MIRA INFORM REPORT

Report No. :	348328
Report Date :	18.11.2015

IDENTIFICATION DETAILS

Name :	NITTA GELATIN INDIA LIMITED
Formerly Known As :	KERALA CHEMICALS AND PROTIENS LIMITED
Registered Office :	50/1002, Panampilly Nagar, Ernakulam-682036, Kerala
Tel. No.:	91-484-3099444
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	30.04.1975
Com. Reg. No.:	09-002691
Capital Investment / Paid-up Capital :	Rs. 90.792 Million
CIN No.: [Company Identification No.]	L24299KL1975PLC002691
IEC No.:	1088002935
TAN No.: [Tax Deduction & Collection Account No.]	CHNK00559G
PAN No.: [Permanent Account No.]	AABCK1582H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Gelatin, Ossein, DCP and Collagen Peptide.
No. of Employees :	442 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 3474200
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of the NGIL group. It was set up in the year 1975. It is a joint venture between “Kerala State Industrial Development Corporation (32%) and NGI (43%).” It manufactures gelatin, ossein, limited ossein and di-calcium phosphate (DCP) by processing crushed animal bone and treating it with hydrochloric acid. The company also manufactures collagen peptide based consumer products, which have applications in the medical industry. It is a well-established company having fine track record. Financial position of the company is strong. Liquidity position is good. The Company has been successful in wiping off its losses of previous year. The rating also takes into consideration group’s established position in the gelatin market with a recognized brand and steady support from its Joint venture (JV) partner, Nitta Gelatin Inc, Japan (NGI). Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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	CRISIL
Rating	Long Term Rating=A-
Rating Explanation	Having adequate degree of safety and carry low credit risk
Date	30.10.2015
Rating Agency Name	CRISIL
Rating	Short Term Rating=A2+
Rating Explanation	Having strong degree of safety and carry low credit risk
Date	30.10.2015

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.

LOCATIONS

Registered Office :	50/1002, Panampilly Nagar, Ernakulam-682036, Kerala, India
Tel. No.:	91-484-3099444/ 2317805
Fax No.:	91-484-2310568
E-Mail :	secretarial@nittagelindia.com ro@nittagelindia.com
Website :	http://www.gelatin.in
Factory 1 :	Ossein Division Kathikudam P.O., (Via) Koratty, Thrissur-680308, Kerala, India
Factory 2 :	Gelatin Division Kinfra Export Promotion Industrial Parks Limited, P.B. No. 3109, Kusumagiri P.O., Kakkanad, Kochi-682030, Kerala, India
Tel. No.:	91-484-2415506, 3099333
Fax No.:	91-484-2415504
E-Mail :	gd@nittagelindia.com

