MIRA INFORM REPORT

 

 

Report No. :

303921

Report Date :

20.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SUDARSHAN CHEMICAL INDUSTRIES LIMITED

 

 

Registered Office :

162, Wellesley Road, Pune – 411 001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

19.02.1951

 

 

Com. Reg. No.:

11-008409

 

 

Capital Investment / Paid-up Capital :

Rs.69.227 Millions

 

 

CIN No.:

[Company Identification No.]

L24119PN1951PLC008409

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNES06998F

NGPS01977D

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing and Selling of Organic and Inorganic Pigments, Intermediates and Agro Chemicals.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

 

Maximum Credit Limit :

USD 8700000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

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

 

The rating reflects company’s healthy financial risk profile marked by adequate liquidity position and decent profitability margins of the company.

 

Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Term Loan: A (Suspended)

Rating Explanation

Adequate degree of safety and low credit risk.

Date

January, 2015

 

 

Rating Agency Name

ICRA

Rating

Non Fund Based Limits: A1 (Suspended)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

January, 2015

 

Note :

Reason for suspensions absence of requisite information 

 

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.

 

 

LOCATIONS

 

Registered Office/ Global Head Office :

162, Wellesley Road, Pune – 411 001, Maharashtra, India

Tel. No.:

91-20-26058888

Fax No.:

91-20-26058222

E-Mail :

shares@sudarshan.com

contact@sudarshan.com

Website :

www.sudarshan.com

 

 

Factory 1 :

46, MIDC Estate, Dhatav, Roha, District Raigad – 402 116, Maharashtra, India

 

 

Factory 2 :

Plot No.A-19/1+2, MIDC Estate, Mahad, District Raigad – 402 301, Maharashtra, India

 

 

Factory 3 :

R and D Laboratory, Ambadvet, Amralevadi, Taluka Mulshi, District Pune, Maharashtra, India

 

 

Branch Office :

Located at

 

  • Bangalore
  • Kolkata
  • Ahmedabad
  • Delhi
  • Guntur

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mr. K.L. Rathi

Designation :

Executive Chairman

Date of Birth/ Age :

75 Years

Qualification :

B. Sc, B.Sc.(Tech) M.A. (Chem) (Columbia)

Experience :

50 Years

Date of Appointment :

01.01.1964

 

 

Name :

Mr. R.B. Rathi

Designation :

Managing Director

Date of Birth/ Age :

45 Years

Qualification :

B.E. Mech. Engg. MIT, Pune B.S. Chem. Engg. Ohio University, USA M.B.A., Pittsburgh University, USA

Experience :

22 Years

Date of Appointment :

01.10.1992

 

 

Name :

Mr. P.R. Rathi

Designation :

Vice Chairman and Managing Director

Date of Birth/ Age :

61 Years

Qualification :

M.S.(M.I.T.) M.B.A. (Columbia)

Experience :

38 Years

Date of Appointment :

01.04.1976

 

 

Name :

Mr. B.S. Mehta

Designation :

Non-Executive, Independent Director

 

 

Name :

Mr. S.N. Inamdar

Designation :

Non-Executive, Independent Director

 

 

Name :

Mr. P.P. Chhabria

Designation :

Non-Executive, Independent Director

 

 

Name :

Mr. D.N. Damania

Designation :

Non-Executive, Independent Director

 

 

Name :

Mr. S. Padmanabhan

Designation :

Non-Executive, Independent Director

 

 

Name :

Mr. S.K. Asher

Designation :

Non-Executive, Independent Director

 

 

Name :

Mr. N.J. Rathi

Designation :

Non-Executive Director

 

 

Name :

Mrs. R. F. Forbes

Designation :

Non-Executive, Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. P.S. Raghavan

Designation :

Company Secretary

 

 

Name :

Mr. A. Vij

Designation :

Chief Operating Officer – Pigment Division

Date of Birth/ Age :

43 Years

Qualification :

