MIRA INFORM REPORT

 

 

Report Date :

26.07.2014

 

IDENTIFICATION DETAILS

 

Name :

SABERO ORGANICS GUJARAT LIMITED

 

 

Registered Office :

Plot No. 2102, G.I.D.C., District Bulsar, Sarigam – 396155, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

29.11.1991

 

 

Com. Reg. No.:

04-020753

 

 

Capital Investment / Paid-up Capital :

Rs.338.511 Millions

 

 

CIN No.:

[Company Identification No.]

L24110GJ1991PLC020753

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS15850C/ SRTS05781G

 

 

PAN No.:

[Permanent Account No.]

AABCS5313C

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

Manufactures and Markets vide range of Fungicides, Herbicides, Insecticides and Specialty Chemicals.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “Coromandel International Limited”. It is an established company having a fine track record.

 

Financial position of the company seems to be decent.

 

The ratings also take into consideration the established market position of the subject in the domestic as well as international markets.

 

Trade relations are fair. Business is active. Payment terms are regular and as per commitments.

 

In view of strong management and support of the holding company, the subject can be considered 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.

 

INDIAN ECONOMIC OVERVIEW

 

N E W S

 

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

 

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

 

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

 

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

 

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

 

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

 

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

 

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

 

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

 

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating: A+

Rating Explanation

Adequate degree of safety and low credit risk.

Date

15.11.2013

 

 

Rating Agency Name

CRISIL

Rating

Short Term Rating: A1+

Rating Explanation

Very Strong degree of safety lowest credit risk.

Date

15.11.2013

 

 

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 has been found enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

INFORMATION DECLINED

 

Management Non Cooperative (91-260-2780395)

 

LOCATIONS

 

Registered Office/ Factory 1:

Plot No. 2102, G.I.D.C., District Bulsar, Sarigam – 396155, Gujarat, India

Tel. No.:

91-260-2780395/ 2780396/ 915/ 2780852/ 3918500

Fax No.:

91-260-2780853/ 3918500

E-Mail :

mails@sabero.com

sabero@quest4india.com

sabero@bom3.vsnl.net.in

Website :

http://www.sabero.com

 

 

Factory 2:

Plot No. Z/103/G, Dahej SEZ-II, Taluka-Vagra, District Bharuch, Gujarat, India

 

 

Corporate Office :

Bezzola Commercial Complex, 3rd Floor, A - Wing, Suman Nagar, Sion Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India

Tel. No.:

91-22-61132400

Fax No.:

91-22-61132405

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. M. K. Tandon

Designation :

Chairman 

Date of Birth/Age :

73 Years

Qualification :

Masters Degree in Commerce, Degree in Law

Date of Appointment :

11.07.2011

 

 

Name :

Mr. M. M. Venkatachalam

Designation :

Director

Date of Birth/Age :

55 Years

Qualification :

Graduated from the University of Agricultural Sciences, Masters Degree in Business Administration from George Washington University, USA,

Experience :

31 Years

Date of Appointment :

19.12.2011

 

 

Name :

Mr. V. Ravichandran

Designation :

Director

Qualification :

Engineering Graduate, Post Graduate Diploma in Management, qualified as Cost Accountant and Company Secretary.

Date of Appointment :

11.07.2011

 

 

Name :

Mr. Bhavesh Vora

Designation :

Additional Director

Date of Birth/Age :

47 Years

Qualification :

Chartered Accountant

Experience :

23 Year

Date of Appointment :

10.10.2013

 

 

Name :

Mr. Kapil Mehan

Designation :

Director

Date of Birth/Age :

55 Year

Qualification :

Graduate in Veterinary Science and Animal  Health, PG Diploma in Management from IIM, Ahmedabad

Experience :

34 Years

Date of Appointment :

19.12.2011

 

 

Name :

Mr. G. Veera Bhadram

Designation :

President and Whole-time Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Pritam Vartak

