MIRA INFORM REPORT
|
Report Date : |
24.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
IOL CHEMICALS AND PHARMACEUTICALS LIMITED |
|
|
|
|
Registered
Office : |
Trident Complex, Raikot Road, Barnala – 148101, Punjab |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
29.09.1986 |
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|
|
|
Com. Reg. No.: |
16-007030 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.311.512
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24116PB1986PLC007030 |
|
|
|
|
IEC No.: |
3094001343 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JLDI00254C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCI1842A/ JLDI00254C |
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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
: |
The Company is
engaged in the Manufacturing and Selling of Organic Chemicals and Bulk Drugs. |
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|
|
|
No. of Employees
: |
1048 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 6910000 |
|
|
|
|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record.
There appears continuous dip in its profitability. The profit margin appears
to be low. The external borrowing seems to be increasing over year’s. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with great
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BB – [Long Term Bank Facilities] |
|
Rating Explanation |
Moderate risk of default |
|
Date |
14.08.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
A4 [Short Term Bank Facilities] |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
14.08.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Factory 1 : |
Trident Complex, Raikot Road, Barnala – 148101, Punjab, India |
|
Tel. No.: |
91-1679-244701-07 / 285285 |
|
Fax No.: |
91-1679-244708 / 285292 |
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E-Mail : |
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|
Website : |
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Head / Corporate Office : |
85 Industrial Area A, Ludhiana – 141003, Punjab, India |
|
Tel. No.: |
91-161-2225531-35 |
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Fax No.: |
91-161-2608184 / 2608784 / 2226929 |
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E-Mail : |
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|
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Factory 2 : |
Village Fatehgarh Chhana, Mansa Road, Barnala – 148101, Punjab, India |
|
Tel. No.: |
91-1679-285285-86 |
|
Fax No.: |
91-1679-285292 |
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E-Mail : |
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Area: |
Owned |
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|
|
|
Branch Office : |
102, 1st Floor, Royal Grace, Road No. 2, Lokmanya Tilak
Colony, B/H Swaminarayan Mandir, Dadar (East), Mumbai – 400014, Maharashtra,
India |
|
Tel. No.: |
91-22-24166656 / 24146654 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Varinder Gupta |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Vijay Kumar Garg |
|
Designation : |
Joint Managing Director |
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|
|
|
Name : |
Dr. M A Zahir |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Chandra Mohan |
|
Designation : |
Director |
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|
Name : |
Mr. Yogesh Goel |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. N K Pundir |
|
Designation : |
Director (Commercial) (upto 14 August 2012) |
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|
Name : |
Mr. Vijay Singla |
|
Designation : |
Director (Works) |
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Audit and
Risk Management Committee : |
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Investors’
Grievance Committee : |
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Remuneration
Committee : |
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KEY EXECUTIVES
|
Name : |
Mr. Krishan Singla |
|
Designation : |
Vice President and Company Secretary |
|
|
|
|
Name : |
Mr. Rakesh Mahajan |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1159265 |
4.43 |
|
|
13215288 |
50.53 |
|
|
14374553 |
54.97 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
14374553 |
54.97 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10400 |
0.04 |
|
|
297965 |
1.14 |
|
|
308365 |
1.18 |
|
|
|
|
|
|
4387234 |
16.78 |
|
|
|
|
|
|
2378530 |
9.10 |
|
|
799356 |
3.06 |
|
|
3903126 |
14.93 |
|
|
96462 |
0.37 |
|
|
3806664 |
14.56 |
|
|
11468246 |
43.85 |
|
Total Public shareholding (B) |
11776611 |
45.03 |
|
Total (A)+(B) |
26151164 |
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) |
26151164 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is
engaged in the Manufacturing and Selling of Organic Chemicals and Bulk Drugs. |
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Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Acetic Acid |
TPA |
75000 |
10420 |
|
Ethyl Acetate |
TPA |
36000 |
36050 |
|
Acetic Anhydride |
TPA |
18000 |
15956 |
|
Ibuprofen |
TPA |
6000 |
2997 |
|
Acetyl Chloride |
TPA |
5200 |
2035 |
|
Mono Chloro Acetic Acid |
TPA |
7200 |
2848 |
|
Iso Butyl Benzene |
TPA |
6600 |
4150 |
NOTES:
I. Installed capacity is on annual basis.
II. Installed capacity has been certified by the Management and not verified by the Auditors, being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
1048 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Cost Auditors : |
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|
Name : |
Ramanath Iyer and Company Chartered Accountants |
|
Address : |
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|
Statutory Auditors : |
S C Vasudeva and Company Chartered Accountants |
|
Address : |
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Enterprises over
which Key Management Personnel (KMP) is able to exercise significant
influence: |
* Enterprise having significant influence over the Company. |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
49000000 |
Equity Shares |
Rs.10/- each |
Rs.490.000 Millions |
|
5000000 |
7% Non Cumulative Preferences Shares |
Rs.10/- each |
Rs.50.000 Millions |
|
|
TOTAL
|
|
Rs.540.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
26151164 |
Equity Shares |
Rs.10/- each |
Rs.261.512
Millions |
|
5000000 |
7% Non Cumulative Preferences Shares |
Rs.10/- each |
Rs.50.000
Millions |
|
|
TOTAL
|
|
Rs.311.512 Millions |
NOTES:
TERMS/RIGHTS
ATTACHED TO EQUITY SHARES
The Company
presently has one class of equity shares having a par value of Rs.10/- each.
Each holder of equity shares is entitled to one vote per share. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting. In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive any of
the remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders. The Company has not declared dividend during the year
ended 31 March 2013.
TERMS/RIGHTS
ATTACHED TO PREFERENCE SHARES
The rate of
dividend on preference shares is decided by the Board of Directors as and when
issued. Preference shares have the non-cummulative right to receive dividend as
and when declared and shall have preferencial right of repayment of amount of
capital. The Company has issued 7% non-cumulative preference shares redeemable
at par on expiry of 10 years from the date of allotment i.e. 20 March 2004. The
earliest date of redemption is 20 March 2014.
DETAILS OF SHARES
HELD BY HOLDING COMPANY OR THE ULTIMATE HOLDING COMPANY OR THEIR SUBSIDIARIES
AND ASSOCIATES
There is no holding Company of the Company and therefore no subsidiary/
associate of holding /ultimate holding Company.
DETAIL OF SHARES HELD BY EACH SHAREHOLDER HOLDING MORE THAN 5% SHARES
|
PARTICULAR |
AS ON 31.03.2013 |
|
|
|
No. of Shares
Held |
% Share Holding |
|
Equity Shares |
|
|
|
Mayadevi Polycot Limited |
9842323 |
37.64 |
|
IndiaSTAR (Mauritius) Limited |
3806664 |
14.56 |
|
NM Merchantiles Limited |
2684500 |
10.27 |
|
G Consultants and Fabricators Limited |
1500000 |
5.74 |
|
|
|
|
|
Preference
Shares |
|
|
|
Trident Limited |
5000000 |
100.00 |
FOREIGN CURRENCY
CONVERTIBLE BONDS
The Company has
issued zero coupon unsecured foreign currency convertible bonds (FCCB)
aggregating to US $ 7 Million.
The Company has
option to convert all outstanding bonds into equity shares at the prevailing
conversion price i.e. Rs. 78 per share at any time on or after 28
November 2014 but on or before 28 May 2015.
The bond holders
have also option to convert into equity shares of the Company at price of Rs.
78 per share (subject to adjustment, if any) with a fixed exchange rate of Rs.
