MIRA INFORM REPORT
|
Report No. : |
340277 |
|
Report Date : |
07.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
NAVIN FLUORINE INTERNATIONAL LIMITED |
|
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Registered
Office : |
2nd Floor, Sunteck Centre, |
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Tel. No.: |
91-22-66509999 |
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Country : |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
25.06.1998 |
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Com. Reg. No.: |
11-115499 |
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Capital
Investment / Paid-up Capital : |
Rs.97.683 Million |
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|
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CIN No.: [Company Identification
No.] |
L24110MH1998PLC115499 |
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|
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IEC No.: |
0302070770 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP14428B |
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|
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PAN No.: [Permanent Account No.] |
AABCP0464B |
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Legal Form : |
A Public Limited Liability Company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Fluorine Chemistry, Refrigeration Gases, Some
Basic Building Block Fluorides and Specialty Organofluorines. |
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|
|
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No. of Employees
: |
641 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 |
|
Status : |
Good |
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|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Arvind Mafatlal Group (AMG), was established in
1998, it is well established company having fine track record. The rating assigned to the company derive strength from healthy
operation and financial risk profile backed by well-established position of
the company in the flurochemicals business, diversified revenue profile, and
comfortable liquidity profile. The rating further drives strength from well experienced promoter group,
established track record and strong financial base of group. However, this rating is constrained by exposure of the profitability
margins to the volatility in key raw material prices, highly competitive
nature of the industry. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. In view of strong financials base backed by experienced promoter, 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Proposed Standalone Commercial paper (CP)
issue : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
04.12.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2013.
INFORMATION DENIED
Management Non-Cooperative (CONTACT NO.: 91-22-66509999)
LOCATIONS
|
Registered Office : |
2nd Floor, Sunteck Centre, |
|
Tel. No.: |
91-22-66509999 / 24043300 |
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Fax No.: |
91-22-66509800 |
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E-Mail : |
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Website : |
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Factory 1 : |
P. O. Bhestan, Udhana – Navsari Road, Surat – 395023, Gujarat, India |
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Tel. No.: |
91-261-2890325 |
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Fax No.: |
91-261-2890288 |
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E-Mail : |
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Factory 2 : |
New Industrial Area, |
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Tel. No.: |
91-727-2403015 |
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Fax No.: |
91-727-2259362 |
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E-Mail : |
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Sales Office : |
35C, Shivaji Marg, Rama Road, New Delhi – 110015, India |
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Tel. No.: |
91-11-42475793 / 5796 |
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Fax No.: |
91-11-42475792 |
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Other Sales Offices : |
Located At: · Mumbai · Chennai · Surat · Hyderabad |
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International Sales Office 1 : |
Navin Fluorine
International Limited 47 Bond Street, Bridgewater, NJ 08807 |
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Tel. No.: |
908-243-0159 |
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Fax No.: |
908-450-1311 |
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E-Mail : |
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International Sales Office 2 : |
Manchester Organics Limited The Heath Business and Technical Park, Runcorn, Cheshire, WA7 4QX, United Kingdom |
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Tel. No.: |
44 (0) 1928 710 200 |
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Fax No.: |
44 (0) 1928 710 225 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. Hrishikesh A. Mafatlal |
|
Designation : |
Chairman |
|
Date of Birth/ Age: |
58 Years |
|
Expertise in
functional areas : |
He is an Industrialist having diversified experience of more than 35
years in the areas of Textiles, Chemicals, Petrochemicals, Financial Services
etc. |
|
Date of Appointment : |
25.06.1998 |
|
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|
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Name : |
Mr. S.S. Khanolkar |
|
Designation : |
Managing Director |
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Date of Appointment : |
01.01.2011 |
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|
|
|
Name : |
Mr. T. M.M. Nambiar |
|
Designation : |
Director |
|
Date of Birth/ Age: |
77 Years |
|
Qualification : |
B.Com, A. C.A. |
|
Expertise in functional
areas : |
Having vast experience of over 51 Years and was associated as
President / Chairman/ Member of the prestigious Institutions like Cement
Manufacturers Association, National Council for Cement and Building Materials
and Development Council for Cement Industry, The Associated Chamber of
Commerce and Industry of India, Bombay Chamber of Commerce etc. He was
associated for more than 26 years with Associated Cement Company Ltd.