B.E. Chemical, Punjab University

Experience :

23 Years

Date of Appointment :

08.12.2005

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Category of Shareholders

No. of Shares

Percentage of holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

3436416

49.64

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

225210

3.25

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

3661626

52.89

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

 

 

Total shareholding of Promoter and Promoter Group (A)

3661626

52.89

(B) Public Shareholding

 

 

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

 

 

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

725

0.01

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

770

0.01

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

34113

0.49

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

291813

4.22

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

327421

4.73

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

 

 

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

139336

2.01

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

 

 

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

1387516

20.04

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

555721

8.03

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

851105

12.29

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

113171

1.63

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

7384

0.11

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

558082

8.06

http://www.bseindia.com/include/images/clear.gifPersons Acting in Concert

172468

2.49

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

2933678

42.38

Total Public shareholding (B)

3261099

47.11

Total (A)+(B)

6922725

100.00

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

0

0.00

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

0

0.00

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

0

0.00

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

0

0.00

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

6922725

0.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Selling of Organic and Inorganic Pigments, Intermediates and Agro Chemicals.

 

 

Products :
  • Pigments Organic
  • Pigments Inorganic
  • Pesticides

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

 

Selling :

Not Available

 

 

Purchasing :

Not Available

 

 

GENERAL INFORMATION

 

Suppliers :

 

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

Customers :

 

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

No. of Employees :

Not Available

 

 

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

 

 

Facilities :

Secured Loans

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

Loan from Banks

 

 

HDFC Bank

(Note Nos. i & xii)

128.000

224.000

Export-Import Bank of India (EXIM Bank)

(Note Nos. ii, iii, x & xii)

94.652

206.460

Bank of Maharashtra

(Note Nos. iv to ix & xii)

729.660

991.149

State Bank of India

(Note Nos. xi to xii)

200.000

200.000

SHORT-TERM BORROWINGS

 

 

Loan repayable on demand:

 

 

From Banks

 

 

Working Capital Borrowings from Banks

(Notes Nos. i to ix)

977.352

698.713

Total

2129.664

2320.322

 

Notes:

 

LONG-TERM BORROWINGS

 

i)Term Loan from HDFC Bank Limited of Rs. 360.000 Millions (outstanding Rs. 128.000 millions (P.Y. Rs. 224.000 millions)) was taken in Financial Year 2011-12 and carries interest @ 10.70% p.a. The loan is repayable in 45 monthly instalments of Rs. 8.000 Millions each from November 2012.

 

ii) Term Loan from EXIM Bank of Rs. 150.000 Millions (outstanding Rs. Nil (P.Y. Rs. 20.000 millions)) was taken in Financial Year 2008-09 and carries interest @ 11.20% p.a. The loan is repayable in 60 monthly instalments of Rs. 2.500 Millions each from December 2009.

 

iii) Term Loan from EXIM Bank of Rs. 36 Millions (outstanding Rs. 60.000 millions (P.Y. Rs. 150.000 millions)) was taken in parts till March 31, 2012 and carries interest @ 11.30% p.a. The loan is repayable in 48 monthly instalments of Rs. 75 Millions each from February 2012.

 

iv) Term Loan from Bank of Maharashtra of Rs. 35 Millions (outstanding Rs. 79,848,771 (P.Y. Rs. 167.500 millions)) was taken in Financial Year 2010-11 and carries interest @ 10.50% p.a. The loan is repayable in 46 monthly instalments of Rs. 7.300 Millions each from March 2012 and 1 instalment is of Rs. 6.900 Millions.

 

v) Term Loan from Bank of Maharashtra of Rs. 42 Millions (outstanding Rs. 251.866 millions (P.Y. Rs. 336.000 millions)) was taken in parts till March 31, 2012 and carries interest @ 10.70% p.a. The loan is repayable in 20 quarterly instalments of Rs. 210 Millions each from May 2013.

