MIRA INFORM REPORT

 

 

Report Date :

28.03.2013

 

IDENTIFICATION DETAILS

 

Name :

RALLIS INDIA LIMITED

 

 

Registered Office :

156/ 157, 15th Floor, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

23.08.1948

 

 

Com. Reg. No.:

11-014083

 

 

Capital Investment / Paid-up Capital :

Rs.194.471 millions

 

 

CIN No.:

[Company Identification No.]

L36992MH1948PLC014083

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR16455F/ BRDR01021G

 

 

PAN No.:

[Permanent Account No.]

AABCR2657N

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer, Exporter and Importer of Agro Chemicals, Pesticides, Insecticides, Herbicides, Acaricides, Rodenticides, Fungicides and Fertilizers.

 

 

No. of Employees :

857 (Approximately)

 

 

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 20000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of the ‘TATA GROUP’

 

It is a well established and a reputed company having a fine track record. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for business dealings at usual trade terms and conditions. 

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

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

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

AA: Long Term Rating

Rating Explanation

High degree of safety and very low credit risk

Date

28.02.2012

 

Rating Agency Name

CRISIL

Rating

A1+: Short Term Rating

Rating Explanation

Very Strong degree of safety and lowest credit risk

Date

28.02.2012

 

 

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/ Head Office :

156/ 157, 15th Floor, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-66652700/ 67761641 

Mobile No.:

91-9223316589 (Mr. D.C. Masharamai)

Fax No.:

91-22-66652827/ 66652847/ 66310963

E-Mail :

vijay.rallis@rallis.sprintrpg.ems.vsnl.net.in

vijay.rai@rallis.sprintrpg.ems.vsnl.net.in

legal.ho@rallis.co.in

address.legal.ho@rallis.co.in

investor_relations@rallis.co.in

Website :

http://www.rallis.co.in

Area :

5000 sq ft

Location :

Owned

 

 

Factory:

Rallis House, 21, Damodardas Sukhadvala Marg, Mumbai 400 001, Maharashtra, India 

 

 

Agrochemicals Plants :
  • GIDC Estate, Plot No. 3301, Ankleshwar - 393 002, District Bharuch, Gujarat, India
  • GIDC Estate, Plot No. 2808, Ankleshwar - 393 002, District Bharuch, Gujarat, India
  • GIDC Estate, Plot No. 3000, Ankleshwar – 393 002, District Bharuch, Gujarat, India
  • C 5/6, MIDC Industrial Area, Phase III, Shivani, Akola - 444 104, Maharashtra, India
  • Plot No. D-26, Lote Parsuram, MIDC, Near Hotel Vakratunda, Taluka Khed, District Ratnagiri - 415 722, Maharashtra, India
  • Plot No. Z/ 110, Dahej SEZ Part - II, P.O. Lakhigam, Taluka Vagra, District Bharuch 392 130, Gujarat, India 

 

 

Fine Chemical Plants  :
  • Sandynalla, Sholur Town Panchayat, P. O. Box No. 30, Ootacamund - 643 237, Tamil Nadu, India

 

  • A-14/A, Sipcot Industrial Complex, Cuddalore - 607 005, Tamil Nadu, India

 

 

Regional Offices :

Located at:

 

v  Ahmedabad

v  Guntur

v  Lucknow

v  Pune

 

 

Zonal Offices :

Located at:

 

v  Bangalore

v  Chandigarh

v  Kolkata

v  Secunderabad

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. R. Gopalakrishnan

Designation :

Chairman

Address :

Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

25.12.1945

Date of Appointment :

28.06.1999

Expertise in specific functional areas :

Mr. R. Gopalakrishnan was appointed as Executive Director – Exports in Hindustan Lever Limited, after 20 years’ experience with the Company. In 1991, he became Chairman, Unilever Arabia, based in Jeddah. He was later appointed as Managing Director of Brooke Bond Lipton and after its merger with Hindustan Lever, he was appointed Vice Chairman of Hindustan Lever Limited. He joined Tata Sons in September 1998 and is an Executive Director of Tata Sons Limited. He is also a Director on Board of several Tata Companies.

Qualifications :

 - B. Sc. In Physics from Calcutta University.

– Engineering from IIT, Kharagpur.

– Advanced Management Programme, Harvard Business School.

Directorship in other company :
  • Tata AutoComp Systems Limited, (Chairman)
  • Tata Chemicals Limited, (Vice Chairman)
  • Tata Sons Limited
  • Tata Motors Limited
  • Tata Power Company Limited
  • Tata Technologies Limited
  • ICI India Limited
  • Castrol India Limited
  • Advinus Therapeutics Private Limited, (Chairman)
  • ABP Private Limited
  • IMACID S. A., Morocco

 

 

Name :

Mr. Veeramani Shankar

Designation :

Managing Director and Chief Executive Office

Address :

156/157, 15th Floor, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra, India

Date of Birth/Age :

18.09.1956

Date of Appointment :

13.03.2007

 

Mr. V. Shankar joined the Company on 1st December, 2005 as Chief Operating

Officer and was appointed as Executive Director with effect from 13th March, 2007. Prior to joining the Company, he had worked with Tata Chemicals Limited as Chief Operating Officer, Phosphates Business. Prior to that, he was with Hindustan Lever Limited From 1986 to 2004. While in Hindustan Lever, he served in various capacities in the Commercial function and was also Head of the Seeds as well as Fertiliser businesses.

Qualification :

Chartered Accountant, Cost Accountant, Company Secretary and Law Graduate.

Directorship in other company :

Rallis Australasia Pty. Limited

 

 

Name :

Mr. B. D. Banerjee

Designation :

Director

Address :

J/ 503, Satellite Gardens Phase II, Film City Road, 261, General A.K. Vaidya Marg, Goregaon (East), Mumbai – 400 063, Maharashtra, India

Date of Birth/Age :

14.10.1941

Date of Appointment :

15.06.2004

Expertise in specific functional areas :

In a career spanning over 37 years in the Insurance Industry, Mr. B. D. Banerjee

Played an important role in the establishment, growth and consolidation of the non-life Insurance sector in India. He has served as the Chairman-cum- Managing Director of Oriental Insurance Company Limited and the National Insurance Company Limited. And as the Managing Director of General Insurance Corporation of India. He was also the Administrator of the Pune Stock Exchange and has also been the Insurance Ombudsman for Maharashtra and Goa.

Qualification :

Post Graduate with Honours in Philosophy from Presidency College, Calcutta University and Associate of the Insurance Institute of India.

 

 

Name :

Mr. Homi R. Khusrokhan

Designation :

Director

Address :

302, Daisylea, Off Mt. Pleasant Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India 

Date of Birth/Age :

15.12.1943

Qualification :

B.Com. (Hons.), Chartered Accountant and M.Sc (Econ.) from London School of Economics and Political Science.

