MIRA INFORM REPORT

 

 

Report Date :

07.06.2014

 

IDENTIFICATION DETAILS

 

Name :

DEEPAK NITRITE LIMITED

 

 

Registered Office :

9/10, Kunj Society, Alkapuri, Vadodara – 390007, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

06.06.1970

 

 

Com. Reg. No.:

04-001735

 

 

Capital Investment / Paid-up Capital :

Rs. 104.538 millions

 

 

CIN No.:

[Company Identification No.]

L24110GJ1970PLC001735

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNED03452B

BRDD00655E

 

 

PAN No.:

[Permanent Account No.]

AAACD7468A

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Exporter of Chemicals.

 

 

No. of Employees :

1000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (60)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 11000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established company having fine track record.

 

The rating reflects long operating track record in the chemical industry supported by its diversified product mix and sound financial risk profile.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal 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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

 

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

 

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

 

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

 

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

 

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

 

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

 

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

 

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

 

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

ICRA

Rating

Term Loan: A+

Rating Explanation

Adequate degree of safety and low credit risk.

Date

July 2013

 

Rating Agency Name

ICRA

Rating

Non fund based limits: A1+

Rating Explanation

Very strong degree of safety lowest credit risk.

Date

July 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.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Alok Kankani

Designation :

Finance Department

Contact No.:

91-265-2765200

Date :

06.06.2014

 

 

LOCATIONS

 

Registered Office :

9/10, Kunj Society, Alkapuri, Vadodara – 390007, Gujarat, India

Tel. No.:

91-265-2351013/ 2334481-82

Fax No.:

91-265-2330994

E-Mail :

investor@deepaknitrite.com

srvaidya@deepaknitrite.com

arkankuni@deepaknitrite.com

Website :

http://www.deepaknitrite.com

 

 

Corporate Office / Global Head Quarters :

Aaditya-I, National Highway No. 8, Chhani Road, Vadodara - 390024, Gujarat, India

Tel. No.:

91-265-276 5200

Fax No.:

91-265-234 0506

 

 

Factory 1 :

Nitrite and Nitroaromatics Division

4-12, GIDC Chemical Complex, Nandesari - Dist., Vadodara - 391340 Gujarat, India

Tel. No.:

91-265-2840639 / 47

 

 

Factory 2 :

APL Division

Plot Nos. 1, 2, 26 & 27, MIDC Dhatav, Roha, Dist. Raigad - 402116

Tel. No.:

91-2194-263550 / 263750 / 264777 / 78 / 79

 

 

Factory 3 :

Taloja Chemical Division

Plot No. K-10, MIDC, Taloja, A.V. District Raigad-410208, Maharashtra, India

Tel. No.:

91-22-27411125 / 26 / 27

 

 

Factory 4 :

Hyderabad Specialties Division

Plot Nos. 90-F/70-A and B, Phase II, Industrial Development Area, Jeedimetla, Taluka Quthbullapur Madal, District Ranga Reddy, Hyderabad – 500055, Andhra Pradesh, India

Tel. No.:

91-40-23097401

 

 

Factory 5 :

Project site under development

Plot No. 12/B GIDC, Dahej, Dist. Bharuch- 392130, Gujarat, India

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. C. K. Mehta

Designation :

Chairman

Other Directorship:

  • Deepak Fertilizers and Petrochemicals Corporation Limited
  • Deepak Novochem Technologies Limited
  • Blueshell Investment Private Limited
  • Sofotel Infra Private Limited
  • The Lakaki Works Private Limited
  • Storewell Credits and Capital Private Limited
  • Deepak Asset Reconstruction Private Limited
  • Deepak Medical Foundation
  • Kawat Development Corporation
  • Deepak Research and Development Foundation

 

 

Name :

Mr. D. C. Mehta

Designation :

Vice Chairman and Managing Director

 

 

Name :

Mr. A. C. Mehta

Designation :

Managing Director

 

 

Name :

Mr. M. R. B. Punja

Designation :

Director

 

 

Name :

Mr. Nimesh Kampani

Designation :

Director

 

 

Name :

Mr. Sudhin Choksey

Designation :

Director

 

 

Name :

Dr. Richard H. Rupp

Designation :

Director

 

 

Name :

Mr. Sudhir Mankad

Designation :

Director

Qualification :

Masters Degree in History

Other Directorship :
  • Gujarat International Finance Tec-City Co. Limited
  • Bhavnagar Energy Company Limited
  • IL&FS Education Investment and Technology Services Limited
  • Gruh Finance Limited
  • Shri Dinesh Mills Limited
  • Navin Fluorine International Limited
  • IL&FS Skills Development Corporation Limited
  • Gujarat Gas Company Limited

 

 

Name :

Mr. S. K. Anand

Designation :

Additional Director

Qualification :
  • Bachelor of Engineering (Chemical)
  • Petrochemical Course
  • advance course on Management

Other Directorship :
  • Sunrise Private Limited
  • Paramount Environment Private Limited
  • SARA Consultants Private Limited

 

 

Name :

Dr. Swaminathan Sivaram

Designation :

Additional Director*

 

 

Name :

Mr. Umesh Asaikar

Designation :

Executive Director*

 

Note: * Appointed with effect from May 9, 2013

 

KEY EXECUTIVES

 

 

Name :

Mr. Sanjay Upadhyay

Designation :

Sr. Vice President (Finance) and Company Secretary

 

 

Audit Committee :

Name :

Mr. M. R. B. Punja

Designation :

Chairman

 

 

Name :

Mr. A. K. Dasgupta

Designation :

Member

 

 

Name :

