MIRA INFORM REPORT
|
Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SAVITA OIL TECHNOLOGIES LIMITED (w.e.f
24.08.2009) |
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|
|
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Formerly Known
As : |
SAVITA CHEMICALS LIMITED |
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Registered
Office : |
66/67, Nariman Bhavan, Nariman Point, Mumbai - 400021, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
19.07.1961 |
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Com. Reg. No.: |
11-012066 |
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Capital Investment
/ Paid-up Capital : |
Rs.146.056 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24100MH1961PLC012066 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS37352A |
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PAN No.: [Permanent Account No.] |
AAACS7934A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of speciailty oil like white oils and transformer oils. |
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No. of Employees
: |
2000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
|
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 17000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Directors are reported as well
experienced and knowledgeable businessmen. There appears some dip in the profitability of the company during
2012. 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 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating = AA |
|
Rating Explanation |
High degree of safety and lowest credit risk |
|
Date |
16.02.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk |
|
Date |
16.02.2012 |
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 / Corporate and Marketing Office 1 : |
66 / 67, Nariman Bhaavan, Nariman Point, Mumbai-400021, Maharashtra,
India. |
|
Tel. No.: |
91-22-22883061/2/3/4 / 66246200 / 66246228 |
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Fax No.: |
91-22-22029364 |
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E-Mail : |
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Website : |
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Corporate and Marketing Office 2 : |
Lubes Division, 74, Maker Chamber VI, Nariman Point, Mumbai - 400021, Maharashtra,
India. |
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Tel. No.: |
91-22-22027452/22850092 |
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E-Mail : |
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Corporate and Marketing Office 3 : |
Savita Polymers Limited Refineries
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Factory 1 / Corporate and Marketing Office 4 : |
17/17A, Thane Belapur Road, Turbhe, Navi Mumabai-400703, Maharashtra,
India |
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Factory 2 / Corporate and Marketing Office 5 : |
Survey No. 10/2, Kharadpada, Post Naroli, Silvassa - 396230, Dadra
Nagar Haneli, India. |
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Central Region Branch : |
190, Bharat Nagar, J. K. Road, P.O. Piplani, Bhopal-462021, Madhya
Pradesh, India. |
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Tel. No.: |
91-755-4280087 |
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Fax No.: |
91-755-2757987 |
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E-Mail : |
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Eastern Region Branch : |
209, Acharya Jagdish Chandra Bose Road, 144 Karmani Estate, 4th
Floor, Kolkata-700017, West Bengal, India. |
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Tel. No.: |
91-33-30249873/77 |
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Fax No.: |
91-33-22871872 |
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E-Mail : |
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Southern Region Branch : |
Plot No. 45, P and T Colony, Trimulgherry, Secunderabad - 500015,
Andhra Pradesh, India. |
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Tel. No.: |
91-40-27741246 |
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Fax No.: |
91-40-27747880 |
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E-Mail : |
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Northern Region Branch : |
1004, Akash Deep, Barakhamba Road, New Delhi-110001, India. |
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Tel. No.: |
91-11-23316577 / 23320425 |
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Fax No.: |
91-11-23312447 |
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E-Mail : |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Gautam N Mehra |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
MBA and BA |
|
Experience : |
29 Years |
|
Other Directorships
: |
1. Savita Polymers Limited 2. Savita Petro-Additives Limited 3. Savita Finance Corp. Limited 4. Khatri Investments Private Limited 5. Mansukhmal Investments Private Limited 6. Naved Investment and Trading Company Private Limited 7. Kurla Investment and Trading Company Private Limited 8. Basant Lok Trading Company 9. Chemi Pharmex Private Limited |
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Name : |
Mr. C. V. Alexander |