including 6 years as Managing Director. |
|
Date of Appointment : |
03.03.2003 |
|
|
|
|
Name : |
Mr. Pradip N. Kapadia |
|
Designation : |
Director |
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Date of Birth/ Age: |
62 Years |
|
Qualification : |
B.A, LL.B Having experience of more than 36 Years in the legal field. He
is the Partner of Vigil Juris, Advocates and Solicitors, Mumbai. |
|
Expertise in
functional areas : |
Advocate and Solicitor. |
|
Date of Appointment : |
21.01.2003 |
|
|
|
|
Name : |
Mr. Sunil S. Lalbhai |
|
Designation : |
Director |
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Date of Birth/ Age: |
53 Years |
|
Qualification : |
B. Sc, M.S (Chemistry), U.S.A, M.S (Economy Planning and Policy),
Boston, U.S.A. |
|
Expertise in
functional areas : |
He is an Industrialist having varied experience of more than 30 years
in chemical and general management. |
|
Date of Appointment : |
03.03.2003 |
|
|
|
|
Name : |
Mr. S. M. Kulkarni |
|
Designation : |
Director |
|
Date of Birth/ Age: |
75 years |
|
Qualification : |
B.E, Fellow, Institute of Management-U.K., Fellow Indian Institution
of Engineers and Fellow Institute of Directors U.K. |
|
Expertise in
functional areas : |
Corporate and Business Advisor |
|
Date of Appointment : |
19.10.2006 |
|
|
|
|
Name : |
Mr. V. P. Mafatlal |
|
Designation : |
Director |
|
Date of Birth/ Age: |
40 years |
|
Qualification : |
B.Sc (Economics) University of Pennsylvania, Wharton School, U.S.A |
|
Expertise in
functional areas : |
Textiles and Chemicals. Industrialist having business experience of
more than 17 Years in Textiles and Chemicals. |
|
Date of Appointment : |
21.01.2003 |
|
|
|
|
Name : |
Mr. S. G. Mankad |
|
Designation : |
Director |
|
Date of Birth/ Age: |
67 Years |
|
Qualification : |
I.A.S (Retd.) M.A. (History) Delhi University, Diploma in Development
Studies, Cambridge University. |
|
Expertise in
functional areas : |
He is a retired IAS Officer. He was the Chief Secretary to Government of
Gujarat from 2005 to 2007 and has also held important positions in Government
of India (Ministries of Finance, Agriculture and Human Resource Development)
and Government of Gujarat. |
|
Date of Appointment : |
29.04.2011 |
|
|
|
|
Name : |
Mr. H. H. Engineer |
|
Designation : |
Director |
|
Date of Birth/ Age: |
66 Years |
|
Qualification : |
Diploma in Business Management from Hazarimal Somani College, Mumbai.
Bachelor of Science, Mumbai University. |
|
Expertise in
functional areas : |
He has varied experience of over 44 years in the Banking Sector. He
retired as an Executive Director, Wholesale Banking of HDFC Bank Limited. |
|
Date of Appointment : |
23.10.2013 |
|
|
|
|
Name : |
Mrs. R. V. Haribhakti |
|
Designation : |
Director (w.e.f. 30.7.2014) |
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|
|
|
Name : |
Mr. Atul Kumar Srivastava |
|
Designation : |
Finance Director (upto 30.4.2015) |
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Date of Birth/ Age: |
61 Years |
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Expertise in
functional areas : |
Finance Accounting, Taxation and Commerce |
|
Date of Appointment : |
21.01.2003 |
KEY EXECUTIVES
|
Name : |
Mr. N. B. Mankad |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
484841 |
4.96 |
|
|
3240508 |
33.16 |
|
|
65145 |
0.67 |
|
|
65145 |
0.67 |
|
|
3790494 |
38.79 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3790494 |
38.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1576929 |
16.14 |
|
|
7183 |
0.07 |
|
|
762033 |
7.80 |
|
|
2346145 |
24.01 |
|
|
|
|
|
|
358550 |
3.67 |
|
|
|
|
|
|
2529185 |
25.88 |
|
|
691663 |
7.08 |
|
|
55360 |
0.57 |
|
|
55322 |
0.57 |
|
|
38 |
0.00 |
|
|
3634758 |
37.20 |
|
Total Public shareholding (B) |
5980903 |
61.21 |
|
Total (A)+(B) |
9771397 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
9771397 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Fluorine Chemistry, Refrigeration Gases, Some Basic Building Block Fluorides and Specialty Organofluorines. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
