MIRA
INFORM REPORT
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Report Date : |
14.03.2014 |
IDENTIFICATION DETAILS
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Name : |
SUDARSHAN CHEMICAL INDUSTRIES LIMITED |
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Registered
Office : |
162, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
19.02.1951 |
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Com. Reg. No.: |
11-008409 |
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Capital
Investment / Paid-up Capital : |
Rs.69.227
Millions |
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CIN No.: [Company Identification
No.] |
L24119PN1951PLC008409 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNES06998F NGPS01977D |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are
Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Selling of Organic and Inorganic
Pigments, Intermediates and Agro Chemicals. |
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No. of Employees
: |
1148 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (53) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 11244000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having good track record. There is a dip in profit of the company in the year 2013. However,
overall financial position of the company is decent. Trade relations are fair. Business is active. Payment terms are
reported to be regular and as per commitment. 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.
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry
retained its status as the favourable venture capital investors in 2013.
Pakistan has temporarily banned gold imports for the second time in six months,
as it tries to stem smuggling into India. India’s import duty on gold is 10 %
and curbs on purchases have dried up legal imports into what used to be the
world’s biggest bullion buyers. The World Gold Council puts the amount smuggled
into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed
that unclaimed bank deposits estimated to be about Rs 35000 mn be used for
education and awareness among depositors. According to the plan, deposits
that have not been claimed for at least 10 years will be transferred to the
scheme.
EXTERNAL AGENCY RATING
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Rating Agency Name |
ICRA |
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Rating |
Term Loan: A |
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Rating Explanation |
Adequate degree of safety and low credit risk. |
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Date |
December, 2013 |
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Rating Agency Name |
ICRA |
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Rating |
Non Fund Based Limits: A1 |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
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Date |
December, 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 DECLINED BY
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Name : |
Mr. S.R. Vaidya |
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Designation : |
Senior Account Executive |
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Contact No.: |
91-20-26058888 |
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Date : |
13.03.2014 |
LOCATIONS
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Registered Office/ Global Head Office : |
162, Wellesley Road, Pune – 411 001, Maharashtra, India |
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Tel. No.: |
91-20-26058888 |
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Fax No.: |
91-20-26058222 |
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E-Mail : |
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Website : |
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Factory 1 : |
46, MIDC Estate, Dhatav, Roha, District Raigad – 402 116, Maharashtra,
India |
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Factory 2 : |
Plot No.A-19/1+2, MIDC Estate, Mahad, District Raigad – 402 301,
Maharashtra, India |
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Factory 3 : |
R and D Laboratory, Ambadvet, Amralevadi, Taluka Mulshi, District
Pune, Maharashtra, India |
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Branch Office : |
Located at ·
Bangalore ·
Kolkata ·
Ahmedabad ·
Delhi ·
Guntur |
DIRECTORS
AS ON 31.03.2013
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Name : |
Mr. K.L. Rathi |
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Designation : |
Executive Chairman |
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Date of Birth/ Age : |
74 Years |
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Qualification : |
B. Sc, B.Sc.(Tech) M.A. (Chem) (Columbia) |
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Experience : |
49 Years |
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Date of Appointment : |
01.01.1964 |
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Name : |
Mr. P.R. Rathi |
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Designation : |
Vice Chairman and Managing Director |
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Date of Birth/ Age : |
60 Years |
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Qualification : |
M.S.(M.I.T.) M.B.A. (Columbia) |
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Experience : |
37 Years |
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Date of Appointment : |
01.04.1976 |
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Name : |
Mr. B.S. Mehta |
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Designation : |
Non-Executive, Independent Director |
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Name : |
Mr. S.N. Inamdar |
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Designation : |
Non-Executive, Independent Director |
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Name : |
Mr. P.P. Chhabria |
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Designation : |
Non-Executive, Independent Director |
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Name : |
Mr. D.N. Damania |
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Designation : |
Non-Executive, Independent Director |
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Name : |
Mr. S. Padmanabhan |
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Designation : |
Non-Executive, Independent Director |
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Name : |
Mr. S.K. Asher |
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Designation : |
Non-Executive, Independent Director |
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Name : |
Mr. N.J. Rathi |
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Designation : |
Non-Executive Director |
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Name : |
Mr. R.B. Rathi |
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Designation : |
Executive Director |
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Date of Birth/ Age : |
44 Years |
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Qualification : |
B.E. Mech. Engg. MIT, Pune B.S. Chem. Engg. Ohio University, USA
M.B.A., Pittsburgh University, USA |
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Experience : |
21 Years |
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Date of Appointment : |
01.10.1992 |
KEY EXECUTIVES
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Name : |
Mr. P.S. Raghavan |
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Designation : |
Company Secretary |
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Name : |
Mr. A. Vij |
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Designation : |
Chief Operating Officer – Pigment Division |
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Date of Birth/ Age : |
43 Years |
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Qualification : |
B.E. Chemical, Punjab University |
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Experience : |
23 Years |
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Date of Appointment : |
08.12.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of holding
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(A) Shareholding of Promoter and Promoter Group |
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3436416 |
49.64 |
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|
225210 |
3.25 |
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3661626 |
52.89 |
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Total shareholding of Promoter and Promoter Group (A) |
3661626 |
52.89 |
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(B) Public Shareholding |
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|
725 |
0.01 |
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|