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Designation : |
Whole-time Director |
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Qualification : |
MA, L.L.B |
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Experience : |
48 Years |
|
Other Directorships
: |
1. Savita Polymers Ltd. 2. Kurla Investment and Trading Co. Pvt. Ltd. |
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|
|
Name : |
Mr. N. B. Karpe |
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Designation : |
Non-Executive Independent Director |
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Qualification : |
B.Com, L.L.B., F.C.A |
|
Experience : |
16 years |
|
Other Directorships
: |
1. Aptech Ventures Limited, Mauritius 2. Aptech Investment Enhancers Limited, Mauritius 3. Aptech Global Investments, Mauritius 4. Aptech Philippines Inc., Philippines 5. Aptech Limited 6. BNP Paribas Asset Management India Private Limited 7. India SME Asset Reconstruction Company Limited 8. Maya Entertainment Limited 9. BJB Career Education Company Limited |
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Name : |
Mr. S. R. Pandit |
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Designation : |
Non-Executive Independent Director |
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Qualification : |
B.Com, F.C.A |
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Experience : |
31 years |
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Other Directorships
: |
India SME Asset Reconstruction Company Limited |
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Name : |
Mr. Harit A. Nagpal |
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Designation : |
Non-Executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Uday Chandrakant Rege |
|
Designation : |
Company Secretary |
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Qualification : |
B. Pharm., M.M.S., A.C.S. |
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Experience : |
19 years |
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|
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Name : |
Mr. S. M. Dixit |
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Designation : |
Chief Financial Officer |
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Qualification : |
B.Com., A.C.A., A.I.C.W.A. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
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|
9582570 |
65.62 |
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|
866943 |
5.94 |
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|
10449513 |
71.56 |
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Total shareholding of Promoter and Promoter Group (A) |
10449513 |
71.56 |
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(B) Public Shareholding |
|
|
|
|
|
|
|
|
1329732 |
9.11 |
|
|
499 |
0.00 |
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|
454374 |
3.11 |
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|
1784605 |
12.22 |
|
|
|
|
|
|
347969 |
2.38 |
|
|
|
|
|
|
1657294 |
11.35 |
|
|
360386 |
2.47 |
|
|
2316 |
0.02 |
|
|
2316 |
0.02 |
|
|
2367965 |
16.22 |
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Total Public shareholding (B) |
4152570 |
28.44 |
|
Total (A)+(B) |
14602083 |
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) |
14602083 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of speciailty oil like white oils and transformer oils. |
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Products : |
Liquid Paraffin
Transformer Oil
Lubricants
Waxes
Automotive and Industrial Lubricants
For Leather finishings, Water based paints
and Printing links
Optic Fibre Cable Filling Compound
White Oil
Petroleum Jellies
Cable Filling Compound
Emulsifiable (Oxidized) Polyethylene Wax
|
GENERAL INFORMATION
|
No. of Employees : |
2000 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
G. M. Kapadia and Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Enterprises where
key management personnel or relatives of key management personnel have
control or significant influence: : |
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CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Share |
Rs.10/- each |
Rs.300.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14602083 |
Equity Share |
Rs.10/- each |
Rs.146.021
Millions |
|
7100 |
Forfeited Shares |
|
Rs. 0.035
millions |
|
|
Total |
|
Rs.146.056 millions |
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 |
146.056 |
146.056 |
146.056 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4231.274 |
3805.534 |
3051.617 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4377.330 |
3951.590 |
3197.673 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
310.417 |
529.082 |
495.933 |
|
|
2] Unsecured Loans |
149.046 |
162.445 |
162.445 |
|
|
TOTAL BORROWING |
459.463 |
691.527 |
658.378 |
|
|
DEFERRED TAX LIABILITIES |
184.432 |
349.716 |
346.715 |
|
|
|
|
|
|
|
|
TOTAL |
5021.225 |
4992.833 |
4202.766 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2073.049 |
1972.221 |
1861.305 |
|
|
Capital work-in-progress |
16.619 |
50.608 |
29.172 |
|
|
|
|
|
|
|
|
INVESTMENT |
227.715 |
490.712 |
461.423 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4341.256
