MIRA INFORM REPORT
|
Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
COROMANDEL INTERNATIONAL LIMITED (w.e.f. 25.09.2009) |
|
|
|
|
Formerly Known
As : |
COROMANDEL FERTILISERS LIMITED |
|
|
|
|
Registered
Office : |
1-2-10, Sardar Patel Road, Secunderabad, Hyderabad -
500003, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
16.10.1961 |
|
|
|
|
Com. Reg. No.: |
01-000892 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 282.600 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24120AP1961PLC000892 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDC00011E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACC785ZK |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates. |
|
|
|
|
No. of Employees
: |
1050 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (78) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 94840000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an old and established company having fine track record.
Financial positions of the company appear to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long term rating: AA+ |
|
Rating Explanation |
Having very low default risk. It indicates
very strong capacity for payment of financial commitment. |
|
Date |
March, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
1-2-10, Sardar Patel Road, Secunderabad, Hyderabad - 500003, Andhra
Pradesh, India |
|
Tel. No.: |
91-40-27842034/ 27847212 |
|
Fax No.: |
91-40-27844117 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Fertiliser
Plants : Sriharipuram, Po
Box No. 1116, Malkapuram Post, Visakhapatnam – 530011, Andhra Pradesh,
India Phone: 91-891-2578400 to 2578419 Fax: 91-891-2577665 N. Seetaram - General Manager - Mfg. Email:Seetaramn@cfl.murugappa.com
Fertilisers /
Pesticides Factory Ranipet - 632 401, Vellore District, Tamilnadu, India. Phone: 91-4172-272326 Fax : 91-4172-272264 Compound
Fertilisers Factory Ennore, Chennai – 600507, Tamilnadu, India Satyanarayana Rao - General Works Manager Email:Satyanarayanarao@cfl.murugappa.com Pesticide Plant Plot No. 22/1, TTC Industrial Area, Thane Balapur Road, Ghanasoli P.O., Navi Mumbai - 400701, Maharashtra, India Phone: 91-22-27781261 to 27781263 Warriar M.K - General Manager – Operations Email:WarriarMK@cfl.murugappa.com CROP PROTECTION
PLANTS AT: ·
Ranipet in Tamilnadu ·
Navi Mumbai in ·
Ankleshwar in ·
|
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. A Vellayan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. V Ravichandran |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Kapil Mehan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. K
Balasubramanian |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B V R Mohan
Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R A Savoor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M K Tandon |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M M
Venkatachalam |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Ranjana Kumar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. G Ravi Prasad |
|
Designation : |
President - Marketing Fertilisers and SND |
|
|
|
|
Name : |
Mr. P Gopalakrishna |
|
Designation : |
Sr Vice President - Retail |
|
|
|
|
Name : |
Mr. Harish Malhotra |
|
Designation : |
Sr Vice President - Commercial |
|
|
|
|
Name : |
Mr. Arun Leslie
George |
|
Designation : |
Sr Vice President and Head of HR |
|
|
|
|
Name : |
Mr. S Govindarajan |
|
Designation : |
Sr Vice President and Head of Manufacturing |
|
|
|
|
Name : |
Mr. S
Sankarasubramanian |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. M R Rajaram |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3409364 |
1.20 |
|
|
177161160 |
62.61 |
|
|
25140 |
0.01 |
|
|
25140 |
0.01 |
|
|
180595664 |
63.83 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
180595664 |
63.83 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
14777118 |
5.22 |
|
|
124900 |
0.04 |
|
|
6208236 |
2.19 |
|
|
20575942 |
7.27 |
|
|
1840 |
0.00 |
|
|
41688036 |
14.73 |
|
|
|
|
|
|
12050776 |
4.26 |
|
|
|
|
|
|
24681209 |
8.72 |
|
|
10696624 |
3.78 |
|
|
13236909 |
4.68 |
|
|
67460 |
0.02 |
|
|
9925070 |
3.51 |
|
|
47156 |
0.02 |
|
|
3121328 |
1.10 |
|
|
75895 |
0.03 |
|
|
60665518 |
21.44 |
|
Total Public
shareholding (B) |
102353554 |
36.17 |
|
Total (A)+(B) |
282949218 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
282949218 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Fertilisers and Ammonium Phosphates. |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
(i)
Fertilisers |
|
|
|
|
Ammonium Phosphatic Fertilisers |
MT |
2315000 |
2104014 |
|
Di-Ammonium Phosphate (DAP) |
MT |
815000 |
434475 |
|
Single Super Phosphate |
MT |
132000 |
104472 |
|
|
|
|
|
|
(ii) Plant Protection Products |
|
|
|
|
Technicals |
MT |
11840 |
7204 |
|
Formulations
- Liquids (in KL) |
MT |
10400 |
7171 |
|
Formulations
– Granules/Powder |
MT |
6920 |
5338 |
Note:
Installed
capacities are as certified by the management and not verified by the auditors,
being a technical matter. Fertiliser and Plant Protection Products are not
covered by the list of industries in respect of which industrial licensing is
compulsory.
GENERAL INFORMATION
|
No. of Employees : |
1050 (Approximately) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India ·
Hongkong and Shanghai ·
Banking Corporation Limited ·
HDFC Bank Limited ·
IDBI Bank Limited ·
ICICI Bank Limited |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
Note: The term loans
from banks comprise of External Commercial Borrowings (ECB) and are secured
by an exclusive charge on certain fixed assets of Visakhapatnam plant. These
loans are repayable over the next six years and have been fully hedged for exchange
and interest rates. For ECB aggregating Rs.1808.800 Millions as at 31 March
2012 charge is pending creation. The above loans carry interest rates with
spread ranging 170 bps to 240 bps over 3 months LIBOR. Secured short-term
borrowings comprise working capital and demand loans. Such borrowings from
banks are secured by a pari-passu charge of stock of raw materials,
work-in-process, finished goods, stores and spare parts and book debts
including subsidy receivables of the Company. Working capital demand loan
from State Bank of India is further secured by a second charge on the movable
fixed assets of the Company. Unsecured loans
repayable on demand comprises buyers credit denominated in foreign currency
and Rupee loans from banks. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
1-8-384 and 385,
3rd Floor, Gowra Grand, S.P. Road, Begumpet, Secunderabad – 500003, Andhra
Pradesh, India |
|
|
|
|
Cost Auditors: |
·
Mr V Kalyanaraman ·
Mr Dantu Mitra |
|
|
|
|
Holding Company: |
·
E.I.D. Parry (India) Limited |
|
|
|
|
Subsidiaries : |
·
Sabero Organics Gujarat Limited (Sabero) ·
Sabero Organics America Ltda (SOAL) ·
Sabero Australia Pty Limited, Australia (Sabero
Australia) ·
Sabero Europe BV (Sabero Europe) ·
Sabero Argentina S.A. (Sabero Argentina) ·
Parry Chemicals Limited (PCL) ·
CFL Mauritius Limited (CML) ·
Coromandel Brasil Limitada (CBL) |
|
|
|
|
Fellow
subsidiary: |
·
Parry Investments Limited ·
Parry Infrastructure Company Private Limited
(PICPL) ·
Sadashiva Sugars Limited (SSL) ·
Parry Sugar Industries Limited (PSIL) |
|
|
|
|
Joint venture: |
·
Coromandel Getax Phosphates Pte Limited (CGPL) ·
Coromandel SQM (India) Private Limited (CSQM) ·
Tunisian Indian Fertilisers. SA (TIFERT) |
CAPITAL STRUCTURE
AFTER 23.07.2012
Authorised Capital : Rs.