770 |
0.01 |
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|
171759 |
2.48 |
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|
550 |
0.01 |
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|
173804 |
2.51 |
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|
51952 |
0.75 |
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|
1218886 |
17.61 |
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|
524841 |
7.58 |
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|
1291616 |
18.66 |
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|
6703 |
0.10 |
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|
7711 |
0.11 |
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|
558082 |
8.06 |
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|
719120 |
10.39 |
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|
3087295 |
44.60 |
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Total Public shareholding (B) |
3261099 |
47.11 |
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Total (A)+(B) |
6922725 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
6922725 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the
Shareholder |
Details of Shares held |
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No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
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1 |
K R Rathi |
36,279 |
0.52 |
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2 |
P R Rathi |
3,82,345 |
5.52 |
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3 |
S P Rathi |
1,31,368 |
1.90 |
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4 |
Rahul P Rathi |
4,75,454 |
6.87 |
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5 |
B J Rathi HUF |
18,975 |
0.27 |
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6 |
K B Rathi |
10,090 |
0.15 |
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7 |
Ajoy B Rathi |
2,05,106 |
2.96 |
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8 |
Ajoy B Rathi HUF |
1,03,000 |
1.49 |
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9 |
Ajoy B Rathi (As Trustee- Manan Rathi Trust) |
82,790 |
1.20 |
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10 |
Nisha A Rathi |
71,937 |
1.04 |
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11 |
Rajesh B Rathi |
3,28,414 |
4.74 |
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12 |
Rajesh B Rathi HUF |
13,300 |
0.19 |
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13 |
Rajesh B Rathi (As Trustee- Sow Rachna Rathi Family Trust) |
1,20,825 |
1.75 |
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14 |
Rajesh B Rathi (As Trustee- Shri Balkrishna Rathi Family Trust) |
84,520 |
1.22 |
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15 |
Rachna R Rathi |
500 |
0.01 |
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16 |
Balkrishna Rathi Finance Private Limited |
46,255 |
0.67 |
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17 |
N J Rathi |
2,41,765 |
3.49 |
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18 |
Anuj N Rathi |
3,77,762 |
5.46 |
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19 |
Anuj N Rathi HUF |
61,777 |
0.89 |
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20 |
Archana A Rathi |
72,749 |
1.05 |
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21 |
N J R Finance Private Limited |
1,09,063 |
1.58 |
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22 |
Kishor Laximinarayan Rathi |
1,07,430 |
1.55 |
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23 |
Aruna K Rathi |
2,92,435 |
4.22 |
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24 |
Rohit K Rathi |
2,17,595 |
3.14 |
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25 |
Laxminarayan Finance Private Limited |
69,892 |
1.01 |
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Total |
36,61,626 |
52.89 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
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|
1 |
Life Insurance Corporation of India Limited |
103244 |
1.49 |
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2 |
Vasant Ramchandra Rathi |
83997 |
1.21 |
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3 |
Anuradha Vasant Rathi |
70077 |
1.01 |
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4 |
DIC Corporation Japan |
557989 |
8.06 |
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5 |
Quest Investment Advisors Private Limited |
315743 |
4.56 |
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6 |
PACs for Ajay Sheth |
283782 |
4.10 |
|
7 |
Ajay Sheth |
119595 |
1.73 |
|
|
Total |
1534427 |
22.17 |
Shareholding belonging
to the category "Public" and holding more than 5% of the Total No. of
Shares
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of
Total No. of Shares |
|
|
|
|
|
|
1 |
DIC Corporation Japan |
557989 |
8.06 |
|
|
Total |
557989 |
8.06 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Selling of Organic and Inorganic
Pigments, Intermediates and Agro Chemicals. |
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Products : |
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Exports : |
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Countries : |
·
USA ·
UK ·
Europe |
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Imports : |
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Countries : |
China |
GENERAL INFORMATION
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No. of Employees : |
1148 (Approximately) |
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Bankers : |
·
Bank of Maharashtra, Lokmangal, 1501, Shivaji
Nagar (Head Office), Pune – 411 005, Maharashtra, India ·
State Bank of India, Pune, Maharashtra, India ·
Bank of Baroda, Pune Camp Branch, Pune – 411 001,
Maharashtra, India ·
ICICI Bank
Limited ·
HDFC Bank Limited ·
Export - Import Bank of India |
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Facilities : |
Notes: LONG-TERM
BORROWINGS i) Term Loan
from HDFC Bank of Rs.360.000 millions (outstanding Rs.224.000 millions (P.Y. Rs.320.000
millions)) was taken in Financial Year 2011-12 and carries interest @ 10.50%
p.a. The loan is repayable in 45 monthly installments of Rs.8.000 millions
from November 2012. Moratorium period of 12 months from the date of first
disbursement. ii) Term Loan
from EXIM Bank of Rs.150.000 millions (outstanding Rs.20.000 millions (P.Y.
Rs.50.000 millions)) was taken in Financial Year 2008-09 and carries interest
@ 11.10% p.a. The loan is repayable in 60 monthly installments of Rs.2.500
millions from December 2009. iii) Term Loan
from EXIM Bank of Rs.360.000 million (outstanding Rs.150.000 millions (P.Y.
Rs.240.000 millions)) was taken in parts till March 31, 2012 and carries
interest @ 11.00% p.a. The loan is repayable in 48 monthly installments of Rs.7.500
millions from February 2012. iv) Term Loan
from Bank of Maharashtra of Rs.70.000 millions (outstanding Rs. Nil (P.Y.
Rs.7.000 millions)) was taken in Financial Year 2007-08 and carries interest
@ 12.00% p.a. The loan is repayable in quarterly installments of Rs.3.500
millions from October 2010. v) Term Loan
from Bank of Maharashtra of Rs.31.000 millions (outstanding Rs. Nil (P.Y.
Rs.4.147 millions)) was taken in Financial Year 2008-09 and carries interest
@ 12.00% p.a. The loan is repayable in monthly installments of Rs.0.517
million from April 2009. vi) Term Loan
from Bank of Maharashtra of Rs.350.000 millions (outstanding Rs.167.500
millions (P.Y. Rs.255.100 millions)) was taken in Financial Year 2010-11 and
carries interest @ 10.25% p.a. The loan is repayable in 46 monthly
installments of Rs.7.300 millions from March 2012 and 1 installment is of
Rs.6.900 millions. vii) Term Loan
from Bank of Maharashtra of Rs.420.000 millions (outstanding Rs.336.000
millions (P.Y. Rs.290.000 millions)) was taken in parts till March 31, 2012
and carries interest @ 10.70% p.a. The loan is repayable in 20 quarterly
installments of Rs. 21.000 millions from May 2013. Moratorium period of 12
months from the date of first disbursement. viii) Term Loan
from Bank of Maharashtra of Rs.168.500 millions (outstanding Rs.151.649
millions (P.Y. Rs. Nil)) was taken in Financial Year 2012-13 and carries
interest @ 10.70% p.a. The loan is repayable in 60 quarterly installments of
Rs.2.808 millions from October 2013. Moratorium period of 12 months from the
date of first disbursement. ix) Term Loan
from Bank of Maharashtra of Rs.420.000 millions (outstanding Rs.336.000
millions (P.Y. Rs. Nil)) was taken in Financial Year 2012-13 and carries
interest @ 10.25% p.a. The loan is repayable in 20 quarterly installments of
Rs.21.000 millions from May 2013. Moratorium period of 12 months from the
date of first disbursement. x) Term Loan
from EXIM Bank of USD 1 Million (outstanding Rs.36.460 millions (P.Y. Rs.
