MIRA INFORM REPORT
|
Report No. : |
347986 |
|
Report Date : |
02.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
ORIENTAL CARBON AND CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
31, Netaji Subhash Road, Kolkata – 700001, West Bengal |
|
Tel. No.: |
91-33-22306831/32 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
19.06.1978 |
|
|
|
|
Com. Reg. No.: |
21-031539 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 102.961 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24297WB1978PLC031539 |
|
|
|
|
IEC No.: |
0588046272 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAAC03006F |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Sulphuric Acid. |
|
|
|
|
No. of Employees
: |
385 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 6900000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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|
Comments : |
Subject is an old and well-established company having fine track. It was incorporated in the year 1978 as a chemical manufacturing
company and it offers Insoluble sulfur, sulphuric acid and oleums. The company possesses good operational performance with increase in
its net profit margins recorded during the year 2015. Rating further reflects company’s strong financial risk profile marked
by healthy capital structure from its sound net worth base, strong debt
protection metrics and comfortable liquidity position during the year 2015. Moreover, rating also considers company’s long track record of
business operations, experienced management team and its established market
position in chemical industry. Trade relations are trustworthy. Business is active. Payment terms are
reported to be regular and as per commitments. In view of strong market position, company can be considered normal
for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 |
Long Term Bank Facilities = A |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
July 2015 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Bank Facilities = A1 |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk |
|
Date |
July 2015 |
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
31-03-2015.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. A.K. Chobey |
|
Designation : |
Accountant |
|
Contact No.: |
91-11-23559371 |
|
Date : |
30.10.2015 |
LOCATIONS
|
Registered Office : |
31, Netaji Subhash Road, Kolkata – 700001, West Bengal, India |
|
Tel. No.: |
91-33-2236831/32 |
|
Fax No.: |
91-33-22435563 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
2nd Floor, Publicis House, 1-2 Aram Bagh Community Centre, Panchkuian
Road, New Delhi – 110055, India |
|
Tel. No.: |
91-11-23559371 |
|
|
|
|
Plant 1 : |
Plot 3 and 4, Dharuhera Industrial Estate, P.O. Dharuhera,
Distt. Rewari – 122106, Haryana, India |
|
|
|
|
Plant 2 : |
Survey No.141, Paiki of Mouje, Sez Mundra, Taluka Mundra,
Distt. Kutch – 370421, Gujarat, India |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. J.P. Goenka |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Arvind Goenka |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S.J. Khaitan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. O.P. Dubey |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B.B. Tandon |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Raghuraman |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H.S. Shashikumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Runa Mukherjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Akshat Goenka |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Anurag Jain |
|
Designation : |
Chief Finanancial Officer |
|
|
|
|
Name : |
Mr. Pranab Kumar Maity |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
AS ON 30.09.2015
|
Category of
Shareholder |
No. of Shares |
% of Holdings |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
3523898 |
23.79 |
|
|
3184308 |
21.49 |
|
|
6708206 |
45.28 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
6708206 |
45.28 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
320000 |
2.16 |
|
|
0 |
0.00 |
|
|
320000 |
2.16 |
|
|
|
|
|
|
661858 |
4.47 |
|
|
|
|
|
|
3713707 |
25.07 |
|
|
2653008 |
17.91 |
|
|
758429 |
5.12 |
|
|
478715 |
3.23 |
|
|
279689 |
1.89 |
|
|
25 |
0.00 |
|
|
7787002 |
52.56 |
|
Total Public
shareholding (B) |
8107002 |
54.72 |
|
Total (A)+(B) |
14815208 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
14815208 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sulphuric Acid. |
|
|
|
|
Products : |
Sulphuric Acid. |
|
|
|
|
Brand Names : |
Not Available |
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|
|
|
Agencies Held : |
Not Available |
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|
Exports : |
|
|
Products : |
Finished Goods |
|
Countries : |
Pakistan |
|
|
|
|
Imports : |
Not Available |
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|
|
|
Terms : |
Depend |
GENERAL INFORMATION
|
Suppliers : |
Not Divulged
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Customers : |
OEMs
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No. of Employees : |
385 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Million)
|
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|
Auditors : |
|
|
Name : |
Singhi and Company Chartered Accountants |
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|
|
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Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Subsidiaries : |
Schrader Duncan Limited |
|
|
|
|
Enterprise over
which relative of key management personnel is having significant influence : |
Duncan International (India) Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,49,90,000 |
Equity Shares |
Rs.10/- each |
Rs. 149.900 Million |
|
1,000 |
11% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 0.100 Million |
|
|
Total |
|
Rs. 150.000
Million |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,03,29,814 |
Equity Shares |
Rs.10/- each |
Rs. 103.298
Million |
|
|
|
|
|
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,02,96,062 |
Equity Shares |
Rs.10/- each |
Rs. 102.961
Million |
|
|
Add: Forfeited Shares (Amount originally Paid-up) |
|
Rs. 0.152
Million |
|
|
Total |
|
Rs. 103.113 Million |
A. Terms / rights
attached to Equity shares
Each holder of equity shares is entitled to one vote per share. 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. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting.
