MIRA INFORM REPORT
|
Report Date : |
11.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
NITTA GELATIN INDIA LIMITED
(w.e.f 11.08.2008) |
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Formerly Known
As : |
KERALA CHEMICALS AND PROTIENS LIMITED |
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Registered
Office : |
Post Bag No. 4262, 54/1446, Panampilly Nagar P. O., Kochin - 682 036,
Kerala |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
30.04.1975 |
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Com. Reg. No.: |
09-002691 |
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Capital Investment
/ Paid-up Capital : |
Rs. 90.792 Millions |
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CIN No.: [Company Identification
No.] |
L24299KL1975PLC002691 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHNK00559G |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited
Liability Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business
: |
The company is engaged in the business of manufacture and sale of Gelatin,
Ossein, DCP and Collagen Peptide. |
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No. of Employees
: |
380 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
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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 4764000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a joint venture between “Kerala State Industrial
Development Corporation (32%) and NGI (43%).” It is a well-established company having fine track record. Financially
company appears to be strong. Liquidity position is good. Management has reported a loss from its operations during FY 14. However, trade relations are reported to be fair. Business is active.
Payments are reported to be regulars and as per commitments. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating : A- |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
10.10.2014 |
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Rating Agency Name |
CRISIL |
|
Rating |
Short term rating : A2+ |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
10.10.2014 |
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON – COOPERATIVE (91-484-2317805)
LOCATIONS
|
Registered Office : |
Post Bag No. 4262, 54/1446, Panampilly Nagar P. O., Kochin - 682 036,
Kerala, India |
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Tel. No.: |
91-484-2317805/3099444 |
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Fax No.: |
91-484-2310568 |
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E-Mail : |
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Website : |
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Factory 1 : |
Ossein
Division Post Box 3109, PO Kathikudam,
Koratty, Thrissur-680 308, |
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Tel. No.: |
91-480-2719490, 2719598/99 |
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Fax No.: |
91-480-2719943 |
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E-Mail : |
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Factory 2 : |
Gelatin Division Kinfra Export Promotion Industrial Parks Limited, P.B. No.
3109, Kusumagiri, Kakkanad, Kochi-682 030, Kerala, India |
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Tel. No.: |
91-484-2415506, 2415138/39 |
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Fax No.: |
91-484-2415504 |
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E-Mail : |
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Branch : |
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DIRECTORS
As on 31.03.2014
|
Name : |
Mr. P. H. Kurian,, IAS |
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Designation : |
Chairman |
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Date of Appointment : |
16.02.2012 |
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Name : |
Mr. Yoshifumi Matsumoto |
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Designation : |
Director |
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Name : |
Mr. Norimichi Soga (Keiji Suzuki-Alternate Director) |
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Designation : |
Director |
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Qualification : |
Majored in faculty of Textile Science from Kyoto Institute of Technology |
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Date of Appointment : |
14.05.2005 |
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Name : |
Mr. T Yamaki |
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Designation : |
Director |
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Date of Appointment : |
11.05.2009 |
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Name : |
Mr. Hiroshi Takase |
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Designation : |
Director |
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Date of Appointment : |
09.08.2011 |
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Name : |
Mr. K Ramakrishnan |
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Designation : |
Director |
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Date of Appointment : |
16.04.1997 |
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Name : |
Mr. A K Nair |
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Designation : |
Director |
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Date of Birth/Age : |
68 Years |
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Qualification : |
B.Sc., Engineering, MBA |
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Date of Appointment : |
28.06.2008 |
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Name : |
Mr. K L Kumar |
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Designation : |
Director |
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Date of Appointment : |
08.12.2003 |
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Name : |
Mr. T. P. Thomaskutty |
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Designation : |
Director |
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Name : |
Mr. Sajiv k. Menon |