Mr. Sudhin Choksey

Designation :

Member

 

 

Name :

Mr. Sudhir Mankad -

Designation :

Member

 

 

Investors Grievance Committee :

 

 

Name :

Mr. A. K. Dasgupta

Designation :

Chairman

 

 

Name :

Mr. D. C. Mehta

Designation :

Member

 

 

Name :

Mr. A. C. Mehta

Designation :

Member

 

 

Remuneration Committee :

 

 

Name :

Mr. A. K. Dasgupta

Designation :

Chairman

 

 

Name :

Mr. S. K. Anand

Designation :

Member

 

 

Name :

Mr. Sudhir Mankad

Designation :

Member

 

 

Name :

Mr. Alok Kankani

Designation :

Finance Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2014

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

2190107

20.95

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

3722800

35.61

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

5912907

56.56

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

 

 

Total shareholding of Promoter and Promoter Group (A)

5912907

56.56

(B) Public Shareholding

 

 

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

 

 

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

1800

0.02

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

335

0.00

http://www.bseindia.com/include/images/clear.gifInsurance Companies

115000

1.10

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

650000

6.22

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

767135

7.34

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

 

 

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

1125551

10.77

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

2081794

19.91

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

503416

4.82

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

63016

0.60

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

62971

0.60

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

45

0.00

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

3773777

36.10

Total Public shareholding (B)

4540912

43.44

Total (A)+(B)

10453819

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)

10453819

0.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Chemicals.

 

 

Products :

Products Description

Item Code No.

 

 

 
Sodium Nitrite
283410 01
Para Nitrochlorobenzene
290490 05
Resorcinol
290721 00
Para Cumidine
290270

 

 

Exports :

 

Products :

Chemicals

Countries :
  • USA
  • UK
  • Middle East
  • Switzerland
  • Europe
  • Far East
  • Singapore
  • Asian Country etc.

 

 

Imports :

 

Products :

Raw Material

Countries :
  • Taiwan
  • China
  • USA
  • Korea
  • Switzerland

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production

Qty.

MTS.

Inorganic Salts

MT

44350

48459

Dinitrosopentamethylene Tetramine

MT

1800

551

Dye Intermediates

MT

660

--

Nitro Aromatics

MT

38750

36072

- By Products

MT

--

29101

Aromatics Amines

MT

18000

11447

Agro Chemical Intermediates

MT

9900

9384

Colour Intermediates

MT

6600

7526

- By Products

MT

--

8756

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :
  • State Bank of India
  • Bank of Baroda
  • Dena Bank
  • ICICI Bank Limited
  • AXIS Bank Limited
  • ING Vysya Bank
  • Standard Chartered Bank
  • DBS Bank Limited
  • Hongkong and Shanghai Banking Corporation

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Term Loans

 

 

Foreign Currency Loan from Banks & Financial Institutions

49.071

96.317

External Commercial Borrowings

2288.430

2022.580

Short-term borrowings

 

 

Cash Credit from Banks

451.462

127.829

Total

2788.963

2246.726

NOTE:

 

LONG-TERM BORROWINGS

 

Term Loans

 

The Term Loan is obtained from Bank of Baroda while External Commercial Borrowings are obtained from (a) Standard Chartered Bank Rs.652.672 Millions (Rs.606.774 Millions) (b) HSBC Bank (Mauritius) Limited Rs.815.840 Millions ( Rs.505.646 Millions) and (c) DBS Bank Limited Rs.979.007 Millions ( Rs.910.161 Millions). These are secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company.

 

Repayment Schedule

 

a) Rate of Interest of Term Loan and External Commercial Borrowings are based on LIBOR plus agreed spread.

 

b) Term Loan from Bank of Baroda is repayable in equal half-yearly instalments of 24.500 Millions with the last instalment payable on

March 29, 2015.

 

c) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis starting from August 23, 2013 with a step up repayment schedule with last instalment payable on February 23, 2018.

 

d) External Commercial Borrowing from HSBC Bank (Mauritius) Limited is repayable on quarterly basis starting from March 30, 2014, with a step up repayment schedule with last instalment payable on March 29, 2018.

 

e) External Commercial Borrowing from DBS Bank Limited is repayable on quarterly basis starting from February 3, 2014, with a step up repayment schedule with last instalment payable on November 1, 2018.

 

f) Deferred sales tax loan is interest free and payable in 8 yearly instalments starting from April 2008 and last instalment payable before March, 2016.

 

The installments payable are as under:

 

Years

Rs. In Millions

2013-2014

4.306

2014-2015

2.700

2015-2016

1.019

 

SHORT-TERM BORROWINGS

 

Cash Credit from Banks are secured by a prior charge over Company's stocks of Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and by second charge on all Fixed Assets by way of hypothecation and mortgage.

 

Cash Credit is repayable on demand and carries interest@base rate plus range spread of 2.50% to 4.50% p.a

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B.K. Khare and Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Cost Auditors :

 

Name :

B. M. Sharma and Company

Cost Accountants

Address :

Pune, Maharashtra, India

 

 

Internal Auditors :

 

Name :

Deloitte Haskins and Sells

Address :

Pune, Maharashtra, India

 

 