 

vi) Term Loan from Bank of Maharashtra of Rs. 16.85 Millions (outstanding Rs. 117.944 millions (P.Y. Rs. 151.649 millions)) was taken in Financial Year 2012-13 and carries interest @ 10.50% p.a. The loan is repayable in 60 monthly instalments of Rs. 2.808 Millions each from October 2013.

 

vii) Term Loan from Bank of Maharashtra of Rs. 420.000 Millions (outstanding Rs. 280,000,000 (P.Y. Rs. 336.000 millions)) was taken in Financial Year 2012-13 and carries interest @ 10.25% p.a. The loan is repayable in 48 monthly instalments of Rs. 8.750 Millions each from May 2013.

 

viii) Term Loan from EXIM Bank of USD 1 Million (outstanding Rs. 34,652,268 (P.Y. Rs. 36.460 millions)) was taken in parts till March 31, 2014 and carries interest @ LIBOR + 475 b.p.s. p.a. The loan is repayable in 12 quarterly instalments of USD 0.83 Millions each from March 2014.

 

ix) Corporate Term Loan from SBI of Rs. 300.000 Millions (outstanding Rs. 200,000,000 (P.Y. Rs. 200.000 millions)) was taken in parts till March 31, 2014 and carries interest @ 10.80% p.a. The loan is repayable in 8 quarterly instalments of Rs. 25.000 Millions each from June 2014.

 

x) Nature of Security : The Term Loans from Export Import Bank of India (EXIM Bank), Bank of Maharashtra (BOM) and HDFC Bank Limited 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, Dist. Raigad and at Ambadvet, Amralevadi, Dist. Pune. The Term Loan of EXIM Bank of Rs. 150.00 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, Dist. Raigad and Ambadvet, Amralevadi, Dist. 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, Dist. Raigad and Ambadvet, Amralevadi, Dist. Pune.

 

xi) Intercorporate Deposits are generally accepted for period of 3 years. Rate of Interest varies from 10 - 11.50% p.a.

 

xii) Fixed Deposits are generally accepted for period of 1 - 3 years. Rate of Interest varies from 9 - 11.50% p.a.

 

xiii) Above Loans exclude those maturing within 12 months

 

SHORT-TERM BORROWINGS

 

i) Working Capital Loan (Cash Credit) Rs. 266.263 millions (P.Y. Rs. 119.245 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. 434.035 millions (P.Y. Rs. 165.709 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. 4.088 millions (P.Y. Rs. 2.836 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. 10.723 millions (P.Y. Rs. 29.706 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. 103,460 millions (P.Y. Rs. 53.425 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. Nil (P.Y. Rs. 54.690 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.

viii) Working Capital Loan (EPC) Rs. 76,298,339 (P.Y. Rs. Nil) from HSBC Limited carries interest @ 10.10% p.a. The Loan is repayable within 180 days from the date of borrowing.

ix) Working Capital Loan (Packing Credit (Post-shipment)) Rs. Nil (P.Y. Rs. 156.686 Millions) from Bank of Maharashtra carries interest @ 10.25% p.a. The Loan is repayable within 90 days from the date of borrowing.

x) Working Capital Loan (Packing Credit (Post-shipment)) Rs. Nil (P.Y. Rs. 116.41 Millions) from State Bank of India carries interest @ 9.70 % p.a.

The Loan is repayable within 90 days from the date of borrowing.

 

 

Auditors :

 

Name :

B.K. Khare and Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Memberships :      

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary Companies :
  • Prescient Color Limited
  • Sudarshan Europe B.V.
  • Sudarshan North America, Inc. (Subsidiary of Sudarshan Europe B.V.)

