MIRA
INFORM REPORT
|
Report Date : |
02.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
ASTEC LIFESCIENCES LIMITED |
|
|
|
|
Registered
Office : |
Elite Square, 7th Floor, 274, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
25.01.1994 |
|
|
|
|
Com. Reg. No.: |
11-076236 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.180.441 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1994PLC076236 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA20370A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA4832D |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of
Agro and Pharma Chemicals. |
|
|
|
|
No. of Employees
: |
105 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4279000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an
established company having a satisfactory track record. The company has seen
an improvement in its performance marked by better increase in its sales
volume as well as net profitability during 2013. The ratings also
take into consideration the decent financial profile marked by healthy
capital structure influenced by equity infusion by the promoters. Trade relations
are fair. Business is active. Payment terms are reported as usually correct. In view of long
standing experience and expertise of the promoters, the subject can be considered
normal 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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
India’s current
account deficit narrowed in the quarter ended September as government measures to
curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans: BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
April, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term, Non-Fund Based Limits: A3 |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
April, 2013 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Corporate Office : |
Elite Square, 7th Floor, 274, Perin Nariman Street, Fort,
Mumbai – 400 001, Maharashtra, India |
|
Tel No.: |
91-22-22618212 |
|
Mobile No.: |
91-9920689888 (Mr. Vijay Jain) |
|
Fax No.: |
91-22-22618289 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Research and |
F-39, MIDC, Phase-II, Dombivali (East), Thane – 421 204, Maharashtra,
India |
|
Location : |
Owned |
|
|
|
|
Factory 1 : |
B-17, B-18 and B-21, MIDC Mahad, Birwadi Industrial Area, Mahad,
District Raigad – 413 341, Maharashtra, India |
|
|
|
|
Factory 2 : |
B-16, MIDC Mahad, Birwadi Industrial Area, Local Unit Mahad, District
Raigad – 413 341, Maharashtra, India |
|
|
|
|
Factory 3 : |
Additional MIDC, Plot No.K-2/1/1, Mahad, District Raigad – 413 341,
Maharashtra, India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Ashok Vishwanath Hiremath |
|
Designation : |
Chairman and Managing Director |
|
Address : |
3, Jai Kiran, 35, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra,
India |
|
Date of Birth/Age : |
31.05.1955 |
|
Date of Appointment : |
01.02.1994 |
|
|
|
|
Name : |
Mr. Janak J. Rawal |
|
Designation : |
Whole Time Director (Appointed w.e.f. 20.01.2012) |
|
|
|
|
Name : |
Dr. P. L. Tiwari |
|
Designation : |
Non-Executive – Non Independent Director |
|
Date of Birth/Age : |
01.07.1945 |
|
Qualification : |
MBBS, MD |
|
Date of Appointment : |
25.01.1994 |
|
|
|
|
Name : |
Mr. Laxmikant Ramprasad Kabra |
|
Designation : |
Non-Executive – Non Independent Director |
|
Date of Birth/Age : |
09.03.1969 |
|
Qualification : |
B.com, F.C.A |
|
Expertise in specific Functional Area : |
Mr. Laxmikant
Kabra, is an eminent Chartered Accountant. He has over 23 years of experience
in the fields of Income Tax, Company Law, Banking, Finance etc. During his
tenure he has worked with Ficom Organics Limited and Rishiroop Rubber
International Limited for two years each after which he started his own
practice as a Chartered Accountant in Mumbai under the firm name Laxmikant
Kabra and Company. |
|
Date of Appointment : |
25.01.1994 |
|
|
|
|
Name : |
Prof. Vinod Malshe |
|
Designation : |
Non-Executive – Independent Director |
|
Date of Birth/Age : |
28.02.1947 |
|
Qualification : |
Master of Science (Technology) |
|
Date of Appointment : |
28.03.2008 |
|
|
|
|
Name : |
Mr. Sitendu Sharma |
|
Designation : |
Non-Executive – Independent Director |
|
|
|
|
Name : |
Mr. Mohammed Zakir |
|
Designation : |