641 (Approximately) |
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Bankers : |
· Axis Bank Limited · HDFC Bank Limited |
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Facilities : |
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Auditors : |
|
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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|
|
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Solicitors : |
Vigil Juris |
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|
|
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Collaborators : |
Not Divulged |
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|
|
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Membership : |
Not Divulged |
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|
|
|
Enterprises over
which key management personnel and their relatives are able to exercise significant
influence : |
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Joint Ventures : |
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|
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|
Subsidiary Company
: |
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|
|
Partnership firm
where the Company is a majority partner : |
|
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs. 10/- each |
Rs.350.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9769797 |
Equity Shares |
Rs. 10/- each |
Rs.97.698 Million |
|
|
Less: Calls in arrears |
|
Rs.0.015 Million |
|
|
|
|
|
|
|
Total |
|
Rs.97.683
Million |
a) Reconciliation of the number of shares and amount
outstanding at the beginning and at the end of the reporting period:
|
Particulars |
Opening
balance |
Buyback |
ESOP |
Closing
balance |
|
Equity shares with voting rights |
|
|
|
|
|
Year ended 31 March, 2015 |
|
|
|
|
|
- Number of shares |
9761097 |
-- |
8700 |
9769797 |
|
- Amount |
97.611 |
-- |
0.087 |
97.698 |
b) 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 equity shareholder is entitled to one vote per share. The Company declares and pays dividends 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 year ended 31 March, 2015, the amount of dividend, per share, recognized as distributions to equity shareholders is Rs.16/- (year ended 31 March, 2014, Rs.16/-)
c) Details of shareholders holding more than
5% shares in the company:
|
Equity shares of
Rs.10/- each fully paid |
31 March, 2015 |
|
|
Name |
Nos. |
% holding |
|
Mafatlal Impex Private Limited |
1085193 |
11.11 |
|
Suremi Trading Private Limited |
646081 |
6.61 |
|
NOCIL Limited |
566340 |
5.80 |
d) For details of shares reserved for issue
under the employee stock option (ESOP) plan of the company.
e) During the period of five years immediately
preceding the reporting date:
|
Name of
Shareholder |
31 March, 2015 |
31 March, 2014 |
31 March, 2013 |
31 March, 2012 |
31 March, 2011 |
|
Equity shares bought back by the company |
-- |
-- |
-- |
-- |
338792 |
Pursuant to the decision of the Board of Directors of the Company taken in its meeting dated 24 September, 2010, the Company bought back 338,792 equity shares of nominal value of Rs.10/- each at a price of Rs.400/- per share for an aggregate value of Rs.135.517 Million during 2010-11 under Section 77A of the Companies Act, 1956 through tender offer by utilising the Securities premium account to the extent of Rs.132.129 Million. The Capital redemption reserve was created out of General reserve for Rs.3.388 Million being the nominal value of shares thus bought back. All the equity shares bought back were extinguished by 5 March, 2011.
f) Calls unpaid (by other than officers and
directors)
|
Equity Shares |
Number
of Shares |
|
2956 equity shares of Rs.10/- each, Rs.5/- called up but unpaid |
0.015 |
g) Out of the rights issue made in 2004-05,
109 equity shares could not be offered on rights basis due to the
nonavailability of details of beneficial holders from depositories. The same
are kept in abeyance.