47.57 per US $ at any time on or after 28 May 2010 but on or before 28 May 2015
subject to satisfaction of certain conditions.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
311.512 |
307.167 |
307.167 |
|
(b) Reserves & Surplus |
1418.434 |
1424.515 |
1395.215 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
21.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
4.345 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
1729.946 |
1736.027 |
1723.382 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
2868.414 |
2698.849 |
2351.873 |
|
(b) Deferred tax
liabilities (Net) |
103.643 |
92.883 |
100.557 |
|
(c)
Other long term liabilities |
284.016 |
88.317 |
43.190 |
|
(d)
long-term provisions |
1.163 |
1.178 |
3.255 |
|
Total
Non-current Liabilities (3) |
3257.236 |
2881.227 |
2498.875 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
971.580 |
764.777 |
631.473 |
|
(b)
Trade payables |
953.764 |
794.066 |
610.088 |
|
(c)
Other current liabilities |
354.570 |
692.895 |
560.029 |
|
(d)
Short-term provisions |
1.800 |
0.526 |
4.833 |
|
Total
Current Liabilities (4) |
2281.714 |
2252.264 |
1806.423 |
|
|
|
|
|
|
TOTAL |
7268.896 |
6869.518 |
6028.680 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
4303.047 |
4619.001 |
3509.038 |
|
(ii)
Intangible Assets |
1.099 |
0.755 |
0.525 |
|
(iii)
Capital work-in-progress |
315.071 |
123.757 |
568.031 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b)
Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c)
Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
118.827 |
110.108 |
151.216 |
|
(e)
Other Non-current assets |
20.626 |
23.374 |
18.619 |
|
Total
Non-Current Assets |
4758.670 |
4876.995 |
4247.429 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1634.742 |
1317.660 |
995.562 |
|
(c)
Trade receivables |
358.247 |
215.927 |
311.360 |
|
(d)
Cash and cash equivalents |
123.935 |
86.954 |
180.775 |
|
(e)
Short-term loans and advances |
393.302 |
371.982 |
293.554 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
2510.226 |
1992.523 |
1781.251 |
|
|
|
|
|
|
TOTAL |
7268.896 |
6869.518 |
6028.680 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4815.110 |
4706.825 |
3894.073 |
|
|
|
Other Income |
25.289 |
23.342 |
18.972 |
|
|
|
TOTAL (A) |
4840.399 |
4730.167 |
3913.045 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
3316.833 |
3251.645 |
2696.216 |
|
|
|
Purchase of stock-in-trade |
23.486 |
0.371 |
14.527 |
|
|
|
Employee benefit expense |
220.769 |
201.370 |
170.090 |
|
|
|
Other expenses |
704.127 |
819.965 |
630.807 |
|
|
|
Changes in
inventories of finished goods, work in progress and stock in trade |
(340.540) |
(252.494) |
(294.619) |
|
|
|
TOTAL (B) |
3924.675 |
4020.857 |
3217.021 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
915.724 |
709.310 |
696.024 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
572.399 |
431.973 |
367.965 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
343.325 |
277.337 |
328.059 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
313.741 |
239.360 |
237.628 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX (E-F) (G) |
29.584 |
37.977 |
90.431 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
13.699 |
(9.555) |
28.639 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
15.885 |
47.532 |
61.792 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
523.746 |
461.954 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
571.278 |
523.746 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
905.360 |
988.095 |
806.282 |
|
|
TOTAL EARNINGS |
905.360 |
988.095 |
806.282 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
89.234 |
304.427 |
103.065 |
|
|
|
Capital Goods |
0.000 |
18.762 |
6.198 |
|
|
TOTAL IMPORTS |
89.234 |
323.189 |
109.263 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
0.61 |
1.85 |
2.52 |
|
|
|
- Diluted |
0.61 |
1.83 |
2.52 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Net Sales |
|
|
1400.500 |
|
Total Expenditure |
|
|
1156.000 |
|
PBIDT (Excl OI) |
|
|
244.500 |
|
Other Income |
|
|
0.100 |
|
Operating Profit |
|
|
244.600 |
|
Interest |
|
|
153.500 |
|
PBDT |
|
|
91.000 |
|
Depreciation |
|
|
78.500 |
|
Profit Before Tax |
|
|
12.600 |
|
Tax |
|
|
04.300 |
|
Profit After Tax |
|
|
08.300 |
|
Net Profit |
|
|
08.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.33
|
1.00 |
1.58
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.61
|
0.81 |
2.32
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.43
|
0.56 |
1.66
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.02 |
0.05
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.22
|
2.00 |
1.73
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.10
|
0.88 |
1.60
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 |
INDEX OF CHARGES:
|
S.