Associates :
  • Blue Shell Investment Private Limited
  • Check Point Credits and Capital Private Limited
  • Crossover Advisors Private Limited
  • Crossover Trustees Private Limited
  • Deepak Asset Reconstruction Private Limited
  • Deepak Cleantech Limited
  • Deepak Fertilisers and Petrochemicals Corporation Limited
  • Deepak International Limited
  • Deepak Medical Foundation
  • Deepak Research and Development Foundation
  • Deepak Novochem Technologies Limited
  • Forex Leafin Private Limited
  • Grey Point Investments Private Limited
  • Hardik Leafin Private Limited
  • Kawant Development Corporation
  • Nucore Capital Management Private Limited
  • Pranawa Leafin Private Limited
  • Prolific Credits and Capital Private Limited
  • Skyrose Finvest Private Limited
  • Sofotel Software Services Private Limited
  • Stepup Credits and Capital Private Limited
  • Stiffen Credits and Capital Private Limited
  • Stigma Credits and Capital Private Limited
  • Storewell Credits and Capital Private Limited
  • Sundown Finvest Private Limited
  • Superpose Credits and Capital Private Limited
  • The Lakaki Works Private Limited 
  • Yerowada Investment Limited.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

30000000

Equity Shares

Rs.10/- each

Rs. 300.000 Millions

2000000

Preference Shares

Rs.100/- each

Rs. 200.000 Millions

 

 

 

 

 

Total

 

Rs. 500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10453819 #

Equity Shares

Rs.10/- each

Rs. 104.538 Millions

 

 

 

 

 

NOTE:

 

# Excludes 9860 (9860) Equity Shares of 10/- each, have been kept in abeyance.

 

(a) Shares: Terms/Rights:

 

i) Authorised Shares have been classified into Equity and Preference Shares.

 

ii) The Company has issued Equity Shares having par value of 10/- per Share. Each holder of Equity Share is entitled to one vote per Share. The Company declares and pays Dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders at the ensuing Annual General Meeting.

 

iii) During the year ended March 31, 2013, the amount of per Share Dividend recognised as distribution to Equity Shareholders is 8/- ( 6/-).

 

iv) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. No Preferential amounts exist as on Balance Sheet date. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

 

(b) Reconciliation of the Shares outstanding and the amount of Share Capital at the begining and at the end of the reporting period:

 

Company has not issued any Equity Shares or Preference Shares during the year.

 

Equity Shares

 

Equity Shares

31.03.2013

 

No.

Rs. In millions

At the beginning of the period

10453819

104.538

Issued during the period – Bonus issue

--

--

Issued during the period – ESOP

--

--

Outstanding at the end of the period

10453819

104.538

 

9860 (9860) Equity Shares of 10/- each, have been kept in abeyance as per pending legal proceedings.

 

(c) Details of Shareholders holding more than 5% Equity shares in the Company:

 

Name of the Shareholder

31.03.2013

 

No. in millions

% holding

Equity Shares of Rs. 10/- each fully paid

 

 

Shri Deepak Chimanlal Mehta

1.727

16.52

Stiffen Credits & Capital Private Limited

0.838

8.02

Checkpoint Credits & Capital Private Limited

0.721

6.89

Stepup Credits & Capital Private Limited

0.692

6.62

Stigma Credits & Capital Private Limited

0.618

5.91

Fidelity Puritan Trust - Fidelity Low Priced

0.653

5.98

 

(d) 14,90,586 (14,90,586) Equity Shares of 10/- each fully paid up at a premium of 90/- per Share were alloted on Conversion of Detachable Warrants issued with Right Shares.

 

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

104.538

104.538

104.538

(b) Reserves & Surplus

2701.436

2423.237

2274.556

(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)

2805.974

2527.775

2379.094

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

2393.371

2214.761

320.132

(b) Deferred tax liabilities (Net)

21.762

20.212

17.503

(c) Other long term liabilities

36.185

31.174

31.189

(d) long-term provisions

233.549

168.029

160.759

Total Non-current Liabilities (3)

2684.867

2434.176

529.583

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

707.393

249.736

136.235

(b) Trade payables

2042.052

1396.696

647.054

(c) Other current liabilities

542.097

328.034

377.852

(d) Short-term provisions

104.447

80.283

82.310

Total Current Liabilities (4)

3395.989

2054.749

1243.451

 

 

 

 

TOTAL

8886.830

7016.700

4152.128

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3242.812

1799.339

1616.259

(ii) Intangible Assets

11.378

13.869

12.327

(iii) Capital work-in-progress

1175.520

1016.700

70.858

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

13.292

13.292

13.292

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

220.605

458.544

232.740

(e) Other Non-current assets

0.000

2.670

0.000

Total Non-Current Assets

4663.607

3304.414

1945.476

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1043.584

854.363

590.725

(c) Trade receivables

2422.517

1574.875

1279.838

(d) Cash and cash equivalents

95.005

935.377

58.745

(e) Short-term loans and advances

634.342

336.735

274.115

(f) Other current assets

27.775

10.936

3.229

Total Current Assets

4223.223

3712.286

2206.652

 

 

 

 

TOTAL

8886.830

7016.700

4152.128

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

10194.000

7898.919

6722.440

 

 

Other Income

107.004

28.413

51.720

 

 

TOTAL                                     (A)

10301.004

7927.332

6774.160

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Raw Materials and Components Consumed

6668.373

5083.323

3902.569

 

 

Purchase of Traded Goods

467.287

434.907

475.068

 

 

Employee Benefits Expenses

618.565

505.755

459.166

 

 

Power & Fuel Expenses

904.471

768.841

651.630

 

 

Other Expenses

803.041

616.960

551.734

 

 

Impairment Provision / (Reversal)

0.000

0.000

15.664

 

 

(Increase)/ Decrease in Inventories of Finished Goods, Work-in-Progress and Traded Goods

10.493

(87.416)

96.005

 

 

TOTAL                                     (B)

9472.230

7322.370

6151.836

 

 

 

 

 

Less

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

828.774

604.962

622.324

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

113.608

111.244

71.418

 