 

 

Associate Companies :
  • Rathi Brothers Poona Limited
  • Rathi Brothers Madras Limited
  • Rathi Brothers Calcutta Limited
  • Rathi Brothers Delhi Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

8000000

Equity Shares

Rs.10/- each

Rs.80.000 Millions

 

 

 

 

 

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

 

 

 

 

 

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, 2014, the amount of per share proposed dividend recognised as distribution to the equity shareholders is Rs. 15.00 (Previous Year : 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

382762

5.53

DIC Corporation, Japan

557989

8.06

 

 

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

69.227

69.227

69.227

(b) Reserves & Surplus

2964.394

2741.705

2632.395

(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)

3033.621

2810.932

2701.622

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

1768.647

2103.899

1233.222

(b) Deferred tax liabilities (Net)

348.158

252.261

212.310

(c) Other long term liabilities

27.793

27.811

27.770

(d) Long-term provisions

54.708

52.871

53.392

Total Non-current Liabilities (3)

2199.306

2436.842

1526.694

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1469.852

1443.166

1051.553

(b) Trade payables

1077.144

1017.263

963.133

(c) Other current liabilities

1093.991

882.487

823.158

(d) Short-term provisions

167.510

145.070

139.505

Total Current Liabilities (4)

3808.497

3487.986

2977.349

 

 

 

 

TOTAL

9041.424

8735.760

7205.665

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3030.558

2959.990

2048.034

(ii) Intangible Assets

126.763

120.944

123.441

(iii) Capital work-in-progress

62.872

225.879

167.466

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

292.762

251.840

251.770

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

202.567

210.069

274.096

(e) Other Non-current assets

2.500

3.000

5.500

Total Non-Current Assets

3718.022

3771.722

2870.307

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

2113.439

1858.572

1569.123

(c) Trade receivables

2645.502

1995.931

1842.773

(d) Cash and cash equivalents

121.305

217.040

338.335

(e) Short-term loans and advances

158.645

644.334

398.772

(f) Other current assets

284.511

248.161

186.355

Total Current Assets

5323.402

4964.038

4335.358

 

 

 

 

TOTAL

9041.424

8735.760

7205.665

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from operations

10266.501

7852.539

7442.343

 

 

Other Income

47.284

115.504

79.836

 

 

TOTAL                                     (A)

10313.785

7968.043

7522.179

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

5710.391

4520.131

4042.208

 

 

Cost of goods traded

313.382

298.575

284.851

 

 

Changes in inventories of finished goods, work-in-progress

51.848

(323.554)

(133.619)

 

 

Employee benefit expense

644.559

602.042

536.333

 

 

Other expenses

2315.849

2058.185

1905.965

 

 

TOTAL                                     (B)

9036.029

7155.379

6635.738

 

 

 

 

 

Less

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

1277.756

812.664

886.441

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

375.966

311.790

213.110

 

 

 

 

 

 

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

901.790

500.874

673.331

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

353.515

250.372

171.485

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

548.275

250.502

501.846

 

 

 

 

 

Less

TAX                                                                  (H)

204.098

39.952

140.336

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

344.177

210.550

361.510

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

561.980

482.670

421.732

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

 

60.000

30.000

200.000

 

 

 

103.841

86.534

86.534

 

 

 

17.648

14.706

14.038

 

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)

4394.989

3014.850

3105.423

 

 

Others

7.247

31.823

24.243

 

TOTAL EARNINGS

4402.236

3046.673

3129.666

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials (including through Canalising Agencies)

2033.985

1316.967

1103.185

 

 

Stores & Components

13.730

74.831

10.778

 

 

Capital Goods

0.210

76.229

18.986

 

TOTAL IMPORTS

2047.925

1468.027

1132.949

 

 

 

 

 

 

Earnings Per Share (Rs.)