No. |
Charge
ID |
Date
of Charge Creation/Modification |
Charge
amount secured |
Charge
Holder |
Address |
Service
Request Number (SRN) |
|
1 |
10314198 |
13/03/2013
* |
400,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE
ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI -
400005, MAHARASHTRA, INDIA |
B70894365 |
|
2 |
10250399 |
02/02/2013
* |
150,000,000.00 |
ALLAHABAD
BANK |
I.I.F.B
CHEEMA CHOWK, LUDHIANA - 141003, PUNJAB, INDIA |
B68495779 |
|
3 |
10248563 |
23/06/2011
* |
180,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE
ONE BUILDING, FLOOR 21,, WORLD TRADE CENTR |
B16710824 |
|
4 |
10244239 |
11/01/2013
* |
70,000,000.00 |
ORIENTAL
BANK OF COMMERCE |
OVERSEAS
BRANCH, JANDU TOWER, G.T. ROAD, MILLER GANJ, LUDHIANA - 141003, PUNJAB, INDIA |
B67305797 |
|
5 |
10241454 |
29/12/2012
* |
500,000,000.00 |
PUNJAB
NATIONAL BANK |
LARGE
CORPORATE BRANCH, 1ST FLOOR, BHAGWATI TOWER, |
B66650565 |
|
6 |
10175807 |
11/01/2013
* |
214,200,000.00 |
ORIENTAL
BANK OF COMMERCE |
OVERSEAS
BRANCH, JANDU TOWER, G.T. ROAD, MILLER GANJ, LUDHIANA - 141003, PUNJAB, INDIA |
B67307371 |
|
7 |
10168109 |
18/02/2013
* |
190,400,000.00 |
STATE
BANK OF INDIA |
COLLEGE
ROAD,, BARNALA, BARNALA - 148001, PUNJAB, |
B69053304 |
|
8 |
10158800 |
29/12/2012
* |
300,000,000.00 |
PUNJAB
NATIONAL BANK |
LARGE
CORPORATE BRANCH, 1ST FLOOR, BHAGWATI TOWER, |
B66648585 |
|
9 |
10147116 |
29/12/2012
* |
59,600,000.00 |
PUNJAB
NATIONAL BANK |
LARGE
CORPORATE BRANCH, 1ST FLOOR, BHAGWATI TOWER, |
B66652025 |
|
10 |
10102056 |
02/02/2013
* |
350,000,000.00 |
ALLAHABAD
BANK |
I.I.F.B
CHEEMA CHOWK, LUDHIANA - 141003, PUNJAB, INDIA |
B68496611 |
|
* Date of charge modification |
||||||
CORPORATE
INFORMATION:
Subject is a
public Company domiciled in India and incorporated under the provisions of the
Companies Act, 1956, on 29 September 1986. Its shares are listed on two stock
exchanges in India. The Company is engaged in the manufacturing and selling of
Organic Chemicals and Bulk Drugs. The Company caters to both domestic and
international market.
PERFORMANCE
REVIEW:
The Company,
during FY 2012-13, has clocked a growth of 5.63% in Gross Revenue, which has
grown to Rs. 5364.300 Millions from the gross revenue of Rs.5078.500 Millions
in the previous year. The Company has also improved in operational efficiency
this year and profit before depreciation interest and tax (PBDIT) to Net
Revenue has increased from 14.99% to 18.92%. The Company has earned profit
before tax (PBT) of Rs. 29.600 Millions during the year against Rs. 38.000
Millions during the previous year. Lower PBT is mainly due to increase in
interest cost which increased from Rs. 432.000 Millions to Rs. 572.400 Millions
during the year.
The Company
continues to maintain strategic focus on grabbing more share in market,
improvement in the product mix, capitalizing product level opportunities for
which regulatory approvals have been received, product rationalization, cost
effectiveness throughout the organization.