Date of Appointment :

24.03.2003

 

 

Name :

Mr. E. A. Kshirsagar

Designation :

Director

Address :

19, Tarangini, Twin Towers Road, Prabhadevi, Mumbai – 400 025, Maharashtra, India

 

 

Name :

Mr. Prakash R. Rastogi

Designation :

Director

Address :

2, Blooming Heights, 4, Pali Hills, Bandra, Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

31.07.1944

Qualification :

M.Sc. Tech from Bombay University and PG Diploma in Business Management.

Date of Appointment :

13.03.2007

 

 

Name :

Mr. Bharat Vasani

Designation :

Director

Address :

Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

24.08.1958

Qualification :

B. Com., L.L.B. and Member of the Institute of Company Secretaries of India.

Date of Appointment :

13.03.2007

 

 

Name :

Dr. K. P. Prabhakaran Nair

Designation :

Additional Director

Date of Birth/Age :

04.10.1938

Date of Appointment :

01.09.2008

Expertise in specific functional areas :

Dr. K. P. Prabhakaran Nair has over three decades of research, teaching and developmental experience in Europe, Africa and Asia. He has held a number of positions of prestige, the most important being Professor, National Science Foundation, The Royal Society, Belgium; Professor and Head, The University Center, Cameroon; Senior Professor, University of Fort Hare, South Africa and Distinguished Visiting Scientist, Indian Council of Agricultural Research. Dr. Nair has been acknowledged for developing the revolutionary soil management technique, which is now globally known as “The Nutrient Buffer Power Concept”. He is the world’s only agricultural scientist to have been invited to write chapters four times to “Advances In Agronomy”, the magnum opus of agricultural science.

Qualification :

B.Sc. in Agriculture and M.Sc. in Agronomy from the Tamil Nadu Agricultural University, Coimbatore. Ph.D. from Indian Agricultural Research Institute, New Delhi. Post-Doctoral Research from State University of Gent, Belgium.

 

 

Name :

Dr. Venkatrao S. Sohoni

Designation :

Director

Date of Birth/Age :

28.05.1942

Qualification :

B. Tech. (Hons.) IIT (Kharagpur) Ph.D. IIT Mumbai

Date of Appointment :

22.04.2010

 

 

Name :

Mr. Y. S. P Thorat

Designation :

Director

 

 

Name :

Dr. Yoginder K. Alagh

Designation :

Director 

Address :

Institute of Rural Management of India, Post Box No.60, Anand – 388 001, Gujarat, India

Date of Birth/Age :

14.02.1939

Qualification :

Ph.D. in Economics from the University of Pennsylvania, USA

Date of Appointment :

22.04.2010

 

 

Name :

Mr. R. Mukundan

Designation :

Director

Address :

Bombay House, 24, Homi Mody Street, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

19.09.1966

Qualification :

BE (Electrical Engineering) From IIT, Roorkee and MBA From FMS, Delhi University. Also attended the Advanced Management Programme at Harvard Business School in 2008.

Date of Appointment :

03.12.2009

 

 

KEY EXECUTIVES

 

Name :

Mr. K. R. Venkatadri

Designation :

Chief Operating Officer – Agriculture Business

 

 

Name :

Mr. P. S. Meherhomji

Designation :

Company Secretary

 

 

Name :

Mr. Ashish Mehta

Designation :

Financial Controller

 

 

Name :

Mr. K. Amuthan

Designation :

Vice President – Human Resources and Business Excellence

 

 

Name :

Mr. Ravindra  R. Joshi

Designation :

Vice President – Manufacturing

 

 

Name :

Mr. Subhash R. Kadam

Designation :

Vice President - Research and Development

 

 

Name :

Mr. K. B. Belliappa

Designation :

Vice President - Planning and Logistics

 

 

Name :

Mr. C. M. Singh

Designation :

Vice President - Domestic Sales

 

 

Name :

Mr. D. G. Shetty

Designation :

Head – International Business

 

 

Name :

Mr. P. V. Reddy

Designation :

Vice President - Marketing and CRM Services

 

 

Name :

Mr. Umesh K. Mehendale

Designation :

Vice President - Agriculture Services

 

 

Name :

Mr. Coomie N. Kapadia Head

Designation :

Internal Audit

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2012

 

(A) Shareholding of Promoter and Promoter Group

Number of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

97416610

50.09

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

97416610

50.09

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

 

 

Total shareholding of Promoter and Promoter Group (A)

97416610

50.09

(B) Public Shareholding

 

 

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

 

 

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

11078716

5.70

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

130499

0.07

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

801150

0.41

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

5300599

2.73

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

21008343

10.80

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

38319307

19.70

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

 

 

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

12026568

6.18

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

 

 

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

20641491

10.61

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

26024154

13.38

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

40760

0.02

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

3900

0.00

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

36860

0.02

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

58732973

30.20

Total Public shareholding (B)

97052280

49.91

Total (A)+(B)

194468890

100.00

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

0

0.00

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

0

0.00

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

0

0.00

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

0

0.00

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

194468890

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Agro Chemicals, Pesticides, Insecticides, Herbicides, Acaricides, Rodenticides, Fungicides and Fertilizers.

 

 

Products :

Item Code No.

 

Product Description

380820.09

Hexaconazole

380810.29

Acephate

380810.16

Dimethoate Technical

380820-90

Metconazole

 

PRODUCTION STATUS (31.03.2012)

 

Particulars

Unit

Installed Capacity

Actual Production

PESTICIDES:

 

 

 

Pesticides Solids

Tonnes

15225

11266

Tonnes

12720

10921

Liquids

KL

13500

9456

KL

16500

11601

Plant Growth Nutrients

Tonnes

N.A.

1542

Tonnes

N.A.

1824

 

Footnotes:

 

(i) Licensed Capacity – Delicensed vide Gazette Notification No. S.O.477 (E) dated 25.07.1991.

(ii) Figures in italics are in respect of the previous year.

(iii) Production figures are net of captive consumption and exclude by-products.

(iv) Production includes quantities manufactured at sub-contracting plants. Installed capacity represents capacity Installed at the Company’s facilities.

(v) N.A. = Not Applicable.