Nil)) was taken in parts till March 31, 2013 and carries interest @ LIBOR +
475 BASIS POINTS p.a. The loan is repayable in 12 quarterly installments of
USD 0.83 Lacs from March 2014. Moratorium period of 12 months from the date
of first disbursement. xi) Corporate
Term Loan from SBI of Rs.300.000 millions (outstanding Rs.200.000 millions
(P.Y. Rs. Nil)) was taken in parts till March 31, 2013 and carries interest @
10.50% p.a. The loan is repayable in 8 quarterly installments of Rs.25.000
millions from April 2014. Moratorium period of 12 months from the date of
first disbursement. xii) The Term
Loans from Export Import Bank of India (EXIM Bank), Bank of Maharashtra (BOM)
and HDFC Bank are secured by First Pari Passu charge by way of hypothecation
of all movable fixed assets and further secured by way of mortgage on all
immovable fixed assets of the Company situated at Roha, Mahad, District
Raigad and at Ambadvet, Amralevadi, District Pune. The Term Loan of EXIM Bank
of Rs.150.000 millions is also secured by a charge on the Company’s current
assets, both present and future. The Foreign Currency Term Loan of USD 1.00
Million (Rs.55.000 millions approx.) from Export Import Bank of India (EXIM
Bank) is secured by a First Pari Passu charge on the entire fixed assets of
the Company. Also the said Foreign Currency Term Loan is to be secured by a
mortgage charge on the immovable properties of the Company situated at Roha,
Mahad, District Raigad and Ambadvet, Amralevadi, District Pune. The Corporate
Loan of Rs.300.000 millions from State Bank of India, Pune (SBI) is secured
by a First Pari Passu charge on the movable fixed assets and current assets
of the Company. Also the said Corporate Loan is to be secured by a mortgage
charge on the immovable properties of the Company situated at Roha, Mahad,
District Raigad and Ambadvet, District Pune. SHORT-TERM
BORROWINGS i) Working
Capital Loan (Cash Credit) Rs.119.246 millions (P.Y. Rs.73.709 millions) from
Bank of Maharashtra carries interest @ 11.25% p.a. The Loan is secured by
hypothecation of stock-in-trade, book debts and receivables. ii) Working
Capital Loan (Cash Credit) Rs. 165.709 millions (P.Y. Rs.44.646 millions)
from State Bank of India carries interest @ 10.20% p.a. The Loan is secured
by hypothecation of stock-in-trade, book debts and receivables. iii) Working
Capital Loan (Cash Credit) Rs.2.836 millions (P.Y. Rs.13.544 millions) from
Bank of Baroda carries interest @ 11.75% p.a. The Loan is secured by
hypothecation of stock-in-trade, book debts and receivables. iv) Working
Capital Loan (Cash Credit) Rs.29.706 millions (P.Y. Rs.76.812 millions) from
HDFC Bank carries interest @ 12.70 % p.a. The Loan is secured by
hypothecation of stock-in-trade, book debts and receivables. v) Working
Capital Loan (Cash Credit) Rs.53.425 millions (P.Y. Rs.54.505 millions) from
ICICI Bank carries interest @ 11.50 % p.a. The Loan is
secured by hypothecation of stock-in-trade, book debts and receivables. vi) Working
Capital Loan (PCFC) Rs.54.690 millions (P.Y. Rs.73.399 millions) from Bank of
Maharashtra carries interest @ LIBOR + 250 BASIS POINTS p.a. The Loan is
repayable within 180 days from the date of borrowing. The Loan is secured by
inventories for exports. vii) Working
Capital Loan (FOBN) Rs.156.686 millions (P.Y. Rs.108.421 millions) from Bank
of Maharashtra carries interest @ 10.25% p.a. The Loan is repayable within 90
days from the date of borrowing. The Loan is secured by charge on export
bills. viii) Working
Capital Loan (FOBN) Rs.116.414 millions (P.Y. Rs.114.409 millions) from State
Bank of India carries interest @ 9.70% p.a. The Loan is repayable within 90
days from the date of borrowing. The Loan is secured by charge on export
bills. ix) Working
Capital Borrowings from BOM led Consortium Banks consisting of BOM, SBI, BOB,
ICICI Bank Limited and HDFC Bank Limited are secured by hypothecation of
stock-in-trade, book debts and receivables. These are further secured by
second charge on the immovable properties of the Company situated at Roha,
Mahad, District Raigad and at Ambadvet, Amralewadi, Taluka Mulshi, District
Pune by creation of a joint registered mortgage. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B.K. Khare and Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Subsidiary Companies : |
·
Prescient Color Limited ·
Sudarshan Europe B.V. ·
Sudarshan North America, Inc. (Subsidiary of
Sudarshan Europe B.V.) |
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Associate Companies : |
·
Rathi Brothers Poona Limited ·
Rathi Brothers Madras Limited ·
Rathi Brothers Calcutta Limited ·
Rathi Brothers Delhi Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8000000 |
Equity Shares |
Rs.10/- each |
Rs.80.000 Millions |
|
|
|
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
*6922775 |
Equity Shares |
Rs.10/- each |
Rs.69.228
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6922725 |
Equity Shares |
Rs.10/- each |
Rs.69.227
Millions |
|
|
|
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Note:
* Allotment of 50
Rights Equity Shares of Rs.10/- each is kept in abeyance, matter being
sub-judice.
Reconciliation of
the shares outstanding at the beginning and at the end of the year:
|
Particulars |
No. of shares |
Amount (Rs. in
Millions) |
|
At the beginning of the year |
6922725 |
69.227 |
|
Add: Allotted during
the year |
-- |
-- |
|
Less: Shares bought
back during the year |
-- |
-- |
|
Outstanding at the end of the year |
6922725 |
69.227 |
Terms/ Rights
attached to equity shares:
The Company has
only one class of equity shares having a par value of Rs.10 per share. Each
holder of equity shares is entitled to one vote per share. The Company declares
and pays dividend in Indian Rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting.
During the
financial year ended 31st March, 2013, the amount of per share
dividend recognised as distribution to the equity shareholders is Rs.12.50
In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Shares held by
holding/ultimate holding company and/or their subsidiaries/associates:
The Company does not have any holding or ultimate holding company.