Non-Executive – Independent Director |
|
|
|
|
Name : |
Mr. Mandar Kamlakar Patil |
|
Designation : |
Non-Executive – Independent Director |
|
Date of Birth/Age : |
24.05.1970 |
|
Qualification : |
B.Com, F.C.A |
|
Expertise in specific Functional Area : |
Mr. Mandar
Kamlakar Patil is a Chartered Accountant in Practice for over 19 Years. He is
practicing from Thane and is specialized in Statutory Audits, Direct Taxation
and Indirect Taxation. He is the major contributor to the Company in the
field of taxation. |
|
Date of Appointment : |
27.05.2012 |
KEY EXECUTIVES
|
Name : |
Ms. Tejal Jariwala |
|
Designation : |
Company Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr. Ravindra Inani |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8162880 |
44.05 |
|
|
943000 |
5.09 |
|
|
1651100 |
8.91 |
|
|
1651100 |
8.91 |
|
|
10756980 |
58.05 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
10756980 |
58.05 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
2801687 |
15.12 |
|
|
|
|
|
|
3098546 |
16.72 |
|
|
1756480 |
9.48 |
|
|
115437 |
0.62 |
|
|
7164 |
0.04 |
|
|
108273 |
0.58 |
|
|
7772150 |
41.95 |
|
Total Public shareholding (B) |
7772150 |
41.95 |
|
Total (A)+(B) |
18529130 |
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) |
18529130 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Agro and Pharma Chemicals. |
|
|
|
|
Products : |
·
Agrochemicals ·
Intermediates |
PRODUCTION STATUS (AS ON 31.03.2011):
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Agro and Pharma Intermediates |
M.T. |
NA |
3450.00 |
2992.60 |
GENERAL INFORMATION
|
No. of Employees : |
105 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes: a) Details of Guarantee
for each type of borrowings
b) Details of
security for each type of borrowings (a) Term loans
from banks are secured by way of first mortgage/ charge over entire movable and
immovable Fixed Assets (Present and Future) of the Company and second
Pari-Passu Charge over current assets of the Company. (b) Loans
repayable on demand from Banks (Working Capital loans) are secured by first
Pari-passu charge on the entire current assets of the Company both present
and future and further secured by second pari-passu charge on entire fixed
assets (Present and Future) of the Company. C) Terms of
repayment of term loans and other loans Term loans
(Foreign Currency) of Rs.165.462 millions (Previous year Rs.101.580 millions)
having an interest rate of 7.25% are repayable in 8 semi annual installments
commencing from 1st July, 2013. Term Loan of
Rs.9.176 millions (Previous Year Rs.13.810 millions) having interest rate of 15%
are repayable in Quarterly Installments of Rs.1.132 millions each. Last
Installment due on 31st March, 2015. Installments falling due in
respect of all the above loans upto 31.03.2014 have been regrouped under
Current Maturities of Long Term debt. Term Loan of
Rs.50.000 millions (Sanctioned Rs.100.000 millions) (Previous Year Nil)
having interest rate of BBR Plus 300bps which is 13.25% are repayable in 18
Quarterly equal Installments of Rs.5.556 millions each. Last Installment due
on 31st March, 2018. Installments falling due in respect of all
the above loans upto 31.03.2014 have been regrouped under Current Maturities
of Long Term debt. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P.M. Kathariya and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Cost Auditors : |
Ritesh N. Talathi and Company Cost Accountants |
|
|
|
|
Internal Auditors : |
P. S. V. Jain and Associates Chartered Accountants |
|
|
|
|
Subsidiaries : |
·
Behram Chemicals Private Limited ·
Astec Crop Care Private Limited ·
Astec Europe SPRL ·
Comercializadora Agricola ·
Agroastrachem Cia Ltda at Columbia |
|
|
|
|
Associates : |
·
Opus Chemicals Private Limited ·
GreenGuard Technologies Private Limited ·
India TL Domain Private Limited ·
Altimax Financial Services Private Limited ·
Sahbhagi Financial Services Private Limited |
CAPITAL STRUCTURE
AS ON 17.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18529130 |
Equity Shares |
Rs.10/- each |
Rs.185.291 millions |
|
|
|
|
|
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18044130 |
Equity Shares |
Rs.10/- each |
Rs.180.441 millions |
|
|
|
|
|
a) Reconciliation of share capital (Equity)
|
Particulars |