350.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 282.992
Millions
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
350000000 |
Equity Shares |
Re.1/- each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
282569542 |
Equity Shares |
Re.1/- each |
Rs. 282.600 Millions |
|
|
|
|
|
Notes:
(i) Reconciliation of number of equity shares and amount outstanding at
the beginning and at the end of the year:
|
|
31.03.2012 |
|
|
|
Number |
Rs. in Millions |
|
Per last Balance Sheet |
281834198 |
281.800 |
|
Add: Equity shares allotted pursuant to exercise of stock options |
735344 |
0.800 |
|
Balance at the end of the year |
282569542 |
282.600 |
(ii) Rights,
preferences and restrictions attached to equity shares
The Company has
one class of equity shares having a face value of Re.1 each. Each shareholder
is eligible for one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the Shareholders in the ensuing Annual
General Meeting, except in the case of interim dividend.
(iii) As at 31
March 2012, E.I.D.-Parry (India) Limited (Holding Company) held 17,71,55,580
(2011: 17,71,55,580) equity shares of Re.1/- each fully paid-up representing
62.69% (2011: 62.86%) of the paid-up capital. There are no other shareholders
holding more than 5% of the issued capital.
(iv) As at 31
March 2012, shares reserved for issue under the 'ESOP 2007' scheme is
1,00,10,330 (2011: 1,07,45,674) equity shares of Rs.1/- each (refer Note 28)
(v) Details of
bonus shares issued, shares issued for consideration other than cash during the
period of five years immediately preceeding the reporting date:
(a) 8,31,981
equity shares of Rs.2/- each fully paid up were allotted to the shareholders of
Ficom Organics Limited in the ratio of 3 shares of the company for every 11
shares of Ficom Organics Limited pursuant to the Scheme of Amalgamation between
Ficom Organics Limited, Rasilah Investments Limited and the Company during the
year ended 31 March 2007.
(b) 1,20,37,182
equity shares of Rs.2/- each fully paid up were allotted to the shareholders of
Godavari Fertilisers and Chemicals Limited in the ratio of 3 shares of the
Company for every 2 shares of Godavari Fertilisers and Chemicals Limited
pursuant to the Scheme of Amalgamation between Godavari Fertilisers and
Chemicals Limited and the Company during the year ended 31 March 2008.
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 |
282.600 |
281.800 |
280.546 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
23429.300 |
18759.300 |
14069.335 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
23711.900 |
19041.100 |
14349.881 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7336.400 |
3821.500 |
4655.985 |
|
|
2] Unsecured Loans |
16839.000 |
9820.500 |
14521.954 |
|
|
TOTAL BORROWING |
24175.400 |
13642.000 |
19177.939 |
|
|
DEFERRED TAX LIABILITIES |
674.500 |
814.500 |
854.671 |
|
|
|
|
|
|
|
|
TOTAL |
48561.800 |
33497.600 |
34382.491 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8071.000 |
7937.000 |
8040.391 |
|
|
Capital work-in-progress |
1331.300 |
206.400 |
132.755 |
|
|
|
|
|
|
|
|
INVESTMENT |
6279.400 |
2123.500 |
2110.461 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
18556.100
|
15131.200 |
9264.227
|
|
|
Sundry Debtors |
8870.200
|
2024.100 |
1427.130
|
|
|
Cash & Bank Balances |
9178.500
|
9020.500 |
8098.586
|
|
|
Other Current Assets |
126.000
|
4380.700 |
8599.573
|
|
|
Loans & Advances |
20647.800
|
11414.600 |
6232.872
|
|
Total
Current Assets |
57378.600
|
41971.100 |
33622.388 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
20427.200
|
15108.200 |
7112.428
|
|
|
Other Current Liabilities |
2585.000
|
2309.500 |
1467.184
|
|
|
Provisions |
1486.300
|
1322.700 |
943.892
|
|
Total
Current Liabilities |
24498.500
|
18740.400 |
9523.504 |
|
|
Net Current Assets |
32880.100
|
23230.700 |
24098.884 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
48561.800 |
33497.600 |
34382.491 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
49688.700 |
32679.300 |
28305.260 |
|
|
|
Government subsidies |
47463.900 |
42628.900 |
35642.043 |
|
|
|
Other operating revenue |
1080.100 |
1084.400 |
0.000 |
|
|
|
Other Income |
1166.700 |
797.600 |
1321.154 |
|
|
|
TOTAL |
99399.400 |
77190.200 |
65268.457 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
58606.500 |
|
56838.039 |
|
|
|
Purchases of stock-in-trade |
19349.100 |
8856.900 |
|
|
|
|
Changes in inventories of finished goods, work-in-process and
stock-in-trade |
(2588.700) |
(2199.700) |
|
|
|
|
Employee benefits expense |
1882.200 |
1578.800 |
|
|
|
|
Other expenses |
10370.600 |
7678.600 |
|
|
|
|
TOTAL |
87619.700 |
65825.300 |
56838.039 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
11779.700 |
11364.900 |
8430.418 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES
|
1165.100 |
862.900 |
753.713 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION
|
10614.600 |
10502.000 |
7676.705 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
561.600 |
617.400 |
592.316 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
EXCEPTIONAL ITEMS AND TAX |
10053.000 |
9884.600 |
7084.389 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL ITEM |
355.300 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
9697.700 |
9884.600 |
7084.389 |
|
|
|
|
|
|
|
|
|
Less |
TAX
|
2765.000 |
2940.000 |
2402.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER
TAX |
6932.700 |
6944.600 |
4681.989 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3179.027 |
2031.827 |
1488.592 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
3000.000 |
3500.000 |
2500.000 |
|
|
|
Interim Dividend |
1130.100 |
1127.500 |
841.464 |
|
|
|
Proposed Dividend |
847.700 |
845.500 |
561.093 |
|
|
|
Tax on Dividend |
320.800 |
324.400 |
236.197 |
|
|
BALANCE CARRIED
TO THE B/S |
4813.127 |
3179.027 |
2031.827 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of export of goods |
579.200 |
663.791 |
591.967 |
|
|
|
Service Income |
25.200 |
26.876 |
21.627 |
|
|
|
Dividend from subsidiary company |
448.300 |
0.000 |
0.000 |
|
|
|
Dividend from others |
9.500 |
0.000 |
0.000 |
|
|
|
Others |
86.200 |
38.306 |
39.605 |
|
|
TOTAL EARNINGS |
1148.400 |
728.973 |
653.199 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
52057.500 |
45207.158 |
31755.105 |
|
|
|
Stores & Spares Parts |
20.400 |
26.000 |
1.294 |
|
|
|
Capital Goods |
61.000 |
1.000 |
7.751 |
|
|
|
Stock in Trade |
16394.200 |
6034.800 |
0.000 |
|
|
|
Traded Goods |
0.000 |
0.000 |
5428.252 |
|
|
TOTAL IMPORTS |
68533.100 |
51268.958 |
37192.402 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
24.57 |
24.69 |
33.43 |
|
|
|
Diluted |
24.43 |
24.46 |
33.08 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 1st
Quarter |
30.09.2012 2nd
Quarter |
31.12.2012 3rd
Quarter |
|
Net Sales |
17528.200 |
25501.700 |
23089.400 |
|
Total Expenditure |
15417.800 |
22168.400 |
21912.200 |
|
PBIDT (Excl OI) |
2110.400 |
3333.300 |
1177.200 |
|
Other Income |
180.300 |
193.200 |
144.400 |
|
Operating Profit |
2290.700 |
3526.500 |
1321.600 |
|
Interest |
427.700 |
378.000 |
464.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
1863.000 |
3148.500 |
857.400 |
|
Depreciation |
141.500 |
142.000 |
151.400 |
|
Profit Before Tax |
1721.500 |
3006.500 |
706.000 |
|
Tax |
440.600 |
670.000 |
19.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1280.900 |
2336.500 |
686.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1280.900 |
2336.500 |
686.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.97
|
9.00 |
7.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.52
|
30.25 |
25.03 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.82
|
19.81 |
17.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.41
|
0.52 |
0.49 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.02
|
0.72 |
1.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.34
|
2.24 |
3.53 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-------- |
|
22] |
Litigations that the firm
/ promoter involved in |
-------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-------- |
|
26] |
Buyer visit details |
-------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if
available |
Yes |
OPERATIONS
The Company has shown
improved performance in all its business segments and achieved a higher revenue
of Rs. 9,940 Millions for the year ended 31 March 2012 (2010-11 - Rs. 77190.000
Millions). Profit for the year before depreciation, interest and taxation was
Rs. 1178.000 Millions compared to Rs. 1136.000 Millions in the previous year.