 

 

GENERAL INFORMATION

 

No. of Employees :

857 (Approximately)

 

 

Bankers :
  • State Bank of India
  • Citibank N.A.
  • Corporation Bank
  • BNP Paribas
  • IDBI Bank Limited
  • Axis Bank Limited
  • ICICI Bank Limited
  • HDFC Bank Limited
  • Oriental Bank of Commerce
  • Kotak Mahindra Bank Limited

 

 

Facilities :

SECURED LOAN

As on

31.03.2012

(Rs. in

Millions)

As on

31.03.2011

(Rs. in

Millions)

Debentures (see note a, b and c below)

750.000

750.000

Loans repayable on demand from banks*

312.204

97.152

 

 

 

Total

1062.204

847.152

 

NOTE:

 

  • 750 (Previous Year: 750) 9.05% Secured Redeemable Non-Convertible Debentures (2010-11 Series 1) having a face value of Rs. 1.000 Million each redeemable at par on 29th October, 2013.
  • These Non Convertible Debentures are secured by a first pari-passu mortgage over factory building and certain plant and machinery of Ankleshwar and Lote units.
  • The Company can repurchase some or all of the Debentures at any time prior to date of redemption. The Company has the right to re-issue debentures bought back subject to provisions of The Companies Act, 1956.

 

 

 

 

Banking Relations :

--

 

 

 

 

Auditors :

 

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

 

 

 

 

Solicitors and Advocates:

Crawford Bayley and Company

 

 

 

 

Holding Company :

Tata Chemicals Limited

 

 

 

 

Subsidiary Companies :
  • Rallis Chemistry Exports Limited
  • Metahelix Life Sciences Limited w.e.f 30th October, 2010
  • Dhaanya Seeds Limited w.e.f 30th October, 2010
  • Rallis Australasia Pty Limited.(Liquidated on 25th January, 2012)

 

 

 

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

150000000

Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.1500.000 millions

 

Total

 

Rs.2000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

19446889

Equity Shares 

Rs.10/- each

Rs. 194.469 millions

 

Add: Amount paid-up on forfeited shares

 

Rs.0.002 million

 

Total

 

Rs. 194.471 millions

 

 

a. Reconciliation of shares outstanding at the beginning and at the end of the reporting period:

 

 

Number of Shares

Rs in Millions

At the beginning of the year

19,446,889

194.471

Issue of Bonus Shares

-

-

Sub-division

175,022,001

-

Outstanding at the end of the period

194,468,890

194.471

 

Pursuant to the Shareholders’ approval at the Company’s Annual General Meeting held on 30th June, 2011, the

Company’s Equity Shares of face value of Rs. 10 each were sub-divided into ten Equity Shares of face value of Rs. 1 each with effect from 18th July, 2011.

 

b. The Equity Shares of the Company have voting rights and are subject to the preferential rights as prescribed under law or those of the preference shareholders, if any. The Equity Shares are also subject to restrictions as prescribed under the Companies Act, 1956.

 

c. Shares held by Holding /Ultimate Holding Company and /or its subsidiaries /associates:

 

Out of total equity shares issued by the Company, shares held by its holding company, ultimate holding company and its subsidiaries/associates are as below:

 

Name of Promoter

 

Particulars

Number

Amount

Tata Chemicals Limited                     

(Holding / Ultimate Holding Company)

 

97341610

 

97.342

     

*Of the above equity shares 980,000 equity shares were issued by the Company on a preferential basis on

9th November, 2009. Consequently, TCL became the holding company with effect from 9th November, 2009.

 

d) Details of shareholders holding more than 5% shares in the Company:

 

Name of Shareholder

Number of Shares

% Holding

Tata Chemicals Limited

97341610

50.06

Rakesh Jhunjhunwala

12416820

6.38

 

 

e. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceeding the reporting date:

 

 

2011-12

2010-11

2009-10

2008-09

2007-08

Equity Shares :

 

 

 

 

 

Bonus Shares issued *

-

6,482,296

-

-

-

Preference Shares :

 

 

 

 

 

7.50% Cumulative Reedeemable

Preference Shares of Rs. 10 each Redeemed

-

-

88,000,000

-

-

 

* 6,482,296 shares of Rs. 10 each were issued as Bonus Shares by way of capitalisation of Rs. 64.823 Millions out of Capital Redemption Reserve.

 

f. As per of the Company, no calls remain unpaid by the directors and officers of the Company as on 31st

March, 2012.

 

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

194.471

194.471

129.648

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

5342.033

4839.080

4098.273

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

5536.504

5033.551

4227.921

LOAN FUNDS

 

 

 

1] Secured Loans

1062.204

847.152

16.118

2] Unsecured Loans

71.316

60.342

65.007

TOTAL BORROWING

1133.520

907.494

81.125

DEFERRED TAX LIABILITIES

130.846

32.298

0.000

 

 

 

 

TOTAL

6800.870

5973.343

4309.046

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3675.130

2273.522

1527.468

Capital work-in-progress

349.211

1402.573

1120.291

 

 

 

 

INVESTMENT

1809.410

1519.302

1402.832

DEFERREX TAX ASSETS

0.000

0.000

53.477

OTHER NON CURRENT ASSETS
2.090

7.439
0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2241.615

2070.311
1482.485

 

Sundry Debtors
820.928

915.550
755.055

 

Cash & Bank Balances
105.488

112.674
111.727

 

Other Current Assets
5.959

5.401
14.591

 

Loans & Advances
1280.603

1302.389
881.123

Total Current Assets
4454.593

4406.325

3244.981

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

2386.632

2577.054

2058.076

 

Other Current Liabilities
499.385

486.553
536.476

 

Provisions
603.547

572.211
445.451

Total Current Liabilities
3489.564

3635.818

3040.003

Net Current Assets
965.029

770.507
204.978

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

6800.870

5973.343

4309.046

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

11812.500

10672.599

8751.336

 

 

Other Income

74.985

135.531

288.194

 

 

TOTAL                                     (A)

11887.485

10808.130

9039.530

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials Consumed

6206.321

5780.496

4515.784

 

 

Purchase of Finished Goods

921.273

896.950

618.103

 

 

(Increase)/Decrease in Closing Stock of Finished Goods and Work in Process

(38.270)

(395.038)

(100.014)

 

 

Employee Benefits Expenses

781.126

695.831

0.000

 

 

Operating Expenses

1969.427

1791.989

2273.895

 

 

Cessation Cost

171.911

0.000

0.000

 

 

TOTAL                                     (B)

10011.788

8770.228

7307.768

 

 

 

 

 

Less

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

1875.697

2037.902

1731.762

 

 

 

 

 

Less

FINANCE COST                                   

103.715

30.551

26.716

 

 

 

 

 

 

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

1771.982

2007.351

1705.046

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

271.108

171.607

183.103

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

1500.874

1835.744

1521.943

 

 

 

 

 

Less

TAX                                                                  (H)

486.978

573.617

511.550

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1013.896

1262.127

1010.393

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2130.079

1571.852

1832.081

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Debenture Redemption Reserve

125.000

125.000

880.000

 