DIRECTORS

AS ON 31.03.2015

Name :	Mr. P. H. Kurian,, IAS
Designation :	Chairman
Profile :	A senior officer of Indian Administrative Service, Mr. P.H. Kurian has held various higher offices in Govt., including the one which he held as Controller General of Patents, Designs and Trademark. He is presently Principal Secretary, Industries and Information Technology under Govt. of Kerala.
Name :	Mr. Norimichi Soga
Designation :	Director
Profile :	He is now the Director and Chairman of Nitta Gelatin Inc, Japan, a world leader in Gelatin Industry. Mr. Keiji Suzuki, General Manager, Nitta Gelatin Inc. Japan, acts as an Alternate Director to Mr. Norimichi Soga.
Name :	DR. M. Beena, IAS
Designation :	Director
Profile :	She has had varied experience working at the helm of various Govt. Departments and Agencies. She is presently the Managing Director of Kerala State Industrial Develoment Corporation(KSIDC).
Name :	Mr. K Ramakrishnan
Designation :	Director
Profile :	A very senior Banker, he was Deputy Managing Director, State Bank of India and Managing Director, State Bank of Travancore. He had a very long tenure as Director of NGIL spanning around 17 years, also acted as Chairman of Audit Committee and as an Independent Director of the Company.
Name :	Mr. A K Nair
Designation :	Director
	A B.E and MBA, Mr. A.K. Nair has more than 46 years’ experience in senior managerial positions in various industries, including Managing Director of Kerala State Industrial Development Corporation Limited following which he was also the Managing Director of NGIL (erstwhile KCPL)for two terms of 5 Years each. He is now the Independent Director of the Company after his statutory cooling period during which he continued as a non-Executive Director of the Company.
Name :	Mr. K L Kumar
Designation :	Director
Profile :	A Mechanical Engineer, he had a long stint in corporate sector comprising 15 years in engineering consultancy services besides 22 years service with Kochi Refineries Limited(KRL), of which 12 years was its Chairman and MD. He is now an Independent Director of the Company.
Name :	Ms. Radha Unni
Designation :	Director
Profile :	An M.A, B.Ed, CAIIB, and a Banker by profession, with 36 years’ experience in State Bank of India, where she retired as Chief General Manager in charge of Kerala Circle. She is an Independent Director of the Company, also acting as Chairperson of the Audit Committee.
Name :	Dr. Naotoshi Umeno
Designation :	Director
Profile :	A Japanese national, and an MBA from Kobe University, Japan, holding a Phd in business management, Dr. Naotoshi Umeno has a career spanning 27 years as an academician in business studies presently working as Professor at Kobe University of Commerce.
Name :	Mr. T. Yamaki
Designation :	Director (Technical)
Date of Birth/Age :	55 Years
Qualification :	Engineer
Expertise :	Long tenure with Nitta Gelatin Inc., Japan. Till recently working as General Manager, Gelatin Division at NGI, Japan.
Date of Appointment :	11.05.2009
Profile :	An engineer by profession, Mr. Takeo Yamaki had a long stint with Nitta Gelatin, INC, Japan,where he worked as Director, before he joined NGIL as Director (Technical ).
Name :	Mr. Sajiv K. Menon
Designation :	Managing Director
Profile :	A B.tech in Chemical Engineering, PGDM (Fin. And Mktg), IIM, Bangalore, and a Fulbright Scholar at Carnegie Mellon University, USA, Mr. Sajiv K. Menon had a long tenure of more than 32 years’ experience in various capacities in Engineering and Chemical Industries before taking charge as Managing Director of NGIL.
Name :	Mr. Keiji Suzuki
Designation :	Alternate Director

KEY EXECUTIVES

Name :	Mr. K. Muraleedharan Nair
Designation :	Chief Financial Officer
Name :	G. Rajesh Kurup
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2015

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	2862220	31.53
Sub Total	2862220	31.53
(2) Foreign
Bodies Corporate	3900300	42.96
Sub Total	3900300	42.96
Total shareholding of Promoter and Promoter Group (A)	6762520	74.48
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4239	0.05
Financial Institutions / Banks	6332	0.07
Sub Total	10571	0.12
(2) Non-Institutions
Bodies Corporate	256376	2.82
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1670687	18.40
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	253664	2.79
Any Others (Specify)	125342	1.38
Clearing Members	717	0.01
Hindu Undivided Families	94733	1.04
Non Resident Indians	29892	0.33
Sub Total	2306069	25.40
Total Public shareholding (B)	2316640	25.52
Total (A)+(B)	9079160	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	9079160	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Seller of Gelatin, Ossein, DCP and Collagen Peptide.
Brand Names :	--
Agencies Held :	--
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Available
Name of the Person (Designation):	Not Available
Contact Number:	Not Available
Since how long known:	Not Available
Maximum limit dealt:	Not Available
Experience:	Not Available
Remark	Not Available

Customers :

Reference:	Not Available
Name of the Person (Designation):	Not Available
Contact Number:	Not Available
Since how long known:	Not Available
Maximum limit dealt:	Not Available
Experience:	Not Available
Remark	Not Available

No. of Employees :

442 (Approximately)

Bankers :