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Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. G R Kurup |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2862220 |
31.53 |
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|
2862220 |
31.53 |
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|
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|
3900300 |
42.96 |
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|
3900300 |
42.96 |
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Total shareholding of Promoter and Promoter Group (A) |
6762520 |
74.48 |
|
(B) Public Shareholding |
|
|
|
|
|
|
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|
4239 |
0.05 |
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|
6332 |
0.07 |
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|
10571 |
0.12 |
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|
197416 |
2.17 |
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|
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|
1713438 |
18.87 |
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|
265749 |
2.93 |
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|
129466 |
1.43 |
|
|
8262 |
0.09 |
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|
98250 |
1.08 |
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|
22954 |
0.25 |
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|
2306069 |
25.40 |
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Total Public shareholding (B) |
2316640 |
25.52 |
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Total (A)+(B) |
9079160 |
100.00 |
|
(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 |
|
Total (A)+(B)+(C) |
9079160 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the business of manufacture and sale of
Gelatin, Ossein, DCP and Collagen Peptide. |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
GENERAL INFORMATION
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Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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No. of Employees : |
380 (Approximately) |
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Bankers : |
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Facilities : |
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Banking Relations
: |
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Auditors : |
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Name : |
Varma
and Varma Chartered Accountants |
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Address : |
Ernakulam, |
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Enterprise having
substantial interest in the Company: |
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Subsidiary of Nitta
Gelatin Inc: |
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Subsidiary Company: |
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Associate Company: |
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CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9079160 |
Equity Shares |
Rs. 10/- each |
Rs. 90.792 Millions |
Reconciliation of shares at the beginning and at the end of the
financial year
|
Particulars |
Number
of Shares |
Rs. In Millions |
|
|
|
|
|
As at the beginning of the financial year |
8400000 |
84.000 |
|
Add : Issue of Bonus shares |
579160 |
5.792 |
|
Add : Issue of shares under ESPS Scheme |
100000 |
1.000 |
|
As at the end of the financial year |
9079160 |
90.792 |
As the company had to increase its Minimum Public Shareholding (MPS) to 25% as required under the Securities Contracts Regulations (Rules) 1957, the Board including nominees of both the promoters, unanimously recommended allotment of 100,000 equity shares of the company to employees under an Employee Stock Purchase Scheme (ESPS) at Rs 50/- per equity share of face value of Rs 10/ each, and also issue of Bonus shares, in the ratio 1:3 shares (579,160 Equity shares) only to the public shareholders, excluding the promoters. The said recommendation was considered and approved by shareholders at the Extra Ordinary General Meeting (EGM) (attended by the nominees of the promoter shareholders) held on 29th May 2013. The record date for bonus issue fixed as 20th June 2013, was communicated to the Bombay Stock Exchange (BSE) and the equity shares started trading “ex –bonus” with effect from the said date. In line with the resolution of EGM, as above, the company allotted 579,160 Bonus shares to public shareholders only by capitalisation of general reserves and 100,000 shares under the ESPS. The excess of market price of the share , over the price at which they are issued under the ESPS amounting to Rs 12,5 90,000 (Nil) has been treated as employee benefit expense with corresponding credit to the securities premium reserve in accordance with the applicable SEBI guidelines. On 17th June 2013, one of the promoter shareholders M/s Kerala State Industrial Development Corporation (KSIDC) informed the company their inability to forego its right to bonus shares and consequently the other promoter shareholder Nitta Gelatin Inc, Japan also declined to forgo their right to the bonus shares. In view of the said request the company informed BSE of its intention to partially modify the earlier EGM resolution dated 29th May, 2013, to allot bonus shares to the two Promoters as above also, subject to applicable approvals. Subsequently, the Board in their meeting dated 5th July 2013 recommended to the shareholders to issue bonus shares in the ratio of 1:3 to both the Promoter shareholders, in partial modification of EGM resolution dated 29th May 2013 and subject to necessary approvals, and also to allot further shares under the ESPS Scheme to its employees to ensure compliance of MPS even after the issue of bonus shares as above. This recommendation of the Board was approved in the adjourned EGM held on 24th August 2013 adopting a special resolution in partial modification of the resolution in EGM dated 29th May 2013, to allot 2,254,173 Bonus shares to Promoter shareholders and 696,667 shares to employees under ESPS scheme at Rs. 25/- per equity share of face value of Rs.10/- each, subject to the approval of SEBI and other applicable authorities.
