1. Summary Information
|
Country |
India |
||
|
Company Name |
TATA CHEMICALS LIMITED |
Principal Name 1 |
Mr. Ratan N. Tata |
|
Status |
Good |
Principal Name 2 |
Mr. R. Gopalakrishnan |
|
Registration # |
11-002893 |
||
|
Street Address |
Bombay House, 24, Homi Modi Street, Fort,
Mumbai – 400 001, Maharashtra, India |
||
|
Established Date |
23.01.1939 |
SIC Code |
-- |
|
Telephone# |
91-22-22049131/ 1529 / 4359/ 22867407/ 66658282 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-22042947/ 5359 / 66658143 / 44 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Inorganic Chemicals |
|
|
# of employees |
Approximately
4645 (3166 in India and 1479 overseas) |
Product Name 2 |
Fertilizers |
|
Paid up capital |
Rs.2,548,200,000/-
|
Product Name 3 |
-- |
|
Shareholders |
shareholding of Promoter and Promoter Group - 31.06 % Public shareholding - 68.94% |
Banking |
Bank of Baroda |
|
Public Limited Corp. |
YES |
Business Period |
74 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A (67) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
Mauritius |
Homefield International Private Limited |
|
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
29,320,900,000 |
Current Liabilities |
28,921,700,000 |
|
Inventories |
12,532,200,000 |
Long-term Liabilities |
24,594,300,000 |
|
Fixed Assets |
18,100,300,000 |
Other Liabilities |
5,057,600,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
58,573,600,000 |
|
Invest& other Assets |
48,792,500,000 |
Retained Earnings |
47,624,100,000 |
|
|
|
Net Worth |
50,172,300,00 |
|
Total Assets |
108,745,900,000 |
Total Liab. & Equity |
108,745,900,000 |
|
Total Assets (Previous Year) |
94,955,400,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
79,872,800,000 |
Net Profit |
5,866,000,000 |
|
Sales(Previous yr) |
63,328,600,000 |
Net Profit(Prev.yr) |
4,084,490,000 |
MIRA INFORM REPORT
|
Report Date : |
27.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
TATA CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
23.01.1939 |
|
|
|
|
Com. Reg. No.: |
11-002893 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.2548.200
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24239MH1939PLC002893 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT00053E MRTT00425F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Inorganic
Chemicals and Fertilizers. |
|
|
|
|
No. of Employees
: |
Approximately 4645 (3166 in |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
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 200000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Tata Group
company. It is a well established and a reputed company having a fine track
record. Financial position of the company appears to be sound. Trade relations
are reported as decent. Business is active. Payments are reported to be
regular and as per commitments. The company can be
considered good for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
AA+ (Long Term bank Facilities) |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
22.04.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
A1+ (Short Term bank Facilities) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
22.04.2013 |
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/ Corporate
Office : |
|
|
Tel. No.: |
91-22-22049131/ 1529 / 4359/ 22867407/ 66658282 |
|
Fax No.: |
91-22-22042947/ 5359 / 66658143 / 44 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Mumbai Marketing Office : |
|
|
Tel. No.: |
91-22-66437400 |
|
Fax No.: |
91-22-66437598 / 99 |
|
|
|
|
Factory 1 : |
Mithapur Plant Mithapur - 361 345, Okhamandal, |
|
Tel. No.: |
91-2892-665 991 / 665 992 |
|
Fax No.: |
91-2892-223 471 |
|
|
|
|
Factory 2 : |
Haldia Plant P.O. Durgachak, Haldia, District Purba, East Midnapore - 721 602, West
|
|
Tel. No.: |
91-3224-251 001 |
|
Fax No.: |
91-3224-252 220 / 252 223 |
|
|
|
|
Factory 3 : |
Babrala Plant Indira Dham, P.O. Box No.1, Babrala - 202 521, District Budaun, |
|
Tel. No.: |
91-5836-664 990 / 664 777/ 664 888 / 664 999 |
|
Fax No.: |
91-5836-664 218 |
|
|
|
|
Factory 4 : |
Nanded Plant Bio-fuel Works, Plot No.D-1, Krushnoor MIDC, Near Ghungrala Village,
Naigaon, Nanded - 431 709, |
|
|
|
|
Factory 5 : |
Tata Chemicals
Europe PO Box 4, Mond House, Northwich, Cheshire, CW8 4DT |
|
Tel. No.: |
+44 (0) 1606 724000 |
|
Fax No.: |
Fax: +44 (0) 1606 781353 Sales: +44 (0) 1606 724175 |
|
|
|
|
Factory 6 : |
Tata Chemicals
North America 100 Enterprise Drive Suite 701 Rockaway, NJ 07866 |
|
Tel. No.: |
(973) 599-5500 (800) 819-8568 |
|
Fax No.: |
(973) 599-550 |
|
|
|
|
Factory 7 : |
Tata Chemicals
Magadi P O Box 1 – 00205, Magadi, Kenya |
|
Tel. No.: |
254-20-6999000 |
|
Fax No.: |
254-20-6999358 |
|
|
|
|
Regional and Satellite
Office : |
Located at:
|
|
|
|
|
Overseas Location : |
|
|
Overseas Factory 1 : |
Tata Chemicals North America Inc. |
|
|
|
|
Overseas Factory 2 : |
Tata Chemicals Europe Limited Northwich West (Winnington) and Northwich East (Lostock) |
|
|
|
|
Overseas Factory 3 : |
Tata Chemicals Magadi Limited |
|
|
|
|
Overseas Factory 3 : |
UK - Salt British Salt Limited Middlewich Cheshire |
|
|
|
|
Regional and Satellite
Office : |
Located at:
|
|
|
|
|
Research and
development office : |
S No. 1139/1, Ghotavde Phata, Urawde Road, Pirangut Industrial Area, Mulshi, Pune - 412 108, Maharashtra, India |
|
Tel. No.: |
91-20-66549700 |
|
|
|
|
Centre for
agri-solutions and technology : |
Tata Krishi Vikas Kendra Campus, 10th |
|
|
|
|
Crop nutrition and
agri-business marketing office : |
C-43 , Sector 62, Noida – 201 309, |
|
Tel. No.: |
91-120-6663430 |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Ratan N. Tata |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
28.12.1937 |
|
Qualification : |
B.Sc.,
(Architecture) from |
|
Expertise in specific functional areas : |
Eminent industrialist with wide business experience
across variety of industries. |
|
Date of Appointment : |
11.04.1983 |
|
|
|
|
Name : |
Mr. R. Gopalakrishnan |
|
Designation : |
Vice-Chairman |
|
Date of Birth/Age : |
25.12.1945 |
|
Qualification : |
B.Sc., (Hons), B.Tech (Hons) in Electronic from IIT Khargpur |
|
Expertise in
specific functional areas : |
Wide experience in Marketing and General Management |
|
Date of Appointment : |
30.10.1998 |
|
Directorships in other Public Limited Companies* : |
|
|
|
|
|
Name : |
Mr. Nusil N. Wadia |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.02.1944 |
|
Qualification : |
Educated in |
|
Expertise in specific functional areas : |
Eminent industrialist with rich business
experience |
|
Date of Appointment : |
26.06.1981 |
|
Directorships in other Public Limited Companies* : |
|
|
|
|
|
Name : |
Mr. Prasad R. Menon |
|
Designation : |
Managing Director |
|
Qualification : |
B.E. (Chem) IIT Kharagpur |
|
Date of Birth/Age : |
23.01.1946 |
|
Experience : |
In Chemicals, Agro-Chemicals, Paints and
Fertilizer Industry |
|
Date of Appointment : |
30.10.2006 |
|
|
|
|
Name : |
Mr. Nasser Munjee |
|
Designation : |
Director |
|
Date of Birth/ Age : |