AWARDS:
The Company has
been awarded with “2nd prize in National Energy Conservation Award” by the
Ministry of Power, Government of India in chemical sector. The Company has been
awarded the prize consecutively for seven years by the Ministry of Power,
Government of India.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
WORLD ECONOMY
Global economic
prospects have improved again but the road to recovery in the advanced
economies will remain bumpy. World output growth is forecast to reach 3Ľ
percent in 2013 and 4 percent in 2014. In advanced economies, activity is
expected to gradually accelerate, starting in the second half of 2013. Private
demand appears increasingly robust in the United States but still very sluggish
in the euro area. In emerging market and developing economies, activity has
already picked up steam. There was a noticeable slowdown in the emerging market
and developing economies during 2012, a reflection of the sharp deceleration in
demand from key advanced economies, domestic policy tightening, and the end of
investment booms in some of the major emerging market economies. But with
consumer demand resilient, macroeconomic policy on hold, and exports reviving,
most economies in Asia and sub-Saharan Africa and many economies in Latin America
and the Commonwealth of Independent States are now seeing higher growth. The
recovery should again gain speed in emerging Europe as demand from advanced
Europe slowly picks up. However, economies in the Middle East and North Africa
continue to struggle with difficult internal transitions. And a couple of
economies in South America are facing high inflation and increasing exchange
market pressure. There is good news emanating from developing economies. Even
as estimates of potential growth have been marked down in recent years for some
of the larger emerging markets, it has been steadily improving elsewhere.
INDIAN ECONOMY
The slowdown
induced by the global financial crisis in 2008-09, the Indian economy responded
strongly to fiscal and monetary stimulus and achieved a growth rate of 8.6 per
cent and 9.3 per cent respectively in 2009-10 and 2010-11 and in the subsequent
two years viz. 2011-12 and 2012-13, the growth rate slowed to 6.2 percent and
5.0 percent respectively. Nevertheless, despite this slowdown, the compound
annual growth rate (CAGR) for gross domestic product (GDP) at factor cost, over
the decade ending 2012-13 is 7.9 percent. In the current year, the CSO has
estimated growth at 5 percent while the RBI has estimated growth at 5.5 percent.
INDIAN INDUSTRIAL
SECTOR AND CHEMICAL INDUSTRY
The chemical
industry, which includes basic chemicals and its products, petrochemicals,
fertilizers, paints & varnishes, gases, soaps, perfumes & toiletries
and pharmaceuticals is one of the most diversified of all industrial sectors
covering thousands of commercial products. It plays an important role in the
overall development of the Indian economy. The chemical and petrochemical
sector in India presently constitutes 14% of the domestic industrial activity.
The growth of petrochemicals and chemicals is projected at 12.6% and 10%
respectively in 12th Five Year Plan.
According to
estimates of the Central Statistics Office (SCO), chemicals and chemical
products sector accounted for 2.12% of the GDP in 2010- 2011, compared to 2.27%
in 2009-10. The share of this sector in GDP for manufacturing sector at 2004-05
prices was 13.4% during 2010-11.
SPECIALTY
INDUSTRIAL ORGANIC CHEMICALS
Specialty
Industrial Organic Chemicals are having distinct uses in different industries
like Pharmaceuticals, flexible packaging, paints, adhesives, food packing and
photography etc to be precise. Since Inception, they have been enhancing their
capacities in general and chemical segment in particular. Moreover, Major of
the chemicals produced by the company is used in its forward integrated plants,
like Mono Chloro Acetic Acid (MCA) and Acetyl Chloride are the key raw material
to manufacture Ibuprofen. All the products manufacture in their plants are
having continuous demand from different industries in domestic as well as
foreign market and demand is also increasing day to day. To tap the opportunity
of increase in demand in market, they are increasing their capacity utilization
by streamlining of production processes. India emerges as one of the focus
destinations for chemical companies worldwide. With the current size of
approximately $108 billion, the Indian chemical industry accounts for 3% of the
global chemical industry and approximately 7% of Indian GDP. Two distinct
scenarios for the future emerge, based on how effectively the industry
leverages its strengths and manages challenges.
In the base case
scenario, with current initiatives of industry & government, the Indian
chemical industry could grow at 11% p.a. to reach size of $224 billion by 2017.
However, the industry could aspire to grow much more and its growth potential
is limited only by its aspirations. In such an optimistic scenario, high
end–use demand based on increasing per capita consumption, improved export
competitiveness and resultant growth impact for each subsector of the chemical
industry could lead to an overall growth rate of over 15% p.a. and a size of
$290 billion by 2017 (~6% of global industry). This has a potential for further
upside in the future considering India’s increasing competitiveness in
manufacturing.