 

Preference Dividend

0.000

0.000

22.422

 

 

Distribution Tax on Preference Dividend

0.000

0.000

3.811

 

 

Interim Dividend

194.500

175.000

95.877

 

 

Distribution Tax on Interim Dividend

31.500

29.100

16.294

 

 

Proposed Equity Dividend

233.400

213.900

129.646

 

 

Income  Tax on Equity Dividend

37.900

34.700

21.533

 

 

Transfer to/(from):

Capital General Reserve

101.400

126.200

101.039

 

BALANCE CARRIED TO THE B/S

2420.275

2130.079

1571.852

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods on F.O.B. Basis

3813.973

2551.061

1904.084

 

 

Royalty Income

20.269

0.000

0.000

 

 

Surplus on Liquidation of Subsidiary

10.769

0.000

0.000

 

 

Commission

0.000

0.000

3.050

 

 

Freight, Insurance and Other Matters

28.600

35.698

17.486

 

TOTAL EARNINGS

3873.611

2586.759

1924.620

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3548.113

2773.030

2242.790

 

 

Components, stores and spare parts

3.519

8.504

0.276

 

 

Capital Goods

11.576

18.815

6.426

 

TOTAL IMPORTS

3563.208

2800.349

2249.492

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.21

6.49

79.57

 

 

QUARTERLY  RESULTS

 

Particular

 

30.06.2012

30.09.2012

Type

 

1st Quarter

2nd Quarter

Audited / UnAudited

 

UnAudited

UnAudited

Net Sales

 

2697.500

4657.500

Total Expenditure

 

2467.100

3658.500

PBIDT (Excl OI)

 

230.400

999.000

Other Income

 

93.500

41.100

Operating Profit

 

323.900

1040.100

Interest

 

39.400

39.100

Exceptional Items

 

000

000

PBDT

 

284.500

1001.000

Depreciation

 

68.100

70.900

Profit Before Tax

 

216.400

930.100

Tax

 

62.000

273.400

Provisions and contingencies

 

000

000

Profit After Tax

 

154.400

656.700

Extraordinary Items

 

000

000

Prior Period Expenses

 

000

000

Other Adjustments

 

000

000

Net Profit

 

154.400

656.700

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
8.53

11.68
11.18

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
12.71

17.20
17.39

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
18.46

27.48
31.89

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.27

0.36
0.36

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.83

0.90
0.74

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
1.28

1.21
1.07

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOAN

As on

31.03.2012

(Rs. in

Millions)

As on

31.03.2011

(Rs. in

Millions)

Deferred payment liabilities

i. Sales Tax Deferral Scheme (see note d below)

ii. Council of Scientific and Industrial Research loan

 

62.768

8.548

 

50.400

9.942

Total

71.316

60.342

 

Note:

D):

Particulars

Repayment Schedule

As at 31st March 2012

As at 31st March 2011

Sales Tax Deferral Scheme - Akola

Varied Annual Installments from 2013-14 to 2015-16

 

13.179

 

19.703

Sales Tax Deferral Scheme - Lote*

Varied Annual Installments

from 2018-19 to 2026-27

 

49.589

 

30.697

Council of Scientific and Industrial Research loan

Varied Annual Installments

Research loan from 2013-14 to 2017-18

 

8.548

 

9.942

 

* Loan disclosed above is considered as per SICOM scheme, although the matter is in dispute with the Sales Tax Tribunal.

 

 

COMPANY PERFORMANCE

 

The Company’s profit before tax on a consolidated basis decreased to Rs. 1493.900 Millions during the year, as compared to Rs. 1844.700 Millions in the previous year, a decrease of 19% over the last year. Exceptional items such as cessation costs of Rs.171.900 Millions and losses relating to foreign exchange of Rs.96.600 Millions impacted the profits. The Company earned a net profit of Rs.991.800 Millions, as against a net profit of Rs.1260.400 Millions in the previous year on a consolidated basis.

 

OPERATIONS

 

CROP PROTECTION

 

The Second Advance Estimates has projected a marginal increase in the agricultural production, driven by a reasonable growth of cereals and cotton. Pulses and coarse cereals have shown a slight downtrend in production. The total rainfall during the period June to September at a national level exceeded 2% compared to normal, though the geographical spread and distribution was uneven. In the Rabi season, there was a deficit of 48%, which affected crop acreages, pest/ disease incidence and had an adverse impact on yield in crops such as paddy, chili, black gram and red gram. The States of Andhra Pradesh, particularly Rayalseema and Maharashtra reported more than 40% deficit in rainfall.

 

The Domestic Formulation Business registered a modest growth of 2% during the year over the previous year due to seasonal aberrations in crops like paddy and pulses. The industry is estimated to have recorded a decrease during the year. Aggressive planning and implementation of sales and promotion on paddy, cotton, pulses, sugarcane and fruits and vegetables, taking into account on-ground realities was a key to success. EAGLE (Expansion and Aggressive Growth through Leadership and Excellence) roll out across pan India has helped the Company in opportunity identification, drawing actionable insights and achievement of aggressive growth targets at crop, pest and molecule level for each territory. This resulted in significant increase in volumes for their key products such as Tata Mida, Manik, Asataf, Ergon, Blitox, Tata Panida, Atrataf, Tata Metri and Taarak. The Company has completely discontinued the sales of Red triangle (Extremely toxic) products, which had in the past contributed to 10% of the revenues.

 

Their customer relationship building activities, branded under the umbrella of Rallis Kisan Kutumba (RKK) moved into the next orbit with successful introduction of key initiatives such as Samruddh Krishi, expansion of MoPu (grow More Pulses), State partnership, Prerna and others. These initiatives, along with customer centric promotional activities and product portfolio current with the market needs, has helped farmers to a great extent in protecting their crops effectively, improving quality and yield of produce and ultimately in improving their standard of living. The RKK today directly services over seven lakh farmers.

 

The International Business Division registered an increase of 48% in sales, as compared to 2010-11. The increase in sales was due to rising demand for crop commodities and price improvement in wheat and cotton. International Business comprised 33% of the total revenues of the Company. This is in line with their APOLLO aspirations as part of their Long Term Strategy. While the rupee depreciation translated into higher revenue growth, there was also a considerable volume growth in key manufactured products exported to Latin America and USA under contract manufacturing.

 

The Domestic Institutional Business continued with its sales of crop protection and seed treatment chemicals and household pesticide products to major customers during the year. In seed treatment chemicals, the Company consolidated its position and there are plans for significant growth in this segment.