|
2991.523
|
2293.434 |
|
|
Sundry Debtors |
4434.266
|
3531.896
|
2797.488 |
|
|
Cash & Bank Balances |
291.139
|
315.434
|
203.128 |
|
|
Other Current Assets |
3.348
|
0.000
|
0.000 |
|
|
Loans & Advances |
558.685
|
412.484
|
532.942 |
|
Total
Current Assets |
9628.694
|
7251.337
|
5826.992 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5591.892
|
3993.402
|
3342.353 |
|
|
Other Current Liabilities |
940.226
|
377.266
|
321.949 |
|
|
Provisions |
392.734
|
401.377
|
311.824 |
|
Total
Current Liabilities |
6924.852
|
4772.045
|
3976.126 |
|
|
Net Current Assets |
2703.842
|
2479.292
|
1850.866 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5021.225 |
4992.833 |
4202.766 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
19105.230 |
15475.076 |
11780.139 |
|
|
|
Other Income |
108.414 |
112.672 |
89.181 |
|
|
|
TOTAL (A) |
19213.644 |
15587.748 |
11869.320 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
15404.420 |
11672.713 |
8713.105 |
|
|
|
Purchase of Traded Goods |
202.425 |
0.000 |
0.000 |
|
|
|
(Increase)/Decrease in Inventories |
(328.074) |
0.000 |
0.000 |
|
|
|
Personnel |
245.189 |
229.606 |
189.271 |
|
|
|
Others |
2307.616 |
1759.703 |
1432.158 |
|
|
|
TOTAL (B) |
17831.576 |
13662.022 |
10334.534 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1382.068 |
1925.726 |
1534.786 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
127.499 |
68.932 |
46.738 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1254.569 |
1856.794 |
1488.048 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
252.050 |
252.958 |
203.088 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1002.519 |
1603.836 |
1284.960 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
322.216 |
510.501 |
421.124 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
680.303 |
1093.335 |
863.836 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2548.787 |
1904.870 |
1386.444 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
69.000 |
110.000 |
90.000 |
|
|
|
Dividend |
219.000 |
292.042 |
219.031 |
|
|
|
Tax on Dividend |
35.500 |
47.376 |
36.379 |
|
|
BALANCE CARRIED
TO THE B/S |
290.559 |
2548.787 |
1904.870 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Sales |
3118.805 |
2103.017 |
1676.298 |
|
|
|
Freight and Insurance |
96.617 |
87.306 |
61.985 |
|
|
TOTAL EARNINGS |
3215.422 |
2190.323 |
1738.283 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
13040.563 |
9067.370 |
7356.174 |
|
|
|
Capital Goods |
4.232 |
3.120 |
0.000 |
|
|
TOTAL IMPORTS |
13044.795 |
9070.490 |
7356.174 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
46.59 |
74.88 |
59.16 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
5250.900 |
4909.300 |
4675.900 |
|
Total Expenditure |
5044.300 |
4618.400 |
4492.600 |
|
PBIDT (Excl
OI) |
206.600 |
290.900 |
183.300 |
|
Other Income |
22.300 |
220.700 |
28.900 |
|
Operating
Profit |
228.900 |
511.600 |
212.200 |
|
Interest |
29.900 |
34.500 |
19.500 |
|
Exceptional
Items |
565.000 |
0.000 |
0.000 |
|
PBDT |
764.100 |
477.100 |
192.700 |
|
Depreciation |
60.200 |
63.200 |
64.000 |
|
Profit
Before Tax |
703.800 |
413.900 |
128.700 |
|
Tax |
225.900 |
105.200 |
39.500 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
477.900 |
308.800 |
89.200 |
|
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 |
477.900 |
308.800 |
89.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.54
|
7.01
|
7.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.25
|
10.36
|
10.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.57
|
17.39
|
16.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.41
|
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.69
|
1.38
|
1.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39
|
1.52
|
1.46 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
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 |
OPERATIONS
The Company’s sales turnover touched a new high of Rs.21175.700 Millions against Rs.17204.700 Millions in the year 2010-11 resulting in a growth of 23%. The sales volume remained more or less steady at 2,54,799 KLs/MTs during 2011-12 as against 2,56,837 KLs/MTs achieved in 2010-11. The net profit of the Company however decreased to Rs.680.300 Millions as against Rs.1093.300 Millions for the previous year, recording a decline of 38%. Both the sales volume and the profitability were adversely impacted due to the sharp depreciation of the Indian Rupee vis-a-vis the US Dollar commencing from September 2011.
During the Financial Year 2011-12, the Company’s Wind Power Plants situated in the states of Maharashtra, Karnataka and Tamil Nadu generated 87.54 million units as against 73.10 million units generated in the previous year.
During the year, the Company added 5 MW of wind power by commissioning four wind turbines of 1,250 KW capacity each in the state of Tamilnadu. With this, the total installed capacity of Wind Power of the Company now stands at 48.15 MW.
Also during this year, the Company’s 8.25 MW Wind Power Projects situated in the states of Maharashtra and Tamil Nadu have been registered with UNFCCC under CDM. This is expected to generate approximately 15,000 CERs annually for a period of 10 years.