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2014

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

25368287

74.94

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

25368287

74.94

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

25368287

74.94

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

2100

0.01

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

300

0.00

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

1267548

3.74

http://www.bseindia.com/include/images/clear.gifSub Total

1269948

3.75

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

1174599

3.47

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

3437178

10.15

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1880278

5.55

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

720807

2.13

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

31200

0.09

http://www.bseindia.com/include/images/clear.gifClearing Members

62202

0.18

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

2100

0.01

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

617305

1.82

http://www.bseindia.com/include/images/clear.gifTrusts

8000

0.02

http://www.bseindia.com/include/images/clear.gifSub Total

7212862

21.31

Total Public shareholding (B)

8482810

25.06

Total (A)+(B)

33851097

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

33851097

0.00

 

 

 

Total (A)+(B)

33866077

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

 

 

 

Total (A)+(B)+(C)

33866077

100.00

 

 

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.

Name of the Shareholder

Details of Shares held

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

 

 

No. of Shares held

As a % of grand total (A)+(B)+(C)

 

1

Coromandel International Limited

2,53,56,361

74.91

74.91

2

Pressmet Private Limited

11,926

0.04

0.04

 

Total

2,53,68,287

74.94

74.94

 

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

 

 

 

 

 

1

Veritable LP.A/c VEMF A LP

1070849

3.16

3.16

2

Akash Bhanshali

434719

1.28

1.28

3

Gangandeep Credit Capital Private Limited

545892

1.61

1.61

4

Amee Parikh

362260

1.07

1.07

5

Anuj Anantrai Sheth

437036

1.29

1.29

 

Total

2850756

8.42

8.42

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufactures and Markets vide range of Fungicides, Herbicides, Insecticides and Specialty Chemicals.

 

 

Products :

Products Description

Item Code No.

 

Mancozeb

38081029

Trimethyl Phosphite

29310009

Acephate

38081029

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         State Bank of India

·         The Ratnakar Bank Limited

·         Axis Bank Limited

·         Export-Import Bank of India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2014

As on

31.03.2013

Long Term Borrowings

 

 

Term Loans

 

 

From Banks

368.012

650.461

From Non Banking Finance Company

0.024

0.263

Short Term Borrowings

 

 

From Banks

 

 

Cash Credit facilities

883.598

610.369

Packing credit

0.000

239.634

Buyers credit

185.287

260.522

Total

1436.921

1761.249

 

A. Terms of repayment is as under

Rs. In Millions

 

 

Loan Outstanding as at March 31, 2014

Loan outstanding as at March 31, 2013

Repayment schedule

 (i)

Term loans from Banks

Axis Bank {Refer Note b(i)}

241.668

301.005

To be repaid in 16 quarterly equal installments. First Payment was made in the month of July, 2013 and Last payment shall be made in the month of April, 2017.

 

Ratnakar Bank {Refer Note b(i)}

100.000

 200.000

To be repaid in 8 equal quarterly installments. First payment was made in the month of June, 2013 and Last payment shall be made in the month of March, 2015.

 

Exim Bank {Refer Note b(i)}

137.500

187.500

To be repaid in 16 equal quarterly installments after moratorium of 24 months from date of first disbursement. First payment was made in January, 2013 and last payment shall be made in the month of October, 2016.

 

ECB from Axis Bank

140.512

 191.409

To be repaid in 17 equal quarterly installments after

 

{Refer Note b(i)}

 

 

moratorium of 5 quarters from initial utilisation date. First payment was made in the month of February, 2012 and the Last payment shall be made in the month of February, 2016.

 

Foreign Currency Loan from

69.202

85.515

To be repaid in 16 equal quarterly installments after

 

Exim Bank {Refer Note b(i)}

 

 

moratorium of 24 months from date of first disbursement. First payment was made in the month of January, 2013 and the Last payment shall be made in the month of October, 2016.

 

Deutsche Bank {Refer Note b(ii)}

150.000

-

To be repaid in one installment and payment shall be made in the month of March 2015.