On 19th August 2013 the company sought an in-principle approval for listing equity shares to be issued to the promoter shareholders and to employees under ESPS as per resolution proposed at the EGM on 24-08-13 .The BSE advised the company by email dated 27th August 2013 to seek condonation of delay from SEBI under Regulation 95(2) regarding Bonus issue, under SEBI (ICDR) Regulations, 2009 and this application was made to SEBI on 31st August 2013 seeking condonation of the delay in allotment of Bonus shares to the promoters and for retaining 20th June 2013 as the record date for the Bonus issue . SEBI in their letter dated 14th February 2014 declined to accede to the request of the company to allot Bonus shares to the promoter shareholders also on the ground that the interest of investors including those who traded in shares of the company based on the resolution passed at the EGM held on 29-05-2013, would be adversely affected.
Under the circumstances the company is unable to act on the resolution passed at the EGM held on 24-08-2013 and to allot 2,254,173 Bonus shares to Promoter shareholders (in the ratio 1:3) and 696,667 shares to employees under ESPS scheme as per resolutions adopted therein and hence no adjustment in this regard is made in the accounts for the year ending 31.03.2014. The company was legally advised that none of the preconditions of the Companies Act or the relevant provisions regarding Bonus issue under Chapter IX (Regulation 92 to 95 of the SEBI (ICDR) Regulation 2009), have been breached in the present case and even the decision to issue Bonus shares to the promoter shareholders was unanimously approved by public shareholders present in the EGM held on 24th August 2013, and the Promoter shareholders present in the meeting had abstained from voting on the resolution and SEBI is empowered to condone the delay, under Regulation 95(2) of 2009 and no provisions of the Companies act , 1956 would stand violated if partial modification as sought by the company as above was allowed and condonation as sought was granted by SEBI. The company has fi led an appeal against the order of SEBI as above before Securities Appellate Tribunal (SAT) and is hopeful that the matter will be resolved to the best interest of all at the earliest.
Particulars of
Shareholders holding more than 5% share in the Company
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Nitta
Gelatin Inc, |
3900300 |
42.96% |
|
Kerala
State Industrial Development Corporation Limited |
2862220 |
31.52% |
Terms/ Rights
attached to Equity Shares
The company has only one class of shares referred to as equity shares with a face value of Rs. 10/- each. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed/declared by the Board of Directors is subject to approval/regularisation of the shareholders’ in the ensuing Annual General Meeting. 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, in proportion to the number of equity shares held by the shareholders
Aggragate number of
Equity shares allotted as fully paid up by way of Bonus shares during the
period of 5 years immediately preceding the reporting date
|
Name of
Shareholder |
Number
of Shares |
|
Equity shares allotted as fully paid Bonus shares by capitalisation of reserves |
0.579 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
90.792 |
84.000 |
84.000 |
|
(b) Reserves & Surplus |
1063.470 |
1107.049 |
985.744 |
|
(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) |
1154.262 |
1191.049 |
1069.744 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
89.976 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
36.004 |
65.688 |
65.411 |
|
(c) Other long term
liabilities |
17.379 |
16.243 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
10.887 |
|
Total
Non-current Liabilities (3) |
143.359 |
81.931 |
76.298 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
427.155 |
420.053 |
364.033 |
|
(b) Trade payables |
321.377 |
214.451 |
216.245 |
|
(c) Other current liabilities |
31.865 |
19.376 |
13.949 |
|
(d) Short-term provisions |
24.691 |
89.431 |
57.393 |
|
Total
Current Liabilities (4) |
805.088 |
743.311 |
651.620 |
|
|
|
|
|
|
TOTAL |
2102.709 |
2016.291 |
1797.662 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
809.713 |
672.791 |
680.855 |
|
(ii) Intangible Assets |
6.147 |
6.633 |
5.923 |
|
(iii) Capital work-in-progress |
84.024 |
84.247 |
64.033 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
323.653 |
323.653 |
84.640 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
13.581 |
16.890 |
239.742 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
1237.118 |
1104.214 |