18.11.1952 |
|
Qualification : |
BSc (Hons.) and MSc (Economics)- |
|
Expertise in specific functional areas : |
Eminent Economist, Banker and Consultant on infrastructure |
|
Date of Appointment : |
25.09.2006 |
|
Directorships in other Public Limited Companies* : |
|
|
|
|
|
Name : |
Dr. Yoginder K. Alagh |
|
Designation : |
Director |
|
Date of Birth/ Age : |
14.02.1939 |
|
Qualification : |
Ph.D in Economics |
|
Expertise in specific functional areas : |
Eminent Economist with wide experience in policy making and planning |
|
Date of Appointment : |
25.09.2006 |
|
Directorships in other Public Limited Companies* : |
|
|
|
|
|
Name : |
Mr. Eknath A. Kshirsagar |
|
Designation : |
Director |
|
Date of Birth/Age : |
11.09.1941 |
|
Date of Appointment : |
26.11.2008 |
|
Qualification : |
Fellow Member of the Institute of Chartered Accountants in England and Wales |
|
Expertise in specific functional areas : |
Wide experience in the field of Corporate Strategy and structuring, Mergers and Acquisitions, valuations and feasibility |
|
Directorships in other Public Limited Companies* : |
|
|
|
|
|
Name : |
Dr. Y.S.P. Thorat |
|
Designation : |
Director |
|
Date of Birth/Age : |
11.11.1947 |
|
Qualification : |
|
|
Expertise in specific functional areas : |
In banking, rural credit cooperatives,
micro finance. |
|
Date of Appointment : |
08.01.2010 |
|
|
|
|
Name : |
Mr. Cyrus P.Mistry |
|
Designation : |
Director |
|
Date of Birth/Age : |
04.07.1968 |
|
Date of Appointment : |
30.05.2012 |
|
Qualification : |
B.E. (Civil) - Imperial College, UK, M.Sc. (Management - London Business School |
|
Expertise in specific functional areas : |
Wide business experience in variety of industries |
|
Directorships in other Public Limited Companies* : |
|
|
|
|
|
Name : |
Mr. Vijay Kelkar |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.05.1942 |
|
Date of Appointment : |
30.05.2012 |
|
Qualification : |
Ph.D from University of California |
|
Expertise in specific functional areas : |
Eminent economist with rich business experience |
|
Directorships in other Public Limited Companies* : |
|
|
|
|
|
Name : |
Mr. R. Mukundan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P.K. Ghose |
|
Designation : |
Executive Director and Chief Finance Officer |
KEY EXECUTIVES
|
Name : |
Mr. Rajiv Chandan |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
As on: 31.03.2013
|
Category of Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
78751692 |
30.91 |
|
|
374165 |
0.15 |
|
|
374165 |
0.15 |
|
|
79125857 |
31.06 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
79125857 |
31.06 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18910176 |
7.42 |
|
|
737331 |
0.29 |
|
|
74598 |
0.03 |
|
|
48758827 |
19.14 |
|
|
45579622 |
17.89 |
|
|
385128 |
0.15 |
|
|
384572 |
0.15 |
|
|
556 |
0.00 |
|
|
114445682 |
44.92 |
|
|
|
|
|
|
6953274 |
2.73 |
|
|
|
|
|
|
48311168 |
18.96 |
|
|
5602218 |
2.20 |
|
|
318079 |
0.12 |
|
|
318079 |
0.12 |
|
|
61184739 |
24.02 |
|
Total Public shareholding (B) |
175630421 |
68.94 |
|
Total (A)+(B) |
254756278 |
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) |
254756278 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Inorganic
Chemicals and Fertilizers. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Licensed
Capacity (Tonnes
) |
Installed
Capacity (Tonnes
$) |
|
Soda Ash |
1000000 |
917700 |
|
Sodium Bicarbonate |
75600 |
100000 |
|
Caustic Soda |
36000 |
36000 |
|
Liquid Chlorine |
31950 |
31950 |
|
Hydrochloric Acid |
N.A. |
64800 |
|
Bromine |
2520 |
2400 |
|
Hydrobomic Acid |
50 |
50 |
|
Vacuum Salt |
N.A. |
647500 |
|
Chemicals and other
Industrial Machinery |
5000 |
5000 |
|
Clinker |
N.R. |
825000 |
|
Cement |
440000 |
440000 |
|
Ammonia |
N.R. |
445500 |
|
Urea @@ |
N.R. |
742500 |
|
Sulphuric
acid # |
221500 |
221500 |
|
Phosphoric
acid # |
52700 |
52700 |
|
Sulphonic
Acid # |
N.A. |
12000 |
|
Sodium
Tripolyphosphate (STPP) # |
40000 |
50000 |
|
Diammonium
Phosphate (DAP) # |
670000 |
670000 |
|
Single
Super Phosphate (SSP) # |
165000 |
165000 |
$ As certified by the
Management and accepted by the Auditors.
# Licensed
capacity includes capacity under the Industrial Entrepreneurs Memorandum filed
with the Government and duly acknowledged by them under the scheme of
delicensing notified by the Government.
@@ After debottlenecking
expected per day production is likely to be around 3500 mtpd
N.A. Not
Applicable
N.R. Not Required
N.R. Not Required
|
Particulars |
Production/
Purchase (Tonnes)
|
|
Soda Ash |
696746 |
|
Sodium Bicarbonate |
78278 |
|
Caustic Soda |
10979 |
|
Liquid Chlorine |
2068 |
|
Hydrochloric Acid |
18188 |
|
Bromine |
1177 |
|
Vacuum Salt # |
597077 |
|
Pure Salt |
2886 |
|
Solar Salt |
-- |
|
Gypsum |
143819 |
|
Cement |
418866 |
|
Clinker |
385178 |
|
Ammonia |
636305 |
|
Urea ** |
1117153 |
|
Sodium Tripoly phosphate (STPP) |
10575 |
|
Diammonium Phosphate (DAP) |
208464 |
|
NPK ** |
361419 |
|
Single Super Phosphate ** |
140496 |
|
Sulphuric Acid |
176423 |
|
Phosphoric Acid |
11388 |
|
Others |
-- |
# Sales of Vacuum Salt
includes free issues under sales promotion schemes.
** Production figures include Bulk Production
GENERAL INFORMATION
|
No. of Employees : |
Approximately 4645 (3166 in |
|||||||||||||||||||||
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|
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|
Bankers : |
|
|||||||||||||||||||||
|
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|
|||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Solicitors : |
|
|
|
|
|
Subsidiaries : |
Direct
Indirect
|
|
|
|
|
Joint Ventures : |
Direct
Indirect
|
|
|
|
|
Associates : |
EPM Mining Venture Inc, Canada |
|
|
|
|
Promoter Group : |
Tata Sons Limited |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
270000000 |
Ordinary Shares |
Rs.10/- each |
Rs.2700.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
254756278 |
Equity Shares |
Rs.10/- each |
Rs.2547.600
Millions |
|
86,320 |
Forfeited shares |
|
Rs.0.600 |
|
|
Total |
|
Rs.2548.200 Millions |
Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
reporting period:
(Rs. in Millions)
|
Particulars |
Number of shares |
Amount |
|
Ordinary shares : |
|
|
|
At the beginning of the year |
25,48,42,598 |
2548.400 |
|
Issued during the year |
- |
- |
|
Outstanding at the
end of the year |
25,48,42,598 |
2548.400 |
|
Subscribed and paid
up: |
|
|
|
Ordinary shares : |
|
|
|
At the beginning of the year |
25,47,56,278 |
2547.600 |
|
Issued during the year |
- |
- |
|
Outstanding at the
end of the year |
25,47,56,278 |
2547.600 |
Based on approval of the members of the Company, in August 2010, the Company has issued 1,15,00,000 equity shares on a preferential basis to Tata Sons Limited (the promoter entity).
The equity shares of the Company have voting rights and are subject to the preferential rights as prescribed under law or those of the preference shareholders, if any. The equity shares are also subject to restrictions as prescribed under the Companies Act 1956.