 

 

 

 

 

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

715.166

493.718

550.906

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

189.386

177.858

181.338

 

 

 

 

 

 

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

525.780

315.860

369.568

 

 

 

 

 

Less

TAX                                                                  (H)

147.545

85.032

111.597

 

 

 

 

 

 

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

378.235

230.828

257.971

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1197.390

1089.529

954.522

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Dividend - Proposed

83.709

62.782

62.782

 

 

Corporate Dividend Tax

14.226

10.185

10.185

 

 

Transfer to General Reserve

50.000

50.000

50.000

 

BALANCE CARRIED TO THE B/S

1427.690

1197.390

1089.529

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value of Exports

4434.211

3463.852

2763.121

 

TOTAL EARNINGS

4434.211

3463.852

2763.121

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2243.855

1393.715

694.292

 

 

Components, Spares Part and Stores

12.135

1.644

0.276

 

 

Capital Goods

5.895

6.780

1.559

 

TOTAL IMPORTS

2261.885

1402.139

696.127

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

36.15

22.06

24.65

 

Expected Sales (2013-2014) : Rs.13000.000 Millions

 

The above information has been parted by Mr. Alok Kankani (Finance Department)

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2013

30.09.2013

31.12.2013

 

1st Quarter

2nd Quarter

3rd Quarter

Audited / UnAudited

UnAudited

UnAudited

UnAudited

Net Sales

2617.200

3145.800

3384.400

Total Expenditure

2443.800

2894.000

3074.100

PBIDT (Excl OI)

173.400

251.800

310.300

Other Income

3.600

4.300

2.700

Operating Profit

177.000

256.100

313.100

Interest

55.200

74.700

70.300

Exceptional Items

0.000

0.000

0.000

PBDT

121.800

181.400

242.800

Depreciation

67.500

74.300

75.100

Profit Before Tax

54.400

107.200

167.700

Tax

17.900

32.400

54.200

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

36.400

74.800

113.500

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

36.400

74.800

113.500

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
3.67

2.91

3.81

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.16

4.00

5.46

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
6.83

5.28

9.08

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.19

0.12

0.16

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.11

0.97

0.19

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.24

1.81

1.77

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

104.538

104.538

104.538

Reserves & Surplus

2,274.556

2,423.237

2,701.436

Net worth

2,379.094

2,527.775

2,805.974

 

 

 

 

long-term borrowings

320.132

2,214.761

2,393.371

Short term borrowings

136.235

249.736

707.393

Total borrowings

456.367

2,464.497

3,100.764

Debt/Equity ratio

0.192

0.975

1.105

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

6722.440

7898.919

10194.000

 

 

17.501

29.056

 

 

NET PROFIT MARGIN

 

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

6722.440

7898.919

10194.000

Profit

257.971

230.828

378.235

 

3.84%

2.92%

3.71%

 

 

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

Yes

10]

Designation of contact person

Yes

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

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

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

 

LITIGATION DETAILS

 

HIGH COURT OF GUJARAT

TAX APPEAL NO. 1963 OF 2010

 

Status : PENDING

( Converted from : ST/1872/2010 )

CCIN No : 001092201001963

 

Last Listing Date:

14/11/2011

Coram

·         HONOURABLE MR.JUSTICE AKIL KURESHI

·         HONOURABLE MS JUSTICE SONIA GOKANI

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX - I

MRS MAUNA M BHATT for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

S.NO.

Name of the Respondant

Advocate On Record

 

1

DEEPAK NITRITE LIMITED

MR MANISH J SHAH for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

 

 

 

Presented On

: 24/06/2010

Registered On

: 24/06/2010

 

Bench Category

: DIVISION BENCH

District

: VADODARA

 

Case Originated From

: THROUGH ADVOCATE

Listed

: 4 times

 

StageName

: FOR REGULAR ADMISSION (SPL.)

 

 

Classification
  • DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA

Act
  • INCOME-TAX ACT, 1961

 

Office Details

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

24/06/2010

MEMO OF APPEAL/PETITION/SUIT

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

20

MRS MAUNA M BHATT:1

2

15/08/2010

VAKALATNAMA

MR MANISH J SHAH ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

-

MR MANISH J SHAH:1

3

15/08/2010

VAKALATNAMA

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

-

MRS MAUNA M BHATT:1

4

23/08/2010

CERTIFIED COPY

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

6

MRS MAUNA M BHATT:1

5

14/12/2011

VAKALATNAMA

MR MANISH J SHAH ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

5

MR MANISH J SHAH:1

Court Proceedings

 

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

26/07/2010

8

-

FOR OFFICE OBJECTION

NEXT DATE

·         ADDITIONAL REGISTRAR ( JUDICIAL)

2

14/11/2011

8

-

FOR REGULAR ADMISSION (SPL.)

FIXED RULE / ADMIT

·         HONOURABLE MR.JUSTICE AKIL KURESHI

·         HONOURABLE MS JUSTICE SONIA GOKANI

 

Available Orders

 

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

1

TAX APPEAL/1963/2010

·         HONOURABLE MR.JUSTICE AKIL KURESHI

·         HONOURABLE MS JUSTICE SONIA GOKANI

14/11/2011

N

ORDER

-

Y

Certified Copy

 

 

S. No.

ApplicantName

ApplicationType

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MRS MAUNA M BHATT

ORDINARY

15/11/2011

O/40366/2011

14/11/2011

17/11/2011

18/11/2011

Delivered

ORDER

 

 

THE YEAR INRETROSPECT

 

The financial year 2012-13 proved to be a benchmark year for the Company's performance. The Company has achieved a significant milestone this year by crossing the Rs.10000.000 Millions turnover mark. Inspite of headstrong global and domestic challenges, the Company has outperformed competition and, revenues and profits have touched new highs. Turnover for FY 2012-13 stood at Rs.10040.900 Millions as compared to Rs.7769.100 Millions in FY 2011-12. These were driven by increased volumes as a result of de-bottlenecking activities and progressively higher realisations. Exports flourished and products like Fuel Additives were also major contributors to the top line.

