MIRA
INFORM REPORT
|
Report Date : |
13.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
MANGALORE CHEMICALS AND FERTILISERS LIMITED |
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Registered
Office : |
Level 11, UB Tower, UB City, 24 Vittal Mallya Road, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
18.07.1966 |
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Com. Reg. No.: |
08-002036 |
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Capital
Investment / Paid-up Capital : |
Rs.1185.486
Millions |
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CIN No.: [Company Identification
No.] |
L24123KA1966PLC002036 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRM06363A BLRM00106B BLRM03609E BLRM00923G BLRM03445B |
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PAN No.: [Permanent Account No.] |
AABCM3599G |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer, Purchaser and Seller of Fertilizers and Related
Products. |
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No. of Employees
: |
872 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 23400000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is the part of the Bangaluru based UB group. It is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payment are
reported to be usually correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
State-run banks hired nearly
300000 personnel including more than 94000 officers in the last four years, according
to the Indian Banks Association. A study by trade lobby Assocham in September
2013 indicated that banks would need 800000 people in the next six years. It
estimated that state-run lenders alone would hire 50000 people in 2013/14.
The Competition Commission of
India plans to issue final orders within a broad time-frame of one year in
matters where it decides to carry out detailed investigations. The number of
complaints received by the watchdog which keeps tabs on unfair trade practices
in the marketplace.
The government has detected
custom tax evasion totaling around Rs 37920 mn in 14 states until December.
Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs
8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.
Connaught Place in New Delhi
slipped four notches to become the world’s eighth most expensive office
locations. London’s West End is the world’s most expensive office market.
There are 4.072 mn number of high
value spenders under the scanner of the income tax department. The income tax
department has information that they have made cash deposits announcing to Rs 1
mn or more in their savings bank accounts in the current financial year. It
plans to check potential evasion before the closing of the financial year on
March 31.
Estimated pharmaceutical sales
in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago.
The life sciences and health care industry is up against challenges such as
quality management, says a recent Deloitte report.
The gross non-performing assets
of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months
of the financial year. In absolute terms, the 40 listed banks added Rs 3386
crore to their gross NPAs in nine months with the State Bank of India leading
with the State Bank of India leading with an accretion of Rs 16610 crore.
The inflow of smuggled gold
doubled in 2013 following restrictions to curb the supply from official
channels to contain the current account deficit. China surpassed India in the
demand for gold for the first time in 2013 due to liberalization of gold
trading norms by its local governments.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
BBB+ (Long Term Rating) |
|
Rating Explanation |
Moderate degree of safety and carry moderate credit risk. |
|
Date |
13.12.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A2 (Short Term Rating) |
|
Rating Explanation |
Have strong degree of safety and carry low credit risk. |
|
Date |
13.12.2013 |
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. Satish Kumar |
|
Designation : |
DGM Legal Assistant and Company Secretory |
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Contact No.: |
91-80-39855500 |
|
Date : |
05.03.2014 |
LOCATIONS
|
Registered Office : |
Level 11, UB Tower, UB City, 24 Vittal Mallya Road, |
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Tel. No.: |
91-80-39856000, 39856500, 39855000, 39855500 |
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Fax No.: |
91-80-39855588 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Works Office : |
Panambur, Mangalore - 575 010, |
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Tel. No.: |
91-824-2220600 |
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Fax No.: |
91-824-2407938 |
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E-Mail : |
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Delhi Office : |
Flat No. 1002, 10th floor, Bhikaji Cama Bhavan, Bhikaji
Cama Place, New Delhi – 110066, Delhi India |
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Tel. No.: |
91-11-26181760 |
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Fax No.: |
91-11-26107818 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Dr. Vijay Mallya |
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Designation : |
Chairman |
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Name : |
Mr. Deepak Anand |
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Designation : |
Managing Director |
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Name : |
Mr. S.R. Gupte |
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Designation : |
Director |
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Date of Birth ; |
06.03.1939 |
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Qualification : |
B. Com., Chartered Accountant |
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Date of Appointment : |
23.12.1996 |
|
Brief resume /