They are
continuously monitoring the operations of the plant for optimal utilization of
resources and achieve the desired production levels with minimal breakdown. In
FY 2012-13, Revenue from external sales of chemical segment witnessed decline
of 19.30% to Rs. 2345.100 Millions in Financial Year 2012-13 from Rs. 2906.100
Millions in Financial Year 2011-12. This decline in external sales of chemicals
is due to increase in In-house consumption (Inter Segment Transfer) which
increased from Rs. 494.400 Millions to Rs. 701.700 Millions in year.
FIXED ASSETS:
- Land
and Buildings
- Plant
and Machinery
- Furniture
and Fixtures
- Vehicles
- Buildings
- Office
Equipments
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30 JUNE 2013
Rs. in Millions
|
Sr. No. |
Particular |
Quarter
Ended |
|
|
|
30.06.2013 |
|
|
|
Unaudited
|
|
|
|
|
|
1. |
Net Sales/Income
from Operations |
1391.434 |
|
|
Other Operating
Income |
9.027 |
|
|
Total Income From Operations (Net) |
1400.461 |
|
|
|
|
|
2. |
Expenditure |
|
|
|
Cost
of materials consumed |
924.366 |
|
|
Purchase
of stock in trade |
0.000 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
7.448 |
|
|
Employee
benefits expenses |
65.024 |
|
|
Depreciation
and amortization expenses |
78.457 |
|
|
Other
expenses |
159.119 |
|
|
Total Expenses |
1234.414 |
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
166.047 |
|
|
|
|
|
4. |
Other
Income |
0.045 |
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
166.092 |
|
|
|
|
|
6. |
Interest |
153.537 |
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
12.555 |
|
|
|
|
|
8. |
Exceptional
Items |
-- |
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
12.555 |
|
|
|
|
|
10. |
Tax
Expense |
4.306 |
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
8.249 |
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
8.249 |
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
261.512 |
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualized |
|
|
|
a)
Basic and diluted EPS before extraordinary items |
0.32 |
|
|
b)
Basic and diluted EPS after extraordinary items |
0.32 |
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
-Number
of Shares |
11776611 |
|
|
-
Percentage of Shareholding |
45.03 |
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
-
Number of Shares |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
-
Number of Shares |
14374553 |
|
|
-
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) |
54.97 |
|
Particulars |
3 Months Ended 30.06.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the
quarter |
Nil |
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED UNDER CLAUSES 41 OF THE LISTING AGREEMENT
Rs. in Millions
|
Sl. No. |
|
Particulars |
Quarter
Ended |
|
|
30.06.2013 |
||
|
|
Unaudited |
||
|
1 |
|
SEGMENT REVENUE |
|
|
|
|
Chemicals |
884.470 |
|
|
|
Drugs |
701.136 |
|
|
|
Unallocated |
6.923 |
|
|
|
TOTAL |
1592.529 |
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
192.068 |
|
|
|
|
|
|
|
|
NET SALES / INCOME
FROM OPERATION |
1400.461 |
|
|
|
|
|
|
2 |
|
SEGMENT RESULTS |
|
|
|
|
PROFIT/LOSS BEFORE
TAX AND INTEREST FROM EACH SEGMENT |
|
|
|
|
Chemicals |
(11.157) |
|
|
|
Drugs |
170.918 |
|
|
|
TOTAL |
159.761 |
|
|
|
|
|
|
|
|
Less :Interest |
153.538 |
|
|
|
Less : Other Unallocable Expenses and Extra Ordinary Items Net of Unallocable Income |
(6.332) |
|
|
|
NET PROFIT (+) /
LOSS(-) BEFORE TAX |
12.555 |
|
|
|
|
|
|
3 |
|
CAPITAL EMPLOYED |
|
|
|
|
Chemicals |
574.801 |
|
|
|
Drugs |
1054.866 |
|
|
|
Unallocated
(Including capital work in progress) |
100.103 |
|
|
|
TOTAL |
1729.770 |
NOTES:
- The above
results have been reviewed by the Audit and Risk Management Committee and
were considered and approved by the board of the directors at their
meeting held on 12 August 2013.