No. of Shares |
Amount (Rs. in
Millions) |
|
Balance at the beginning of the year |
16929130 |
169.291 |
|
Add : Issued during the year |
1115000 |
11.150 |
|
Balance at the end of the year |
18044130 |
180.441
|
b) Shareholders holding more than 5% of the average shares in the
company’s Equity Shares
|
Name of Shareholder |
No. of Shares |
Amount (Rs. in
Millions) |
|
Ashok V. Hiremath |
6115780 |
61.158 |
|
Suresh Hiremath |
1650000 |
16.500 |
|
Dr. P. L. Tiwari |
1650000 |
16.500 |
|
Hridaynath Consultancy Private Limited |
1054849 |
10.548 |
|
Total |
10470629 |
104.706 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
180.441 |
169.291 |
169.291 |
|
(b) Reserves & Surplus |
885.212 |
814.735 |
800.393 |
|
(c) Money received against share warrants |
4.123 |
13.600 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
1069.776 |
997.626 |
969.684 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
214.555 |
110.820 |
21.206 |
|
(b) Deferred tax liabilities (Net) |
38.567 |
27.580 |
24.129 |
|
(c) Other long term liabilities |
263.572 |
218.292 |
34.251 |
|
(d) Long-term provisions |
4.289 |
0.738 |
7.835 |
|
Total Non-current
Liabilities (3) |
520.983 |
357.430 |
87.421 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
445.120 |
559.279 |
378.755 |
|
(b) Trade payables |
454.665 |
295.174 |
228.287 |
|
(c) Other current liabilities |
59.613 |
45.768 |
48.578 |
|
(d) Short-term provisions |
27.900 |
13.384 |
9.838 |
|
Total Current
Liabilities (4) |
987.298 |
913.605 |
665.458 |
|
|
|
|
|
|
TOTAL |
2578.057 |
2268.661 |
1722.563 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1201.563 |
755.418 |
719.861 |
|
(ii) Intangible Assets |
0.438 |
0.330 |
0.000 |
|
(iii) Capital work-in-progress |
130.716 |
436.206 |
89.948 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
9.981 |
9.881 |
9.757 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
78.741 |
31.487 |
11.146 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.545 |
|
Total Non-Current
Assets |
1421.439 |
1233.322 |
831.257 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.243 |
117.382 |
78.772 |
|
(b) Inventories |
441.125 |
433.230 |
353.480 |
|
(c) Trade receivables |
601.354 |
307.302 |
342.526 |
|
(d) Cash and cash equivalents |
43.024 |
35.408 |
30.090 |
|
(e) Short-term loans and advances |
70.872 |
142.017 |
86.438 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current
Assets |
1156.618 |
1035.339 |
891.306 |
|
|
|
|
|
|
TOTAL |
2578.057 |
2268.661 |
1722.563 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
1656.575 |
1108.406 |
1111.251 |
|
|
|
Other Income |
14.375 |
10.189 |
10.280 |
|
|
|
TOTAL (A) |
1670.950 |
1118.595 |
1121.531 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1087.212 |
780.078 |
691.756 |
|
|
|
Purchase of traded goods |
0.000 |
69.699 |
184.538 |
|
|
|
Changes in inventories of finished goods, work-in-progress and traded
goods |
31.242 |
(82.386) |
(46.252) |
|
|
|
Employee benefit expenses |
79.223 |
47.479 |
39.265 |
|
|
|
Other Expenses |
188.681 |
129.699 |
82.734 |
|
|
|
Duties and Taxes/ Prior Period Items |
9.492 |
1.411 |
(0.218) |
|
|
|
TOTAL (B) |
1395.850 |
945.980 |
951.823 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
275.100 |
172.615 |
169.708 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
70.322 |
53.429 |
40.354 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
204.778 |
119.186 |
129.354 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
117.321 |
84.754 |
57.732 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
87.457 |
34.432 |
71.622 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
28.012 |
10.252 |
20.779 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
59.445 |
24.180 |
50.843 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports at FOB |
770.100 |
384.400 |
251.000 |
|
|
TOTAL EARNINGS |
770.100 |
384.400 |
251.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
772.900 |
301.800 |
155.578 |
|
|
|
Capital Goods |
0.000 |
1.200 |
0.000 |
|
|
TOTAL IMPORTS |
772.900 |
303.000 |
155.578 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
3.45 |
1.43 |
3.00 |
|
|
|
- Diluted |
3.43 |
1.43 |
3.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.56 |
2.16 |
4.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.28 |