1075.193 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
517.781 |
533.201 |
432.472 |
|
(c) Trade receivables |
221.310 |
260.624 |
175.209 |
|
(d) Cash and cash equivalents |
10.271 |
13.256 |
13.801 |
|
(e) Short-term loans and
advances |
60.198 |
46.567 |
49.050 |
|
(f) Other current assets |
56.031 |
58.429 |
51.937 |
|
Total
Current Assets |
865.591 |
912.077 |
722.469 |
|
|
|
|
|
|
TOTAL |
2102.709 |
2016.291 |
1797.662 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
2892.429 |
3062.211 |
2458.095 |
|
|
Other Income |
1.174 |
27.550 |
11.317 |
|
|
TOTAL
(A) |
2893.603 |
3089.761 |
2469.412 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
1524.921 |
1482.601 |
1324.776 |
|
|
Purchases of Stock-in-Trade |
9.922 |
18.525 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(68.291) |
(90.784) |
(1.954) |
|
|
Employees benefits expense |
196.593 |
198.839 |
154.192 |
|
|
Other expenses |
1137.866 |
1058.251 |
776.646 |
|
|
TOTAL
(B) |
2801.011 |
2667.432 |
2253.660 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
92.592 |
422.329 |
215.752 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
59.356 |
63.582 |
60.662 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
33.236 |
358.747 |
155.090 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
106.341 |
97.446 |
89.742 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(73.105) |
261.301 |
65.348 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
(23.513) |
105.471 |
14.541 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
(49.592) |
155.830 |
50.807 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Interim Dividend |
0.000 |
33.600 |
33.600 |
|
|
Final Dividend |
0.000 |
5.700 |
5.400 |
|
|
Tax on Dividend |
0.000 |
15.600 |
5.100 |
|
|
Transfer to General Reserve |
178.600 |
77.700 |
71.000 |
|
|
Balance
Carried to the B/S |
129.000 |
178.600 |
77.700 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
Export of goods calculated on FOB basis |
1629.611 |
1562.093 |
1382.938 |
|
|
Commission Earnings |
0.000 |
0.000 |
0.033 |
|
|
TOTAL
EARNINGS |
1629.611 |
1562.093 |
1382.971 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
43.811 |
74.775 |
8.457 |
|
|
Traded Gelatin |
9.922 |
18.525 |
0.000 |
|
|
Packing Materials |
2.603 |
1.100 |
2.012 |
|
|
Components, Stores and Spares |
9.681 |
4.958 |
7.303 |
|
|
Capital Goods |
8.002 |
2.929 |
11.143 |
|
|
TOTAL
IMPORTS |
74.019 |
102.287 |
28.915 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
(5.47) |
17.35 |
6.05 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin PAT/ Sales |
(%) |
(1.71) |
5.09 |
2.07 |
|
|
|
|
|
|
|
PBIDT / Sales |
(%) |
3.20 |
13.79 |
8.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.31) |
16.25 |
3.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.06) |
0.22 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.45 |
0.35 |
0.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.08 |
1.23 |
1.11 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
84.000 |
84.000 |
90.792 |
|
Reserves & Surplus |
985.744 |
1107.049 |
1063.470 |
|
Net
worth |
1069.744 |
1191.049 |
1154.262 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
89.976 |
|
Short term borrowings |
364.033 |
420.053 |
427.155 |
|
Total
borrowings |
364.033 |
420.053 |
517.131 |
|
Debt/Equity
ratio |
0.340 |
0.353 |
0.448 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2458.095 |
3062.211 |
2892.429 |
|
|
|
24.577 |
(5.544) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2458.095 |
3062.211 |
2892.429 |
|
Profit |
50.807 |
155.830 |
(49.592) |
|
|
2.07% |
5.09% |
(1.71%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
NOTE: Registered office of the company has been
shifted from 50/1002, Panampilly Nagar, Ernakulam – 682036, Kerala, India to the present address.
PERFORMANCE
The Company is operating an Ossein plant at Koratty, Trichur District, Kerala for the past thirty fi ve years. This plant manufactures Ossein for export as well as for captive consumption in their Gelatin plant at Ernakulam District, Kerala. The Ossein and Gelatin plants of the company are being operated strictly in compliance with all the standards / directives prescribed by the statutory authorities including the State Pollution Control Board. The Kadukutty Panchayat in Trichur District, where the Ossein plant is situated, has not renewed their factory licence for the year commencing from 01.04.2011 onwards without any valid reason. Therefore the Company moved the Hon’ble High Court of Kerala seeking renewal of factory licence. The matter is currently pending before the said court and the unit is in operation.