49.72

30.41

52.22

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

3.35

2.68

4.86

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

12.45

10.35

11.91

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.31

3.03

7.39

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.18

0.09

0.19

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.07

1.26

0.85

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.40

1.42

1.46

 

 

 

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

69.227

69.227

69.227

Reserves & Surplus

2632.395

2741.705

2964.394

Net worth

2701.622

2810.932

3033.621

 

 

 

 

long-term borrowings

1233.222

2103.899

1768.647

Short term borrowings

1051.553

1443.166

1469.852

Total borrowings

2284.775

3547.065

3238.499

Debt/Equity ratio

0.846

1.262

1.068

 

 

 

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

7442.343

7852.539

10266.501

 

 

5.512

30.741

 

 

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

7442.343

7852.539

10266.501

Profit

361.510

210.550

344.177

 

4.86%

2.68%

3.35%

 

 

 

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

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

 

 

 

INDEX OF CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10494776

27/05/2014 *

1,100,000,000.00

State Bank of India

Office No. 709 & 710, Level 7, The Gate Precinct,, 
Building 3, Dubai International Finance Centre, 
Dubai, - 482033, UNITED ARAB EMIRATES

C04715397

2

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, Mahar 
ashtra - 411003, INDIA

B86859485

3

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 - 4000 
05, INDIA

B86887593

4

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

5

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 - 4000 
05, INDIA

B00828087

6

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 - 4000 
05, INDIA

A58242629

7

80017484

27/05/2014 *

3,250,000,000.00

BANK OF MAHARASHTRA

CORPORATE FINANCE BRANCH, YASHOMANGAL", F.C.ROAD, 
PUNE, Maharashtra - 411005, INDIA

C05589239

 

* Date of charge modification

 

Unsecured Loans

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

Loans and Advances from Related Parties:

 

 

Intercorporate Deposits (Note No. xi)

103.835

175.610

Fixed Deposits (Note No. ii)

 

 

From Public

0.000

5.600

From Shareholders

10.080

10.880

Loans and Advances from Others:

 

 

Intercorporate Deposits (Note No. xi)

8.510

26.900

Fixed Deposits

 

 

From Public

453.105

239.190

From Shareholders

40.805

24.110

 

 

 

SHORT-TERM BORROWINGS

 

 

Loan repayable on demand:

 

 

From Banks

 

 

Short Term Loan [Note Nos. xii) to xix)]

492.500

744.453

Total

1108.835

1226.743

 

Notes:

 

LONG-TERM BORROWINGS

xiv) Nature of Security : The Term Loans from Export Import Bank of India (EXIM Bank), Bank of Maharashtra (BOM) and HDFC Bank Limited 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, Dist. Raigad and at Ambadvet, Amralevadi, Dist. 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, Dist. Raigad and Ambadvet, Amralevadi, Dist. Pune. The Corporate Loan of Rs. 30 Crores 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, Dist. Raigad and Ambadvet, Amralevadi, Dist. Pune.

xv) The Loan from Kotak Mahindra Prime Limited is secured by hypothecation of vehicle procured out of the said loan.

xvi) Intercorporate Deposits are generally accepted for period of 3 years. Rate of Interest varies from 10 - 11.50% p.a.

xvii) Fixed Deposits are generally accepted for period of 1 - 3 years. Rate of Interest varies from 9 - 11.50% p.a.

xviii) Above Loans exclude those maturing within 12 months

 

SHORT-TERM BORROWINGS

 

xii) Nature of Security : Working Capital Borrowings from Bank of Maharashtra led Consortium Banks consisting of Bank of Maharashtra, State Bank of India, Bank of Baroda, ICICI Bank Limited, HDFC Bank Limited and The Hong Kong and Shanghai Banking Corporation 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, Dist. Raigad and Ambadvet, Amralewadi, Dist. Pune by creation of a joint registered mortgage.

xiii)Short-Term Loan Rs. Nil (P.Y. Rs. 140.000 Millions) from State Bank of India carries interest @ 10.50% p.a. The Loan is repayable within 90 days from the date of borrowing.

 

xiv) Short-Term Loan Rs. 250.000 Millions (P.Y. Rs. 300.000 Millions) from Bank of Maharashtra carries interest @ 10.50% p.a. The Loan is repayable within 90 days from the date of borrowing.