Details of shares
held by each shareholder more than 5 % of shares
|
Ordinary shares
with voting rights |
Number of shares |
% Age |
|
(i) Tata Sons Limited |
4,93,06,423 |
19.35 |
|
(ii) Life Insurance Corporation of India. |
2,05,54,959 |
8.07 |
|
(iii) Tata Investment Corporation Limited |
1,57,53,501 |
6.18 |
|
(iv) Tata Global Beverages Limited |
- |
- |
Aggregate number and
class of shares allotted as fully paid up pursuant to contract(s) without payment
being received in cash, bonus shares and pursuant to schemes of amalgamation :
|
|
Number of shares |
Number of shares |
|
Ordinary shares
with voting rights |
|
|
|
(i) Scheme of amalgamation |
|
|
|
Hind Lever Chemicals Limited |
3,44,64,000 |
3,44,64,000 |
|
Tata Fertilisers Limited |
42,49,864 |
42,49,864 |
|
(ii) Contract without payment being received in
cash |
37,000 |
37,000 |
|
(iii) Bonus Shares by way of capitalisation of |
|
|
|
Securities premium account |
9,29,70,000 |
9,29,70,000 |
|
General reserve |
1,24,32,144 |
1,24,32,144 |
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 |
2548.200 |
2548.200 |
2433.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
47624.100 |
44858.600 |
40396.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
50172.300 |
47406.800 |
42829.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2489.300 |
2527.300 |
2492.400 |
|
|
2] Unsecured Loans |
22105.000 |
24564.600 |
26972.700 |
|
|
TOTAL BORROWING |
24594.300 |
27091.900 |
29465.100 |
|
|
DEFERRED TAX LIABILITIES |
886.700 |
1597.100 |
1902.200 |
|
|
|
|
|
|
|
|
TOTAL |
75653.300 |
76095.800 |
74196.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
18100.300 |
15875.800 |
15924.400 |
|
|
Capital work-in-progress |
2653.800 |
2995.300 |
2376.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
46138.700 |
49016.900 |
49055.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Foreign Currency Monetary Item Translation Difference |
0.000 |
0.000 |
78.900 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
12532.200
|
6963.000 |
6111.900
|
|
|
Sundry Debtors |
14858.300
|
7244.800 |
5816.000
|
|
|
Cash & Bank Balances |
8918.500
|
7987.600 |
7126.500
|
|
|
Other Current Assets |
1307.800
|
793.800 |
0.000
|
|
|
Loans & Advances |
4236.300
|
4078.200 |
2773.200
|
|
Total
Current Assets |
41853.100
|
27067.400 |
21827.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
17272.100
|
9880.400 |
6069.300 |
|
|
Other Current Liabilities |
11649.600
|
4964.300 |
5465.200
|
|
|
Provisions |
4170.900
|
4014.900 |
3531.900
|
|
Total
Current Liabilities |
33092.600
|
18859.600 |
15066.400 |
|
|
Net Current Assets |
8760.500
|
8207.800 |
6761.200
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
75653.300 |
76095.800 |
74196.900 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
79872.800 |
63328.600 |
54122.600 |
|
|
|
Operating Income |
0.000 |
0.000 |
643.800 |
|
|
|
Other Income |
2803.300 |
1080.300 |
1928.300 |
|
|
|
Reversal of Impairment |
0.000 |
0.000 |
0.000 |
|
|
|
TOTAL (A) |
82676.100 |
64408.900 |
56694.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
28649.100 |
21988.700 |
-- |
|
|
|
Manufacturing and Other Expenses |
-- |
-- |
45801.400 |
|
|
|
Purchases of Stock-in-trade |
21676.500 |
13089.200 |
-- |
|
|
|
Borrowing Costs (net) |
-- |
-- |
2057.300 |
|
|
|
Changes in Inventories of Work-In-progress, Finished goods and Stock-in-trade |
(4093.600) |
(100.700) |
-- |
|
|
|
Foreign exchange gain on borrowings |
-- |
-- |
1082.800 |
|
|
|
Employee Benefits Expense |
2397.500 |
2073.800 |
-- |
|
|
|
Other Expenses |
20723.400 |
17445.000 |
-- |
|
|
|
Expenditure Transferred to Capital Account |
0.000 |
(102.200) |
-- |
|
|
|
Compensation on Voluntary Retirement |
23.800 |
267.500 |
-- |
|
|
|
Provision for Diminution in the Value of Long Term Investments |
123.800 |
0.000 |
-- |
|
|
|
Impairment of Assets |
340.000 |
100.800 |
-- |
|
|
|
Notional Exchange Loss on Restatement of Long Term Borrowings |
843.400 |
0.300 |
-- |
|
|
|
TOTAL (B) |
70683.900 |
54762.400 |
48941.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11992.200 |
9646.500 |
7753.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2101.900 |
2014.900 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
9890.300 |
7631.600 |
7753.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2246.800 |
2044.600 |
1871.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7643.500 |
5587.000 |
5881.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1777.500 |
1502.510 |
1533.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5866.000 |
4084.490 |
4347.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
49434.200 |
18693.300 |
17333.200 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
2547.600 |
2547.600 |
2189.300 |
|
|
|
Tax on Dividend |
380.100 |
387.900 |
363.600 |
|
|
|
General Reserve |
586.600 |
408.500 |
434.800 |
|
|
BALANCE CARRIED
TO THE B/S |
21789.900 |
19434.200 |
18693.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
560.300 |
417.300 |
896.300 |
|
|
|
Interest |
0.000 |
4.700 |
11.400 |
|
|
|
Miscellaneous Income |
17.700 |
0.000 |
0.000 |
|
|
|
Dividend |
1002.800 |
109.800 |
240.400 |
|
|
TOTAL EARNINGS |
1580.800 |
531.800 |
1148.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, fuel and traded products |
38014.900 |
25296.100 |
17121.700 |
|
|
|
Stores, components and spare parts |
141.600 |
93.100 |
91.100 |
|
|
|
Capital Goods |
874.600 |
401.100 |
355.800 |
|
|
TOTAL IMPORTS |
39031.100 |
25790.300 |
17568.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
23.03 |
16.32 |
18.38 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
15376.000 |
24409.800 |
25455.500 |
19979.300 |
|
Total Expenditure |
13140.200 |
21087.300 |
22561.700 |
18158.500 |
|
PBIDT (Excl OI) |
2235.800 |
3322.500 |
2893.800 |
1820.800 |
|
Other Income |
409.300 |
433.300 |
1548.500 |
1455.700 |
|
Operating Profit |
2645.100 |
3755.800 |
4442.300 |
3276.500 |
|
Interest |
569.100 |
492.600 |
515.500 |
455.300 |
|
Exceptional Items |
(616.100) |
(263.500) |
(501.000) |
(310.000) |
|
PBDT |
1459.900 |
2999.700 |
3425.800 |
2511.200 |
|
Depreciation |
566.200 |
597.500 |
549.800 |
429.300 |
|
Profit Before Tax |
893.700 |
2402.200 |
2876.000 |
2081.900 |
|
Tax |
212.400 |
669.900 |
453.900 |
484.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
681.300 |
1732.300 |
2422.100 |
1597.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
681.300 |
1732.300 |
2422.100 |
1597.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
7.10
|
6.34 |
7.67
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.57
|
8.82 |
10.87
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.75
|
13.01 |
15.58
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.12 |
0.14
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.49
|
0.57 |
0.69
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.26
|
1.43 |
1.45
|
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 |
PERFORMANCE REVIEW
The net revenue from the operations of the Company increased from Rs. 63330.000 Millions to Rs. 79870.000 Millions, registering a growth of 26% over the previous year. Profit before tax was Rs. 7640.00 Millions whereas the Profit after tax was at Rs. 5870.000 Millions, an increase of 37% and 44% respectively, over the previous year.