 

SEEDS AND PLANT GROWTH NUTRIENTS

 

After acquiring a majority stake in Metahelix Life Sciences, a research-led Seeds Company in December 2010, this year the Company focused its efforts on establishing seed brands in various segments. During the year, the Company has launched ten new seed hybrids in its portfolio and extensive field activities were conducted to establish these new brands.

 

As a move towards sustainable agriculture, the Company is increasing its focus on greener and cleaner products. Launch of Tata Bahaar, a 100% organic growth promoter, is a move in that direction. Ralligold, a Plant Growth Nutrient, which partially reduces fertilizers consumption by enabling crops to better utilize the applied phosphorus, will not only help the famer increase his income, but will also help in arresting soil deterioration due to imbalanced use of chemical fertilizers.

 

ACQUISITION OF ORGANIC COMPOST BUSINESS

 

Subsequent to the year, the Board has approved the acquisition of a majority equity stake in Zero Waste Agro Organics Private Limited (ZWAOPL), a Maharashtra based company, and manufacturing scientifically prepared organic compost. The Company will also have exclusive sales and marketing arrangements with ZWAOPL for domestic and international markets.

 

With this acquisition, the product portfolio of the Company will be strengthened with scientifically prepared organic compost rich in nutrients and organic carbon, derived out of wastes from sugar industry, to improve deteriorating soil health and drive agriculture productivity. The technology supports sustainable agriculture and will help farmers in addressing the challenge of food security.

 

ADDITIONAL MANUFACTURING FACILITY

 

During the year, the Company has successfully commissioned and started commercial production at its additional

Manufacturing facility at the PCPIR (Petroleum, Chemicals and Petrochemical Investment Region), Dahej in Gujarat. The Dahej plant is a multi-purpose technical manufacturing facility for a number of crop protection products. This has enhanced the Company’s ability to handle different type of chemistries, leading to an increase in the potential to attract contract manufacturing from suitable alliance partners.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS
 
INDUSTRY STRUCTURE AND DEVELOPMENTS

 

Globally, the crop protection industry had a good year in 2011. The market grew by 17% to USD 44.92 Billion. The factors which aided growth of the industry included a significant improvement in crop commodity prices in comparison to 2010, resulting into an overall higher demand and realisation.

 

Most of the global corporations registered a healthy growth in their sales during the year. The regions which registered healthy growth included Latin America, Asia and Europe. Africa and NAFTA regions witnessed a flat growth. The global planted area of most major crops increased, with the notable exception of wheat. The global cotton area rose significantly, due to high demand and depleted stocks.

 

The Indian Crop Protection industry is estimated to have declined in the year 2011-12. The year started on a good note, but the season turned adverse from the middle of the year. The Kharif season was delayed by around 20 days in western, central and the south central part of India. Cotton and Paddy sowing were severely impacted in these areas leading to change in the usage pattern of the crop protection molecules. Paddy in Andhra Pradesh was impacted by crop holiday by the farmers. Rabi was characterized by low pest and disease occurrence in key crops, especially paddy and pulses. Overall, the year was tough for the crop protection industry in India. Area under paddy, wheat and cotton was higher than last year, but there was unprecedented drop in the acreage of pulses and coarse cereals.

 

Overall, Agriculture is gaining in significance the world over, with the rising needs from cultivation coupled with limited availability of land under cropping against the backdrop of the growing population. It is a given that most of this need will be met by increasing productivity and making efficient use of natural resources which will see more constraints in the future. In India, the changing demographics and increasing aspirations is leading to a varied set of expectations in the farming sector. The Government too is seized of all these perspectives and is devoting increased attention to the farming needs. The contribution from newer solutions and the famer interest in applying these to drive up productivity is beginning to show results. Prices for many agricultural commodities in India have been remunerative, enabling farmers to invest in the appropriate agri solutions. Due to the monsoon catching up till September, the Second Advance Estimates has projected a marginal increase in agriculture production, contributed by a reasonable growth in cereals and cotton. Pulses and coarse cereals have shown a slight downfall in production.

 

The Company has, over the last few years, focused well on the Crop Protection business, with its major revenue coming from domestic operations. Backed by a consistently satisfactory performance, the Company launched a growth agenda in May 2007 titled “Rallis Poised” targeted to drive sustained profitable growth. This structured approach has enabled the Company to deliver a CAGR of 13% in revenues over the last six years.

 

The Rallis Poised agenda has seven growth drivers, viz. New Products, Contract Manufacturing, Brand Premium, Value Enhancement (known as “DISHA” initiative), Overseas market expansion (named “Apollo”), Adjacent Businesses (seeds and PGN, Agri Services) and Inorganic Growth. Process orientation, infrastructure support in manufacturing units, fields and offices and a committed and competent team of employees are the enablers supporting the growth agenda.

 

The Company has been pursuing the Rallis Poised growth agenda for consistent delivery of improved performance in recent years. Several initiatives during the year have reinforced this. The acquisition of a stake in Metahelix Life Sciences in December 2010 has firmed up the Company’s presence in the Seeds business. The new manufacturing facility at Dahej in Gujarat became operational in June 2011. This is a multi-purpose plant and will enhance the Company’s competitive advantage to handle different type of chemistries, increasing the potential to attract contract manufacturing from suitable alliance partners.

 

Initiatives such as the Samrudh Krishi services started by the Company at Nasik for grape farmers and at Gujarat for cumin farmers has received an encouraging response from the farmers. Grow More Pulses (MoPu) programme of the Company, where the Company is actively engaged with the farmers in increasing the productivity of pulses, as also helping them in marketing the produce, aims at embracing the entire value chain of products and services to the farming community. During the year, the Company has launched ten new products, viz. Tata Vaar (a soybean herbicide), Neon (an insecticide for tea mites), Sonic (Granular insecticide for paddy and sugarcane), Fycol (herbicide), Tata Cylo (herbicide), Honcho (herbicide for onion), Taffin (insecticide for chili), Saras (fungicide for fruits and vegetables), Ditaf (fungicide) and Tata Bahaar (a plant growth nutrient), thereby leveraging the strong brand equity of the Company in providing better products to the farmers.

 

The Company has also started Tata Rallis Agriculture Inputs Training Scheme (TRAITS) initiative for promoting employability of non-graduate, rural youth from the farming background, by imparting them training in the A Agriculture -marketing and crop advising field, to enable them to take up a career in Agriculture marketing and crop advising. TRAITS also facilitates skill development as a larger cause while facilitating creation of a competent field team for Rallis.

 

The Rallis Poised programme has ensured that the Company’s performance remains well on track on its strategic objective to drive growth. Going forward, the Company, based on these initiatives is well poised to broad base its portfolio on the strength of its competencies to gain firm presence in the various emerging opportunities. These are presence in other Agriculture inputs areas such as seeds, PGN, specialty fertilizers, etc in addition to crop protection.