Details of
shareholders holding more than 5% shares in the company:
|
Particulars |
No. of shares |
% |
|
Pradeep R. Rathi |
382345 |
5.52 |
|
Rahul P. Rathi |
475454 |
6.87 |
|
Anuj N. Rathi |
377762 |
5.46 |
|
DIC Corporation, Japan |
557989 |
8.06 |
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 |
69.227 |
69.227 |
69.227 |
|
(b) Reserves & Surplus |
2741.705 |
2632.396 |
2371.457 |
|
(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) |
2810.932 |
2701.623 |
2440.684 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
2103.899 |
1233.222 |
1037.716 |
|
(b) Deferred tax liabilities (Net) |
252.261 |
212.310 |
120.974 |
|
(c) Other long term liabilities |
27.811 |
27.770 |
28.191 |
|
(d) Long-term provisions |
56.453 |
53.392 |
44.055 |
|
Total Non-current Liabilities (3) |
2440.424 |
1526.694 |
1230.936 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
1443.166 |
1051.554 |
797.665 |
|
(b) Trade payables |
1017.264 |
963.132 |
656.131 |
|
(c) Other current
liabilities |
877.109 |
823.158
|
448.978
|
|
(d) Short-term provisions |
145.070 |
139.505
|
132.590
|
|
Total Current Liabilities (4) |
3482.609 |
2977.349 |
2035.364 |
|
|
|
|
|
|
TOTAL |
8733.965 |
7205.666 |
5706.984 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2959.990 |
2048.034 |
1309.502 |
|
(ii) Intangible Assets |
120.944 |
123.442 |
19.973 |
|
(iii) Capital
work-in-progress |
225.879 |
167.466 |
311.837 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
251.840 |
251.770 |
218.575 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
210.069 |
274.096 |
195.615 |
|
(e) Other Non-current assets |
3.000 |
5.500 |
5.500 |
|
Total Non-Current Assets |
3771.722 |
2870.308 |
2061.002 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1858.572 |
1569.123 |
1374.554 |
|
(c) Trade receivables |
1995.931 |
1842.773 |
1746.882 |
|
(d) Cash and cash
equivalents |
217.040 |
338.335 |
117.998 |
|
(e) Short-term loans
and advances |
642.538 |
398.772 |
333.744 |
|
(f) Other current
assets |
248.162 |
186.355 |
72.804 |
|
Total Current Assets |
4962.243 |
4335.358 |
3645.982 |
|
|
|
|
|
|
TOTAL |
8733.965 |
7205.666 |
5706.984 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
7852.539 |
7442.344 |
7071.156 |
|
|
|
Other Income |
115.008 |
79.836 |
48.960 |
|
|
|
TOTAL (A) |
7967.547 |
7522.180 |
7120.116 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4520.131 |
4042.208 |
3707.309 |
|
|
|
Cost of goods traded |
298.575 |
284.851 |
267.106 |
|
|
|
Changes in inventories of finished goods, work-in-progress |
(323.554) |
(133.619) |
(49.222) |
|
|
|
Employee benefit expense |
602.043 |
536.333 |
505.427 |
|
|
|
Other expenses |
2057.689 |
1905.965 |
1745.145 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
(93.145) |
|
|
|
TOTAL (B) |
7154.884 |
6635.738 |
6082.620 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
812.663 |
886.442 |
1037.496 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
311.790 |
213.110 |
113.420 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
500.873 |
673.332 |
924.076 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
250.372 |
171.485 |
132.144 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
250.501 |
501.847 |
791.932 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
39.951 |
140.336 |
233.816 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
210.550 |
361.511 |
558.116 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
482.671 |
421.732 |
364.188 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend
proposed @ Rs.12.50 per share on the face value of Rs 10/- (125 %) (Previous
year dividend paid @ 125%) |
86.534 |
86.534 |
86.534 |
|
|
|
Tax on Dividend |
14.706 |
14.038 |
14.038 |
|
|
|
Transfer to General Reserve |
30.000 |
200.000 |
400.000 |
|
|
|
|
131.24 |
300.572 |
500.572 |
|
|
BALANCE CARRIED
TO THE B/S |
561.981 |
482.671 |
421.732 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. Basis (inclusive of exports of Export House) |
2851.779 |
3105.423 |
2090.461 |
|
|
|
Others |
31.823 |
24.244 |
12.383 |
|
|
TOTAL EARNINGS |
2883.602 |
3129.667 |
2102.844 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials (including through Canalising Agencies) |
1316.967 |
1103.185 |
1071.113 |
|
|
|
Stores & Components |
74.831 |
10.778 |
4.734 |
|
|
|
Capital Goods |
76.229 |
18.987 |
60.907 |
|
|
TOTAL IMPORTS |
1468.027 |
1132.950 |
1136.754 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
30.41 |
52.22 |
80.62 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.64
|
4.81
|
7.84
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.19
|
6.74
|
11.20
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.03
|
7.39
|
15.30
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.19
|
0.32
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.26
|
0.85
|
0.75
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42
|
1.46
|
1.79
|
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 |
69.227 |
69.227 |
69.227 |
|
Reserves & Surplus |
2371.457 |
2632.396 |
2741.705 |
|
Net
worth |
2440.684 |
2701.623 |
2810.932 |
|
|
|
|
|
|
long-term borrowings |
1037.716 |
1233.222 |
2103.899 |
|
Short term borrowings |
797.665 |
1051.554 |
1443.166 |
|
Total
borrowings |
1835.381 |
2284.776 |
3547.065 |
|
Debt/Equity
ratio |
0.752 |
0.846 |
1.262 |
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 |
7071.156 |
7442.344 |
7852.539 |
|
|
|
5.249 |
5.512 |
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 |
7071.156 |
7442.344 |
7852.539 |
|
Profit |
558.116 |
361.511 |
210.550 |
|
|
7.89% |
4.86% |
2.68% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG-TERM DEBT
Rs. In Millions
|
Particular |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Current maturities
of long-term debt |
|
|
|
|
Secured Loans from
Banks : |
|
|
|
|
HDFC Bank |
96.000 |
40.000 |
0.000 |
|
Export-Import Bank of India |
124.558 |
120.000 |
60.000 |
|
Bank of Maharashtra |
283.598 |
107.804 |
27.504 |
|
Unsecured Loans : |
|
|
|
|
Loans &
Advances from Related Parties : |
|
|
|
|
Intercorporate Deposits |
1.060 |
96.075 |
5.960 |
|
Fixed Deposits |
7.290 |
25.330 |
0.000 |
|
Loans & Advances
from Others : |
|
|
|
|
Fixed Deposits |
31.975 |
114.980 |
6,821 |
|
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 |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
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 |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
ITXAL/1376/2007 |
Failing Date:- |
22/06/2007 |
Reg. No.:- |
ITXA/3751/2009 |
Reg. Date:- |
21/11/2009 |
|
|
|||||||
|
Petitioner:- |
THE COMMISSIONER OF INCOME-PUNE-TAX |
Respondent:- |
SUDARSHAN CHEMICAL INDUSTRIES LIMITED |
||||
|
Petn.Adv:- |
P.S. SAHADEVAN (0) |
Resp. Adv.: |
S. N. INAMDAR (0) |
||||
|
District:- |
PUNE |
||||||
|
|
|||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Admitted (Unready) |
Stage:- |
FOR ADMISSION – FRESH |
||||
|
Last Date:- |
28/09/2011 |
|
|||||
|
Last Coram:- |
HON’BLE SHRI JUSTICE J.P. DEVADHAR HON’BLE SHRI JUSTICE K. K. TATED |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1961 |
Under Section 260A |
|||||
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10421285 |
01/10/2013 * |
300,000,000.00 |
STATE BANK OF
INDIA INDUSTRIAL FINANCE BRANCH |
TARA CHAMBERS, 2ND
FLOOR, NEAR MARIAAI POLICE CHOWKY, OLD PUNE MUMBAI HIGHWAY, WAKDEWADI, PUNE,
MAHARASHTRA - 411003, INDIA |
B86859485 |
|
2 |
10412965 |
01/10/2013 * |
55,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA (EXIM BANK) |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
B86887593 |
|
3 |
10388593 |
26/03/2013 * |
420,000,000.00 |
BANK OF
MAHARASHTRA |
CORPORATE FINANCE
BRANCH, YASHOMANGAL,1183/A,F.C. ROAD, PUNE, MAHARASHTRA - 411005, INDIA |
B71786792 |
|
4 |
10354097 |
28/08/2012 * |
168,500,000.00 |
BANK OF
MAHARASHTRA-LEAD BANK |
CORPORATE
FINANCE BRANCH, YASHOMANGAL", F.C. ROAD, PUNE, MAHARASHTRA - 411005, INDIA |
B57047904 |
|
5 |
10354105 |
28/08/2012 * |
420,000,000.00 |
BANK OF
MAHARASHTRA-LEAD BANK |
CORPORATE
FINANCE BRANCH, YASHOMANGAL", F.C.ROAD, PUNE, MAHARASHTRA - 411005,
INDIA |
B57037905 |
|
6 |
10343836 |
19/03/2012 |
360,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSE
SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA |
B35680594 |
|
7 |
10254591 |
15/12/2010 |
350,000,000.00 |
BANK OF
MAHARASHTRA |
CORPORATE
FINANCE BRANCH, YASHOMANGAL, 1183/A, F.C.