There was an incidence of a few dead fish being found in Chalakkudy river in the vicinity of their Ossein plant during end May, 2013. A group of activists have alleged that the said fish death is on account of the pollution caused due to the discharge of poisonous effluents by their Ossein plant into the river. As a fall-out of this false propaganda, a series of demonstrations, hartal, etc. were staged against the Ossein plant. The agitating group also blocked both the in-bound and out-bound pipelines thereby restricting the flow of inlet water and treated effluent from the plant. Moreover, they often blocked the free movement of men and materials as well. Throughout this period, the Company has moved all the concerned authorities to reach an amicable solution for this totally baseless agitation. In the writ petition filed by the Company in this regard, the Hon’ble High Court of Kerala vide their order dated 03.12.2013 decreed the smooth functioning of the Ossein plant, effective police protection and directions to the agitators against causing obstructions for the smooth functioning of the Company / damage to its installations, pipes and other properties. The Hon’ble Court has also directed the National Environmental Engineering Research Institute (NEERI), a constituent laboratory of the Council of Scientific and Industrial Research, Govt. of India to conduct a detailed study into the pollution status with respect to the Air, Water and Solid waste generated from the Ossein plant and the adequacy and efficacy of the pollution control measures installed by the Company. The Company is also under directions to implement the recommendations made by NEERI, within the time limit to be specified in this regard. The said study by NEERI is currently going on and the report of their study is awaited. Based on the directives of the Hon’ble Court, the Ossein plant has resumed normal operations from end Dec’ 2013 onwards. The aforesaid interruptions at Ossein Division has reasoned about 30% reduction in production of both Ossein and Dicalcium Phosphate. On account of the shortage of production of Limed Ossein at Ossein Plant, the raw material for Gelatin, there was a decline in production at Gelatin Division also.
As a fall-out of the above, the gross revenue from operations has declined by 5.53% from Rs. 3146.100 Millions in 2012-13 to Rs. 2972.300 Millions in 2013-14. In USD terms, the price realization for normal Ossein during 2013-14 was lower by 4% from the previous year. In respect of Gelatin, the average export price during the year has gone up by 6% in USD terms compared to previous year. USD/ INR Exchange rate movement for the year was favourable for the Company. Gelatin domestic sales realization has also witnessed an increase of 14% over the previous fiscal. For Collagen Peptide, there has been an increase of 9% in sales realization. DCP prices witnessed a decline of 1% during the year from the previous financial year.
Almost all the major Gelatin manufacturers in the country were operating to their full capacities during 2013-14 resulting in high demand for crushed bone. Besides, Meat-cum-Bonemeal, a product out of cattle bone, used as a poultry feed ingredient, was also in good demand during the period. This in turn has resulted in considerable quantity of crushed bone being diverted for the production of Meat-cum-Bonemeal further increasing the demand for crushed bone. These factors have resulted in the market price for crushed bone moving up by almost 23% during 2013-14. Apart from the poor economies of operating the Ossein plant at below-normal capacities and the incremental costs associated with crushed bone price escalation, the company had to incur additional expenditure on repairs and maintenance to comply with the various customer audit requirements, strengthening security in the
wake of agitations against Ossein Division, loss on account of forward exchange contracts, etc. which together caused the Company to post a pre-tax net loss of Rs. 7310.500 Millions during 2013-14 as against a pre-tax net profit of Rs. 26130.100 Millions during 2012-13.
There is appreciable demand for all the products of the company both in the export and domestic markets. The entire sale of Ossein was for exports and in the case of Gelatin, 54% of the total sales were for export to around 30 countries. The regular demand for the products give credence to the company’s ability to keep growing in the
competitive Gelatin / Collagen Peptide market as they continuously respond to the changes in customer preferences.
AWARDS AND ACCOLADES
The company received the top export award in Ossein and Gelatin panel instituted by CAPEXIL for the year 2011-12.
The following are the noteworthy certifications retained by the company.
(a) European Directorate for the Quality of Medicines and Health (EDQM) Certifi cate for Gelatin Division
(b) HACCP Certifi cate for Ossein Division and Gelatin Division for food safety.
(c) ISO 14001:2004 for Gelatin Division for Environment Management System
(d) ISO 9001 for Quality Management System of the Company.
(e) Halal / Kosher Certifi cation for Gelatin and Collagen Peptide
(f) NABL Accreditation for in-house laboratory
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT
Economic development and population growth in emerging economies, more particularly in the Asian region, are expected to give further boost to the Gelatin and Collagen Peptide market. This apart, the growing use of Gelatin in applications such as food and beverage, pharmaceuticals and nutraceuticals also contributes to the growth of Gelatin and its derivatives. As a combined effect of all these, global Gelatin consumption is forecast to reach 3.96 lakh MT by the year 2017 from 3.71 MT in 2012. The company with pioneering expertise in Gelatin manufacture under technical collaboration with M/s. Nitta Gelatin Inc., Japan holds a pivotal position in the global Gelatin industry scenario.