B. Reconciliation of
the number of Equity Shares outstanding:
|
Particulars |
No. of Shares |
|
Equity shares outstanding at the beginning of the year |
10296062 |
|
Equity shares outstanding at the end the of the year |
10296062 |
C. Shareholders
holding more than 5 percent Equity shares of the Company:
|
Name of shareholder |
As at 31st March, 2015 |
|
|
Number of shares
held |
% of holdings |
|
|
Cosmopolitan Investments Limited |
1904528 |
18.50% |
|
New India Investment corporation Limited |
1202136 |
11.68% |
|
Duncan International (India) Limited |
994616 |
9.66% |
|
Haldia Investment Company Limited |
591895 |
5.75% |
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
103.113 |
103.113 |
103.113 |
|
(b) Reserves & Surplus |
2338.722 |
1935.544 |
1616.329 |
|
(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) |
2441.835 |
2038.657 |
1719.442 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
440.894 |
640.129 |
771.969 |
|
(b) Deferred tax liabilities (Net) |
211.160 |
184.448 |
163.022 |
|
(c) Other long term
liabilities |
2.778 |
5.204 |
3.712 |
|
(d) long-term
provisions |
10.082 |
7.858 |
6.684 |
|
Total Non-current
Liabilities (3) |
664.914 |
837.639 |
945.387 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
257.266 |
184.399 |
219.137 |
|
(b) Trade
payables |
153.465 |
135.260 |
125.785 |
|
(c) Other
current liabilities |
315.311 |
295.637 |
280.221 |
|
(d) Short-term provisions |
78.228 |
72.501 |
52.556 |
|
Total Current
Liabilities (4) |
804.270 |
687.797 |
677.699 |
|
|
|
|
|
|
TOTAL |
3911.019 |
3564.093 |
3342.528 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1866.220 |
1922.787 |
1862.956 |
|
(ii)
Intangible Assets |
9.564 |
11.540 |
14.131 |
|
(iii)
Capital work-in-progress |
40.616 |
22.718 |
30.931 |
|
(iv)
Intangible assets under development |
1.059 |
0.000 |
0.000 |
|
(b) Non-current Investments |
147.053 |
146.972 |
146.972 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
419.739 |
318.099 |
235.919 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
2484.251 |
2422.116 |
2290.909 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
266.074 |
111.586 |
51.380 |
|
(b)
Inventories |
372.629 |
379.227 |
367.670 |
|
(c) Trade
receivables |
514.872 |
471.210 |
395.783 |
|
(d) Cash
and cash equivalents |
177.236 |
102.171 |
128.332 |
|
(e)
Short-term loans and advances |
51.562 |
35.014 |
55.291 |
|
(f) Other
current assets |
44.395 |
42.769 |
53.163 |
|
Total
Current Assets |
1426.768 |
1141.977 |
1051.619 |
|
|
|
|
|
|
TOTAL |
3911.019 |
3564.093 |
3342.528 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
2825.735 |
2616.957 |
2254.407 |
|
|
Other Income |
128.613 |
34.900 |
48.793 |
|
|
TOTAL |
2954.348 |
2651.857 |
2303.200 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
860.115 |
668.144 |
743.051 |
|
|
Purchases of Stock-in-Trade |
1.639 |
0.000 |
7.864 |
|
|
Changes in inventories of finished
goods, work-in-progress and Stock-in-Trade |
(11.022) |
10.755 |
(75.052) |
|
|
Employees benefits expense |
279.476 |
229.110 |
207.758 |
|
|
Other expenses |
982.719 |
1027.443 |
795.322 |
|
|
TOTAL |
2112.927 |
1935.452 |
1678.943 |
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
841.421 |
716.405 |
624.257 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
80.995 |
110.514 |
127.765 |
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
760.426 |
605.891 |
496.492 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
130.805 |
104.341 |
96.141 |
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
629.621 |
501.550 |
400.351 |
|
|
|
|
|
|
|
Less |
TAX |
116.461 |
97.159 |
126.506 |
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
513.160 |
404.391 |
273.845 |
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
Export Earnings |
1805.777 |
1763.888 |
1426.872 |
|
|
TOTAL EARNINGS |
1805.777 |
1763.888 |
1426.872 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