3.11 |
6.45 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.59 |
1.89 |
4.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.03 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.62 |
0.67 |
0.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.17 |
1.13 |
1.34 |
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
SHORT TERM BORROWINGS |
|
|
|
Loans and advances from related parties |
17.136 |
12.802 |
|
Loans repayable on demand from other parties |
11.305 |
11.286 |
|
Total
|
28.441 |
24.088 |
FINANCIAL RESULTS:
The year 2012-13
has been one of turnaround for the Company, against the backdrop of prior period
legacy challenges. During the year, the Company focused on its key markets for
driving its business growth; the Company improved its product mix and
capitalized on product level opportunities opening up on regulatory approvals
coming about; at the same time, the Company continued to pursue product
registrations for enhanced market growth. The company has identified contract
manufacturing as a platform for future growth. For the year ending 31st
March, 2013, Operating Profit i.e. EBITDA is of the order of Rs.275.099
millions, as against Operating Profit of Rs.172.615 millions in the preceding
year 2011-12. Profit after Tax is Rs.59.445 millions for the year 2012-13,
compared to Profit after Tax of Rs.24.181 millions reported for 2011-12.
MANAGEMENT DISCUSSION
AND ANALYSIS
Business
Environment
The Agro-chemicals
Industry grows in tandem with the agricultural sector. Agricultural growth
itself is greatly affected by monsoon, especially in the agrarian economies
with large tracts of land-mass remaining uncovered with water irrigation
systems. Thus, a year of good monsoon is a harbinger of growth for the agrarian
economies, including Agro-chemicals Industry. Conversely, the vagaries of
monsoon tend to be a spoiler for the sector.
As is well known,
countries with large and growing population are forever under pressure for
higher food produce from their limited land mass; the arable land itself is
limited and getting shrunk all over the world in the wake of industrial
development and urbanization. The scenario makes it imperative for the
stakeholders in the agriculture space to look for and adopt new and more
efficient methods of crop protection and of maximizing their yields from the
given land resources under cultivation. Agro-chemicals are gaining acceptance
worldwide with increasing awareness of their beneficial role in minimizing
losses due to pests and thereby improving yields. For the players in the
Agro-chemicals Industry, the challenge is to develop new products through
research and innovation for more efficient crop protection through safe and
efficient products and product applications across broad spectrum of
agricultural crops in all parts of the world.
Global
Agrochemical Industry
Globally, the standout
markets are the ones in Asia, Europe and Latin America where the Agro-chemicals
business has been reporting consistently high growth, riding on increasing
agricultural production and strong commodity prices. Latin America at 13% is
the highest growing region; Brazil happens to be the country with highest
consumption of Agro-chemicals and has a market size of about US $ 9 Billion.
The Industry
growth has been around 7-8% globally in recent years, thanks in good part to
good monsoons over several years in most markets. In the year 2012, the
industry witnessed a growth of 6.4% on nominal terms and 8.9% on real terms and
has reached a turnover size of $ 47.3 Billion. Along with non-agricultural
consumption the industry size is about 53 Billion. Global Commodity prices have
been ruling firm at high levels since 2012, on the back of growing demand and
the situation is unlikely to be any different in 2013, given present levels of
global commodity stocks and growing demand. Going by the current scenario of continuing
high prices of commodity stocks, the expectation is that 2013 would be a good
year for the agrarian economies across the Globe. The Agro-chemicals Industry
is likewise expected to fare well in 2013. Over the next 5 years, the Industry
is expected to grow at about 5% annually, at which rate it should be a $67
Billion Industry by 2017 including non-agricultural consumption.