ROAD, PUNE, MAHARASHTRA - 411005, INDIA |
B01306745 |
|
8 |
10254495 |
15/12/2010 |
360,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA (EXIM BANK) |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
B00828087 |
|
9 |
10127480 |
06/03/2009 * |
150,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
A58242629 |
|
10 |
10109661 |
06/03/2009 * |
31,000,000.00 |
BANK OF
MAHARASHTRA |
INDUSTRIAL
FINANCE BRANCH, 'YASHOMANGAL', F.C. ROAD, PUNE, MAHARASHTRA - 411005, INDIA |
A58651514 |
|
11 |
10076795 |
30/10/2007 |
70,000,000.00 |
BANK OF
MAHARASHTRA |
INDUSTRIAL FINANCE
BRANCH, YASHOMANGAL F.C. ROAD, PUNE, MAHARASHTRA - 411005, INDIA |
A27107184 |
|
12 |
80017484 |
28/08/2012 * |
2,850,000,000.00 |
BANK OF
MAHARASHTRA-LEAD BANK |
CORPORATE
FINANCE BRANCH, YASHOMANGAL", F.C.ROAD, |
B57037277 |
* Date of charge modification
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG-TERM
BORROWINGS |
|
|
|
Loans and
Advances from Related Parties: |
|
|
|
Intercorporate Deposits (Note No. i) |
202.510 |
32.045 |
|
Fixed Deposits (Note No. ii) |
16.140 |
7.890 |
|
Loans and
Advances from Others: |
|
|
|
Fixed Deposits |
263.640 |
27.040 |
|
SHORT-TERM
BORROWINGS |
|
|
|
Loan repayable
on demand: |
|
|
|
From Banks |
|
|
|
Short Term Loan (Note Nos. i to v) |
744.453 |
492.109 |
|
Total
|
1226.743 |
559.084 |
Notes:
LONG-TERM
BORROWINGS
i) Intercorporate Deposits
are generally accepted for period of 3 years. Rate of Interest varies from 9 -
11% p.a.
ii) Fixed Deposits are generally accepted for period of 1-3 years. Rate
of Interest varies from 9 - 11.50% p.a.
SHORT-TERM
BORROWINGS
i) Short Term Loan
Rs.140.000 millions (P.Y. Rs.100.000 millions) from State Bank of India carries
interest @ 10.50% p.a. The Loan is repayable within 90 days from the date of
borrowing.
ii) Short Term
Loan Rs.300.000 millions (P.Y. Rs.300.000 millions) from Bank of Maharashtra
carries interest @ 10.25 % p.a. The Loan is repayable within 90 days from the
date of borrowing.
iii) Buyer’s
Credit Loan Rs.205.063 millions (P.Y. Rs.36.466 millions) from HSBC Bank
carries interest @ LIBOR + 195 / 205 and 235 BASIS POINTS p.a. The Loan is
repayable within 180 days from the date of borrowing.
iv) Buyer’s Credit
Loan Rs.43.194 millions (P.Y. Rs.55.642 millions) from CITI Bank carries
interest @ LIBOR + 175 BASIS POINTS p.a. The Loan is repayable within 180 days
from the date of borrowing.
v) Buyer’s Credit
Loan Rs.56.196 millions (P.Y. Rs. Nil) from ICICI Bank carries interest @ LIBOR
+ 170 BASIS POINTS p.a. The Loan is repayable within 180 days from the date of
borrowing.
THE YEAR IN RETROSPECT:
BACKGROUND:
Overall the
business sentiment during the year remained extremely challenging on account of
steep rise in input prices coupled with a slowdown in demand and also delay in
commissioning capacities installed as a part of the on going capital
expenditure.
The Global
Business recessionary conditions continued with Europe and America showing no
signs of a major recovery, impacting exports as well as realizations. A direct
fallout of this on the Company was a major build up in inventory and export
receivables. Interest costs also went up significantly on account of major
capital expenditure undertaken in the last few years. All these factors had an
impact on the Sales and Profitability. Overall it has been a difficult year for
the Company.
Given the
difficult operating conditions, the results achieved for the year ended 31st
March, 2013 are considered to be satisfactory.
(A) SALES:
Total Revenue for
the year ended 31st March, 2013 amounted to Rs.7967.000 millions as
against Rs.7522.000 millions achieved during the previous year. Profit after
tax for the year ended 31st March, 2013 was Rs.211.000 millions as
against Rs.361.000 millions earned during the previous year.
Pigment sales rose
from Rs.6647.000 millions in the previous year to Rs.6966.000 millions in the
year recording a nominal growth of 5%. Profits for the Pigment Division for the
year amounted to Rs.772.000 millions as compared to Rs.869.000 millions of the
previous year.
Pesticides Sales
for the year ended 31st March, 2013 amounted to Rs.885.000 millions
as against Rs.795.000 millions achieved during the previous year recording
growth of 11%. Profits for the Agro Division for the year amounted to Rs.45.300
millions as compared to Rs.34.580 millions of the previous year.
(B) EXPORTS:
The Company’s subsidiaries
in The Netherlands and North America continue to make aggressive efforts to tap
new markets and key customers by offering, among others, customized products at
competitive prices. The
China
Representative Office has been reorganized keeping in mind the market
requirements and customer preferences in the Asia Pacific Region.