180.172 |
178.096 |
138.850 |
|
|
Stores & Spares |
3.743 |
4.240 |
1.805 |
|
|
Capital Goods |
0.000 |
0.214 |
0.815 |
|
|
Packing Material |
9.018 |
5.641 |
8.741 |
|
|
TOTAL IMPORTS |
192.933 |
188.191 |
150.211 |
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
49.84 |
39.28 |
26.60 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
179.818 |
167.840 |
155.510 |
|
Cash generated from operations |
832.430 |
626.338 |
539.001 |
|
Net cash flow from (used in) operation |
699.697 |
515.329 |
466.289 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2015 Unaudited |
|
Net Sales |
721.120 |
|
Total Expenditure |
508.490 |
|
PBIDT (Excl OI) |
212.630 |
|
Other Income |
14.640 |
|
Operating Profit |
227.270 |
|
Interest |
15.290 |
|
Exceptional Items |
NA |
|
PBDT |
211.980 |
|
Depreciation |
47.280 |
|
Profit Before Tax |
164.700 |
|
Tax |
21.200 |
|
Provisions and contingencies |
NA |
|
Profit After Tax |
143.500 |
|
Extraordinary Items |
NA |
|
Prior Period Expenses |
NA |
|
Other Adjustments |
NA |
|
Net Profit |
143.500 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
18.16 |
15.45 |
12.15 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
29.78 |
27.38 |
27.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.91 |
14.78 |
12.65 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26 |
0.25 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.29 |
0.40 |
0.58 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.77 |
1.66 |
1.55 |
STOCK
PRICES
|
Face Value |
Rs. 10.00/- |
|
Market Value |
Rs. 552.25/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
103.113 |
103.113 |
103.113 |
|
Reserves & Surplus |
1616.329 |
1935.544 |
2338.722 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
1719.442 |
2038.657 |
2441.835 |
|
|
|
|
|
|
long-term borrowings |
771.969 |
640.129 |
440.894 |
|
Short term borrowings |
219.137 |
184.399 |
257.266 |
|
Current Maturities of Long
Term Debt |
155.510 |
167.840 |
179.818 |
|
Total
borrowings |
1146.616 |
992.368 |
877.978 |
|
Debt/Equity
ratio |
0.667 |
0.487 |
0.360 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
2254.407 |
2616.957 |
2825.735 |
|
|
|
16.082 |
7.978 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
2254.407 |
2616.957 |
2825.735 |
|
Profit |
273.845 |
404.391 |
513.160 |
|
|
12.15% |
15.45% |
18.16% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
---- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
No |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
Yes |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
---- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
---- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
---- |
|
33 |
Market information |
---- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
UNSECURED LOAN
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWING |
|
|
|
Deposits (d) |
26.854 |
19.445 |
|
|
|
|
|
Total |
26.854 |
19.445 |
|
|
|
|
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10256006 |
09/01/2013 * |
100,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B67360164 |
|
2 |
10199507 |
13/01/2010 |
70,000,000.00 |
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON HOUSE 169 BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, Maharashtra - 400020, INDIA |
A78352812 |
|
3 |
90254251 |
09/01/2013 * |
1,659,100,000.00 |
STATE BANK OF INDIA |
OVERSEAS BRANCH, JAWAHAR VYAPAR BHAVAN, 1, TOLSTOY MARG, NEW DELHI, Delhi - 110001, INDIA |
B69541522 |
|
4 |
90256203 |
04/05/2005 * |
85,000,000.00 |
STATE BANK OF INDIA |
OVERSEAS BRANCH, VIJAYA BUILDING; 17; BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA |
- |
* Date of charge modification
NATURE OF OPERATIONS
Subject is a manufacturer of Insoluble Sulphur and Sulphuric Acid. Subject has manufacturing facilities at Dharuhera (Haryana) and at Mundra SEZ (Gujarat). Insoluble Sulphur produced by the Company is sold globally.