Indian
Agrochemical Industry
Indian
Agro-chemicals Industry is the 11th largest globally and the sixth fastest
growing market across the world. However, consumption of crop protection
products in India is among the lowest in the world at 0.6 kg/ha compared to 13
kg/ha in China and 7 kg/ha in US. Crop losses in India due to pest attack are
about 28% among the highest in the world. There is thus a huge scope and
potential for wider and intensive use of quality pesticides hand in hand with
use of modern farming techniques through education and creating awareness among
the farming community.
The Indian
agricultural industry, post a poor Rabi season in the previous year, witnessed
inconsistent monsoon in 2012-13, impacting farm economy across the States in
North, Gujarat, Maharashtra and some parts of Karnataka. Cotton acreage fell by
nearly 10% over the previous year and Paddy crop was affected due to lower
water storage in dams in key states. These conditions materially affecting the
Agro-chemicals Industry have been offset to some extent as a result of
increased consumption of herbicides and insecticides in Soya and Pulses segments.
Overall, the Industry estimated to be around 90000.000 millions achieved a
modest growth of less than 5%. MNCs continue to maintain their market
leadership by virtue of new molecules.
The overall food
production is estimated to be close to 250 Million tons in 2012-13, marginally
short of the record level of 252 Million tons of food production achieved in
2011-12. Government continues to permit export of wheat and other selected
commodities whose stocks are far in excess of the buffer levels of storage. Sustained
demand for food crops and high commodity prices for most of the crops (other
than cotton) are expected to boost consumption of Agro-chemicals driving the
domestic industry towards double-digit growth, under normal monsoon conditions.
Company’s Performance
The focus of the
Company in the year 2012-13 has been on improving performance across all
aspects of its business operations namely; enhance manufacturing capability and
consistency in production, becoming fully compliant with environmental regulations,
achieving competitiveness through efficiency in operations and enhance market
presence and access leading to accelerated and profitable growth.
In the year
2011-12, the Company had to incur high spends on effluent treatment in order to
meet the environmental regulations; it had to resort to further borrowing to
address capital expenditure requirements and the infrastructure requirements
for environment management.
The remedial
measures initiated since the latter half of the year 2011-12 and carried
through in the year 2012-13 have led to significant progress in the year
2012-13 in various critical areas of Company performance:
·
Capacity of key large volume molecules enhanced
through de-bottlenecking to support higher volumes of production in peak season.
·
The overall portfolio of registrations held by the
Company is 92, spread over 44 countries and in addition to it, Company has
about 100 registrations to cater the Indian market.
·
The Company has identified contract manufacturing
as a platform for future growth. India is well positioned to capitalize on this
opportunity as multinationals are moving manufacturing from high cost western
economies to India and China. India has a strong pool of scientific manpower
and a well developed eco-system for the production of fine chemicals. Last year
the company commenced commercial production of at its new state of the art
facility at its new site at MIDC Mahad, Maharashtra (K-2). The said facility
incorporates the proprietary process technology developed by their multinational
major customer. Work of the second project is also completed and the commercial
production has already started. The commencement of these new projects will
have a substantial positive impact on the Company's agrochemical business in
coming years.
These initiatives
contributed to Production Volumes going up. During the year 2012-13 Turnover
(Net) was Rs.1656.500 millions as against Rs.1108.400 millions in the year
2011-12. The export Turnover was at Rs.770.100 millions as against Rs.384.400
millions in 2011-12.
OUTLOOK
The Company has
product offerings mainly in the segments of the crop protection Industry i.e.,
Fungicides, Insecticides, Herbicides. The Company’s strategy is to consolidate its
presence through a few key products and access customers across the globe with
a view to ensure stable performance quarter on quarter in an otherwise seasonal
industry. Export volumes complement domestic sales and insulate them against
vagaries and shifts in market behavior, which is not an uncommon experience in
the agrochemical business. For the year 2012, it is estimated that the growth
in fungicides sales, a key segment of Astec’s business, had outpaced the growth
of the Industry. It is expected that this trend of higher growth of fungicides
is to continue in the coming years. The initiatives taken by Astec over the
preceding couple of years, more so in 2012-13 and its strategic plans going
forward are expected to put the Company in a position to capitalize on this
opportunity significantly in the markets of its presence.