Bank Name:	Not Available
Branch:	Not Available
Person Name (with Designation):	Not Available
Contact Number:	Not Available
Name of Account Holder:	Not Available
Account Number:	Not Available
Account Since (Date/ Year of A/c Opening):	Not Available
Average Balance Maintained (Optional):	Not Available
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Available
Account Operation:	Not Available
Remarks:	Not Available

· State Bank of India

· Canara Bank

· State Bank of Travancore

· HDFC Bank Limited

· South Indian Bank Limited

Facilities :

SECURED LOANS	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
LONG-TERM BORROWINGS
Term Loans
From State Bank of India	49.950	54.397
From Canara Bank	32.087	35.579
SHORT TERM BORROWINGS
Working Capital Loan from Banks	422.063	420.155
Term Loan from Banks	0.000	7.000
Total	504.100	517.131

Banking Relations :	--
Statutory Auditors :
Name :	Varma and Varma Chartered Accountants
Address :	Ernakulam, Kerala, India
Legal Advisors :	1) M. Pathrose Mathai Senior Advocate, Ernakulam 2) B.S. Krishnan Senior Advocate, Ernakulam
Memberships :	--
Collaborators :	--
Enterprise having substantial interest in the Company :	Nitta Gelatin Inc.
Subsidiary of Nitta Gelatin Inc :	· Nitta Gelatin NA Inc. · Nitta Gelatin Canada Inc.
Trust controlled by the Company :	K. T. Chandy Seiichi Nitta Foundation
Associate Company :	K K Organics Private Limited
Subsidiary Company :	· Bamni Proteins Limited · Reva Proteins Limited

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs. 10/- each	Rs. 200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,079,160	Equity Shares	Rs. 10/- each	Rs. 90.792 Million

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	90.792	90.792	84.000
(b) Reserves & Surplus	1125.207	1063.470	1107.049
(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)	1215.999	1154.262	1191.049
(3) Non-Current Liabilities
(a) Long-term borrowings	82.037	89.976	0.000
(b) Deferred tax liabilities (Net)	60.812	36.004	65.688
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	20.876	17.379	16.243
Total Non-current Liabilities (3)	163.725	143.359	81.931
(4) Current Liabilities
(a) Short term borrowings	422.063	427.155	420.053
(b) Trade payables	271.977	321.377	214.451
(c) Other current liabilities	32.139	33.431	19.376
(d) Short-term provisions	38.147	24.691	89.432
Total Current Liabilities (4)	764.326	806.654	743.312
TOTAL	2144.050	2104.275	2016.292
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	770.401	809.713	672.791
(ii) Intangible Assets	2.305	6.147	6.633
(iii) Capital work-in-progress	84.027	84.024	84.247
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	323.153	323.653	323.653
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	16.548	13.581	16.890
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1196.434	1237.118	1104.214
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	540.181	517.781	533.201
(c) Trade receivables	221.782	222.875	260.624
(d) Cash and cash equivalents	16.091	10.271	13.256
(e) Short-term loans and advances	76.303	60.198	46.567
(f) Other current assets	93.259	56.032	58.430
Total Current Assets	947.616	867.157	912.078
TOTAL	2144.050	2104.275	2016.292

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from Operations	3591.317	2892.429	3062.211
		Other Income	20.253	1.175	27.550
		TOTAL (A)	3611.570	2893.604	3089.761
Less	EXPENSES
		Cost of Materials Consumed	1992.050	1524.921	1482.601
		Purchases of Stock-in-Trade	0.000	9.922	18.525
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.366)	(68.291)	(90.784)
		Employees benefits expense	228.285	196.594	198.839
		Other expenses	1111.057	1137.866	1058.251
		TOTAL (B)	3330.026	2801.012	2667.432
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		281.544	92.592	422.329
Less	FINANCIAL EXPENSES (D)		77.429	59.356	63.582
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		204.115	33.236	358.747
Less/ Add	DEPRECIATION/ AMORTISATION (F)		103.843	106.341	97.446
	PROFIT BEFORE TAX (E-F) (G)		100.272	(73.105)	261.301
Less	TAX (H)		49.252	(23.513)	105.471
	PROFIT AFTER TAX (G-H) (I)		51.020	(49.592)	155.830
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	1827.481	1629.611	1562.093
		Commission	5.617	0.000	0.000
	TOTAL EARNINGS		1833.098	1629.611	1562.093
	IMPORTS
		Raw Materials	118.874	43.811	74.775
		Traded Gelatin	0.000	9.922	18.525
		Packing Materials	0.950	2.603	1.100
		Components, Stores and Spares	5.321	9.681	4.958
		Capital Goods	0.000	8.002	2.928
	TOTAL IMPORTS		125.145	74.019	102.286
	Earnings Per Share (Rs.)		5.62	(5.47)	17.35