Profit after tax was Rs. 6930.000 Millions as against Rs. 6940.000 Millions in
2010-11.
Improved operational
efficiencies and appropriate sourcing strategies have significantly contributed
to overall improved performance inspite of lower production of fertilisers due
to shortage of phosphoric acid and high volatility in the Rupee. The fertiliser
business achieved a total sales volume (including imported fertilisers) of
3.008 Millions tons as against 2.863 Millions tons achieved in the previous
year. Besides, the Company also handled 2.650 Millions tons of urea against
0.198 Millions tons achieved in the previous year. Timely purchase of input raw
materials and pro-active forex management coupled with faster liquidation of
stocks has helped the Company in improving operational profits.
Crop Protection
business performed reasonably well during the year despite a continuing ban
imposed on Endosulfan by Hon'ble the Supreme Court of India at the beginning of
the year and unfavourable monsoon conditions in certain States during Rabi
season. The acquisition of Sabero Organics Gujarat Limited, a technical grade
manufacturer has expanded product profile of crop protection business and has
given greater access to global markets. Timely introduction of new technicals
at Ankleshwar facility has mitigated the impact on volumes due to ban of
Endosulfan. Leveraging the Retail presence in Andhra Pradesh and Karnataka, the
Company has significantly improved the sale of specialties and captive
technical formulations.
In Speciality
Nutrient Business, the Company has achieved sales growth in Organic Compost,
Gromor Sulphur and Water Soluble Fertilisers (WSF) despite difficult seasonal
and market conditions. The Company continues to be a market leader in Bentonite
Sulphur and registered a growth of 14% over last year in this segment. In the
organic fertilisers, the Company has registered a growth of 33% in volumes as
compared to previous year.
In Retail business,
the Company has opened 200 new retail centres in Andhra Pradesh and Karnataka.
With this expansion, the Company has 641 centres in Andhra Pradesh and
Karnataka. Retail turnover has grown by 11% during the year. In retail
business, the Company has decided to focus more on agri-input business and exit
from the life style products. The Company continues to explore Farm
Mechanisation Business as part of its retail service offerings to the farmers.
SUBSIDIARY COMPANIES:
ACQUISITION OF SABERO ORGANICS GUJARAT LIMITED (SABERO)
During the year, The
Company entered into a Share Purchase Agreement with the erstwhile promoters of
Sabero and acquired 1,42,98,112 equity shares of Sabero at Rs. 160 per share
and also paid a non-compete fee of Rs. 38.47 per share for the resident
shareholders aggregating to Rs. 3553.000 Millions.
The Company, also
further acquired 1,05,00,000 equity shares of Sabero through an Open Offer from
the shareholders of Sabero at a price of Rs. 160/- per share, pursuant to the
approval from Securities Exchange Board of India (SEBI) for the Open Offer
under SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997.
Post completion of this acquisition, The Company now holds 2,47,98,112 equity
shares representing 73.23% in the equity share capital of Sabero. The Company
along with its wholly owned subsidiary (Parry Chemicals Limited,) holds 74.57%
of the equity share capital of Sabero and effective December 17, 2011 Sabero
has become a subsidiary of the Company. The Consolidated results include
results of Sabero effective this date.
Sabero manufactures
technical grade pesticides with manufacturing facilities in Sarigam, Gujarat
and plans are underway for setting up an ancillary project at Dahej, in the
state of Gujarat. Sabero's shares are listed on the National Stock Exchange and
Bombay Stock Exchange.
Sabero's revenue from
operations for the year ended March 31, 2012 was Rs. 358.43 Millions with a Net
loss of Rs. 61.24 Millions. The production of Sabero during the year was
impacted under judicial restraint. However, the Company was able to get
permission for utilization of capacity up to 75% starting December 2011. In
view of the under utilization of the capacities, higher power and fuel cost and
certain accounting adjustments necessitated on reconciliation of major
balances, the Company had incurred the loss. The Company is investing into comprehensive
revamping of Environmental Management System to comply with environmental
standards. These investments are aimed at further compliance with environmental
regulations and will also enable the Company to ramp up production and sales
volumes from 2012-13 onwards.
The acquisition of
Sabero is part of the company's long term vision to consolidate its position as
a significant player in the crop protection business with a combination of
products in technical/formulation grade pesticides catering to both domestic
and global markets.
CFL MAURITIUS LIMITED:
The Company (a 100%
subsidiary) earned a total revenue of US $ 1.22 million (equivalent to Rs.
57.600 Millions) and net profit of US $ 0.74 million (equivalent to Rs. 36.100
Millions) during the year ended December 31, 2011. During the year, the Company
has received dividend from Foskor (Pty) Limited amounting to US $ 1.14 million.
PARRY CHEMICALS LIMITED (PCL):
The Company (a100%
subsidiary) earned a total revenue of Rs. 5.700 Millions for the year ended
March 31, 2012 and Profit after Tax was Rs. 0.300 Millions. The Company had
during the year subscribed a sum of Rs. 95.000 Millions for acquiring
additional 95,00,000 Millions equity shares of Rs. 10/- each of PCL.
PCL, during the year
had acquired equity 4,58,249 equity shares of Sabero Organics Gujarat Limited
representing 1.35% from the stock market.
COROMANDEL BRASIL LIMITADA:
The Limited Liability
Partnership in Brazil incurred net loss of Brazilian Reals 0.56 million
(equivalent to Rs. 15.800 Millions) for the year ended December 31, 2011. The
Company had during the year made a further investment of Rs. 13.800 Millions in
this company.
JOINT VENTURE COMPANIES
TUNISIAN INDIAN FERTILISERS COMPANY LIMITED (TIFERT)
TIFERT, a joint
venture Company, was formed in Tunisia in 2008, to set up a phosphoric acid
plant. The plant which was originally expected to be commissioned by the first
quarter of 2011 got delayed mainly due to the political developments in Tunisia
last year. With the restoration of normalcy in Tunisia, it is expected that
this plant would be commissioned by second half of 2012-13. The delay has
caused cost overrun to the extent of US $ 30 million and the Board of Directors
of The Company in terms of the JV agreement had approved an additional
investment of US$ 5 million towards its share by way of equity/loan. The
Company's strategic investment towards 15% equity stake in TIFERT is aimed at
securing uninterrupted supply of phosphoric acid for the Company's operations.