 (ii)

From Non Banking Finance

Companies

{Refer Note No. (b) (iii)}

 

 

 

 

Tata Motors Finance Limited

0.159

0.279

To be repaid in 59 equal monthly installments. First payment was made in July 2010 and last payment is due in May 2015.

 

Kotak Mahindra Prime Limited

-

0.033

To be repaid in 35 equal monthly installments .First payment was made in October 2010 and last payment was made in August 2013.

 

Kotak Mahindra Prime Limited

-

0.220

To be repaid in 59 equal monthly installments. First payment was made in February 2010 and last payment is due in December 2014. Prepayment done in March 2014.

 

 

839.041

965.961

 

 

b. Security

 

(i) Rupee Term Loans from Axis Bank and Exim Bank, ECB from Axis Bank, FC Term Loan from Exim Bank and Working Capital Term Loan from Ratnakar Bank are secured by way of pari passu first charge on the entire fixed assets and second pari passu on the entire current assets of the Company.

 

(ii) Loan from Deutsche Bank is unsecured

 

(iii) Loans from Non banking finance companies are secured by way of hypothecation of vehicles acquired.

 

(iv) Rupee Term Loans are in the range of 11% p.a. to 12.75% p.a. and Foreign Currency Term Loans are in the range of 3.40% p.a. to 4.90% p.a.

 

Security

 

(i) First pari passu charge on the entire current assets (including Hypothecation of Stock and book debts) both present and future and second pari passu charge on all the fixed assets of the Company, excluding vehicles financed by their lenders.

 

(ii) Rupee Working Capital is in the range of 10% p.a. to 11% p.a.

 

(iii) Foreign Currency Working Capital (PCFC/Buyers Credit) is in the range of 1.18% p.a. to 3.45% p.a.

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Tower3, 27th – 32nd Floor, Indlabulls Finance Centre, Elphinstone Mill Compound Senapati Bapat Marg, Elphinstone (West), Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-61854000

Fax No.:

91-22-61854501 / 4601

 

 

Ultimate Holding Company :

E.I.D Parry (India) Limited

 

 

Holding Company :

Coromandel International Limited (CIL)

 

 

Subsidiary :

·         Sabero Australia Pty Limited

·         Sabero Europe B.V.

·         Sabero Organics America S.A.

·         Sabero Argentina S.A.

·         Sabero Mexico S.A. De C.V. w. e. f. April 2013

 

 

Associate :

Sabero Organics Philippines Asia Inc

 

 

Subsidiary of Holding Company

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

36000000

Equity Shares

Rs.10/- each

Rs.360.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

33851097

Equity Shares

Rs.10/- each

Rs.338.511 Millions

 

 

 

 

 

NOTE:

 

(i) Reconciliation of number of Equity shares and amount outstanding at the beginning and at the end of the year:

 

Particulars

 

 

As at 31 March 2014

Number of Shares

Rs. in Millions

Per last Balance sheet

33,847,787

338.478

Add: converted into fully paid during the year

3,310

0.033

 

33,851,097

338.511

Per last Balance sheet-partly paid

18,290

0.073

Less: Shares forfeited

14,980

0.060

Less: Converted to fully paid during the year

3,310

0.013

Issued during year/calls in arrears

--

--

Outstanding at the end of the year

 

33,851,097

338.511

 

 

(ii) Rights, preferences and restrictions attached to equity shares

 

The Company has one class of Equity Shares having a face value of Rs.10 /- each. Each shareholder is eligible for one vote per share held. The dividend (if any) proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholdings.

 

 

(iii) Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates:

 

Particulars

 

2014

(a) Coromandel International Limited (Holding Company)

25,356,361

(b) Parry Chemicals Limited ( Subsidiary of Holding Company)

--

(c) Pressmet Private Limited

11,926

 

 

(iv) Shares held by each shareholder holding more than 5% of equity share capital:

 

Particulars

As at 31, March

2014

 

 

Number of Shares

%

Coromandel International Limited (Holding Company)

25,356,361

74.91%

 

 

(v) The Company has not issued or allotted any shares pursuant to contracts without consideration being received in cash or by way of bonus shares during immediately preceding five years.