The National Load Dispatch Centre (NLDC), the central nodal agency for the Renewable Energy Certificate (REC) scheme, issued 2,057 RECs to the Company’s 3 MW Wind Power Project at Satara, Maharashtra in the year, which were traded on the IEX Power Exchange.
During the year, the Company’s Technical Collaboration Agreement for Idemitsu Products was terminated. The Company has the right to manufacture and market the Idemitsu Products for a further period of 3 years at its discretion post this termination. The termination of this agreement would only marginally impact the sales volume of the Company. This impact will be less than 2% of the total sales volume of the Company based on the sales figure for the Financial Year 2011-12. The Technical Collaboration Agreement for Genuine Products with the same collaborators however, continues to remain in force.
MANAGEMENT DISCUSSION
AND ANALYSIS
A. INDUSTRY STRUCTURE
AND DEVELOPMENT
I. Petroleum
Products:
This segment for the Company comprises of 3 product groups; Transformer Oils, Liquid Paraffins / White Oils and Lubricating Oils. Base Oils are the main raw material for all of these product groups which are imported from various parts of the world and are also sourced domestically to some extent. These Base Oils are basically refined fractions derived from Crude Oils.
The demand for Transformer Oils is determined by the development, growth and expansion of the power generation and transmission infrastructure in the country, whereas the market for cosmetics, pharmaceuticals and personal care products decides the prospects for Liquid Paraffins and White Oils.
The Lubricant Products market comprises of the Automotive, Industrial and Marine sectors. The general industrial and economic conditions in the country decide the demand for this sector. The automobile sector consisting mainly of personal and commercial transportation and agricultural equipment categories decide the demand for the automotive lubricants. The extent of industrial activity and general economic environment decide the scope for industrial and marine lubricants.
Both domestic and multinational companies compete in the market in the Petroleum Products segment.
II. Wind Power:
Power is one of the most critical components of infrastructure affecting economic growth of the nation. During the period 2020-2050, the consumption of fossil fuels is likely to peak and then start to decline. As the availability of fossil fuels reduces and prices increase, other renewable energy options are expected to become more competitive than fossil fuels. With the country’s rising needs, the demand for power is growing exponentially thereby making the timely development of this sector imminent. Therefore, renewable energy is expected to play a key role in accelerating development and sustainable growth. Renewable Energy sources are addressing three of the Country’s pressing issues; bridging the supply shortages, reducing and lowering carbon emissions and enhancing energy security. Wind power has led this as the dominant renewable technology providing greater independence from fossil fuels and climate change.
Despite many challenges, Indian wind sector experienced a growth of 22% over the preceding year. During this year, India added wind power installed capacity of 3,163 MW taking the cumulative installed capacity to 17,320 MW.
B. OPPORTUNITIES AND
THREATS
I. Petroleum
Products:
The turmoil in the world economy which started in the last leg of the year 2010-11 continued to carry on in the year 2011-12. India being no exception, the GDP growth which was at 8.5% in the year 2010-11 has significantly reduced due to a number of external and internal economic factors. Continuing high inflation, depreciating rupee and increasing crude oil prices all have contributed heavily towards this cause.
However, all is not lost for the Indian economy. If the Indian government succeeds in restarting its economic reform process and is able to tackle the high fiscal and current account deficits, low industrial growth, volatile foreign exchange scenario, lower capital inflows and high inflationary pressures, the fall in GDP growth can not only be arrested, but also be reversed.
II. Wind Power:
The recent launch of the Renewable Energy Certificate (REC) mechanism has provided significant boost for the Wind Power Industry. REC is a market based instrument launched with the aim of promoting investments in renewable energy and facilitating cost-effective compliance with state Renewable Purchase Obligation (RPO) targets, in particular those states that are deficient in renewable energy resources. The domestic wind equipment manufacturing industry is witnessing an influx of new players along with the expansion of the existing players’ portfolio which is offering more competitive choices to buyers. New entrants are set to change the market dynamics and will lead to higher efficiencies, new technologies and lower prices; all this put together will aid the market development.