Exports to key markets in Europe continued to remain strong and the Company enjoyed a favourable traction from its expanding presence in the US as well. The export turnover increased by 27.71% over and in absolute terms stood at Rs.4475.900 Millions in over Rs.3504.700 Millions in FY 2011-12.

 

Profit before Interest, Depreciation and Tax for the year was Rs.812.200 Millions as compared to Rs.588.000 Millions in the previous year. Profit After Tax was Rs.378.200 Millions as compared to Rs.230.800 Millions in FY 2011-12. Earnings per Share was Rs.361.500 Millions as compared to Rs.220.600 Millions per Share in FY 2011-12.

 

On the global front, the US market is showing signs of a more stable recovery while Europe seems to be facing continuing challenges. The Middle East has recovered steadily from the political unrest and China and India, though still slowly recovering, remain the key engines for global growth. The Company has shown resilience even though the global operating environment over the last few years has been demanding. Growth in exports to economies that are in economic turmoil is a testament to strong customer relationships and a growth-driven business model that the Company follows.

 

For the next financial year the key focus will be on expansion plans. The greenfield expansion at Dahej, will make the Company, the only player to completely backward integrate its processes and manufacture OBA (Optical Brightening Agents) from Toluene. On the other hand, the brownfield expansion at Nandesari will help the Company make a completely new foray in renewable energy which will aid in the manufacture of Solar Salts. Since many Solar Projects in India as well as overseas are temporarily delayed there is a need to mitigate the short-term risk of dependence on Solar Energy sector. With this in view, the Company has initiated Research and

Development efforts to develop salts for other applications.

 

The Company has also taken measures to address currency risk through prudent hedging policies as exports play a significant role.

 

GREENFIELD EXPANSION ATDAHEJ

 

The Company's new state-of-the-art greenfield plant at Dahej (District Bharuch, Gujarat) will be manufacturing OBA (Optical Brightening Agents), a Performance Chemical. This will make the Company the only fully-integrated player in the world. After the successful completion of production trial runs at its OBA Plant, the Company commenced its first stream of commercial production of OBA on March 15, 2013 involving a capex cost of around 1400.000 crores. The other part of the facility is well on track and is expected to be operational by the beginning of the second quarter of FY 2013-14.

 

The Company would be offering OBA at the door-step not only from the world’s largest Brightener Plant but it would be offering equally matching logistic solutions and after-sale technical services.

 

BROWNFIELD EXPANSION AT NANDESARI

 

The Company, through its brownfield expansion at Nandesari (Gujarat), envisaged a dual purpose of expanding the production capacity and also foraying into a new business segment of Solar Salts.

 

The Salt Project at Nandesari was set up with the objectives of meeting the emerging demand for solar salt application and for catering to the high-end Sodium Nitrite market in the US. Since many Solar Projects in India as well as overseas are temporarily delayed there is need to mitigate the short-term risk of dependence on Solar Energy sector. With this in view, the Company has initiated Research and Development efforts to develop salts for other applications. The project is expected to be operational by the first quarter of FY 2013-14.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

ECONOMIC OUTLOOK

 

The fiscal year 2012-13 has been difficult for countries all across the globe. While the US is showing signs of improvement, Europe is still the epicenter of turmoil and is still affected by the financial crisis. Although stimulus packages have been provided to economies in Europe, they are yet to fully stabilise. Growth continues to be led by countries like India and China, which although not growing as quickly as earlier, remain the fastest growing economies on a relative basis. The Middle East is recovering from political tensions that were witnessed last year.

Japan is gradually recovering and the resultant impact is that the Bank of Japan joined the Central Banks of the US and Europe in introducing stimulus packages to spur growth.

 

Political and regulatory uncertainty shook the sentiment of foreign investors in India. This exacerbated the slowdown in investment activity. A drop in general business spending, declining tax collections and sustenance of populist measures led to a decline in fiscal performance. This was aggravated by increasing imports of oil and gold. All of a sudden the Indian economy was at a precipice with the threat of a sovereign rating downgrade looming.

 

The Government was forced into action and it responded by fast-tracking reforms on FDI in sectors such as aviation, broadcasting and multi-brand retail. This was followed by an effort to disinvest stakes in select PSUs. The oil import bill was tackled with reduction of subsidies on diesel, kerosene and LPG. Additional import duty on gold and relaxation of limits for debt investment by FIIs helped ease pressure on currency rates. The Government has followed it up with active discussions with rating agencies and the RBI.

 

They are witnessing gradual improvements in the operating environment with these measures. Macro pressures have eased as oil and gold prices have declined and inflation is showing signs of moderation. It is believed that the worst is over and that the economy has bottomed out.

 

There are still challenges that India will have to overcome as the global environment remains weak and challenges in various regions will still take some time to ease as the issues are deeper than originally envisaged and an uptick will most likely be delayed.

 

However, the Indian economy is resilient and although not completely out of the woods, they expect to see a gradual improvement in the economy in the current fiscal.

 

INDUSTRY STRUCTURE AND RECENTDEVELOPMENTS

 

The global chemical industry is one of the largest industries worldwide. It was estimated at $3.4 trillion in 2010. The Indian chemical industry had a size of $108 billion in 2010 and accounts for 3% of the global chemical industry (source: Indian Chemical Industry – Five Year Plan).