 

(vi) 14,980 (2013:Nil) equity shares of Rs.10 each, Rs.4/- each paid up, with voting rights were forfeited during the current year.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

338.511

338.551

338.551

(b) Reserves & Surplus

715.160

383.765

306.449

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

1053.671

722.316

645.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

368.036

650.724

642.831

(b) Deferred tax liabilities (Net)

19.217

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

3.549

9.514

13.221

Total Non-current Liabilities (3)

390.802

660.238

656.052

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2380.239

1919.554

1429.562

(b) Trade payables

1498.528

1447.191

1059.385

(c) Other current liabilities

509.737

417.247

194.547

(d) Short-term provisions

1.594

6.762

4.230

Total Current Liabilities (4)

4390.098

3790.754

2687.724

 

 

 

 

TOTAL

5834.571

5173.308

3988.776

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1558.276

1430.329

1159.386

(ii) Intangible Assets

34.976

37.463

42.036

(iii) Capital work-in-progress

396.385

375.585

441.267

(iv) Intangible assets under development

78.210

58.675

18.776

(b) Non-current Investments

85.219

82.095

82.095

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

194.574

154.124

208.934

(e) Other Non-current assets

20.342

13.014

2.483

Total Non-Current Assets

2367.982

2151.285

1954.977

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

804.523

875.540

599.774

(c) Trade receivables

1991.991

1478.033

723.973

(d) Cash and cash equivalents

9.511

102.208

180.037

(e) Short-term loans and advances

525.622

450.869

460.081

(f) Other current assets

134.942

115.373

69.934

Total Current Assets

3466.589

3022.023

2033.799

 

 

 

 

TOTAL

5834.571

5173.308

3988.776

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

7202.436

5148.293

3584.267

 

 

Other Income

11.879

9.475

27.957

 

 

TOTAL                                     (A)

7214.315

5157.768

3612.224

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

4576.588

3444.598

2323.320

 

 

Purchases of Stock-in-Trade

0.000

17.246

62.048

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

238.580

(165.663)

39.354

 

 

Employees benefits expense

240.912

211.199

232.405

 

 

Other expenses

1374.137

1142.360

1298.705

 

 

Exceptional items

0.000

17.434

0.000

 

 

TOTAL                                     (B)

6430.217

4667.174

3955.832

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

784.098

490.594

(343.608)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

303.572

298.946

292.494

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

480.526

191.648

(636.102)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

129.974

113.717

110.393

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                 (G)

350.552

77.931

(746.495)

 

 

 

 

 

Less

TAX                                                                  (H)

19.217

0.615

(134.058)

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

331.335

77.316

(612.437)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

4216.696

2733.821

1750.127

 

TOTAL EARNINGS

4216.696

2733.821

1750.127

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1433.284

1297.398

919.907

 

 

Stores & Spares

0.000

0.107

0.000

 

 

Capital Goods

0.000

9.042

0.733

 

 

Others

7.998

8.030

19.558

 

TOTAL IMPORTS

1441.282

1314.577

940.198

 

 

 

 

 

 

Earnings Per Share (Rs.)

9.79

2.28

(18.08)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

4.59

1.50

(16.95)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

4.87

1.51

(20.83)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.65

1.67

(21.66)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.33

0.11

(1.16)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

2.61

3.56

3.21

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.79

0.80

0.76

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

338.551

338.551

338.511

Reserves & Surplus

306.449

383.765

715.160

Net worth

645.000

722.316

1053.671

 

 

 

 

long-term borrowings

642.831

650.724

368.036

Short term borrowings

1429.562

1919.554

2380.239

Total borrowings

2072.393

2570.278

2748.275

Debt/Equity ratio

3.213

3.558

2.608

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

3584.267

5148.293

7202.436

 

 

43.636

39.899

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

3584.267

5148.293

7202.436

Profit

(612.437)

77.316

331.335

 

(17.09%)