 

SEEDS AND PLANT GROWTH NUTRIENTS:

 

Seeds and PGN (Plant Growth Nutrients) businesses are poised for growth in India as the disposable incomes and pressure on productivity increases.

 

The Indian seed industry is the eighth largest in the world. The current Indian market size of commercially marketed seeds is estimated about Rs.70000.000 millions. The future of the seed industry in India is expected to be very good, with the demand for branded and quality seeds increasing. Seeds will be an important contributor to the targeted 4% growth in agriculture. Seed Industry in India is growing at the rate of 12% as compared to 6-7% internationally. In India, commercial Seeds account for only 25% of the potential, providing a huge opportunity in this space. The current trends indicate increasing demand for superior genetics and technologies. Adoption of new technologies is very high among Indian farmers.

 

The role of the Seeds sector has been noteworthy, in the significant advances that India has made in agriculture in the past five decades, driving agricultural productivity. To have a sustained growth in agriculture to meet the increasing demand for food, fodder, fibre and fuel, development and adoption of innovative technologies is essential and seeds will continue to be a vital component in this journey in times to come. The acquisition of Metahelix puts the Company into a firm position in the seeds arena.

 

PGN as a category comprises bio stimulants, water soluble fertilizers (WSF), micronutrients and bulk organic manures used in various crops. PGN caters more to the latent need of yield improvement as against explicit need of plant protection as in the case of pesticides. The market size of PGN is estimated to be around Rs.1,5000.000 millions Overall, the PGN business is growing at an annual rate of 10-12% fueled by the specialty fertilizer business and also the encouraging crop economics, which is making farmers look for avenues to improve their crop productivity. The usage of PGNs is more in the high value crops, particularly the specialty fertilizers and bio stimulants, although consumption is also increasing in the field crop segment in recent years.

 

There is very little product differentiation, so there is good scope for concept selling by introducing innovative products, thereby offering good potential for the Company to expand in this category. The Company plans to create differentiation through a business model which creates value across the value chain, from branded seeds to branded dal. Deeper understanding of rural India and branding capability will bring in sharper focus to the Seeds Business. Rallis’ Farmer Relationship Programme RKK will drive future growth of seeds along with strengths of its subsidiary, Metahelix Life Sciences. The focus will be on introduction of differentiated greener products.

 

With chemical fertilizer prices increasing substantially, the Company’s endeavour is to introduce those products which can supply the nutrients in bio-available form at a much lower cost, thus improving the income of farmers. Current PGN market is dominated by products which do not offer significant benefits to farmers. Keeping this aspect in mind, the Company has made strategic alliances with companies that provide differentiated products in different crops, to help farmers realize better value. The Company is constantly working to provide differentiated offerings to ameliorate nutrient deficiencies, enhance crop yields and improve soil conditions.

 

CONTRACT MANUFACTURING:

 

The Company has strong technical skills and competence in the manufacturing operations. The investment into new facilities in Dahej is to harness this capability as India emerges amongst the preferred sourcing destinations. The contract manufacturing business will also provide a right balance between market facing/ agriculture segments and back-end/ chemistry activities.

 

AGRICULTURE SERVICES:

 

As the transition occurs in the rural space as outlined above, the Company also sees ample scope in providing Agriculture Services to the farming community. A step in this direction is the initiation of the Samrudh Krishi programme. MoPu programme has been extended to Maharashtra State. With the rising costs and/ or non-availability of labour, TRAITS will also come into sharp focus.

 

The Company has the core competencies in Agriculture and Chemistry in terms of strong farmer relationships, its suite of solutions, technical skills and branding/ marketing capabilities which will power its journey forward.

 

RALLIS’ OVERALL PERFORMANCE

 

The total consolidated revenues at Rs.12748.700 millions registered a growth of 17% during the financial year 2011-12. The EBIDTA percentage on a consolidated basis, as compared to the previous year, has gone up by 11%. The Company’s profit before tax during the year on a consolidated basis, is Rs.1493.900 millions This is a decrease of 19% as compared to the previous year’s profit before tax of Rs.1844.700 millions Exceptional items such as cessation costs of Rs.171.900 millions and losses relating to foreign exchange of Rs.96.600 millions  impacted the profits. The net profit, at Rs.991.800 millions decreased by 21% over the net profit of Rs.1260.400 millions in the previous year, on a consolidated basis.

 

REVIEW OF OPERATIONS

 

Agro Inputs

 

(1) CROP PROTECTION:

 

(a) Domestic Formulations Business:

 

The Domestic Formulation Business registered a growth of 2% over the previous year, driven by a sustained performance of the key brands. During the year, the Company stopped selling red triangle products as part of its sustainability drive, which in the past contributed to around 10% of the Domestic Formulation business. The efforts on branding and market development have been further increased due to institutionalization of EAGLE (Expansion and Aggressive Growth through Leadership and Excellence) way of working into day to day operations. Year 2011-12 saw full scale implementation of EAGLE processes, such as Saksham (Sales planning),

Grahak Bandhan (Sales execution), Pragati etc in customer and channel partner engagement areas across regions.

 

The Company has a long standing relationship with the Indian Farmer, spanning decades. Today, the TATA Rallis brand stands for reliability and trust in the minds of the Indian Farmer. They pride on this relationship being a major strength of Rallis.

 

RKK - Rallis Kisan Kutumba was an initiative started in the year 2007-08, aiming to bring about a difference in terms of farmer relationship and farmer understanding by providing key farmers across major crops information on improving his productivity. The RKK initiative is to enable farmers to imbibe and use knowledge and share the same across the farmer community to increase productivity. The key activities with the RKK farmers are regular contact throughout the crop cycle, organizing crop seminars, product demonstrations, Farmer exchange programmes (Prerna), Focused Group Discussions (FGDs) and Advisory services. In addition to this, going forward, the Company has added more value added services such as sms alerts on crop prices, weather and possible disease outbreak through Samrudh Krishi.

 

(b) Institutional Business:

 

The Domestic Institutional Business, consisting of Technicals, Bulk Formulations, Seed Treatment Chemicals and

Household Products continued with its sales to major customers and products during the year.

 

The Company focused on strengthening its relationship with key institutional customers and retaining its presence in the major products. Suitable co-marketing arrangements put in place helped the Company to sustain market presence in key areas. The focus on customer services resulted in appreciation from major customers and the Company won prestigious awards from two global corporations.

 

(c) International Business:

 

The International Business Division registered an increase of 48% in sales, as compared to the sales during

2010-11. It comprised 33% of the total revenues of the Company during the year. This is in line with APOLLO

aspirations as part of their Long Term Strategy.