COROMANDEL GETAX PHOSPHATES PTE LIMITED
The JV Company based
in Singapore formed for leveraging opportunities for rock phosphate
mining/sourcing continued scouting for opportunities during the year.
COROMANDEL SQM (INDIA) PRIVATE LIMITED
The Joint Venture
Company, formed to set up a WSF Plant at Kakinada, Andhra Pradesh has commenced
its operations during the year. The plant is capable of producing various
grades of Water Soluble Fertilisers and this will enhance the product range
offerings in Specialty Nutrients by the Company resulting in overall increase
in market share of Coromandel in this segment. The Company earned a total
income of Rs. 38.100 Millions for the year ended March 31, 2012 and Net loss
was Rs. 7.000 Millions.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC SCENARIO
In 2011-12,
India's Agricultural Economy performed well with food grain production
estimated to touch 252.5 million tones compared with 245 million tonnes in
2010-11. Agricultural Input Industry performed well despite a highly volatile
international raw material prices and generally depreciating Indian currency
besides low rainfall in the southern states.
Domestic GDP on
the other hand continued to slide down on a quarter on quarter basis during the
year with growth of 5.3% in Q4 versus growth of 9.2% in the same period of
2010-11. After witnessing growth rate of 8.4% in each of the two preceding
years, Indian economy grew by 6.5% in 2011-12 (2.8% growth in agriculture and
related sectors) and is estimated to grow by 6.5% in 2012-13 (3% growth
estimated in agriculture and related sectors).
While the growth
has slowed down as compared with previous years, India continues to be among
the frontrunners in the global arena. With agriculture and services continuing to
perform well, slow growth rate was mainly attributable to weakening industrial
growth. The financial crisis in Europe, sluggish growth in other industrialized
countries like the USA, stagnation in Japan and hardening of international
prices of crude oil had impacted industrial growth in India. Coupled with this,
domestic monetary policy, particularly raising the repo rate to control
inflation resulted in slowing down of investment and growth particularly in the
Industrial sector.
Agriculture even
though shrunk in its proportion to GDP to 12.9%, it is a vital sector which
provides livelihood for more than 50% of the population. The area under food
grains production has declined over the last three decades. In yield parameters
India is still lagging behind global levels in most crops. A holistic approach,
simultaneously working on agricultural research and development, dissemination
of technology and provision of quality agricultural inputs like seeds,
fertilisers and pesticides would be important besides making adequate
investment in agricultural marketing infrastructure and water conservation.
Indian farmers are
mostly small and marginal farmers with small and fragmented landholdings. The
average farm size in the country has declined over the years which pose a
challenge in terms of adoption of farm mechanization. Pooling of many
landholdings may yield better economies of scale for which laws for leasing
land should be put in place. It is necessary to have comprehensive and
coordinated efforts for improving farm production and productivity of food
grains, developing rural infrastructure, renewing thrust on irrigation sector,
strengthening marketing infrastructure and supporting investment in RandD.
These efforts will rejuvenate agricultural sector and bring about inclusive
growth of the economy.
The growth and
progress of Indian agriculture depends largely on the progress, and
precipitation through the south west monsoon. During the year 2011-12, the
country received 101% of the long period average, but the numbers of rainy days
were fewer, causing long gaps in precipitation or floods. The initial estimates
on the progress of monsoon for 2012-13 are varying, between a sub-normal to
normal monsoon.
ORGANISATION
Coromandel is a flagship
Company of the Murugappa Group and is a subsidiary of EID Parry (India) Limited
(EIDP) which holds 62.69% of the equity share capital in the Company. The
Company is engaged in the business of Farm Inputs comprising of Fertilisers,
Crop protection, Speciality Nutrients and Organic compost. The Company is also
engaged in rural retail business in the States of Andhra Pradesh and Karnataka
through a chain of 641 retail centres set up in various parts of these States.
The Company has 8 manufacturing facilities located in Andhra Pradesh, Tamil
Nadu, Gujarat and Jammu & Kashmir. The Company's products are marketed all
over the country through an extensive network of dealers and its own retail
centres.
During the year,
the Company, along with its wholly owned subsidiary, acquired 74.57% stake in
Sabero Organics Gujarat Limited, a crop protection company which has exposure
in all three segments i.e. Fungicides, Insecticides and Herbicides in crop
protection business. Sabero has manufacturing facility at Sarigam and another
formulation plant is being set up in Dahej.
The Company has
following subsidiaries and joint ventures for its various business initiatives.
_ Sabero Organics
Gujarat Limited, India
_ Sabero Organics
America Ltda, Brazil
_ Sabero Australia
Pty Limited, Australia
_ Sabero Europe BV
_ Sabero Argentina
S.A., Argentina
_ Parry Chemicals
Limited, India
_ CFL Mauritius
Limited, Mauritius
_ Coromandel
Brasil Limitada, Brazil
_ Coromandel Getax
Phosphates Pte Limited, Singapore
_ Coromandel SQM
(India) Private Limited, India
_ Tunisia Indian
Fertilisers Company Limited, Tunisia
In addition, the
Company also holds 14% equity stake in Foskor Pty Limited, South Africa,
through combined holding of Coromandel and CFL Mauritius Limited. The
Management Discussion and Analysis given below discusses the key issues
concerning each of the Strategic Business Units (SBUs) forming part of the Farm
Inputs segment of the Company and of the Retail Business.
FARM INPUTS:
FERTILISERS SBU:
Coromandel with a production
capacity of 3.260 Millions tones of Phosphatic fertilisers is the leading
private sector player in phosphatic fertilisers in India. The Company produces
and sells Phosphatic (P) and Potassic (K) Fertilisers of various grades ranging
from Di Ammonium Phosphate (DAP), Comple Fertilisers with different composition
of nutrients to Single Super Phosphate (SSP). The Company also distributes
imported DAP, Potash, Urea and NPKs. The Company's fertilisers are sold under
the well established brand names viz. 'Gromor', 'Godavari', 'Paramfos', 'Parry
Gold' and 'Parry Super'. The Company's fertiliser manufacturing facilities are
located at Visakhapatnam and Kakinada in Andhra Pradesh and Ennore and Ranipet
in Tamil Nadu.
INDUSTRY SCENARIO:
Global fertiliser
demand in 2011 grew by 2.8% enabled by high food prices and strong demand for
agri commodities. World nutrient consumption in 2011 reached 177 million tonnes
(in terms of nutrients), rose by 3% as compared to 2010. However, global
fertiliser demand and price levels remained sluggish since December 2011 and
right into the first quarter of 2012. Globally the fertilizer industry has
operated at 83% of the installed capacity compared with 82% in 2010. Fertiliser
demand in 2012-13 is expected to grow but at moderate level due to uncertain
economic condition in Europe and lower commodity prices.
India continues to
remain one of the key drivers for growth of fertiliser demand in the World.
India recorded the highest sale of chemical fertilisers of 580 Lakh MT, registering
an increase of 10 Lakh MT, over the earlier year.
Import of various
complex fertilisers registered a sharp increase of 270%. India saw an
unprecedented import of low grade NP fertilisers like 20:20 to fill up the
shortfall of DAP imports.
Consumption of
fertilisers in terms of nutrients crossed 287 Lakh MT compared to 280 Lakh MT
last year. Imports of fertilisers also shot up significantly especially in the
II half of the year. Production of phosphatic fertilisers remained almost at
the same levels in 2011-12 as compared to 2010-11.