PERFORMANCE OF THE
COMPANY
During the year, the company achieved a Profit Before Tax of Rs.629.621 Million and Earning Before Interest Depreciation and Tax of Rs. 841.421Million. Net Profit increased form Rs 404.391Million to Rs 513.160 Million. The Sales of the Company (net of excise) increased 8% to Rs. 2821.341 Million.
OPERATIONS
Insoluble Sulphur
During the year, Company’s Gross Revenue from Insoluble Sulphur increased by 5% over the previous year driven by growth in domestic as well as export sales. Export sales quantity increased by 10% as compared to last year on account of increased off take by existing customers and addition of some new customers. The growth rate in domestic volumes was 6% only as the tyre industry in India was in the grip of slowdown and demand picked up late in the second half of the year. The increase in production was 14% over previous year. Contribution levels were also maintained on account of better capacity utilization of Mundra Plant and optimization of utility consumption.
Sulphuric Acid and
Oleum
Sulphuric Acid and Oleum sales also registered 40% growth over previous year due to better market conditions. Production of Sulphuric Acid (Eqvt.) was 32% higher than previous year. This was due to debottlenecking of the Plant in the previous year.
FUTURE PROSPECTS
Insoluble Sulphur
Production from both the Plants have now been fully tied up and it is expected that the Company will be able to utilise its installed capacities at the optimum levels. Demand of Insoluble Sulphur in India is expected to grow in double digits on the back of increased use of Radial Tyres in Commercial Vehicles which consumes more Insoluble Sulphur. Global Demand continues to grow at 3-4% per annum resulting in positive outlook. In order to expand its customer base and geographical footprints, the Company is exploring capacity expansion at Mundra. The Future prospects are discussed in greater detail in the management discussion and analysis annexed to this report.
Sulphuric Acid &
Oleum
The prospects of Sulphuric Acid and Oleum, being commodity products remain same. The pricing trend is determined by one dominate manufacturer for whom Sulphuric Acid is a by-product. However, as the full steam requirement of Insoluble Sulphur Plant is now met by Sulphuric Acid Plant, the plant continues to be viable.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Insoluble Sulphur
There are three main global players in the Insoluble Sulphur Industry having international acceptance and supplies including The Company. One of the companies is a global Multinational having multi location plants. This player dominates the international Insoluble Sulphur Market. The other player and the Company are then similarly placed. However, The Company’s Geographical footprint is wide and encompasses all continents except North America where the Company has made a beginning this year. Other than above, there are a few Chinese manufacturers who are also in the business of Insoluble Sulphur, but because of a wide gap in quality and consistency of product, they are yet to find global acceptance. The gap in quality over the other Chinese suppliers is being maintained by constant endeavor to increase the quality parameters of our product and by introducing customer specific products. The Global demand of Insoluble Sulphur is growing at about 3 to 4 % and stands at about 2,50,000 Mt per annum as per Notch Report. Out of this, about 75 thousand Mt demand is in China only. About 50% of the demand in China is for the quality of the product manufactured by the three Companies. Therefore, the demand for quality Insoluble Sulphur may be estimated at about 210 thousand Mt. The demand of Insoluble Sulphur in India which is currently estimated at 13000Mt pa is expected to grow in double digits on the back of the following factors:
1. Addition of new capacities and entry of new global players in India
2. Imposition of anti-dumping duty by USA on import of tyres from China
3. Rapid increase in radialisation of tyres for commercial vehicles as more Insoluble Sulphur is used in Radial tyres.
During the year, Sales (Qty) of Insoluble Sulphur grew 9% from previous year. This was in-spite of lack of expected revival in the European market. The increase was due to addition of new global customers during the year and increase in supplies to some key customers of the Company.
Domestic sales grew 6% over previous year. However growth in Domestic sales is expected to pick up in India due to factors mentioned above.
As a result of the above, the Insoluble Sulphur Plants should now run at optimum capacity. This has resulted in optimization of utility consumption. Other than this, the Company is also working continuously to reduce its carbon footprint by reducing utility consumption through process optimization etc. The Company is focusing on entering the North American market to broad base its geographical presence and to add new customers.
Sulphuric Acid and
Oleum
Sulphuric Acid sales registered a 40% growth over previous year due to de-bottlenecking of capacities last year so that 100% demand of Steam at Dharuhera Insoluble Sulphur units can be met from the surplus steam available from it. However there was no significant increase in Oleum sales. Production of Sulphuric Acid (Eqvt.) was 32% higher than previous year however Oleum production was 6% lesser than last year.