 

The Indian chemical industry is a key constituent of the Indian Industry and contributes, as estimated, 7% of the GDP. In the 12th five year plan, growth of the chemical industry is estimated between 11-15% to reach a size of $224-290 billion by 2017. India is the 3rd largest chemical market in Asia after China and Japan (source: Indian Chemical Industry – Five Year Plan).

 

The plan discusses Organic, Inorganic and Speciality Chemicals segments in detail. The Speciality Chemicals segment grew 11% during the 11th five year plan and is currently valued at $18 billion. It is estimated to grow at 13-14% up to $38 billion by 2017. Basic Organic chemicals are expected to grow at 12% and Inorganic chemicals are expected to grow at about 8%. The Company caters to all these segments and is expected to benefit from the growth of end user markets in these segments.

 

To strengthen Research and Development, the Indian Government is now undertaking initiatives like establishing a chemical sector council for innovation and also plans to establish an autonomous $100 million chemical innovation fund. It is also focusing on initiatives to make sure that feedstock availability is met and new technologies are encouraged. The chemical industry has not been attracting the best talent and this has created a shortage of skilled man power. The chemical industry requires 4.5-5 million skilled workers by FY2017. To address these needs, the Government is looking to set up specialized universities and vocational institutes to develop the skill base. Lastly, the Government is also tightening rules on environment protection to match international standards (source: Indian Chemical Industry – Five Year Plan).

 

It is important to note that majority of the demand for the chemical industry stems out of regions such as North America, Europe, Latin America and emerging economies in Asia. The Company supplies its products to most of these regions which gives it more scope for growth. As the manufacturing base now shifts to India and China, it can be comfortably said that the Company will benefit from this shift due to its strong presence in these markets.

 

COMPANY PERFORMANCE

 

During FY 2012-13, the turnover of the Company has increased to Rs.10040.900 Millions from Rs.7769.100 Millions in FY 2011-12. Profit before Interest, Depreciation and Tax for the year was Rs.812.200 Millions as compared to Rs.588.000 Millions in FY 2011 - 2012. Profit after Tax was higher at Rs.378.200 Millions as compared to Rs.230.800 Millions in FY 2011-12.

 

The Company's performance during the year has been exceptional; touching all-time highs in top line and bottom line numbers. This wasmainly due to higher volumes and increased realisations. Revenues were driven mainly from Organic and Fine and Speciality Chemical segments.

 

SEGMENTAL PERFORMANCE

 

Revenues for Organic Intermediates stood at Rs.6129.900 Millions for FY 2012-13 as compared to Rs.4609.800 Millions for FY 2011-12.

 

Organic Intermediate sales were higher due to increase in sales of Fuel Additives and Xylidine intermediates.

 

Inorganic Intermediates

 

Revenues for Inorganic Intermediates stood at Rs.1317.200 Millions for as compared to Rs.1321.000 Millions for FY 2011-12.

.

In the Inorganic intermediate segment showed some dip in the margins as the prices of major raw materials like caustic lye and ammonia were at their peak. The Company believes that this was an abrasion. The prices have normalized in the current year.

 

 

Fine and Speciality Chemicals

 

Revenues for Fine and Speciality Chemicals stood at Rs.2835.000 Millions for as compared to Rs.2205.400 Millions for FY 2011-12.

.

Fine and Speciality revenues have increased mainly because of introduction of new product in this segment.

 

OUTLOOK

 

The Company has ended FY 2012-13 on an extremely positive note. Turnover for the year touched a new high and stood at Rs.10040.900 Millions. The Company has maintained margins with Net Profits of Rs.378.200 Millions for the year.

 

The Company's greenfield expansion at Dahej and brownfield expansion at Nandesari are close to completion.

 

While with its current products, the Company serves major B2B customers in Agro chemicals, Colors and Speciality business, the OBA (Optical Brightening Agent) business would take the Company many stages forward into offering performance solutions for major customers in countries such as US, Canada, South America, Europe and South East-Asia. The Company would be offering OBA at the door-step not only from the world's largest Brightener plant but it would be offering equally matching logistic solutions and after-sale technical services. While the OBA plant comes into production, capital investments in the project would be completed. Investments in marketing and logistics and various operational trials at customers end, would lay the foundation of major long termsupply agreements with downstream industries including paper, detergents and textiles world-over.

 

The Company is also focused on de-bottlenecking activities in existing plants in order to make complex processes like chlorination, alkylation, absorption, nitration, to name a few, more efficient and cost competitive in the years to come.

 

COMPANY OVERVIEW

 

Subject is a leading chemical manufacturing Company. The Company manufactures Organic Intermediates, Inorganic Intermediates and Fine and Speciality Chemicals.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Other Loans and Advances

 

 

Deferred Sales Tax Loan

3.719

7.082

Deposits from Shareholders

0.887

1.951

Deposits from Public

51.264

86.831

Short-term borrowings

 

 

Short Term Loans from Banks

255.931

121.907

Total

311.801

217.771

Note:

 

Short Term loan from Banks represent Packing Credit in foreign currency and Buyers' Credit against Letter of Undertaking. It is generally due within 180 days & carry interest rate in the range of LIBOR plus 1% to 3% p.a. Company has also borrowed short term working capital loan in the form of Demand Loan. It is generally due within one year & carries interest rate in the range of Base Rate plus 0.50% to 0.60% p.a.