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 |
97.683 |
97.572 |
97.572 |
|
(b) Reserves & Surplus |
5613.625 |
5320.980 |
4997.060 |
|
(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) |
5711.308 |
5418.552 |
5094.632 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
117.809 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
318.888 |
331.558 |
325.646 |
|
(c) Other long term
liabilities |
210.698 |
230.551 |
204.959 |
|
(d) long-term
provisions |
52.657 |
38.449 |
33.958 |
|
Total Non-current
Liabilities (3) |
700.052 |
600.558 |
564.563 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
331.105 |
569.957 |
832.392 |
|
(b) Trade
payables |
883.690 |
582.358 |
501.488 |
|
(c) Other
current liabilities |
146.808 |
135.129 |
123.886 |
|
(d) Short-term
provisions |
146.652 |
115.402 |
97.294 |
|
Total Current
Liabilities (4) |
1508.255 |
1402.846 |
1555.060 |
|
|
|
|
|
|
TOTAL |
7919.615 |
7421.956 |
7214.255 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
2120.101 |
2252.005 |
2295.835 |
|
(ii)
Intangible Assets |
6.993 |
7.616 |
8.906 |
|
(iii)
Capital work-in-progress |
575.846 |
53.118 |
87.064 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1791.648 |
1344.935 |
1651.789 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
675.388 |
552.144 |
518.109 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
5169.976 |
4209.818 |
4561.703 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
553.011 |
1284.482 |
814.618 |
|
(b)
Inventories |
658.359 |
572.662 |
719.322 |
|
(c) Trade
receivables |
1102.281 |
828.701 |
708.455 |
|
(d) Cash
and cash equivalents |
137.625 |
252.803 |
274.656 |
|
(e)
Short-term loans and advances |
272.091 |
254.584 |
124.117 |
|
(f) Other
current assets |
26.272 |
18.906 |
11.384 |
|
Total
Current Assets |
2749.639 |
3212.138 |
2652.552 |
|
|
|
|
|
|
TOTAL |
7919.615 |
7421.956 |
7214.255 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
5461.227 |
4491.384 |
5246.937 |
|
|
|
|
Other Income |
266.414 |
293.623 |
138.525 |
|
|
|
|
TOTAL (A) |
5727.641 |
4785.007 |
5385.462 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Materials Consumed |
2600.582 |
2085.889 |
2478.866 |
|
|
|
|
Purchase of Stock-in-trade |
109.419 |
44.265 |
61.986 |
|
|
|
|
Changes in Inventories of finished goods, work-in-progress and
stock-in-trade |
11.820 |
(6.833) |
(1.476) |
|
|
|
|
Employee Benefits Expenses |
609.105 |
482.719 |
441.619 |
|
|
|
|
Other Expenses |
1497.157 |
1278.246 |
1461.599 |
|
|
|
|
TOTAL (B) |
4828.083 |
3884.286 |
4442.594 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
899.558 |
900.721 |
942.868 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
32.373 |
53.963 |
60.974 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
867.185 |
846.758 |
881.894 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
186.377 |
205.507 |
196.117 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
680.808 |
641.251 |
685.777 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
186.959 |
134.612 |
254.144 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
493.849 |
506.639 |
431.633 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3042.739 |
2769.500 |
2551.800 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION ON TRANSITION TO SCHEDULE II
OF THE COMPANIES ACT, 2013 ON TANGIBLE FIXED ASSETS WITH NIL REMAINING USEFUL
LIFE (NET OF DEFERRED TAX) |
16.626 |
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Transfer to general reserve |
49.400 |
50.700 |
43.200 |
|
|
|
|
Interim dividend |
73.273 |
73.200 |
73.200 |
|
|
|
|
Proposed Special Dividend |
83.043 |
83.000 |
73.200 |
|
|
|
|
Corporate dividend tax |
31.556 |
26.500 |
24.300 |
|
|
|
BALANCE CARRIED
TO THE B/S |
3282.690 |
3042.739 |
2769.533 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
FOB value of exports |
1699.724 |
1078.181 |
1357.110 |
|
|
|
|
FOB value of carbon credits |
0.000 |
0.000 |
571.054 |
|
|
|
|
Contract Research Income |
232.798 |
249.853 |
136.872 |
|
|
|
TOTAL EARNINGS |
1932.522 |
1328.034 |
2065.036 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
1680.711 |
1146.372 |
1459.903 |
|
|
|
|
Stores, spares & packing materials |
39.551 |
14.702 |
7.203 |
|
|
|
|
Capital Goods |
36.847 |
16.653 |
3.690 |
|
|
|
TOTAL IMPORTS |
1757.109 |
1177.727 |
1470.796 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
50.57 |
51.90 |
44.22 |
||
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
661.400 |
685.590 |
975.937 |
|
Net cash flow from operating activities |
488.225 |
580.098 |
701.557 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin PAT / Sales |
(%) |
9.04 |
11.28 |
8.23 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
16.47 |
20.05 |
17.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
12.26 |
10.65 |
12.52 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.12 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.08 |
0.11 |
0.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.82 |
2.29 |
1.71 |
STOCK
PRICES
|
Face Value |
Rs.10.00/- |
|
Market Value |
Rs.1210.00/- |
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 |
97.572 |
97.572 |
97.683 |
|
Reserves & Surplus |
4997.060 |
5320.980 |
5613.625 |
|
Net
worth |
5094.632 |
5418.552 |
5711.308 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
117.809 |
|
Short term borrowings |
832.392 |
569.957 |
331.105 |
|
Total
borrowings |
832.392 |
569.957 |
448.914 |
|
Debt/Equity
ratio |
0.163 |
0.105 |
0.079 |
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 |
5246.937 |
4491.384 |
5461.227 |
|
|
|
(14.400) |
21.593 |
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
|
5246.937 |
4491.384 |
5461.227 |
|
Profit |
431.633 |
506.639 |
493.849 |
|
|
8.23% |
11.28% |
9.04% |
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 |
Yes |
|
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 |
CORPORATE
INFORMATION
Subject is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay, Ahmedabad and National stock exchanges.