 

While the rupee depreciation translated into higher revenue growth, there was a considerable volume growth

in key manufactured products exported to Latin America and USA under contract manufacturing. Sales in

South East Asia also improved over the last year, due to higher sales of fungicides. The African region reported

stable sales, in spite of forgoing certain business due to political instability.

 

There was a significant increase in the sales of their key products Acephate and Pendimethalin also facilitated by

new regulatory requirements. While Hexaconazole demand in Vietnam increased on account of higher usage as

well as increase of combination products with Hexaconazole, there was pressure on prices due to heightened

competition.

 

(2) SEEDS:

 

After acquiring a majority stake in Metahelix Life Sciences, a research-led Seeds Company in December 2010, this year the Company focused its efforts on establishing their seed brands in various segments. As a part of the strategy of capitalizing on the opportunity in seeds space along with the strengths the Company has, post the Metahelix acquisition, it was decided to use multiple brands and multiple channels. In seeds, they have mapped the Indian market and analyzed various segments. The high potential segments along with geographies were identified and suitable products were selected based on the competitive environment analysis. During the year, the Company has launched ten new seed hybrids in its portfolio and extensive field activities were conducted to establish these new brands.

 

 (3) PLANT GROWTH NUTRIENTS:

 

As a move towards sustainable agriculture, the Company is increasing its focus on greener and cleaner products. Launch of Tata Bahaar is a move in that direction. This is a 100% organic product, produced from natural ingredients such as vegetables and contains amino acids. This product has been accepted well by farmers and will be shaping up as a mega brand in this segment.

 

With nutrient based subsidy and deregulation of fertilizer prices coming into effect, the Company has conducted trials and positioned Ralligold, which hepls in balanced fertilizer use.

 

 

OPPORTUNITIES AND OUTLOOK

 

The fundamentals of the Agriculture sector continue to be robust and will drive growth in the years to come. The remunerative produce prices for cotton, sugarcane, pulses and fruits and vegetables are expected to continue and will lead to increased investments by the farmers on crop protection and improving overall productivity. New generation products like Ergon and Saras, which enhance yield and control diseases, and Ralligold and Tata Bahaar, which are plant growth nutrient products which improve growth and crop yield, will drive business growth. Herbicides are the fastest growing crop protection category in the domestic market. With labour shortage increasing in rural areas, farmers are looking for labour saving options and this will lead to a higher demand for herbicides. Tata Vaar and Honcho introduced during the last year along with new herbicides, have a good opportunity to cater to farmers’ needs in weed management segment.

 

The acquisition of a majority equity stake in Zero Waste Agro Organics Private Limited (ZWAOPL) will strengthen the Company’s portfolio with scientifically preprared organic compost rich in nutrients and organic carbon, derived out of wastes from sugar industry, to improve deteriorating soil health and drive agriculture productivity. Acquisition of this organic compost business will spur the Company’s growth strategy.

 

The enterprise value creation programme, DISHA (Drive Innovative Solutions with Hyper Achievements) which aims at re-engineering various processes and activities across the Company to generate value and the International Business growth programme, APOLLO are also expected to contribute well to the overall growth agenda of the Organization in the coming year as well.

 

The EAGLE (Expansion and Aggressive Growth through Leadership and Excellence) initiative will continue to assist the business to achieve its targets for 2012-13.

 

 

CONTINGENT LIABILITIES:

 

(Rs in Millions)

Particular

31.03.2012

31.03.2011

Claims against the Company not acknowledged as debts:

 

Sales Tax

Excise Duty

Customs Duty

Income Tax

Service Tax

Property Cases

Labour Cases

Other cases

 

 

2,15.863

36.084

14.950

6,65.504

4.214

4.736

10.900

47.201

 

 

1,91.659

36.084

14.950

6,58.376

3.503

4.736

10.375

45.379

Guarantees

0.310

0.110

Other money for which the company is contingently liable:

Bills Discounted

 

10.410

 

33.856

 

 

FIXED ASSETS:

 

  • Freehold Land
  • Leasehold Land
  • Buildings
  • Plant and Equipment
  • Furniture and Fixtures
  • Vehicles
  • Office Equipment
  •  

 

STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 31.12.2012

                                                                                                                                          (Rs in Millions)

 

Particular

31.12.2012

30.09.2012

31.03.2012

 

 

3 months ended

Preceding 3 months ended

9 months ended

1

Income from Operations

 

 

 

a)

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

3204.100

4612.000

10470.700

b)

Other operating income

26.100

45.500

114.500

 

Total income from operations (net)

3230.200

4657.500

10585.200

2

Expenses

 

 

 

a)

Cost of materials consumed

1789.200

2150.200

5652.500

b)

Purchase of stock-in-trade

235.900

386.500

1096.100

c)

Changes in inventories of finished goods, work-in-progess and stock in trade

7.300

451.600

(101.300)

d)

Employee benefits expense

201.000

174.500

588.000

e)

Depreciation and amortisation expense

73.300

70.900

212.300

f)

Other expenses

514.400

495.700

1588.000

 

Total Expenses

2821.100

3729.400

9035.600

3

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

409.100

928.100

1549.600

4a.

Other Income

14.300

16.900

124.700

4b.

Exchange Gain / (Loss)

(26.700)

24.200

(52.600)

5

Profit / (Loss) from ordinary activities before finance costs and exceptional items (3 + 4a + 4b)

396.700

969.200

1621.7

6

Finance costs

28.200

39.100

106.700

 

Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5 - 6)

368.500

930.100

1515.000

8

Exceptional Items - Cessation cost

-

-

-

9

Profit / (Loss) from ordinary activities before tax (7 - 8)

368.500

930.100

1515.000

10

Tax expense

120.900

273.400

456.300

11

Net Profit / (Loss) from ordinary activities after tax (9-10)

247.600

656.700

1058.700

12

Minority Interest

-

-

-

13

Net Profit after taxes and minority interest (11-12)

247.600

656.700

1058.700

14

Paid-up equity share capital

194.500

194.500

194.500

 

(Face value Rs. 1 per share)

 

 

 

15

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

-

-

-

16

Earnings per Share (EPS)

-

-

-

 

(of 11 each)(not annualised):

 

 

 

 

a) Basic

1.27

3.38

5.44

 

b) Diluted

1.27

3.38

5.44

 

 

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

- Number of Shares

97,052,280

97,052,280

97,052,280

 

- Percentage of shareholding

49.91%

49.91%

49.91%

2

Promoters and promoter group Shareholding

 

 

 

a)

Pledged/Encumbered

 

 

 

 

- Number of shares

Nil

Nil

Nil

 

- Percentage of shares (as a % of the total shareholding

NA

NA

NA

 

of promoter and promoter group)

 

 

 

 

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

NA

NA

NA

 

the company)

 

 

 

b)

Non-encumbered

 

 

 

 

- Number of shares

97,416,610

97,416,610

97,416,610

 

- Percentage of shares (as a % of the total shareholding

100.00%

100.00%

100.00%

 

of promoter and promoter group)

 

 

 

 

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

50.09%

50.09%

50.09%

 

of the company)

 

 

 

 

 

 

Particulars

3 months ended 31.03.2012

B

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the quarter

-

 

Received during the quarter

2

 

Disposed of during the quarter

1

 

Remaining unresolved at the end of the quarter

1

 

 

Notes:

 

  1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 23 January 2013, and the statutory auditors of the Company have conducted a "Limited Review" of the above unaudited financial results.