Expertise in specific
functional areas : |
Mr. S R Gupte
worked with Caltex India Limited from 1964 for 5 ˝ years in various
capacities. He joined Air Mr. Gupte joined
the United Breweries Group in March 1992 as Executive Vice Chairman and is on
the Board of a number of Public Limited Companies. He has been on the Board
of the Company from December 1996. |
|
Directorship
in other
Public Limited Companies
: |
1. Aventis
Pharma Limited 2. Kingfisher
Airlines Limited 3. United
Spirits Limited 4. Millennium
Beer Industries Limited 5. Shaw Wallace
Breweries Limited 6. UB
Electronics Instruments Limited |
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|
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|
Name : |
Mr. Pratap Narayan |
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Designation : |
Independent Director |
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Name : |
Mr. N. Sunder Rajan |
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Designation : |
Independent Director |
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Date of Birth ; |
17.5.1944 |
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Qualification : |
Indian Audit and Accounts Service (Retd.) |
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Date of Appointment : |
28.04.2006 |
|
Brief resume /
Expertise in specific
functional areas : |
Mr. N Sunder
Rajan, an officer of the Indian Audit and Accounts Service, has served in
various capacities in the Indian Audit and Accounts Department, the Central
Ministries of Finance and Civil Aviation and Tourism and in the Lok Sabha
Secretariat assisting the Public Accounts Committee of Parliament in
enforcing executive accountability. As Deputy
Comptroller and Auditor General of |
|
Membership of Committees in other Public Limited Companies : |
1. Millennium Beer Industries Limited |
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|
|
|
Name : |
Mr. K. Prabhakar Rao |
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Designation : |
Whole-time Director |
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Date of Birth ; |
02.07.1955 |
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Qualification : |
B.E (Chemical Engineering) |
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Experience: |
35 Years |
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Date of Appointment : |
27.10.2006 |
|
Brief resume /
Expertise in specific
functional areas : |
Mr. Prabhakar Rao,
56, holds a Degree in Chemical Engineering. He has been working with MCF
since 1978 and has handled various responsibilities in the Company. As
Director – Works, he is presently responsible for production, maintenance,
quality control, technical services, projects, safety and logistics at the
Company’s plant in Mangalore. Mr. Rao has widely travelled and participated
in many National and International symposiums and has attended various
Management Development Programs in premier Institutions such as IIM Bangalore
and Ahmedabad. |
KEY EXECUTIVES
|
Name : |
Mr. K. Raghuveeran |
|
Designation : |
Vice President (Finance) and Company Secretory |
SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of Shareholder |
Total No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
26049046 |
21.98 |
|
|
26049046 |
21.98 |
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|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
26049046 |
21.98 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
931929 |
0.79 |
|
|
468357 |
0.40 |
|
|
3759884 |
3.17 |
|
|
5140 |
0.00 |
|
|
5165310 |
4.36 |
|
|
|
|
|
|
55387821 |
46.73 |
|
|
|
|
|
|
21016083 |
17.73 |
|
|
8996106 |
7.59 |
|
|
1900784 |
1.60 |
|
|
155745 |
0.13 |
|
|
1520 |
0.00 |
|
|
1269642 |
1.07 |
|
|
467711 |
0.39 |
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|
2150 |
0.00 |
|
|
4016 |
0.00 |
|
|
87300794 |
73.66 |
|
Total Public
shareholding (B) |
92466104 |
78.02 |
|
Total (A)+(B) |
118515150 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
118515150 |
0.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million 
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Purchaser and Seller of Fertilizers and Related
Products. |
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Products : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
Europe |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
PRODUCTION STATUS (AS ON 31.03.2011)
(In
MT per annum)
|
Particulars |
|
Licensed
Capacity |
Installed
Capacity * |
Actual
Production |
|
Ammonia (for captive consumption) |
|
217800 |
217800 |
218972 |
|
Urea |
|
379500 |
379500 |
379500 |
|
Complex Fertilizers (DAP and NP) |
|
255500 |
255500 |
223552 |
|
Ammonium Bi-Carbonate |
|
15330 |
15330 |
15330 |
|
Sulphuric Acid |
|
33000 |
33000 |
29585 |
|
Speciality Fertilizers |
|
40000 |
40000 |
7635 |
|
Sulphonated Naphthalene Formaldehyde |
|
21450 |
21450 |
4406 |
* As certified by the Management
GENERAL INFORMATION
|
Customers: |
Wholesaler and Retailers |
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No. of Employees : |
872 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
Note: Terms of repayment: _ 69.340 Millions repayable monthly in 7 years with interest @ 13.20% pa _ 69.944 Millions repayable monthly in 6 years with interest @ 14.85% pa _ 596.770 Millions Buyers’ Credit with interest @ 2.02% pa (renewable after 6 months) convertible into Term loan after 3 years |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
K.P. Rao and Company Chartered Accountants |
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Address : |
Bangalore, Karnataka, India |
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Cost Auditors : |
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|
Name : |
P R Tantri Chartered Accountant |
|
Address : |
B-1580, Sahakara Nagar, |
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PAN.