The consolidated net revenue from the operations increased from Rs. 110610.000 Millions to Rs. 138060.000 Millions, an increase of 25% over the previous year. On consolidated basis the Profit before tax was Rs. 13830.000 Millions whereas the Profit after tax before Minority Interest and share of Loss in Associate was at Rs. 10400.000 Millions, an increase of 23% and 23%
UNSECURED LOAN:
(Rs. in Millions)
|
Particulars |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
LONG TERM
BORROWINGS |
|
|
|
Debentures |
2500.000 |
2500.000 |
|
Other Loans and Advances |
17125.700 |
20964.500 |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans repayable on demand |
2479.300 |
1100.100 |
|
Total |
22105.000 |
24564.600 |
|
Note: 10% Unsecured
Redeemable Non-Convertible Debentures face value Rs.1.0000 Millions each
redeemable at par on 2nd July, 2019. |
||
INORGANIC CHEMICALS
SEGMENT
INDIA OPERATIONS:
During the year, the Company’s Industrial Chemicals operation in India achieved sales of Rs.14830.000 Millions compared to sales of Rs.12020.000 Millions in the previous year. The year witnessed an increase in the Gross Sales Realisation (GSR) of soda ash as compared to the previous year, thereby absorbing some of the substantial cost pressures facing the business and reflecting the market supply-demand balance. Increased usage of some low-grade soda ash substitutes, use of cullets and slow down in dyes and other chemical sectors, coupled with de-stocking of the product pipeline by customers resulted in flat domestic demand for soda ash. While the domestic manufacturers maintained their position in the market, a slowdown was seen in imports from most major exporting sources. High energy costs and costs of other key inputs led to an increase in prices across the globe. A volatile exchange rate added to the adverse impact specifically in the Indian market.
The sodium bicarbonate market demand also remained flat this year on the back of a 15% growth in Financial Year (FY) 2010-11. While domestic players managed to strengthen their position, imports lost some ground in the market. The Company was able to consolidate the sale of Alkakarb® a variant and established Sodakarb®, a branded food-grade sodium bicarbonate.
The Company also commenced trading operations in the Inorganic Chemicals space to increase its product offering to customers and leverage its customer connect and distribution network.
Soda Ash
The Indian soda ash demand remained flat due to delays in commissioning of some float glass lines and increased consumption of low-grade substitutes. However, the Company’s strong relationship with customers and relentless focus on increasing already high service levels has enabled the Company to maintain its market share in spite of sluggish demand. The Company was able to increase its market share on the back of higher domestic soda ash sales volumes. Prices remained firm during the year and helped mitigate the input cost pressures. Key packaging automation projects were completed in the plant at Mithapur. The Company also upgraded the salt works during the year to cater to the increasing brine and raw salt requirements for the site.
The Company’s production of soda ash at Mithapur in FY 2011-12 was 690,181 Metric Tonnes (MT) as against the previous year’s figure of 696,746 MT on account of some constraints in the availability of raw materials and power. However, the Company achieved its highest ever sales in the Indian domestic market of 673,867 MT of soda ash during the year, as against 668,774 MT during the previous year.
After a slowdown during the current year, there are signs that the market demand will be boosted by commissioning of one float and another container glass line. Most of the float glass and container glass units, including two container glass lines commissioned in the previous year, are expected to operate at full capacity. Strengthening end-consumer demand for detergents, silicate and glassware industries will also translate into strong soda ash demand.
Sodium Bicarbonate
During the year, the Company achieved the highest ever sodium bicarbonate production of 80,285 MT which was 3% higher than in the previous year. Sales at 81,381 MT were 7% higher than the previous year, helping the Company achieve a market share of more than 50% in the domestic market. In FY 2011-12, the Company consolidated Alkakarb® and established Sodakarb® brands in the Indian bicarbonate market with consistent sales and encouraging demand pipeline. This is in line with the Company’s plan to offer value added branded variants as the domestic market matures and grows over a period of time and is consistent with its global portfolio for this product.
During the year under review, the market remained flat against a growth of 15% in the previous year. This slow down in sodium bicarbonate demand is attributed to reduction in leather exports and slump in the dyeing industry. While any major recovery in the dyes and leather segment is not expected, the full-swing commencement of commercial operations of a new application and a growing foods segment would help sustain double digit growth rates through the coming years.
Cement
The Company’s cement plant was set up in 1993 to handle solid wastes generated as by-products of soda ash manufacture. The Company uses technology to separate solid effluents and process them into Ordinary Portland Cement (OPC) and Masonry Cement. It enables the Company to convert its fly ash (generated in the power plant) into an useful construction material. While the upward trend in raw material and energy prices is likely to impact margins, the business will continue to focus on catering to the nearby markets for maximising realisations. During the year, the Company’s production of OPC cement was 435,809 MT and sales was 427,990 MT. It also achieved the highest-ever production and sale of Masonry Cement at 82,594 MT and 82,338 MT, respectively.
Consumer Products -
Salt and Related Products
During the year, the Consumer Products demonstrated strong performance by leveraging its distribution system and brand equity.
Iodised salt production in Mithapur was 621,933 MT, up 12% from 553,386 MT in the previous year. Overall, branded salt sales grew by 9% from 799,668 MT in FY 2010-11 to 868,525 MT in FY 2011-12. Sale of Tata Salt grew by 12% in volume from 583,839 MT in FY 2010-11 to 654,468 MT in FY 2011-12. Sale of I-Shakti grew from 201,888 MT in FY 2010-11 to 202,305 MT in FY 2011-12. Amongst the major brands, I-Shakti continues to maintain the most distributed brand after Tata Salt with a reach of 5.94 lac retail outlets. The Company’s market share of its salt portfolio has increased to 64.3% in the National Branded Salt segment, up from 61.8% in FY 2010-11.
I-Shakti cooking soda sales showed an encouraging growth of 28% with sales of 1,284 MT during the year as compared to 1,003 MT in the previous year.
during the year, sales turnover of the consumer business grew by 24% to Rs. 9580.000 Millions from Rs. 7720.000 Millions in the previous year.
The Consumer Products continue to work towards new product development through salt variants, bicarbonate based products and development of other categories.
OVERSEAS OPERATIONS
Tata Chemicals North
America Inc.,
During the year, Tata Chemicals North America Inc., (TCNA) achieved gross sales of USD 481 million (Rs. 23060.000 Millions) and EBITDA of USD 123 million (Rs. 5890.000 Millions). These were higher by 20.55% and 4% respectively over the previous year figures.
Soda Ash volumes during the year were 2,376,161 MT as against the previous year volume of 2,383,568 MT. Export sales volumes were up 6% as against the previous year, with sales to Latin America and Asia the primary drivers. Sales volumes to North American customers were 0.8% higher as against the previous year with increase in flat glass, offsetting declining volume demand in container glass, detergent and chemical end use markets. Price increases throughout the year were driven by high capacity utilisation rates in the US soda ash industry and raw materials cost increases at global synthetic soda ash producers.
Tata Chemicals Europe
Tata Chemicals Europe achieved sales turnover of GBP 190 million (Rs. 14520.000 Millions), registering an increase of 13.77% over the previous year. EBITDA was up to GBP 39 million (Rs. 2870.000 Millions). Low soda ash production volumes and some weak carbon quality were offset by good numbers from the salt business.
Soda Ash
Soda ash production was 804,627 MT, up by 3% as compared to the previous year with much improved production at Lostock but continued weak volumes from the Winnington factory due to a number of technical problems and enforced instability in plant management.
Sodium Bicarbonate
Sodium bicarbonate production was 101,785 MT, an increase of 2% over the previous year and the first time 100,000 MT mark has been exceeded at the Northwich factories.