The company has
increased capacities of its plants. It has also implemented many cost reduction
measures. In addition to this it has introduced new measures to improve its EHS
performance.
Investment already
made in additional capacities including waste water treatment facilities would
make it possible to undertake treatment of higher volumes of production and
reduce effluent treatment costs.
SUBSIDIARY
OPERATIONS:
During the year,
Company’s 100% subsidiary namely Astec Crop Care Private Limited consolidated
its business of retail manufacturing of agrochemical formulations. The sales
were Rs.90.600 millions in the year 2012-13 as compared to sales of Rs.33.400
millions in the preceding financial year 2011-12. Company is hopeful of
achieving better performance with minimum targeted average CAGR in sales of 30%
per annum over next few years. The other subsidiary companies are yet to
commence any major business operations.
SUBSIDIARY COMPANIES:
The Company has
following Subsidiary Companies:
a) Astec Crop
Care Private Limited (a 100% subsidiary company) with the main object to
start the business of trading in Agrochemicals and Pesticides formulation to
sell in local as well as in export market with its own brand name. For the year
ending 31st March, 2013, Operating Profit i.e. EBITDA is of the
order of Rs.8.802 millions, as against Operating Profit/(Loss) of Rs.(7.287)
millions in the preceding year 2011-12. Profit after Tax is Rs.0.368 million
for the year 2012-13, compared to Loss of Rs.9.636 millions reported for
2011-12.
b) Behram
Chemicals Private Limited is a 65.63% subsidiary of subject and has
manufacturing facility at Mahad. This facility is given to subject, on lease.
The Company has also foreign Subsidiary Companies primarily to pursue grant of
licenses and product registrations in conformity with the local laws of the
respective countries/regions.
c) Astec Eurpoe
Sprl is 50.10 % subsidiary of their Company which is engaged in product
registration activities. This company is yet to start any major commercial
activity.
d) During the
year, the Company has set-up a new subsidiary namely, Comercializadora
Agricola Agroastrachem Cia Ltda in Bagota, Columbia with a main object of
product registration activities. This company is yet to start any major
commercial activity.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs. in millions) |
31.03.2012 (Rs. in millions) |
|
Bank Guarantee Outstanding |
4.350 |
56.001 |
|
Letters of credit with Banks |
169.233 |
84.477 |
|
Bills discounted but not realised |
70.913 |
41.799 |
|
Claims against company not acknowledged as debts in respect of sales tax demand against which company’s appeal is pending before commissioner of sales tax (Appeal) |
11.649 |
5.302 |
|
Claims against
company not acknowledged as debts in respect of Income Tax |
11.247 |
-- |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30
SEPTEMBER, 2013 (STANDALONE)
(Rs. in millions)
PART 1
|
Sr. No |
Particulars |
Quarter Ended |
Six Month Ended |
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
Income from
Operations |
|
|
|
|
|
a) Net Sales / Income from operations (Net of Excise Duty) |
585.008 |
416.425 |
1001.432 |
|
|
b) Other Operating Income |
2.800 |
0.593 |
3.394 |
|
|
Total Income from
Operations (net) |
587.808 |
417.018 |
1004.826 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
421.738 |
292.665 |
714.403 |
|
|
b) Purchase of stock in trade |
-- |
-- |
-- |
|
|
c) Changes in inventories of finished goods and WIP |
(28.373) |
(28.245) |
(56.618) |
|
|
d) Employee benefits expenses |
24.370 |
21.621 |
45.991 |
|
|
e) Depreciation and amortisation expenses |
36.182 |
35.417 |
71.599 |
|
|
f) Other expenditure |
60.771 |
45.391 |
106.162 |
|
|
Total Expenses |
514.688 |
366.850 |
881.538 |
|
3 |
Profit/ (Loss) from
operations before other income, Finance Cost and Exceptional Items (1-2) |
73.121 |