No.: |
AAGPT1121R |
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|
|
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Associates
: |
United Breweries (Holdings) Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
124000000 |
Equity Shares |
Rs.10/- each |
Rs.1240.000 Millions |
|
600000 |
13% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.60.000 Millions |
|
|
Total |
|
Rs.1300.000
Millions |
Issued
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000044 |
Equity Shares |
Rs.10/- each |
Rs.1200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
118515150 |
Equity Shares |
Rs.10/- each |
Rs.1185.151
Millions |
|
|
Forfeited Shares |
|
Rs.0.335
Millions |
|
|
Total |
|
Rs.1185.486 Millions |
Reconciliation of
the number of shares outstanding
|
Number of Equity shares outstanding at the beginning of the year |
11,85,15,150 |
|
Number of Equity shares outstanding at the end of the year |
11,85,15,150 |
Shares in the
company held by each shareholder holding more than 5 percent shares
|
United Breweries (Holdings) Limited |
19043797 |
|
Guardian Advisors Pvt. Limited along with PAC |
12981770 |
|
SBICAP Securities Limited |
10000000 |
|
Indian Syntans Investments Pvt. Ltd. along with the PAC |
6400000 |
|
|
|
|
|
|
The rights, preferences
and restrictions attached to shares
The Company has
only one class of shares issued and paid up referred to as equity shares having
a par value of Rs.10/- per share. Each holder of equity shares is entitled to
one vote per share. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting,
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 after
distribution of all preferential amounts, in proportion to their holdings.
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 |
1,185.486 |
1,185.486 |
1,185.486 |
|
(b) Reserves & Surplus |
4,647.028 |
4,169.376 |
3,665.552 |
|
(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) |
5,832.514 |
5,354.862 |
4,851.038 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1,616.589 |
2,237.590 |
162.692 |
|
(b) Deferred tax liabilities
(Net) |
407.001 |
387.875 |
377.688 |
|
(c) Other long term
liabilities |
262.222 |
232.576 |
191.549 |
|
(d) long-term provisions |
183.096 |
151.769 |
136.838 |
|
Total
Non-current Liabilities (3) |
2,468.908 |
3,009.810 |
868.767 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
10,494.035 |
10,810.101 |
1,678.918 |
|
(b) Trade payables |
3,362.808 |
3,077.008 |
1,192.703 |
|
(c) Other current liabilities |
496.196 |
527.254 |
312.075 |
|
(d) Short-term provisions |
204.313 |
179.463 |
203.319 |
|
Total
Current Liabilities (4) |
14,557.352 |
14,593.826 |
3,387.015 |
|
|
|
|
|
|
TOTAL |
22,858.774 |
22,958.498 |
9,106.820 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4,730.765 |
3,645.209 |
3,774.925 |
|
(ii) Intangible Assets |
4.669 |
7.152 |
9.675 |
|
(iii) Capital work-in-progress |
118.151 |
1,266.424 |
127.077 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2,000.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
291.747 |
1,797.140 |
64.228 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
7,145.332 |
6,715.925 |
3,975.905 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2,470.953 |
2,182.998 |
1,752.768 |
|
(c) Trade receivables |
1,865.917 |
3,348.582 |
405.777 |
|
(d) Cash and cash equivalents |
138.502 |
1,127.631 |
172.706 |
|
(e) Short-term loans and
advances |
461.560 |
599.872 |
2,787.345 |
|
(f) Other current assets |
10,776.510 |
8,983.490 |
12.319 |
|
Total
Current Assets |
15,713.442 |
16,242.573 |
5,130.915 |
|
|
|
|
|
|
TOTAL |
22,858.774 |
22,958.498 |
9,106.820 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales and Services |
27795.892 |
37071.771 |
25204.615 |
|
|
|
Other Income |
104.460 |
129.536 |
33.651 |
|
|
|
TOTAL (A) |
27900.352 (Due
to market down) |
37201.307 |
25238.266 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
14175.758 |
12794.724 |
10566.152 |
|
|
|
Purchases of Traded goods |
4259.765 |
14799.027 |
7339.645 |
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade |
(181.106) |
(684.627) |
54.460 |
|
|
|
Employee benefits expense |
650.093 |
592.532 |
557.835 |
|
|
|
Other expenses |
7143.635 |
7612.308 |
5129.531 |
|
|
|
TOTAL (B) |
26048.145 |
35113.964 |
23647.623 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1852.207 |
2087.343 |
1590.643 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
869.689 |
771.608 |