Subject belongs to the reputed Arvind Mafatlal Group in India. Established in 1967, it has the largest integrated fluorochemicals complex in India. Subject primarily focuses on fluorine chemistry, producing refrigeration gases, some basic building block fluorides and specialty organofluorines. Its manufacturing facilities are located at Surat, Gujarat and Dewas, Madhya Pradesh.
YEAR IN RETROSPECT
Operating profits for the year increased by 20% over that of the previous year while the profit before tax (PBT) increased by 6% from Rs.641.200 million (including a write-back of Rs.38.000 million) in FY14 to Rs.680.800 million during the year. Profit after tax (PAT) at Rs.493.800 million in the current year marginally declined by 3% from Rs.506.600 million in FY14.
The increase in operating profit has been mainly driven by deeper market penetration leading up to higher volumes and capacity utilisation. The marginal decline in PAT is primarily on account of recent changes in the tax laws. Until FY14 surpluses arising from certain class of investments maturing between one and three years could avail indexation benefits and a lower rate of long term capital gains tax. In the current fiscal these incomes have become taxable at the full marginal rate. Subject has a substantial income from this stream. Hence, the adverse change in taxation increased the effective tax rate for subject in the current year thereby reducing the PAT.
During the year the Non-CER turnover reached an all-time high of Rs.5461.200 million, a growth of 22% over the previous year’s Rs.4491.400 million driven by the refrigerant, specialty and the contract research and manufacturing services (CRAMS) businesses. Inorganic fluorides registered a 7% decline in the top line.
Exports at Rs.1978.500 million, posted a healthy year-on-year growth of 45% over Rs.1351.800 million of the previous fiscal. Inorganic fluoride exports doubled during the year to reach up to 10% of the total inorganic fluoride sales and improve capacity utilisation. The domestic business grew at 12% as the robust growths in refrigerants and specialties were partially off-set by a muted inorganic fluorides sales.
The specialties and CRAMS are expected to be the growth drivers while refrigerant (HCFC 22) is already into its first year of phase-down under the Montreal Protocol.
During the year, the costs of key raw materials moved in mixed directions. The Company continued to use diverse sources for fluorspar (the most important raw material which is fully imported) and achieved an overall savings of 10% in comparison to the previous year’s cost despite a steady decline in the value of Indian Rupee against the
US Dollar. Sulphur and chloroform, the other critical raw materials experienced strong inflationary trends exerting stress on the margins across product-lines. Sulphur price witnessed a sharp 30% increase and price of Chloroform has more than doubled in comparison to FY14. The key raw materials will continue to remain expensive in the near future except for fluorspar which is expected to remain stable.
The energy cost at Surat, Gujarat has been 27% higher than that of the previous year. Natural gas cost for the Company increased by 11% in the current fiscal compared to that of the previous year despite weak global prices. The other adverse factor has been non-availability of exchange traded power from other states, in South Gujarat.
The new port at Hazira, 30 kms. From Surat, has been in operation since last year. Given the fact that 34% of the
Company’s turnover comes from exports and 66% of the raw material are imported, the nearness to an all-weather port brings in a permanent cost advantage to the Company.