Salt
Salt production of 466,546 MT and sales of 426,899 MT generated an EBITDA contribution of GBP 17.3 million (Rs. 312.21 Millions) while borehole debrining earned an EBITDA of GBP 1.9 million (Rs. 14520.000 Millions) as part of the contract with E - lectricite¯ de France in respect of gas storage.
Tata Chemicals Magadi
Limited
During the year, the Turnover was at USD 116.81 million (Rs. 5600.000 Millions) as against USD 97 million (Rs. 442 Millions) of the previous year, registering an increase of 20.42%. Sales volumes for both the Standard Ash (SAM) and Premium Ash (PAM) were at par with the previous year. Sales price at all regions were higher reflecting stronger capacity utilisation for global soda ash traders and raw material cost increases for synthetic soda ash producers.
The combined sales volumes for both PAM and SAM were 484,612 MT as compared to 482,731 MT for the previous year, an increase of 0.4%. EBITDA increased by 129% to USD 20.65 million (Rs. 990.000 Millions) from USD 9 million (Rs. 410.000 Millions) in the previous year. This is attributable to higher soda ash prices, improved energy and power efficiencies and controlled fixed costs.
Going forward, the company will continue its focus on plant optimisation through initiatives such as Lean Six Sigma and stringent cost control measures as well as cash conservation.
JOINT VENTURES
Indo Maroc Phosphore
S.A. (IMACID)
IMACID is a joint-venture company established in Morocco and is engaged in the manufacture of phosphoric acid. In IMACID, the Company has a 33.33% shareholding, together with two other equal partners, Chambal Fertilisers and Chemicals Limited and Office Cherifien Des Phosphates (OCP), Morocco, the world’s largest producer of Rock Phosphate and other phosphatic fertiliser products. The Company secures phosphoric acid through supply from IMACID for manufacture of granulated DAP and NPK fertilisers at its Haldia facility.
During the year, the cumulative production of phosphoric acid in this period was 329,173 MT as against 362,842 MT of the previous year. The lower production was on account of a shutdown of the plant during the fourth quarter of FY 2011-12 due to adverse market conditions for its product. On a calendar year basis, the year 2011 saw the highest ever production of 429,622 MT as against a design capacity of 430,000 MT. Strong financial performance and cash reserves facilitated payout of 512 Million Moroccan Dirhams (Rs. 2996.300 Millions) as a special Dividend to its shareholders during the year.
Khet-Se Agriproduce
India Private Limited
Khet-Se Agriproduce India Private Limited (Khet-Se) is a joint venture (JV) between TCL and Total Produce, Ireland, one of Europe’s largest fresh produce providers.
During the year, Khet-Se achieved a total distribution of 1,118 MT as against 5,660 MT of fresh produce valued at Rs. 24.900 Millions as against Rs. 94.600 Millions in the previous year. However, due to strategic reasons Khet- Se operations have been suspended from October, 2011.
JOil (Singapore) Pte.
Limited (JOil)
JOil, a Jatropha seedling company, is based in Singapore in which the Company holds a 33.78% stake. JOil has been set up by the Temasek Life Sciences Laboratory Limited (TLL), Temasek Life Sciences Ventures Pte. Limited (a subsidiary of Temasek Holdings) and other investors in Singapore. JOil has set up commercial seed orchards in India and Indonesia and has established tie-ups with tissue culture labs at various locations to produce and market high yielding Jatropha seedlings. JOil recently announced the successful yield of more than 2 tons of seeds per hectare in the first year of its field trials and the world’s first GM Jatropha with high oleic acid. Through this JV, the Company has secured exclusive marketing rights for JOil’s Jatropha seedlings in India and East Africa and a preferential price for seedlings it requires for its own cultivation of Jatropha.
FINANCE
During the year, with a view to augment long-term funds to part-finance the capital expenditure program, the Company has raised USD 60 million (Rs. 3000.000 Millions) through External Commercial Borrowings (ECB) with a bullet repayment due at the end of 5 years. The Company also generated additional funds through sale of shares of other group companies.
Debenture and FCNR (B) loans of Rs. 1500.000 Millions and USD 25 million (Rs. 1220.000 Millions) respectively were redeemed / repaid on due-dates during the year.
Significant increase in working capital and a firm interest rate regime during the year were challenges faced by the Company. Despite this, the Company was able to contain the increase in interest costs which increased marginally by 4% (Rs. 8700.000 Millions).
During the year, the Company’s step-down subsidiary Tata Chemicals North America Inc. (TCNA) had entered into loan agreements to raise debt of USD 375 million (Rs. 19080.000 Millions) to refinance its high cost debt, fund its capital expenditure and to fund distribution to its parent company. The drawdown of the loans were made in March, 2012.
During the year, Rallis India Limited, a subsidiary of the Company and IMACID, a joint venture, have paid dividends of Rs. 204.400 Millions and Rs. 1002.800 Millions respectively to the Company. Further, TCNA, a step-down subsidiary of the Company, has paid a dividend of USD 98.71 million (Rs. 4730.000 Millions); which has been utilised to repay loans taken for financing the acquisition of EPM Mining Ventures Inc., USA, repay debt of Tata Chemicals Magadi Limited with a view to restructure its balance sheet and redeem preference capital held by the Company.
AWARDS AND
RECOGNITIONS
The Company/ its subsidiaries during the year has won many awards some of which are listed below:
Excellence
• National Training Award to Tata Chemicals Europe
• National Award for “Significant Achievements in Employee Relations”
• Mother Teresa Award for Corporate Citizen 2011
• Employer Branding Award 2012
Corporate
Sustainability and SHE
• “Certificate of Merit” by HP Eco solutions and “Eco recognition”
• Listed in top 5 companies at the FE - EVI Green Business Leadership Awards
• Business Action on Health Awards for its standout efforts in community health care to Tata Chemicals Magadi Limited
• Ranked in top ten Carbon Disclosure Leadership Index in Carbon Disclosure Project 2011
• CII - ITC Sustainability Awards 2011
Communications
• 11 Awards including the ‘Champion of Champions’ Trophy at the 51st Annual ABCI Awards
Knowledge Management
• Asia’s Most Admired Knowledge Enterprise (MAKE) winner 2011
Product
• Aqua Excellence Awards - 2011 for “Water Supply & Treatment” to Tata Swach
• Awards in three categories at the Annual FAI Awards 2011
• Designomist 2011 for Tata Swach
• Voted by Consumers as the “Product of the Year - 2012” - Tata Swach
Finance
• SAFA Best Presented Accounts Award
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL BUSINESS
ENVIRONMENT
In the Financial Year (FY) 2011-12, there were multiple economic events that impacted the global economy as world GDP grew by 3.9%. These include Brent crude oil crossing US$ 125 per barrel in early 2011, Portugal needing bailout (following Greece and Ireland), Greece getting its second tranche of bailout funds, downgrading of US sovereign debt to AA+, gold price of US$ 100 per ounce after global stock markets stumbled in August 2011, Italy’s debt rating reduced by three grades in October 2011, cut in Eurozone interest rate to 3%, Ed Nusbaum’s call for a US$ 1 trillion bailout fund for European Union (EU) and Russia agreeing to join the World Trade Organisation (WTO). During the year, emerging economies grew at about 6.2% followed by advanced economies at 1.6%.
In FY 2011-12, India’s GDP grew at 6.9% compared to an average of 8.7% growth from 2005-06 to 2010-11. The services sector grew at 9.4% and is estimated to have accounted for 59% of GDP during the year. Manufacturing
activity was subdued due to monetary tightening, weak external demand and a lack of investment activity resulting from regulatory issues that impacted capital expenditure projects. In agriculture, a normal south-west monsoon combined with high market prices and minimum support prices of food articles resulted in record levels of production of wheat, rice and cotton. However, there were many instances where farm-gate price realisations were lower than minimum support price and thus affected farmers’ margins. The 12 month moving average Index of Industrial Production fell from 8.2% at the beginning of the year to 4% in February, 2012. A high interest burden
reduced the profit growth of the corporate sector by 6.6% year-on-year with the manufacturing sector recording a
substantial reduction of 25.4%. For FY 2011-12, the current account deficit is expected to settle at about 4% of GDP, one of the highest ever driven primarily by the ballooning trade deficit estimated at US$ 185 billion, another
“highest ever”
Outlook for the
Global Economy in FY 2012-13
Economic disparities, fiscal crises, climate change, energy price volatility combined with geopolitical conflicts, fragile power structures, weakening confidence in governance across the globe and rapid changes in the technological landscape make operating in this world, highly complex, challenging and unpredictable for enterprises.