185.867 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
982.518 |
1315.735 |
1404.776 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
290.106 |
291.045 |
288.817 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
692.412 |
1024.690 |
1115.959 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
26.706 |
333.731 |
340.591 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
665.706 |
690.959 |
775.368 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2839.716 |
2364.046 |
1753.967 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
142.218 |
142.218 |
142.218 |
|
|
|
Transfer to general reserve |
25.000 |
50.000 |
0.000 |
|
|
|
Corporate Dividend Tax |
24.170 |
23.071 |
23.071 |
|
|
BALANCE CARRIED
TO THE B/S |
3314.034 |
2839.716 |
2364.046 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports (F.O.B. Value) |
13.933 |
20.736 |
50.630 |
|
|
TOTAL EARNINGS |
13.933 |
20.736 |
50.630 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
20.226 |
33.964 |
59.069 |
|
|
|
Spare Parts |
29.781 |
34.277 |
39.125 |
|
|
|
Raw Materials |
4174.351 |
4576.951 |
4292.197 |
|
|
|
Purchase of Finished Goods |
2736.567 |
12727.236 |
6053.043 |
|
|
TOTAL IMPORTS |
6960.925 |
17372.428 |
10443.434 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.62 |
5.83 |
6.54 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.39 |
1.86 |
3.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.49 |
2.76 |
4.42 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.34 |
4.72 |
12.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.19 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.08 |
2.44 |
0.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.08 |
1.11 |
1.51 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
1,185.486 |
1,185.486 |
1,185.486 |
|
Reserves & Surplus |
3,665.552 |
4,169.376 |
4,647.028 |
|
Net
worth |
4,851.038 |
5,354.862 |
5,832.514 |
|
|
|
|
|
|
long-term borrowings |
162.692 |
2,237.590 |
1,616.589 |
|
Short term borrowings |
1,678.918 |
10,810.101 |
10,494.035 |
|
Total
borrowings |
1,841.610 |
13,047.691 |
12,110.624 |
|
Debt/Equity
ratio |
0.380 |
2.437 |
2.076 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
25,204.615 |
37,071.771 |
27,795.892 |
|
|
|
47.083 |
(25.021) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
25,204.615 |
37,071.771 |
27,795.892 |
|
Profit After Tax |
775.368 |
690.959 |
665.706 |
|
|
3.08% |
1.86% |
2.39% |
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% |
Yes |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
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 |
No |
|
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 |
CONTINGENT
LIABILITIES:
|
Particulars |
As
on 31.03.2013 |
|
Outstanding Bank Guarantees |
156.242 |
|
Claims against the Company not acknowledged as debt. Disputed customs duty liability under
appeal by Company before CESTAT |
9.060 |
|
Claims against the Company not acknowledged as debt. Disputed arrears of electricity charges, under appeal by Company / KPTCL |
-- |
|
Disputed Income-tax liability for assessment year 2009-10 |
69.287 |
PERFORMANCE:
During 2012-13,
the Company achieved a turnover of Rs.27795.900 Millions compared to Rs.
37071.700 Millions in the previous year. PBT at_ Rs.692.400 Millions was lower
compared to Rs.1024.700 Millions during the previous year. Profitability was
adversely affected because of dropin volumes, mainly of non-urea fertilizers,
caused by failure of monsoon in both Kharif and Rabi seasons and demand
destruction caused by sharp increases in MRP of these fertilizers to compensate
for increase in international prices and reduction in Government of India
subsidy.
UNSECURED LOAN:
(Rs. In Millions)
|
Particulars |
31.03.2013 |
31.03.2012 |
|
LONG TERM
BORROWINGS |
|
|
|
_ Rs.873.787 Millions repayable quarterly in 5 years with rate of interest @ 15.25% pa From Others |
873.787 |
1352.581 |
|
Total |
873.787 |
1352.581 |
PRODUCTION
Urea
The Company achieved
production of the full re-assessed capacity of 3, 79,500 MTs.
Di-Ammonium
Phosphate (DAP) and Complex Fertilisers
The Company
produced 1, 65,615 MTs of Phosphatic Fertilizers during the year compared to
1,72,276 MTs in the previous year. Production of phosphatic fertilizers was
marginally lower due to reduced availability of Phosphoric Acid.
Ammonium
Bi-carbonate (ABC)
Production of ABC
was 16,111 MTs during the year compared to15,893 MTs in the previous year.
