MIRA INFORM REPORT
|
Report Date : |
12.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
INDIAN POTASH LIMITED |
|
|
|
|
Registered
Office : |
Ambal Building, III Floor, P. B. No. 738, 727, Anna Salai, Chennai-600006,
Tamil Nadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
17.06.1955 |
|
|
|
|
Com. Reg. No.: |
18-000961 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 142.986 |
|
|
|
|
CIN No.: [Company Identification
No.] |
U14219TN1955PLC000961 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEI00029B |
|
|
|
|
Legal Form : |
A Closely held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Trader of Fertilisers and also manufacturer of Cattle Feed. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (70) |
|
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 45700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track
record. Even though the income as well as net profitability of the company has
seen a slight dip during 2012, the financial position appears to be sound and
Liquidity seems to be good. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of well qualified and experienced promoters and management,
the company can be considered 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: A |
|
Rating Explanation |
Adequate degree of safetu amd low credit risk |
|
Date |
08.04.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
08.04.2013 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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 / Head Office : |
Ambal Building, III Floor, P. B. No. 738, 727, Anna Salai, Chennai –
600006, Tamil Nadu, India |
|
Tel. No.: |
91-44-28520855 / 28297869 / 28297857 / 28297327 |
|
Fax No.: |
91-44-28522407 |
|
E-Mail : |
|
|
Website: |
|
|
|
|
|
Factory : |
Located at · Bulandshahe, Uttar Pradesh, India · Saladipura, Rajasthan, India |
|
|
|
|
Branch Office : |
Potash Bhawan, 10-B, Rajendra Park, Pusa Road, New Delhi –
110060, India |
|
|
|
|
Regional Office : |
· Ahmedabad · Bangalore · Bhopal · Bhubaneshwar · Chandigarh · Chennai · Guwahati · Jaipur · Kochi · Kolkata · Lucknow · Mumbai · Patna · Raipur · Secunderabad |
DIRECTORS
As on 03.09.2012
|
Name : |
Mr. Harbachan Singh Bawa |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
20.03.1931 |
|
Date of Appointment : |
30.09.1981 |
|
DIN No.: |
00244222 |
|
|
|
|
Name : |
Mr. Udai Shanker Awasthi |
|
Designation : |
Nominee director |
|
Address : |
IFFCO, Saket Place, |
|
Date of Birth/Age : |
12.07.1945 |
|
Qualification : |
Degree |
|
Date of Appointment : |
29.06.1993 |
|
DIN No.: |
00026019 |
|
|
|
|
Name : |
Mr. Balwinder Singh Nakai |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
05.12.1934 |
|
Date of Appointment : |
25.09.1993 |
|
DIN No.: |
00823528 |
|
|
|
|
Name : |
Mr. Parvinder Singh Gahlaut |
|
Designation : |
Managing director |
|
Address : |
C -9/9156, Vasant Kunj, |
|
Date of Birth/Age : |
27.07.1947 |
|
Qualification : |
Degree |
|
Date of Appointment : |
29.09.1997 |
|
DIN No.: |
00049401 |
|
|
|
|
Name : |
Mr. Devinder Kumar |
|
Designation : |
Nominee director |
|
Address : |
Flat No.512, Green Heavens, Sail CGHS Limited, Plot No.35, Sector – 4,
Dwarka Phase – I, |
|
Date of Birth/Age : |
03.07.1953 |
|
Date of Appointment : |
09.10.2001 |
|
DIN No.: |
00085467 |
|
|
|
|
Name : |
Mr. Nataverlal Pitamberdas Patel |
|
Designation : |
Nominee director |
|
Address : |
17/8, Virnagar Society, |
|
Date of Birth/Age : |
28.07.1936 |
|
Date of Appointment : |
24.08.2007 |
|
DIN No.: |
00008225 |
|
|
|
|
Name : |
Mr. Chandra Bhushan Paliwal |
|
Designation : |
Nominee director |
|
Date of Appointment : |
13.01.2012 |
|
Qualification : |
Degree |
|
DIN No.: |
05250565 |
|
|
|
|
Name : |
Mr. Jarnail Singh |
|
Designation : |
Nominee director |
|
Address : |
Punjab Markfed House, Wctor 35-B, Chandigarh-160022, Punjab, India |
|
Date of Birth/Age : |
15.03.1944 |
|
Date of Appointment : |
08.08.2011 |
|
DIN No.: |
01310871 |
|
|
|
|
Name : |
Mr. Ashok Barnwal |
|
Designation : |
Nominee director |
|
Date of Appointment : |
22.06.2012 |
|
DIN No.: |
01279477 |
|
|
|
|
Name : |
Mr. Atanu Chakraborty |
|
Designation : |
Nominee director |
|
Address : |
MD’s Bunglow, Fertilisernagar, Township, P O Fertilisernager,