- Previous
period’s figures have been regrouped/reclassified wherever necessary.
- Limited
Review of the above unaudited financial results of the company in term of
clause 41 of the Listing Agreement has been carried out by the Statutory
Auditors of the company.
PRESS RELEASE:
IOL CHEMICALS AND
PHARMACEUTICALS WINS NATIONAL ENERGY CONSERVATION AWARD 2012
Ludhiana, December 15, 2012 – IOL Chemicals and Pharmaceuticals Limited (IOLCP), producers of APIs; Ibuprofen and specialty chemicals has announced that the company has once again won the National Energy Conservation Award 2012. The company has won the SECOND PRIZE in Drugs and Pharmaceuticals Sector for its continued efforts towards new technology implementation so as to conserve energy resources of the country. It is worth noting that winning the National Energy Conservation Award 2012 has enabled IOLCP to hold the distinction to have won the National Energy Conservation Awards consecutively for eight years. IOLCP has won the second prize of National Energy Conservation Award every year since 2005.
Mr. Vijay Singla, Director (Works), IOLCP received the award from Mr. Pranab Mukherjee, President of India at a special felicitation ceremony held on December 14, 2012, National Energy Conservation Day, at New Delhi.
According to Mr. Vijay Singla, Director (Works), IOLCP, “It is an honour for us that our sustained efforts towards energy conservation have been recognized through this award yet once again. This year, we have achieved considerable decline in energy consumption at our manufacturing units due to implementation of a number of energy conservation measures and ideas to increase the power-efficiency of our equipment and processes. We are committed towards further improving our performance and achieving higher standards in this critical area of operations.”
The National Energy Conservation Awards are given every year by the Ministry of Power, Government of India, to industrial units, office buildings, hotels and hospitals, zonal railways, state designated agencies, municipalities, and manufacturers of BEE Star labeled appliances that have made commendable efforts in energy conservation in their respective fields.
“IOLCP considers it a duty to
avoid any wastage and precious energy resources as we believe that their
sustained conserve availability will shape growth of India,” added
Mr. Singla.
Apart from the energy conservation initiatives at IOLCP, the company is also actively involved in protection and preservation of the environment in and around its manufacturing units. The company’s environmental policy includes sustained efforts towards minimizing adverse environmental impact by controlling emission, effluents and waste generation at its manufacturing units in order to prevent pollution and reduce its carbon footprint.
According to Mr. Singla, we understand and appreciate our role in environment conservation. We are committed to incorporate environmental management in all our business processes and practices and make a much wider contribution towards this cause in the coming few years.”
The company also emphasizes on optimum utilization of resources through model business practices that include diligent recovery of solvents, improvement in the yields, energy and water. The company also invests regularly in continuously upgrading its Environment Management System (EMS) and its operating standards to comply with applicable legalization and regulations.
ABOUT IOL CHEMICALS AND PHARMACEUTICALS LIMITED
Established in 1986, IOLCP, a public-listed company (NSE and BSE), is one of the largest manufacturers of APIs and specialty chemicals with presence in over 57 countries across the world. IOLCP manufactures and supplies APIs and specialty chemicals for use in various pharmaceutical, Textile, Packaging, Lamination, Pesticides, and Food processing applications.
IOLCP’s product portfolio includes APIs; Ibuprofen, specialty chemicals such as Ethyl acetate, Acetic anhydride, ISO Butyl Benzene, Mono Chloro Acetic Acid and Acetyl Chloride .
IOLCP's overseas customers are spread out across several countries including Brazil, Argentina, China, Chile, Peru, Colombia, South Africa, Thailand, Australia, Israel, Netherlands and many others. The company has strong business relationships with number of prestigious clients such as Ranbaxy Labs, Aurbindo Pharma, Dr Reddy’s, DS Group, CIPLA, Uflex Industries, ITC Limited, ICI Paints, Asian Paints, Pidilite, Rallis India, Hindustan Polymide, Gujarat Super Phosphate, Avantis India Ltd., Macleods Pharma Ltd, Abbott India Ltd etc.
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 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.62.52 |
|
|
1 |
Rs.100.25 |
|
Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
36 |
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.