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term Borrowings	21.000	10.500	0.000
Cash Generated from Operations	194.429	250.369	221.539
Net Cash from/(used) in Operating Activities	168.421	230.236	157.973

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.42	(1.71)	5.09
Operating Profit Margin (PBDIT/Sales)	(%)	7.84	3.20	13.79
Return on Total Assets (PBT/Total Assets}	(%)	5.77	(4.31)	16.25
Return on Investment (ROI) (PBT/Networth)		0.08	(0.06)	0.22
Debt Equity Ratio (Total Debt/Networth)		0.43	0.46	0.35
Current Ratio (Current Asset/Current Liability)		1.24	1.08	1.23

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs. 151.00/-

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	84.000	90.792	90.792
Reserves & Surplus	1107.049	1063.470	1125.207
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1191.049	1154.262	1215.999
Long-term borrowings	0.000	89.976	82.037
Short term borrowings	420.053	427.155	422.063
Current Maturities of Long-Term Borrowings	0.000	10.500	21.000
Total borrowings	420.053	527.631	525.100
Debt/Equity ratio	0.353	0.457	0.432

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	3062.211	2892.429	3591.317
		(5.544)	24.163

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	3062.211	2892.429	3591.317
Profit	155.830	(49.592)	51.020
	5.09%	(1.71%)	1.42%

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	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
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)	No
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	No
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10576751	24/12/2014	70,000,000.00	HDFC BANK LIMITED	S L PLAZA,PALARIVATTOM, COCHIN- 682025, KERALA, INDIA	C57359846
2	10458646	05/02/2015 *	45,000,000.00	CANARA BANK	ERNAKULAM SOUTH BRANCH, CHITTOOR ROAD, COCHIN- 682016, KERALA, INDIA	C45063112
3	90020813	25/07/2005	53,000,000.00	STATE BANK OF TRAVANCORE	PANAMPILLY NAGAR BRANCH, ERNAKULAM- 682036, KERALA, INDIA	-
4	90017556	20/03/2014 *	268,000,000.00	CANARA BANK	CANARA BANK, CHITTOOR ROAD, COCHIN- 682016, KERALA, INDIA	C02937555
5	90016886	25/08/2014 *	547,100,000.00	STATE BANK OF INDIA	FIRST FLOOR, VANKARATH TOWERS,, BY-PASS JUNCTION, PALARIVATTOM, ERNAKULAM- 682024, KERALA, INDIA	C33168949

* Date of charge modification

PERFORMANCE :

The gross revenue from operations of the Company touched an all-time high of Rs. 3718.000 Million. This increase of 25% as compared to the previous year was achieved through increase in the production and sales volume of all its major products, increase in the unit sales realization of all its products (except in case of Di-Calcium Phosphate, for which the decline in price was consistent with the industry trend) besides a favourable foreign exchange rate movement in USD / INR.