Vadodara-391750, Gujarat, India |
|
Date of Birth/Age : |
05.04.1980 |
|
Date of Appointment : |
08.08.2011 |
|
DIN No.: |
01469375 |
|
|
|
|
Name : |
Mr. Satish Chandra |
|
Designation : |
Director |
|
Address : |
D-1/98, Satya Marg, New Delhi, India |
|
Date of Birth/Age : |
20.11.1961 |
|
Date of Appointment : |
13.02.2012 |
|
DIN No.: |
01970013 |
|
|
|
|
Name : |
Mr. Prem Chandra Munshi |
|
Designation : |
Nominee director |
|
Address : |
106, Aarya Vikash Complex, Budh Marg, Bihar-800001, Uttar Pradesh,
India |
|
Date of Birth/Age : |
17.01.1962 |
|
Date of Appointment : |
08.08.2011 |
|
DIN No.: |
03597933 |
|
|
|
|
Name : |
Mr. Raman Govind Rajan |
|
Designation : |
Nominee Director |
|
Address : |
Bunglow No.4, Type VI, RCF Colony, Chembur, Mumbai-400074,
Maharashtra, India |
|
Date of Birth/Age : |
26.09.1957 |
|
Date of Appointment : |
03.09.2012 |
|
DIN No.: |
01253189 |
KEY EXECUTIVES
|
Name : |
Rajesh Kumar Sadangi |
|
Designation : |
Secretary |
|
Address : |
3/5, |
|
Date of Birth/Age : |
01.07.1976 |
|
Date of Appointment : |
01.08.2009 |
|
PAN No.: |
ATNPK3444J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 03.09.2012
Note: Shareholding detail file attached
As on 03.09.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Bodies corporate |
28.48 |
|
Other top fifty shareholders |
71.52 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Trader of Fertilisers and also manufacturer of Cattle Feed. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
· State Bank of India, Corporate Accounts Branch, 3rd Floor, Sigappi Achi, Building, Rukmini Lakshmipathi Road, Egmore, Chennai - 600008, Tamil Nadu, India · State Bank of Hyderabad · State Bank of Patiala · Canara Bank · Bank of Baroda · Punjab National Bank · Axis Bank · IDBI Bank Limited · HDFC Bank Limited · Central Bank of India · Vijaya Bank · Allahabad Bank |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Chennai, Tamilnadu, India |
|
PAN No.: |
AACFD3771D |
|
|
|
|
Subsidiary : |
· Goldline Milkfood Limited CIN No.: U15203HR1992PLC034058 · IPL Sugar and Allied Industries Limited · IPL Gujarat Port Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs. 10 each |
Rs.500.000 millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16568200 |
Equity Shares |
Rs. 10/- each |
Rs.165.682
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14298600 |
Equity Shares |
Rs. 10/- each |
Rs.142.986
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
142.986 |
142.986 |
|
(b) Reserves & Surplus |
|
11413.943 |
8214.680 |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) Long-term borrowings |
|
499.700 |
1166.500 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term
liabilities |
|
6.426 |
0.000 |
|
(d) long-term
provisions |
|
2.246 |
2.101 |
|
|
|
|
|
|
(4)
Current liabilities |
|
|
|
|
(a) Short
term borrowings |
|
65344.602 |
28377.006 |
|
(b) Trade
payables |
|
41661.343 |
26280.786 |
|
(c) Other
current liabilities |
|
8891.292 |
8693.486 |
|
(d) Short-term
provisions |
|
160.674 |
2196.009 |
|
TOTAL |
|
128123.212 |
75073.554 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
2915.599 |
2203.697 |
|
(ii)
Intangible Assets |
|
63.182 |
62.044 |
|
(iii)
Capital work-in-progress |
|
78.304 |
76.256 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
209.077 |
171.977 |
|
(c) Deferred tax assets (net) |
|
202.864 |
405.113 |
|
(d) Long-term Loan and Advances |
|
339.316 |
75.809 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
3273.345 |
12516.179 |
|
(b)
Inventories |
|
30121.557 |
15681.863 |
|
(c) Trade
receivables |
|
61811.466 |
22443.473 |
|
(d) Cash
and cash equivalents |
|
25440.104 |
20070.655 |
|
(e)
Short-term loans and advances |
|
3517.746 |
1139.605 |
|
(f) Other
current assets |
|
150.652 |
226.883 |
|
TOTAL |
|
128123.212 |
75073.554 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
142.986 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
4497.540 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
4640.526 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
308.260 |
|
|
2] Unsecured Loans |
|
|
37418.874 |
|
|
TOTAL BORROWING |
|
|
37727.134 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