1.50%

4.60%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

Current maturities of long-term debt

471.005

315.237

108.679

 

 

 

 

 

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

No

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 LOAN

Rs. In Millions

Particular

As on

31.03.2014

As on

31.03.2013

Short Term Borrowings

 

 

From Banks

 

 

Packing Credit

686.925

249.896

Buyers Credit

374.429

159.133

Other loans

 

 

Commercial Paper (Maximum Balance outstanding during the year Rs.1200.000 Millions

250.000

250.000

Inter Corporate Deposit

0.000

150.000

Total

1311.354

809.029

 

 

 

 

 

OPERATIONS

 

The Company’s Revenue from Operations (Net) increased by 40%, from Rs. 5148.200 Millions in 2012-13 to Rs.7202.400 Millions in 2013-14. Profit before Exceptional Items and Taxation increased from Rs. 95.365 Millions in 2012-13 to Rs. 350.552 Millions in 2013-14.

 

For the year ended 31st March, 2014, the Operating Profit i.e. EBIDTA was Rs.784.098 Millions, as against Rs.508.028 Millions in the preceding year 2012-13. Profit after Tax was Rs. 331.335 Millions for the year 2013-14, compared to Rs. 77.316 Millions for Financial Year 2012-13.

 

 

AMALGAMATION WITH COROMANDEL INTERNATIONAL LIMITED

 

The Directors have, at their meeting held on 24th January, 2014, approved a Scheme of Amalgamation for merger of the Company with its holding company, Coromandel International Limited. Company has received NOC from the Stock Exchanges as required under the Listing Agreement and is in process of obtaining the approval of the shareholders, creditors, Hon’ble High Court of Gujarat, and such other authorities, as may be required. The Scheme will be with effect from 1st April 2014 but would become operative after receipt of all necessary approvals.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

BUSINESS ENVIRONMENT

 

The Agro chemicals industry has a strong linkage to Agriculture, which itself is heavily dependent on vagaries of monsoon. Various other critical factors impacting its robust growth include availability of credit, irrigation facilities and other needed agri inputs. Occurence of pests and plant diseases are perennial risk factors where the agro chemicals industry comes into play.

 

Global population dynamics especially in countries with limited arable land, and those with poor irrigation infrastructure find themselves confronting the challenge of feeding their millions of populace and ensuring food security year in and year out. Improving farm productivity across all agri and horticultural crops continually is the big challenge and taking timely and appropriate recourse to agro chemical applications is now universally accepted as a sine quo non.

 

For the Agro chemical Industry, the potential for robust and sustained growth against the backdrop of demand – production gap in agriculture sector year in and year out is loud and clear. The challenge for the industry lies in its capability to come up with safe and efficient products and applications for pest control and for eradication of plant diseases leading to maximizing yields from the available land under cultivation. For the Industry to grow exponentially, the challenge lies in developing new products through intensive R & D to innovate and come up from time to time with new products that are environmentally safe and efficient over the long term and are proven cost effective as well.

 

GLOBAL AGRO-CHEMICAL INDUSTRY OVERVIEW

 

Latin America, Europe and Asia account for more than 75% of the global market size and these regions taken together have been reporting consistent year on year growth. In 2013, the Industry reported a growth of 11.2% in nominal terms and 9% in real terms and has reached a size of $ 53 billion. Latin America emerged as the largest market in terms of size in 2013 with a high growth of 26.9% over 2012. Europe recorded a growth of about 9.5% and Asia grew by a marginal 1.3% over 2012. The growth is largely facilitated by strong commodity prices and it is expected that the Industry will fare strongly over the next few years at an average rate of 5% annually reaching a size of $ 60 billion by 2017.

 

Indian agro-chemical Industry has been growing at the rate of about 8 to 9% over the past seven years and the Industry size is estimated at $ 3.8 billion with exports accounting for about 50%.

 

The Industry growth in recent years is largely driven on the back of increasing volumes in agricultural production and higher commodity prices. It is estimated that the Industry would continue to grow by about 9% annually in domestic brand business and at about 15% in exports from India reaching a size of $ 7 billion by 2017.