Increase in Gelatin selling price during the year was 6%, Ossein 13% and Collagen Peptide 3% in comparison to previous year. In the case of Di-Calcium Phosphate, the drop in sales realization was 9%. The poultry industry in India, which had seen high growth for the past couple of years, witnessed a correction during 2014-15, with the farmers resorting to optimize costs with cheaper substitutes for feed and cutting down on the poultry population itself to contain the decline in product prices. In the case of Gelatin, though the domestic market continued to be attractive, the demand at some of the global markets declined considerably during the second half of the year. Availability and quality of crushed bone, the main raw material, continued to pose a challenge during the review period. Crushed bone prices have registered an overall increase of 22% which dented the operating margin for the year. Despite this, by exercising utmost control over fixed overheads, prudent structuring of hedging mechanisms for foreign currency exposure and keeping the physical performance parameters under close vigil, your company could neutralise to a significant extent the factors adversely impacting the profitability of operations. This has resulted in a pre-tax profit of Rs. 100.300 Million during 2014-15 as against a net pre-tax loss of Rs. 73.100 Million during 2013-14. The products of the Company continue to enjoy enviable market equity. The entire sale of Ossein, 48% of the total sales of Gelatin and 39% of Collagen Peptide were exported. The Company has arrangements with our overseas collaborators, Nitta Gelatin Inc., Japan to leverage their expertise and market insights in servicing its customers in a proactive manner in line with the global standards of Nitta Group.

The consistent growth in the volume of all their products is a testimony to the strong equity enjoyed by our products in markets, worldwide. The major production facilities of your company are the Ossein plant at Koratty, Trichur District and Gelatin/Peptide plant at Kakkanad, Ernakulum District, Kerala. All the factories owned by the Company are being operated in strict compliance with all the prescribed standards/norms prescribed by the Statutory Authorities including the State Pollution Control Board. The Kadukutty Panchayat in Trichur District, where the Ossein plant is situated, has not renewed the Panchayat license for the financial year 2015-16 as was the case from 2011 onwards. Denial of the license was challenged before the Hon’ble High Court of Kerala and the Court has ordered status quo in the matter till the final disposal of the petition. The Company is complying with all the norms specified by the Pollution Control Authorities and this has been confirmed during the joint inspection by the National Environmental Engineering Research Institute (NEERI), Pollution Control Board Authorities and the District Administration. Based on expert legal advice, the earlier Court verdicts in the matter and the real facts of the situation, the Company believes that it has a very strong case and expects a favourable decision in the appellate proceedings.

AWARDS AND ACCOLADES :

During the year the Company received the top export award in Ossein and Gelatin panel instituted by CAPEXIL for the year 2012-13. The following are the noteworthy certifications retained by your company. European Directorate for the Quality of Medicines and Health (EDQM) Certificate for Gelatin Division HACCP Certificate for Ossein Division and Gelatin Division for food safety. (c) ISO 14001:2004 for Gelatin Division for Environment Management System ISO 9001: 2008 for Quality Management System of the Company

FSSC Certification for Food Safety Management System for Gelatin Division 2014

(f) Halal / Kosher Certification for Gelatin and

Collagen Peptide

(g) NABL Accreditation for in-house laboratory

OUTLOOK :

The long term outlook is promising due to a growing middle class population, an increased consumption of nutritional supplements in the developed/developing world and increased health consciousness, nutrition and ageing awareness besides food habits.

The global empty capsules market is estimated to be worth $1. 3 billion in 2014 and is expected to grow at a moderate CAGR during the forecast period of 2014 to 2019. This market is mainly driven by a growing ageing population, increasing therapeutic applications of capsules in pharmaceutical, nutraceutical, and cosmetic industries and technological advancements in drug delivery formulations. Moving up the value chain beyond generics, Indian Pharma industry is accelerating its growth to the next level. In 2015, growth is expected to remain healthy, as the improving economic factors allow more spending on healthcare. Under the ‘Make in India’ and “Sell Anywhere in The World” initiative, it is expected that the government will introduce many industry friendly policies and incentives to give a major thrust to the growth of Indian pharmaceutical industry to make it a formidable force globally.