Though wind energy sector has grown significantly in the recent years, there are some challenges which need to be addressed to sustain and further promote growth in the sector: (a) Procurement of land for development of wind projects is a contentious issue in most of the states which needs to be reviewed in order to streamline land procurement; (b) Availability of road connectivity in certain hilly regions or far flung regions pose a challenge to logistics and transportation; (c) Availability of adequate transmission infrastructure for evacuation of power, apart from the integration of wind energy in the transmission grid thereby improving the transmission infrastructure; (d) Comprehensive study of wind patterns and other climatic factors; (e) Non-availability of windy sites; (f) Open access for sale of power to third parties.
C. SEGMENT WISE
PERFORMANCE
I. Petroleum
Products:
The performance in the Petroleum Products sector was more or less steady with aggregate sales of Transformer Oils, White Oils, Lubricating Oils and other specialties at 2,54,799 KLs/MTs against 2,56,837 KLs/MTs in the previous year, resulting in revenue of Rs.21175.700 Millions against Rs.17204.700 Millions in the previous year. This sector was adversely affected due to the sharp depreciation of the Rupee against the US Dollar, commencing from second half of the year.
II. Wind Power:
The Company added 5 MW wind power project under REC scheme in its portfolio during the year. Four Turbines each having a capacity of 1,250 KW were commissioned in the state of Tamil Nadu. With this, the total installed capacity in Wind Power Division of the Company now stands at 48.15 MW.
During the financial year 2011-12, the Company’s Wind Power Plants situated in the states of Maharashtra, Karnataka and Tamil Nadu generated 87.54 million units against 73.10 million units generated in the previous year.
Also during this year, the Company’s 8.25 MW Wind Power Projects situated in the states of Maharashtra and Tamil Nadu have been registered with UNFCCC under CDM. This project is expected to generate approximately 15,000 CERs annually for a period of 10 years.
During this year, National Load Dispatch Centre (NLDC), the central nodal agency for the Renewable Energy Certificate (REC) scheme, issued 2,057 RECs to the Company’s 3 MW Wind Power Project at Satara, Maharashtra. These RECs were traded on the IEX (Indian Energy Exchange) Power Exchange.
D. FUTURE OUTLOOK
I. Petroleum
Products:
Though the outlook for the Indian economy at present looks somewhat gloomy in line with the world economies, the future may not be as bleak as it is made out to be. This is because the Indian economy has certain inherent strengths and resilience to withstand these downturns.
The power sector as in the past continues to show growing demand and this should result in increasing demand for Transformer Oil in the year 2012-13. However, the volatile crude oil prices, slowing automotive sector and depreciating rupee could dampen the demand for the Lubricant Products. With slowing down of the economy, the spending of the general masses may not increase much, which in turn may affect the growth potential for Liquid Paraffins and White Oils.
II. Wind Power:
With huge unexplored wind potential sites in India, the prospects for wind energy sector are promising. As per Centre for Wind Energy Technology, only 30% of the wind energy potential has been exploited. Ministry of New and Renewable Energy (MNRE) is working on the scope and prospects for repowering or replacement of old turbines with best-in-class equipment. Repowering leads to better utilization of wind-rich sites through installation of latest technology. New technologies and approaches to WRA (Wind Resource Assessment) need to be established for selection of sites. There is also an need to acquire depth along the entire value chain with new manufacturing activity in the component segment, several critical elements of which are currently being imported. Though still in the nascent stages of development, India’s coastline offers enormous potential for offshore wind farms.
MNRE is striving to bridge Country’s energy deficit by increasing the share of clean, sustainable, new and renewable energy sources. Wind energy continues to be the single largest component of the Renewable Energy portfolio, accounting for nearly 70 per cent of all Green Power. Indian Wind Power is definitely on the growth trajectory and the most promising renewable energy resource.