The acquisition of
the natural mica based pearlescent business for cosmetics sold under the brand
“Prestige” and “Flonac C“ from Eckart, GmbH and its Affiliates has been well
integrated in the Cosmetic Pigment Products Portfolio and has added more value
to the Exports.
The Company is
continuing with the process of staffing and building an efficient sales and
distribution network, tapping key customers and appointment of key personnel to
increase export penetration. All these measures are expected to give a boost to
exports.
Revenue from
exports for the year ended 31st March, 2013 amounted to Rs.3015.000
millions as against Rs.2746.000 millions for the previous year registering a
growth of 10% over the previous year.
SUBSIDIARY COMPANIES:
During the year,
the Company’s overseas subsidiaries, Sudarshan Europe B.V. and Sudarshan North
America, Inc. have shown better performance in sales and profitability. With
key focus on improving market share the subsidiaries are expected to record
better performance.
The other Indian
Wholly Owned Subsidiary, Prescient Color Limited, has recorded good financial
performance with good growth in Sales and Profit. The domestic slowdown notwithstanding,
indications point to a better performance in the current year.
RECOGNITION:
The Company has
received the following awards:
1. The Company’s
Roha unit has been awarded in 2012 by National Safety Council – Maharashtra
Chapter for achieving –
(a) Longest
Accident Free period in 2011
(b) Lowest
Accident Frequency Rate in 2011
2. Receipt of 5
Star award – Sword of Honour from the British Safety Council for Health and
Safety Management Audit.
3. Receipt of
Awards from the Dyestuffs Manufacturers Association of India (DMAI) for the
year 2012-13 for:
i. Excellent
performance in Pollution Control.
ii. Excellent
performance in Safety and Hazards Control.
iii. Excellent
performance in respect of Export of Pigments of a Large Scale Unit.
4. Conferring of the
Business Leader of the Year for Environment, Leadership and Excellence in 2013
by CHEMTECH.
5. SAP ACE Award
for Customer Excellence, 2012 in the category of “Best Run Award in Supply
Chain in the Indian Subcontinent”.
6. EDGE Award for
Roha plant (Enterprise Driving Growth and Excellence Through IT - SAP-WMS
(Warehouse Management System)).
OUTLOOK FOR THE FUTURE:
The year 2013-14
is expected to be another challenging year. Indications are that the global
economy will grow slightly faster than in the previous year. The Indian economy
is also expected to do better with promising signs of revival in demand and
growth.
The Company aims
to harness its efforts to align more closely with its customers and increase
operational and technological excellence, while reining in costs. Research and
Development will also play a key role in improving competitiveness through
Innovations. The Company’s overseas subsidiaries are also fully geared up and
are expected to play a key role in achieving organizational objectives. Barring
any unforeseen circumstances, the current year’s prospects look to be good.
MANAGEMENT
DISCUSSION AND ANALYSIS 2012-13
Overview
The Global
economic environment continues to be under stress in the background of
recession in Europe, anaemic growth in the United States and a sharp slowdown
in China and in most emerging market economies. The Euro – zone crisis
continues to affect key economies in Central and Eastern Europe. On the other
hand turmoil in the Middle East is causing serious economic risks – both there
and elsewhere, contributing to high oil prices, constraining global growth,
besides fueling inflation.
The Indian Economy
though reasonably insulated from Global downturn continues to battle rising
input costs, adverse foreign exchange situation, high current account deficit
and tight credit conditions all of which have pulled down growth.
Business of the Company
The Company is a
globally renowned player in the Pigment Industry and manufactures a wide range
of Organic and Inorganic Pigments, Effect Pigments, Agro Chemicals and other
products with facilities at Roha and Mahad, District Raigad, Maharashtra. The
Company has also set up an ultra modern R&D Facility at Ambedvet,
Amralevadi, Taluka Mulshi, District Pune, India.
Financial and Operational Performance
The business
environment has been extremely challenging given the recessionary economic
conditions leading to slowdown in global economic growth. Revenues have been
under pressure on account of low demand and unfavourable market conditions.
Profits were also
under tremendous pressure on account of steep rise in input costs on account of
the cascading effect of high inflation owing to a number of factors and
increase in interest costs on account of ongoing capital expenditure coupled
with delay in commissioning and standardization of new capacities. As a result
the Company could not achieve benefits of economies of scale. Of the total
sales revenue of Rs. 7802 Million achieved during the year, 39% is contributed
by export of Pigments.
The Company’s
overseas Subsidiaries viz. Sudarshan Europe BV, Sudarshan North America, Inc.,
step down Subsidiary of Sudarshan, India and Indian Subsidiary, Prescient Color
Limited have posted improved results in the year as can be seen from the
Company’s Consolidated Financial Results. The operations of the Company’s
Representative Office in China have also been revamped to focus on furthering
its interests in the Asia Pacific region.
The certification
of ISO 9001 and ISO 14001 and OHSAS –ISO 18001 from BVQI is a testimony to the
Company’s commitment towards quality, safety and sustainable environment
friendly approach. The Roha and Mahad factories of the Company have received
British Five Star Rating which is a testimony to strenuous efforts taken by the
Company to achieve operational excellence in Environment Health and Safety. The
Company has also well established R & D laboratories recognized by
Department of Scientific and Industrial Research (DSIR). Also, their Labs are
ISO 17025:2001 certified by National Accreditation Board for Testing and
Calibration Laboratories (NABL), Government of India. The Ministry of Science
and Technology, New Delhi, acting on behalf of Government of India has
recognised the Company’s in house R & D Units at Roha, District Raigad and
Ambadvet, Amralevadi, Taluka Mulshi, District Pune for a further period of 4
years i.e. upto 31st March, 2016.
Segmental Overview
In accordance with
Accounting Standard -17, the Company has two reportable business segments, Pigments
and Agro Chemicals.
The pigment
business of the Company mainly comprises manufacturing of High Performance
Pigments and Commodity
Pigments apart
from customized pigments for niche segments catering to domestic and
international customers as also manufacture of Effect Pigments for cosmetics,
coating applications etc.
Agro Chemical business of the Company consists primarily of Products
which are generic in nature.
Segment I – Pigments
Industry Structure and Developments
The Pigment
Industry worldwide is one of the dominant industries with collective revenues
of over USD 5 billion. The growth of the Pigment Industry has more or less
moved in tandem with the growth of Global economy. Growth in per capita income
leading to growth in per capita spending fuels demand for Pigments ranging from
paints to plastics to polymer, ink to cosmetics and more, encompassing every
sphere of life.