Global industry experts predict that the nutricosmetics market will reach $4.7 billion by 2020- with collagen being a big driver. Significant demand is projected in Asia with rapid growth continuing, with new product launches containing collagen with the “beauty from within” concept. The boom experienced in Japan few years ago is being replicated in other Asian countries with new delivery formats and formulations. In India too, the growth in using collagen hydrolysates for Osteoarthritis is almost doubling each year. The demand for poultry products which slumped last year, is poised to grow. We have already seen demand picking up for broilers and eggs. Low Soya prices, coupled with non-availability for meat cum bone meal, will push up the demand for DCP. Nutrigold, a secondary plant nutrient, is likely to witness slow growth owing to slow recovery of tea sector and unseasonal rains adversely affecting agriculture in India.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT :

Gelatin and its derivative Collagen Peptide find applications across several industries including food and beverages, pharmaceutical, nutraceutical, cosmeceutical, photography, etc. Gelatin is one of the key excipients utilized in pharmaceutical and medical applications. Economic development and population growth in emerging economies, more particularly in the Asian region, are expected to give further boost to the Gelatin and Collagen Peptide market. Against the aforesaid background, the global Gelatin market is expected to witness a CAGR of 6.75% between 2012 to 2017 i.e., from 3.71 lakh MT in 2012 to 5.14 lakh MT by 2017. The Company, with decades of expertise in catering to the global Gelatin market enriched with the support and guidance of the Japanese collaborator, M/s. Nitta Gelatin Inc., Japan, the leading Gelatin manufacturer, stands in an enviable position in terms of its potential to successfully operate in this emerging market scenario.

SEGMENT-WISE PERFORMANCE :

During the year under review, with the situation at Ossein Division getting further normal, the Company could improve sales volumes of all its products. Selling prices also, both in the domestic and export markets strengthened except in the case of DiCalcium Phosphate where there has been drop in price by 9% as compared to previous fiscal, 2013-14.

Exports

The Company maintained its prominence in the niche overseas markets. Export of Ossein during the year could be increased to 4624 MT (4453 MT) of normal Ossein and 306 MT (240 MT) of Limed Ossein. Export of DCP during 2014-15 was 430 MT as against 301 MT during 2013-14. The volume of export of Gelatin for the year 2014- 15 was 1764 MT as against 1640 MT during the previous year. Export of Collagen Peptide during the year was 142 MT against 129 MT for 2013-14. Export of Chitosan during 2014-15 was only 3.07 MT during the year as against 6.92 MT during the previous fiscal. Average USD / INR exchange rate for the year 2014-15 was 60.69 as against 59.97 for 2013-14, which was conducive for exports.

Domestic

The volume of domestic sale of Gelatin, Collagen Peptide and Di-Calcium Phosphate during 2014- 15 has shown a clear improvement over the previous year. Sales of Gelatin - 1906 MT (1248 MT), Collagen Peptide – 225 MT (138MT) and Di-Calcium Phosphate - 19309MT (16487 MT) remained robust during the year.

PART I

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

(Rs. in Million)

	Particulars	30.06.2015 3 months ended
		Unaudited
1.	Income from Operations
	a) Net Sales/Income from Operations	787.900
	(Net of excise duty)
	b) Other Operating Income	13.400
	Total Income from Operations (net)	801.300
2.	Expenses
	a) Cost of materials consumed	427.600
	b) Purchase of traded goods	0.000
	c) Changes in inventories of finished goods, work-in-progress and traded goods	15.600
	d) Processing Charges	45.800
	e) Employee benefits expense	54.200
	f) Depreciation and amortisation expense	23.300
	g) Power, Fuel and Water	83.000
	h) Other expenses	121.100
	Total Expenses	770.600
3.	Profit/ (Loss) from Operations before other income, finance costs and Exceptional items (1-2)	30.7000
4.	Other Income	8.400
5.	Profit from ordinary activities before finance costs and exceptional Items (3+4)	39.100
6.	Finance costs	14.700
7.	Profit / (Loss) from ordinary activities after finance costs but before exceptional Items (5-6)	24.400
8.	Exceptional Items	0.000
9.	Profit/ (Loss) from ordinary activities before tax (7-8)	24.400
10.	Tax expense	10.000
11.	Net Profit/ (Loss) from ordinary activities after tax (9-10)	14.400
12.	Extraordinary items	0.000
13.	Net Profit/ (Loss) for the period (11-12)	14.400
14.	Minority Interest
15.	Net Profit/ (Loss) after taxes, minority interest and share of profit/ (Loss) of associates (13-14)	14.400
16.	Paid - up Equity Share Capital (face value per share Rs 10/-)	90.800
17.	Reserves excluding revaluation reserves as per the audited balance sheet of previous year
18.i)	Earnings Per Share (before and after extraordinary items) (of Rs. 10 each) (not annualised)
	a) Basic	1.39
	b) Diluted	1.39
18.ii)	Earnings Per Share (before and after extraordinary items) (of Rs. 10 each) (not annualised)
	a) Basic	1.39
	b) Diluted	1.39
PART II
Select Information for the Quarter Ended 30.06.2015
A.	PARTICULARS OF SHAREHOLDING
1.	Public Shareholding
	- Number of Shares	2316640
	- Percentage of Shareholding	25.52
2.	Promoter 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	6762520
	-Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100%
	-Percentage of Shares (as a % of the total share capital of the Company)	74.48%
	Particulars	3 months ended 30, 2015
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