OUTLOOK
By 2020, pharmaceutical market is anticipated to more than double to USD 1.30 trillion, with countries such as Brazil, China, India, Indonesia, Russia and Turkey accounting for one fifth of the global pharmaceutical sales. On the export front, Indian pharma exports stood at USD 14.70 billion in 2012-13, registering a growth rate of 11%. India plans to increase its total exports to USD 25 billion by 2016. In regard to the domestic demand for Gelatin, the Government of India has announced a list of measures, including the proposed enhancement of public expenditure on healthcare to 2 to 3% of GDP, up from the current level of 1%. In the backdrop of the above, the outlook for Gelatin market is expected to be attractive in the current year.
In the peptide business, they have increased their production capacity in tandem with the global demand pattern. The global Collagen Peptide market was valued at USD 648 million in 2012 and is expected to reach USD 892 million in 2017 at a CAGR of 6.6% between 2012 and 2017. Asia continues to be the mainstream market for Collagen Peptide followed by North America, where there is a strong sentiment about the beauty benefits of Collagen Peptide. Emerging markets such as Latin America, India, China and the Middle East show potential for further penetration. With a steady demand for all poultry products, the demand for DiCalcium Phosphate, the by-product, is also expected to be steady. Sale of agri-products, Nutrigold and Secondary proteins has witnessed a healthy growth in the last fiscal which is expected to continue.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Short-term
borrowings |
|
|
|
Loan from Related Party |
0.000 |
29.060 |
|
Total |
0.000 |
29.060 |
|
Note: Unsecured loan from Related Party is repayable on demand. |
||
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10458646 |
06/03/2014 * |
55,000,000.00 |
CANARA BANK |
ERNAKULAM SOUTH
BRANCH, CHITTOOR ROAD, COCHIN, KE |
C00762674 |
|
2 |
90020813 |
25/07/2005 |
53,000,000.00 |
STATE BANK OF TRAVANCORE |
PANAMPILLY NAGAR BRANCH,ERNAKULAM, KERALA - 682036, INDIA |
- |
|
3 |
90017556 |
20/03/2014 * |
268,000,000.00 |
CANARA BANK |
CANARA BANK, CHITTOOR ROAD, COCHIN, KERALA - 682016, INDIA |
C02937555 |
|
4 |
90016886 |
27/03/2013 * |
487,100,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH,
FIRST FLOOR, VANKARATH TOWERS, BY-PASS JUNCTION, PADIVATTOM, ERNAKULAM,
KERALA |
B75406389 |
* Date of charge modification
FIXED ASSETS
Tangible Assets
- Land and Development
- Buildings
- Plant & Equipment
- Offi ce Equipments
- Furniture & Fittings
- Vehicles
Intangible Assets
- Software
PRESS RELEASES
SUSPECTED LEFT EXTREMISTS DAMAGE NITTA GELATIN OFFICE
NOVEMBER 10, 2014
A nine-member group, suspected to be belonging to some Left extremist group, attacked a Gelatin manufacturing company at Panampilly nagar this morning damaging glass walls and vehicles parked inside the compound, police said.
The incident took place at around 8.30 AM, police said.
The men with their faces covered and carrying iron pipes barged into the
corporate office of Nitta Gelatin India Limited and broke the glass walls using
iron pipes and damaged cars parked inside the compound, Ernakulam Range IGP M R
Ajit Kumar told reporters.
Some computers of the office were also destroyed by the attackers.
The men were clad in jeans and pants. One of them spoke in Malayalam and another in Hindi.
Police has sounded alert at all travel points, bus depots and railways
stations.
According to the security guard, the men were raising Maoist slogans. They also
left behind a letter written in Malayalam stating that there is a need to take
action against the company as it was causing pollution.
City Police commissioner has formed a team, including members from state
intelligence, to jointly inquire into the incident.
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.61.45 |
|
|
1 |
Rs.97.76 |
|
Euro |
1 |
Rs.76.68 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.