International
price of DAP and other fertilisers went up during I half and DAP prices reached
peak level of US $ 677 CFR India before softening during the last quarter to US
$ 550 CFR India level. Urea/Ammonia prices were very volatile during the year
and softened during the year end. Prices of MOP hardened during the year from
US $ 420 to US $ 490/MT.
GOVERNMENT POLICIES:
The subsidy rates applicable
(` per kg) for financial year 2012-13 are as under: Nutrient Based Subsidy
(NBS) Policy announced by GOI for phosphatic fertilisers continued for the
second year and this has helped the government to reduce the subsidy bill
during 2011-12. During the year industry had to raise MRPs to recover increase
in input costs from the market besides absorbing the impact of currency
depreciation. With softening of international prices of fertilisers in the last
quarter, Government has reduced the subsidy rates for 2012-13 to bring down the
subsidy outgo. Since introduction of NBS the Government has saved a substantial
amount of subsidy outgo in the past two years. The proposed subsidy rates for
2012-13 translate in to effective subsidy of Rs.14350/MT of DAP as against
existing subsidy rate of Rs.19763/MT and Rs.14400/MT for MOP as against
existing rate of Rs.16054/MT.
NBS policy is one
of the most important reforms introduced in the fertiliser sector in the last
thirty years. This reform is not only helping Indian Government to save subsidy
but is also helpful in ensuring judicious use of fertiliser by farmers. It is
well established that India does not have any natural resource to manufacture P
and K fertilisers and hence it is very important that Government has to put in
place a suitable mechanism to fund acquisition of natural resources of P and K.
Further, Government also needs to leverage its trade relations with resource
rich countries to secure long term supplies of P and K fertilisers for Indian
companies to address food security concerns of India.
Fertiliser
consumption is increasing at a steady pace, while the domestic capacity of
fertiliser manufacturers is not increasing due to a lack of fresh investments
resulting in increased imports of fertilizers. Lower investor interest is due
to limitations in availability of natural gas, phosphoric acid and other key
inputs.
A working
committee has been set up by the Planning Commission to study on performance of
eleventh five year plan and the key issues to be addressed in twelfth five year
plan. The study includes the assessment of required raw materials to meet the
demand of all type of fertilisers in the country, assessment of various inputs
and infrastructural facilities required during the next 5 years to fill the gap
between demand and supply, review the present status of various taxes and
duties and suggest measures for their realisation.
Some of the policy
initiatives announced in the year beginning 2012 including tax incentives with
respect to investments in fertiliser sector is likely to kick-start new
investments. It is further expected that the urea subsidy regime could be moved
to nutrient-based subsidy (NBS). This will bring in a uniform subsidy regime
for all fertilisers to ensure that there is a balanced use of all major
nutrients. Current policy of differential subsidy for "N" fertilisers
may lead to imbalanced use of fertilisers.
During the year,
the Government through Reserve Bank of India has bought back remaining fertiliser
bonds issued in lieu of subsidy and also compensated 50% of the loss on such
sale of bonds. The industry is still representing for full reimbursement of the
loss on the buyback of bonds. Government has reaffirmed that with new NBS
policy for phosphatic fertilisers and reasonable allocation of subsidy,
fertiliser industry will not be paid its dues by bonds in future. However key
concern on policy front continues to be lack of adequate budgetary provisions
for payment of subsidies.
FERTILISER SBU PERFORMANCE:
The Company
achieved a highest ever sales volume of 32.73 Lakh MT (24.78 Lakh MT of
manufactured fertilisers and 5.3 Lakh MT of imported phosphatic fertilisers/
MOP and 2.65 Lakh MT of Urea) as against 30.61 Lakh MT during the previous
year.
However,
production during the year was affected mainly on account of short receipt of
phosphoric acid especially
from Tunisia due
to domestic developments in that region. The Company has optimized the
production and also resorted to imported phosphatic fertilisers to maintain
supplies to farming community which also enabled it to achieve a highest ever
market share.
All fertiliser
plants have improved on their operational efficiencies over last year and the
performance has been satisfactory, inspite of shortfall in production due to
delayed and short supply of key raw materials and volatility in international
prices. During the year, the Company has resorted to revision in fertiliser
MRPs mainly to offset the input cost increase and rupee depreciation. Timely
purchase of raw materials and pro-active forex management coupled with faster
liquidation of materials has helped the Company in improving the overall
performance.
As part of its tie
up with Shell International Petroleum Company Limited (Shell) for manufacture
of Sulphur enhanced fertilisers, the Visakhapatnam plant successfully commenced
trial production of DAP 4S using Shell's Thiogro technology. The company has
also introduced new complex grade of fertilizer 14:28:14, to cater to the needs
of farmers in its various markets.
The Company has
been investing continuously in meeting its obligations towards protecting the
environment. Towards this step, during the year a new Effluent Treatment Plant
(ETP) has been commissioned at Visakhapatnam plant. The Company's Kakinada and
Visakhapatnam plants were awarded 5 star rating by the British Safety Council
for its Health and Safety Management System. The Company will continue to
undertake investments in further improving the safety culture at its Plants.
The project for
installation of an additional granulation plant at Kakinada ("C"
train project) has been progressing well and is expected to be commissioned by
second half of 2012. The investments include augmenting ammonia, sulphuric acid
and phosphoric acid tanks and other infrastructure to meet the increased
storage and handling requirements of these raw materials.
The movement of
Fertilisers sold during the year was governed by movement orders issued by
Government of India which helped the Company to expand its market footprint
thus positioning it well for the proposed sale of 40 Lakh MT with new
"C" train coming on stream. Company now operates in 9 States with
over 1 Lakh MT of fertiliser sales in a year. Coromandel continues to have a significant
presence in Andhra Pradesh, Tamil Nadu, Karnataka, Orissa, Chattisgarh,
Maharashtra, Madhya Pradesh, Uttar Pradesh and West Bengal.
CROP PROTECTION -SBU:
INDUSTRY SCENARIO
Globally agrochemicals
industry witnessed growth with the business touching $ 45 billion for the year
($ 38 billion during 2010) boosted by good demand and stable prices for
generics across the globe. Industry achieved a growth of 16% in nominal terms
and 8% in real terms over previous year supported by higher commodity prices.
Global business was largely driven by adequate rainfall and disease incidence
in Latin American countries, early winter in Europe and good growth in Asia.
All the leading companies achieved double-digit growth against last year,
supported by stable prices for high volume products like Glyphosate. MNCs
continued investing significantly in genetically modified (GM) seeds segment,
which continued to grow at significant rate though no new approval has been
given in for GM technology in any new crop.
Indian industry
witnessed record sowing of cotton during the year though there was late onset
of monsoon. Due to insufficient rains in South, consumption suffered in
critical states like AP, Maharashtra and Karnataka. Industry also witnessed
banning of Endosulfan and withdrawal of license for manufacturing of
Chloro+Cyper during the
year. Despite such
setbacks Industry is estimated to have sustained the market size of last year,
due to growth from Northern and Eastern regions where monsoon was normal.
Prices of all
critical crops like cotton, paddy and chillies ruled lower than previous year
while groundnut and soyabean were stable. Due to increased acreage of paddy in
East and good weather for wheat in North, food grains production in the country
is expected to touch the highest level this year, demonstrating the growing
resilience of Indian agriculture against weather vagaries.
CROP PROTECTION SBU PERFORMANCE
In pursuit of its
vision to build a significant presence globally, the Company acquired M/s
Sabero Organics Gujarat Ltd. This strategic acquisition has catapulted the
Company into top 5 companies in the branded formulation business in India and
provided access to global markets and helped expand its basket of captive
technicals.