CONTINGENT LIABILITIES NOT PROVIDED FOR
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Letters of Credit |
226.947 |
626.456 |
|
Guarantees/Bonds |
195.187 |
179.297 |
|
Corporate guarantee * |
480.000 |
240.000 |
|
Disputed demands |
|
|
|
i) Excise and Customs |
250.688 |
159.254 |
|
ii) Sales Tax |
103.209 |
60.041 |
|
iii) Income Tax |
74.118 |
63.711 |
|
iv) Others |
11.565 |
5.194 |
* Represents corporate guarantee given to banks for credit facilities of Savita Polymers Limited
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30th JUNE 2012
Rs. In Millions
|
Particulars |
Quarter ended 30.6.2012 (Reviewed) |
|
|
|
|
1. Income from
operations |
5199.295 |
|
a) Net Sales / Income from Operations (Net of excise duty) |
51.620 |
|
b) Other Operating Income |
5250.915 |
|
Total Income From
Operations (Net) |
|
|
2. Expenses |
|
|
a) Cost of materials consumed |
4097.661 |
|
b) Purchases of stock-in-trade |
43.184 |
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
69.362 |
|
d) Employee benefits expense |
78.179 |
|
e) Depreciation and amortisation expense |
602..34 |
|
f) Other Expenses |
755.934 |
|
Total Expenses |
5104.554 |
|
3. Profit/(Loss) from
operations before Other Income, finance costs and exceptional items (1-2) |
146.361 |
|
4. Other Income |
22.283 |
|
5. Profit/(Loss) before finance costs and
exceptional items (3+4) |
168.644 |
|
6. Finance Costs |
298..47 |
|
7. Profit/(Loss) from ordinary activities
after finance Costs but before exceptional items (5-6) |
138.797 |
|
8. Exceptional Items |
565.028 |
|
9. Profit/(Loss)
from ordinary activities before tax (7+8) |
703.825 |
|
10. Tax expense |
225.890 |
|
11. Net profit/(Loss)
from ordinary activities after tax (9-10) |
477.935 |
|
12. Paid-up equity share capital (Face value of 10/- each) |
146.021 |
|
13. Reserves Excluding Revaluation Reserves |
- |
|
14. Earning per share (Basic and Diluted ) |
32.73 |
|
|
|
|
A. Particulars of
Shareholding |
|
|
1. Public
Shareholding |
|
|
Number of Shares |
41,52,570 |
|
Percentage of Shareholding |
28.44 |
|
2. Promoters and
promoter Group Shareholding |
|
|
(a) Pledge / Encumbered |
|
|
Number of Shares |
Nil |
|
(b) Non-encumbered |
|
|
Number of Shares |
1,04,49,513 |
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
|
Percentage of shares (as a % of the total share capital of the company) |
71.56 |
|
|
|
|
B. Investor
Complaints |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed off during the quarter |
1 |
|
Remaining unresolved at the end of the quarter |
1 |
Notes :
1. Previous quarter’s / year’s figures have been regrouped / rearranged wherever necessary to conform to those of current quarter / year classification.
2. Loss on account of foreign exchange fluctuation amouting to Rs. 341.352 Millions has been recognised in the statement of profit and loss for the quarter ended 30th June, 2012 in accordance with the accounting policy consistenly followed by the company.
3. Exceptional Income represents compensation received on termination of technical collaboration agreement for Idemitsu branded products, the sale of which contributed less than 2% of the total sales volume in the preceeding financial year.
4. The statutory auditors have carried out a limited review of the financial result for the quarter ended 30th June 2012.
The above unaudited financial results (provisional) were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on Saturday, 21st July, 2012.
UNAUDITED SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30th JUNE
2012.
|
Particulars |
Quarter ended 30.6.2012 (Reviewed) |
|
1. Segment
Revenues |
|
|
Petroleum Products |
5165.521 |
|
Wind Power |
101.426 |
|
Other Unallocated |
6.251 |
|
Net Sales
/ Income from Operations |
5273.198 |
|
|
|
|
2. Segment
Results |
|
|
Profit before taxation and Finance Costs for each segment |
|
|
Petroleum Products |
716.782 |
|
Wind Power |
36.974 |
|
Total |
753.756 |
|
Less : i) Finance Costs |
29.847 |
|
ii) Other Unallocated expenditure |
20.084 |
|
Net of unallocated revenue |
49.931 |
|
Total Profit before
Tax |
703.825 |
|
|
|
|
3. Capital
Employed : |
|
|
(Segment Assets - Segment Liabilities) |
|
|
Petroleum Products |
3974.756 |
|
Wind Power |
925.233 |
|
Unallocated Capital Employed |
(44.725) |
|
Total |
4855.264 |
Notes:
Previous quarter’s/year’s figures have been regrouped/ rearranged wherever necessary to conform to those of current quarter/year classification.
FIXED ASSETS
Tangible Assets
- Freehold Land
- Leasehold Land
- Buildings
- Wind Power Plants
- Plant and Equipment
- Furniture and Fixtures
- Office Equipments
- Vehicles
Intangible Assets
- Software Licences
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] 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 : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
61 |
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.