 

  1. The Company's business is seasonal in nature and the performance can be impacted by weather conditions and cropping pattern.

 

  1. The Company has one reportable business segment viz. "Agri-Inputs".

 

  1. Pursuant to Share Purchase Agreement dated 9 December, 2010 the Company has acquired additional stake of equity shares in Metahelix Life Sciences Limited (Metahelix) during the quarter ended 31 December 2012, consequently the shareholding of the Company in Metahelix has increased from 75.64% to 77.02% as at 31 December 2012.

 

  1. During the quarter ended 31 December, 2012, the Company has acquired/subscribed to shares comprising 22.81% of the equity shares of Zero Waste Agro Organics Private Limited (ZWAOPL), which together with certain rights under the Shareholder Agreement requires ZWAOPL to be treated as a subsidiary of the Company.

 

  1. Figures for the earlier periods have been regrouped / recast wherever necessary.

 

 

 

 

PRESS RELEASE

 

Mumbai, 24th January, 2013: Rallis India Limited, a TATA Enterprise and a leading player in the Indian crop protection industry announced the financial results for the quarter and nine months ended 31st December, 2012.

 

Consolidated Q3 Performance:

 

Net sales registered a growth of 7% at Rs. 33.981 Millions as compared to Rs. 3176.500 Millions during Q3 of the previous year. Net profit (after minority interest) for the Q3 FY13 was Rs. 220.300 Millions (Rs. 76.600 Millions for Q3 PY).

Profit before Tax (bei) for the quarter was Rs. 328.800 Millions as against previous quarter profit of Rs. 366.500 Millions

 

Consolidated Nine Months (April - December) Performance:

 

Net sales registered a growth of 12% at Rs. 11614.400 Millions as compared to Rs. 10413.600 Millions during the same period in previous year.

 

Net profit (after minority interest) for the Nine months ended 31st December, 2012 was Rs. 1077.600 Millions (Rs. 893.000 Millions for the same period in previous year).

 

Profit before Tax (bei) for the nine months ended 31st December, 2012 was Rs. 1540.100 Millions as against the same period in previous year profit of Rs. 1586.500 Millions.

 

During the quarter ended 31 December 2012, the Company has acquired / subscribed to shares comprising 22.81% of the equity shares of Zero Waste Agro Organics Private Limited (ZWAOPL). Rallis has certain rights under the Shareholder Agreement which requires ZWAOPL to be treated as a subsidiary of the Company and hence it is consolidated. The results for the quarter and nine months ended 31 December 2012 are not materially affected as a consequence of this acquisition.

 

Pursuant to Share Purchase Agreement dated 9th December, 2010 the Company has acquired additional stake of equity shares in Metahelix Life Sciences Limited (Meta helix) during the quarter ended 31st December 2012, consequently the shareholding of the Company in Metahelix has increased from 75.64% to 77.02% as at 31st December 2012.

 

 

Mumbai: Rallis India, a Tata enterprise and a leading player in the Indian crop protection industry, announced the financial results for the quarter and year ended March 31, 2012.

 

 

Consolidated key highlights – FY2011-12

 

For the financial year ended March 31, 2012, Rallis India reported a 17 percent jump in net revenues to reach a new high at Rs 12450.000 millions. The Ebidta (bei) also smartly rose by 12 percent to scale up to Rs 2120.000 millions The company posted net profit after tax of Rs100.000 millions  after exceptional item of Rs 170.000 millions.

 

Consolidated key highlights – Q4 FY2011-12

 

During Q4 FY2011-12, Rallis India reported top line of Rs.2060.000 millions largely driven by volumes with operating Ebidta at Rs12.000 millions.

 

Commenting on the performance and developments, V Shankar, managing director and CEO, Rallis India, said, “I am pleased to inform that the company has crossed a new milestone in terms of achieving revenues of Rs.12450.000 millions registering a healthy growth of 17 percent, though the year witnessed erratic rainfall and difficult agricultural conditions.

 

"The customer relationship building activities branded under the umbrella of Rallis Kisan Kutumba (RKK) moved to the next orbit with expansion of MoPu (grow More Pulses) in Karnataka and Maharashtra and successful introduction of new initiatives such as Samrudh Krishi (Maharashtra and Gujarat), Tata Rallis Agri Input Training Scheme (TRAITS) and advisory centres (across regions) which played key role in customer relationship building and help increase the farm productivity of our end customers."

 

In the international business, Rallis India saw robust growth, and revenues rose to near the Rs400-crore landmark reflecting 33 percent of sales.

 

Acquisition of organic manure business:

 

The board of Rallis India approved entering into definitive agreements to acquire a majority equity stake of 51 percent in Zero Waste Agro Organics (ZWAOPL), a Maharashtra-based organic manure and soil conditioners manufacturing company. The acquisition is an all-cash deal for Rs.290.000 millions. Rallis India will also have exclusive sales and marketing arrangements with ZWAOPL for domestic and international markets.

 

With this Rallis India strengthens its product portfolio with organic manure and soil conditioner products to improve deteriorating soil health and drive agricultural productivity. The acquisition of this organic manure business will spur the Rallis Poised growth strategy.

 

Upbeat on the business prospects, Mr Shankar added, “We expect that the revenue from the business will exceed Rs1000.000 millions cumulative over a five-year period. The technology fits well with our strategy and supports sustainable agriculture. This is a progressive move forward in providing high-performance solutions to help farmers in addressing the challenge of food security.”

 

Business highlights

 

  • Board recommends final dividend of Rs1.20 per share, taking the total dividend for the year to Rs 2.20 per share.

 

  • The Rallis Kisan Kutumba programme continued to receive focus with over 700,000 farmers coming into this fold.

 

  • Dahej facility fully operational. 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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]         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. 54.27

UK Pound

1

Rs. 82.49

Euro

1

Rs. 69.88

 

 

INFORMATION DETAILS

 

Report Prepared by :

UDS

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

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

-

NB

                                       New Business

-

 

 

 

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

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