42367.660 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
917.025 |
|
|
Capital work-in-progress |
|
|
350.132 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
45844.714 |
|
|
DEFERREX TAX ASSETS |
|
|
170.996 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
8228.341
|
|
|
Sundry Debtors |
|
|
25841.610
|
|
|
Cash & Bank Balances |
|
|
4278.365
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
1015.813
|
|
Total
Current Assets |
|
|
39364.129
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
37357.091
|
|
|
Other Current Liabilities |
|
|
6611.489
|
|
|
Provisions |
|
|
310.756
|
|
Total
Current Liabilities |
|
|
44279.336
|
|
|
Net Current Assets |
|
|
(4915.207)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
42367.660 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
257730.195 |
204992.331 |
170038.079 |
|
|
|
Other Income |
2117.811 |
2394.565 |
2692.891 |
|
|
|
TOTAL (A) |
259848.006 |
207386.896 |
172730.970 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3557.997 |
|
|
|
|
|
Purchases of stock-in-trade |
237161.787 |
183920.448 |
|
|
|
|
Employee benefit expense |
535.858 |
1231.029 |
|
|
|
|
Expenditure on production, transportation and other expenditure pertaining to E&P activities |
15468.772 |
13012.939 |
|
|
|
|
Other expenses |
8171.672 |
2227.992 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(14472.347) |
(7278.884) |
|
|
|
|
TOTAL (B) |
250423.739 |
195746.096 |
168006.884 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9424.267 |
11640.800 |
4724.086 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5208.363 |
4934.399 |
1880.008 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4215.904 |
6706.401 |
2844.078 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
210.856 |
92.942 |
39.264 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4005.048 |
6613.459 |
2804.814 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
762.250 |
2855.882 |
965.599 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3242.798 |
3757.577 |
1839.215 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5312.419 |
2196.388 |
990.520 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
600.000 |
600.000 |
600.000 |
|
|
|
Dividend |
35.747 |
35.747 |
28.597 |
|
|
|
Tax on Dividend |
5.799 |
5.799 |
4.750 |
|
|
BALANCE CARRIED
TO THE B/S |
7913.671 |
5312.419 |
2196.388 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
5496.158 |
1281.186 |
45.003 |
|
|
TOTAL EARNINGS |
5496.158 |
6777.344 |
45.003 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
NA |
134707.279 |
|
|
TOTAL IMPORTS |
NA |
NA |
134707.279 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
226.79 |
262.79 |
128.63 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.25
|
1.81 |
1.06
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.55
|
3.23 |
1.65
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.14
|
8.90 |
6.96
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.35
|
0.79 |
0.60
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
5.70
|
3.53 |
8.13
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.07
|
0.96 |
0.89
|
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 |
No |
|
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
GENERAL
The environment for international trade in fertilizers was not very conducive during the year 2011-12. There was substantial increase in the import prices of Potassic and Phosphatic Fertilisers to start with during the year. Then they had an abnormal and unprecedented volatility in the value of Indian rupee. The dollar rupee parity which was USD 1 = Rs.44.65s on 1.4.2011 touched the lowest level of USD 1 = Rs.54.30 on 15.12.2011and then the rupee bounced back to 1 USD = Rs.50.88 as on 31.3.2012. Although MRPs of both phosphatic and potassic fertilizers
were revised more than once during the year but there was always a time lag resulting in substantial loss to the Company. In fact, concerned about the likely adverse impact of frequent changes on small and marginal farmers, the Board advised the Management to keep the MRPs unchanged in the last four months of the year even if it resulted in erosion of the profitability which was subsequently quantified to the tune of Rs.2000.000 millions (approx.)