 

COMPANY PERFORMANCE

 

During the year 2013-14, the Company continued its focus on improving performance across all aspects of the business operations viz., enhance manufacturing capability and ensuring consistency in production, improving compliance to environmental regulations, improvement in yields and reduction in conversion costs, scaling up business in critical high value markets, leverage international product registrations and enhancing portfolio of product registrations for increasing market access in critical markets enabling profitable growth.

 

The measures implemented by the Company in recent years and continued in 2013-14 have led to significant progress in various critical areas of performance:

 

·         Manufacturing capacity of key molecules enhanced with improved efficiencies

·         Consistency in Propineb product quality established. The product gained good acceptance globally

·         Plant reliability and safety improved with reconstruction of certain plants in Sarigam to ensure higher capacity and volumes in the coming years

·         Leveraged existing portfolio of product registrations to scale up volumes across geographies

·         Increased volumes and presence in Central America through subsidiary in Mexico

·         Enhanced portfolio of product registrations

 

These initiatives contributed to the Sales Turnover increasing by 40% over 2012-13. The share of exports increased from 59% in 2012-13 to 62% in 2013-14 with greater focus on exports.

 

OUTLOOK

 

The world’s population is expected to reach 9 billion by 2050. As population increases, natural resources will become scarcer, mainly due to insufficient arable land reserves, increasing urbanization and progressive climate change. The Agro-chemical Industry in expected to maintain its growth trend. With growing income levels and reduced labour availability, the industry growth will be led by fungicides and herbicides.

 

Despite relative competitive advantage of China, Indian industry continues to improve on its performance in Agro-chemicals largely owing to its superiority in select molecules and access to international markets through product registrations and marketing capabilities. This is likely to be maintained and the gap is expected to narrow down in the coming year(s) in view of the challenge from China getting whittled down as their costs are going upwards due to stricter environmental compliance requirements in China and their currency, Yuan, appreciating in recent times.

 

With an upsurge in confidence from the significantly improved performance in the year 2013-14, the Company is optimistic about further improving on its performance with ongoing and planned initiatives ahead.

 

 

AMALGAMATION

 

The Board of Directors of the Company and Coromandel International Limited (Coromandel), its holding Company, in their meetings held on 24th January 2014, have approved a Scheme of Amalgamation under Sections 391 and 394 of the Companies Act, 1956 ('the scheme') for amalgamation of the Company with Coromandel subject to the approval of the stock exchanges, the respective shareholders and the creditors, the concerned High courts and other regulations. The Company has received the 'NOC' from the stock exchanges and is in the process of filing application before the High Court. As per the Scheme, the Appointed/Transfer date of amalgamation is 1st April 2014 and on the Record Date to be fixed after receipt of all approvals, the public shareholders of Sabero shall be issued 5 equity shares of Rs.1 each in Coromandel for every 8 equity shares of Rs.10 each held in the Company.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10479802

06/02/2014

2,909,500,000.00

3I INFOTECH TRUSTEESHIP SERVICES LIMITED

3RD TO 6TH FLOOR, INTERNATIONAL INFOTECH PARK,, TOWER NO.5, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI, MAHARASHTRA - 400703, INDIA

B97287163

2

10446467

12/08/2013

1,609,500,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, N. G. N. VAIDYA MARG, HORNIMAN  CIRCLE, MUMBAI, MAHARASHTRA - 400001, INDIA

B83740035

3

10355944

27/04/2012

300,000,000.00

AXIS BANK LIMITED

FORT BR., UNIVERSAL INSU. BLDG.,, SIR P.M ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA

B39685961

4

10355037

22/03/2012

350,000,000.00

THE RATNAKAR BANK LIMITED

SHAHUPURI,KOLHAPUR,, KOLHAPUR, MAHARASHTRA - 416001, INDIA

B39424916

5

10333799

31/03/2012 *

650,000,000.00

AXIS BANK LIMITED

FORT BR., UNIVERSAL INSU. BLDG.,, SIR P.M ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA

B37970415

6

10333233

05/12/2011

540,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, N. G. N. VAIDYA MARG, HORNIMAN  CIRCLE, MUMBAI, MAHARASHTRA - 400001, INDIA

B31103369

7

10259770

18/07/2011 *

100,000,000.00

EXPORT IMPORT BANK OF INDIA

FLOOR 21, CENTRE ONE BUILDING,, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B18671818

8

10259753

18/07/2011 *

200,000,000.00

EXPORT IMPORT BANK OF INDIA

FLOOR 21, CENTRE ONE BUILDING,, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B18466367

9

10234764

18/07/2011 *

414,000,000.00

AXIS BANK LIMITED

JEEVAN PRAKASH BUILDING, SIR P. M. ROAD,, FORT, MUMBAI, MAHARASHTRA - 400002, INDIA

B18474981

10

90103548

28/10/2003

30,000,000.00

UNION BANK

INDUSTRIAL FINANCE BRANCH, 239 VIDHAN BHAVAN MARG  NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

11

90103503

29/09/2000

10,000,000.00

UNION BANK

INDUSTRIAL FINANCE BRANCH, 239 VIDHAN BHAVAN MARG  NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

12

90102762

26/11/2012 *

1,341,000,000.00

UNION BANK OF INDIA (LEAD BANK)

UNION BANK BHAVAN, 239, VIDHAN BHAVAN MARG,, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA

B64158033

13

80067169

15/06/1998 *

40,000,000.00

UNION BANK OF INDIA

239,VIDHAN BHAVAN, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

14

80067167

16/06/1997

2,500,000.00

UNION BANK OF INDIA

INDL. FIN. BR. UNION BANK BHAVAN,1ST FLOOR, 239,VIDH 
AN BHAVAN MARG, NARIMAN MARG, MUMBAI, MAHARASHTRA -  400021, INDIA

-

15

80066217

27/08/1996

166,000,000.00

UNION BANK OF INDIA

239,VIDHAN BHAWAN, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

16

90103026

26/11/2012 *

1,341,000,000.00

UNION BANK OF INDIA (LEAD BANK)

UNION BANK BHAVAN, 239, VIDHAN BHAVAN MARG,, NARI 
MAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA

B64157894

17

80067166

06/07/1995

6,500,000.00

UNION BANK OF INDIA

INDL. FIN. BR. UNION BANK BHAVAN,1ST FLOOR, 239,VIDH 
AN BHAVAN MARG, NARIMAN MARG, MUMBAI, MAHARASHTRA -  400021, INDIA

-

18

80067163

31/08/1994

2,000,000.00

UNION BANK OF INDIA

239,VIDHAN BHAVAN,1ST FLOOR, NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA

-

19

80067162

20/11/1998 *

10,000,000.00

UNION BANK OF INDIA

INDUSTRIAL FINANCE BR.239,VIDHAN BHAVAN MARG, NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA

-

20

80067164

15/03/1996 *

45,000,000.00

UNION BANK OF INDIA

IND.FINANCE BR.1ST FLOOR, 239,VIDHAN BHAVAN MARG, BOMBAY, MAHARASHTRA - 400021, INDIA

-

21

80067165

20/11/1998 *

60,000,000.00

UNION BANK OF INDIA

INDU.FINA.BR.UNION BANK BHAVAN 1ST FLOOR, 239,VIDHAN BHAVAN MARG, NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA

-

22

80067161

23/11/1993

10,000,000.00

UNION BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, 239,VIDHAN BHAVAN MARG, NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA

-

 

* Date of charge modification

 

 

FIXED ASSETS

 

·         Freehold Land

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

·         Computer

·         Office Equipment

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.60.14

UK Pound

1

Rs.102.22

Euro

1

Rs.81.02

 

 

INFORMATION DETAILS

 

Information Gathered by :

HET

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

54

 

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

 

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.