 

xv) Short-Term Loan Rs. 82.500 Millions (P.Y. Rs. Nil) from HSBC Limited carries interest @ 10.15% p.a. The Loan is repayable within 90 days from the date of borrowing.

 

xvi) Short-Term Loan Rs. 80.000 Millions (P.Y. Rs. Nil) from Bank of Baroda carries interest @ 10.50% p.a. The Loan is repayable within 90 days from the date of borrowing.

 

xvii) Short-Term Loan Rs. 80.000 Millions (P.Y. Rs. Nil) from HDFC Bank Limited carries interest @ 10.30% p.a. The Loan is repayable within 90 days from the date of borrowing.

 

xviii) Short-Term Loan Rs. 244.890 Millions (P.Y. Rs. Nil) from HSBC Limited carries interest @ 3.62% p.a. The Loan is repayable within 90 days from the date of borrowing.

 

xix) Short-Term Loan Rs. 10.000 Millions (P.Y. Rs. Nil) from Bank of Maharashtra carries interest @ 12.75 % p.a. The Loan is repayable within 90 days from the date of borrowing.

 

xx) Buyer’s Credit Loan Rs. Nil (P.Y. Rs. 205.062 Millions) from HSBC Limited carries interest @ LIBOR + 195 / 205 & 235 b.p.s. p.a. The Loan is repayable within 180 days from the date of borrowing.

xxi) Buyer’s Credit Loan Rs. Nil (P.Y. Rs. 43.194 Millions) from Citibank N.A. carries interest @ LIBOR + 175 b.p.s. p.a. The Loan is repayable within 180 days from the date of borrowing.

 

xxii) Buyer’s Credit Loan Rs. Nil (P.Y. Rs. 56.195 Millions) from ICICI Bank Limited carries interest @ LIBOR + 170 b.p.s. p.a. The Loan is repayable within 180 days from the date of borrowing.

 

xxiii) Buyer’s Credit Loan Rs. 47.070 Millions (P.Y. Rs. 161.943 Millions) from EXIM Bank carries interest @ LIBOR+500 b.p.s. p.a. The loan is repayable within 180 days from the date of borrowing.

 

xxiv) Buyer’s Credit Loan from EXIM Bank is secured by corporate guarantee issued by Sudarshan Chemical Industries Ltd.

 

THE YEAR IN RETROSPECT:

 

 

(A) SALES:

 

The Financial Year 2013 - 14 turned out to be a good year for your Company. For the first time Sales have crossed Rs. 10000 Million in the year under review, notwithstanding the challenging macro economic conditions and negative business sentiments prevalent throughout the year, both in the domestic and international market and across the Industry. The impressive performance is the result of sustained drive and team work of the organization as a whole.

 

Total Revenue from operations for the year ended 31st March, 2014 aggregated to Rs. 10314 million as against Rs. 7968 million achieved during the previous year thereby recording a good growth of around 29%. Profit after tax for the year ended 31st March, 2014 was Rs. 344 million as against Rs. 211 million earned during the previous year. Margins could have higher but for the increase in interest costs, input costs and forex loss all of which had to be absorbed by the Company.

 

Pigment revenue rose from Rs. 6967 million in the previous year to Rs. 9167 million in the year  thereby recording an excellent growth of 32%. Profits for the Pigment Division for the year  amounted to Rs. 1058 million as compared to Rs. 772 million of the previous year.

 

Agro revenue for the year ended 31st March, 2014 amounted to Rs. 1100 million as against Rs. 886 million achieved during the previous year thereby recording a growth of 24%. Profits for the Agro Division for the year amounted to Rs. 77 million as compared to Rs. 45 million of the previous year.

 

(B) EXPORTS:

 

The Company’s subsidiaries in The Netherlands and North America continue to record improved performance in terms of revenue. The natural mica based pearlescent business for cosmetics, sold under the brand Prestige and Flonac C, has been well integrated in the Cosmetic Pigment Products Portfolio and has yielded good

results.