The Company is a net exporter. The INR to USD exchange moved in a bandwidth of 10% during the year with the
Indian Rupee getting weaker which helped the export realisations. However, INR gained against both the British Pound (GBP) and Euro during the year by ~ 10% and 20% respectively. The exchange loss of Rs.9.500 million booked in other expenses is on account of timing differences between the actual foreign currency transactions and their realization or re-statements.
During the previous fiscal, the Company implemented an aggressive plan to improve the operating efficiencies across its manufacturing and materials management functions which helped the Company improve its margins and get more aggressive in growing the volumes, both in the domestic and international markets. During the year, these initiatives were further consolidated. The top-line growth helped a better absorption of overheads contributing to the improvements in the operating margins.
A Capex of Rs.600.000 million is underway at Dewas, MP which is the hub of our CRAMS activities. The facility will come on stream in the first half of the FY16. This is the largest dedicated contract manufacturing set-up of the Company, ready to manufacture a diversified range of fluorinated molecules for its CRAMS customers in a cGMP environment.
So far more than 40 molecules have been worked on and delivered to more than 20 global pharma majors. It is also in the process of reaching out to markets in the US West coast, Western Europe and Japan by having direct representations in those geographies in addition to the strong presence of Manchester Organics Limited (MOL) in the UK. The NFIL-MOL integration has also worked well and helped gain a higher share in the CRAMS universe of fluorinated molecules.
Through the year the technology teams worked hard to improve productivity, quality and costs of various products to offer a competitive marketing edge to the businesses on one hand and flexibility of sourcing to the supply chain team on the other.
During the year, a conservative inventory policy for raw materials was followed in order to remain closer to the market prices of all the key raw materials and access the resultant movement in the finished product prices. There has been increase in receivables, inventories and payables.
The overall net working capital increased by Rs.91.600 million. The working capital remains an area of key management attention and the levels are well within acceptable industry norms.
The company maintained a good financial health with a sizeable treasury income. The Basel II rating of the Company is maintained at ‘CARE AA-’ (indicating high degree of safety regarding timely servicing of financial obligations and very low credit risk) for borrowings with a tenure of more than one year and fund-based facilities. The rating for short-term facilities (less than one year) has been maintained at ‘CARE A1+’ (indicating very strong degree of safety regarding timely servicing of financial obligations and lowest credit risk) for its non-fund based facilities. During the year the Company received a ‘CARE A1+’ rating for issuance of unsecured commercial papers to the extent of Rs.200.000 million.
The Company is fully committed to its responsibilities in health, safety and environmental (HSE) management and has continued to make sizable investments in HSE during the year. The Company received ‘Responsible Care’ logo certification from the Indian Chemical Council. ‘Responsible Care’ is the chemical industry’s unique global initiative that drives continuous improvement in HSE performance together with open and transparent communications with stakeholders. The logo is awarded in recognition of a company’s commitment to sustainability. With this the Company joins an exclusive club of chemical companies in India who have been awarded the privilege to use this logo.
During the year the Company’s facility at Surat received various HSE awards and recognitions and letters of appreciation from the Government of Gujarat, National Safety Council, etc. The Company run several in-house HSE awareness programmes at all its locations.
MANAGEMENT DISCUSSION and ANALYSIS
REPORT
ECONOMIC OVERVIEW
Global economy in 2014 struggled as developed countries managed their financial crisis and developing and emerging economies grew at a slower pace. World GDP is estimated to grow at 3% in 2015 and 3.3% in 2016, supported by a gradual revival in developed countries and low crude prices helping the oil-importing developing countries to deploy more resources in social sector development projects. Factors like commodity prices, world trade, interest rates and monetary policies will play significant roles in shaping the growth ahead.
India is estimated to grow at 7.5% in 2015-16, according to the International Monetary Fund (IMF), becoming one of the fastest growing big emerging market economies in the world. India’s economic growth will be augmented by
Easing monetary policy and pick-up in capital expenditure.
GLOBAL FLUOROCHEMICALS INDUSTRY
Global demand for Chemicals is expected to strengthen with the economic scenario improving the world over. Global chemical market is expected to grow by 3.6% in 2015. This growth will be mainly contributed by developing nations in Asia Pacific, Africa and the Middle East. Fluorine containing compounds are part of many human made materials, from the polymers used to coat flower pots to medicines, evidencing an increasing importance of fluorine in modern day life.