The SBU achieved a
turnover of Rs.4410.000 Millions, despite sudden ban on Endosulfan by Supreme
Court at the beginning of the year and unfavorable weather in its critical
states in second half. The Company could cover the void left by Endosulfan
(close to 10% of previous year turnover) through successful change in its
product mix and scale-up of high margin specialties and other captive
technicals.
Formulations
business performed well to achieve record sales of brands of Specialties and
captive technicals through its wide channel network and Retail chain, through
intensive branding. Launch of Buprofezin technical in its captive range and
leveraging on captive technicals from Sabero Organics helped the SBU mitigate
the loss of Endosulfan effectively.
Access to product
registrations available for Sabero range of technicals and reorganization of
teams globally has
laid a strong
platform for the SBU to build its global presence in existing and new markets.
Increased availability of wider range of captive technicals has made the SBU a
strong player in domestic technicals sales spacealso.
SBU with its
strategic sourcing tie-ups in China and registrations for new technicals is set
to grow faster in Latin America, the fastest growing markets, through its
operations based in Brazil.
SPECIALITY NUTRIENTS – SBU
INDUSTRY/ COMPANY'S PERFORMANCE
Speciality
Nutrients division comprising of three segments - Secondary & Micro
nutrients, Water Soluble Fertilisers (WSF) and Organic Manure registered a
growth of 31% over previous year, despite difficult seasonal and market
conditions. The Company continues to be a market leader in Bentonite Sulphur
and registered a growth of 14% over last year in this segment. The Company
successfully entered into institutional business in this segment. Drought
during Kharif in major states like AP, Karnataka and Maharashtra followed by
failure of Rabi in these states severely impacted the consumption. However, by
virtue of the intensive field level demand generation activities, the Company
was able to retain the leadership position in this segment.
As regards WSF
segment, the increase in price of bulk fertilizers like DAP, NPK complexes and
MOP has resulted in a mixed response from the market. In the traditional WSF
segment like grapes, the farmers increased the proportion of WSF in their total
fertiliser programme where as in new segments like field crops the consumption
dropped significantly. However the market for WSF has shown positive signs of
accelerated growth during the last two years. The new WSF plant which was set
up as a joint venture with SQM, Chile has commenced its operations in March
2012. This enables the Company to increase the market share in this segment
with increased volumes and new product offerings.
In order to
improve soil health, the Company had started marketing compost. The current
market size is 10 lakh MTs with a year on year industry growth of 20-30%. The Company
has achieved a sales volume of 1.6 Lakh MTs registering a growth of 33% over
previous year. The Company has its presence in both Municipal Solid Waste
Compost and Pressmud segments. The Company has launched many variants to these
products including variants like KASH, Phos Gold and N-Rich which were
introduced during the year.
RETAIL SBU
The retail
business in Agri inputs has consolidated well and the new strategic business
areas like organic products and seeds received good response from the market.
The Retail turnover has grown by 11% during the year. However restructuring of
the business portfolios in Retail was done to strategically focus more on Agri
input businesses and exit the life style products business.
During the year,
the Company has added 200 agri retail centres in AP and Karnataka and with this
expansion presently there are 641 stores in operation. The business has shown
improved performance over the previous year and the Company is in the process
of further expanding its retail network in Karnataka and plans to enter into
Maharashtra.
To study the Mana
Gromor Centres linkage with farming community, an independent study was
commissioned through AC Neilson for estimating Brand Equity index. This has
shown 'Mana Gromor' brand an equity Index of 5 on 10 point scale, while a score
of 3 and above is considered as very strong brand.
The branding
efforts made by retail team has been recognized by CMO Asia and world Brand
Congress and given three best brand promotion awards to Mana Gromor Retail
during the Asia Retail Congress in Mumbai. These three awards are in
recognition of a) Most effective use of interactive rural marketing, b) Best
brand loyalty marketing campaign and c) Holistic marketing for rural brand
deployment.
OUTLOOK
Demand for
fertiliser, crop protection and crop nutrition are expected to grow up as
demand for food keeps increasing. With the increasing pace of urbanization and
population growth and shrinking of arable land, India has to take various
initiatives to increase the productivity and fulfill the needs of the growing
population. This calls for increased usage of fertiliser and crop protection to
improve yields. Increasing crop prices in both domestic and international
markets will improve farmer profitability and will support the growth of
fertilisers, crop protection and crop nutrition. Indian fertiliser industry is
growing at an average growth rate of 5% to 6% p.a in volume terms.
Government has
announced the reduction in Nutrient based subsidy rates applicable for 2012-13
for all phosphatic and potassic fertilisers. Any change in the international
prices and currency depreciation may warrant revision in farm gate prices and
this may pose challenge to phosphatic and potassicfertilisers with Urea
continuing under retention price scheme. It is expected that revision in
Minimum support prices for crops to be announced by the Government in the
ensuing season will absorb the fertiliser price increase to a greater extent.
Ensuring timely
availability of key raw materials is necessary for maximising the production
and this continues to be a key focus area for the Company. The Company is
always looking out for new sources of raw materials and global tie up to manage
the situation.
The 'C' train
expansion project and other infrastructural facilities like ammonia storage
tank, phosphoric acid storage tank, bagging facilities and railway siding at
Kakinada plant is under way and is expected to be commissioned by second half
of 2012-13. This will enable the Company to take the production capacities
closer to 40 Lakh tonnes.
In the crop
protection business, the Company will continue to focus on specialities and
will scale up sale of formulations based on captive technicals including
additional range being manufactured by Sabero Organics. Increased reach through
retail outlets augurs well for scaling up branded formulation business and
Company will be focussing on developing strong brands for key molecules to stay
ahead of competition. The Company will also leverage on the global network of
Sabero Organics to scale up export of technicals and will continue to focus on
registrations in the key market segments.
The Speciality
Nutrient business is all geared up to expand the business in all segments. The
new WSF plant at Kakinada, set up in joint venture with SQM Chile was
commissioned in 2011-12. This will enable the Company to scale up the volumes
of WSF and also to introduce new products in this segment. The Company is
focussed to improve the business in this segment by forming crop based units
with dedicated teams to address the special needs of potential crop segments.
The Company is in the process of introducing new variants in organic business
segment.
Rural Retail business
is poised to further expand its reach to Karnataka and Maharashtra. The Company
has commenced its retail operations in Karnataka by opening 75 stores in 2011-
12 and is planning to expand further in Karnataka and enter into Maharashtra in
the later years. These retail centres continues to provide all agri inputs
along with advisory services including farm mechanisation in rural areas.
FINANCE
The Company's
overall financial performance for the year 2011-12 has been good. The total
revenue grew by 29% in 2011-12 as compared to the previous year. The Company's
PBT before prior period subsidy income and exceptional items has moved up from
Rs. 7620.000 Million to Rs. 9590.000 Million, registering a growth of 26%. The
PBT after considering prior period subsidy income and exceptional items is Rs.
970 Million as compared to previous year Rs. 9880.000 Million.
The Company
generated Rs. 11080.000 Million (2011: Rs. 10240.000 Million) of cash surplus
from its operations, before changes in working capital and after adjusting for
the changes in working capital the net cash generated from operations is Rs.
1100.000 Million (2011: Rs. 8390.000 Million). The Company's net worth
increased during the year and was at Rs. 23710.000 Million as on 31 March 2012
compared to Rs. 19040.000 Million as on 31 March 2011.