The world economy is projected to grow by about 3.5% in 2012. Emerging economies are projected to grow at 5.6%; this is about 0.7% lower than the 6.3% achieved in 2011, partly as a result of slower export growth and partly because several of them have been growing above average. Growth of advanced economies will reduce further to about 1.4% from the already meagre 1.6% growth of 2011. While the US economy is expected to show some recovery in 2012; its sustainability remains in doubt owing to uncertainty in areas such as fiscal spending, depressed construction activity coupled with recessionary conditions in the EU zone. Additionally, the debt crisis in the Euro zone is likely to keep sentiments subdued in 2012.
A larger risk for the global economy is a slowdown in average output per capita, which will determine how fast living standards can be supported and raised. Globally, since the beginning of the century, the per capita growth
rate of income has been around 2.5 percent. The greatest challenge for the global economy in this slower growth
period is to raise / maintain productivity without destroying opportunities for the millions who are looking for jobs
that will allow them to support their living standards.
India’s GDP growth rate in FY 2012-13 is projected in the 7 - 7.5% band; a modest improvement over the previous fiscal. This implies that overall demand conditions will not be significantly different from FY 2011-12. However, achieving these projections will also necessitate a move away from the current sloth-like stance on reforms required to ease bottlenecks in critical sectors such as infrastructure, energy and minerals along with policy measures to improve investor (global and Indian) sentiment. Looking ahead, the Indian economy could be impacted substantially by currency volatility, debt market sentiment, oil price and global trend of protectionism.
BUSINESS UNITS AND
GROWTH STRATEGY
Tata Chemicals Limited (‘the Company’ or ‘TCL’) is a global company with interests in chemicals, crop nutrition and consumer products and serves a diverse set of customers across five continents. Established in the year 1939 at Mithapur, the Company today has the world’s second largest capacity in soda ash and is a pioneer and market leader in the Indian branded iodised salt segment. The Company is also a key producer of nitrogenous and phosphatic fertilisers in the private sector and markets a range of crop nutrition offerings under Tata Paras brand.
The Company has its manufacturing facilities across four continents. With manufacturing facilities in India, UK, Kenya and USA, the Company is the world’s most geographically diversified soda ash company with almost two thirds of capacity comprising natural soda ash giving it global competitive advantage. The Company is also the fourth largest manufacturer of sodium bicarbonate in the world. The Company’s nitrogenous fertiliser plant is located at Babrala while phosphatic fertilisers are manufactured at Haldia.
The industrial chemicals business continued to focus on building its global market share. The Company continues
to focus on improving the efficiency of the global operations. At Tata Chemicals North America, a capacity debottlenecking project increased capacity ~ 100,000 Metric Tonnes (MT). The Tata Chemicals Europe (TCE) business grew on the back of a strong performance of British Salt Limited (acquired in FY 2010-11). The Company has been taking multiple measures to improve the profitability of operations at Tata Chemicals Magadi Limited which resulted in improved margin performance in FY 2011-12.
Within the crop nutrition and agri-business, Babrala continues to hold the position of the most energy efficient Urea plant in the country. There was a plant shutdown undertaken in early FY 2012-13 to replace the ammonia convertor. The plant has recommenced operations and production has been scaled up smoothly. Complex fertilizer operations in Haldia helped the Company dominate market share in the Eastern part of the country. During FY 2011-12, a debottlenecking project in Haldia helped increase Single Super Phosphate (SSP) capacity by ~ 50,000 MT. Customised fertilisers have been well received by the farmers and the Company plans to consolidate its position in this business. The Company plans to aggressively grow the specialty nutrients business which has seen accelerated growth in India in the recent years. Rallis India Limited (Rallis) plans to focus on international business which already accounts for a third of it’s revenue. Rallis has entered into definitive agreements for the acquisition of Zero Waste Agro Organic Private Limited which will help the company expand its portfolio with organic fertilizers and soil conditioners.
On the consumer products front, the branded salt portfolio continues to enjoy significant market share. Tata Salt
and I-Shakti achieved a market share of 64% (National Branded Salt). The 200,000 MT salt capacity expansion in
Mithapur was successfully commissioned in FY 2011-12 and will add to salt volumes in FY 2012-13. The Company recently launched Tata Salt Plus – iron fortified iodised salt. This is India’s first national brand of packaged salt with iodine plus iron and is aimed at addressing and eradicating the prevalence of iron deficiency through one of the most widely consumed food essentials. The Company intends to aggressively grow this business over the next few years. Another value added product launched during the year was flavoured salt called Tata Salt ‘Flavoritz’ which is available in 3 distinct flavours. The launch marks the entry of the first indigenous brand of flavoured salt in India.
‘I-Shakti’ pulses which were launched in FY 2010-11 were expanded to over 19 states. Sourcing of these pulses is being carried out through a unique model wherein the Company organises finance as well as Package of Practice (POP) for the farmers and offers to buy back their produce in a transparent manner. While the farmer gets the advantage of higher productivity and market access, the Company is able to reach the material to consumers cost effectively by reducing intermediaries.
The Tata Swach water purifier business is focusing on introducing new variants in the units and the bulb.
INORGANIC CHEMICALS
SEGMENT
The key products under the segment of Inorganic Chemicals are soda ash, sodium bicarbonate, cement and salt.
Soda Ash
With a capacity of over 5 million MT, the Company is the second largest soda ash manufacturer in the world. About two-thirds of this capacity is based on natural soda ash. This unique feature helps the Company to have a low energy intensity and low environmental footprint. The Company’s natural soda ash (derived from trona) operations are located at Lake Magadi in Kenya and at the Green River Basin of Wyoming in the USA where the world’s largest deposits of trona occur. Synthetic soda ash and sodium bicarbonate are manufactured at Northwich, UK and Mithapur, India. This process uses brine (salt water) and limestone as key raw materials.
With manufacturing facilities located across four continents: North America, Europe, Africa and Asia, the Company has the ability to optimally serve customers across the globe. Additionally, distributed sourcing of raw materials increases the reliability of supplies and mitigates the risks associated with potential regional disruptions that can adversely impact the global supply chain.
Tata Chemicals
Limited
In 2011, global soda ash demand exhibited strong growth. The emerging economies have been the primary growth driver for soda ash over the past decade. With rapidly increasing GDP and urbanisation, these economies
have experienced an increased per capita consumption of products using soda ash including flat glass (automobiles, housing), container glass (beverages), detergents, baked goods, clean water and sodium based chemicals. This year the demand has also recovered in the large developed economies such as the EU and USA. Overall, world demand is forecasted to grow 4-5% through 2016.
Global soda ash production capacity increased approximately 6% to 67 million MT with the growth almost entirely
occurring in China. The global demand grew at 6% to 52 million MT in 2011. However, the over-capacity is region
specific. China and Europe have more capacity than demand while the producers in US, Kenya and India are operating at high rates. Global operating rates have recovered from 70% experienced during 2009, but are still well below the 85% realised before the financial crisis. The global average utilisation of name-plate capacity, moderated by comparatively lower levels of China and Europe, remains around 77%.