The Company is one
of the largest domestic manufacturers of Pigments in India with a 30% market
share. The Pigment Division manufactures a wide range of Organic, Inorganic and
Effect Pigments catering to domestic and
export markets
mainly for paint, inks, plastics, cosmetics, fashion accessories and
automobiles as the user industries. The Company’s Pigments are exported to most
of the discerning markets in Europe, America and Asia. The manufacturing
activity is carried out at Roha and Mahad factories with R&D facilities at
Ambadvet, Amralevadi, Taluka Mulshi, District Pune.
There is an excess
capacity for the manufacture of commodity pigments worldwide. This results in
intense price competition in the commodity segments market. The China factor
also continues to affect the Pigment industry.
Performance
The Pigment
Division increased its sales in the year 2012-13 to Rs.6966.000 millions from
Rs.6647.000 millions in 2011-12, recording an increase of 5% over the previous
year. Sales from exports for the year amounted to Rs.3005.000 millions as
against Rs.2737.000 millions achieved during the previous year recording a
growth of 10%.
Outlook
Sudarshan’s
globalization plans and its already strong base in India provides a great
opportunity for growth. Also
Sudarshan’s
strategy of focusing on High Performance Pigments and specialized Azo Pigments
provide a great future.
The Indian Pigment
Industry has evolved from a basic Pigment producer to that of a knowledge
intensive industry catering to requirement of colorants for all segments. The
domestic demand for Pigments offers opportunity to the Company to improve its
market share. Many new High Performance and Effect Pigments are also being
launched for cosmetic and coating markets. The Company’s strategy of setting up
sales offices to cater to European and North American Customers as also a
representative office in China is expected to give a push to Pigment exports as
the Company is better equipped to understand and comply with their preferences.
As a result of the
slow down in Western markets, end consumers of Pigment Products are on the look
out for alternative suppliers to meet their varied requirements. Sudarshan,
with a wide range of High Performance Pigments as also Effect Pigments, is
ideally placed to meet their requirements.
As a consequence of all these actions, the Company expects better
results during the current year.
Segment II – Agro Chemicals
Industry Development
Unseasonal rains,
unfavourable monsoon and drought in some parts of the country dented the
prospects of the
Indian Agro
Chemical Industry, impacting the consumption of Agro Chemicals. The industry
has also seen a change in the Product mix owing to change in the crop pattern
as also due to change in the pattern of pest formation. The average per hectare
consumption of agrochemicals in India is much lower than consumption in USA,
JAPAN and other developed countries. This augurs well for the Agro Chemical
Industry. Rapid growth in acreage of Bt Cotton hybrids resulting in improvement
in yield of cotton crop is opening new opportunities for more consumption of
pesticides for the control of sucking pests and plant growth nutrients.
India being a
tropical country, the consumption pattern of pesticides is tilted towards
insecticides, accounting for around 58-60% of the crop protection chemical
market. It is followed by herbicides and fungicides at 20% and 18%
respectively.
The Crop
Protection Industry witnessed growing uncertainties owing to variations in the
monsoon spread in some parts of the country, change in climatic conditions,
fluctuation in end product prices due to variable raw material costs as also
unavailability of key raw materials from China. The Industry also witnessed
further slide in the demand for conventional products.
Performance
During the year,
the Agro Division achieved a turnover of Rs. 885 million as against Rs. 795
million made in the previous year thereby recording a growth of 11%.
Notwithstanding the adverse business environment, the Agro Division has managed
to earn reasonable profits for the year. The Company expects to improve
performance by concentrating more on the sale of Technical and Bulk pesticides.
The Agro Chemical
Industry is more than ever subjected to the vagaries of the monsoon and can
impact sale of Agrochemicals. The Company is mainly into the generic segment
which faces cut throat competition from other unorganized and organized players
in the Agro Chemical Industry. This may lead to stagnation in revenues and
bottom line.
Outlook
Notwithstanding
availability constraints of key raw materials and difficult market conditions,
the current year should end on a positive note.
Profile of Promoter Directors:
1. Mr. K.L. Rathi,
Executive Chairman, is B. Sc, B.Sc. (Tech) and M.A.(Chem) from Columbia
University, USA and has been associated with the Company for more than four decades.
Mr. K.L. Rathi is also the Chairman of Roha Manufacturers Association.
2. Mr. P.R. Rathi,
Vice Chairman and Managing Director, is MS in Chemical Engineering from MIT,
USA and MBA from Columbia University, USA and has been associated with the Company
for more than three decades.
3. Mr. R.B. Rathi,
Director, is B.E. Mech. Engg from MIT, Pune, B.S. Chem. Engg. from Ohio
University USA and M.B.A. from Pittsburgh University, USA. Mr. R.B. Rathi has
been associated with the Company for the past two decades.
4. Mr. N.J. Rathi, Non Executive Director, is M.Com from University of
Pune and M.B.A. from USA.
Profile of Non-Executive Independent Directors:
1. Mr. B.S. Mehta,
is a Fellow Member of the Institute of Chartered Accountants of India. Mr. B.S.
Mehta is Senior
Partner of Bansi
S. Mehta and Co., a firm of Chartered Accountants. Mr. B.S. Mehta is also on
the Board of several other Companies.
2. Mr. S.N.
Inamdar, is a leading advocate and an expert in Income Tax matters. Mr. S.N.
Inamdar is also on the Board of several other Companies.
3. Mr. P.P.
Chhabria Mr. P.P. Chhabria is the original Promoter of Finolex companies coming
under Finolex Group. Mr. P.P. Chhabria is also on the Board of several other
Companies.
4. Mr. D.N.
Damania is B.E Mechanical Engineering from Pune University and a renowned
technocrat. Mr. D.N. Damania is also on the Board of several other Companies.
5. Mr. S.
Padmanabhan is M.Sc. (Physics) from Delhi University and Bachelor of General
Law from Mumbai University. Mr. S. Padmanabhan has a diploma in Development
Economics from University of Cambridge, U.K. and a Diploma in Management
Accounting from Bajaj Institute of Management, Mumbai. A former IAS Officer,
Mr. S. Padmanabhan has wide experience in industrial projects, finance and
administration. Mr. S. Padmanabhan is also on Board of several other Companies.
6. Mr. S.K. Asher
is a Fellow member of the Institute of Chartered accountants of India and
Commerce and Law graduate from the Bombay University. Mr. Sanjay Asher is
senior partner of Crawford Bayley and Company, Mumbai and is also on the Board
of several other Companies.