The performance of monsoon during 2011-12 was by and large satisfactory. Though during the South-west monsoon, the distribution of rainfall was very erratic over time and space which is evident from the fact that out of 603 districts in the country for which only 144 districts received excess, 315 districts received normal rainfall and the remaining 144 districts received deficient/scanty rainfall.
The forecast for 2012-13 by Indian Meteorological Authorities is for a normal monsoon though US and Japanese experts have predicted a weaker than normal monsoon.
FINANCIAL RESULTS FOR
THE YEAR 2011-12
The Company has maintained its top line growth in the Fiscal Year 2011-12 with increased turnover of Rs.255050.000 millions as against Rs.20447.00 crores during 2010-11. The increase in turnover is mainly attributed to steep increase in MRP consequent to increase in the international price of fertilisers. There has been marginal increase of 0.11 million metric tonnes of the volume sale of all products during current year as compared to previous year. As in the past, key drivers for the growth were MOP and DAP in sustaining the growth of the company.
The Company has earned a Pre-tax Profit of Rs. 4005.000 millions and Net Profit Rs.3242.800 millions as compared to Rs.6613.500 millions and Rs.3757.600 millions during the previous year respectively. The decrease in profitability is on account of substantial depreciation of the rupee in the second half of the year and not reworking the MRP to compensate for this depreciation, in spite of increase in volume sales, better sales realization and lower interest costs.
EXTENSION AND PROMOTION ACTIVITIES
The Companys sustained effort is to provide the farming community quality fertilisers in time and in adequate quantity. The Company aims to promote balanced application of fertilisers and to emphasise the significance of the role of Potash in balanced fertiliser application. This is achieved through intensified field activities such as conducting A.V.unit programmes, field demonstrations, farmers meeting and crop seminars. Number of publicity materials on various crops in English and regional languages were distributed to the farmers. The Company carried out 222 field demonstrations covering all the states of India. Further, 95 Sales Campaigns, 160 farmers meetings and 21 crop seminars were also organized in various states. The Company had spent about Rs. 27.900 millions in achieving this and has made adequate provisions made in the budget for this activity.
PROSPECTS FOR 2012-13
The Year 2012-13 has not started on a very promising note as in spite of reduction in the global prices of DAP and unchanged MOP prices, the MRPs of these products had to be substantially increased by the Industry because of reduction in the subsidy by Government of India and a further weakening of Indian rupee which touched as low as 1 USD = Rs.56.41 in the first quarter of the year. As MRP of DAP has gone up from Rs.18200/- per MT to Rs.24000/- per MT and Potash having gone up from Rs.11300/- to Rs.16800/- per MT, the consumer resistance seems inevitable. There is a widespread feeling that consumption of Potash, which is the main product of the Company, will take a further hit over 29% decline seen during 2011/12 while Phosphatic fertilizer consumption could drop by 10/15% if not more. Of course, these estimates are subject to normal monsoon and if the monsoon turns out to be lower than normal, the consumption of all fertilizers could take a beating with adverse
repercussions on the agricultural economy of the country. Under these circumstances, a drop in the volume sales as well as turnover of the Company is on the cards. As in this adverse market, sales will have to be made on credit, the company will have to borrow more at higher rates of interest which will bring profitability under severe pressure.
However, improved results can be expected in Dairy and Cattle Feed Division with better capacity utilization and lower incidence of depreciation.