Global soda ash prices began to increase in 2011 and continued into 2012 reflecting both increased input costs across the world as well as tight soda ash supply in some regions. Energy prices in particular have dramatically increased from the lows of 2009, raising the costs of both natural and synthetic soda ash producers and is expected that energy and other input costs are likely to continue increasing, more so for the synthetic producers due to their higher energy intensity relative to the natural soda ash producers. Consequently, soda ash prices are likely to increase in the short term in line with energy and other input costs even in the face of excess capacity as the marginal cost producers in China and Europe seek to pass on their cost increases.
The Indian soda ash demand remained flat due to delays in commissioning of float glass lines and increased consumption of substitutes. However, due to continued focus on growing the domestic market, the Company’s domestic soda ash sales volumes increased by 1.5%, leading to an increase in market share by approximately 1%. Increase in realisations helped to partially mitigate the impact of the increase in input costs. The Company’s strong relationship with customers and its relentless focus on increasing its already high service levels has provided the Company the opportunity to consolidate its market position in 2011. While global prices remained under pressure, higher domestic sales volumes helped maintain profit levels.
New flat and container glass plants are expected to come on-line in India in the coming years along with expansion of existing operations. With the Indian economy expected to continue robust growth, the detergent and chemical sectors are also expected to maintain their growth trajectory. Consequently, soda ash demand in India is anticipated to grow 6% through 2016.
Sodium Bicarbonate
Sodium bicarbonate is commonly used as a pharmaceutical ingredient, food additive, animal feed and in air pollution control. The Company is the world’s fourth largest producer of sodium bicarbonate and the market leader in India and UK.
In Europe, TCE’s sodium bicarbonate brands, Briskarb® and Alkakarb®, have wide market acceptance and an established position. In 2011, demand for sodium bicarbonate in the UK was at its highest level ever at 63,000 MT, which represented a 9% increase over 2010 levels. The sector continues to be driven by treatment of flue gas from waste incineration activities. TCE’s production improved marginally over FY 2010-11 levels, but this was not sufficient to take advantage of market growth opportunities; market share declined to 70% (from 73% in 2010). In India, domestic sales were marginally higher during the year helping the Company achieve a market share of 52% in the domestic market. Sodium bicarbonate demand continues to demonstrate healthy growth across all consuming sectors, particularly in food related applications. Over the past year, the market grew 5% as against 15% in the previous year. Despite the lower than expected growth for 2011, growth rates of 18% are anticipated for the next 5 years. Growth drivers are reagent demand in alkali leaching of uranium ore and sustained incremental demand in the food and feed sectors.
Cement
The Company’s cement plant was setup in the year 1993 to handle solid wastes generated as by-products of soda ash manufacture. The Company uses technology to separate solid effluents and process them into Ordinary Portl and Cement (OPC) and Masonry cement. Masonry cement will enable the Company to convert its fly ash (generated in the power plant) into useful construction material. While the upward trend in raw material and energy prices is likely to impact margins, the business will continue to focus on catering to nearby markets for maximising realisation. Cement sales crossed 500,000 MT for the first time in 5 years in FY 2011-12 and will continue to be supported by high regional growth rates of 10% predicted for FY 2012-13, up from 6% for FY 2010-11.
Salt
The estimated current annual consumption of edible salt in India is ~ 5.7 million MT. The demand for edible salt is expected to grow at 1.3%. The private sector contributes over 88% of the salt production, while the public sector has a share of about 2%, the cooperative sector contributes about 10%.
The salt portfolio continued to grow in FY 2011-12 leveraging the brand equity and a strong distribution network. While continuing its leadership position in the packaged salt market, Tata Salt maintained its position in the Top 3
Most Trusted Food brands as per Economic Times Brand Equity Survey. I-Shakti Salt is now the second largest packaged national salt brand after Tata Salt. Tata Salt Lite continues to lead in the premium low-sodium salt segment. All the brands continued to grow and have together achieved a market share of over 64% among the national salt brands. In FY 2011-12, the Company expanded the salt production capacity by 0.2 million MT which will help in consolidating market position in FY 2012-13.
To enhance Tata Salt’s offerings to the consumers as also to address latent consumer requirements and expectations, two innovative products - ‘Tata Salt Plus’ (Iron fortified salt) and ‘Flavoritz’ (Flavoured salt) have been introduced. The vision for Tata Salt Plus is to help eradicate iron deficiency (anemia) through the ‘Iron fortification’ of iodised salt. The Flavoritz innovation intends to involve and empowers the consumers in creating a difference in the daily chore of cooking by offering ‘Taste mein twist’.
FERTILISER AND OTHER
AGRI INPUTS
Climate change, energy and food security are major concerns for developing countries. Food grain production in
India is majorly dependent on monsoon. FY 2011-12 witnessed above average rainfall in the country and agricultural output has been excellent in Northern and Eastern parts of the country which are the main operating geographies for the Company. Food grain production in FY 2011-12 is estimated at 253 million MT - a record high. Food grain prices have, however, remained subdued due to higher production. Agriculture sector in India continues to experience labour shortage which will act as an incentive for increased mechanisation of operations.
Fertilisers and Agri input segment is a major component of the Company’s business in India. The Company along
with its subsidiary Rallis have in due course of time transformed into an integrated agri input player in the domestic market with a unique and diverse product portfolio ranging from basic and specialty nutrients, pesticides, seeds and farm services which are offered by a strong and experienced sales and distribution channel. The Company remains focused on providing quality agri inputs and solutions to farmers that result in increase in productivity. The Company also plans to build on this relationship with the farmer by sourcing of specific crops for distribution to households through its consumer products distribution network.
The Company manufactures urea (at Babrala) and Phosphatic Fertilisers (at Haldia) in India. Rallis, a subsidiary of the Company, is a major player in the fast growing crop protection market in India. With Rallis’ acquisition of
Metahelix Life Sciences Limited (Metahelix), a research led seeds company, the Company has expanded its portfolio to seeds. TCL imports Muriate of Potash (MOP), Di-ammonium Phosphate (DAP), Specialty Fertilisers and other crop inputs which are sold via the Company’s widespread sales and distribution network. The Company also has a joint venture with Indo Maroc Phosphore S.A., Morocco (IMACID) which produces Phosphoric Acid – a key raw material for phosphatic fertilisers such as DAP and Nitrogen, Potash and Phosphorous (NPK).
In addition to the conventional sales channel, the Company operates a dedicated retail network of ‘Tata Kisan Sansar’. Similarly, Rallis operates a farmer connect program known as ‘Rallis Kisan Kutumb’ through which large
number of farmers are connected with the company for exploring various opportunities of mutual interest.
Outlook for FY
2012-13
The Union Budget for FY 2012-13 has given a very strong emphasis on achieving self sufficiency in urea. The focus on growth of agriculture continues with higher budgetary outlay and increased lending targets for banks. All these developments will help in spurring demand and augur well for the Company. On the other hand, there has been a reduction in the subsidy of Phosphate and Potash. This along with the weakening rupee could potentially lead to extensive price negotiating that may delay the imports of DAP and MOP.
With high food inflation, a substantial shift is being observed towards cash crops, for example, sugarcane acreage has increased by more than 4% this year. Use of hybrid seeds, especially in crops like cotton, paddy and vegetables, is expected to further increase. Overall outlook for the FY 2012-13 looks encouraging subject to normal monsoon as predicted by the Government.
Urea
Urea imports into India have crossed the 7 million MT per annum mark in FY 2011-12. This figure may likely rise since there has been no addition to indigenous production capacity of urea in India during the last decade. The Committee under the chairmanship of Dr. Saumitra Chaudhary, Member, Planning Commission proposed a New Urea Investment Policy which was approved by the Empowered Group of Ministers in January, 2012. The same is now awaiting the approval of the Cabinet Committee of Economic Affairs post which it will be formally announced. The Company has already expressed its interest in doubling the production capacity at Babrala subject to a supportive investment policy. The additional capacity will increase the Company’s market share and also widen reach to other geographies (South & West India). The New Urea policy would also promote variants of urea such as coated urea and fortified urea providing farmers with multiple options for efficient use.