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS
ENDED 31ST DECEMBER, 2013
(Rs. in millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Nine
Months Ended |
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
|
PART I |
|
|
|
|
1 |
Income
from operations |
|
|
|
|
|
(a) Net
sales/income from operations (Net of excise duty) |
2415.720 |
2701.340 |
7564.140 |
|
|
(b) Other
operating income |
14.980 |
9.780 |
32.390 |
|
|
Total
income from operations (net) |
2430.700 |
2711.120 |
7596.530 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost
of materials consumed |
1443.890 |
1517.880 |
4228.660 |
|
|
(b)
Purchases of stock-in-trade |
58.350 |
109.990 |
244.400 |
|
|
(c)
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(85.970) |
(59.770) |
(48.050) |
|
|
(d)
Employee benefits expense |
165.210 |
169.850 |
503.510 |
|
|
(e)
Depreciation and amortisation expense |
90.190 |
87.750 |
264.250 |
|
|
(f) Other
expenses |
513.270 |
651.200 |
1702.970 |
|
|
Total
expenses |
2184.940 |
2476.900 |
6895.780 |
|
3 |
Profit / (Loss) from operations before other
income, finance costs and exceptional items (1 - 2) |
245.760 |
234.220 |
700.750 |
|
4 |
Other
income |
3.830 |
(8.850) |
14.830 |
|
5 |
Profit /
(Loss) from ordinary activities before finance costs and exceptional items (3
+ 4) |
249.590 |
225.370 |
715.580 |
|
6 |
Finance
costs |
105.330 |
88.530 |
292.470 |
|
7 |
Profit / (Loss) from ordinary activities after
finance costs but before exceptional items (5 - 6) |
144.260 |
136.840 |
423.110 |
|
8 |
Exceptional
items |
-- |
-- |
-- |
|
9 |
Profit /
(Loss) from ordinary activities before tax (7 + 8) |
144.260 |
136.840 |
423.110 |
|
10 |
Tax
expense |
63.710 |
34.180 |
130.720 |
|
11 |
Net Profit
/ (Loss) from ordinary activities after tax (9 - 10) |
80.550 |
102.660 |
292.390 |
|
12 |
Extraordinary
items (net of tax expense) |
-- |
-- |
-- |
|
13 |
Net Profit
/ (Loss) for the period (11 - 12) |
80.550 |
102.660 |
292.390 |
|
14 15 |
Paid-up equity share capital (Face Value Rs. 10/-
per share) Reserve excluding Revaluation Reserves as per balance sheet of
previous accounting year |
69.230 |
69.230 |
69.230 |
|
16 i |
Earnings per
share (before extraordinary items) (of
Rs.10/- each) (not annualised): |
|
|
|
|
|
Basic and
Diluted |
11.64 |
14.83 |
42.24 |
|
16 ii |
Earnings
per share (after extraordinary items) (of
Rs.10/- each) (not annualised): |
|
|
|
|
|
Basic and
Diluted |
11.64 |
14.83 |
42.24 |
|
|
PART II |
|
|
|
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1 |
Public
shareholding |
|
|
|
|
|
- Number
of shares |
3,261,099 |
3,261,723 |
3,261,099 |
|
|
-
Percentage of shareholding |
47.11 |
47.12 |
47.11 |
|
2 |
Promoters and Promoter Group Shareholding a)
Pledged / Encumbered |
|
|
|
|
|
- Number
of shares |
-- |
-- |
-- |
|
|
-
Percentage of shares (as a % of the total
shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
|
- Percentage
of shares (as a % of the total share
capital of the company) |
-- |
-- |
-- |
|
|
b) Non -
encumbered |
|
|
|
|
|
- Number
of shares |
3,661,626 |
3,661,022 |
3,661,626 |
|
|
-
Percentage of shares (as a % of the total
shareholding of the Promoter and Promoter group) |
100.00 |
100.00 |
100.00 |
|
|
-
Percentage of shares (as a % of the total
share capital of the company) |
52.89 |
52.88 |
52.89 |
|
|
Particulars |
3 Months Ended 31st December. 2013 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning
of the quarter |
NIL |
|
|
Received during the
quarter |
NIL |
|
|
Disposed of during the
quarter |
NIL |
|
|
Remaining unresolved at
the end of the quarter |
NIL |
STANDALONE SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER
CLAUSE 41 OF THE LISTING AGREEMENT
(Rs. in millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Nine Months Ended |
Quarter Ended 30.06.2013 |
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
||
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Segment Revenue |
|
|
|
|
|
a) Pigments |
2223.220 |
2349.510 |
6727.590 |
|
|
b) Agro Chemicals |
207.480 |
361.610 |
868.940 |
|
|
Total : |
2430.700 |
2711.120 |
7596.530 |
|
|
Less : Inter segment
revenue |
-- |
-- |
-- |
|
|
Net sales/income from
operations |
2430.700 |
2711.120 |
7596.530 |
|
2 |
Segment Results - Profit / (Loss) before
tax and finance cost from segment : |
|
|
|
|
|
a) Pigments |
299.860 |
224.860 |
822.570 |
|
|
b) Agro Chemicals |
17.330 |
42.500 |
69.140 |
|
|
Total: |
317.190 |
267.360 |
891.710 |
|
|
Less : (i) Finance cost |
105.330 |
88.530 |
292.470 |
|
|
(ii) Other un-allocable
expenditure (Net of un-allocable
income) |
67.600 |
41.990 |
176.130 |
|
|
|
|
|
|
|
|
Profit before Tax : |
144.260 |
136.840 |
423.110 |
|
3 |
Capital Employed (Segment Assets - Segment
Liabilities) : |
|
|
|
|
|
a) Pigments |
5385.500 |
5420.890 |
5385.500 |
|
|
b) Agro Chemicals |
151.660 |
128.300 |
151.660 |
|
|
c) Unallocated |
1129.420 |
1174.450 |
1129.420 |
|
|
Total Capital Employed : |
6666.580 |
6723.640 |
6666.580 |
Notes:
1.
The above unaudited financial results were reviewed
by the Audit Committee and approved by the Board of Directors at their meeting
held on 7th February 2014
2.
The "Limited Review" of the financial
results for the quarter ended 31st December, 2013 pursuant to Clause
41 of the listing agreement, has been carried out by statutory auditors
3.
Previous period's/year's figures have been
regrouped wherever necessary to conform to the current period's classification.
CONTINGENT LIABILITIES NOT PROVIDED FOR (AS ON
31.03.2013):
(a) Excise Duty –
Rs.8.489 millions.
(b) Corporate
Guarantee issued on behalf of the wholly owned subsidiary company Prescient
Color Limited – Rs. Nil.
(c) Corporate
Guarantee issued on behalf of Sudarshan North America, Inc., wholly owned
subsidiary company of Sudarshan Europe B.V. – USD 3,000,000.
(d) Income Tax –
Rs.28.863 millions.
(e) Sales Tax – Rs.6.177 millions.
FIXED ASSETS
Tangible Assets
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Plant and Machinery
·
Vehicles
·
Furniture and Fixtures
·
Office Equipments
Intangible Assets
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.02 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.85.02 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
53 |
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.