In case of Sugar Division, in spite of measures like cost reduction and all round improvement in performance, the desired turn around could not be brought about as U.P. Government pegged the Procurement Price of Sugarcane at the highest level in the country for political reasons. But small decontrol measures have already been taken by opening up of exports and it is hoped that sugar and molasses prices will improve in 2nd and 3rd quarter of the year.
The work on two Joint Venture Projects namely Green Field Port Facility on Gujarat Coast and Integrated Sugar Complex in Bihar has not made the desired progress. The Gujarat Government which had promised to expedite required sanctions etc., has not taken any action on their pending application for which they have been keeping the Board informed. A Litigation has stalled the progress in Bihar. But it is hoped that the stay order will be vacated by first week of July 2012 and work will resume in right earnest thereafter.
UNSECURED LOAN
|
Particulars |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
In Millions) |
|
Short-term Borrowing |
|
|
|
Rupee term loans from banks |
65344.425 |
28374.256 |
|
Total |
65344.425 |
28374.256 |
BANKERS CHARGES REPORT
AS PER REGISTRY
|
Corporate
identity number of the company |
U14219TN1955PLC000961 |
|
Name of the
company |
INDIAN POTASH
LIMITED |
|
Address of the
registered office or of the principal place of business in |
Ambal Building, III Floor, P. B. No. 738, 727, Anna Salai,
Chennai-600006, Tamilnadu, India E-mail: rajeshkumar@potindia.com
|
|
This form is for |
Modification of charge |
|
Charge identification (ID) number of the charge to be modified |
80011234 |
|
Type of charge |
Book debts Movable property (not being pledge) |
|
Particular of charge holder |
State Bank of India, Corporate Accounts Branch, 3rd Floor, Sigappi Achi, Building, Rukmini Lakshmipathi Road, Egmore, Chennai - 600008, Tamil Nadu, India E-mail: amt5.cagche@sbi.co.in |
|
Nature of
instrument creating charge |
1. Working
Capital Consortium Agreement 2. Joint Deed of Hypothecation |
|
Date of
instrument Creating the charge |
25.04.2012 |
|
Amount secured by
the charge |
Rs. 70000.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest As stipulated by Consortium
Member Bankers from time to time. Terms of Repayment As stipulated by
Consortium Member Bankers from time to time. Margin As stipulated by
Consortium Member Bankers from time to time. Extent and Operation of the charge First pari passu
charge over the current assets of the company |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
First Pari Passu
Charge on the whole of the Current Assets of the Company namely,Stocks of Raw
materials, Stocks in process, Semi-Finished goods and Finished goods of
Fertilizers and Book-Debts and Receivables both present and future |
|
Date of
instrument modifying the charge |
14.09.2011 |
|
Particulars of
the present modification |
The Total
consortium limits has been increased from Rs.52500.000 millions to
Rs.70000.000 millions. The facilities of Rs.2187.500 millions granted by
Central Bank of India were taken over by HDFC Bank. The Breakup of Individual
limits is given in the Working Capital Consortium Agreement. |
WEBSITE DETAILS
PRESS RELEASE
INDIAN POTASH STRIKES DEAL WITH BPC TO IMPORT MOP AT $427 A TONNE
New Delhi, Feb 6:
Indian Potash Ltd (IPL) has signed a contract with Belarusian Potash Company (BPC) to import 1 million tonnes of muriate of potash (MOP) at $427 a tonne in the current year. The pricing of the new deal is about 15 per cent lower than the previous contract signed at $490.
BPC, a joint venture distributor of Belaruskali and Uralkali, will begin MoP supplies to IPL from this month till January 2014. “The delivery price of potash fertiliser for India has been set at $427 per tonne on CFR basis. BPC deliveries under the contract with IPL will total 1 million tonnes,” BPC said in a statement.
”We strongly believe that the agreement is bringing us one step forward in restoring potash demand and will influence positively both the domestic and global potash market,” said Valery Ivanov, CEO of BPC.
India, which is dependent on imports to meet its potash demand, has imported about 5.5 million tonnes of the nutrient in the past 18 months.
IPL, the largest domestic importer of potash, expects to negotiate with other suppliers for another million in the current year, said Managing Director, P.S. Gehlaut. “We expect to bring the MoP shipments into the country from April,” he said.