SALES
During the year,
the Company sold 3, 79,487 MTs of Urea compared to 3,79,545 MTs in the previous
year. Sales of manufactured Phosphatic Fertilizers were 1, 65,652 MTs compared
to 1,74,240 MT in the previous year. Sales of imported fertilizers were 87,056
MTs as against 4,60,356 MTs in the previous year.
Plant Nutrition
Products sales increased from Rs.1320.000 Millions to Rs.1380.000 Millions and
Plant Protection Products sales increased from Rs. 220.000 Millions to Rs.
290.000 Millions. These increases, though modest, are quite remarkable in view
of the adverse market conditions
SULPHONATED
NAPHTHALENE FORMALDEHYDE (SNF):
The
state-of-the-art plant was set up in August 2010 for manufacture of SNF which
can be expanded on a modular basis to take care of increased demand. You will
be happy to note that the Company sold16,145 MTs of SNF during the year,
compared to 11,458 MTs in the previous year. The plant capacity utilization has
substantially increased. During the year many new customers were added and
export orders were executed for the first time. The liquid and powder forms of
SNF have been well received in the market and have created a brand name for
excellent quality.
PLANT PROTECTION
CHEMICALS:
The Company
introduced Plant Protection (PP) products in July 2010.As an entry strategy, a
collaborative approach was adopted, with the Company marketing the products of
reputed pesticide companies through its channel partner network. During the
year, the Company launched three products in the Mangala brand name, viz.,
Mangala Mahacardo (an insecticide), Mangala COC (a fungicide) and Mangala
Pardic (a weedicide). In the financial year 2013-14, the Company plans to
launch 3 more products of selected molecules under its own brand. The Plant
Protection Chemicals business registered a turnover of Rs.290.000 Millions
compared to Rs.220.000 Millions in the previous year.
WORKING CAPITAL:
During the year
the marketing territories were adversely affected by unprecedented drought.
Large brought forward stocks of fertilizers, manifold increase in selling price
of non-urea fertilizers, erratic availability of phosphoric acid and other raw
materials coupled with deficient monsoon affected the sales. Due to continued
under provisioning for fertilizer subsidy in the Union Budget, payment of subsidy
has been inordinately delayed stretching up to over 9 months in many cases.
This delay in the release of GOI subsidy, depreciation of INR vs. USD and
increase in interest rates charged by banks resulted in the increase in
interest cost.
FERTILIZER POLICY:
Stage - III of the
New Pricing Scheme (NPS) for Urea announced byte Government of India in March
2007 lapsed on March 31, 2010.The existing policy has been extended
provisionally until further orders. With effect from April 1, 2010, the
government introduced a Nutrient Based Subsidy (NBS) policy for Phosphatic and
Potassic fertilizers, announcing the rate of subsidy in advance for the full
year. For 2013-14, this subsidy has again been substantially reduced. Coupled
with the sharp depreciation of the Indian Rupee, this has led to volatility in
MRP.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Industry Structure
and Developments
The Company has
only one business segment, viz. Fertilizers. It manufactures both Nitrogenous and
Phosphatic fertilizers and is the only manufacturer of fertilizers in the state
of Karnataka. About 68%of the Company’s products are sold in the state of
Karnataka, which meets about 18% of the needs of the farmers in the State. The
Company maintains a modest share of the market in the neighbouring states of
Kerala, Tamil Nadu, Andhra Pradesh and Maharashtra.
Future Outlook
The demand for
both Nitrogenous and Phosphatic fertilizers in India is increasing steadily and
expected to grow at a compounded annual rate of 6%. With the domestic
production almost stagnant and the demand increasing, the supply deficit has to
be met from imports. Based on surplus rainfall already in Kharif season of
2013-14 and above normal forecast for the rest of the year, your Company has
planned to import substantial quantity of fertilizers to meet the growing
demand, keeping in view USD–INR exchange rates. In addition, your Company has
also finalized supply arrangements with certain local manufacturers of
fertilizers, to augment total fertilizer availability in our marketing
territory through our own marketing channel. Considering the significant
success achieved due to its focus on Plant Nutrition business and given the
enormous potential for growth, the Company would continue to focus and grow in
that area and also look to diversify into other products that are synergistic
with the existing operations. Plant Protection Chemical business which was
started during 2010-11 has gathered momentum and has been growing rapidly. The growth
momentum is expected to be maintained going forward.