During the year,
the Company incurred Rs. 1860.000 Million towards capital expenditure including
Rs. 1090.000 Million on "C" train and expansion facilities at
Kakinada.
During the year,
the Company along with its wholly owned subsidiary has acquired 74.57% equity
stake in Sabero Organics Gujarat Limited involving cash outgo of Rs. 4031.000
Million. Further, the Company has paid a non-compete fees of Rs. 355.300
Million to the erstwhile Indian promoters of Sabero Organics Gujarat Limited
which has been charged off to the Statement of Profit and Loss as an
exceptional item.
Pursuant to the
notification of the Government of India to buy back the Fertiliser Companies'
Government of India Special Bonds in two equal tranches during 2010-11 and
2011-12 through Reserve Bank of India and to share at least 50% of loss on such
buy back of fertiliser bonds, the Company has sold the special bonds with an
aggregate face value of Rs. 9976.000 Million (Rs. 4988.000 Million each in the
years 2011-12 & 2010-11) and incurred a loss of Rs. 527.500 Million in
2011-12 (2010-11: Rs. 371.800 Million), net of compensation received from GOI.
Consequently, the provision towards mark to market loss made earlier on such
bonds amounting to Rs. 688.900 Million (2010-11: Rs. 688.900 Million) has been
reversed.
During the year,
the members of the Company approved the transfer/assigning of the lease rights
on the land located at Navi Mumbai to the prospective buyers.
During the year,
the Board approved, subject to the approval of shareholders and regulatory
authorities, issue of bonus debentures. The Company has obtained approvals of
the Scheme from National Stock Exchange and Bombay Stock Exchange for issue of
one 9% Unsecured Redeemable Nonconvertible Fully Paid Bonus Debenture of Rs. 15
each for every equity share from the General Reserve, and has filed the Scheme
with the Hon’ble High Court of Andhra Pradesh.
The Company has
been resorting to prudent mix of rupee and foreign currency borrowings to
finance its working capital requirements and tied up long term ECB loans to
fund capital projects. The Company's long term debt: equity ratio continues to
remain very healthy and the cash and bank balance as at the year end includes
Rs. 9070.000 Million of temporary surplus retained in short term bank
deposits/current accounts. The Company's long term credit rating by 'CRISIL'
was reaffirmed at 'AA+ (stable)' and short term debt rating at P1+.
CONTINGENT
LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)
a) Guarantees:
(i) The Company
has provided guarantee to third parties on behalf of its subsidiary CFL
Mauritius Limited - Rs.671.600 Millions (2011: Rs.588.700 Millions) in respect of
which the contingent liability is Rs.203.500 Millions (2011: Rs.271.900
Millions).
(ii) The Company
has provided a guarantee towards the borrowing of Tunisian Indian Fertilisers
S.A., Tunisia (TIFERT), a joint venture company, up to Rs.2633.000 Millions
(2011: Rs.2308.000 Millions) in respect of which the contingent liability is
Rs.2388.700 Millions (2011: Rs.1641.900 Millions).
b) Claims against
the Company not acknowledged as debt
(Rs.
in Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
In respect of matters under dispute: |
|
|
|
Excise duty |
26.200 |
26.000 |
|
Sales tax |
7.800 |
2.100 |
|
Income tax |
25.300 |
0.000 |
|
Others |
134.400 |
108.100 |
The amounts shown in
the item (a) represent guarantees given in the normal course of business and
not expected to result in any loss to the Company on the basis of the
beneficiaries fulfilling their obligations as they arise. The amounts in item
(b) represent best estimate and the uncertainties are dependent on the outcome
of the legal processes initiated by the Company or the claimant as the case may
be.
c) Other money for
which the Company is contingently liable
(Rs.
in Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
In respect of assignment of receivables from fertiliser dealers |
250.000 |
0.000 |
|
In respect of
assignment/ sale of trade and subsidy receivables where option to buy-back rests with the Company |
2000.000 |
0.000 |
The Management expects
to realise all the amounts reflected above in the normal course of business.
Further, out of the amounts stated in (ii) above, the Company has since
discharged Rs.159.600 Millions.
STATEMENT OF STANDALONE AND CONSOLIDATED UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2012
(Rs.
In Millions)
|
|
Particulars |
Stand-alone
results |
||
|
|
Quarter
Ended |
Nine
Months ended |
||
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
1 |
Income
from operations |
|
|
|
|
|
(a) Net
sales/income from operations (net of excise duty) |
23939.900 |
25410.200 |
65801.100 |
|
|
(b) Other
operating income |
149.500 |
91.500 |
318.200 |
|
|
Total income from operations (net) |
23089.400 |
25501.700 |
66119.300 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of
materials consumed |
14825.400 |
14975.800 |
41128.600 |
|
|
b)
Purchases of stock-in-trade |
3185.500 |
10447.500 |
14918.900 |
|
|
c) Changes
in inventories of finished goods, work-in- process and stock-in-trade |
|
|
|
|
|
|
303.100 |
(6502.000) |
(6435.300) |
|
|
d)
Employee benefits expense |
516.300 |
528.200 |
1549.000 |
|
|
e)
Depreciation and amortisation expense |
151.400 |
142.000 |
434.900 |
|
|
f) Other
expenses |
3081.900 |
2718.900 |
8337.200 |
|
|
Total expenses |
22063.600 |
22310.400 |
59933.300 |
|
3 |
Profit
from operations before other income, finance costs and exceptional items
(1-2) |
1023.800 |
3191.300 |
6186.000 |
|
4 |
Other
income |
144.400 |
193.200 |
517.900 |
|
5 |
Profit
before finance costs and exceptional items (3+4) |
1170.200 |
3384.500 |
6703.900 |
|
6 |
Finance
costs |
464.200 |
378.000 |
1269.900 |
|
7 |
Profit
after finance costs but before exceptional items (5-6) |
706.000 |
3006.500 |
5434.000 |
|
8 |
Exceptional
items |
- |
- |
- |
|
9 |
Profit
before tax (7+8) |
706.000 |
3006.500 |
5434.000 |
|
10 |
Tax
expense |
19.500 |
670.000 |
1130.100 |
|
11 |
Net Profit after tax (9-10) |
686.500 |
2336.500 |
4303.900 |
|
12 |
Minority
interest |
|
- |
- |
|
13 |
Net Profit after taxes and minority
interest (11-12) |
686.500 |
2336.500 |
4303.900 |
|
14 |
Paid-up
equity share capital (Face value-7l per equity share) |
282.900 |
282.900 |
282.900 |
|
15 |
Paid-up
debt capital (Face value - 715 pet debenture) |
4242.300 |
4242.300 |
4242.300 |
|
16 |
Reserves
(excluding revaluation reserves) as per Balance Sheet of previous accounting
year |
|
|
|
|
17 |
Debenture
redemption reserve |
- |
- |
- |
|
18 |
Earnings
per share (of 71 each) (for the period - not annualised) |
|
|
|
|
|
- Basic (7) |
2.43 |
8.26 |
15.22 |
|
|
- Diluted (7) |
2.42 |
8.24 |
15.17 |
|
A |
Particulars of Shareholding |
|
|
|
|
1 |
Public
Shareholding |
|
|
|
|
|
- Number
of shares |
102,353,554 |
102378,194 |
102,353,554 |
|
|
-
Percentage of shareholding |
36.174% |
36.157% |
36.174% |
|
2 |
Promoters
and Promoter group Shareholding a) Pledged/encumbered |
|
|
|
|
|
-Number of
shares |
10,000 |
10,000 |
10,000 |
|
|
-Percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
0.006% |
0.006% |
0.006"!. |
|
|
-Percentage
of shares (as a % of the total share capital of the Company) |
0.004% |
0.004% |
0.004% |
|
|
b)
Non-encumbered |
|
|
|
|
|
-Number of
shares |
180,585,664 |
180,585,664 |
180,585,664 |
|
|
-Percentage
of shares (as a u u of the total shareholding of
promoter and promoter group) |
99.994% |
99.994% |
99.994% |
|
1 |
-Percentage
of shares (as a % of the total share capital of |
|
|
|
|
|
the
Company) |
63.822% |
63.839% |
63.822% |
|
|
Particulars |
Quarter Ended
31.12.2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
15 |
|
|
Disposed of during the quarter |
15 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1.