Due to the huge unsold fertiliser stocks, especially of di-ammonium phosphate, urea and other complexes, the Government had recently told fertiliser makers not to bring in any more imported nutrients in the current financial year.
INDIAN POTASH TO DIVERSIFY INTO SUGAR AND PORTS
New Delhi, July 10:
The Rs 20,000-crore turnover Indian Potash Limited (IPL) has chalked out plans to diversify into sugar manufacturing with its recent acquisition of two sugar mills from the Uttar Pradesh Government, besides eyeing into port-related projects.
Talking to Business Line here, the IPL Managing Director, Dr P.S. Gahlaut, said that “the plus point is lot of land and the minus point is very bad work culture. So we are giving voluntary retirement scheme to people and to get good professionals and start investing. As the process of change or make-over is complete, we will install power plants.”
Investment in power
Stating that power from sugarcane base is by far the cheapest and cleanest, he said the company would invest at least Rs 700-800 crore in the next four years to set up power plants. It is also much cheaper than from giant power plants coming up all over that are based on imported coal, he said, adding that capital expenditure per megawatt is the lowest in cane-based power plants as opposed to coal-fired plants.
Dr Gahluat contends that the company handles fertiliser shipments of more than three million tonnes a year at all the major and minor ports with the core competence of IPL being its excellent stevedoring, clearing and forwarding arrangement at all the ports, matching infrastructure of port godowns, mobile bagging plants at the shores and inland storage facilities at more than 500 strategic locations.
The company plans to consolidate these inherent strengths by developing port-related projects in its ongoing expansion plans, he added. The efficient management of the entire gamut of fertiliser ship-handling and distribution to domestic retail outlets through cooperatives continue to be the mainstay of the organisation that completed six decades last year, he said.
Cattle feed
Dr Gahlaut said in recent years, IPL has diversified into high quality cattle feed and set up a production unit at Sikandarabad in Bulandshahar district of Uttar Pradesh and IPL cattle feeds had improved the milch capacity, besides facilitating healthier calving.
With farmers seeking to overcome the problems inherent in agriculture and increase their income with rearing of livestock, IPL has taken this opportunity to lend its support to them by procuring milk from the village cooperatives through its ultra modern processing at its own plants so that the final products passes a host of tests to be hygienic and wholesome.
He said the company's dairy divisions sell three lakh litres of milk a day under “dairy fresh' logo and its cattle feed plants of 250 to 300 tonnes were being scaled up.
Potash holiday
Asked about the ‘potash holiday' declared by the authorities this year in the face of unrelenting spurt in the price of potash prices, Dr Gahlaut conceded that “it is unfortunate as things stand today. We have no reserves on our own and the problem is that we deal with just two big players from overseas—Russia and Canada for our total import requirements”.
He said the price prevailing overseas has no relationship to cost and if the supplier just like that hikes it by $100, there would be a $100 increase in the price of muriate of potash (MOP). He also voiced concern that if the ‘potash holiday' continues, the company's budgeted turnover of Rs 25,000 crore for the current fiscal would suffer a knock.
MMTC tie-up
To a specific query about IPL's recent alliance with MMTC in selling the latter's gold jewellery products through its vast distribution networks across the rural India, Dr Gahlaut said that the logic was inescapable in that as fast moving consumer goods (FMCG) industry had identified rural demands for beauty parlours and gems, IPL conceived the idea of selling gold and medallions of purity to farmers who had always been taken for a ride by goldsmiths of dubious nature foisting their wares on gullible rural households.
The move would help farmers during times of difficulties too since the gold and medallion they acquire in good times could be disposed of without loss of value as the MMTC brands of jewellery and medallions were hall-marked and trusted, he said.
FIXED ASSETS
v
Tangible
Assets
· Land Freehold
· Land Leasehold
· Buildings
· Factory Building
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
·
Audio Visual Van and Equipment
v Intangible Assets
·
Computer software
· Leasehold Rights
·
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.58.93 |
|
|
1 |
Rs.91.81 |
|
Euro |
1 |
Rs.78.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
70 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.