 

In view of the increasing opportunities in the overseas markets the Company has also taken steps in the staffing of manpower in The Netherlands and North America for addressing the requirements of the overseas markets. The Company also has set up an efficient sales and distribution network in core overseas markets. All these measures are expected to give a boost to exports and contribute to consolidation in the export market.

 

Revenue from pigment exports for the year ended 31st March, 2014 amounted to Rs. 4380 million as against Rs. 3005 million for the previous year thereby registering an excellent growth of 46% 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 Board is pleased to announce that the Company has received the following awards :

 

1. Dyestuffs Manufacturers’ Association of India (DMAI) award for the Financial Year 2013 - 2014 for -

a) Excellent performance in pollution control for Large Scale Unit

b) Excellent performance in Safety and Hazards control (Second Award for Large Scale Unit)

c) Excellent performance in exports of Pigments (Award for Large Scale Unit)

 

Above awards signify our commitment towards Environment, Health, Safety and significant contribution in exports.

 

2. World Women in Leadership Award in Corporate Social Responsibility (CSR) awarded to Mrs. Rachna R. Rathi

wife of Mr.R.B.Rathi, Dy. Managing Director towards her contribution in several projects in CSR in society around us and in SUDHA (Sudarshan’s Holistic Aspiration).

 

3. “Global HR Excellence Award for Organization with Innovative HR Practices” for Induction and on boarding

process at the World HRD Congress – 2014 for having aligned our HR practices as per Global Standards.

 

4. “Global CSR Excellence & Leadership Award for Women Empowerment” at the World CSR Congress – 2014 for commitment to Corporate Sustainability by SUDHA Team towards sustainable livelihood initiatives to empower

women and help them to rise in their lives.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

Overview

 

The Global economic environment during the year 2013 - 14 continued to be under stress in the background of recession in Europe, slow growth in the United States, 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.

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 affected growth.

Given the difficult operating conditions, the results achieved for the year ended 31st March, 2013 are considered to be satisfactory.

 

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. 10225 Million achieved during the year, 43% 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 revenue in the year 2013 - 14 to Rs. 9167 million from Rs. 6967 million in 2012 - 13, recording an excellent increase of around 32% over the previous year. Sales from exports for the year

under review amounted to Rs. 4380 million as against Rs. 3005 million achieved during the previous year recording an excellent growth of around 46%.

 

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 under review, the Agro Division achieved a turnover of Rs. 1100 million as against Rs. 886 million

made in the previous year thereby recording a growth of around 24%. Notwithstanding the adverse business environment, the Agro Division has managed to earn reasonable profits for the year under review. 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 could 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 profits.

 

Outlook

 

The Company expects to improve the performance by laying more emphasis on Technical and Bulk as well as Brand business. 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.

 

7. Mrs. R.F.Forbes, is a Graduate in Psychology and Sociology from Bombay University and has further done special courses on Women in Leadership, Human Resources and Organisational Behaviour and Social Entrepreneurship and Philanthropy from IIM Ahmedabad and Stanford University. She is also on the Board of other companies including Forbes Marshall Private Ltd. (since 1999).

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ENDED 30th SEPTEMBER 2014

(Rs. in millions)

Sr. No.

Particulars

Quarter Ended

 

Half year ended

30.09.2014

30.06.2014

30.09.2014

Unaudited

Unaudited

Unaudited

 

PART I

 

 

 

1

Income from operations

 

 

 

 

(a) Net sales/income from operations (Net of excise duty)

3017.520

2663.280

5680.800

 

(b) Other operating income

12.090

9.190

21.280

 

Total income from operations (net)

3029.610

2672.470

5702.080

2

Expenses

 

 

 

 

(a) Cost of materials consumed

1798.950

1543.100

3342.050

 

(b) Purchases of stock-in-trade

110.730

91.340

202.070

 

(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(68.230)