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE YEAR ENDED 31.12.2013
(In Millions)
|
Particulars |
3
months ended |
Preceding
3 months ended |
Current
Year 9 months ended |
|
|
(Refer Notes
Below) |
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
1 |
Income from
operations |
|||
|
|
Net sales/income from operations (Net of excise duty) |
8405.068 |
12210.716 |
26686.948 |
|
2 |
Expenses: |
|||
|
|
a. Cost of materials consumed |
3648.040 |
4233.950 |
10953.199 |
|
|
b. Purchases of stock-in-trade |
404.667 |
4210.991 |
7094.857 |
|
|
c. Change in inventories of finished goods, work-in-progress and
stock-in-trade |
1526.429 |
451.139 |
457.018 |
|
|
d. Employee benefits expense |
172.260 |
180.028 |
528.091 |
|
|
e. Depreciation and amortization expense |
71.445 |
72.921 |
217.197 |
|
|
f. Other
expenses |
|||
|
|
i) Power and fuel |
1327.188 |
1284.163 |
3468.125 |
|
|
ii) Other expenses |
572.478 |
1369.280 |
2860.691 |
|
|
Total
expenses |
7722.507 |
11802.472 |
25579.178 |
|
3 |
Profit /
(Loss) from operations before other income and finance costs
(1-2) |
682.561 |
408.244 |
1107.770 |
|
4 |
Other income |
20.680 |
13.062 |
41.337 |
|
5 |
Profit /
(Loss) from ordinary activities before finance costs (3+4) |
703.241 |
421.306 |
1149.107 |
|
6 |
Finance costs |
280.557 |
282.260 |
771.878 |
|
7 |
Profit /
(Loss) before tax (5-6) |
422.684 |
139.046 |
377.229 |
|
8 |
Tax expense |
143.097 |
44.708 |
123.749 |
|
9 |
Net Profit
/ (Loss) for the period (7-8) |
279.587 |
94.338 |
253.480 |
|
10 |
Paid-up equity share capital |
1185.486 |
1185.486 |
1185.486 |
|
11 |
Reserve excluding Revaluation Reserves as per balance sheet
of previous accounting year |
-- |
-- |
-- |
|
12 |
Earnings
per share (of Rs.10/- each) (not annualised): |
|||
|
|
Basic and Diluted |
2.36 |
0.80 |
2.14 |
Notes:
1.
The concession for Urea for the half year has been
estimated and accounted as per the pricing policy parameters applicable to
Stage-III of the New Pricing Scheme, which has been extended from 1.4.2010 on
provisional basis until further orders.
2.
Phosphatics and Complex Fertilizers subsidy has
been accounted based on rates announced by GOI under Nutrient Based Subsidy
policy.
3.
The Company's operations predominantly relate to
the fertilizer segment and profitability is dependent on prevailing GOI policy.
4.
Previous period figures have been regrouped,
wherever necessary.
5.
The above results were taken on record by the Board
of Directors at its meeting on 11.02.2014. The Auditors have carried out a
limited review.
SELECT
INFORMATION FOR THE QUARTER YEAR ENDED 31.12.2013
|
Particulars |
3
months ended |
Preceding
3 months ended |
Current
Year 9 months ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|||
|
1 |
Public
shareholding |
|||
|
|
- Numbers of shares |
92466104 |
92466104 |
92466104 |
|
|
- Percentage of shareholding |
78.02 |
78.02 |
78.02 |
|
2 |
Promoters and
Promoter Group Shareholding |
|||
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Numbers of shares |
13753881 |
13753881 |
13753881 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
52.80 |
52.80 |
52.80 |
|
|
- Percentage of shares (as a % of the total share capital of the
company) |
11.61 |
11.61 |
11.61 |
|
|
b) Non-encumbered |
|
|
|
|
|
- Numbers of shares |
12295165 |
12295165 |
12295165 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter
and Promoter group) |
47.20 |
47.20 |
47.20 |
|
|
- Percentage of shares (as a % of the total share capital of the
company) |
10.37 |
10.37 |
10.37 |
|
|
Particulars |
For
the quarter ended 31.12.2013 |
|
B |
INVESTOR
COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
11 |
|
|
Disposed off during the quarter |
11 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
FIXED ASSETS:
·
·
·
Buildings
·
Railway Sidings
·
Roads, Drainage and Culverts
·
Plant and Machinery
·
Intangible Assets
·
Electrical Installations and Fittings
·
Equipment
·
Cranes and Locomotives
·
Furniture and Fixtures
·
Vehicles
·
Books
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.20 |
|
|
1 |
Rs.102.35 |
|
Euro |
1 |
Rs.84.95 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.