50.168 |
123.289 |
|
4 |
Other Income |
-- |
1.691 |
1.691 |
|
5 |
Profit / (Loss) from
ordinary activities before finance cost and exceptional items (3+4) |
73.121 |
51.859 |
124.979 |
|
6 |
Finance Costs |
23.087 |
15.776 |
38.863 |
|
6A |
Foreign Exchange Fluctuation ( Profit ) / Loss |
10.172 |
6.693 |
16.865 |
|
7 |
Profit after finance
costs but before Exceptional Items (5-6-6A) |
39.862 |
29.390 |
69.252 |
|
8 |
Exceptional Items |
0.278 |
3.173 |
3.451 |
|
9 |
Profit / (Loss)
from ordinary activities before tax (7-8) |
39.584 |
26.217 |
65.801 |
|
10 |
Tax Expense (Including deferred tax) |
9.008 |
5.944 |
14.952 |
|
11 |
Net Profit / (Loss)
from ordinary activities after tax (9-10) |
30.576 |
20.273 |
50.849 |
|
12 |
Extra ordinary Items |
-- |
-- |
-- |
|
13 |
Net Profit / (Loss)
for the period (11 - 12) |
30.576 |
20.273 |
50.849 |
|
14 |
Minority Interest |
-- |
-- |
-- |
|
15 |
Net Profit / (Loss)
after taxes, minority interest (13-14-15) |
30.576 |
20.273 |
50.849 |
|
16 |
Paid-up equity share capital (Face Value Rs.10/-) |
185.291 |
180.441 |
185.291 |
|
17 |
Reserves (excluding Revaluation Reserve) |
947.700 |
905.484 |
947.700 |
|
18 |
Earnings per share |
|
|
|
|
|
- Basic |
1.69 |
1.12 |
2.74 |
|
|
- Diluted |
1.69 |
1.12 |
2.74 |
|
|
|
|
|
|
|
|
PART II |
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
- No of shares |
7772150 |
7772150 |
7772150 |
|
|
- Percentage of shareholding |
41.95% |
43.07% |
41.95% |
|
2 |
Promoters and
promoter group shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- No of shares |
-- |
-- |
-- |
|
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group |
-- |
-- |
-- |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
-- |
-- |
|
|
b) Non-encumbered |
|
|
|
|
|
- No of shares |
10756980 |
10271980 |
10756980 |
|
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
58.05% |
56.93% |
58.05% |
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
Pending at the beginning of the quarter |
0 |
0 |
|
|
Received during the quarter |
0 |
1 |
|
|
Disposed of during the quarter |
0 |
1 |
|
|
Remaining unresolved at the end of the quarter |
0 |
0 |
Notes:
1.
The above results were reviewed by the Audit Committee and approved
by the Board of Directors at their meeting on 23.10.2013
2.
The company has only one reportable segment i.e.
Agrochemicals and Pharma Intermediates.
3.
Above Financial Results includes financials results of Behram
Chemicals Private Limited (65.63% subsidiary), and Astec CropCare Private
Limited (100% Subsidiary of Astec). Financials of Astec Europe Sprl (50.10%
subsidiary) and Comercializadora Agricola Agroastrachem Cia Ltda at Columbia
(100% Subsidiary of Astec) have not been included in consolidation as there was
no commercial activity during this period
4.
Figures of the previous period have been
regrouped/rearranged, wherever necessary.
5.
Key standalone financial information of the company is given
below:-
(Rs. in millions)
|
Particulars |
Quarter Ended |
|
Six Month Ended |
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
Net Sales/ Income from operations (Net of
Excise Duty) |
585.008 |
416.425 |
1001.432 |
|
Other Operating Income |
2.800 |
0.593 |
3.394 |
|
Profit / (Loss) from ordinary activities
before tax |
39.584 |
26.217 |
65.801 |
|
Net Profit/ (Loss) from ordinary
activities after tax |
30.576 |
20.273 |
50.849 |
|
Earnings per share - Basic |
1.69 |
1.12 |
2.74 |
|
Earnings per share - Diluted |
1.69 |
1.12 |
2.74 |
FIXED ASSETS:
Tangible Assets
· Lease Hold Land
· Factory Building
· Corporate Office
· Plant and Machinery
· Electrical Installation
· Office Equipments
· Furniture and Fixtures
· Air Conditioner
· Motor Vehicles
· Computer
· Flats
Intangible Assets
· Computer Software
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.61.93 |
|
|
1 |
Rs.102.39 |
|
Euro |
1 |
Rs.85.12 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.