The Industry situation remains the same with one dominant manufacturer, for whom, Sulphuric Acid is a by-product, controlling the market. The demand for Sulphuric Acid remained subdued last year due to bad demand of SSP fertilizer, a major consumer of Sulphuric Acid. It is expected to remain subdued this year also due to erratic rains and unfavorable subsidy regime.
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
|
(i) Bank Guarantees given to various Govt.Authorities/Others
(Margin money/Short Term Deposits Rs. 1.54; Previous year Rs. 1.54) |
1.026 |
|
(ii) Bills discounted with Banks |
139.102 |
|
(iii) Corporate guarantee given to a bank for loan taken by
Subsidiary Company (to the extent loan outstanding) |
146.921 |
|
(iv) Matter under
Litigations/Appeals |
|
|
(a) Income tax demand (Deposited Rs. 24.57; Previous year
Rs. 10.03) |
4.660 |
|
(b) Central Excise demand (Deposited Rs.85.58 ; Previous year
Rs. 85.58) |
10.558 |
|
(c) Other demands (Deposited Rs.12.00; Previous year
Rs.12.00) |
2.269 |
|
|
|
|
Total |
304.536 |
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE 2015
(Rs. in million)
|
Sr. No. |
Particulars |
Quarter Ended |
|
30.06.2015 |
||
|
Unaudited |
||
|
Part I |
|
|
|
1. |
Income from
Operations |
|
|
|
a)
Net Sales / Income from Operations |
713.780 |
|
|
b)
Other Operating Income |
7.339 |
|
|
Total
Income from Operations (net) |
721.119 |
|
2. |
Expenditure |
|
|
|
a)
Cost of materials consumed |
208.358 |
|
|
b)
Purchase of stock-in-trade |
0.000 |
|
|
c) Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
(0.909) |
|
|
d)
Employee benefits expense |
73.003 |
|
|
e)
Depreciation and amortisation expense |
47.278 |
|
|
f) Power and Fuel Charges |
93.270 |
|
|
g)
Other expenses |
134.771 |
|
|
Total Expenses |
555.771 |
|
3. |
Profit/ (Loss) from Operations
before Other Income, Exchange gain/(loss), Finance costs and Exceptional
items (1-2) |
165.348 |
|
4. |
Other Income |
14.640 |
|
5. |
Profit /(Loss)
from Ordinary activities before finance costs and Exceptional items (3+4a+4b) |
179.988 |
|
6. |
Finance Costs |
15.291 |
|
7. |
Profit / (Loss) from ordinary activities
after Finance costs but before Exceptional items (5-6) |
164.697 |
|
8. |
Exceptional items |
-- |
|
9. |
Profit/ (Loss) from ordinary activities
before tax (7+8) |
164.697 |
|
10. |
Tax expenses |
21.202 |
|
11. |
Net Profit / (Loss) from ordinary
activities after tax (9-10) |
143.495 |
|
12. |
Extraordinary
items |
0.000 |
|
13. |
Net Profit /
(Loss) for the period (11+12) |
143.495 |
|
14. |
Paid-up equity share capital (Face Value of Rs. 10 per share) |
103.113 |
|
15. |
Reserve excluding Revaluation reserve |
|
|
16. |
Earnings Per Share (EPS) before and after extraordinary items (of Rs.
10/- each) a) Basic b) Diluted |
13.94 13.94 |
|
|
|
|
|
Part II |
|
|
|
A. |
PARTIULARS OF SHAREHOLDINGS |
|
|
|
Public
Shareholding |
|
|
|
- Number of Shares |
4490819 |
|
|
- Percentage of Shareholding |
43.62% |
|
|
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 |
5805243 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of Promoter
and Promoter Group) |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
56.38% |
|
PARTICULARS |
For the quarter ended 30th June 2015 |
|
B INVESTORS COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
4 |
|
Disposed during the quarter |
4 |
|
Remaining unresolved at the end of the quarter |
Nil |
FIXED ASSETS
Tangible Assets
- Freehold Land
- Leasehold Land
- Buildings
- Plant and Equipment
- Electrical Installation
- Furniture and Fixtures
- Vehicles
- Office Equipment
Intangible Assets
- 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 records 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. 65.48 |
|
UK Pound |
1 |
Rs. 101.06 |
|
Euro |
1 |
Rs. 72.22 |
INFORMATION DETAILS
|
Information
Gathered by : |
SPR |
|
|
|
|
Analysis Done by
: |
HNA |
|
|
|
|
Report Prepared
by : |
JYO |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILITY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
67 |
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.