reserves & Surplus |
1945.800 |
|
|
|
|
Sub Total – shareholders fund |
2094.800 |
|
|
|
|
Non current liabilities |
|
|
Long-term borrowings |
610.600 |
|
Deferred tax liabilities (net) |
299.500 |
|
Other Long term liabilities |
118.100 |
|
Long-term provisions |
9.000 |
|
Sub Total Non Current liabilities |
1037.200 |
|
|
|
|
Current liabilities |
|
|
Short-term borrowings |
1100.100 |
|
Trade payables |
2262.200 |
|
Other current liabilities |
336.200 |
|
Short-term provisions |
29.100 |
|
Sub Total Current liabilities |
3727.600 |
|
|
|
|
TOTAL – EQUITY AND LIABILITIES |
6859.600 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
2067.100 |
|
Capital Work-In-Progress |
35.600 |
|
Non-current investments |
0.000 |
|
Long-term loans and advances |
161.900 |
|
Other Non-Current Assets |
0.000 |
|
|
|
|
Current assets |
|
|
Current investment |
0.000 |
|
inventories |
1614.600 |
|
Trade receivables |
2625.200 |
|
Cash and bank balance |
142.600 |
|
Short-term loans and advances |
207.200 |
|
Other current assets |
5.400 |
|
Sub Total Current
assets |
4595.000 |
|
Total Assets |
6859.600 |
Note:
1.
The above unaudited Financial Results
were reviewed by the Audit Committee and approved by the Board of Directors on
08th November, 2012.
2. The Statutory Auditors have carried out the
Limited Review as required under clause 41 of the Listing Agreement.
3. The Company's Business is seasonal in nature
and the performance can be impacted by weather conditions,
4. The Company is primarily engaged in the Farm
Inputs Business, which in the context of Accounting
Standard-17 is considered the only
significant business segment.
5. The Srikakulam Plant has not been in
operation during the Quarter since the fire accident occured on
30th June,
2012. Since then the Company has received approvals from Government Authorities
to
Recommence production
for a few products in a few blocks at Srikakulam. Approvals for the
Remaining
blocks are also expected to be received in due course, whereupon production
will be
taken up Thereafter. The Company is working on
related matters and expects to resume operations
at the Earliest,
6. The Company has lodged a provisional claim
for the damages due to the fire accident at Srikakulam
Plant with the
Insurance Company. On completion of the final assessment and acceptance, the
Financial impact, if any, will be considered
in the coming quarters.
7. As operations are yet to commence in the
subsidiary companies, no consolidation of financial statements is required.
8. Tax Expense includes current tax and deferred
tax.
9. Comparative figures have been re-grouped and recast
wherever considered necessary
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.53.85 |
|
|
1 |
Rs.85.25 |
|
Euro |
1 |
Rs.71.72 |
INFORMATION DETAILS
|
Report Prepared
by : |
SPN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
55 |
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.