NOTES:

1. Segment-Wise Revenue, Results and Capital Employed Under Clause 41 of The Listing Agreement

Particulars	Unaudited 3 months ended 30.06.2015
Segment Revenue
a) Segment-A-Export Sales	376.300
b) Segment-B-Domestic Sales	411.600
Total	787.900
Less : Inter Segment Revenue	--
Net Sales / Income from Operations	787.900
Segment Results (Profit(+)/Loss(-)))
a) Segment-A-Export Sales	71.600
b) Segment-B-Domestic Sales	42.100
Total	113.700
Less : i) Finance Cost	14.700
ii) Other Un-allocable expenditure
net of Un-allocable income	74.600
Total Profit/ (Loss) before Tax	24.400

Notes on segment information

2. a) The company’s operation centers around the manufacture and sale of products which form broadly part of one product group in both export and domestic markets. Accordingly, sales revenue earned from these two different markets constitute the primary basis of segmental information set out above.

b) Fixed assets and services are deployed interchangeably between segments and hence cannot be identified to any of the reportable segments.

3. The Company has allotted 929412 Optionally Convertible Preference Shares at the rate of Rs. 170/- each for an amount of Rs. 158000040/- on 28.04.2015 to M/s Nitta Gelatin Inc., one of the promoters.

4. The figures for the quarter ended 31.03.2015 are the balancing figures between audited figures in respect of the financial year ended 31.03.2015 and the unaudited published year to date figures upto the third quarter ended 31.12.2014.

5. The above results, were reviewed by the audit committee at their meeting held on 29.07.2015 and taken on record by the Board of Directors in their meeting held today.

6. Figures have been regrouped wherever necessary.

CONTINGENT LIABILITIES:

Particulars	31.03.2015 (Rs. In Million)	31.03.2014 (Rs. In Million)
Claims against the Company not acknowledged as debts:
a. Income Tax	67.049	67.049
b. Value Added Tax/ CST	36.775	1.237
c. Excise Duty	23.640	21.582
d. Water Cess	65.301	65.301
Foreign Bills Discounted	231.983	239.149
Domestic Bills Discounted	7.994	1.632
Counter Guarantee issued in favour of bankers	9.048	6.352
Corporate guarantee issued in favour of Subsidiary Company Reva Proteins Limited. - Amount outstanding [ Amount of Guarantee - Rs 200.000 Million (Rs 200.000 Million) ]	131.246	156.250
Total	573.036	558.552

FIXED ASSETS:

Tangible Assets

· Land and Development

· Leasehold Land

· Buildings

· Plant and Equipment

· Furniture and Fittings

· Vehicles

· Office Equipment

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. 65.98
UK Pound	1	Rs. 100.12
Euro	1	Rs. 70.35

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	IND

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	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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

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

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

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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.