Global fluorochemicals market, estimated at 3.3 Million tons in 2013, is estimated to grow at a CAGR of 4% through 2018. China continues to be the largest and one of the fastest growing markets; however, India is expected to grow more rapidly.
Fluorocarbon demand will continue to increase at a healthy pace, reflecting strong demand for air conditioning and refrigeration equipment, especially in the developing world. Demand will also be augmented by newer feed-stock applications for fluorocarbons which will partially off-set the demand phase-out, led by the Montreal Protocol, for emissive usages.
UNSECURED LOAN:
|
Particulars |
31.03.2015 Rs.
In Million |
31.03.2014 Rs.
In Million |
|
Short Term Borrowings |
|
|
|
Commercial paper |
197.057 |
190.853 |
|
|
|
|
|
Total |
197.057 |
190.853 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2015
Rs. In Million
|
Particulars |
3 months ended |
|
|
(Unaudited) |
|
Net Sales/ Income from Operations |
1498.412 |
|
Other Operating Income |
5.270 |
|
Total income
from operation |
1503.682 |
|
Expenditure |
|
|
a) Cost of Materials Consumed |
722.071 |
|
b) Purchase of Stock in trade |
9.389 |
|
c) Change in inventories of finished goods, work in progress & stock in trade |
(20.555) |
|
d) Employee benefits expense |
160.658 |
|
e) Depreciation and amortization expense |
45.115 |
|
f) Other expenses |
376.275 |
|
Total |
1292.953 |
|
Profit from operations
before Other Income, Interest and Exceptional Items (1-2) |
210.729 |
|
Other Income |
40.708 |
|
Profit before Interest and Exceptional Items (3+4) |
251.437 |
|
Interest |
4.978 |
|
Profit after Interest but before Exceptional Items (5-6) |
246.459 |
|
Exceptional Items |
0.000 |
|
Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8) |
246.459 |
|
Tax expense |
65.014 |
|
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10) |
181.445 |
|
Paid-up equity share capital (Face value of Rs.10/- each) |
97.699 |
|
Reserves excluding Revaluation Reserves as per balance sheet of
previous accounting year |
|
|
Earnings per
share |
|
|
Before Extraordinary items (not annualized) |
|
|
- Basic (Rs.) |
18.57 |
|
- Diluted (Rs.) |
18.47 |
|
|
|
|
|
|
|
Public Shareholding |
|
|
- No. of shares |
5980903 |
|
- Percentage of shareholding |
61.21% |
|
Promoters and promoter group shareholding |
|
|
Pledged/ Encumbered |
|
|
- No. of shares |
588728 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
15.53% |
|
- Percentage of shares (as a % of the total share capital of the company) |
6.03% |
|
Non-encumbered |
|
|
- No. of shares |
3201766 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
84.47% |
|
- Percentage of shares (as a % of the total share capital of the company) |
32.77% |
|
|
|
|
|
|
|
INVESTOR
COMPLAINTS |
|
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
-- |
|
Disposed during the quarter |
-- |
|
Remaining unresolved at the end of the quarter |
-- |
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10509649 |
24/06/2014 |
400,000,000.00 |
Axis Bank Limited |
Trishul 3rd Floor Opp Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad, Gujarat - 380006, India |
C11773389 |
|
2 |
10085926 |
09/05/2012 * |
750,000,000.00 |
HDFC Bank Limited |
HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India |
B39932413 |
|
3 |
10029585 |
14/06/2012 * |
750,000,000.00 |
HDFC Bank Limited |
HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India |
B45328804 |
|
4 |
80016822 |
13/02/2013 * |
500,000,000.00 |
Axis Bank Limited |
Universal Insurance Building, GRD. Floor., Sir P M Road, Fort, Mumbai, Maharashtra - 400001, India |
B69781938 |
|
5 |
90145649 |
08/07/2015 * |
350,000,000.00 |
State Bank of Hyderabad |
Overseas Branch, 1204, Ashok Mahal, Tulloch Road, Colaba, Mumbai, Maharashtra - 400039, India |
C60610508 |
*Date of modification Charges
FIXED ASSETS:
Tangible assets
· Freehold land
· Leasehold land
· Buildings
· Plant and machinery
· Furniture and fixtures
· Vehicles
· Office equipment
Intangible assets
· Computer software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
62 |
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.