48.610

(19.620)

 

(d) Employee benefits expense

197.500

184.740

382.240

 

(e) Depreciation and amortisation expense

99.670

96.990

196.660

 

(f) Other expenses

634.140

519.770

1153.910

 

Total expenses

2772.760

2484.550

5257.310

3

Profit / (Loss) from operations before other income, finance costs and exceptional items (1 - 2)

256.850

187.920

234.220

4

Other income

46.150

88.320

134.470

5

Profit / (Loss) from ordinary activities before finance costs and exceptional items (3 + 4)

303.000

276.240

579.240

6

Finance costs

68.530

114.410

182.940

7

Profit / (Loss) from ordinary activities after finance costs but before exceptional items (5 - 6)

234.470

161.830

396.300

8

Exceptional items

--

--

--

9

Profit / (Loss) from ordinary activities before tax (7 + 8)

234.470

161.830

396.300

10

Tax expense

70.080

46.030

34.180

11

Net Profit / (Loss) from ordinary activities after tax (9 - 10)

164.390

115.800

280.190

12

Extraordinary items (net of tax expense)

--

--

--

13

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

164.390

115.800

280.190

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

23.75

16.73

40.47

16 ii

Earnings per share (after extraordinary items)

(of Rs.10/- each) (not annualised):

 

 

 

 

Basic and Diluted

23.75

16.73

40.47

 

PART II

 

 

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public shareholding

 

 

 

 

- Number of shares

3261099

3261099

3261099

 

- Percentage of shareholding

47.11

47.11

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

3661626

3661626

3661626

 

- 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

52.89

52.89

 

 

 

Particulars

 

3 Months Ended

30th September 2014

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

 

Half year ended

30.09.2014

30.06.2014

30.09.2014

 

 

Unaudited

Unaudited

Unaudited

1

Segment Revenue

 

 

 

 

a) Pigments

2635.150

2310.610

4945.760

 

b) Agro Chemicals

394.460

361.860

756.320

 

Total :

3029.610

2672.470

5702.080

 

Less : Inter segment revenue

--

--

--

 

Net sales/income from operations

3029.610

2672.470

5702.080

2

Segment Results -

Profit / (Loss) before tax and finance cost from segment :

 

 

 

 

a) Pigments

335.050

302.510

637.560

 

b) Agro Chemicals

35.990

190.200

55.010

 

Total:

371.040

492.710

692.570

 

Less : (i) Finance cost

68.530

114.410

182.940

 

(ii) Other un-allocable expenditure

(Net of un-allocable income)

68.040

45.290

113.330

 

 

 

 

 

 

Profit before Tax :

234.470

161.830

396.300

3

Capital Employed

(Segment Assets - Segment Liabilities) :

 

 

 

 

a) Pigments

5189.850

5315.260

5189.850

 

b) Agro Chemicals

284.490

159.310

284.490

 

c) Unallocated

1341.040

1081.170

1341.040

 

Total Capital Employed :

6815.380

6555.740

6815.380

 

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 14th November, 2014

2.     The "Limited Review" of the financial results for the quarter ended 30th  September, 2014 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. 7.184 Millions (Previous Year : Rs. 8.488 Millions).

 

(B) Corporate Guarantee issued on behalf of the wholly owned subsidiary company Sudarshan Europe B.V. – Euro .,000 Millions (Previous Year : Euro Nil).

 

(C) Corporate Guarantee issued on behalf of Sudarshan North America, Inc., wholly owned subsidiary company of Sudarshan Europe B.V. – USD 3.000 Millions (Previous Year : USD 3.000 Millions).

 

(D) Income Tax – Rs. 30.388 Millions (Previous Year : Rs. 28.862 Millions).

(E) VAT – Rs. 1.861 Millions (Previous Year : 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, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                                       None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.93.41

Euro

1

Rs.71.33

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

JYTK

 

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

6

--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

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

DEFAULTERS

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

54

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

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

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