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10134988

14/05/2013 *

2,842,000,000.00

STATE BANK OF INDIA

MARBLE ARCH, RACE COURCE CIRCLE, VADODARA, GUJARAT - 390007, INDIA

B76922178

2

10096389

30/11/2011 *

100,000,000.00

EXPORT-IMPORT BANK OF INDIA

CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 4000
05, INDIA

B28233526

3

10045475

17/07/2012 *

2,500,000,000.00

AXIS BANK LIMITED

2ND FLOOR ,E, AXIS HOUSE, BOMBAY DYEING MILLS COMP, P. B. BUDHKAR MARG, WORLI,, MUMBAI, MAHARASHTRA
- 400025, INDIA

B44426518

 

* Date of charge modification

 

CONTINGENT LIABILITIES:

 

(Rs. in millions)

PARTICULARS

31.03.2013

 

 

a) in respect of Income Tax matters

4.692

b) in respect of Sales Tax / VAT matters

1.165

c) in respect of Excise matters

9.815

d) Bank Guarantees:

 

- Financial

3.570

- Performance

166.984

e) in respect of disputed liability relating to non-utilisation of industrial plot within specified time frame

--

f) Disputed Labour Matters

2.285

Total

188.511

 

FIXED ASSETS

 

Tangible Assets

 

  • Freehold Land
  • Plant and Machinery
  • Factory and Other Buildings
  • Roads
  • Office Equipment’s
  • Furniture and Fixture
  • Vehicles

 

Intangible Assets

 

  • Goodwill
  • Computer Software

 

 

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2014

 

(Rs. In millions)

 

 

Particulars

Quarter Ended

year Ended

 

 

31.03.2014

31.12.2013

31.03.2014

 

 

(Unaudited)

(Unaudited)

(Audited)

 

PART -1

 

 

 

1

Income from Operations

 

 

 

 

(a) Net Sales/Income from Operations (Net of Excise Duty)

3546.542

3338.248

12573.769

 

(b) Other Operating Income

59.599

46.177

122.518

 

Total Income from Operations (Net)

3606.141

3384.425

12696.287

2

Expenses

 

 

 

 

(a) Cost of materials consumed

2376.727

2274.713

8484.543

 

(b) Purchases of Stock-in- trade

69.147

18.655

181.431

 

(c) Changes in Inventories of Finished goods Work-in-progress and Stock-in-trade

(112.301)

(66.349)

(349.417)

 

(d) Employee benefits expense

234.381

237.146

883.510

 

(e) Depreciation and amortisation expense

79.664

75.055

296.436

 

(f) Power & Fuel expense

286.583

268.270

1105.759

 

(g) Other expenses

369.411

341.652

1271.770

 

Total expenses

3303.612

3149.142

11874.952

3

Profit/(Loss) from Operations before Other income, Finance costs and Exceptional items (1-2)

302.529

235.283

821.335

4

Other Income

7.054

2.734

17.674

5

Profit/(Loss) from Ordinary activities before Finance costs and Exceptional items (3 ± 4)

309.583

238.017

839.009

6

Finance Costs

57.284

70.293

257.485

7

Profit/(Loss) from Ordinary activities after Finance costs but before Exceptional items (5 ± 6)

252.299

167.724

581.524

8

Exceptional items

--

--

--

9

Profit(Loss) from Ordinary activities before Tax (7±8)

252.299

167.724

581.524

10

Tax Expense

93.704

54.227

198.238

11

Net Profit/(Loss) from Ordinary activities after Tax (9+10)

158.595

113.497

383.286

12

Extraordinary items (Net of Tax expenses)

--

--

--

13

Net Profit/(Loss) for the period (11 ±12)

158.595

113.497

383.286

14

Paid-up Equity Share Capital (Face Value of Rs. 10/- each)

104.538

104.538

104.538

15

Reserve excluding Revaluation Reserves as per Balance Sheet of previous accounting year

--

--

2957.320

16.i

Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualised)

 

 

 

 

a) Basic

15.16

10.85

36.63

 

b) Diluted

15.16

10.85

36.63

16.ii

Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualised)

 

 

 

 

a) Basic

15.16

10.85

36.63

 

b) Diluted

15.16

10.85

36.63

 

PART - II

 

 

 

A.

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

-  Number of Shares

4540912

4606642

4540912

 

-  Percentage of Shareholding

43.44

44.07

43.44

2

Promoters and promoter group shareholding (a) Pledged / Encumbered

 

 

 

 

-  Number of shares

NIL

NIL

NIL

 

-  Percentage of shares (as a % of the total shareholding of the Promoters and Promoter group)

NIL

NIL

NIL

 

-  Percentage of shares (as a % of the total share capital of the Company)

NIL

NIL

NIL

 

(b) Non-encumbered

 

 

 

 

-  Number of shares

5912907

5847177

5912907

 

-  Percentage of shares (as a % of the total shareholding of the Promoters and Promoter group)

100.00

100.00

100.00

 

-  Percentage of shares (as a % of the total share capital of the Company)

56.56

55.93

56.56

 

B. Investor Complains

3 Months ended 31.03.2014

Pending at the beginning of the quarter

Nil

Received during the quarter

Nil

Disposed off during the quarter

Nil

Remaining unresolved at the end of the quarter

Nil

 

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

(Rs. In millions)

 

 

Particulars

Quarter Ended

year Ended

 

 

31.03.2014

31.12.2013

31.03.2014

 

 

(Unaudited)

(Unaudited)

(Audited)

1

Segment Revenue:

 

 

 