The above financial results are drawn in accordance with the
accounting policies consistently followed by the Company.
2.
The above results were reviewed and recommended by the Audit
Committee and approved by the Board of Directors at their meeting held on 24
January 2013. The Statutory Auditors have carried out a limited review of these
financial results
3.
During the quarter, pursuant to the exercise of stock options
by certain employees under the 'ESOP 2007' scheme, the Company has allotted
75,360 (Quarter ended 31 December 2011:190,892) equity shares of Re. 1 each at
the respective exercise price.
4.
The Company has recognised subsidy income as per the
prevalent Nutrient Based Subsidy Policy (NBS). Net sales/ income from
operations for the quarter and nine months ended 31 December 2012 includes Rs.
Nil and Rs. 1073.700 Millions
respectively (quarter and nine months ended 31 December 2011: Rs.115.500 Millions and Rs.
407.600 Millions
respectively) relating to earlier periods
5.
During the previous quarter, the Company has issued and
allotted 282,817,658 9% Unsecured Redeemable Non-convertible Fully Paid Bonus
Debentures of ?15 each for every equity share, aggregating Rs. 4242.300 Millions to
the shareholders by appropriating the General Reserve through a Scheme of Arrangement
(Scheme) approved by Hon'ble High Court of Andhra Pradesh and other relevant
authorities. Further, in terms of the accounting treatment set out in the
Scheme, dividend distribution tax paid on the aforesaid Debentures aggregating Rs.
688.200 Millions was
also transferred from the General Reserve.
6.
The Consolidated Results for the quarter and nine months
ended 31 December 2012 include consolidated results of its subsidiaries i.e.
Sabero Organics Gujarat Limited (including its subsidiaries), Parry Chemicals
Limited, Dare Investments Limited, CFL Mauritius Limited and Coromandel Brasil
Limitada and, the joint venture companies i.e. Tunisian Indian Fertiliser SA
(TIFERT), Coromandel Getax Phosphates Pte Limited and Coromandel SQM (India) Private
Limited The consolidated results for the quarter and nine months ended 31
December 2012 include Management accounts of CFL Mauritius limited, Coromandel
Brasil limitada, Dare Investments limited and Coromandel Getax Phosphates Pte.
Limited. In respect of TIFERT, the Management accounts upto period ended 30
September 2012 have been received and accounts for the quarter ended 31
December 2012 are yet to be received. These matters have been referred to by
the Auditors in their report for the quarter and nine months ended 31 December
2012.
7.
The Company, its subsidiaries and its joint ventures are
primarily engaged in the farm inputs business, which in the context of
Accounting Standard 17, is considered the only significant business segment.
8. Figures of the previous quarters/period/year have been regrouped and reclassified, wherever considered necessary.
FIXED ASSETS:
·
Land
·
Buildings
·
Railway siding
·
Plant and equipment
·
Office equipment
·
Furniture and fixtures
·
Vehicles
WEBSITE DETAILS
PRESS RELEASE
INDIA RATINGS AFFIRMS `AA+` RATINGS ON COROMANDEL INTERNATIONAL
(14-MAR-13)
India Ratings and Research has affirmed Coromandel International's (CIL) long-term issuer rating at 'IND AA+'. The outlook is stable.
The affirmation reflects CIL's continuing strong market position in the Indian phosphatic and complex fertilizers industry, a track record of stable EBITDA margins relative to industry peers’ despite changing regulatory landscape and input price volatility and its comfortable liquidity position. The ratings also reflect CIL's efforts, through acquisitions, to diversify its product portfolio and improve its geographic reach, although this would weaken its net leverage position (net adjusted debt/ EBITDA) in the near term.
The ratings are also supported by CIL's nearly completed new plant in Kakinada (expected commissioning in 4Q13) which would add 0.8-1MMTPA to its existing capacity and help increase revenue and market share. Also, the likely commissioning of the company’s new phosphoric acid plant in Tunisia in the near term would provide an adequate supply of phosphoric acid to its expanded capacity (0.18MMTPA through its JV).
COROMANDEL INTERNATIONAL TO ACQUIRE LIBERTY PHOSPHATE
JANUARY 26, 2013
Hyderabad-based Coromandel International Limited, a fertiliser and crop protection company of the Murugappa Group, on Thursday signed a definitive share purchase agreement to acquire RR Dhamani-promoted Liberty Phosphate Limited (LPL).
Under the agreement, the company will purchase 56.28 per cent of the promoters stake in LPL at Rs 241 per share and further acquire 26 per cent stake from public at a price according to the takeover regulations prescribed by the Securities and Exchange Board of India.
The total cost of acquisition, including the share purchase through the open offer route, would be between Rs 348 crore and Rs 375 crore. The entire fund for this acquisition would be arranged from internal accruals, according to Kapil Mehan, managing director of Coromandel International. LPL is one of the largest single super phosphate (SSP) players in the country with an installed capacity of 960,000 tonnes spread among six plants. It commands a market share of 14 per cent. A couple of more plants of the company are also under execution, he said. With the acquisition of LPL, it’s total SSP capacity would rise to 1.2 million tonnes a year.
“This acquisition completes the full range of products that the farmer would require from our end,” A Vellayan, executive chairman of Murugappa Group, said. Apart from strengthening the geographical footprint of the company, the acquisition also helps de-risk the international volatility as LPL almost completely depends on local rock phosphate reserves among other inputs, he said.
COROMANDEL INTERNATIONAL COMMISSIONS THIRD FERTILIZER UNIT AT KAKINADA
Kakinada (Andhra Pradesh), Mar 23: Coromandel International Limited, a manufacturer of a wide range of fertilizers, crop protection products and specialty nutrient products, has commissioned its third complex fertilizer plant (C- Train) here on Friday evening, according to a press release.
“The plant has undergone commissioning activity and we have started the production,” announced Kapil Mehan, the Managing Director, Coromandel International Limited. “The new plant is capable of manufacturing all grades of complex fertilizers and this will strengthen our position in phosphate fertilizer segment. This investment is consistent with our constant endeavour to provide farmers quality fertilizers to help enhance their productivity”.
Coromandel International Limited markets around 2.9 million tonnes. The Company has also introduced a range of specialty nutrient products including organic fertilizers. It is the second largest manufacturer of Malathion and only the second manufacturer of Phenthoate. Coromandel has also ventured into the retail business setting up more than 640 rural retail centres in Andhra Pradesh and Karnataka.
The Company clocked a turnover of Rs 98230.000 millions during 2011-12. Coromandel is a part of the Rs. 22 3140.000 millions Murugappa Group, adds the release.
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. 54.39 |
|
|
1 |
Rs. 82.32 |
|
Euro |
1 |
Rs. 69.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
78 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.