DAP, NPK, SSP
Nutrient Based Subsidy (NBS) introduced in FY 2010-11 has impacted the Crop Nutrition business significantly. Strengthening global prices for DAP and MOP in FY 2011-12 led to a sharp increase in prices in the domestic market which in turn has caused some demand destruction. NBS, when extended to all fertilisers including urea, will promote the balanced use of fertilisers – a critical step for enhancing the productivity levels. NBS will also promote the use of more efficient fertiliser products and raise farmer awareness levels.
Rallis
Rallis has a significant presence in the crop protection segment with a wide portfolio of offerings such as pesticides, herbicides and fungicides amongst others. With the acquisition of Metahelix, a research based seeds company with a strong pipeline of products, Rallis has expanded its basket of offerings to the farmer.
Globally, the crop protection industry had a very good year in 2011. Overall the global market grew by 17% to reach to US$ 44.92 Billion from US$ 38.31 Billion. The factors giving a boost to the growth of the Agrochemicals
included a significant improvement in crop commodity prices in comparison to 2010.
The investments in International Business Division (IBD) is paying off and has shown commendable performance
over last year. Rallis has entered into definitive agreements for the acquisition of a majority equity stake in Zero Waste Agro Organics Private Limited which will strengthen the Company’s portfolio with organic manure and soil conditioner products to improve deteriorating soil health and drive agriculture productivity. Acquisition of this organic manure business will spur the Company’s growth strategy.
New Products
The Company plans to focus on the sale of seeds, fertilisers, specialty nutrients and pesticides which are all customised to the need of the local farmer and for achieving this, the Company may extend its domestic presence. The Company plans to expand its product portfolio with the introduction of new Water Soluble Fertilisers, Hybrid seeds and Organic fertilisers.
Specialty Nutrients
Water soluble fertilisers and micro nutrients are known for their specialised application and this market has been growing rapidly in India. These nutrients are complimentary to bulk fertilisers and its applications are made at critical crop growth stages for improvement in yield and quality. The Company is well positioned to market these products in existing and new geographies.
Customised
Fertilisers
Customised fertilisers are knowledge based fertilisers carrying macro and micro nutrients designed for specific area and crop, thus, providing holistic solution to deteriorating soil health. It has a significant impact on the nutrient use efficiency and helps farmers realise full yield potential for all crops. The Company has already taken a lead in the market by commissioning its first customised fertiliser plant at Babrala. Farmers have given favourable feedback on its convenience of use, increased yield as well as improved quality of the produce. The sales growth has been slow in view of the current subsidy mechanism and the initial hesitation in adopting an expensive but novel product. Continued interaction with the farmers will be needed to popularise the concept. It is heartening to note that the 12th Five year plan document on agriculture also explicitly talks about use of customised fertilizers for sustainable crop productivity. The Company has so far got four grades registered/approved for major crops like paddy, wheat, potato and sugarcane for some specific geographies.
Trading
With the introduction of NBS, the risk of global price volatility needs to be managed by the Company. In view of reducing this risk and importing products like DAP, NPK and MOP at internationally competitive prices, the Company has entered into long term tie-ups with the suppliers.
Tata Kisan Sansar and
Rallis Kisan Kutumb
Tata Kisan Sansar, a dedicated network for distribution of agri inputs, is well established in North and East geographies. This concept offers “One Stop agri input shop” to farmers. Besides, it provides a credible, dependable shop whose products and services could well be relied upon. Tata Kisan Sansar shops are franchised and located at block level for ease of access to farmers. It provides direct connect with the farmers to understand their changing needs and tailor products and services accordingly. Services like Soil Testing, Tata Kisan Parivar Membership (TKPM), Smart Krishi, Foliar Nutrition service help build strong relations with the farmers. Currently, there are more than 700 Tata Kisan Sansar’s in operation.
Rallis’ customer relationship building activities branded under the umbrella of Rallis Kisan Kutumba (RKK) has
grown with successful introduction of key initiatives like Samruddh Krishi , expansion of MoPu (Grow More Pulses), State partnership, Prerna and others. These initiatives, along with customer centric promotional activities and a product portfolio current with the market needs, has helped farmers to a great extent in protecting their crops effectively, improving quality and yield of produce and ultimately in improving their standard of living. The RKK today directly services over seven lakh farmers.
OTHERS:
Biofuels
The Company after two years of operational experience closed down its bio-ethanol test plant of 30 KLPD at Nanded, Maharashtra during the year. In respect of its bio-ethanol project based on sugarcane at Mozambique, the Company is taking a cautious approach due to uncertain economic environment in Europe.
Water Purifier
Indian water purifier market is on a growth trajectory and has witnessed steady growth over the past few years. Tata Swach Water Purifier has had a successful run since launch. As of end April, 2012, the cumulative units sold
(purifiers + bulbs) has crossed 1 million units. During the previous year, Tata Swach also became the first purifier in India to enter e-commerce and setup an online store. Consumers can now purchase Tata Swach purifiers, bulbs and spare parts directly through the website. The business has also set-up a formal customer care division in Tata Swach. Both these initiatives have been very well accepted by the consumers.
Adding to its list of awards and accolades that includes the prestigious Wall Street Journal’s Asian Innovation Awards, the Design of the Decade award, the IFF award, etc., Tata Swach was recently voted as the “Product of the Year 2012” in a survey conducted by Nielsen across 30,000 consumers in over 36 cities.
Pulses
The encouraging performance of the initial pilot led to the expansion of Tata I-Shakti unpolished pulses nationally leveraging its distribution network. The product is now available in 19 States. In the coming year, the Company intends to focus on brand building initiatives and expanding reach.
CONTINGENT
LIABILITIES
(a) Guarantees:
(i) Bank Guarantees issued by Banks on behalf of the Company Rs. 1633.900 Millions (previous year Rs. 1939.600 Millions). These are covered by the charge created in favour of the Company’s bankers by way of hypothecation of stocks and debtors.
(ii) Guarantees provided to third parties on behalf of subsidiaries USD 1383.000 million (Rs. 703.60 Millions) (previous year USD 138.30 million (Rs. 6167.500 Millions).
(b) Claims not acknowledged by the Company relating to cases contested by the Company and which, in the opinion of the Management, are not likely devolve on the Company relating to the following areas
(Rs. in Millions)
|
Particulars |
As at 31.03.2013 |
|
Excise and Customs |
42.100 |
|
Sales Tax |
891.100 |
|
Demand for utility charges Labour and other claims against the Company |
568.600 |
|
not acknowledged as debt Income Tax (Pending before Appellate authorities |
18.900 |
|
in respect of which the Company is in appeal) |
1867.200 |
|
Income Tax (Decided in Company's favour by Appellate authorities and Department is in further appeal) |
373.300 |
(c) Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.
FIXED ASSETS:
- Freehold Land
- Leasehold Land
- Saltworks, Reservoirs and Pans
- Plant and Machinery
- Traction Lines, Railway Sidings and Wagons
- Buildings
- Other Buildings
- Water Works
- Furniture, Fittings and Office Equipment
- Vehicles
AS PER WEBSITE DETAILS
PRESS RELEASE:
DELAYED SUBSIDY
CREATING LIQUIDITY PROBLEMS: TATA CHEMICALS
Feb 08, 2013, 04.36
PM IST
Tata Chemicals Limited has pending dues of Rs 14960.000 Millions from the government on account of fertiliser subsidies, its chief financial officer said, adding that delayed payments were creating liquidity problems for the company.
India controls prices of some fertilisers sold to farmers, and compensates producers through cash payments to make up for the shortfall.
Earlier on Friday, Tata Chemicals posted a net profit of Rs 2240.000 Millions, unchanged from a year earlier.
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.55.62 |
|
|
1 |
Rs.84.18 |
|
Euro |
1 |
Rs.71.96 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
67 |
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.