 

a) Inorganic Intermediates

563.038

472.165

1759.483

 

b) Organic Intermediates *

1958.428

1828.081

7319.758

 

c) Fine & Speciality Chemicals

961.656

931.626

3365.998

 

d) Others

152.175

218.298

520.477

 

e) Un-allocable

40.646

34.489

35.687

 

Total

3675.943

3484.659

13001.403

 

Less : Inter segment revenue

69.802

100.234

305.116

 

Net Sales/Income from operations

3606.141

3384.425

12696.287

 

* Includes Trading Turnover

75.714

19.690

198.982

2

Segment Results before Tax & Interest:

 

 

 

 

a) Inorganic Intermediates

70.776

62.941

225.143

 

b) Organic Intermediates

235.356

234.641

862.949

 

c) Fine & Speciality Chemicals

169.820

138.686

502.223

 

d) Other

(110.204)

(68.638)

(308.027)

 

Total

(365.748)

367.630

1282.288

 

Less: i) Interest

57.284

70.293

257.485

 

ii) Other un-allocable expenditure

56.165

129.613

443.279

 

Net of un-allocable Income

 

 

 

 

Total Profit Before Tax

252.299

167.724

581.524

3

Capital Employed:

 

 

 

 

a) Inorganic Intermediates

944.450

958.551

944.450

 

b) Organic Intermediates

2460.499

2226.405

2460.499

 

c) Fine & Speciality Chemicals

1495.602

1704.426

1495.602

 

d) Other

3317.328

3173.593

3317.328

 

e) Allocable

255.416

314.958

255.416

 

Total

8473.295

8377.933

8473.295

 

NOTE:

 

The Board of Directors has recommended subject to the approval of shareholders



a) Dividend of Rs. 10/- (Rupees ten only) per equity share of face value of Rs. 10/- (Rupees ten only) each for the year ended March 31, 2014, on existing equity share capital.


b). Sub-division of equity share of the company of face value of Rs. 10/- (Rupees ten only) each into 5 (five) equity shares of face value of Rs. 2/- (Rupees two only) each.


C). Issuance of Bonus Shares in the ratio of 1 (one) bonus equity share of face value of Rs 2/- (Rupees two only) each fully paid up for every 1 (one) equity share of face value of Rs 2/- (Rupees two only) each.


The dividend of Rs. 10/- (Rupees ten only) per equity share on face value of Rs. 10/- (Rupees ten only) each (pre sub-division and bonus), shall be equivalent to a dividend of Rs. 1/- (Rupee one only) per equity share on face value of Ps. 2/- (Rupees two only) per equity share (post sub-division and bonus).
Since the Record Date for the allotment of bonus shares and sub-division of equity shares will fall prior to the book closure date for the payment of dividend, the shareholders will be entitled to dividend of Rs. 1!- (Rupee one only) per equity share of face value of Ps. 2/- (Rupees two only) each (equivalent to dividend of Rs. 10/- per equity share of face value of Rs. 10/- each, pre-sub-division, bonus and), which shall be paid to shareholders whose name appears in the register of members as on the date of book closure for payment of dividend.

During the quarter, company has incorporated a subsidiary 'Deepak Nitrite Limited, a limited liability company in the United States of America. The Subsidiary has no transaction upto March 31, 2014. Therefore, consolidated financial results has not been prepared and published.


The figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the end of third quarter of the current financial year


Previous period/year's. figures have been regrouped / reclassified. where necessary, to make them comparable with the current quarter figures.


The statutory Auditors of the company have conducted Audit of the results for the year ended March 31, 2014


The above Audited financial results were reviewed by the Audit Committee and have been considered and approved by the Board of Directors at its meeting held on May 2, 2014.

 

A Statement of Assets and Liabilities as required under Clause 41 (IV) (h) of Listing Agreement.

(Rs. In Millions)

SOURCES OF FUNDS

31.03.2014

 

 

I.              EQUITY AND LIABILITIES

 

(1)Shareholders' Funds

 

(a) Share Capital

104.538

(b) Reserves & Surplus

2970.684

(c) Money received against share warrants

0.000

 

(2) Share Application money pending allotment

0.000

Total Shareholders’ Funds (1) + (2)

3075.222

 

 

(3) Non-Current Liabilities

 

(a) long-term borrowings

2712.526

(b) Deferred tax liabilities (Net)

347.713

(c) Other long term liabilities

24.439

(d) long-term provisions

41.857

Total Non-current Liabilities (3)

3126.535

 

 

(4) Current Liabilities

 

(a) Short term borrowings

1907.161

(b) Trade payables

1461.650

(c) Other current liabilities

859.497

(d) Short-term provisions

132.398

Total Current Liabilities (4)

4360.706

 

 

TOTAL

10562.463

 

 

II.          ASSETS

 

(1) Non-current assets

 

(a) Fixed Assets

5323.777

(i) Tangible assets

0.000

(ii) Intangible Assets

0.000

(iii) Capital work-in-progress

0.000

(iv) Intangible assets under development

0.000

(b) Non-current Investments

31.222

(c) Deferred tax assets (net)

0.000

(d)  Long-term Loan and Advances

251.236

(e) Other Non-current assets

0.000

Total Non-Current Assets

5606.235

 

 

(2) Current assets

 

(a) Current investments

0.000

(b) Inventories

1299.506

(c) Trade receivables

2919.310

(d) Cash and cash equivalents

64.414

(e) Short-term loans and advances

659.794

(f) Other current assets

13.204

Total Current Assets

4956.228

 

 

TOTAL

10562.463

 

 

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.59.20

UK Pound

1

Rs.99.52

Euro

1

Rs.80.83

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

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

7

--LEVERAGE

1~10

7

--RESERVES

1~10

6

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

60

 

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.